True Costs Of Stadium Go Beyond Budget

Gandhi added the $46.4 million in land and infrastructure costs to the budget and removed $54 million in bond financing fees to be paid for another way. Gandhi now says that he believed the legislation gave him that authority.

Wall Street bond raters were not satisfied with the legislation, however. They asked Gandhi to get the council to approve three amendments, including one that would allow the city to spend more than the approved budget.

Cropp agreed that the amendment was a "technical" change that would establish the council's original intent to allow Gandhi to take out the financing fees, if necessary.

The council approved the amendment Nov. 15 without discussing that it permitted the city to spend more than $535 million. Instead, Cropp cast the issue in the opposite way: The amendments were needed to get investment-grade bond ratings from Wall Street, which would save the city significant money in interest.

The council approved the amendments 11 to 2, with David A. Catania (I-At Large) and Adrian M. Fenty (D-Ward 4) opposing them. This month, Catania raised the issue again.

"The moment of truth is the integrity of the council," Catania said Tuesday at a council meeting. "Can the mayor and baseball supporters rewrite the law?"

Several members who supported the amendments, including Graham and Kwame R. Brown (D-At Large), now say they never intended to authorize more spending.

Williams, Cropp and Gandhi stressed that the financing fees will not be paid with money from the city's general fund, but rather with revenue generated by the Nationals in the past season and interest earned on the bonds next year.

But the city's commitment to the project had risen to $589 million.

From $589 Million To $714 Million

The stadium budget had grown significantly -- but not enough.

After months of work, architects submitted designs to the D.C. Sports and Entertainment Commission for a state-of-the-art stadium made of glass, steel and limestone. But the estimated cost for the ballpark had increased from $244 million to $337 million.

Cutbacks reduced the price to $300 million, but sports commission Chief Executive Allen Y. Lew said he could go no lower.

"The initial estimates that were developed by the city were for an average ballpark," Lew said. "We wanted something iconic, and you have to pay for that."

To help cover the cost of the ambitious ballpark, including buying land and the rising cost of materials, Lew shifted money within the budget. Roughly $55 million that had been set aside for infrastructure and $40 million in contingencies would be used for construction.

Those decisions have had significant ramifications. As Gandhi has analyzed the costs during his study this month, he has put the contingency and infrastructure costs back on the table and determined that the price tag for all costs related to the project could reach $714 million, although government sources said he is likely to lower that figure slightly.

Williams and sports commission Chairman Mark H. Tuohey called the infrastructure costs "ancillary." They pledged to seek contributions from the federal government and private developers. Baseball recently has agreed to contribute $20 million.

But uncertainty remains. Sixteen land owners at the stadium site have not accepted the city's offers and are asking a Superior Court judge for more money. The sports commission is hoping to break ground in March, but delays could result in even higher costs.

"People have to be alarmed," Graham said. "Do you want to finance a stadium at $535 million? That's a lot of money. How about $634 million or $710 million? At some point, you lose everybody because it's just not worth it."