The construction cost for the 190-acre Trump Golf Links at Ferry Point in the Bronx is estimated at $236 million, or 10 times the price previously consigned to it. Authorities are blaming the spike in construction costs for the tremendous increase.
The exorbitant price tag for the construction includes the $181.4 million putting green and an adjacent $54 million 30-acre water parkland and esplanade, the New York Daily News reports, citing the Independent Budget Office (IBO).
Park authorities explained the cost breakdown to the NY Daily News:
"A large fraction of this [construction] cost was from the excavation and removal of municipal solid waste and other environmental remediation that we performed as . . . mandated by new environmental standards," Arthur Pincus, Parks Department spokesman said.
Prices have indeed shot up in the past few months alone. According to the ENR Construction Cost Index, material costs were up 0.5 percent on a year-over-year basis. Building costs were up 1.4 percent on an annual basis and the overall construction cost also shot up 2.8 percent on a year-on-year basis.
Ferry Point Golf Course
The story of the construction of the Ferry Point golf course is nothing short of a history lesson. Construction began in 2000 on a large landfill beside the Whitestone Bridge overlooking the East River. It oversaw several government changes, contractor shuffles and other obstacles before picking up speed.
Michael Bloomberg finally took charge of the project and appointed Donald Trump, the property tycoon, chief contractor of the Ferry Point golf course in 2011
"Had they not chosen me, it would have been 15 years before it opened. I broke their [behinds], you have no idea. I sent the roughest guys there. I sent construction guys that eat nails," he told The Wall Street Journal.
Costs and Financing
While the course won't open before the spring of 2015, costs are escalating. Officials blame the rising prices of construction materials for the increase. According to the IBO, costs have gone up by $32 million for the course and $13 million for the nearby parks.
Despite the rising costs, financing for golf courses in the U.S. has loosened up. With the economy's rebound, demand for golf is steadily improving, which is why banks and financial institutes are lending, albeit carefully, reports Businessweek.
"We only finance golf course owners and operators, not housing developers. We'll never do a deal where the source of repayment of the loan is through the sale of acres of land meant for housing developments," Chris Balestrino, head of Park Place Equity LLC, told the website.
