January 06, 2006

Throw another $500M on the fire

Anyone remember that $1.2 billion expansion of the Javits Convention Center that was supposed to go along with the now-defunct Manhattan stadium for the New York Jets. Turns out the cost will now be $1.7 billion, and the state is considering selling land adjacent to the rejected stadium site to help pay for the difference. The reason for the half-billion-dollar cost overrun, reports Newsday: "[State development chief Charles] Gargano and [Javits development czar Michael] Petralia said the spike in projected construction costs for the center stems in part from the rebuilding along the Gulf Coast following Hurricane Katrina, which has cut into the availability of labor and materials." That sets the Katrina Effect factor at a new high of 30%; adjust your stadium cost projections accordingly.