Rancho Santa Fe Interchange could exceed budget; Sunbelt has not submitted environmental assessment￼
KINGMAN – Kingman City Manager Ron Foggin has engaged a consulting firm to provide an updated cost estimate for the Interstate 40 Rancho Santa Fe Interchange and Parkway Project. Foggin didn’t identify the firm, but indicated during the September 6 council meeting that he felt it necessary to get a better grasp on possible expenditure due to inflation.
City project private partner Sun Belt Development (KDP Manager) employee John Timko first projected cost at $46 million when he unveiled a single sheet project budget at a council meeting several years ago. Foggin said there’s concern because the Arizona Department of Transportation advised five months ago that some road-involved construction projects across the state had escalated 31% (one by 60%) in cost following the pandemic, exacerbated by inflation.
Foggin did not indicate when the cost estimate firm will provide figures, but he said the numbers will be helpful in better understanding how much more the endeavor will cost today, as opposed to original projection.
“The developer and the money behind the developer are afraid of that as well,” Foggin said. “It’s very hard to eat 31% more than what you’ve budgeted. Matter of fact, it could almost put this project out of reach.”
Foggin also explained again that Sunbelt’s letter of credit and financing for its portion of the project is held up by need of finishing an Environmental Assessment (EA) to achieve release of federal land. Foggin said completion of that process is a couple of months away.
“We expect that the EA, the land release for the road and all the infrastructure associated with the road will be done in November,” Foggin said.