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Industry News - August 2009

New “CraneFax” List Gets Sponsor, But Public May Not Peek

Also, a historic project labor agreement in New York City could ignite previously stalled projects.

NYC to Share Crane Data With Philadelphia, Chicago

By the end of June, three U.S. cities plan to begin tracking tower cranes working on construction sites, and public officials there hope to expand the list to improve safety on a national level.

“Sharing this information can save lives,” says Robert LiMandri, commissioner of New York City¹s Dept. of Buildings, which has volunteered to maintain a list of cranes operating in New York City, Chicago and Philadelphia. All have agreed to share data. “If there is an issue with a particular tower crane, model, make or practice that is going on, we want to know about it,” adds Tony Sclafani, a DOB spokesman.

The list, gathered from permits, will track the number of active tower cranes, location, crane owner, make, model, model year, maximum planned height, serial number and dates of erection and dismantling. Data will be updated every three months on a confidential spreadsheet that DOB will give the cities.

No database yet exists for what some call a “CarFax” for cranes, referring to the service for used-car buyers. Though less transparent, the program is part of New York City¹s $4-million safety study launched last summer with a subsidiary of Skokie, Ill.-based forensic consultant CTL Group. At top of a list of 41 recommendations was creation of a database of “critical crane parts.”

Since that recommendation was released earlier this year, the idea has drawn mixed reviews across the industry, which LiMandri argues needs more regulation in the wake of crane accidents. “This new pact is a major step toward establishing a standardized system of tracking tower cranes across the country,² he says.

Some argue the list may not improve safety. “Having such data would only be of litigious help after the fact,” remarks Terry McGettigan, a San Diego-based crane technician. “It does nothing meaningful in the way of accident prevention.” Some also criticize the list for being too narrowly focused, unable to track recalls and not readily available to the public.

“Right now, the program is in its infancy stages,” Sclafani says, adding that the data may be made available through freedom-of-information requests.

NYC Firms and Unions Will Cut Costs To Boost Work

In an effort to jump start building projects in New York City and put idle union construction workers back on the job, the leaders of more than 40 different building trades and union employer groups announced on May 29 what they termed a “historic compact” to cut wages of both labor and management and end expensive work rules. Proponents claim the citywide project-labor agreement will cut costs by as much as 21% on the first 12 high-rise and other commercial projects that it covers, representing $2 billion of construction and 10,000 jobs. But some are less enthusiastic about the cost savings, some unions are declining to participate and some developers may have to rethink profit margins in a changed city economy.

The agreement was reached between the Building and Construction Trades Council (BCTC) of Greater New York, which represents 100,000 union workers and the Building Trades Employers’ Association (BTEA), which includes 28 contractor groups and 1,700 union firms. The groups have been negotiating since last October, said Louis J. Coletti, BTEA president. “Contractors would have liked more, unions less, but we’re trying to save jobs in New York City,” he says.

Building trades agreed to no strikes or work stoppages on projects included under the pact, as well as standard workdays and other work rule changes and enforcement. Contractors agreed to cut wages and benefits for management employees, reduce profit margins and strive for “improved project management and efficiency,” among other changes.

Several unions, which were not specified, have also agreed to one-year wage freezes and benefit cuts, according to BTEA. The pact is set to generate project cost reductions averaging 16% to 21%, based on a study conducted for BTEA by Hill International Inc., a Marlton, N.J., project and risk management firm. That figure does not include union wage-freeze cost savings, says the group.

“We have two problems in New York: the financial crisis and creeping nonunionism. This will help both,” said John A. Cavanagh, a former building contractor executive and chairman emeritus of the Contractors’ Association of Greater New York, a BTEA member group. He credited BCTC President Gary LaBarbera, a former teamsters’ union official. “Everyone had to do what they didn’t want to do, especially on the union side.”

The pact won praise from New York Mayor Michael R. Bloomberg (R). “Labor and management are not content merely to wait for a national rebound,” he said on May 29.“Their agreement is an important step to get stalled projects going again.”

But Stephen Spinola, president of the Real Estate Board of New York, said, “It doesn’t go far enough.” He also says savings may be only between 3% and 8%, according to published reports. “We will be talking to our partners to bring costs down further,” he said.

But the pact press release coincided with the May 29 announcement by New York City-based Forest City Ratner Cos. that it plans to resume work on Beekman Tower, a planned 76-story mixed use project halted two months ago at the 37th floor. Reportedly set to be capped at 40 floors, the structure now will be built to its full planned height, says the developer, noting the new labor pact and cost reductions in materials and finishes. Kreisler Borg Florman is project contractor. Others among the first 12 projects that could restart include those being built by Bovis Lend Lease, Turner Construction, Tishman Construction, F.J. Sciame Co. and Plaza Construction. But Coletti acknowledged that not all may restart.

Even so, Coletti thinks the labor agreement is “more the end of the beginning,” noting that trades and employers are still discussing pact details and inclusion of new projects. The AFL-CIO’s Building and Construction Trades Dept. is set to review an additional 12 to 15 projects and the local labor-management committee will review up to nine more in the next week, he said.

Guidelines Introduced for Coney Island Development

A panel of city and Coney Island business leaders say that they are committed to keeping the famed neighborhood “open and affordable” according to a list of seven guidelines outlined by the panelists.

The seven guidelines were recently announced by Robert C. Lieber, Deputy Mayor for Economic Development Corporation, Seth W. Pinsky, President of the New York City Economic Development Corporation and Jim Seay, President of Premier Rides, Inc. for the development of a new 21st century year-round, amusement and entertainment district at Coney Island.

The other six guidelines include leveraging the Coney Island brand and celebrating its history, getting its amusement district right, keeping it accessible and city owned, and insisting that “the time is now” to start building permanent amusements and introducing innovative programming.

“Coney Island is a brand that means so much to so many, and from what I’ve seen and heard here this week, the private sector believes that the city has put together a plan that will build on history and enhance one of America’s treasures,” said Amusement Panel Chair and Premier Rides, Inc. President Jim Seay.

The seven guiding principles followed three days of workshops and discussions focused on branding, marketing, planning, programming and development at Coney Island, and will be used by the city to shape and inform development plans. A final report of the panel’s findings will be released this summer.

The development of the area would create more than 25,000 construction jobs and 6,000 permanent jobs in Coney Island, said Pinsky.

Greener Empire State Building Could Be Model for Retrofits

While the owner of the 2.6-million-sq-ft Empire State Building gears up for a $500-million renovation, designed to cut energy costs by 38% and be a model for other green office-building retrofits, a construction firm that recently moved into its green ESB offices is releasing hard data on the 24,000-sq-ft retrofit. Skanska USA Building, which moved into its 32nd-floor space in November, reports it has reduced its energy bill by 46% over its smaller, previous offices elsewhere.

This fall, Skanska expects to be awarded LEED Platinum status for the retrofit from the U. S. Green Building Council’s Leadership in Energy and Environmental Design rating system. Of the project’s $4.6-million cost, $210,858 is attributed to the cost of a Class A office buildout with LEED improvements, which translates to $189.52 per sq ft, or $8.64 per sq ft more than non-LEED space. The predicted energy savings, coupled with a $22,802 grant from New York state, yields a gain of $368,380 over the course of the 15-year lease, after subtracting the LEED premium, says a spokesman for Skanska.

More than half the LEED points come from indoor environment and energy categories, according to Tri Tan, Skanska’s preconstruction director. Some 90% of the office gets daylight and 99% of employees have outside views. A raised-floor air system has operable diffusers that allow individuals to control workstation temperature. The menu of energy-savers includes automatic light dimmers, waterless urinals, low-flow toilets and hand-sensored faucets.

In April, Skanska’s landlord, Wein & Malkin, announced a retrofit for the 102-story tower, designed under an initiative to demonstrate that green retrofits and operations can reduce energy costs and greenhouse-gas emissions. The initial $20-million project, already under way, is expected to reduce energy use by 38% and energy costs by $4.4 million annually, down from $11.4 million, says the owner. In turn, that would reduce carbon-dioxide emissions by 105,000 metric tons over 15 years. Much of the project is funded through anticipated savings in the cost of energy and operations.

The initiative involves the Empire State Building Co. LLC; the Clinton Climate Initiative; Johnson Controls Inc., which is doing most of the engineering; Jones Lang LaSalle, program manager; and the Rocky Mountain Institute, a nonprofit energy-efficiency group. Projects outlined include replacing the 6,500 windows with insulated, double-paned glass—though the windows are less than 20 years old—and upgrading the building’s infrastructure, which would require tenants to monitor energy use. Most of the first phase of the work is expected to be completed in two years.

This story originally appeared in Engineering News-Record

Aragon Construction Assembles Suites in Midtown

Shorenstein Properties, an owner of office properties around the nation based in San Francisco has tapped Aragon Construction of New York, a contracting and construction management firm, to assemble nine pre-built suites totaling 47,000 sq ft between two of their midtown office buildings.

The majority of the work is being done on floors 10, 16, and 21 at Shorenstein’s 21-story 850 Third Avenue in which Aragon delivered three pre-built suites on floors 10 and 21 consisting of two suites totaling 15,400 sq ft and a 5,200 sq ft office respectively. The five remaining units on the 16th floor will total 23,400 sq ft and vary in size from 3,300 sq ft to 6,900 sq ft.

Each suite will have its own features such as a reception area, an open area for workstations, at least one conference room and a minimum of four private offices. The average unit can accommodate between 15-20 employees and comes complete with an IT room, mail room and pantry. Contemporary fixtures such as glass office fronts, stone flooring in the reception area, cove lighting in the conference room, and modern kitchen cabinetry have already been built and installed by Aragon. And all of the floors are receiving newly designed core bathrooms and elevator lobbies featuring coffered ceilings and carpet inlay with stone borders.

Space is not being customized until leases are signed so as not to exclude any prospective tenants.

“In the current Manhattan marketplace, there is a need for more flexible space and smaller offices that are ready to move into, state-of-the-art professional environments,” said Aragon Executive Vice President, Richard Hartz.

At press time, the completion of the suites was scheduled to be completed in July.

Construction Underway on Claremont Corporate Center

Construction is currently underway at the Claremont Corporate Center, a 46,576-sq-ft, two-story, Class-A office building located at 535 Springfield Avenue, just off Routes 24 and 78 at the corner of Morris and Springfield Avenues in Summit, New Jersey.

The Claremont Corporate Center will be a unique site featuring a highly efficient classic design, which utilizes the existing stone structure of the turn-of-the-century Risk Mansion, family home of the 19th century medical doctor, Dr. William H. Risk, who settled in Summit in 1873. The site will also expand upon the home’s original design to provide all the state-of-the-art amenities that are offered in a modern office building.

Designed by WESKetch Architecture of Millington, New Jersey, Claremont Corporate Center will include a 2-story main entry lobby with a glass curtain wall facade and a 20-ft stonewall. (Rendering courtesy of Beckerman PR)
Designed by WESKetch Architecture of Millington, New Jersey, Claremont Corporate Center will include a 2-story main entry lobby with a glass curtain wall facade and a 20-ft stonewall. (Rendering courtesy of Beckerman PR)

“This property is known as ‘the gateway to Summit’ for its convenient location in downtown Summit, an area that has experienced tremendous growth over the past few years but is under-serviced in terms of Class-A office space. We believe that this facility represents a great opportunity for tenants looking for a high-quality office space that is well-situated in a modern and historic corporate setting,” stated Jeffrey Heller, Executive Vice President of CB Richard Ellis, developer of the project.

Plans for this adaptive re-use office project that is within walking distance to the New Jersey Transit rail at the Summit train station and has access to both Newark Liberty International and Morristown Airports and allows for fast and easy access to New York City include preserving many of the original brownstone and granite characteristics of the existing 19th century Risk Mansion, which will be the epicenter of the new facility, while constructing a new, modern office building on three sides of the mansion with underground parking.

Additional features of the building, designed by WESKetch Architecture of Millington, New Jersey will include a 2-story main entry lobby with a glass curtain wall facade and a 20-ft stonewall featuring the exterior facade of the existing stone structure, new aluminum windows, energy-efficient upgrades ranging from extensive day lighting and interior occupancy sensors to new elevators andexterior lighting, and landscaping. The floors will be made of slate and will include an intimate carpeted seating area featuring contemporary furniture and attractive planting. There will be 98 garage spaces and 40 surface spaces, and the building will utilize safety features such as electronic access control systems at building perimeter doorways, a fire alarm system, and a full sprinkler system.

“The renovation and development of this property has been a long time in the making, as we wanted to preserve the historic charm and unique structure of the original Risk Mansion while delivering a much needed Class-A office environment to tenants,” stated Chris Innes, CEO of Greenock Capital Management, owner of the property.

Claremont Corporate Center is scheduled for delivery to the market in the third quarter of 2009. Executive Vice Presidents Jeffrey Heller and William McCaffrey, will be responsible for leasing this property on behalf of the owner. Claremont Realty Group, a boutique residential Real Estate Agency serving Summit and its surrounding areas, is already scheduled to be the first tenant, occupying the first floor of the historic portion of the building.

First Concrete Laid for 9/11 Memorial Plaza

Construction workers recently began laying the first concrete slab of the plaza at ground zero that will surround two reflecting pools at the 9/11 memorial.

Once completed, the 8-acre memorial will form a tree-filled, cobblestoned plaza that surrounds twin reflecting pools built above the World Trade Center towers’ footprints.

Approximately 170 cubic yards (130 cubic meters) of concrete were poured near the reflecting pool being built over the north tower footprint forming the beginning of the street-level plaza in which the owners of the site hope to have opened by the 10th anniversary of the September 11 terrorist attacks.

This story originally appeared in Engineering News-Record.

NYS AHC and SONYMA Approve Grants

The boards of the New York State Affordable Housing Corporation and the State of New York Mortgage Agency approved $35.8 million in grants and insurance commitments to build and renovate 669 affordable housing units across New York State in order to improve housing stock and help get the economy moving again.

State Senator Pedro Espada Jr. and Chairman of the Senate Standing Committee on Housing, Construction and Community Development, said in a statement, “This new funding underscores the efforts of Governor Paterson and the Senate Majority leadership in addressing the affordable housing crisis in New York City’s five boroughs and throughout the state. While addressing affordable housing needs, these projects will have the dual benefit of creating new jobs for community residents, providing business to local contracting companies, and generating new tax revenue streams for the state and local economies. This further demonstrates the vital role that the for-profit and not-for-profit housing and development industry will play in the state’s economic recovery.”

Projects approved by AHC in New York City include a 71-unit co-op at East 156th Street and Brook Avenue in the Melrose section of the Bronx backed by a $1.775 million grant, the acquisition and rehabilitation of six buildings in Bushwick and Flatbush sections of Brooklyn and in Harlem and Washington Heights in Manhattan backed by a $30.2 million grant, the acquisition and rehabilitation of five buildings in located in Highbridge and Morris Heights sections of the Bronx, Bedford-Stuyvesant and Brownville neighborhoods in Brooklyn, and the East Harlem section of Manhattan backed by a $3.2 million grant, and the building of 66 condominium units along Ely and Bartow Avenues in the Baychester section of the Bronx backed by a $2.145 million grant. All grants have been given to the Housing Partnership Development Corporation.

In Cayuga County, AHC approved a $300,000 grant to Cayuga County Homesite Development Corporation to finance home improvements for 50 homes in the city of Auburn. In Monroe County, AHC approved a $300,000 grant to the Northwest Community Services Community Development Corporation for its Westside Exterior and Safety Repair Program to help finance renovations for 60 single-family homes in Rochester and another $300,000 grant to South Wedge Planning Committee, Inc. to finance home improvements for 65 units also in Rochester.

SONYMA approved a commitment to insure a $14.25 million mortgage for a132-unit rental housing development in the town of Halfmoon in Saratoga County.

International Gem Tower Announced

Extell Development Company of New York City recently launched the International Gem Tower, a 34 story state-of-the-art industry center designed to meet the needs of the gem and jewelry trades.

The 34-story International Gem Tower will be located at 50 West 47th Street and is expected to create over 1,000 permanent and short-term jobs.
The 34-story International Gem Tower will be located at 50 West 47th Street and is expected to create over 1,000 permanent and short-term jobs.

The tower, designed by Chicago based Skidmore Owings & Merrill will be located in New York City’s diamond district at 50 West 47th Street and include a signature crystalline curtain wall and facade of embedded diamond shaped medallions, a rectangular profile with floor to ceiling windows offering 360 degree views, natural light, expansive skylines and highly efficient floor plates.

Considered a unique commercial condominium complete with cutting-edge technology, security and amenity spaces, the International Gem Tower will provide the benefits of ownership and equity to family-run businesses as well as multi-national companies and is expected to create over 1,000 jobs in the short term and numerous permanent long term positions.

“For the first time, New York City’s diamond district will have an international gem and jewelry center on par with other global markets,” stated Gary Barnett, Extell’s founder and president.

The first construction phase of the tower which includes three underground levels that will house gem industry vault operations, utility infrastructure, parking facilities and retail has already begun and is being constructed by Tishman Construction Company of New York City. The first construction phase is expected to be completed by the end of the year with overall construction scheduled for completion in 2011.

Plainfield Energy Plant Project Moves Forward

The Connecticut Laborer’s District Council recently held a press conference about future job creation in Connecticut in light of the recent loan approval for the Plainfield energy plant by the Connecticut Clean Energy Fund allowing the development project to move forward which is projected to employ over 200 Connecticut workers and bring additional tax revenues to state and local entities.

“Connecticut workers, companies and families are depending upon smart, shovel-ready projects like this to reinvigorate our local economy,” said Keith Brothers, business manager, Connecticut Laborers’ Local 547 and president, New London-Norwich Building & Construction Trades Council.

The 30 megawatt wood-fueled power plant will use wood from a variety of sources such as trees, pallets and recycled waste wood while reducing the uses of fossil fuels and producing energy from a sustainable source. It is slated for a 29-acre site in Plainfield, Connecticut and will provide the state with renewable electrical power for over 30,000 homes and create hundreds of new jobs. Connecticut’s Department of Environmental Protection recently cleared the way for construction of the wood-burning power plant which is set to begin this summer.

Plainfield Renewable Energy is a joint venture between Decker Energy International and NuPower LLC, dedicated to developing Connecticut’s leading renewable energy project. Completion of the project is scheduled for summer 2011.

Public Review on Rezoning Carroll Gardens Launched

City Planning Commissioner Amanda M. Burden recently announced the beginning of public review for an 86-block rezoning of the Carroll Gardens and Columbia Street neighborhoods in Brooklyn in response to community and elected official concerns.

Part of Brooklyn Community Board 6, Carroll Gardens and the Columbia Street area are predominantly residential characterized by mainly 3 and 4-story row houses and some mixed-use buildings. The two neighborhoods are currently under the R6 zoning which has been in place for 45 years and sets no height limits. Tower construction on large lots is also permitted. The R6 zoning has resulted in buildings that can reach upwards of 12 stories, a contrast to the area’s historic brownstones creating concern that neighborhood character has been threatened.

“Preserving our neighborhoods means preventing development that is out of scale and out of touch,” said Council Member Bill de Blasio. “Thanks to the hard work of neighborhood activists and Community Board 6, we have begun the process that will ensure that the unique character of Carroll Gardens and Columbia Street will be maintained.”

The proposed rezoning exemplifies the Bloomberg Administration’s planning policies to protect the city’s lower-density neighborhoods and was developed in close consultation with Community Board 6, local community groups and Council Member de Blasio. It has been crafted to preserve the low house character of over 80% of the study area by introducing a contextual zoning district called R6B with height limits of 50 ft and would be mapped on predominately residential east-west side streets as well as the north-south streets of Smith, Hoyt, Bond and Hicks Streets and portions of Henry, Clinton and Columbia Streets.

The proposed rezoning also builds upon City Planning’s Carroll Gardens Narrow Streets Text Amendment which was approved in 2008 and has been designed to match new zoning to preserve established built character by mapping contextual zoning designations called R6A and R7A with height limits of 70 ft and 80 ft respectively along the mixed-use corridors of Court and Columbia Streets and other densely built blocks as well as to promote vibrant, mixed-use corridors on certain local commercial thoroughfares such as Smith, Henry and Hicks Street where commercial uses already exist, but where no commercial zoning is present to permit new or expanding businesses. And, in certain locations where no commercial uses currently exist and where they would be considered inappropriate with existing land use patterns, commercial overlays would be removed.

The community board must now review the proposal, after which it will go to the Borough President, the City Planning Commission and the City Council as part of the city’s Uniform Land Use Review Procedure.

Kingsbridge Armory to be Redeveloped

Plans to turn the Kingsbridge Armory in the Bronx into a $310 million major retail complex are moving forward with hopes of bringing new jobs and shopping opportunities to Bronx residents.

The project will redevelop this historic landmark with approximately 897,860 sq ft of new uses including 377,235 sq ft of both neighborhood and destination retail and restaurant space including a seasonal farmers’ market, 57,485 sq ft ofentertainment uses in the form of a cinema, 33,240 sq ft of fitness club space, and 27,000 sq ft of community facilities. 164,285 sq ft of public parking that will include 437 spaces will also be provided in the armory’s basement levels as well as a new, one acre public open space that will be developed next to the armory building, at the intersection of West Kingsbridge Road and Reservoir Avenue calling for a portion of Reservoir Avenue southwest of the armory building to be removed from the city map.

The redevelopment of the 92-year-old building will create 1,200 permanent jobs and more than 1,000 construction jobs and is part of the city’s Five Borough Economic Opportunity Plan, a comprehensive strategy to bring New York City through the current economic downturn as fast as possible focusing on three major areas including creating jobs for New Yorkers, implementing a long-term vision for growing city’s economy, and building affordable, attractive neighborhoods in every borough.

The new retail complex is expected to be complete and operational in 2013.

First New Jersey Construction Contract Approved

The New Jersey Turnpike Authority recently approved the first construction contract for its biggest widening project.

The $10.4 million contract was awarded to a joint venture that includes A. Servidone Inc. and B. Anthony Construction Corp. of Old Bridge, New Jersey who will construct an embankment, retaining walls, storm water basins and substructures for relocation of the toll plaza at Interchange 8 in East Windsor, Mercer County.

The project marks the first construction work related to the $2.5 billion widening of the Turnpike between interchanges 6 and 9 and will result in the roadway through the area having six northbound lanes and six southbound lanes.

At press time, the construction is set to begin in June with an expected project completion date scheduled for 2014.

 

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