Mobile, Ala. – The city’s $300 million Regions Arena construction is progressing as planned, with the project now roughly 75 percent complete and expected to finish slightly under budget, city project manager Sam Matheny told the Mobile City Council on Tuesday.
Budget impact of the fraud incident
In October, fraudsters impersonating the arena’s contractor, B.L. Harbert International, convinced city employees to change banking information and wire $14.7 million to a fraudulent account. The city’s original budget included a $15 million contingency fund for unforeseen costs, leaving an adjusted budget of about $285 million after the loss.
Matheny reported that the total projected cost now stands at $281.6 million, meaning the arena remains on budget despite the recent fraud event. “We are still on budget, even with the recent fraud event,” he said.
Construction timeline and milestones
The arena was originally slated to open in September, but the opening was pushed back due to rainy weather. The city now expects the first event to take place in March, with construction slated for completion by March 25. “Back‑of‑the‑house” work will continue through the end of April.
Specific progress includes:
- Ice‑rink floor work has begun.
- Drywall installation is about 85 percent finished.
- Tile work and restroom areas are roughly 60‑65 percent complete.
City’s response to the cyber‑fraud
City officials said they are working with multiple cybersecurity firms, accounting specialists, and federal investigators to fully understand how the fraud occurred. Councilwoman Gina Gregory advocated for a parallel investigation by the council to ensure thorough oversight.
The city’s attorney declined to comment on which employees were responsible, citing personnel matters, but confirmed that a separate fraudulent attempt in August was also a cyberattack. That incident resulted in a near‑$1 million transfer, which the city recovered within five days.
Looking ahead
Another Finance Committee meeting is scheduled for two weeks from now to continue oversight of the arena project and the ongoing investigations. City leaders remain confident that the arena will be ready for its inaugural event in March and that the budget will stay within the revised limits.
Residents can look forward to a new multi‑purpose venue that will host sports, concerts, and community events, contributing to Mobile’s cultural and economic vitality.
Original reporting: FOX10 WALA Mobile (news) — read the source article.
