November 13, 2008

Penguins arena $31m over budget

As predicted, the Pittsburgh Penguins' new arena set to open in 2010 is running over budget, with a projected price tag now of $321 million, up from $290 million. However, while originally the team and state were to split the first $20 million in extra costs, with the Pens covering any overruns above that, now the team and the public are going to be splitting the entire $31 million evenly; I haven't yet been able to find an explanation for why the state agreed to take on $5.5 million in costs it wasn't obligated to.

Reports the Pittsburgh Post-Gazette with a straight face: "Now that the final project cost has been set at $321 million, the Penguins will be responsible for any overruns above that amount." Fool me once...