A new home arena for the Detroit Red Wings NHL ice hockey team has cost $104m (£84m/€95m) more than originally planned, local officials have said.
The Downtown Development Authority (DDA) has confirmed that the outlay for the development of Little Caesars Arena now stands at $732.6m.
The DDA cited the cost of materials, permits, design refinements and subcontractor agreements as reasons for the rise.
Officials have insisted that the cost increase does not represent a significant cost overrun, nor will it result in taxpayers having to pay for additional expenses.
In a statement reported by the Detroit News newspaper, Moddie Turray, executive vice-president for real estate for the Detroit Economic Growth Corporation, which administers the DDA, said: “The increases represent enhancements or changes that our private partner, Olympia Development of Michigan, will be paying for – as they are required to do under our contract.”
The Detroit News’ report added that the cost hike includes payments for some city-owned land for a car park and a park, as well as “construction change directives” and “design refinements”.
Construction work at Little Caesars Arena began in 2015, with the development scheduled to be ready in time for the 2017-18 NHL season. The 20,000-capacity arena will also host entertainment shows, concerts and community events.
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