Janice R. Andrews
MOBILE, AL — Mobile’s planned $300 million Civic Center arena faces potential cost challenges as former President Donald Trump’s tariff policies create uncertainty. City officials are proceeding with a crucial Tuesday vote on financing and contracts, but impending import tariffs could significantly increase the project’s budget.
Critical Timeline Pressure
The Mobile city council will vote on a $237.4 million contract with Birmingham-based B.L. Harbert International, the lowest project bidder. A separate vote addresses a 20-year, $250 million financing package. Officials face tight deadlines, aiming to complete the 10,000-seat venue before the 2027 Carnival season—a vital economic and cultural event for Mobile.
Trump’s trade policies present complications, with a 25% tariff on global steel and aluminum imports taking effect March 12. Possible additional tariffs targeting Mexico, Canada, and China further heighten cost concerns.
Industry Leaders Express Concern
B.L. Harbert International CEO Billy Harbert acknowledged the unpredictability of tariff-related price increases: “We don’t know the answer to that one. I don’t think anyone on the planet knows where we are headed with tariffs.”
While Mayor Sandy Stimpson assured that tariff-induced cost increases would fall on the contractor rather than the city, economists warn of broader implications. Troy University economics professor Dan Sutter noted that similar 2018 tariffs increased construction costs by 10%. “If these tariffs hold, construction projects like this could see significant overruns,” Sutter explained.
Seeking Financial Stability
Councilman Ben Reynolds believes the project has sufficient contingency funds to absorb potential price increases. Councilman William Carroll, who has construction industry experience, stressed the importance of securing prices before tariffs take effect: “If purchase orders go out soon enough, we can hold suppliers to their quoted prices.”
Sutter cautioned that even fixed contracts provide limited protection: “A tariff is essentially a tax on imports. Even if you have a fixed contract, added costs could still trickle down.”
Additional Funding Challenges
The Mobile County Commission has yet to confirm its financial commitment to the project. Commissioners are considering a $10 million contribution, with Commissioner Randall Dueitt indicating a final decision might come in March.
As Mobile works to secure funding amid economic uncertainty, the arena’s future remains vulnerable to evolving U.S. trade policies.
