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Costs For New Giants And Jets Stadium Rise

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Posted 27 January 2007 - 01:19 PM

NFL.com wire reports

NEWARK, N.J. (Jan. 26, 2007) -- The price of the new football stadium for the New York Giants and New York Jets has risen by $600 million to $1.4 billion.

"Costs continue to go up," said Alice McGillion, a spokeswoman for New Meadowlands Stadium Corp., a company that represents the team owners.

The teams awarded a contract to Swedish construction company Skanska AB, which said it had received a $998 million order to design and build the open-air stadium at the Meadowlands sports complex in East Rutherford, N.J.

"It shows the continued momentum and we are on the timeline that we need to be for a 2010 opening," McGillion said.

The teams, which announced the joint venture in 2005, originally estimated costs at about $800 million.

The stadium will seat 82,000 spectators and include 217 luxury suite boxes, Skanska spokesman Peter Gimbe said. McGillion said the number of seats could change, depending on the final design.

Skanska said that the contract, with the Meadowlands NFL Football Stadium LLC, was its largest U.S. contract yet. The company will include it in its order bookings in the first quarter.

Skanska has constructed several major stadiums in the U.S., including Reliant Stadium in Houston and Gillette Stadium in Boston. It is working on the new Yankee Stadium in New York.

"Skanska has in recent years proven itself to be among the leading sports stadium builders in the world, and has shown a great affinity and understanding of the U.S. market," said Giants president John Mara.

McGillion said the teams expect to unveil exterior plans for the stadium in late February or early March, with a ground breaking in late spring or early summer.

In December, the teams got a big boost from NFL owners, who approved a $300 million loan to help fund the stadium.

"(Skanska is) up to the challenge and will help us reach our objective of delivering a truly extraordinary facility for our fans, one that will set new standards for the NFL and indeed for stadiums around the world," Jets owner Woody Johnson said.

The project is going through the approval process with the state of New Jersey.

The state Department of Environmental Protection and the Meadowlands Commission expect a final environmental impact study of the project in February. The approval of the stadium plan could come in March.

The teams will pay $5 million annually to lease land at the Meadowlands from the New Jersey Sports and Exposition Authority. Once the new stadium is built, the authority will no longer collect 10 percent of gross ticket sales from games.

The state isn't paying for the stadium's construction, but will continue to pay debt on the old stadium, about $120 million.
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