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| Problem-Plagued.
Owner will use proceeds for repairs. (Photo courtesy of
Southeast Professional Baseball Park District) |
Three years of litigation
over costs associated with building and repairing the operable
roof at Milwaukee’s Miller Park ended Jan. 7 in a settlement,
just days before the case was to begin trial. The agreement,
which includes roughly $46 million in payouts from insurers,
closes another chapter in the baseball park’s troubled
history. It was the site of a 1999 fatal crane collapse and,
since its 2001 opening, has been plagued by mechanical problems,
drawn-out lawsuits and finger pointing.
The mediation process was "very difficult," says
Mike Duckett, executive director of the Southeast Wisconsin
Professional Baseball Park District, the ballpark’s owner.
The five-county agency originally filed suit against Mitsubishi
Heavy Industries of America Inc., the roof’s subcontractor,
in January 2002, for claims that eventually totaled $49 million.
Mitsubishi in turn had been seeking $34 million from the district.
After two months of settlement talks, both sides will get
about 60% of their claims. "This is an acceptable resolution,"
says Mary C. Cannon, Mitsubishi’s spokeswoman.
The district plans to use most of its $32.95-million award
to replace the bogey drives that slide the fan-shaped roof’s
moveable panels, repair rusted metal decking on two stationary
panels and seal truss end walls that are a source of water
infiltration.
The bogey job will begin in fall, while the other work could
start this summer. The ballpark is scheduled to have all parts
in working order for baseball’s Brewers 2006 season opener.
"We will finally be at the point where the roof is fully
functional," says Duckett.
The district has not released a cost estimate for the work,
but Duckett says, "I am very confident that the reserve
funds will be adequate."
The funds will also pay for attorney fees, estimated between
$1 million and $3 million, and a $6.8-million replacement
of noisy pivot bearings over home plate completed two years
ago (ENR 3/24/03 p. 13).
As part of the settlement, HCH, the construction manager,
will relieve the district of $1.9 million in outstanding payments,
putting final construction costs within the $394-million budget.
Insurers will pick up most of the tab. Travelers Indemnity
Co. of Illinois, Indemnity Insurance Co. of North America
and Royal Insurance Co. will pay the district $28.95 million.
Mitsubishi will pay the $4-million balance.
The same three insurers and Steadfast Insurance Co. will
pay Mitsubishi about $17 million. The district will pay the
construction company $6 million in cost-overrun damages. Mitsubishi
will also receive $250,000 from Arup, the project’s engineer
of record. Arup could not be reached for comment.
The agreement relieves Mitsubishi from warranty work for
existing roof defects. However, its warranty still applies
to a "very narrow exception" of future defects discovered
after the settlement, Cannon says.
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