State advises smaller convention center Albany asked to rethink project now estimated to cost $300 million
By TIM O'BRIEN, Staff writer First published: Saturday, September 1, 2007
ALBANY -- The state is asking the Albany Convention Center Authority to re-examine its plans with an eye to possibly downsizing. The request came after board Chairman George Leveille recently estimated the project to build two hotels and a convention complex could cost $300 million, $100 million more than originally forecast. "We've got to start thinking about how we construct this thing: Do we downsize it?" Leveille said. "We'll look at it and we'll give our opinion as to whether it's viable."
Jeffrey Gordon, a spokesman for the state Division of Budget, confirmed that message had been delivered during a recent meeting.
"We are asking them to review the project to see where they could achieve efficiencies or streamline the project to reduce costs," he said.
The plans call for a full-service hotel with 250 rooms and a 150-room hotel with more limited amenities. The convention center would include a 60,000 square foot exhibit hall, a 25,000 square foot room that could be used for multiple purposes, and a 22,350 square foot ballroom. A skyway would connect it to the county-owned Times Union Center for additional exhibit space.
The project is proposed to be built on Hudson Avenue between Liberty and South Pearl streets.
To be successful, Leveille said, it has to be built to attract the right mix of organizations, and reducing its size could make that unattractive.
"It is not as simple as just downsizing," he said.
The funds for the project would come from a $75 million state grant and a 3 percent hotel tax. The city also is being given $192 million in state aid that can be used to guarantee bonds. The increased cost estimate means the authority will have to seek additional funds, Leveille has said.
The authority is getting close to naming the three key firms that would determine a more exact cost estimate: a construction manager, a design team and operators for the hotel and convention center.
The board has asked two companies to provide proposals to oversee construction: Turner Construction and a partnership between Gilbane Inc. of Providence, R.I., which has an Albany office, and the local firm BBL Construction Services.
Another two firms are finalists to lead the design team: HNTB Architecture of Kansas City, Mo., and a joint venture between Atlanta-based architects Thompson, Ventulett, Stainback and Associates and the Albany firm of EYP.
Both contracts are expected to be approved by the board next month.
Michele Vennard, a member of the authority board, will recuse herself from voting on the design team because two firms have said they may use Clough Harbour & Associates, which is led by her brother, attorney Robert Ryan told the board.
Three operators were asked to submit detailed proposals for operating the hotel and convention center. One firm has proposed to run just the center.
The three that propose to run all the properties are: Waterford Hotel Group of Waterford, Conn., which operates the convention center in Hartford; local firm BBL Development Group teamed with Ocean Hospitalities Inc. of Portsmouth, N.H.; and Starwood Hotels and Resorts Worldwide Inc. of White Plains.
SMG of Philadelphia, which runs the Times Union Center, has applied to run just the convention center.
A request for quotes should go out next week, said authority board member Brad Rosenstein. They are due back the same day the convention authority next meets, Sept. 29, so a selection probably won't be made until October.
"It's the most critical decision of all for the future of this project," Rosenstein said. Once the contractors are picked, Leveille said, they will begin to put together more precise numbers on costs.
"The last stage is really to develop our cost estimates," he said. With those in hand, he said, the authority will be in a better position to decide on what should be built and how to pay for it.
The funds for the project would come from a $75 million state grant and a 3 percent hotel tax. The city also is being given $192 million in state aid that can be used to guarantee bonds. The increased cost estimate means the authority will have to seek additional funds, Leveille has said
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My God....I'm speechless!! I think I'm sick to my stomach now.
When the INSANE are running the ASYLUM In individuals, insanity is rare; but in groups, parties, nations and epochs, it is the rule. -- Friedrich Nietzsche
“How fortunate for those in power that people never think.” Adolph Hitler
I do hope that they name this convention center after 'us'.....THE TAXPAYERS CONVENTION CENTER!!!
When the INSANE are running the ASYLUM In individuals, insanity is rare; but in groups, parties, nations and epochs, it is the rule. -- Friedrich Nietzsche
“How fortunate for those in power that people never think.” Adolph Hitler
How about 'The Bumblethru Arena'? That name would be fitting for most of our politicians, don't ya think?
When the INSANE are running the ASYLUM In individuals, insanity is rare; but in groups, parties, nations and epochs, it is the rule. -- Friedrich Nietzsche
“How fortunate for those in power that people never think.” Adolph Hitler
Convention center by the numbers: $397M, 5 years, 1 man By FRED LeBRUN First published: Sunday, January 27, 2008
This should come as a shock to nobody, but the long-awaited Albany Convention Center complex will now cost us $397 million, a third more than anticipated even a few months ago.
That's the price tag if we put the first shovel in the ground in 2009, as currently planned. If we could start tomorrow, the cost would be $367 million. If there are delays beyond 2009, that number could skyrocket beyond anything doable. Last weekend, the Albany Convention Center Authority finally sent the hard number, $397 million, to Governor Spitzer's office. Local pols became more than a little nervous when the governor failed to mention the convention center during his State of the State or State of Upstate speeches, or in connection with the $1 billion upstate revitalization package. But the reason for that, it seems, was not the lack of support by the governor so much as the absence of firm cost numbers from the authority. Numbers needed to render a judgment on whether to go forward. Spitzer's approval of the project remains critical, especially in light of the hefty price increase, which in turn dictates a need for gobs more state aid, direct and indirect. Already the state is tossing in $75 million in hard cash, and more through aid to the city that ultimately could go to the project. No additional state aid, no convention center. It's as simple as that. Only six months ago, authority Chairman George Leveille said definitively, "in my opinion, this is a $300 million project." Five years ago, at its inception, it was announced as a $200 million development. As tempting as it is to jump on George Leveille for these earlier numbers, it wouldn't be fair. Foremost, those spiraling numbers reflect the simple fact the convention center has taken far too long to get off the ground. Through no one's fault, really, certainly not Leveille's. During that lag time, development costs have gone crazy. Just look at the $30 million difference between starting today and a year from now. Or look at the more than doubling of costs announced last year for a major expansion of the Javits Convention Center in Manhattan. In the Albany Convention Center's case, we also have the political fudge factor to blame. It's become quite clear over time that any numbers thrown into the air when this convention center idea was first proposed back in 2001-2002, were sheer fantasy, or at least not based on actual land acquisition and construction costs. As it's gone forward, this project has been plagued by those unrealistic early expectations. Random is no longer the case when it comes to construction costs, fortunately. Those familiar with the process of gathering the figures assure me the $397 million is a conservative compilation of very specific estimates from various professional consultants brought in by the authority. Leveille has acknowledged the number as accurate, and confirms that this is the number the governor is contemplating.On the one hand, there's concern that Spitzer will be put off by the higher figure and the need for more aid. The state's response to expanding the Javits center after the numbers came in way over what was expected is sobering. Instead of a major expansion, as Spitzer boldly promised, the Javits Center will undergo a modest but affordable rehab. In fact, this year's state revenues projections include hundreds of millions from selling off property that was part of the Javits expansion plans. Privately, Governor Spitzer has been steadfast in his support of the Albany Convention Center, even though there has been little public mention of it. Word from inside is the governor remains supportive, despite the cost increases. For its part, the Albany Convention Center Authority pared the numbers down. The original estimates from the consultants came in at around $500 million. A staggering figure. Graybeards will remember that was the figure thrown out as the original price tag for the entire South Mall project, the great upheaval that became Empire State Plaza and cost twice that much. The Albany Convention Center's proposed underground parking was eliminated from the plans, and a parking garage scheduled to be taken down, won't. Some other small modifications were made to get the estimates below $400 million. The lower projected costs, though, do not reflect any changes in the major elements of the convention center complex, including square footage. So now the fate of the Albany Convention Center -- which remains hugely important for the growth of Albany -- is in the hands of the one man with the power to make it happen. We should know within the next couple of weeks whether it's thumbs up or down. Fred LeBrun can be reached at 454-5453 or by e-mail at flebrun@timesunion.com.
This should come as a shock to nobody, but the long-awaited Albany Convention Center complex will now cost us $397 million, a third more than anticipated even a few months ago.
just like my grocery bill......
BBRRRRILLLLIANT!!!
...you are a product of your environment, your environment is a product of your priorities, your priorities are a product of you......
The replacement of morality and conscience with law produces a deadly paradox.
STOP BEING GOOD DEMOCRATS---STOP BEING GOOD REPUBLICANS--START BEING GOOD AMERICANS
Convention center project to proceed Friday, February 1, 2008 By Jill Bryce (Contact) Gazette Reporter
ALBANY — The Albany Convention Center Authority will move forward with plans to build a convention center, 400-room hotel and a parking garage despite an increase in the price tag to an estimated $397.5 million. The board met this morning to discuss the project, and members were given a specific cost breakdown. The project includes $192.5 million for the convention center and a pedestrian walkway to the Times Union Center and $152.2 million for a hotel. Other costs include $32.3 million for a parking garage behind the convention center, $6.9 million to purchase the land and $12.6 million for other improvements. Convention center plan To view a Powerpoint presentation on the proposed convention center in downtown Albany from Friday's Albany Convention Center Authority meeting, click here. Mayor Jerry Jennings, a strong proponent of the convention center, raised concerns about the increased cost this week and said it may be time to reexamine the project in light of other priorities. In December, the Albany Convention Center Authority chose firms to operate its convention center and hotel. It entered into negotiations with Starwood Hotels to operate a 400-room Sheraton Hotel and with SMG, which operates the Times Union Center, to run the convention center. The proposed convention center and 400-room hotel would be built in the area bounded by South Pearl Street, Broadway and Hudson and Madison avenues. The authority is expected to seek additional state funding to cover increased costs and will also look for other sources of funding. A spokeswoman for Gov. Eliot Spitzer said the revised costs will be reviewed.
I am not surprised that the Times Union has endorsed the convention center for Albany (editorial, Feb. 3).
You are on the wrong side of every major issue to impact the Capital Region, the state and the country. There is no viable reason to build a convention center in Albany; we can not even draw enough important events to keep the Times Union Center operating most nights of the year. The price tag for the convention center has already doubled before the first shovel has hit the ground. The planners have already told us the cost will be higher than the $400 million it has already ballooned to. In order for a convention center to work there has to be a reason for people to come to the area, such as nightlife, attractions, restaurants, culture. The only thing Albany has to offer after 6 p.m. is a few bars. How about some money being spent on infrastructure, getting some good businesses interested in setting up shop, cleaning up good portions of the city, making living there attractive to young professionals and working families? After that happens then we can look at a convention center. Right now all this will be is an empty waste of taxpayer dollars. BILL WALTERS Cohoes
ALBANY Plans for $397M convention center stay on track State budget includes no additional funding for downtown project BY JILL BRYCE Gazette reporter Reach Gazette reporter Jill Bryce at 432-4391 or jbryce@dailygazette.net.
Plans for the proposed Albany Convention Center are proceeding even though the state budget passed last week included no additional funding for the project. At this point, the Albany Convention Center Authority has a $75 million grant from Empire State Development Corp. which was reappropriated last week in the state budget. Approximately $2 million of this has been released for the planning process. “Long term funding and the $397 million price tag is something we will work out with new governor, “said Assemblyman John McEneny, D-Albany, a member of the Albany Convention Center Authority. McEneny said on Friday he didn’t expect approval of additional state funds for the Convention Center so soon after the transition in the governor’s office, but he optimistic about the project’s future. “We can continue doing what we are doing: Archeology, the purchase of land, possible relocation of underground sewers and utilities and finally, design. With the $73 million left in that allocation we can do all these things.” Yet, an additional $192 million is needed over the duration of the project. The authority is seeking additional state funding to cover increased costs, which have to be authorized by the Legislature and governor. The authority, which includes nine members, will look for Gov. David Paterson’s commitment, said McEneny who said former Gov. Eliot Spitzer told the authority “ just keep doing what you’re doing” even though Spitzer hadn’t committed to more funding. At some point, the Convention Center Authority will need a new commitment and better direction from the new administration, said McEneny. “Everything is still functioning just as it has, nothing is curtailed and no money has been taken away,” he said. Before the legislative session ends, it it’s important to get a clear and long-term picture of a commitment. “We are hopeful, locally, that the importance of the convention center will be considered,” said McEneny. Duncan Stewart, CEO and executive director of the Albany Convention Center Authority, said given the progress with the state budget and transition in the governor’s office: “We are appropriately waiting place in line for their review.” In the meantime, the authority is completing the state environmental quality review process. Another study of the authority’s plan of fi - nance, revenue plan, cost of construction must also be complete and is required by the state . “We have not had any interaction directly with the governor,” said Stewart. “We are communicating with his staff. We are optimistic because the Convention Center represents important economic benefi ts, including community benefits for the Capital Region and beyond.” The $397.5 million convention center, 400-room hotel and a parking garage would be built in the area bounded by South Pearl Street, Broadway, Hudson Avenue and Madison Avenue. If everything came to a grinding halt, nothing would be lost in term of public expenditures because the environmental review and any archeological studies are needed to build anything on the site, said McEneny. All of this will create a valuable site that is “shovel ready” in downtown Albany, said Stewart. If the project is not authorized by June, costs would increase by $40,000 a day. The state Legislature and governor’s office decide to authorize the project, not the authority itself. The authority is in the process of getting access to land to do the excavation, which will include digging 2,900 linear foot trenches in certain areas.
If the project is not authorized by June, costs would increase by $40,000 a day.
Sounds like the Alaskan pipeline at work......the costs will increase anyhow---who writes this crap......a project this size NEVER comes in under budget or on budget......and the public NEVER sees the books.......metroplex anyone????
...you are a product of your environment, your environment is a product of your priorities, your priorities are a product of you......
The replacement of morality and conscience with law produces a deadly paradox.
STOP BEING GOOD DEMOCRATS---STOP BEING GOOD REPUBLICANS--START BEING GOOD AMERICANS
ALBANY Center plans move forward despite lack of funding BY JILL BRYCE Gazette Reporter Reach Gazette reporter Jill Bryce at 432-4391 or jbryce@dailygazette.net.
The clock is ticking on the Albany Convention Center. If the facility is not authorized by June, the cost could begin escalating by as much as $40,000 per day beginning July 1 because of skyrocketing construction costs, said Duncan Stewart, chief executive officer of the Albany Convention Center Authority The authority held its monthly board meeting Friday and continued to move forward with the $397.5 million convention center, despite lack of state funding. Stewart remains hopeful. “We hope to be in a position to review some sort of approval from the governor soon,” he said. The state Empire State Development Corp. has also hired Pricewaterhouse Coopers to review the finances of the project. Stewart said he’s confident this independent review will reach the same conclusions as the authority has on need and financial estimates. The authority has also considered prebuying some of the building materials such as steel, but has not because the market is so volatile. Assemblyman John McEneny, DAlbany, a member of the Albany Convention Center Authority, said he’s concerned that unnecessary delays will increase construction costs. Nonetheless, he said, “Gov. David Paterson has only been governor for a little over a month. Given the downturn in the economy, which all are aware of, it’s prudent for the governor to take a look at all the authorities. It’s not just us.” At this point, the Albany Convention Center Authority has a $75 million grant from Empire State Development Corp., which was reappropriated in the current state budget. About $2 million of this has been released for the planning process. An additional $192 million is needed over the duration of the project. The authority is seeking additional state funding to cover increased costs, which have to be authorized by the Legislature and governor. The board Friday also authorized an additional $39,000 for the engineering firm of Clough Harbour Associates for additional work on the environmental impact statement. The state environmental quality review is expected to be complete by June and another study of the authority’s plan of finance, revenue plan, cost of construction must also be complete and submitted to the state. The $397.5 million convention center, 400-room hotel and a parking garage would be built in the area bounded by South Pearl Street, Broadway, Hudson Avenue and Madison Avenue.
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