![]() Treasury Department rules relating to a program that could see a substantial commercial investment in economically troubled communities across the country are expected to give a clearer definition of that program’s parameters. The Opportunity Zone program was revealed late last year as part of the Tax Cuts and Jobs Act of 2017 passed by Congress. The concept behind the program centers on preferential tax treatments for new investments in areas defined as economically distressed, pinpointing in particular neighborhoods where businesses have closed up and moved out, leaving in their wake abandoned buildings and empty lots. Such areas have to be first nominated by the states in which they exist, with those nominations subsequently certified by the Treasury Department. To date, the governors of every state have designated a variety of areas as potential Opportunity Zones, with just under 8,800 winning final approval in Washington. Treasury Secretary Steven Mnuchin has since predicted that the creation and approval of the zones could lead to up to $100 billion in new capital investments. The new Treasury Department rules will govern both the establishment and operation of special funds to be used as part of the program, as well as the tax breaks for capital gains that will be available. One of the rules will require that 70 percent of any given company’s property has to be used within the defined zone. Another rule in the program is stipulating that any company or business operating within an Opportunity Zone will have up to 31 months to use the capital provided from what is called an Opportunity Fund. In a statement, Mnuchin predicted that the establishment of the Opportunity Zones will “foster economic revitalization and promote sustainable economic growth.” A second, more detailed, set of rules related to the program is expected to be announced sometime in December. By Garry Boulard
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![]() Some 42 residential units are expected to soon see construction in downtown Albuquerque in the wake of a vote by members of the Albuquerque City Council approving the project. The units, as part of a larger planned village, will go up at 1215 Third Street NW near the St. Martin’s Hospitality Center, and will include one-bedroom apartments built for Americans with Disabilities Act compliance. Each unit will also feature Universal Design Features. Those units will be built on the main structure’s second and third floors, over a ground level floor housing offices and space for behavioral health and case management services. The building will also include a central front lobby, maintenance room, and upper level laundry areas. The project, to be developed by HopeWorks and YES Housing, Incorporated, is expected to cost around $9 million to build, with funding coming from a variety of sources, including the National Housing Trust Fund, and the federal Department of Housing and Urban Development. The project is also receiving $1.3 million from the New Mexico Housing Trust Fund, as well as a combined $4 million from both the City of Albuquerque and Bernalillo County. What is being called the Hopeworks Village will be specifically geared for homeless individuals contending with behavioral health issues. Mullen Heller Architecture of Albuquerque is spearheading the design for the project. By Garry Boulard ![]() In a surprise move, Colorado Governor John Hickenlooper has announced that he is contemplating calling a special session of the state legislature if voters approve a controversial ballot measure known as Proposition 112. That proposition would prohibit the drilling of any new oil and gas wells within 2,500 feet of a residence, occupied building, or water source. The current distance mandated by Colorado law is 500 feet. While supporters of the idea, including most prominently a group called Colorado Rising, have argued that the health risks to individuals and communities require a greater buffer zone, industry officials and various political figures have come out against the proposition. Both the Democrat and Republican candidates for governor, Walker Stapleton and Jared Polis, have also expressed their opposition to the proposal, as have various business groups. The Colorado Oil and Gas Conservation Commission has additionally forecast that if Proposition 112 passes, it would prohibit new production in around 94 percent of the state’s most productive oil and gas counties. But at the same time, other studies have suggested that upwards of 42 percent of non-federal subsurface area in Colorado would still be available for drilling if voters approve Proposition 112. In perhaps a sign of industry anxiety regarding Proposition 112, a record 7,300 new applications for drilling projects have gone before the Colorado Oil and Gas Conservation Commission in recent weeks, the largest wave of new applications in a decade. Hickenlooper has suggested that passage of Proposition 112 could lead to an economic recession. The Governor said he would want to talk to both the pro and anti-proposition By Garry Boulard ![]() Posting an 8.7 percent gain from September of 2017 to September of this year, multi-family construction continues to lead the way in new home building, accounting for a total of $64.2 billion in new project work. That 8.7 percent figure represents the largest monthly gain in multi-family building since September of 2010. Those numbers, compiled by the National Association of Home Builders using U.S. Census Construction Spending data, represent a fragment of what continues to be a healthy home building market heading into late 2018. According to the NAHB figures, overall residential construction saw a 0.6 percent gain in September, an upward trend after a decline of 0.4 percent in August. A lower increase was seen in the remodeling segment, which increased by 0.1 percent. Despite the presence of a continuing strong market, the NAHB says that the industry remains challenged by the same lack of workers that is affecting other building trades, the amount of available land, and construction equipment and supply volatility. Overall construction spending, according to the NAHB, has been on the upswing, with a few minor variations, since 2010. The upward trend line has shown the most growth in multi-family construction, followed by single-family work. Less volatile has been the improvement market, which has remained somewhat steady throughout both the recession and post-recession years. By Garry Boulard ![]() Sharing a building with nearby cities, the Town of Gilbert has long wanted to have its own centralized location for the training of new police officers and firefighters. Now the town, which has seen its population jump from 208,000 just 6 years ago to more than 242,000 today, has announced plans to build a modern, all-inclusive $84 million training facility. That structure will go up on a currently vacant swath of desert land on the northwest corner of S. Power Road and E. Old Pecos Road. Whether the project actually becomes reality will depend on local voters approving a $65.3 million bond to build the new facility. The remaining $20 million or so for the project is coming from the sale of town-owned land previously designated for the facility. As planned, the new training facility would measure around 158,000 square feet and will include classrooms, administrative offices, and a fitness center. Adjacent to the structure will be a K-9 training area, shooting range, driving tracks, and 5-story apartment tower to be used for firefighter response training. Gilbert officials have said that if the bond is passed, design work will begin on the new project almost immediately, with construction expected to launch by next spring. By Garry Boulard ![]() In a section of southern Fort Collin, where new subdivisions and houses seem to be going up everywhere, officials with the Thompson School District are wondering how to respond to a corresponding uptick in enrollment. The district now has more than 16,300 students, but could well see a double-digit growth in the next decade if current population projections are on target. In response, the district, with 33 individual schools, is asking voters on November 6 to approve a $149 million bond designed to pay for a series of facility heating and cooling updates, as well as exterior building improvements According to the pro-bond group Vote Yes for Thompson Schools, the facility upgrade issues, if not addressed, will soon “compromise the learning environment of our students.” The district’s growth challenge is particularly seen in the proposed construction of a new K-8 elementary school, as well as additions to two existing elementary schools in the town of Berthoud. That town has seen more than 1,500 people move inside its borders in the last four years, for a total current population of around 6,400. Although the growth issues have been widely discussed in the district, officials are nevertheless worried about the election prospects for the bond. In 2016, district residents rejected a larger $288 million bond for school upgrades in a 56 to 44 percent vote. By Garry Boulard ![]() New jobs in the construction industry nationally were up by more than 30,000 during the month of October, a record statistic matched by an overall yearly gain since October of 2017 of 315,000 workers. These are the latest numbers compiled by the Associated General Contractors of America, which also show that the industry’s unemployment rate has dropped to 3.6 percent. Total national construction employment is now at just over 7.3 million—and that’s a jump of 4.7 percent since last fall. One of the hotspots, according to the AGC statistics, is in residential construction, which has seen a 5.3 percent employment growth, for a total of 143,500 new jobs. Additional increases were posted in heavy and civil engineering construction, with slightly lower growth rate of 5.3 percent, for a total of 187,200 new jobs. The overall unemployment rate for the construction industry as of last month is now at 3.6 percent, a record low. Last year at this time it stood at 4.5 percent. Additional information provided by the AGC reveals industry optimism heading into 2019, with between 74 and 79 percent of company respondents nationally saying they expect to hire more qualified workers in the coming year. And, according to the survey, the larger the company, the more likely it will be hiring. Some 79 percent of firms netting between $10 and $50 million a year expect to bring on more workers next year; 80 percent of firms making between $50 and $500 million will add workers; while a very large 87 percent of firms in the $500 million range and above have announced plans to increase hiring. By Garry Boulard ![]() Pushing advanced programming centered on energy workforce training, Santa Fe Community College may be upgrading and modernizing its energy efficiency training facilities to the tune of $5 million. That is, if New Mexico voters on November 6 pass the General Obligation Bond D, which will provide just over $136 million in funding for a wide array of higher education facility projects across the state. The $5 million work on the airy and always-expanding campus of Santa Fe Community College will particularly target the school’s unique microgrid course offerings. The school is a part of the Microgrid Systems Laboratory consortium, which centers on grid modernization instruction with a goal of reducing what has been called an “energy poverty” in emerging economics. The MSL collaboration has resulted in the creation of the Building Energy Automation and Microgrid Training Center on the school’s campus, an effort that last year secured around $251,000 in funding from the U.S. Economic Development Administration. That center is designed to build microgrid energy distribution systems, as well as supplying the energy needs of SFCC’s green house complex, which houses the school’s environmental agriculture program. SFCC has additionally received the financial backing of the Buffalo Grove, Illinois-based Siemens Industry, one of the largest producers of energy-efficient technologies in the world. Funding from Bond D will also pay for upgrades to the cooling towers on campus, as well as the planned installation of clear-energy sources. In 2011, SFCC saw the completion of its $12 million, 45,300 square foot Trades and Advanced Technology Center designed to offer classes in photovoltaics, biofuels, and energy and building efficiency. By Garry Boulard ![]() Sam Rodriguez has a quick take on what’s wrong with the northeast El Paso site of the Cohen Stadium. “It’s a site that has just been sitting there and underperforming from a public asset perspective,” says Rodriguez, who is El Paso’s city engineer and director of the Capital Improvement Department. “So the idea is to redevelop that, and make it a contributing portion of our city,” continues Rodriguez. That may seem like an incredibly simple perspective on what will be a multi-layered, phased redevelopment of one of the most publicly identifiable properties in El Paso. But Rodriguez’s overview, if all works out, is one that city leaders and residents across El Paso would agree with. The Cohen Stadium, built in 1990 and one-time home of the Diablos minor league baseball team, has in recent years been the home to various festivals and fairs, but has also often stood vacant. In response, El Paso city officials for the most part of the last two years have been working on a plan to dramatically transform a more than 50-acre site, turning it into a thriving hub of retail, recreation, and entertainment options, with public plaza, hotel, and office space. The office factor could well include shared work space, while the retail component may see, as a community component, room for small businesses and stores. In a document presented to the El Paso City Council called Cohen Entertainment District, the vision for the site also emphasized “integrated circulation for walking, bicycling, [and] jogging throughout the property,” with streets and defined parking areas. “We just finished the master plan and are in the process of completing the design standards,” reports Rodriguez of the project. “The city has already funded about $12 million towards the improvement of the site to kick off the development by approving the funding for a new water park that is going to be built by the city and operated by the city as part of the development,” he continues. The water park will be paid for out of both the big Quality of Life Bond passed by El Paso voters in 2012, as well as the city’s 2017 Capital Improvement Plan. According to plans, work on the water park will begin in March of next year, with a completion date set for the summer 2020. But the water park component also serves another purpose: it will show to the people of El Paso and the surrounding region that the Cohen redevelopment will be focused on recreational themes. “Residents made it very clear—we don’t need more residential,” El Paso City Representative Sam Morgan remarked, as the latest redevelopment plans were presented in late August to the City Council. “We need something that is family-oriented, and is more of a destination type event,” continued Morgan, whose District 4 includes the Cohen site. But before the scope of the full development could be realized, city officials and project participants realized that they had to address the question of what to do with the Cohen Stadium itself. “Do we keep the stadium or not?” Eugenio Mesta asked during a community input meeting earlier this year. “It was a long and hard debate on whether we keep it,” continued Mesta, whose El Paso architecture firm Exigo was tasked with putting together a preliminary design plan for how the Cohen site could be redeveloped. Ultimately, the design team opted for a site without the stadium. In May, the El Paso City Council approved around $3.4 million for the demolition of the structure. “We really didn’t see how it could continue to serve a purpose for the community,” explains Rodriguez, additionally noting the existence of the new $72 million Southwest University Park baseball stadium in downtown El Paso, which opened in the spring of 2014. Additional funding for the project will be coming through the creation of a tax increment reinvestment zone, which will allow for tax revenues from within the boundaries of that district to be plowed back into basic infrastructure for the site redevelopment. But ultimately, the ambitious and imaginative Cohen project will only become a reality through a combination of both private and public funding. “This is a trend you are seeing nationwide where it just makes sense to combine public amenities with the private sector to ensure that our communities get the biggest benefit of the development itself,” says Rodriguez. How much the total redevelopment of the Cohen site will eventually cost remains open to question. Estimates have pegged the big project at anywhere from $200 to $300 million in combined private and public funding. “We’ve done some estimates regarding the public part, but haven’t released those numbers yet because we need to do more studies on that,” says Rodriguez. By Garry Boulard ![]() Arizona could see a new era of wind and solar energy construction depending upon the results of a controversial statewide proposition to be decided on by voters on November 6. Proposition 127, if passed, would require a certain percentage of renewable resources as part of the overall grid for electric companies in the state. That percentage would start out at 12 percent in 2020, and gradually increase to 50 percent by 2030. As defined by the ballot language, the renewable energy component would also include geothermal, biomass, and some kinds of hydro power. A bill passed by the Arizona State Legislature earlier this year empowers the Arizona Corporation Commission with enforcing the percentage requirements of the proposition if it is passed. A group called NextGen Climate Action, a national organization concerned with climate change issues, is one of the main supporters of the proposition. That group is funded by well-known billionaire hedge fund manager and environmentalist Tom Steyer. A different group called Arizonans for Affordable Electricity is being funded by the Pinnacle West Capital Corporation, parent company to the state’s largest public utility, the Arizona Public Service Company, and has come out in opposition to the proposition. By Garry Boulard |
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