Repairs at Lucas Oil Stadium to cost up to $2 million
It will cost up to $2 million to repair pipe insulation at Lucas Oil Stadium that officials say was either improperly installed or "deteriorated prematurely."
The Indiana Stadium and Convention Building Authority, which was responsible for design and construction of the stadium, will pay the first $1 million plus half of the remaining balance. The other half will be paid by the Capital Improvement Board (CIB), which operates the stadium.
John Klipsch, executive director of the building authority, said insulation was among three major construction issues at Lucas Oil Stadium, a $720 million structure that opened on the south end of Downtown in 2008.
The other issues are:
• Flooding from roof drains that broke open during a rain storm weeks before the stadium opened in 2008.
• Corrosion of pipes supplying water to restrooms, sinks and water fountains, which were replaced in 2011.
Klipsch said the building authority recovered, from bonding and insurance companies, $13.8 million out of at least $14.7 million for repairs of the three major issues. Any additional money will come from contingency funds in the original taxpayer financing of the stadium, he said.
"As in all mediations, you don't get everything you ask for or claim as a problem," Klipsch said. "For us to recover all but a million dollars of $15 million is a great settlement. You wouldn't do that good in court."
Ann Lathrop, president of the CIB, estimated that fixing the insulation will cost between $1.5 and $2 million. The CIB gets about 80 percent of its money from taxes, mainly on purchases such as hotel nights, car rentals and food and beverages.
Lathrop said the agreement between the building authority and the CIB to fix the insulation made sense because it avoided litigation. The CIB, a municipal entity, would have argued that the problem was defective construction. The building authority, a state entity, would have argued that it was poor maintenance.
"As good faith partners, we decided to do what was best for the city, state, and our major tenants — negotiate the best and fastest way to fix the issues identified," Lathrop said.
The insulation problem was identified more than two years ago, Lathrop said. Klipsch said the issue is not "an immediate threat." The building authority signed a settlement with bonding and insurance companies in September.
All of the major issues involved work by contractor Frank E. Irish Co., which went out of business before the stadium was finished. A performance bond subsequently financed completion of the work.
The flooding and corrosion issues were settled with bonding and insurance companies in October 2013. Klipsch said the rest of the $13.8 million recovered by the building authority came from "builder's risk insurance," which covers damage during construction.
Contact Mark Alesia at (317)-444-6311 or @markalesia.