Savannah, Ga., city officials have capped construction costs on a new city arena at $147.6 million, clearing the way to move forward with issuing more construction contracts.
News outlets report the Savannah City Council approved the price cap on Aug. 13 by a 7-2 vote.
The cap doesn't include a projected $17.4 million in other costs, such as furnishing, inspecting and insuring the arena. The total price is supposed to be $165 million. But the cap means contractors will know they have to cover cost overruns on construction.
Managers say the structure will start coming out of the ground shortly, although some preliminary work began last fall.
Since then, the general contractor, AECOM Hunt, a nationally known company noted for building arenas and other large infrastructure, cleared the land, brought water and sewage utilities on site and began pile-driving operations.
The 10,000-seat sports and entertainment venue is slated to open in early 2022.
The arena is being built on Savannah's west side at the corner of West Gwinnett and Stiles streets, an area known as the Canal District.
Its construction is funded using money from a voter-approved sales tax.
The council voted to approve setting the price, but also asked Savannah City Manager Pat Monahan and staff to find a way to include more local workers on the project.
Alderwoman Linda Wilder-Bryan expressed concern that projections that 26 percent of the work would go to disadvantaged business enterprises (DBIs) would not actually result in qualified construction workers who are city residents being hired to build the arena.
Alderwoman Bernetta Lanier echoed Wilder-Bryan's concerns by encouraging city staff to create plans that would ensure neighboring residents would be hired to build the arena and would not be displaced from surrounding homes.
"It's been generational economic injustice in that area," Lanier said. "We're looking for parity to replace the disparity."
Manny Dominguez, director of Savannah's Office of Business Opportunity, said the city's program encourages hiring businesses and workers based in Savannah.
"We have retooled our entire DBE program, with direction of the mayor and council," Dominguez said. "We know that those businesses are more likely to hire locally."