City of El Paso Takes First Step in Purchasing Land for New Environmental Services Facility11/28/2023 ![]() A project that will see the construction of a $25 million environmental services center in El Paso is moving forward with the purchase of the land needed to build the facility. Members of the El Paso City Council have given their approval to a proposal calling for the $8.9 million purchase of a currently vacant 24-acre site on the east side of the city. That site, near the intersection of Joe Battle Boulevard and Pellicano Drive, has been owned for the last three decades by the El Paso-based company Samaniego Joint Venture. The new modern facility will belong to the city's Environmental Services Department, which is tasked with garbage collection and landfill operations, among other services. According to plans, the site for the new building will feature a citizen collection center, fueling center, aggregate stockpile area, and heavy equipment fleet service center with a lube shop and tire shop. The main building on the property will include a gymnasium for city employees. The next step in the project will see inspectors for the city looking over the property sometime between now and mid-January. According to city documents, the site in the past been illegally used for the dumping of trash, construction materials, and tires. Once that review process is completed, a period of 15 days must elapse before the sale is officially finalized. By Garry Boulard
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![]() Preliminary plans are moving forward for the construction of what could be a massive hyperscale data center on currently vacant desert land on the northeast side of El Paso. A corporation based in Delaware that goes by the name of Wurldwide LLC has expressed an interest in purchasing just over 1,000 acres of land for the project. According to reports, the company is willing to spend up to $8.5 million for the property. If the transaction goes through, the company will then launch plans to take on a project said to have a dollar value of around $800 million. The site is more specifically located off Stan Roberts Sr. Avenue, not far from U.S. Route 54. Members of the El Paso City Council have now given their tentative approval to an ordinance allowing for the sale of the property in question. According to city records, an agreement between Wurldwide and the City of El Paso "will make certain real and personal property improvements necessary to establish a data center." As proposed, the ordinance approved by the council is designed to "contribute to creation and growth of a regional information and data value chain, creating opportunities in highly related sectors and technologies." As published in the El Paso Times, Wurldwide, which is likely a cover name for another company, put down a deposit of nearly $337,000 more than a year ago to acquire a temporary right of entry to the property in question. Before a deal between Wurldwide and the City of El Paso can become finalized, a public hearing scheduled for December 4 will be held in council chambers. By Garry Boulard ![]() Final comments have been submitted regarding a proposed Department of Labor rule designed to extend overtime protection to around 3.6 million workers. The proposal, announced last summer, would guarantee overtime pay for salaried workers making less than $1,059 a week, or roughly $55,000 annually. In airing the proposal, Jessica Looman, Labor Department wage and hour division administrator, remarked: “For too long, many low-paid salaried workers have been denied overtime pay, even though they often work long hours and perform much the same work as their hourly counterparts.” Continued Looman: “This proposed rule would ensure that more workers receive extra pay when they work long hours.” The proposed rule, officially called Defining and Delimiting the Exemptions for Executive, Administrative, Professional, Outside Sales, and Computer Employees, would mandate that low-paid salaried workers receive protections traditionally provided by the Labor Department. In the process, the rule would automatically update the salary threshold for such workers every three years in order to reflect current earnings data. The proposal has generated much industry comment and heat. In filing a response, the American Builders and Contractors called the proposal unlawful and one that will ultimately hurt small businesses. “There is no compelling reason for an adjustment to the minimum salary threshold for exemption since it was increased roughly four years ago,” said Ben Brubeck, the vice president of regulatory, labor and state affairs with ABC. Brubeck additionally noted that the nation’s construction industry is currently challenged by “high materials prices, inflationary pressures and workforce shortages.” The new proposed Labor Department, said Brubeck, “will further complicate the current economic outlook.” The proposal has also sparked the opposition of such groups as the Associated General Contractors of America, the American Bankers Association, and the American Road & Transportation Builders Association. At the same time, a group called the National Employment Law Project has pointed to a study suggesting that employers have used false managerial titles as a means to “misclassify millions of workers as overtime exempt who should be receiving overtime.” According to sources, the Labor Department has received in excess of 26,000 comments both for and against the overtime proposal. The agency is now in the process of reviewing those comments before it issues a final determination. By Garry Boulard ![]() In a city with more than 8,000 daily bike commuters, preliminary work is underway regarding the building of new bike path and throughway infrastructure. The City of Denver is currently conducting a public input survey designed to get feedback on where new paths should be built, in what neighborhoods, and the extent and scope of the individual routes. The outreach effort is part of a larger overall 10-year bike infrastructure plan that was last completed in 2015 and is due to be updated in 2025. The survey is being published by the Denver Department of Transportation and Infrastructure and is officially titled Denver Moves: Bikes Update. The survey seeks to gain information on existing barriers to bike transportation and areas of the city that are particularly physically challenging. Denver has engaged in an aggressive and even holistic manner to build out its bike infrastructure, constructing upwards of 150 miles of new bikeways in the last 5 years. Overall, according to the Denver Gazette, the city’s bike network consists of “493 miles of on-street and off-street facilities.” According to city documents, Denver hopes that through a comprehensive bike route infrastructure it will see upwards of 15% of it’s total population riding bikes by the year 2030, up from 6% in 2010. That 15% equates to around 100,000 riders. In so doing, the city has embraced the notion of community transportation networks seeing the building of what are called “low-stress bike projects” connecting various sections of the city, as well as creating bike lane striping and installation efforts. Additional bike infrastructure construction has seen the building of neighborhood bikeways and shared-use paths and trails. One of Denver’s most vigorous bike infrastructure efforts has come through the big $937 million Elevate Denver bond program which was passed In a city with more than 8,000 daily bike commuters, preliminary work is underway regarding the building of new bike path and throughway infrastructure. The City of Denver is currently conducting a public input survey designed to get feedback on where new paths should be built, in what neighborhoods, and the extent and scope of the individual routes. The outreach effort is part of a larger overall 10-year bike infrastructure plan that was last completed in 2015 and is due to be updated in 2025. The survey is being published by the Denver Department of Transportation and Infrastructure and is officially titled Denver Moves: Bikes Update. The survey seeks to gain information on existing barriers to bike transportation and areas of the city that are particularly physically challenging. Denver has engaged in an aggressive and even holistic manner to build out its bike infrastructure, constructing upwards of 150 miles of new bikeways in the last 5 years. Overall, according to the Denver Gazette, the city’s bike network consists of “493 miles of on-street and off-street facilities.” According to city documents, Denver hopes that through a comprehensive bike route infrastructure it will see upwards of 15% of its total in 2017, funding the construction of 50 miles of bikeways. Comments on the new Denver bike survey will be accepted until December 15. By Garry Boulard ![]() Plans are moving forward for the construction next year of a massive medical office and healthcare facility in El Paso. The Hospitals of Providence, which opened its first hospital in the city in 1902, now wants to build a $200 million facility on the far east side of the city. The new hospital and medical office facility will be designed by the Scottsdale-based Devenney Group, which specializes in healthcare building projects. Earlier this year, the hospital group revealed that it had purchased around 30 acres of land off Eastlake Boulevard in order to build new the facilities. At the time of that acquisition, the Hospitals of Providence described the $15 million purchase as a part of a "multi-year journey to meet the growing healthcare needs of Far East El Paso and Horizon City." As earlier detailed, the project will go up on the not-for-profit healthcare group's existing campus which has already seen a 2022 facility expansion. That earlier $20 million effort increased capacity from 108 to 218 beds and saw the construction of a new operating room and triage rooms. One of the largest healthcare systems in the West, and certainly the largest in metro El Paso, the Hospitals of Providence also provides service for residents of southern New Mexico. It has seen significant growth in recent years with the original opening of the East Campus in 2008, its Transmountain Campus in 2017, and a micro hospital in Horizon City, also in 2017. The El Paso operation is part of a much larger national system that belongs to the Renton, Washington-based Providence Health & Services which was founded by the Sisters of Providence in 1859. By Garry Boulard ![]() Heading into the end of the year, architectural firms across the country are seeing a noted decline in new billings, according to a just-released survey. The monthly Architectural Billings Index produced by the American Institute of Architects is showing a 44.3 score for the month of October, part of a longer trend line that first made itself apparent earlier last year. With an overall index below 50 indicating a decline in firm billings, the latest index, put together in conjunction with the Herndon, Virginia-based Deltek software company, shows low numbers in every region of the country. The figures, at 40.0, were lowest in reporting firms located in the West; with the Northeast coming in at 42.1. The South and Midwest were marginally more resilient at 48.5 and 48.9 respectively. The new numbers, said Kermit Baker, chief economist with the AIA, are indicative of not only a "decrease in billings at firms, but also a reduction in the number of clients exploring and committing to new projects, which could potentially impact future billings." Baker additionally noted that the soft conditions were evident not only in every region of the country, but also "across all major nonresidential building sectors." In fact, multifamily residential billings were the lowest among all of the sectors analyzed, at 40.1. Somewhat higher was the commercial/industrial sector at 43.7. The strongest numbers were seen in the institutional sector at 49.1. The industry's overall October 44.3 billings score is indicative of a larger trend that has been reported for much of the year. In October of 2022, the billings score stood at 44.7. Things had only marginally improved this spring when the index came in at 48.0. In updated numbers released earlier this fall, the Bureau of Labor Statistics reported that the average median pay in the architecture industry is now at just under $83,000, with job growth pegged at 5% annually, "faster than the average for all occupations." By Garry Boulard ![]() Plans are now being discussed for the building of a 36-story building that will go up in downtown Colorado Springs on a site directly across from the U.S. Olympic and Paralympic Museum. The project is being advanced by The O'Neill Group, a Colorado Springs development company that specializes in new construction and renovation projects. Working with Vela Development, which has offices in Kansas City, Missouri, the O'Neill Group hopes to build a modern apartment complex that will feature nearly 500 residential units. Besides the Olympic Museum, the general site area is surrounded by government buildings and law offices. The developers originally proposed building the project in 2021, topping it out at 25 floors with 316 units. However, according to a story published by the Colorado Springs Gazette, it was determined that the smaller building would not be financially feasible. The new project still needs city approval and may face some opposition in its public input phase. According to the publication CPR News, many residents in Colorado Springs, "don't want tall downtown structures, preferring the city's classic, almost 'anti-urban' identity." An exact schedule for when work on the 36-story project will begin has not yet been announced. By Garry Boulard ![]() A plan is in the talking stage that could see the construction of 6.5 miles of biking trails in the Santa Fe National Forest, along with rebuilding of up to 12 miles of one-time logging roads. The plan, as aired by the U.S. Forest Service, would be, if made reality, the second phase of a project that has already seen the building of just over 5 miles of trails near the village of Canada de los Alamos, 9 miles to the southeast of Santa Fe. That first phase work, done in conjunction with the Santa Fe Fat Tire Society, also included the upgrading of nearly 3 miles of former logging roads for use as trails and the improvement of just under one mile of user-created trails. The new project will additionally see the upgrading of 7.1 miles of user-created trails, with the former logging roads being made accessible for people with disabilities. Plans for the second phase work, however, have been criticized by some residents of Canada de los Alamos, where the average home price, according to realtor.com, is $819,000, who say the work already completed has proven disruptive, with mountain bike riders dominating the trail space and negatively impacting wildlife. Complaints have also been aired regarding what has been called a lack of public input, with a notice for comment on the second phase folded into the first phase comment period publicized four years ago. An exact date for when the second phase biking trail project will begin has not yet been announced. By Garry Boulard Top Federal Reserve Official Sees End to Interest Rate Increases; Extols Better Banking Environment11/20/2023 ![]() Interest rates, on a wild upward ride for most of the last two years, may soon be leveling off as the economy moves into 2024. “We’re likely at or near the peak of where we need to be in terms of having a sufficiently restrictive stance of monetary policy that will sustainably bring inflation down to 2%,” Michael Barr, the vice chair for supervision at the Federal Reserve, remarked during a podcast hosted by the news service Bloomberg. “I think the recent economic readings reinforce my view that that is probably correct,” Barr added, noting that the danger of having too tight a monetary policy was now being balanced off against the risk of not doing enough to curb price inflation. In separate remarks delivered before the Senate’s Committee on Banking, Housing, and Urban Affairs, Barr, who was appointed to his post by President Biden in 2022, also declared that the nation’s banking system “is sound and resilient.” Stress on the system recorded earlier this spring has receded, continued Barr, “and banking organizations continue to report capital and liquidity ratios above minimum regulatory levels.” At the same time, he noted, “Earnings performance has remained solid and in line with pre-pandemic levels, despite recent pressure on net interest margins.” Described earlier this year by the New York Times as the “man making big banks tremble,” Barr remarked that the failures of the First Republic Bank, Signature Bank, and Silicon Valley Bank in March was likely due to “excessive rate risk in their long-duration assets and an over-reliance on uninsured deposits.” “While the three failed banks were extreme cases, there are other banks that invested heavily in fixed-rate, long-duration assets when long-term interest rates were low,” Barr continued. Those banks have since “recorded sizable declines in the fair value of those assets as interest rates have increased, putting pressure on tangible capital.” Even in the face of such challenges, Barr noted “lending has continued to grow this year,” while adding that loan delinquency rates have remained low as banks have “increased credit loss provisions to mitigate potential future losses.” By Garry Boulard ![]() A fast-growing restaurant industry supplier has announced plans to build an extensive new distribution center in Glendale, Arizona. Based in Addison, Illinois, Parts Town Unlimited provides a wide variety of restaurant equipment parts as well as apparel and uniforms and janitorial supplies to restaurants everywhere nationally. The company, which was founded in 1987, is on track to make enjoy around $2.4 billion in revenue by the end of this year, up from $1.8 billion in 2022. According to the site mdm.com, the company earlier this year launched its own heating and cooling system parts offerings, “adding to a diverse portfolio that already included original equipment manufacturer foodservice equipment parts, residential appliance parts, and consumer electronic parts.” Parts Town’s products are diverse enough to serve every conceivable need in any commercial kitchen: cooking equipment and dishwashing equipment parts, parts for ice machines and beverage equipment, chef hats and shoes, janitorial equipment, and floor mats, among dozens of other items. Now the company wants to build a 420,000 square-foot high-tech distribution center in response to a growing demand for its products. In a statement, Steve Snower, chief executive officer of Parts Town, remarked: “Our organic growth continues to be very strong and has exceeded expectations in 2023. We are investing ahead of expected accelerated growth and product expansion in 2024 and beyond.” The new facility will house the high-tech automation and robotics systems that Parts Town has successfully implemented in its 300,000 square-foot Illinois plant. An emphasis will also be placed on carbon reduction measures within the new facility, as well as LED lighting. Work on the massive new facility is expected to begin no later than early next year, with an anticipated completion date of late 2024. By Garry Boulard |
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