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New Baseball Cost Study Could Take Five Months

Conflicting Estimates, Spending Cap at Issue

By David Nakamura
Washington Post Staff Writer
Sunday, December 5, 2004; Page C01

The Washington Nationals will be playing in the District for a month before the city's chief financial officer completes a second cost estimate for a baseball stadium, an analysis that could alter the team's future.

Natwar M. Gandhi said he would hire at least two outside consultants and take five months if the D.C. Council requires him to reanalyze the costs of building a baseball stadium in Southeast Washington.


D.C. Council Chairman Linda W. Cropp, shown in 2003, proposed the second cost analysis, to be done by Natwar M. Gandhi, chief D.C. financial officer. (The Washington Post)

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The council gave preliminary approval last week to Mayor Anthony A. Williams's plan to finance the stadium largely with public funds. But an amendment instructs Gandhi to conduct a second analysis. If a new estimate were to exceed Gandhi's first analysis by $100 million or more, the mayor would be forced to find a cheaper site.

Major League Baseball officials frowned on the amendment, saying the District should abide by its original agreement. The council will take a final vote Dec. 14.

With the political stakes high, Gandhi said he would launch a thorough analysis and probably would not finish the estimate before the council's proposed May 15 deadline -- when the city anticipates beginning the process to acquire land for the stadium.

"I'm going to look into all possible issues. We have to be comfortable among ourselves to go to the council and make them comfortable," Gandhi said. "There's a lot riding on this. We will not leave any stone unturned."

The first study, done by Gandhi in the fall, took three weeks. That analysis showed the cost of a stadium project potentially reaching $535 million, about $100 million more than advisers to Williams (D) had calculated.

But Gandhi's analysis did not closely examine the costs of acquiring the 21 acres proposed or the possible environmental problems at the site, on the Anacostia waterfront near the Navy Yard and South Capitol Street. The council's legislation would require Gandhi to reevaluate the land and infrastructure costs. Some council members have suggested that the largely industrial site might require an environmental cleanup, forcing costly delays.

Administration officials said they are confident that a second analysis would come in far below the $631 million cap set by the council.

Stephen M. Green, a top-level city planner, developed the original $435 million budget for the mayor and said that in virtually every area -- including acquiring the land and building the 41,000-seat ballpark -- he built in contingency money.

"The CFO can do whatever he wants, but we're confident about the budget we have," Green said.

Jack Evans (D-Ward 2), a stadium supporter, said he would be shocked if Gandhi found hidden costs above the council's cap. "I do not see how it could happen," Evans said. "If it does, I agree the city should start looking around" for a new site.

Gandhi is not the only one who has suggested that costs could rise above the city's $435 million estimate. D.C. Auditor Deborah K. Nichols put the price at $584 million, and an analysis by The Washington Post found that costs could rise to $614 million.

In each case, added costs would come largely from overruns and infrastructure changes -- $50 million to $116 million, according to the various estimates.


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