|
Costs reined at Broncos' new stable
By David Kesmodel, News Staff Writer With two last touches remaining, the Denver Broncos' new, $400.8 million digs are on pace to be completed slightly under budget, officials say. The Metropolitan Stadium District still must demolish neighboring Mile High Stadium and build a parking lot in its place. That job should be finished by next football season, Executive Director Tim Romani said. "We still have a minimal amount of work to do, but the good news is that the stadium is open," and about $4.5 million under budget, Romani said. Taxpayers' final bill for Invesco Field at Mile High is expected to be about $300.6 million, but they will get some help from naming-rights holder Invesco Funds Group Inc. The Broncos' tab will be about $100.2 million. Metro-area voters agreed in November 1998 to shoulder 75 percent of the cost of erecting the 76,125-seat stadium, with the two-time Super Bowl champions paying the rest. The stadium district has issued about $245 million in bonds to fund the public's share of the project. Principal and interest on the bonds is being repaid through a penny-per-$10 sales tax originally approved for Coors Field and then extended by the electorate. Half of the $120 million that Invesco is paying for the naming rights will be used to reduce the taxpayers' bill. The Broncos expect to pull in $40 million more a year in revenues at their new stadium, said Joe Ellis, vice president of business operations. The team gets to collect nearly all the revenues at its new home. Stadium suites, club seats and sponsorships will account for the bulk of the Broncos' increase in revenues. The team still "will be challenged to generate more revenue," Ellis said, "and one thing we're going to do is capitalize on ancillary events, like soccer, college football and concerts." The Broncos spent about $50 million for stadium-related expenses beyond the construction cost, chief financial officer Allen Fears said. That includes $15 million for interest on a $150 million loan that the club got to help finance the stadium. The Broncos are paying the expense of running and maintaining the new stadium, estimated at $9 million to $12 million a year. The team has 600 people working at the stadium -- twice the number it had at Mile High, which was half the size.
|