The long-abandoned New Granada Theater finally seems ready for new life, anchoring a development that could be transformative for the Hill District.

The New Granada Square is a $45 million project, encompassing a city block, says Marimba Milliones, president and CEO of the Hill Community Development Corporation. It includes a historic restoration of the Granada building, a 24,000-square-foot office building, affordable artist-preference apartments and 7,500 square feet of commercial space beneath the apartments, with parking in the rear.

On Thursday, the Urban Redevelopment Authority of Pittsburgh (URA) voted to convey the land to the Hill Community Development Corporation and Cleveland-based CHN Housing Partners, for the mixed-use development.

Construction on the five-story, 40-unit apartment building available to those at or below 80% of the area median income is planned for this summer.

The theater alone is a multi-level, mixed-use project which will provide a range of functions.

Its not a traditional theater, where you just walk in and there are seats and a screen, says Milliones. Its a 3 1/2-story building. It will have commercial, institutional, cultural and community space, including a food hall and a small black box theater, and a multipurpose events space, that can house anything from a concert 926 seats to a conference, to a TED talk, to a large-scale event.

The top floor will be anchored by the University of Pittsburgh Community Engagement Center.

Im super-excited about the (Pitt) Department of African American Poetry & Poetics that will be housed there, as well as a STEAM studio, says Milliones.

The STEAM studio will focus on the intersection of science, technology, entertainment, arts and media, developed in partnership with the University of Pittsburgh.

The New Granada Theater, which is on the National Register of Historic Places, was designed by Louis A.S. Bellinger, one of Americas early African-American architects.

This is his last remaining structure, says Milliones. There are lots of interesting architectural components, and it also documents the need for African-American social space. It was designed as a Knights of Pythias temple; this was their fraternal hall. This space is important because it documented life at that time. Furthermore, Duke Ellington was named King of Jazz at New Granada, Louis Armstrong has played there, Earl Hines played there. In jazz culture, the New Granada has substantial importance.

Its a development that has enormous potential for Centre Avenue and the entire Hill District neighborhood.

Theres development, and theres development that really gets at the core of a city or neighborhoods identity, says Milliones. This is one of of those projects thats not only catalytic, but also is a tremendous nod to the history of the Hill District community and its importance to the city of Pittsburgh, historically.

Hill Community Development Corporationhill districtNew Granada Theater

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$45M New Granada Square project moves forward in the Hill District - NEXTpittsburgh

Demolition on the Amazon HQ2 site in Pentagon City is expected to begin soon.

The 2.1 million square foot office-and-retail development along S. Eads Street, the first phase of Amazons permanent second headquarters in Arlington, was approved by the County Board in December.

Now, construction equipment is being staged ahead of demolition of the two-story warehouse building and parking lot currently on the site. According to an off-the-record presentation given to local civic associations earlier this week, a slide from which was obtained by ARLnow, demolition and site preparation is scheduled to start within the next month or two.

Excavation will run from the second quarter of 2020 to the end of the year, while construction of the above-ground portion of the complex is expected to start in the second half of 2021. Construction and interior work is expected to wrap up by the middle of 2023, according to the presentation.

In the meantime, the growing contingent of Amazon employees in Arlington will work out of temporary office space in Crystal City.

Were looking forward to beginning demolition at the Metropolitan Park site in the very near future; some staging activity has already begun, an Amazon spokeswoman told ARLnow. Amazon is already here and were hiring. As the MetPark site takes shape, we will continue to grow the teams in our leased space in Crystal City, where we now have nearly 450 employees.

Its not yet clear whether Amazon will hold a groundbreaking ceremony as work at the Pentagon City site gets underway.

Some local residents, particularly those who live in apartment buildings across the street, have expressed concerns about construction noise from the project. Permitted working hours extend until 9 p.m. on weekdays, were told.

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Countdown to Construction: Equipment Being Staged at Amazon HQ2 Site - ARLnow

There might be fewer construction cranes downtown, but that doesnt mean the regions apartment frenzy has halted.

Much of 2020s apartment construction will be in neighborhoods outside of downtown San Diego, which has made up the lions share of new rentals the past few years. More building is now occurring in North Park, Hillcrest, Pacific Beach and throughout the county.

There are around 3,500 new apartments planned to open in 2020. Thats down from 4,500 expected at the start of last year, but early numbers show that total was likely not reached. Predicting how many apartments will open at the start of the year can be tricky because delays are frequent and one large project being postponed a few months can skew a yearly total.

Regardless, it appears the San Diego County apartment market is showing little signs of slowing as developers continue to benefit from ever-growing rent. Thats despite concerns over statewide rent control, changes for how developers submit projects downtown and fears of a slowing economy.

The difference this year is a lack of large-scale downtown developments, particularly the massive complexes in East Village and Little Italy that made the last few years seem like downtown was a giant construction site.

One of the downtowns biggest developers, Nat Bosa of Bosa Development, said there isnt a whole lot to read into a slowdown. Bosas Broadway Block apartment complex, with 620 apartments downtown, is set to open in 2021.

A little bit of slowing down in the apartment sector is not all bad, he said, because there has been a hell of a lot that came on scene. So, we need to absorb all that inventory.

The movement of many smaller apartment projects into San Diegos neighborhoods means higher density where single-family homes have dominated for a half-century.

One of those projects is Kansas Modern, a 24-unit complex in the heart of North Park that takes the place of three older single-family homes. Developer and architect Beri Varol said he is bullish on the apartment market in San Diego, especially in North Park where a lot of young professionals want to live.

Varols plan is to start rent at $2,100 a month for a one-bedroom and up to $3,400 for a two-bedroom. He said he has seen apartments going for the same rate, which he feels are lower quality, in the area.

I dont think well have a problem, honestly, he said of rental rates.

Varols company, BV Architecture + Development, is a boutique developer with smaller-scale projects similar to many of the developers dominating recent apartment construction with 20 to 50-unit apartment projects throughout the county.

As the name would suggest, the apartment is contemporary and likely to appeal to a millennial renter. It will hold a lot more on the site than the three houses that once sat there, including a new Moes Coffee on the ground floor, 17 parking spaces (it is still being decided how spots will be allocated), storage units for all apartments, an outdoor gathering area with a barbecue pit, large balconies for all apartments, and communal bikes (first come, first served ).

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Inside of one of the soon to be completed ground floor apartments at the Kansas Modern apartments on Kansas Street and Howard Avenue in North Park, on Thursday, January 09, 2020. (John Gibbins/John Gibbins/San Diego Union-Tri)

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Beri Varol, the architect and developer of the Kansas Modern apartments on Kansas Street and Howard Avenue in North Park, in one of the soon to be completed units on Thursday, January 09, 2020. (John Gibbins/John Gibbins/San Diego Union-Tri)

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Plater crew getting read to work at the soon to be completed 24 unit Kansas Modern apartments on Kansas Street and Howard Avenue in North Park, on Thursday, January 09, 2020. (John Gibbins/John Gibbins/San Diego Union-Tri)

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Exterior of the at the Kansas Modern apartments on Kansas Street and Howard Avenue in North Park, on Thursday, January 09, 2020. (John Gibbins/John Gibbins/San Diego Union-Tri)

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Beri Varol, right, the architect and developer of the Kansas Modern apartments on Kansas Street and Howard Avenue in North Park, with Union-Tribune Real Estate reporter Phil Molnar, left, on Thursday, January 09, 2020. (John Gibbins/John Gibbins/San Diego Union-Tri)

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Drone view of the soon to be completed 24 unit Kansas Modern apartments on Kansas Street and Howard Avenue in North Park, on Thursday, January 09, 2020. (John Gibbins/John Gibbins/San Diego Union-Tribune)

Kansas Modern, at 4195 Kansas St., will be a short walk to 30th Street near the Vons grocery store. From there, it is quick access on foot to North Parks bars, restaurants and shops. Varol said that is one of the main selling points of the project.

You are in the epicenter of everything that is exciting about North Park, he said.

Varol said he left out certain amenities that he felt werent crucial and, ultimately, meant the costs would not be passed on to renters. There is no elevator in the three-story building and no gym, considering how many there are in the area. The complex includes three rent-restricted apartments for low-income renters.

He said it cost $1.6 million to acquire the land for Kansas Modern, with a total development cost of $9.5 million. It is anticipated to open in early April 2020.

It would hard to find a better location for an apartment than The Collins, a luxury complex in La Jolla that is a short walk from the popular Windansea Beach.

The 15-unit apartment complex from the San Diego-based Murfey Co. is an example of repurposing a building to meet housing demand, albeit on a small scale. The Collins used to be the Nautilus Professional Building, built in 1964, which was mostly used for dental and medical offices.

It took about a year to convert the building, which Murfey Co. calls a sophisticated callback, sort of a contemporary style with retro leanings. The company bought the site, along with an adjacent building, for $9.15 million in June 2018. It declined to say the overall development cost for The Collins, which was designed by San Diego-based H2 Architects.

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Souther side of the Collins luxury apartment complex on La Jolla Blvd. on Tuesday, January 14, 2020. (John Gibbins/John Gibbins/San Diego Union-Tribune)

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L-r, developers Scott Murfey and his brother Russ Murphy inside one of their units at The Collins luxury apartment complex on La Jolla Blvd. on Tuesday, January 14, 2020. (John Gibbins/John Gibbins/San Diego Union-Tribune)

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One of the bedrooms in a two bedroom unit of the Collins luxury apartment complex on La Jolla Blvd. on Tuesday, January 14, 2020. (John Gibbins/John Gibbins/San Diego Union-Tribune)

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Derek Marso, owner of the Valley Farms Market, which is in the lower floor of the Collins luxury apartment complex on La Jolla Blvd., at the meat counter on Tuesday, January 14, 2020. (John Gibbins/John Gibbins/San Diego Union-Tribune)

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Derek Marso, owner of the Valley Farms Market, which is in the lower floor of the Collins luxury apartment complex on La Jolla Blvd., walked towards the produce section on Tuesday, January 14, 2020. (John Gibbins/John Gibbins/San Diego Union-Tribune)

Russ Murfey, co-owner of Murfey Co., said he must have driven past the site with his brother Scott Murfey (also a co-owner) thousands of times and dreamed about what was possible. He said the building had been an eyesore for 20 years and wasnt serving the community.

It was really run down and needed a turnaround, he said. We saw the opportunity to give it a breath of fresh air.

The Collins only recently opened and was entirely pre-leased before doors opened. Rents started at $1,995 for a one-bedroom unit (average 650 square feet) and $2,595 for a two-bedroom apartment (average 1,000 square feet). There is one subsidized unit in the building for a renter earning under 50 percent of the area median income. About half the units have ocean views and the main amenity is its proximity to the beach. Russ Murfey said renters are a mix of young professionals and empty-nesters, and most are from the general area.

The four-story building is mixed-use with the Miller & Calhoon law office on the fourth floor and the Valley Farm Market grocery store on the first floor. It is the second location of the market, which has been in Spring Valley since 1956. The 5,000-square-foot grocery store seems to fit in with the La Jolla crowd, featuring organic produce, fresh seafood and meat without added hormones that is range fed.

The market is run by Derek Marso, grandson to the founders of the East County market, who said hes received hundreds of offers to open a new grocery store somewhere but this is the first time he found a good fit. Valley Farm Market opened in late November, but will likely host its official grand opening in a few weeks.

Rent profits arent what they used to be a few years ago, but it doesnt seem to be stopping developers.

As of the fourth quarter last year, rent was an average $1,850 a month, said real estate tracker CoStar. That was an increase of 3.2 percent in a year, which was down from the past few years when rent was increasing 5 to 7 percent annually.

The rent growth in San Diego County mirrors the economy coming out of the Great Recession. In the fourth quarter of 2010, rent was an average $1,341, and has been going up ever since rising 38 percent as of the end of 2019. CoStar forecasts rent will continue to increase through at least the fourth quarter of 2024.

In its latest multifamily market overview, real estate firm JLL wrote that demand for apartments would remain strong in San Diego County because of job growth and low unemployment. Other factors it noted were a diverse mix of industries, growing population and a substantial millennial population, 27 percent, the third-highest in the nation behind Austin and San Francisco.

Aerial drone view of the Collins luxury apartment complex on La Jolla Blvd. on Tuesday, January 14, 2020.

(John Gibbins/John Gibbins/San Diego Union-Tribune)

Adding to the renter pool is a highly educated population. JLL said 24 percent of residents over 25 years old have a bachelors degree, above the 20 percent national average.

Another potential advantage for apartment developers, JLL noted, was the dropping homeownership rate in the county. Nearly half of the region, 49 percent, are renters. Rapidly increasing home prices, already out of reach for most of the population, are expected to continue this trend.

Large real estate corporations might have reason to seek out the San Diego metro area as opposed to some other markets. San Diego had the ninth-highest rent of the 100 largest metro areas in December, Zumper said, with $1,780 a month for a one-bedroom.

That was more than Miami ($1,710 a month), Denver ($1,520), Chicago ($1,440) and Portland ($1,430).

There are a few things that could disrupt the market as the industry waits to see how everything is going to play out. First, the downtown planning agency Civic San Diego credited by JLL for quickly approving projects has been stripped of power and now it will be the responsibility of the city to handle downtown development. The city is still establishing a downtown staff, which may slow approvals for some time.

Second, there is rent control in San Diego County for the first time as of January. However, the new rent cap law only applies to older buildings (projects more than 15 years old) and increases will be capped at 7.2 percent. Rent never increased that much in a year in San Diego County going back to 2001, according to CoStar data.

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San Diego County: More than 3,000 new apartments coming this year, with most outside of downtown - The San Diego Union-Tribune

The former Sunset School in Utica is nothing more than a pile of rubble.

Excavators and other heavy machinery were moving piles of dirt and debris earlier this week. Due to the warmer than usual weather and clear skies earlier this month, the demolition is ahead of schedule, said Louis Tehan, interim executive director of the Kelberman Center.

The Kelberman Center intends to build a four-story, 60-unit apartment building, which has drawn criticism from nearby residents. Signs in the yards of some homes adjacent to Sunset Avenue in South Utica implore the Kelberman Center to build the development smaller.

Dubbed The Link at Sunset, the apartment complex includes 48 units of market-rate housing and 12 units reserved for individuals with autism spectrum disorders. Demolition of the former school at 2507-2513 Sunset Ave. began last December.

Theres been less dust during the demolition due to the cold temperatures, but the building still was sprayed with water as the structure was brought down, Tehan said. With crews expected to complete debris removal by the end of the month, the next step will depend on the weather.

Tehan said its unlikely any construction work will get underway at the site as its too cold for concrete work. Its more likely contractors will pick up the work in April once temperatures begin to warm up, he said.

The Kelberman Center and its contractors hold a construction meeting every Friday, Tehan said.

The transition from demolition to construction should be seamless from an administrative standpoint. Daniel Cozza, the citys chief building inspector, said the Kelberman Centers building permit for the site covered both the tear down and new build in December.

The citys planning board approved the site plan for the Sunset project at its May 17, 2018 meeting, but it garnered attention when Gov. Andrew Cuomo announced $5.2 million in state funds for the project last May. Cuomos announcement highlighted the project, which will include an on-site service office for the Kelberman Center.

South Utica residents concerned with the Kelberman Centers project turned out to several Common Council meetings earlier this year. About 48 residents came to the June 5 Common Council meeting and expressed concern about having 60 units on the 1.4-acre lot.

Changing of the guard

Tehan, the CEO of Upstate Caring Partners, is serving as interim executive director of the Kelberman Center after Dr. Robert Myers stepped away from the position. Upstate Caring Partners is the parent corporation of the Kelberman Center and Upstate Cerebral Palsy.

Tehan, who took over the role Jan. 1, said Myers left the position to focus on consulting work and teaching at Syracuse University. Tehan did not elaborate on the reason behind Myers departure, but cited the grind of the position, including a commute from Syracuse.

Myers and Dr. Michael Kelbermans names appeared on a letter circulated in the weeks prior to the November 2019 elections, which urged recipients to vote for three local political candidates Utica Mayor Robert Palmieri, Oneida County Executive Anthony Picente Jr. and Utica Common Council President Michael Galime. Myers and Kelberman denied approving the distribution of the letter or granting permission to use their signatures on the letter, which may have violated federal and state laws prohibiting nonprofits from endorsing political candidates.

The Kelberman Center then issued a statement alleging the letter was sent by Upstate Cerebral Palsy, its sister organization.

Contact reporter Steve Howe at 315-792-5015 or follow him on Twitter (@OD_Howe).

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South Utica housing project presses ahead - Utica Observer Dispatch

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Construction crews work on the new Jefferson High School on Tuesday, Jan. 7, 2020 at the site near North Marion Road and Career Avenue. (Photo: Abigail Dollins / Argus Leader)

Snow and the cold are no match for Sioux Falls construction industry.

Even in the middle of January, with remnants of the most recent winter storm still visible and a bitter wind blowing, one particular work site in northwestern Sioux Falls was bustling.

Jeff Kreiter stopped to let an excavator pass as he made his way back to the trailer for an afternoon meeting. Behind him were a network of towering walls, beams and joists that will eventually coalesce to become Thomas Jefferson High School.

Five years ago we were thinking it might need to happen, said Kreiter, operational services director for the Sioux Falls School District. The population just kept increasing.

Population growth drives development,and for 2019 the high school was the single biggest project approved by the city in another busy year for the Sioux Falls construction industry.

Jefferson High: Final designs could bring Sioux Falls School District under budget

Even with plenty of activityand a few massive projects, numbers released by the city's planning departmentlast week show the combined value of building permits issued in 2019 dropped for the first time in nine years, a break in a run of consecutive record-breaking years for the citys construction industry.

Shifting building trends, a tight workforce, tornado recovery and a few major projects all came into play last year for Sioux Falls contractors.

Some takeaways:

The construction industry continued to hit its stride last year, with hundreds of million of dollars in projects approved by City Hall and thousands of building permits issued.

In fact, the number of building permits issued last year marked a three-year high, with 7,355 permits pulled for projects across the city.

The combined value of those permits was $771.5 million, showing a strong growth rate overall, said Jeff Eckhoff, planning services director for the city.

You talk to the builders, its a very strong economy, a very strong market for them, he said.

The decrease in value from 2018 to 2019 amounted to $15.1 million a 2 percent dip. But the drop is less of a concern when you consider the signs of economic strength apparent from a more detailed look at last years construction data, said Michael Bender, founder and principal of Bender Commercial Real Estate.

2019 was not spectacular, it was solid, Bender said.

A view shows the future main entrance of the new Jefferson High School on Tuesday, Jan. 7, 2020 at the site near North Marion Road and Career Avenue. (Photo: Abigail Dollins / Argus Leader)

A drop in construction on new apartments affected the overall numbers

A few big-ticket projects werent enough to make up for a shift in how developers treated multi-family housing.

USD Discovery District: Construction on the first phase set for April

The one area where we were down significantly was in the apartments, Eckhoff said.

A breakdown of building permit totals for last year shows a significant departure from the recent boom years for the construction of new apartment buildings.

Developers flooded the housing market with massive apartment complexes in 2016 and 2017, causing a spike in the number of new rental units added.

The trend reached a breaking point in 2018 and continued to reverse course last year. Construction value on new apartment buildings plummeted from $117.4 million to $65.6 million in a two-year period. The result: The city added nearly half of the number of rental units it added in 2017.

Our demand didnt double, Bender said. Yet, our supply doubled.

Builders across the skilled trades have struggled against Sioux Falls low unemployment for years.

The citys low jobless rate has created a shortage of workers across the industries, and construction is not immune. Contractors in Sioux Falls have been some of the busiest and most vocal in advocating for workforce development initiatives and partnering with Southeast Tech and area public schools.

Building Services Director Jeff Kreiter observes the construction work on the front side of the new Jefferson High School on Tuesday, Jan. 7, 2020 at the site near North Marion Road and Career Avenue. (Photo: Abigail Dollins / Argus Leader)

Bender sees labor as a limiting factor on the industrys activity and he wonders if the numbers for last year would have been better if there had been a better supply of workers.

Construction: Schools top list of Sioux Falls' biggest projects in 2019

He believes the citys yearly construction totals could some day top $1 billion, but only if contractors have enough workers.

The labor market has put pressure on construction interests, Bender said.

Bender and his company host an invite-only economic outlook forum each year, analyzing past real-estate trends and making predictions for the year to come.

Now in its 23rd year, the Bender Market Outlook is slated for Feb. 20 at the Washington Pavillion, and the staff at the Sioux Falls-based firm are already busy preparing.

Despite the decrease in combined permit value last year, Bender notes that commercial projects continue to outpace residential. There was a $30 million uptick in new commercial construction overall, driven by the addition of new strip malls, hotels and restaurants, according to city data.

Thats a good sign, Bender said.

An updated map shows construction progress on the new Jefferson High School on Tuesday, Jan. 7, 2020 at the site near North Marion Road and Career Avenue.(Photo: Abigail Dollins / Argus Leader)

The reason being that commercial is a larger dollar amount, he said.

Another indicator of economic strength is when there is more new construction than additions or remodels.

In Sioux Falls case, new construction outpaced addition-remodel totals for both commercial and residential projects.

Most people look for reasons not to make a decision, Bender said.

Five massive projects, most of them funded by taxpayers, were responsible for providing the biggest boost in value for the construction industry.

Two new schools contributed significantly to the combined value of permits issued in 2019, along with a project from the city, a local bank and a newcomer to the citys competitive medical services industry. They are:

Combined, they make up one-fifth of the total permit value for last year.

USD Discovery District: LifeScape to build new children's campus

Giant projects like the two schools might seem like outliers, but Bender said its often the norm. Each year there are a small group of significant projects that buoy the combined value of building permits issued.

After overseeing construction on the Avera Specialty Hospital and a few other major projects from recent years, Sioux Falls-based contractor Journey Group continued its dominance of the citys construction industry last year.

Journey filed permits for Jefferson High School and continued its work for Avera, which for 2019 included new permits the Avera Human Performance Center and extensive repairs in the wake of the fall tornadoes.

We believe the majority of our success is built on great relationships and the partnerships we have grown over the years here in Sioux Falls and in the region, Journey President and CEO Randy Knecht said in an emailed statement.

The top contractors for 2019 by permit value were:

Three tornadoes touched down in Sioux Falls this fall, significantly damaging residential and commercial buildings across the city.

Recovering from the devastation meant significant rebuilding by Avera Health and businesses along 41st Street, along with nearby homes affected by damage.

There were nearly 170 building permits issued that mentioned the storm, worth a combined value of $13.7 million.

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Sioux Falls construction for 2019: Values down, permits up and signs of good things ahead - Argus Leader

The developer of an apartment complex that drew criticism over its plan to separate low-income renters in a different building is threatening to sue over its denial.

Vancouver-based Pinnacle International sought to build a project in East Village called Pinnacle Pacific Heights that would have included a 32-story building for market-rate renters and an adjacent eight-story building for rent-restricted apartments. Low-income renters would not have access to a roof deck or pool on the market-rate side, and would have to enter the building in a separate entrance.

Public officials with the downtown planning agency, Civic San Diego, were critical of the project for separating two classes of renters. Board member Robert Robinson even called it segregation at its finest. Civic denied the project in July and again in October.

Pinnacles law firm, California-based Allen Matkins Leck Gamble Mallory & Natsis, sent a letter in November threatening to sue because it said Civic overstepped its authority. It wasnt until this week that the board discussed the letter in a closed session. The San Diego Union-Tribune obtained a copy of the letter through a public records request.

The letter was addressed to Civic President Andrew Phillips but also sent to the City Attorneys Office and the city council. The City Attorneys Office said it is reviewing the letter and will be consulting with public officials. Allen Matkins Leck Gamble Mallory & Natsis did not respond to requests for comment by phone and email.

In its letter, the law firm said that Civics authority was mainly limited to design issues and by thwarting the project it violated the citys municipal code; density bonus program, which would have allowed Pinnacle to build more market-rate housing in exchange for including rent-restricted units; and the Housing Accountability Act, which encourages the construction of affordable housing.

It further alleged that it did not make clear in its denial what aspect of its downtown design guidelines that Pinnacle had violated. In short, the Boards action was erroneous and violated various state and local laws, the letter read.

A strict read of Civics authority is largely limited to design review but it often squabbles with developers for not creating enough density in projects in an effort to create more housing. Ironically, Civic agreed to largely dissolve earlier last year, with almost all downtown development now being handled by the city. However, projects that started with Civic before the change will continue with the agency.

The citys plans are largely designed to quickly approve projects as long as developers meet the required criteria. While limited to mostly design discussions, Civic was often the final say in the approval of major projects.

With the agencys role changing, it might limit public hearings on projects like Pinnacles. In meetings where the developer showed plans for Pacific Heights, it received a verbal lashing by members of Local 619 Southwest Regional Council of Carpenters, who have feuded with Pinnacle for years.

Pinnacles plan for fulfilling its low-income housing requirements was a first of its kind in San Diego, although Civic staff acknowledged it was acceptable under the law. In San Diego, developers are able to get approval for denser development, called a FAR (floor area ratio) bonus, as long as they build low-income housing within one mile of a development.

The developers original plan called for taking the low-income housing requirements for three different projects and putting all the rent-restricted housing in one East Village building. The projects included a 38-story mixed-use building in the Colombia neighborhood with 144 residential units and 301 hotel rooms; A 38-story tower in East Village with 431 residential units; and Pinnacle Pacific Heights, which would have 387 market-rate dwelling units.

Pinnacles original plan would have created 58 affordable housing units, but it still drew criticism from members of the public and elected officials.

It drew parallels to a New York City apartment called Extell that opened in 2016 with a separate entrance for low-income renters, nicknamed a poor door, reported The New York Post. Like Pinnacle Pacific Heights, low-income residents did not have access to many amenities.

Does income determine a persons value? said Jesse Garcia, a carpenters union member, at the July Civic meeting. The people of San Diego deserve dignity and equality, regardless of income. Please say no to the poor door.

Pinnacles legal counsel at the July meeting, David Dick, countered that the developer should be praised for its creation of subsidized housing instead of many builders that just pay a fee instead.

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Developer of 'poor door' apartment building in East Village threatens legal action over denial - The San Diego Union-Tribune

LINCOLN SQUARE A developer is looking to tear down a two-story building at Foster and Lincoln avenues and replace it with a five-story building with apartments and ground floor stores.

But word of the planned teardown was news to some of the people working in the existing building at the corner.

Neighbors will get a chance to weigh in on the plans later this month at a community meeting. It will be held at 6 p.m. Jan. 28 at the 40th Ward office, 5620 N. Western Ave.

Grand Properties Acquisitions LLC wants to tear down the current two-story building at 5155-5159 N. Lincoln Ave. that currently houses the businesses Jimmys Pizza Cafe, La Cabana De Don Luis and Kenias Bar.

Its unclear what lies in store for the businesses in the existing building. The developers did not return a message asking for comment.

Jimmy Kang, owner of Jimmys Pizza, said he learned of his landlords plans from Block Club Chicago.

If theyre going ahead with what theyre planning to do well need to move, said Kang.The landlord hasnt been around too much lately, butI knew he was trying to sell it.

Im not sure what were going to do now. Even if we stay after they build we cant be here during their demolition and construction, Kang said. Of course we want to keep the current customers we have in Lincoln Square. Thats key. But right now were just unsure if we can stay in the area. It all depends on the real estate market and finding another place for us nearby.

La Cabana De Don Luis chef Jose Mejia said the plan for a teardown was news to him.

I heard the building was for sale but didnt realize someone wanted to tear it down, he said in Spanish Thursday night. If theyre building something new Id like to still be located here. We havent put much thought into what would happen to our business if this building is torn down because this is the first Im hearing of the plans.

The new building would feature ground floor commercial rental space at the corner, two designated affordable work-live storefront units and parking for 20 cars, according to information from Ald. Andre Vasquezs (40th) office.

The upper floors of the building would contain 40 residential units, four of which will be designated affordable.

Developers would need a zoning change to move forward with the project.

Grand Properties is the same developer currently seeking a zoning change at 3244 3250 W. Bryn Mawr Ave. to build a new four-story mixed-use building.

Additional renderings of the proposed building below.

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Plan To Tear Down Building At Lincoln and Foster Is News To Businesses Operating There Now - Block Club Chicago

All of this was done on my own dime; the landlord didnt pay for a nail, Mr. Bloom said. My rent was subsidized, but that was offset by spending $60,000.

He hoped to renew his lease at favorable rates. But last spring, the landlord told him the rent would go from $3,865 a month to $5,850. And Mr. Bloom would still be responsible for heat and building maintenance from replacing a broken refrigerator in one of the two apartments to dealing with a broken boiler.

I was astonished I did not get a better deal, said Mr. Bloom, who couldnt afford the increase. Finally, in late fall, after months of negotiation, he signed a new four-year-lease at $4,800 a month, with 2 percent annual increases. While he would have preferred to simply rent his own unit at a discount, the landlord was not amenable to splitting the leases, and Mr. Bloom is still responsible for the heat and maintenance, including replacing appliances, although not for the mechanicals or the roof.

The deal, he said, is barely financially manageable. The downstairs unit now rents for $3,150 a month, leaving him with a cost of $1,650 for the top floor. And the landlord has told him he must leave after his current lease ends in 2023.

The space I created is a delightful, strange, kooky space, he said. I think I wanted to create a space that felt welcoming and like my New York the way New York used to be.

But it ended up driving home the reality of renting in New York: If youre not in a rent-stabilized apartment, your claim on a place begins and ends with the lease.

Its challenging to reconcile the idea of home with impermanence, he said. But that is the nature of being a renter.

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The Perils of Renovating if You Rent - The New York Times

WASHINGTON Construction of new homes surged in December to the highest level in 13 years, capping a year in which falling mortgage rates and a strong labor market helped lift the prospects of the housing industry.

The Commerce Department reported Friday that builders started construction on 1.61 million homes at a seasonally adjusted annual rate in December, up 16.9% from the November pace of home building.

Housing construction has been rising since July, helped by falling mortgage rates and increased demand as the unemployment rate approached a half-century low. For the year, builders started work on a total of 1.29 million homes, the best showing since 2007.

The December building rate was the strongest number since December 2006 during the last housing boom.

Applications for building permits, considered a good sign of future activity, fell 3.9% in December to an annual rate of 1.42 million, but remained well above the pace in July.

Construction of single-family homes rose 11.2% to an annual rate of 1.06 million homes last month while apartment construction fell 9.6%.

The 1.29 million units constructed for all of 2019 was up 3.2% from the previous year and was the best showing since 1.36 million homes were built in 2007. As the housing boom was reaching its peak, construction was started on a total of 2.07 million homes in 2005, the highest total for any year in that boom.

By region, construction was up 25.5% in the Northeast, 37.3% in the Midwest, 9.3% in the South and 19.8% in the West.

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US housing construction jumps 16.9% in December - Finance and Commerce

Issuing predictions for a new year, let alone a new decade, is a mugs game. However, there are events to which the construction industry can look forward with certainty over the next several years. These will impact how developers, owners, designers and contractors consider new projects over the next ten years.

Many of these events will be regulatory in nature. Changes to Canadas National Building Code are expected later this year and will continue to evolve over the next 10 years as part of the countrys 2030 commitment to overall global GHG reduction.

As a result, the building industry will be motivated to look beyond green field construction and tear-down-and-replace projects in order to meet the housing, commercial and infrastructure demands for the worlds ever-increasing population. Some of that attention will be directed to something very familiar: older buildings.

Renovating or repurposing existing buildings is not an entirely new concept. Homeowners have been renovating with enthusiasm for decades. Old warehouses in former urban factory districts have been repurposed as trendy workspaces, restaurants, galleries and condominiums.

Through creative design, repurposing and renovation can offer new life even to existing shopping malls, high-rise apartments and commercial buildings without the complete demolition of what was standing beforehand.

There are examples everywhere. Calgary developer Strategic Group is converting the Barron Building, an iconic 50s-era downtown 12-storey office building into a mixed-use space featuring retail and rental residences. The buildings art deco exterior will be preserved while modern residences are built inside.

In Hamilton Ont., the Ken Soble Tower, a 50-year-old, 24-storey municipally-owned seniors residence, is undergoing a deep energy retrofit, the first of what will be many similar projects in cities across Canada.

Beyond the aesthetic appeal of many older structures, there is another reason for the growing interest in preserving buildings rather than replacing them with newly cast concrete and steel embodied carbon.

New construction processes are very wasteful of carbon and other GHGs, accounting for eight per cent of all GHGs created around the world. Of course, the argument that new buildings are more operationally energy-efficient than older buildings is compelling, at least until one learns that construction of those new buildings accounts for 80 per cent of total GHG emissions over the structures lifespan.

In fact, the payback period for carbon expended during construction can take decades to recover through energy-efficiency gains. Toronto architectural firm Quadrangle conducted an internal Life Cycle Carbon analysis that indicated a carbon payback period for concrete construction of 43 years. Mass timber construction was better, at 21 years.

While this would seem to favour wood over concrete during a buildings expected lifecycle, it overlooks the carbon savings of renovated or re-purposed buildings. These existing structures represent the embodiment of tons of carbon expended decades earlier.

However, not everyone is sold on the concept of renovation or repurposing to extend a buildings useful life.

The 2016 IKEA building in London, U.K., promoted as the companys most sustainable store in their global network, resulted ironically in the demolition of a 15-year-old supermarket that was itself a pioneer of passive and active solutions for heating, cooling and day-lighting.

In Canada, some leading developers are dismissive of apartment building upgrades in lieu of new construction despite the high demand for increased and improved rental housing supply.

RioCan REITs CEO, Ed Sonshine recently referred to such renovations in the Globe and Mail as attempting to put lipstick on a pig. When youve got 50 years of cooking in a building, the walls smell, he said. And you cant replace anything, because then you have to kick people out.

The reduction of the construction industrys contribution to GHGs will, of course, require several solutions: forced regulation, improved manufacturing and assembly methods, and increased use of carbon-reduced materials. At the same time, it will mean a new dawn for older buildings, and recognition that something old can be made new again.

John Bleasby is a Coldwater, Ont. based freelance writer. Send comments and Inside Innovation column ideas to editor@dailycommercialnews.com.

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Inside Innovation: In praise of older buildings - Daily Commercial News