ORCHARD PARK, N.Y. (WBEN) - New York State has released its study on a Buffalo Bills stadium (Read the full study above).
The study does not specify which site is preferred by the state, saying that decision will be based on negotiations between the parties. However, the study does recommend the parties proceed with a new stadium over renovation of the current Highmark Stadium.
The state's study provides different financial information about the cost of a downtown stadium versus a new one in Orchard Park. The cost to build a new stadium in Orchard Park is estimated to cost $1.354 billion, which is slightly less than what the Bills projected in their stadium. A new stadium in the City of Buffalo would add a minimum of approximately $350 million to the cost, though other costs would be incurred such as the displacement of downtown residents and businesses. All told, a downtown stadium could cost at least $2.1 billion.
Renovating the existing stadium is estimated to cost approximately $862 million, according to the state study.
“We are confident that the results of this analysis will be a valuable tool as the state, Erie County and the Buffalo Bills work together to make sure the team remains in the region in a facility that Bills fans and New Yorkers can be proud of for years to come,” said Kevin Younis, CEO of Empire State Development, which commissioned the study.
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The state said the Bills generate approximately $27 million per year in fiscal revenues to the city, county, and state.
"Both the Orchard Park and Downtown sites have limited potential to attract significant upfront real estate investment," the summary of the study reads. "However, public investments in infrastructure surrounding a downtown stadium could potentially result in increased property values in the area, resulting in increased property tax collections, estimate to total approximately $53 million (net present value) over the next 30 years."
Though the Bills’ lease on their current stadium doesn’t expire for 21 more months, time is running short on reaching a financing agreement.
“If we get to January and there’s no new deal done, you should really be concerned,” Pegula Sports and Entertainment executive vice president Ron Raccuia told The Associated Press last weekend. PSE is the Bills’ parent company, with Raccuia overseeing stadium negotiations.
Raccuia already has said PSE has no intention of renewing the lease once it expires in July 2023 if no deal is in place. The threat of relocation is a possibility — even though it has not been raised in talks, and Raccuia maintains the Bills are solely focused on reaching an agreement with state and county officials to help finance the new stadium.
Having a deal in place by January would allow Gov. Kathy Hochul to include stadium funding in her budget proposal for approval in April. With Hochul up for election next fall, it’s unlikely she will have time for negotiations while campaigning.
The Bills, meanwhile, are concerned they might have go back to square one in negotiations should there be another change in governor.
The study also said there are "additional, intangible factors that cannot be quantified" but must be considered.
The Erie County Executive Mark Poloncarz said the study would guide negotiations. The Buffalo Bills have not publicly commented on the government's study.
The study finds the Bills bring in about $26.6 million in annual tax revenue. Though more expensive, a downtown site would be projected to generate about $53 million in additional tax revenue over a 30-year span.
AECOM could not project how much of those revenues would be lost if the Bills relocated out of state.
“There are significant intangible benefits associated with serving as the home of an NFL franchise that can impact policy decision related to investment in a stadium and surrounding neighborhoods,” the study said.
The Bills’ proposal does not include a roof, but features a curved design which would protect about 80% of the seats from the elements. Highmark Stadium is mostly open air, with few seats protected from the weather, which the Bills say lead to lower attendance for late-season games.
AECOM projected adding a roof would add close to $300 million in additional costs. If the decision was made to include a design that could one day incorporate a roof, it would cost $109 million more — not including the cost of the eventual roof.