49ers: Santa Clara stadium to open early, in 2014; groundbreaking this spring
http://www.mercurynews.com/top-stories/ci_19941012
Santa Clara leaders on Friday vowed for the first time to open the San Francisco 49ers' new stadium in 2014 -- a year earlier than planned -- after finalizing a deal with a major construction firm to start building in the next few months.
The groundbreaking for the South Bay stadium is set for late spring, about six months sooner than the previous estimate of early 2013.
The fast-tracked schedule is the strongest evidence yet that the 49ers intend to play only two more seasons at Candlestick Park in San Francisco. And there are costly consequences if the team doesn't kick off in Santa Clara in 2014: Construction partners Turner-Devcon would face tens of millions of dollars in penalties if the project falls behind.
"We're going to be playing football here in 2014," Santa Clara Mayor Jamie Matthews said. "I have no doubt whatsoever."
Friday's pledge comes just a week after the NFL approved the final $200 million needed to fund the Niners' new home field, which removed the last obstacle before construction could begin.
The deal, to be approved by Santa Clara officials Tuesday, includes an $878 million construction contract with Turner-Devcon, a partnership of two firms that have been helping to plan the stadium since 2007. It is the largest piece of the overall $1 billion stadium development, which also includes such things as site prep work and a nearby parking garage.
The contract requires Turner-Devcon to start buildingby July 1 and finish the stadium so it can open by the end of August 2014. If not, the firms would be penalized $6 million for each 49ers game missed, plus daily fines that could hit $20 million.
The penalties are harsh enough that the firms could actually lose money on the deal if they don't finish the project on time. On the other hand, if they complete the stadium in time for the 2014 preseason, the 49ers will reward the firms with a $5 million bonus.
City officials called the $878 million contract a "conservative" estimate they expect to go down. Turner-Devcon will earn 4 percent of the total contract, which, based on the current estimate, would net the firms $35 million. Their fee was the lowest offer received by the 49ers, which called the companies the best qualified.
Turner Construction is a huge New York City-based firm that has three Bay Area offices, including one in San Jose. It has worked on NFL stadium projects for the Green Bay Packers, Kansas City Chiefs, Denver Broncos and Philadelphia Eagles. Devcon Construction is much smaller and based in Milpitas. Neither firm could be reached for comment late Friday.
But 49ers Chief Financial Officer Larry MacNeil expressed encouragement.
"We have more work ahead and we will shoot to open the new stadium in 2014," MacNeil said in a statement.
The 49ers and Santa Clara had been shooting to start construction in January 2013 and open the field for the 2015 season. But after the pair secured $850 million in bank loans in December, the NFL approved the rest of the funding last week.
"I know everyone is anxious" to start building, Matthews said.
The Santa Clara Stadium Authority, which consists of the pro-stadium City Council, is set to finalize the contract Tuesday night. It is also expected to approve a $390,000 consulting contact with Hatheway Consulting to help manage construction and an $830,000 deal with Willis Insurance Services of California for insurance broker services for the project.