Crossroads project revised: revenues near original estimates but costs up; net benefit reduced

At the council work session, the finance committee presented revised figures for the Crossroads (convention center) project that show revenues close to original expectations but higher costs and reduced net benefit.

Robert Scott said original Crossroads revenue projections were $738,000,000 and revised projections $723,000,000; original costs were roughly $3.34 billion and revised to about $3.79 billion. "On a percentage basis, we're looking at 98% of the revenue. Our costs have gone up by ... 114%," Scott said. He reported the revised net benefit is about $343,000,000 compared with an earlier $403,000,000 figure.

Council members and staff cautioned the projections rely on several assumptions, including the timing of phase starts and the expected sale of a 22.5‑acre parcel to Sandler to support bond payments. The city’s representative noted the assumed Sandler sale and the timing of phase 1 (originally planned for 2006) had not yet closed, and staff said those items will need revision in future reports. One council member highlighted that the Crossroads net benefit calculation depends on a "2 plus 2" tax revenue assumed to support bonds; without that revenue the reported net benefit would be materially smaller.

Council directed staff to provide quarterly updates and to verify the status of expected property closings and phase starts. Several members reiterated the finance committee’s recommendation for stronger upfront development agreements and to consider dedicated project management for large, multi‑phase developments.