New from the Post: "
Developers have offered to pay the District $70 million for the rights to build on land adjacent to a new baseball stadium, money that city leaders said will help cover potential cost overruns on the project. ... [D]evelopers have pledged to pay for the rights to develop on land within the 20 acres needed for the stadium project that is not taken up by the ballpark structure. Of the $70 million, $55 million will go to the waterfront corporation and $15 million will go to MLB. [...]
With the money, the corporation will pay for upgrades to nearby roads and an underground parking garage. The corporation also pledged to pay for cost overruns related to the city's acquisition of 14 acres for the ballpark and potential environmental remediation, as well as to help with other potential overruns related to construction." Also, the council is supposed to get today a construction contract "between the D.C. Sports and Entertainment Commission and the three construction companies set to build the stadium, was to include a special "guaranteed maximum price" contract that would cap ballpark construction costs at $320 million -- including a $20 million payment from MLB." This would appear to be a big step toward alleviating some of the council's disagreements with the lease, but we will see how it shakes out.
UPDATE, 4:22 pm: The Post has updated
its story to say that the
construction contract has been sent to the council as well: "The contract transfers the control of the project from the city to the construction companies, but also transfers the risk. The companies agreed to a guaranteed price of $320 million for the materials and labor. The price includes a $20 million payment from Major League Baseball, which the league promised in December. If the companies fail to complete the stadium by March 1, 2008, their fees will be reduced by $100,000 per day, up to a maximum penalty of $5 million, according to the documents submitted to the council. The documents also include a cap of $68 million for so-call "soft construction costs," including fees to architects and consultants."