At the NFL owners meetings in Phoenix on Monday, the Buffalo Bills Executive Vice President, Ron Raccuia, revealed that the cost of the new Bills stadium has increased to $1.54 billion. This represents a significant increase of $140 million over the initial projection of $1.4 billion. However, this additional cost will not have any impact on taxpayers. Erie County Executive, Mark Poloncarz, explained that the terms of the stadium deal dictate that public contributions towards the project are capped and that any additional expenses will be fully covered by the Bills.
Despite the increased cost, the stadium project is still on track and progressing as planned. The Bills have expressed their commitment to fulfilling their financial obligations, and they will cover any additional expenses required to complete the project. The stadium is expected to be a significant improvement over the Bills’ current home, New Era Field, and it will provide a world-class venue for fans to enjoy. With the stadium project continuing to move forward, the Bills and their fans can look forward to a bright future for the team in their new home.
In March of last year, a memorandum of understanding was signed by all parties involved in the construction of a stadium. The agreement outlined the financial terms for the project, which included a financing formula requiring $600 million in public financing from the state and $250 million from Erie County. These contributions were expected to come from a combination of borrowing and cash.
What is more, the National Football League was to provide $200 million through the NFL’s G-4 loan program. The majority of this loan would be repaid through the visiting team’s share of certain ticket revenue.
The remaining cost of the project, estimated to be $350 million, was to be assumed by the Bills. The team had plans to cover this cost through various means, including the sale of approximately 50,000 personal seat licenses to all season ticket holders. The terms of the agreement specified that any additional costs associated with the stadium project would be the responsibility of the Bills.
According to Poloncarz, the stadium agreement is expected to be submitted to the Erie County Legislature this week, once it has been signed. However, certain legal opinion letters are currently being exchanged, which do not impact the primary terms of the agreement. On the other hand, Raccuia is optimistic that the documents will be sent soon, and he is hopeful that they will arrive at their destination by Wednesday.
Raccuia further mentioned that the lawyers have had the agreement for an extended period, longer than what was necessary. In fact, the deal has been settled for several weeks now, and there have been no negotiations for months. The remaining task is to finalize more than 20 documents, and allow the attorneys to communicate and express their opinions. Despite the agreement being established for quite some time, it is essential to get it across the finish line, so that the construction work can begin.
