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Cost blow-out causes standstill at stadium
BY IAN KIRKWOOD
27/08/2009 4:00:00 AM
WORK has stopped on the $60 million-plus redevelopment of EnergyAustralia Stadium's western grandstand because of a cost blow-out.
Newcastle Knights chief executive Steve Burraston said yesterday he was worried the new grandstand would not be finished in time for the start of the 2011 season.
Hunter Venues the authority that manages the stadium on the State Government's behalf said work had ceased while the organisation looked at reducing costs on the project.
The authority's chief executive Mark Zundans said the Federal Government's stimulus package had increased demand for builders which had, in turn, put up construction costs.
Despite the delay there was still "a fair bit of buffer" to get the job done on time.
Mr Zundans said work stopped about three weeks ago and it would be another three weeks at least before it resumed.
He declined to put a dollar figure on the cost concerns.
The Herald understands it could run into the millions of dollars.
Mr Zundans dismissed concerns that a long-running financial dispute between the Knights and the State Government was any sort of factor in the stadium contract delays.
Redeveloping the western or Turton Road side of the ground was broken into three stages.
Mr Zundans said stages one and two, comprising dressing rooms and a concourse, had been done on budget.
Stage three, the new western grandstand, was valued at $37.5 million according to documents lodged with Newcastle City Council.
Mr Zundans said quotes from prospective builders were higher than what Hunter Venues could afford.
He said Hunter Venues had been allowed to put the interest earned on its $60 million funding towards the redevelopment, giving the organisation up to $68 million.
"We don't want to talk about money at the moment because we are in negotiations but if you look at it this way, the Hunter is getting a 33,000-person stadium for $100 million [including earlier work on the eastern side]," Mr Zundans said.
"In Melbourne, it's $270 million for 31,000 and $168 million on the Gold Coast for 30,000 people."
The Knights and Hunter Venues have been at loggerheads for months over rent and other issues at the ground.
Hopes had been held that retired High Court judge Michael McHugh would produce a "final and binding" arbitration on the dispute this month but both sides confirmed yesterday that the hearing had been put off until March next year.
http://www.theherald.com.au/news/lo...out-causes-standstill-at-stadium/1607161.aspx
BY IAN KIRKWOOD
27/08/2009 4:00:00 AM
WORK has stopped on the $60 million-plus redevelopment of EnergyAustralia Stadium's western grandstand because of a cost blow-out.
Newcastle Knights chief executive Steve Burraston said yesterday he was worried the new grandstand would not be finished in time for the start of the 2011 season.
Hunter Venues the authority that manages the stadium on the State Government's behalf said work had ceased while the organisation looked at reducing costs on the project.
The authority's chief executive Mark Zundans said the Federal Government's stimulus package had increased demand for builders which had, in turn, put up construction costs.
Despite the delay there was still "a fair bit of buffer" to get the job done on time.
Mr Zundans said work stopped about three weeks ago and it would be another three weeks at least before it resumed.
He declined to put a dollar figure on the cost concerns.
The Herald understands it could run into the millions of dollars.
Mr Zundans dismissed concerns that a long-running financial dispute between the Knights and the State Government was any sort of factor in the stadium contract delays.
Redeveloping the western or Turton Road side of the ground was broken into three stages.
Mr Zundans said stages one and two, comprising dressing rooms and a concourse, had been done on budget.
Stage three, the new western grandstand, was valued at $37.5 million according to documents lodged with Newcastle City Council.
Mr Zundans said quotes from prospective builders were higher than what Hunter Venues could afford.
He said Hunter Venues had been allowed to put the interest earned on its $60 million funding towards the redevelopment, giving the organisation up to $68 million.
"We don't want to talk about money at the moment because we are in negotiations but if you look at it this way, the Hunter is getting a 33,000-person stadium for $100 million [including earlier work on the eastern side]," Mr Zundans said.
"In Melbourne, it's $270 million for 31,000 and $168 million on the Gold Coast for 30,000 people."
The Knights and Hunter Venues have been at loggerheads for months over rent and other issues at the ground.
Hopes had been held that retired High Court judge Michael McHugh would produce a "final and binding" arbitration on the dispute this month but both sides confirmed yesterday that the hearing had been put off until March next year.
http://www.theherald.com.au/news/lo...out-causes-standstill-at-stadium/1607161.aspx
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