The Idaho State Board of Education approved a $5 million budget increase toward the construction of the Idaho Central Credit Union Arena Wednesday, raising the total to $51 million.
The increase comes following the Board’s initial budget approval of $46 million in March. The request came from incoming University of Idaho President Scott Green, who now oversees the project.
Of the $5 million increase, $1.5 million is an added contingency toward “unforeseen costs,” according to the release.
The budget increase is a result of several factors, including limited contractor availability, active construction environments and high cost of labor, UI President Chuck Staben said in a news release.
The construction of the arena, which is currently set to break ground June 6, currently has $25 million in funding. Student fees are projected to generate $18.5 million over the next 35 years at current enrollment, according to the release.
The $34 million in loans come from short-term investments, and will be repaid through gifts, pledges and increased student facility fees, as previously reported by The Argonaut.
Additionally, $33 million in interest is set to be repaid over 35 years, according to the release.
Kyle Pfannenstiel contributed to this report.
Max Rothenberg can be reached at [email protected]