Skanska inks $94M contract for TX entertainment center P3 project

Dive Brief:

The $173 million Irving Music Factory, a public-private partnership (P3) with the city of Irving, TX, is set to resume construction this week with Skanska USA taking over from Balfour Beatty, according to the Dallas Business Journal. Skanska reported its contract for the project is worth $94 million.
Developer ARK Group said the project was delayed while Ark, the city and Skanska signed a new contract. WFAA reported that work had been halted on the project while Ark secured the necessary private financing.
ARK said the project was broken up into horizontal and vertical phases, and Balfour Beatty finished its part of the project before Skanska, who has experience with the type of Live Nation venue that anchors the development, took over, according to the Business Journal.

Dive Insight:

The Music Factory complex is part of the convention center that voters approved in 2007 in an effort to recoup anticipated revenue losses when the Dallas Cowboys NFL franchise moved from Irving to Arlington, TX. In addition to coming up with private financing after the original investors backed out, the city said ARK President Noah Lazes also agreed to contract changes that give the city more oversight over the venue and additional revenue sharing.

The focal point of the complex is a 100,000-square-foot, 8,000-seat, Live Nation-operated amphitheater. The 18-acre complex will also feature an Alamo Drafthouse Cineplex, 100,000 square feet of office space and more than 250,000 square feet of clubs and restaurants. According to Skanska, in addition to live music performances, the complex is designed to host fashion shows, farmer’s markets and food festivals.

P3s, or partnerships between public entities and private enterprise, have become increasingly popular in the U.S., and especially in Texas. The state successfully used a P3 for the Dallas LBJ Express highway rehab, and officials said they were able to finish the project ahead of schedule because of the P3 agreement. In December, Arlington, TX, officials voted to enter into a P3 with the Texas Rangers for a $200 million mixed-use development next to the ballpark.