Cost estimates for Little Caesars Arena are rising to account for a variety of adjustments in the construction process.
The future home of the Detroit Red Wings—and possibly the Detroit Pistons as well—has seen a variety of additions during the construction process, with the latest changes adding $105 million to the construction tab.
With these additional costs—which include materials, design changes, and subcontracts—the price tag of Little Caesars Arena is now approaching $733 million, a figure that does not account for long-term costs relating to interests. Olympia Entertainment will be covering the additional expenses. More from MLive.com:
“The increases represent enhancements or changes that our private partner, Olympia Development of Michigan, will be paying for — as they are required to do under our contract,” said Moddie Turay, executive vice president for real estate for the Detroit Economic Growth Corporation — which administers the Downtown Development Authority, in a written statement.
According to Turay funding invested by Olympia creates new potential opportunities for Detroit-based subcontractors and Detroit residents.
Olympia Development will be constructing the arena and will also manage it after its opening in September.
What officials connected to the project was not confirmed was whether the latest development relates to the Pistons. Owner Tom Gores recently stated that the Pistons were closing in on a move to the arena, though the deal has not been finalized at this point. If that move is completed, both the Pistons and the Red Wings will move into Little Caesars Arena in the fall of 2017.
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