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NEW! GigaCrete Eco-Friendly Kit House. STRONG. Resists fire/hurricane. Insulated. Easy. Affordable. - Video
OTTAWA - Construction plans heated up strongly in December as municipalities issued $6.8 billion worth of building permits, the highest level since June 2007.
Statistics Canada said Tuesday that was a jump of 11.1 per cent over November and was driven mainly by increased plans for apartments and condos in Ontario and commercial buildings in Alberta.
The value of residential sector permits rose 16.1 per cent to $4.5 billion in a second consecutive monthly increase.
Major projects in Ontario pushed permits for multi-family dwellings up 28.9 per cent to $1.9 billion, the highest level since December 2005.
In the non-residential sector, the value of permits grew 2.8 per cent to $2.4 billion in December, following a 15.1 per cent drop in November.
The total value of building permits was up in five provinces, led by Ontario, Alberta and Quebec.
Municipalities issued $2.6 billion worth of permits for single-family dwellings in December, up 8.1 per cent from November. The rise was attributable to higher construction intentions in six provinces, led by Quebec and Alberta.
In the commercial component, the value of permits jumped 41.0 per cent to $1.6 billion in December.
The increase follows two monthly declines and was driven by higher construction intentions for office buildings and warehouse facilities in Alberta, as well as hotels in Ontario.
The value of industrial permits declined 24.2 per cent to $353 million in December. It was the second consecutive monthly decrease.
In the institutional sector, the value of building permits declined 42.2 per cent to $402 million. It was a second consecutive monthly decline after the sector hit a peak of more than $1 billion in October 2011.
The largest declines were in construction intentions for educational institutions in Ontario, health care facilities in Alberta, Saskatchewan and Manitoba, and government buildings in British Columbia.
The total value of permits issued rose in 17 of 34 census metropolitan areas.
Toronto had the largest increase, followed by Calgary. Toronto's increase was mostly attributable to building permits for multi-family dwellings. Calgary's increase was largely due to higher intentions for commercial buildings and single-family dwellings.
The largest declines were in Ottawa and Vancouver.
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Building permits in December rise to hit levels last seen in June 2007
ASPEN — Construction activity in unincorporated Pitkin County continued to slide in 2011, while building within the city of Aspen picked up slightly, according to year-end figures compiled by the building departments for both governments.
Both the city and county have trimmed their building staffs in response to the downturn in activity over the past few years, but in the city at least, potential interest in projects began to rebound last year, according to Chris Bendon, community development director. Preapplication conferences and plan reviews in Bendon's office are the first step in issuing construction-related permits, and Bendon said his staff saw an uptick in those services during 2011, though the number barely exceeded 2010's totals.
It's difficult to know if consultations will lead to actual building applications, Bendon added.
“We are seeing more preapplication conferences … more interest in properties — definitely an increase in activity over years past,” he said. “Certainly, it's not where we were in '07, '08.”
The city issued 628 building permits in 2011 worth $134.9 million in construction value. The total includes 339 permits for commercial projects and 289 for residential work. The figures represent new construction, expansion and remodeling work.
In 2010, the city issued 622 permits worth $70.2 million, including 305 permits for commercial projects and 317 for residential.
Both years were an improvement over 2009, when the city issued a total of 567 permits, including 239 for commercial projects and 328 for residential work, with a total value of $65.8 million.
“It feels like it's thawing out a little bit,” said Mike Metheny, building inspection manager for the city.
The huge jump in overall project value between 2010 and 2011 reflects the Aspen Valley Hospital expansion in large part, he said. That work accounts for $52 million of the 2011 total.
The city expects to see another big project break ground this year, with construction of the new Aspen Art Museum scheduled to begin this spring.
Pitkin County tallied 79 residential construction permits in 2011, worth $68.9 million, plus 29 nonresidential projects worth $7.7 million. The residential numbers are the lowest the county has seen in nearly two decades.
Home construction and remodeling makes up the bulk of the building activity in unincorporated parts of the county. Since 1992, the number of residential building permits issued has dropped below 100 only twice, in 2009 and last year. During the peak of the building boom, in 2000, the county issued 278 residential permits.
County revenues from building fees have plummeted and are not projected to recover to any large degree in the coming years, according to County Manager Jon Peacock.
“Construction is not coming back. We don't see the fundamentals for construction coming back in the near future,” he told the Aspen Chamber Resort Association board of directors last week. Peacock defined those fundamentals as financing and demand.
When construction was booming, its impacts were regularly a source of complaint in the community, but builder John Olson, a new member of the ACRA board, in part blamed the local government attitude toward the building industry and a lack of development incentives for the continued slump.
“In November, almost every single fee you could pay for construction in the city and the county almost doubled,” he said. “In terms of the new normal, or what the new normal should be, that's not the way to get there.”
As the local construction industry continues to lag behind pre-recession levels by a significant degree, so does employment in that sector. In 2010, the latest year for which statistics are available, construction accounted for 1,087 jobs in Pitkin County, according to a report compiled for county commissioners. A decade earlier, 1,941 jobs were attributed to construction.
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Construction slump continues in Pitkin County
02-10-2011 07:05 Take a tour of the new executive office building that Great Falls Construction, of Gorham Maine built for Community Concepts Inc. in Lewiston Maine. Todd Rothstein, Project Manager of Great Falls will take you into the building and show you this beautiful property.
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Great Falls Construction Gorham Maine builds the new Community Concepts Office Building - Video
New buildings seem to be popping up all over town. They're physical proof of the strength of the Anchorage economy. New construction, particularly speculative construction, happens when an economy is growing, as ours is.
Let's run through the more significant commercial buildings under construction and then take a quick look back at 40 years of Midtown commercial development.
• The Three Cedars Office Building at 2701 Gambell St. is a twin to the 2700 Gambell Street Building, constructed about 10 years ago. Three Cedars is a speculative Class A office building. It will contain 35,000 square feet on three floors over a heated parking garage on the first floor. Construction is scheduled for completion this spring. The asking lease rate is $3 a square foot.
• The ReMax Dynamic Office Building is under construction on A Street just south of Wal-Mart. This 34,000-square-foot Class A building will have three floors. The building will be occupied by Dynamic Properties and ReMax Properties. Construction is scheduled for completion in November.
• Alaska USA Federal Credit Union is constructing a three-story, 30,000-square-foot building on B Street just north of Tudor Road. The first floor will consist of facilities management and warehouse space. The second and third floors will be Class A office space for Alaska USA's use.
• The new Anchorage Neighborhood Health Clinic is on C Street just north of International Airport Road. This building replaces the clinic's Fairview facility. The project is 43,000 square feet on three floors and will be ready for occupancy in August.
• Scheduled to break ground this spring is a speculative four-story, 84,000-square-foot Class A office building at C Street and International Airport Road, just south of the health clinic's new building. Completion is set for early 2013. The developer is JL Properties, which built several Class A office buildings during the last 10 years on C Street between 36th and 40th avenues.
In addition to these, a number of other commercial developments are under way. They include:
• A new 50,000-square-foot retail store for Alaska Industrial Hardware on the Old Seward Highway, just south of International Airport Road;
• Renovation of The Mall at Sears between Benson and Northern Lights boulevards;
• A 9,000-square-foot office building south of Klatt Road in South Anchorage for the construction services company STG; and
• A new 22,500-square-foot building for Verizon on 40th Avenue between the Old Seward Highway and Denali Street.
The Tikahtnu Commons shopping center continues to announce new stores, and construction continues for small commercial, medical, university and multi-unit residential buildings.
Now for some history. The first significant commercial development in Midtown occurred in 1971 when the Northrim Bank building was built on C Street. This building was constructed by what was then the Sohio Oil Co. for its own use. However, the development that established Midtown as a significant commercial area was construction in 1974 of the first of the two Calais Office Center buildings. They were speculative developments.
In the 1980s came a raft of buildings, including the Frontier Building, which was also a speculative project. A number of corporate headquarters buildings went up: Cook Inlet Regional Corp., First National Bank, Alaska USA and Wells Fargo Bank (actually constructed by its predecessor, National Bank of Alaska). The move by National Bank of Alaska, the state's largest bank at the time, from downtown to Midtown was significant.
In the first decade of this century, we experienced a surge of development with JL Properties projects on C Street. The JL buildings include Arctic Slope Regional Corp., Centerpoint, JL Tower and Centerpoint West.
Developments by Alaska Native corporations and others include 188 West Northern Lights, 2700 Gamble Street and a number of smaller Class A office buildings.
Now at the beginning of the second decade of the 21st century we are seeing continuation of that development. With the new construction this year, Midtown will have expanded 1.5 miles south to International Airport Road.
I wonder what development will occur, and where, during the next 40 years.
Chris Stephens, CCIM, is a local associate broker specializing in commercial and investment real estate. His column appears every month in the Daily News.
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New construction affirms city's economic growth
For a city whose last Fortune 500 company was about to be acquired by an out-of-town corporation, there was not just consolation but actual excitement over one of the deal sweeteners: Chicago-based Exelon Corp. promised to build a new downtown office building for the merged company, the first such construction in Baltimore's central business district since 2004.
The competition was spirited among a handful of developers: They produced architectural renderings of shiny towers and lined up contractors and financing packages. One had a request en route to the mayor proposing a tax break to make his Inner Harbor parcel even more attractive. Meetings, presentations and behind-the-scenes lobbying ensued to land the prize.
But last week, in an earlier-than-expected announcement, Exelon dashed the hopes of many when it announced the winning bid: a waterfront parcel in the Harbor East area, which in recent years has steadily drawn businesses away from the traditional downtown core. Once again, the score was bakery magnate and Harbor East developer John Paterakis Sr.-1, downtown-0.
M.J. "Jay" Brodie, president of the Baltimore Development Corp., was among those caught off-guard when Exelon, which is in the process of a $7.9 billion acquisition of Constellation Energy, announced its decision. The company had said that it would not reveal where it would build in Baltimore until after the deal was completed, and it still needs the approval of the Maryland's Public Service Commission, which meets later this month.
"I was very surprised," said Brodie, longtime head of the city's quasi-public economic development arm. "I wouldn't have guessed the outcome either."
And there were those who were dismayed that Exelon rejected downtown, with its ample office vacancies and empty lots, and headed east to an area that is fast becoming a glitzier alternative to the historic central business district, with firms such as Legg Mason and Morgan Stanley setting up shop there.
Now, those who advocate for downtown say the city needs to reconsider the tax breaks that have favored new developments like Harbor East at the expense of the aging parts of downtown. Despite the upscale nature of the boutique- and restaurant-filled Harbor East, for example, the area remains in an enterprise zone that reduces property taxes for new buildings.
"The challenge is there are many commercial properties paying the highest property taxes, and they are in the older parts of town and they're losing tenants to the newer parts," said J. Kirby Fowler, president of the Downtown Partnership, a nonprofit that looks out for business and residents in the city's central core. "We need to step back and consider how incentives are doled out, and how we can be proactive and find ways to help older buildings in the core."
That the Harbor East area, and Harbor Point specifically, have become so attractive represents a remarkable transformation — and one cheered even by those who would have preferred Exelon to build downtown.
For more than a century, beginning in 1845, what is now the 27-acre Harbor Point was the site of a chrome factory that leached toxic industrial chemicals into the ground and harbor. It took a decade and more than $100 million worth of remediation to contain the cancer-causing chromium within a slurry wall and beneath layers of impenetrable material at the former AlliedSignal plant until the Environmental Protection Agency deemed it safe for redevelopment in 1999.
But for all its environmental damage, the site has long been viewed as perhaps the last, best undeveloped real estate on the harbor, with sweeping water and skyline views.
"Let's be honest: It's a very good development site," said J. Joseph Clarke, of J.J. Clarke Enterprises, whose own bid to build a downtown tower for Exelon lost out to Harbor Point. "It's surrounded on three sides by water. That's a big win for the city. We should all be glad [Exelon] found a home there."
Still, Clarke, who proposed a 25-story office building on the site of the old Southern Hotel at 1 Light St., said he thought his bid hewed closely to what Exelon had requested, particularly since the corporation asked for energy efficiency and other green measures — fittingly, given that the new building will house the company's renewable energy division.
"We were the only site with our own subway stop," Clarke said. "We have 11 bus lines. We thought that was a strong suit."
There was no shortage of downtown suitors, with prime spots such as the former McCormick & Co. site at Light and Conway and the old News American parcel, at 300 E. Pratt, being used as surface parking lots while awaiting development.
Brodie thought the McCormick site in particular was a development waiting to happen.
When Stephen Gorn, president and chief executive of Questar Properties, bought the site of the former spice company plant, Brodie said he wrote him a note saying he had just bought the best unbuilt site downtown and inviting him to a chat whenever he decided what to do with it.
That eventually led to Brodie bringing Gorn's request for a tax subsidy for his proposal — an office building for Exelon, apartments, retail and parking — before the Baltimore Development Corp.'s board. Brodie said the board agreed to recommend to Mayor Stephanie Rawlings-Blake that she approve an incentive.
But before she could act on the BDC recommendation, Exelon made public its decision to go with Harbor Point.
Rawlings-Blake spokesman Ryan O'Doherty said he didn't know whether the mayor had even seen Gorn's request before the Exelon announcement, but said that she believed Harbor East could grow without harming downtown.
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A downtown building not built
A growing need for a skilled workforce of ship builders in Northeast Wisconsin convinced NWTC to create a new marine construction program.
Interest is so high in just the first year, the technical college can hardly keep up with demand.
A welding class at NWTC is full. There's a waiting list of students who want to be right where Amy Rangel is.
Rangel lost her job in Illinois and wound up in Marinette, enrolled in the new marine construction program.
"I never thought I was going to go back to school ever, but as I got older I kind of wanted to do something, and I'm not the office-type of gal," she said.
By summer she'll have her diploma and be ready to work -- with one employer in mind.
"Marinette Marine, hopefully," she said.
The rest of the class has the same goal.
"Work at Marinette Marine," Kevin Henquinette said.
"It's pretty easy to get a job there. If you want one, you basically have one," student Chris Barribeau said.
It's the surge of openings at Marinette Marine and other area ship builders that prompted NWTC to create this program in the first place.
"It's like, 'Hey, I want to get into one of those places, how do I get that employment?' And this is one of the avenues to get there," instructor Dale Lange said.
Employers have long been telling us there are jobs but not the skilled workers to fill them.
Lange thinks this new program helps fill that void.
"There's a lot of emphasis now because this is a future. It's a very much expanding area in our area right now," he said.
Already the school has added more classes and instructors to meet demand.
For those enrolled, the opportunities that come with this new program seem endless.
"To build a ship, really, and to do something I haven't done," Henquinette said.
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Demand is Building for Marine Construction Classes
IAN ALLEN
Scaffold Marlborough has erected 6625 metres, or 31 tonnes, of scaffold around Rangitane House, Blenheim's Post Office building
The Blenheim breeze plays its part when working 25 metres in the air, says Scaffold Marlborough foreman Hamish Sutherland.
Nevertheless, renovations on the Blenheim post office building have been cancelled only once since work started on January 6.
Scaffold Marlborough has erected 6625 metres, or 31 tonnes, of scaffold for Robinson Construction, who are painting the 1970s government building.
The companies have been contracted by the Rangitane iwi, who paid $3 million for the Main St building owned by New Zealand Post last year as part of its Treaty settlement with the Crown.
The building was renamed Rangitane House.
"It gets windy up there," said Mr Sutherland. "But we've only had to stop one day and we could go a lot higher."
Scaffold Marlborough had enough materials to reach 35 metres, he said.
"It's pretty tough roping the gear to the top but it's just like a big Meccano set; nothing to it really," said Mr Sutherland. "You just keep going up and up."
Scaffold Marlborough owner Lyndon Robinson said Rangitane House was their tallest job in Blenheim.
However, Robinson Construction project manager Mark Watson said the job was pretty straightforward.
The job was bigger than it looked because of the scaffolding, which continues inside the building to stop the lower roofs collapsing.
"It's an odd shape. There are two separate buildings that are just two-storeys high beside the main building.
"The scaffolding comes down onto these roofs but with that much weight the roof would collapse so essentially the scaffolding carries on down to the ground on the inside. So although we are only doing the exterior painting, some internal work was needed to ensure the building was structurally sound," he said.
Only the steelwork and frameworks are being painted. The painters are working clockwise around the building and should be finished by June, he said.
- The Marlborough Express
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Paint job will take until June
A rendering of a 46,000 square foot retail/office project in Pasadena. (Courtesy Photo)
PASADENA - M+D Properties is gearing up to begin construction on a three-story retail/office building in Pasadena, a project the company says will create nearly 400 direct and indirect jobs.
A groundbreaking for the mixed-use project, at 61 S. Fair Oaks Ave., is set to take place at 2 p.m. on Wednesday.
It will include about 46,000 square feet of retail and office space and two levels of underground parking space.
"We have some potential tenants, but nothing is confirmed yet," said Boguslaw Megielm, M+D's project manager for the building construction. "We are working with Bloomingdale's, and we have some restaurants as a possibility. We're leaving the interior spaces open for improvements. We're confident that we'll have tenants."
Megielm said the project is expected to be completed by the end of the year so the retailers will be able to take advantage of the holiday shopping season.
"We'll be actively looking for other possibilities in Pasadena," he said.
M+D included an economic report with the project that breaks down the jobs that will be created as a result of the building and its construction.
For the entire development, 397 permanent jobs will be created, according to the study - 218 direct jobs, 63 indirect jobs and 116 induced jobs. This includes the indirect and induced jobs but not the direct jobs from construction, since the development is expected to take less than two years to complete.
M+D
has done other projects throughout Southern California. The Lynwood- based company developed Plaza Mexico, a 450,000- square-foot project in Lynwood that includes retail, food, dining and office space blended together to create a cultural Mecca of shopping, dining and entertainment.
M+D is working on another mixed-use development in Buena Park called The Source.
626-962-8811, Ext. 2701
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Developer M+D Properties to break ground on Pasadena project
La Crosse company Brennan announced plans Wednesday to build a new office building at its French Island headquarters to support its rapidly growing marine construction business.
The 93-year-old family business is actually two companies: Brennan Marine provides harbor services like barge transfer; the larger J.F. Brennan does marine construction, building harbors and dredging channels throughout the eastern United States.
Brennan’s workforce has nearly doubled to about 250 since moving into the field of remediation 10 years ago, said marketing director Glenn Green.
Industrial cleanup now accounts for up to 70 percent of the company’s business, Green said.
Brennan recently secured a 7-year contract with the federal Environmental Protection Agency that will allow it to be one of a select group of bidders on $150 million worth of cleanup in the Great Lakes.
The new three-story, 30,000-square-foot office building will allow Brennan to put about 75 local employees under one roof, eliminate several trailers providing temporary office space and accommodate anticipated growth.
River Architects and Fowler and Hammer, both local companies, are handling the design and construction.
“This will support well-paid union construction jobs,” said Matt Binnsfeld, chief operating officer for J.F. Brennan.
Gov. Scott Walker was on hand Wednesday to celebrate the expansion and promote his job-creation record.
It was the Republican governor’s third visit to the Coulee Region this year. Wisconsin has added fewer than 20,000 jobs since Walker took office — and has lost jobs for the past six months — not the growth needed to deliver on his campaign promise of 250,000 new jobs.
Walker instead focused on job losses in the year before he took office and credited the Republican-controlled Legislature with quick action to bring the ship around.
“We are turning things around,” he said. “We’ve got a ways to go.”
Walker took a brief tour of the company’s service bay, where he inspected a precision GPS-guided dredge like four that are now removing PCB-contaminated soils from the Fox River — a project jointly funded by paper mills there.
Walker cited the fourth-generation family business — and its relationship with employees — as an example of the kind of businesses that could fuel Wisconsin’s growth.
“This is where our progress is,” Walker said. “It’s going to come from businesses like Brennan.”
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Brennan’s business expanding