Minnesota Sports Facilities Authority, Minnesota Vikings and Mortenson Construction reach agreement
Minnesota Sports Facilities Authority
900 South 5th Street
Minneapolis, MN 55415
Office: 612-335-3308
Cell: 612-816-1710
Email: jenn.hathaway@msfa.com
MINNESOTA SPORTS FACILITIES AUTHORITY, MINNESOTA VIKINGS AND MORTENSON CONSTRUCTION REACH AGREEMENT ON CONSTRUCTION MANAGEMENT PLAN
Plan includes Guaranteed Maximum Price of $763 million that includes a letter of credit from the Vikings
(Minneapolis, MN) The Minnesota Sports Facilities Authority (MSFA), in collaboration with the Minnesota Vikings, today announced it has reached agreement with Mortenson Construction on the Construction Management Plan for the new Minnesota Multi-Purpose Stadium. The plan includes the approval of a Guaranteed Maximum Price (GMP) for the project.
The approval of the Construction Management Plan and GMP finalizes the MSFAs contract with Mortenson as the construction manager and gives Mortenson the authority to move ahead with construction.
The Construction Management Plan and GMP agreement includes the following:
Schedule, price and other project details
Construction cost of the new stadium is $763 million and the overall project cost is $975 million
Partial ETFE roof and operable doors
Substantial completion date of July, 2016
Many factors went into the determination of the final GMP including opportunities to realize additional cost savings as well as a need to manage increased construction prices reflected in higher than anticipated bids. While savings were identified in a number of areas, the Authority and the team were also able to redirect project budget for soft costs to construction costs. The Vikings provided additional financing in the form of a letter of credit worth $26.4 million, which included the teams previous contingency of $13.1 million, as well as an additional $13.3 million.
Reaching this major milestone with Mortenson today is a significant move forward; signing this GMP means we can order steel on Monday and construction begins, said MSFA Chair Michele Kelm-Helgen. The Vikings have provided the construction project with a $26.4 million letter of credit that allows the building to keep major design features intact so Minnesota will have one of the most iconic stadiums in the nation. If there are contingency savings that are realized in the construction process, some of this money may not be needed, but we are very appreciative of the teams significant contribution to the stadium.
From day one our goal has been to build a stadium that benefits the entire state of Minnesota and provides the best game day experience possible for our fans, said Vikings Owner/President Mark Wilf. This additional commitment is to ensure several of the features that are so important to all users of the stadium remain in this project.
The signing of the Construction Management Plan officially starts the construction phase. A number of subcontracts will be executed within the next week and many of these contracts are going to Minnesota-based companies:
Mortenson Construction of Golden Valley will serve as the projects construction manager, working in association with Thor Construction of Minneapolis, Minnesota's largest African-American owned construction company.
Ames Construction of Burnsville will excavate the parking lot and will partner with Frattalone Companies of Little Canada for demolition services.
Veit Companies of Rogers, Minnesota will construct the drilled pier foundations.
LeJeune Steel Company of Minneapolis will provide steel fabrication for the new stadium, and Dannys Construction of Shakopee, a certified women-owned business, will handle steel installation for the new stadium.
Tarraf Construction, a certified minority owned company from Eden Prairie will be providing container services for excavation and demolition.
Together, Ames, Veit and LeJeune have committed to including 32.8 percent women-owned and 9.5 percent minority-owned businesses in their work. The overall project goals as included in the Targeted Business Program are 11.0 percent and 9.0 percent respectively.
Todays agreement signals a pivotal point where we can begin to put Minnesotans to work building an amazing facility that will serve the community and generations of fans for years to come, said John Wood, senior vice president at Mortenson Construction. This is the time when this project becomes a reality for the thousands of workers and hundreds of companies who will join with us and help build a piece of Minnesotas history.
About the Minnesota Sports Facilities Authority
In May 2012, the Minnesota Legislature and the Minneapolis City Council approved funding for the new $975 million multi-purpose stadium to replace the Metrodome. The MSFA owns and operates the Metrodome and will also own and operate the new stadium. The MSFA is responsible for the design and construction of the new stadium, which is scheduled to open in time for the 2016 NFL season. For more information, visit www.msfa.com.
About Mortenson Construction
Founded in 1954, Mortenson Construction is a U.S.-based, privately-held construction company. As one of the nation's top builders, Mortenson provides a complete range of services, including planning, program management, preconstruction, general contracting, construction management, design-build, and turn-key development.
Mortenson has offices in Chicago, Denver, Madison, Milwaukee, Minneapolis, Phoenix, Portland, and Seattle with international operations in Canada and China. For more information, visit mortenson.com.
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