New Arena Worries

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New Arena Worries

Postby Bathgate on Mon Jun 23, 2008 12:36 pm

Construction costs have apparently gone up dramatically in the last year due to rising oil prices and related factors. I seem to recall that public financing for the new arena will end when the price tag hits $310 million and that the Pens are responsible for costs above that figure. Will the Pens be willing or able to finance to $350 or $400 million? I doubt it. I am waiting for the other shoe to drop any day on this issue with a news item that the deal is in jeopardy and that the Pens are requesting a commitment of additional public funds. Can anybody with some inside knowledge of our arena deal allay my fears that the deal could collapse?
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Postby bill from turtle creek on Mon Jun 23, 2008 12:44 pm

Seems plausible, but given how everything is more expensive now due to the cost of oil, I could see it being an issue.

Problem is, the papers are signed. The Pens are on the hook.
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Postby AlexPKeaton on Mon Jun 23, 2008 12:47 pm

With 3 top-6 players needing to be signed, this board cannot handle any Arena drama at this time. Thank you.
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Postby newarenanow on Mon Jun 23, 2008 12:49 pm

Papers are signed, and the Pens agreed to pay any cost overruns over X amount of dollars.

Also, I'm sure when they signed the contracts, some prices were locked in at the current rate. That is how many contracts of this nature work.

I'm not worried at all.
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Postby Guinness on Mon Jun 23, 2008 12:49 pm

Oh good. Something else to worry about that hasn't even become an issue yet.
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Postby Brian on Mon Jun 23, 2008 12:50 pm

I cannot feel sorry for the Penguins if the price tag has gone up.

They held their fans hostage during arena negotiations and immediately raised ticket prices following the agreement. I am paying thirty percent more for my season tickets than I did only two years ago.

They are making tons of money and will continue making money when the new arena is built.

We are paying more for our necessities. The Penguins should pay more also.
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Postby newarenanow on Mon Jun 23, 2008 12:52 pm

I heard the Russians want the new arena and are willing to pay $400M tax free for it.
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Postby Troy Loney on Mon Jun 23, 2008 12:52 pm

I don't know how any of you sleep at night if you get worried about things like this.
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Postby tperko on Mon Jun 23, 2008 12:55 pm

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Postby Paekman on Mon Jun 23, 2008 12:58 pm

newarenanow wrote:Papers are signed, and the Pens agreed to pay any cost overruns over X amount of dollars.

Also, I'm sure when they signed the contracts, some prices were locked in at the current rate. That is how many contracts of this nature work.

I'm not worried at all.


Very much correct sir. Time and materials (concrete, steel, etc.) are usually a little bit fluid (price wise) in such an agreement, but fuel surcharges and equipment fees are usually set. I'm not an expert, but this is typically how a lot of contracts I've dealt with in this industry have worked.

However, given the astonishing lack of foresight with our state and local government involving Mr. Barden, anything is possible.
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Postby newarenanow on Mon Jun 23, 2008 12:58 pm



Hey, I don't think the Pens have to worry. If the prices go up, so will our tickets! :D
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Postby pens#1 on Mon Jun 23, 2008 12:59 pm

Brian wrote:I cannot feel sorry for the Penguins if the price tag has gone up.

They held their fans hostage during arena negotiations and immediately raised ticket prices following the agreement. I am paying thirty percent more for my season tickets than I did only two years ago.

They are making tons of money and will continue making money when the new arena is built.

We are paying more for our necessities. The Penguins should pay more also.


holding you hostage??? i dont understand - are the Penguins forcing you to buy tickets at the new price?
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Postby newarenanow on Mon Jun 23, 2008 1:01 pm

pens#1 wrote:
Brian wrote:I cannot feel sorry for the Penguins if the price tag has gone up.

They held their fans hostage during arena negotiations and immediately raised ticket prices following the agreement. I am paying thirty percent more for my season tickets than I did only two years ago.

They are making tons of money and will continue making money when the new arena is built.

We are paying more for our necessities. The Penguins should pay more also.


holding you hostage??? i dont understand - are the Penguins forcing you to buy tickets at the new price?


Agreed. No one was held hostage. And yes, are necessities are going up, so if that cuts into the ticket budget, just don't buy them.
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Postby tperko on Mon Jun 23, 2008 1:02 pm

even if inflation weren't a factor - what project comes in under budget :roll:
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Postby TheHammer24 on Mon Jun 23, 2008 1:02 pm

newarenanow wrote:I heard the Russians want the new arena and are willing to pay $400M tax free for it.


I thought the ruutu avery post was the worst one I read today. This one, however, is by far the best I've read in a while.
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Postby Scott on Mon Jun 23, 2008 1:10 pm

newarenanow wrote:Papers are signed, and the Pens agreed to pay any cost overruns over X amount of dollars.

Also, I'm sure when they signed the contracts, some prices were locked in at the current rate. That is how many contracts of this nature work.

I'm not worried at all.


That is correct. The people doing the work are the ones eating the extra cost, not the Pens.
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Postby newarenanow on Mon Jun 23, 2008 1:11 pm

TheHammer24 wrote:
newarenanow wrote:I heard the Russians want the new arena and are willing to pay $400M tax free for it.


I thought the ruutu avery post was the worst one I read today. This one, however, is by far the best I've read in a while.


Glad to brighten up your day!
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Postby Kovy27 on Mon Jun 23, 2008 1:15 pm

OMG! The Arena Now?! TRADE MALKIN!
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Postby IrishEyes on Mon Jun 23, 2008 1:16 pm

Paekman wrote:
newarenanow wrote:Papers are signed, and the Pens agreed to pay any cost overruns over X amount of dollars.

Also, I'm sure when they signed the contracts, some prices were locked in at the current rate. That is how many contracts of this nature work.

I'm not worried at all.


Very much correct sir. Time and materials (concrete, steel, etc.) are usually a little bit fluid (price wise) in such an agreement, but fuel surcharges and equipment fees are usually set. I'm not an expert, but this is typically how a lot of contracts I've dealt with in this industry have worked.

However, given the astonishing lack of foresight with our state and local government involving Mr. Barden, anything is possible.


Chances are they'll bid for the materials, as well. They have a few different concrete companies, for instance, that bid on the project, and they'll take the one that gives them the best deal. Not saying it would necessarily bring costs down any, but it might help in the long run.
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Postby Pipes Hochuli on Mon Jun 23, 2008 1:16 pm

Kovy27 wrote:OMG! The Arena Now?! TRADE MALKIN!


They should consider it, we need to be under the Arena cap as our number one priority.
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Postby Brian on Mon Jun 23, 2008 1:25 pm

I never said the Penguins forced us to buy tickets, but I lost sleep over them possibly leaving before the new Arena deal was announced.

Many people put their lives on hold, well their sports lives anyways.
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Postby King Of The Crease on Mon Jun 23, 2008 1:30 pm

Brian wrote:I never said the Penguins forced us to buy tickets, but I lost sleep over them possibly leaving before the new Arena deal was announced.

Many people put their lives on hold, well their sports lives anyways.


I really don't think Burkle or Lemieux cared if you lost sleep on some nights. Would you have rather gone through that, or have the team say everything is great and fine and have the team in Kansas City right now?
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Postby duke66 on Mon Jun 23, 2008 1:30 pm

Troy Loney wrote:I don't know how any of you sleep at night if you get worried about things like this.


...tell me about it, the ozone layer, global warming, weapons of mass destruction, extinction of animal-species, another beverly hills cop movie...i mean the list of worries is endless...and now this :wink: ...
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Postby Eismann on Mon Jun 23, 2008 1:36 pm

duke66 wrote:
Troy Loney wrote:I don't know how any of you sleep at night if you get worried about things like this.


...tell me about it, the ozone layer, global warming, weapons of mass destruction, extinction of animal-species, another beverly hills cop movie...i mean the list of worries is endless...and now this :wink: ...


Don't forget asteroids....Oh, the asteroids....
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Postby Kovy27 on Mon Jun 23, 2008 1:57 pm

Eismann wrote:
duke66 wrote:
Troy Loney wrote:I don't know how any of you sleep at night if you get worried about things like this.


...tell me about it, the ozone layer, global warming, weapons of mass destruction, extinction of animal-species, another beverly hills cop movie...i mean the list of worries is endless...and now this :wink: ...


Don't forget asteroids....Oh, the asteroids....


zomg! Armageddon. SAVE US BRUCE WILLIS!
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