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Hundreds of Millions? What a Deal!
Editor, Times-Dispatch: We have learned that the renovation of the VCU West Hospital would cost $130 per square foot, and would preserve a beautiful, sturdy piece of architecture. Tearing it down, and building a 500,000-square-foot modern, probably not so well-built (as witnessed by the City Hall's necessary renovation so soon after completion), probably not as pretty building would cost $150 million. By my math (actually, my calculator's math), that is $300 per square foot. Uh, gee, it would seem a no-brainer to me.
Without a miracle of finance - if VCU's Board of Visitors can stop inflation - there will be cost over-runs every time one gets an estimate and then waits 10 (or even two) years to go ahead with the deal. Unless they start on it tomorrow, that $150 million will probably become $200 million, a jump of 250 percent of the total estimated $20 million for the complete renovation, which if started now would probably end up actually costing $25 million.
One would think that a university with a reputable business school would understand inflation, and might take that into account when giving estimates. One also might want to know why this Board thinks the rest of us are unable to divide $150 million by 500,000 square feet. One can definitely assume that the taxpayers, whom the Board seems so worried about, would much rather pay an extra $30 per square foot than an extra $200, and a total of $25 million rather than $150 million. Are these maybe the same folks who think we need a new baseball stadium with no parking in Shockoe Bottom?
D. Scott McRae. richmond.