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Proposals / Motorsports / Santa Barbara Race Club / The Plan / Construction Budget
Strategy

Construction Budget

The Phase I construction budget in its funding context — the four-category total, how contingency and escalation protect it, and how it is drawn and funded. Full cost-centre detail is on the Construction Cost page.

$113.77M
Phase I construction (excl. land)
12%
Contingency on total hard cost
3.5% / yr
Escalation to a 2030 completion
~24–32 mo
Build duration
Budget summaryCost controlsFunding the budget

Budget summary

Phase I construction budget.
CategoryAmount
Hard cost (excl. FF&E incl. karting/off-road)$78.20M
FF&E (equipment)$13.00M
Soft cost (engineering, contingency, CM, permitting)$22.57M
Construction (excl. land)$113.77M
Land (separate, seller-financed)$50.00M
This is the same authoritative total as the Construction Cost analysis, shown here in its funding context; the cost-centre build-up and methodology are on that page.

Cost controls

Contingency

12% of total hard cost — a clean reserve against scope and market movement

Escalation

3.5%/yr construction to a 2030 completion

Three-point pricing

Low / average / high; budget held at average, with the California premium carried internally

Design-grade replacement

The planning-level figure is replaced by a line-item, escalated, three-point estimate at design

Funding the budget

The budget is funded primarily by real estate and membership, bridged by a 60% LTV construction loan and a maintained $10M reserve, with land seller-financed. The mechanics are detailed on the Capital Structure page; monthly budget-versus-actual by cost centre governs delivery, with persistent overruns triggering a scope or schedule re-evaluation.

Related analysis

Construction CostCapital Structure
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Confidential. Prepared by Ignition Advisory Group for SBRN Management LLC. Access-controlled; not for public distribution. Supporting documentation is available through the References & Sources section.
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