Hurricane-driven increases in construction prices and a building boom in China will cost the University of Tennessee $9.1 million more than expected on two stadium projects.

Those factors will also slow the anticipated progress of UT's ambitious, soon-to-begin, five-phase, $107 million renovation of Neyland Stadium.

On Thursday UT will ask the State Building Commission to approve letting it spend $24 million on Phase I of the Neyland Stadium renovation instead of the $16 million originally marked for improvements.

UT will also ask for approval to increase the construction costs of the new Regal Soccer Stadium, home of the UT Lady Vols soccer team, from $5.4 million to $6.5 million.

The bids on both projects came in late last month considerably higher than UT had initially anticipated.

But the higher costs weren't a surprise in the aftermath of Hurricanes Katrina and Rita.

Massive efforts to rebuild Gulf Coast communities have driven up the costs of construction materials, which were already rising because of a building boom in Asia.

Earlier this year UT learned it would cost $39 million, instead of the projected $30 million, to build its new business administration building.

"The majority of increase on (Neyland's Phase I) is related to steel, and what I'm being told is the requirement to get the labor force (needed) to have it completed before the '06 season," UT Athletic Director Mike Hamilton said Monday.

Phase I includes the addition of more than 400 new club seats on the east side of the stadium as well as improvements to restrooms and concession stands.

Hamilton said the athletic department has roughly enough money, either in and or committed, to complete the Phase I renovation even with the higher construction bills.

The club seats are available for a $25,000 gift and a $4,000 annual donation per seat, meaning that UT expects to have $10.1 million up front on the seats. They should produce at least $1.6 million in revenue annually.

Hamilton said UT has an additional $10 million to $11 million in donor gifts available as well as another $1 million or so in ticket revenues to cover Phase I costs.

UT officials have opted to move forward with the projects as planned instead of scaling them back or waiting to see if the construction costs settle down in a few months, he said.

"If we redesign and re-bid, then we can't have it (Neyland) ready for the 2006 season," Hamilton said.

"We've been telling our fans we're headed in this direction and I feel like we need to because we know it's (renovating the 84-year-old stadium) something we have to do."

But the higher costs will slow things down.

Hamilton had planned to do the first part of the Neyland Stadium work in 2006 and immediately start on the second phase, which includes brickwork and plaza and gate renovations. Now, however, he said the department likely will delay Phase II for a couple years "to allow us to pick up a little revenue in the interim."

UT has $2.5 million in gifts for the soccer stadium and will borrow the rest and pay it off by 2009. It is set to open in August.

UT's athletic department brings in roughly $65 million in revenue a year to support the operating budget for its men's and women's sports teams.

Football is the golden goose, accounting for about $45 million. The men's and women's basketball programs are the only other programs that produce significant revenues.

UT has a separate budget for capital projects, and Bill Myers, chief financial officer for the athletic department, said earlier this year the department expects to spend about $30 million over the next two years on facilities.

Hamilton said it is too early to tell how the increase in construction costs will affect UT in the next few years.

He said no one knows yet whether rising construction costs signal a trend or if price rises will moderate.

But he said the question UT faced in making its decision is, "Do we go ahead and move forward or do we say let's wait 12 months and re-bid?"

"But heck, it's roll the dice. It could be more 12 months from now."

Randy Kenner may be reached at 865-342-6305.