Rancho Santa Fe interchange costs rising in Kingman | Kingman Daily Miner

KINGMAN — The Rancho Santa Fe Traffic Interchange project is feeling the pain of inflation, causing financial worries among city officials.

City Manager Ron Foggin told Kingman City Council at their Tuesday, Sept. 6 meeting that the Arizona Department of Transportation reported large cost increases, according to Foggin.

A third party has been hired by the city and project partner Sun Belt Development to estimate the updated project cost for the interchange, supporting roads and stormwater retention system.

Foggin said that ADOT has communicated cost inflators, specifically with road construction. One state estimate saw a 31% increase while another saw as much as a 60% increase due to high material costs.

The cost estimate was originally around $46 million.

“What we are seeing with this escalation in pricing is that we have engineering estimates and then we’re getting estimates of 31% over the engineering estimates,” Foggin said. “Which is really scary.”

Foggin said when estimates are provided by a third party council will be updated on costs. However, when planning and budgeting have already taken place, Foggin said it’s challenging to imagine higher costs.

“It’s very hard to eat 31% more than what you’ve budgeted for,” Foggin said. “Matter of fact it would almost put this project out of reach for the city.”

The project is currently undergoing an Environmental Assessment connected to the Federal Aviation Administration Land Release, which Foggin said should be finished in November, followed by an Irrevocable Letter of Credit from the developer.

“The lenders and money behind it want to make sure that the land is completely in our possession and we’re able to build the road,” Foggin said.

As for the Kingman Crossing interchange, Foggin said 30% of the plans have been sent to ADOT and are awaiting feedback. Once feedback is received by the city at the end of the month staff estimates 100% of plans to be completed by April 2023.

“Once that is complete it will be up to KX Ventures (project partner) to put up the money and we will go to bid and break ground shortly after that,” Foggin said.