The cost of building Golden 1 Center has jumped an additional $16 million, bringing the current price tag to $534.6 million for the Sacramento Kings’ new downtown arena.
The latest increase was revealed this month in a construction consultant’s report to Sacramento city officials. At $534.6 million, the price represents a 12 percent increase from the $477 million budget that was in place when the Kings broke ground on the arena in October 2014.
Kings executives have said the higher expenses do not represent cost overruns. Instead, they reflect deliberate decisions they’ve made to add more features, such as a change in the seating configuration that will move hundreds of seats to the lower bowl and closer to the basketball court.
With the city’s subsidy capped at $255 million, the Kings owners have been shouldering most of the cost increases themselves. However, the latest increase will be picked up by corporate partners expected to play roles in operating the building. The Kings would not identify those partners.
“The number reflects previously planned enhancements to the project and cost exposures ultimately borne by various partners,” Kings President Chris Granger said in a prepared statement.
When initially approved by the City Council in 2013, the project was pegged at $447 million, or about 20 percent lower than the current price. The price jumped $30 million alone when the Kings decided to build a new practice facility immediately adjacent to Golden 1 instead of sticking with the old practice facility next to soon-to-be-vacated Sleep Train Arena.
Golden 1 Center is scheduled to open with a pair of concerts Oct. 4 and 5 by Paul McCartney.