INDIANAPOLIS (AP) — The public agencies that oversee Lucas Oil Stadium will pay up to $2 million to repair pipe insulation in the six-year-old facility that’s home to the Indianapolis Colts.
The insulation problem isn’t “an immediate threat” and stems from work done by a contractor that went out for business before the $720 million stadium was completed, said John Klipsch, executive director of the Indiana Stadium and Convention Building Authority.
The building authority, a state agency that was responsible for the stadium’s design and construction, will share the repair costs with the city’s Capital Improvement Board, which operates the stadium, The Indianapolis Starreported.
Klipsch said the building authority has received $13.8 million from bonding and insurance companies toward at least $14.7 million in other needed repairs, including damage from flooding caused by roof drains that broke open in 2008 and the 2011 replacement of corroded pipes supplying water to restrooms, sinks and water fountains.
“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.”
Ann Lathrop, president of the Capital Improvement Board, said the pipe insulation problem was identified more than two years ago and that repairs are estimated to cost between $1.5 million and $2 million.
The agreement between the building authority and the CIB to fix the insulation made sense because it avoided litigation over whether the problem stemmed from defective construction or poor maintenance, she said.
Construction of the stadium was financed with a mix of food and beverage taxes in Indianapolis and six surrounding counties and increased hotel, auto and ticket taxes in Indianapolis. Those taxes also are paying for the $275 million expansion of the downtown Indiana Convention Center that was completed in 2011.