The protracted but finally concluded struggle to elect a new Speaker of the House may be a precursor to a coming battle over whether to raise the nation’s debt ceiling. California Congressman Kevin McCarthy secured the Speakership in the new 118th Congress on January 7, after a historic 15 ballots. Although McCarthy has defined himself as a fiscal conservative, he has been less adamant on questions related to the debt ceiling. As officially defined by the Treasury Department, the debt ceiling is the total amount of money that the federal government is authorized to borrow to meet its existing obligations. Those obligations include Medicare and Society Security benefits, as well as military salaries and interest on the national debt. For years, various members of Congress have been trying to increase the debt ceiling in order to fund such obligations, while others have adamantly opposed any increases as being fiscally irresponsible. In the new Congress, some members have suggested that they may utilize debt ceiling concerns as a bargaining tool with President Biden in order to reduce overall federal spending. McCarthy, notes The Hill newspaper, could be particularly vulnerable to debt ceiling demands due to last minute concessions he may have made with Republican holdouts who finally agreed to support him. “The looming effort to increase the debt ceiling will likely be the ultimate test of the coming year for the California Republican,” asserts the publication, “and will prove consequential in answering how long his tenure will last.” According to the Washington Times, a spokesperson for McCarthy asserted that the Speaker will “not agree to a debt limit increase absent a discretionary budgetary agreement in line with a House-passed budget resolution or other commensurate fiscal reforms to reduce and cap the growth of spending.” But in a signal of a coming battle, White House press secretary Karine Jean-Pierre told reporters several hours after McCarthy won the Speakership battle that the President would make no concession on the debt ceiling. “Attempts to exploit the debt ceiling as leverage will not work,” she remarked. The issue is expected to come to a head most likely by late summer as members of Congress contemplate raising the debt ceiling in order to prevent defaulting on the $31 trillion national debt. By Garry Boulard
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Plans are being reviewed in Tempe for the construction of a six-story multifamily project that will go up on a 3.4-acre site near the southeast corner of Rio Salado Parkway and McClintock Drive. As proposed by the Fore Development company, which has offices in Phoenix, the building will house 343 residential units varying in size from studios to three bedrooms. According to city documents, the complex will also feature just over 1,800 square feet of office space with live-work units, a fitness center, clubhouse, swimming pool and pool deck, and a roof terrace measuring just over 2,800 square feet. To be called the Rio & McClintock, the project will additionally include above- and below-ground parking for around 520 vehicles, as well as parking space for just under 350 bikes. Fore Development specializes in residential development and so far has spearheaded projects in more than 100 residential communities in some 17 states. The company is perhaps most known in Tempe for the building of Skye at McClintock Station, a four-story mixed-use project along the city’s light rail corridor featuring 423 residential units and commercial space. By Garry Boulard Kaiser Permanente Set to Build New Colorado Facilities, Upgrading Those Already in Existence1/6/2023 Construction could begin roughly one year from now on a series of modern medical facilities in central and south Colorado that will belong to the big managed care consortium Kaiser Permanente. The Oakland, California-based company, which operates around 40 hospitals and some 700 medical offices across the country, plans to build a one-story, 22,500-square foot medical office at the intersection of Hess Road and Parker Road in the town of Parker, 25 miles to the southeast of Denver. The new Parker facility will include office space, exam rooms, and clinics, among other features. A second project is slated for the city of Pueblo. As planned, a new one-story Kaiser Permanente structure will measure around 15,0000-square feet, and is slated to go up on space already owned by the company at 3670 Parker Boulevard. The new Pueblo facility will house primary care space, a pharmacy, laboratory, and imaging services. Additional upcoming Kaiser Permanente projects in Colorado include renovations to existing medical offices in Boulder, Lafayette, Lakewood, Lone Tree, and Westminster. In a statement, Mike Ramseier, president of Kaiser Permanente Colorado, noted that the company has been “laser-focused on providing the best health care, access, and affordability, and it’s paying off.” Altogether, it is expected that the company will spend around $100 million on new and upgraded facility projects in Colorado in the next several years. Kaiser Permanente Colorado is the largest healthcare provider in the Centennial State, with around 540,000 members. By Garry Boulard A long-standing, but often hotly debated, environmental rule designed to protect the nation’s waterways has been given new life by the Biden Administration. What is known as the “Waters of the United States,” or the Clean Water Rule, was originally designed to provide federal protection for streams and wetlands. But the rule, as issued by the Environmental Protection Agency and U.S. Army Corps of Engineers in 2015, has been at the center of a kind of political ping-pong: the Obama Administration promoted its enforcement, while the Trump Administration sought to have it rescinded. In September of 2019 WOTUS was officially repealed, with Trump subsequently announcing a replacement to the rule the following spring. That replacement decreased the federal protection of certain streams and wetlands, while also doing away with the requirement that landowners must secure the approval of the EPA before taking on any construction projects near water bodies on their own property. Now the Biden Administration has issued a new WOTUS ruling which expands the definition of waterways and wetlands. In a joint announcement with the Army Corps of Engineers, Michael Regan, EPA Administrator, said an effort is underway to “deliver a durable definition of WOTUS that safeguards our nation’s waters, strengthens economic opportunity, and protects people’s health while providing greater certainty for farmers, ranchers, and landowners.” The new ruling has won the praise of such groups as Earthjustice, which issued a statement calling it a “victory for clean wetlands, rivers, streams, and drinking water in the United States.” But other groups have expressed disappointment with the Biden Administration’s decision. The American Farm Bureau Federation is calling the ruling a “giant step in the wrong direction,” and contending that it will give to the government “sweeping authority over private lands and will require teams of lawyers and consultants for common and necessary farming activities.” While the new ruling is set to take effect at the end of February, the matter may not end there: the Supreme Court is currently reviewing the EPA’s jurisdiction under the Clean Water Act, making it possible that yet a new WOTUS definition will eventually be determined. By Garry Boulard A former motel built when the southeast Arizona town of Sierra Vista was primarily an Army post with a population of less than 3,000 people is set to go to auction later this month. The two-story Sierra Vista Casitas is located at 2201 W. Fry Boulevard and features 69 units. Built in 1957, the complex underwent a $400,000 renovation some two years ago and sits on a 1.7-acre site in what is known as the town’s general business district. The complex, which was formerly a Budget Inn & Suites motel, features an outdoor swimming pool, covered patio, lounge, fitness room and business center. Listed by the Marana, Arizona-based Pinnacle Realty and Investment Advisors, the property is scheduled for a two-day auction beginning on January 23, with a minimum starting bid set at $1.6 million. By Garry Boulard In a historic decision, members of the El Paso City Council have voted against building a big arena in a downtown neighborhood, in favor of it being put up somewhere else. In a close 4 to 3 vote, the council decided to scrap the project, which was set to become reality in the more than 100 year-old Duranguito neighborhood, noting the community opposition and legal expenses the proposal has sparked since first being aired in the fall of 2016. The Multi-Purpose Cultural and Performing Arts Center, with an original price tag of $180 million, was one of many projects to be funded out of a $473 million Quality of Life bond passed by voters in 2012. But protests were lodged when city officials announced that the project would go up in Duranguito, which is located on the south side of downtown El Paso and contains a series of houses and buildings dating to the 1870s. Challenges to the project were subsequently heard in both state and district courts, costing the City of El Paso an estimated $3.3 million in legal fees. The council vote came after members learned of the results of an online survey indicating that 89% of respondents said they were fine with the area being built in Duranguito if the historic structures in the area were preserved. A new feasibility study conducted by the M. Arthur Gensler & Associates of San Francisco, suggested that a dozen Duranguito structures would be saved as part of an updated and amended plan to build an arena that would include both indoor and outdoor seating. But opponents maintained that the arena should simply be built elsewhere in the city. “Who defines quality of life?” Rafael Garcia, pastor of the Sacred Heart Church, asked the council members, before adding: “Who’s included and who’s excluded? It’s usually a small minority that ends up gaining and the people who end up losing.” Leonard Goodman III, chairman of the 2012 Quality of Life bond issue effort, suggested that abandoning the project would have a negative impact when it comes to future bond proposals to be decided by city voters. Council members may soon take up the question of finding a new downtown site for the arena. By Garry Boulard There are around 3.3 million less people working today than in the month before the Covid-19 outbreak in early 2020, according to a new study undertaken by the U.S. Chamber of Commerce. But why are so many still sitting on the sidelines when employers, particularly in construction, are looking for help? According to the Chamber study, some 28% of unemployed workers said they have been ill, and the condition of their health has taken precedence over looking for work. At the same time, 27% of respondents said the “need to be home and care for children or other family members,” has made it impossible to return to work. Additional factors have seen concerns about contracting Covid 19 in the workplace, along with others who say the pay for the jobs they are interested in is too low. According to the Chamber’s America Works Data Center, respondents also indicated that they were earning more collecting unemployment benefits than they did while working. The country’s workforce has also been gutted by the more than 3 million Baby Boomers opting for early retirements during the pandemic. The number of people who voluntarily decided to quit their jobs also saw an increase in the last two years, climbing from around 3.1 million in late 2020 to an all-time high of 4.5 million by early 2022. That figure, while still high, has since decreased to around 4.1 million. Altogether, there are 73 workers for every 100 open jobs in the U.S. Arizona, Colorado, and New Mexico have seen 81, 65, and 68 workers respectively for every 100 open jobs. While both Arizona and New Mexico, as well as most other states, have today a smaller labor participation force compared with where things stood before the pandemic, Colorado is one of only five states to have experienced a higher labor participation rate. By Garry Boulard A move to secure up to $1 million in funding for the construction of a new United Way service facility in Pueblo, Colorado could be decided just over two weeks from now. The United Way of Pueblo County wants to build what it is calling a “central hub” that will be designed to provide office and meeting space to other area non-profits providing an array of services for county residents. Many of those non-profits have reported significant demands for help and assistance since the Covid-19 outbreak. What is being called the Nonprofit Leadership, Empowerment and Development Center is expected to cost around $1.7 million to build. The proposed two-story structure will measure around 10,000 square feet. A site for the center has not yet been determined. If approved, the $1 million would be drawn from federal American Rescue Plan Act funding earlier granted to Pueblo. As of late last year, Pueblo had received just under $37 million in ARPA funding for a variety of community and health-related projects. The Pueblo City Council is expected to vote on the $1 million request during its upcoming January 27 meeting. By Garry Boulard Construction could begin in Las Cruces later this year on two new apartment complexes designed to respond to the city’s growing need for more affordable housing. Members of the Las Cruces City Council have given their approval to committing a potential $7 million in city funds for the two projects which will add 368 units to the city’s apartment stock. The first project, called the Peachtree Canyon Apartments, is expected to cost around $29 million to build and will go up at 7081 North Jornada Road. The project, which will ultimately make up 6 residential buildings and one community building, will see a two-phase construction schedule with 144 units being built in each phase. The Pedrena Senior Apartments comprises the second planned project and will see the construction of 80 apartments at 801 Farney Lane. Altogether, the project will comprise three residential buildings. It is expected that it will cost about $26 million to complete the Pedrena apartments. Apartments in both complexes would be rent-restricted, allowing landlords to establish target rents for those with the lowest incomes. The projects come as rents in Las Cruces continue to rise. Three years ago, the average rent for a one-bedroom unit in New Mexico’s second largest city was around $800. Now, according to the site Rentcafe.com, that figure is just below $1100. By Garry Boulard After several years of national growth, warehouse construction is slated to see a decline in the next twelve months, according to several industry sources. The sector enjoyed unprecedented growth throughout most of the Covid 19 pandemic as such online retailers as Amazon embarked upon new warehouse and fulfillment center projects to store and sort goods ordered by customers. In its recently published 2023 outlook, the commercial real estate broker CRBE is forecasting an overall decline of 10% to 15% in the industrial and logistics sector, which includes warehouses. San Francisco-based Prologis Incorporated, the largest owner in the world of logistics warehouses, last month said it is anticipating a significant 60% decline in development starts. Overall, warehouse development starts could drop to less than 175 million square feet this year, down from 419 million square feet in 2021 and 470 million square feet last year. The decline in such starts, in fact, is expected to drop to its lowest point since 2016 when it stood at 178 million square feet. Meanwhile, warehouse demand in Mexico, says the publication Freightwaves, is “expected to hit an all-time record” in 2023. Deliveries of new warehouse facilities will “be absorbed quickly because Mexico’s industrial vacancy rates sits at an all-time low 1.4%.” By Garry Boulard |
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