Almost six years after the passage of a bill tackling the heated subject of condo defect litigation, members of the Colorado State Legislature may be ready to tackle the issue yet one more time. In 2017 state lawmakers, after much debate and sometimes spirited public input, passed a bill making it more difficult for condominium owners to pursue multi-million-dollar construction defects lawsuits. The matter, under discussion for several years, was framed by concerns over the rising cost of condominium construction, a direct result of the insurance developers saying they were forced to take owing to an increase in such litigation. A bill subsequently signed into law by then-Governor John Hickenlooper required at least half of the residents of a given condo complex to sign on to any defects litigation action. The measure additionally established a two-year window for condominium owners to inform a developer of any defects. Now, as condominium construction remains somewhat flat in the Centennial State, an effort may be underway to tighten up the requirements for litigation even more. At the same time, reports the Denver Business Journal, a move could well be taken to “bring down the price of construction insurance that continues to reflect fears of litigation.” Late last year the University of Colorado Boulder published a 2023 business outlook survey noting that in the last decade one new condominium unit has been built for every 19 apartments. By Garry Boulard
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The White Sands Missile Range in southern New Mexico is receiving $6.4 million in federal funding for the construction of a new base fire station. The funding is part of a very large $126.1 million secured in the recent Omnibus Appropriations Agreement for fiscal year 2023. Besides the fire station project, WSMR, which is the largest military installation in the country, is receiving another $6.4 million for the building of what is being called the Las Cruces Substation. A smaller $3.6 million is slated for the construction of a missile assembly building at White Sands. Other military bases in New Mexico did equally well in the omnibus legislation, with the Kirtland Air Force Base receiving $11.1 million for the construction of an Air Education and Training Command Pipeline Dorm. Kirtland is additionally receiving $4.7 million for the construction of the headquarters building of the Joint Navigational War Center; along with $2.8 million for a small arms storage facility. Additional Kirtland funding will see $540,000 slated for the base’s Explosive Operations Building. The Cannon Air Force Base, 7 miles to the southwest of Clovis, is getting $8 million for the building of a munitions storage area; along with $4 million for a Security Forces Squad Operations Building. The total Omnibus for 2023 encompasses some $858 billion in defense spending. According to a press release issued from the Senate Committee on Appropriations, the bill also includes “$19 billion in defense spending for military construction and family housing this year, which is $4.1 billion over fiscal year 2022.” By Garry Boulard In the face of a variety of predictions seeing a flat housing market for 2023, the Federal Home Loan Mortgage Corporation announced a decline in mortgage rates. The corporation, otherwise known as Freddie Mac, notes that rates are now “at their lowest level since September of last year, boosting both home buyer demand and home builder sentiment.” Although encouraging, the latest 6.1% rate is still significantly higher than what was recorded exactly a year ago when the number stood at 3.2%. On the other hand, the rate has swiftly declined from a high of around 7.2% in October. The latest declining rates, reports Freddie Mac, should provide a “much-need boost to the housing market, but the supply of homes remains a persistent concern.” The rate for a 15-year mortgage, meanwhile, which is often used for those refinancing their homes, is now down to around 5.2%. The new rate appears to be having an immediate impact: according to the Mortgage Bankers Association, mortgage application volume has seen a 28% increase in the last week. What role the reduced rates will play in the early 2023 housing market remains unclear. According to the real estate listing site Redfin, active listings are currently up around 21%. But home prices remain some 11% higher than where they were a year ago. In a statement, Nadia Evangelou, senior economist with the National Association of Realtors, asserted that the fall in mortgage rates “creates opportunities for many buyers, as a lower mortgage rate brings down the monthly payment.” Evangelou added: “At the same time, data shows that sellers are more willing to negotiate as homes stay on the market longer.” How things play out for the coming months remains uncertain, notes the New York Post. “Higher prices and a doubling of mortgage rates has made homebuying much less affordable for many people,” the publication notes of 2022 trends. But recent rate declines “could give some homebuyers new hope,” the Post adds. By Garry Boulard A block-long site in Denver that is currently the home to both a Wells Fargo Branch office and adjacent park is now on course to see construction of a modern seven-story apartment complex. Located on a 1.4-acre site on Grant Street between East 17th Avenue and East 18th Avenue, the site will be transformed into a project called the Grant Street Apartments. As planned, the new complex will include around 260 apartment units, varying in size from studios to two-bedroom units. Plans additionally call for a fitness center and outdoor swimming pool. Project developer is the Abacus Capital Group of New York, which is being joined by the Raleigh, North Carolina-based planning and design firm Kimley-Horn in making the project a reality. Abacus purchased the property from Wells Fargo last month for a reported $11 million. Plans for the project, whose official address is 1777 N. Grant Street and 1775 N. Grant Street, have now been submitted to the City of Denver. Those plans include the demolition of the Wells Fargo building as well as the nearby Grant Street Plaza Park. The site in what is known as Uptown Denver, just to the east of downtown, is in a neighborhood surrounded by multi-story office buildings and apartment complexes. By Garry Boulard How a subdivision just to the northeast of Scottsdale, Arizona was developed may be one of the principal reasons why the city has decided to cut off its water supply. At the beginning of the year, Scottsdale announced that it would no longer allow the unincorporated community of Rio Verde Foothills to access the city’s water supply. In a message from the City Manager’s office, it was announced that Scottsdale “cannot be responsible for the water needs of a separate community especially given its unlimited and unregulated growth.” Because they don’t have a water reservoir of its own, the roughly 1,000 residents of the Rio Verde Foothills purchased all their water from Scottsdale. Without that supply, residents are now purchasing water, delivered by trucks, from sources farther away. Various sources have suggested that the water issue can be traced to a more than 40-year-old Arizona law requiring subdivisions with half a dozen or more lots to show proof that they have what is officially called a 100-year Assured Water Supply as certified by the Arizona Department of Water. But, notes the publication Business Insider, many developers “skirted around this regulation by splitting large lots into groups of four and five properties, creating the feeling of suburbia without being beholden to these regulations.” In a statement issued by the City of Scottsdale on January 16 it was noted that the city “has warned and advised that it is not responsible for Rio Verde for many years, especially given the requirements of the city’s mandated drought plan.” The statement continues: “The city remains firm in that position, and confident it is on the right side of the law.” In response, the residents of Rio Verde Foothills have filed a lawsuit in the Superior Court of the State of Arizonan for Maricopa County, charging that the “City of Scottsdale has placed plaintiffs and their families under an unconscionable amount of stress and anxiety by discontinuing their domestic water supply.” The lawsuit adds: “The lack of fresh potable water for families to be able to bathe themselves or running water to flush their toilets is a well-known basic necessity.” It is not known when the court will make a ruling on the matter. By Garry Boulard The head of the Federal Communications Commission expects to see increased 5G infrastructure construction soon, while worrying about the risks to privacy if such systems are hacked. Speaking at the Center for Strategic and International Studies, Jessica Rosenworcel said that the ongoing and increased deployment of 5G is not just about phones. “We are talking about using 5G technology to lay the foundation for digital transformation around the globe,” she remarked, adding: “We are fast heading to a world where next-generation wireless networks connect everyone and everything around us.” The FCC chair said such new technology “could have an input in everything we do—improving agriculture, education, healthcare, energy, transportation, and more. The data we derive from all these connections is powerful. It will inform machine learning, artificial intelligence, and the next generation of innovation across the economy.” Detailing a series of initiatives recently undertaken at the FCC to guide 5G’s continued development, Rosenworcel also emphasized what she called the “big security challenges” connected to that growth. “The truth is that 5G networks connecting so much more in our lives will mean a broader attack surface for cyber events.” Working with such agencies s the Department of Homeland Security, the Securities and Exchange Commission, and the Nuclear Regulatory Commission, Rosenworcel said the FCC is tackling the cybersecurity challenge from a variety of angles. “The FCC has long had rules that require carriers to protect the privacy and security of data, under Section 222 of the Communications Act,” she continued. But because those rules are already 15 years old, “We have started a rulemaking to bring them into the modern era.” Rosenworcel said that as part of that process the FCC is seeking “comment on how our obligations can work,” alongside new rules coming out of the Cybersecurity and Infrastructure Security Agency under the Cyber Incident Reporting for Critical Infrastructure Act. By Garry Boulard A one-story building space in downtown Raton, New Mexico that used to house a popular bakery is up for sale for $100,000. Located at 134 N. Second Street, the 3,500 square foot space—part of a block of one and two-story brick structures—was originally erected in 1930. It stands directly across the street from the historic Shuler Theater. Formerly known as the Grace Bakery and Coffee Shop, it was described in the 2007 edition of Fodor’s New Mexico as a place with “fabulous chocolate cake doughnuts and oatmeal raisin cookies, as well as a regular crowd of oldtimers who gather here to keep up with town gossip.” The space, which includes a kitchen and bathrooms, was renovated in 1987. Part of the official Raton Downtown Historic District, the property is being listed by the Raton-based realtors Home Associates, Incorporated. By Garry Boulard Plans are moving forward for the building of El Paso Water’s new 3-story headquarters, a project long in the talking and planning stage that is said to cost up to $47 million. The new structure will nearly double the size of the utility company’s current 40,000 square foot headquarters at 1154 Hawkins Boulevard, which it has occupied for the last 30 years. That building was formerly home to the El Paso Banking Center. El Paso Water officials have previously stated that the structure is too small for current needs, and has some heating and cooling systems issues. As envisioned, the project will see the construction of both a new headquarters building as well as a parking garage. Plans call for a ground-floor lobby, shaded courtyard, and covered pedestrian walkway connecting the building to the garage. The structure will be built next to the current headquarters. If all goes according to schedule, the new building will be completed by late 2024, with plans calling for the demolition of the existing headquarters in the spring of 2025. The company’s offices were formerly located at 320 S. Campbell Street in downtown El Paso, a structure that it subsequently sold. By Garry Boulard A tradition dating to the early 1790s when private laborers began work on such government structures as the White House, is more alive than ever, according to a new survey, as contractors are increasingly looking to the public sector for new projects. The survey, High Hopes for Public Sector Funding Amid Workforce and Supply Chain Challenges, was conducted by the Associated General Contractors of America, and reveals bullish expectations among contractors for public sector work in 2023. According to the survey, some 42% of contractor respondents said they expect to see more bridge/highway and general transportation work this year; followed by 38% who are anticipating more water and sewer project work. Respondents also expect to see increased utility power, hospital, and schoolwork in the coming year. At the same time, just under a quarter of the respondents forecast less work in both the private office and retail segments. Contractors also, according to an analysis accompanying the survey, anticipate taking on projects for the General Services Administration, Department of Veterans Affairs, U.S. Army Corps of Engineers, and the Naval Facilities Engineering Systems Command. Although it appears a given that many new projects will be coming out of last year’s Infrastructure Investment and Jobs Act, the survey reveals that only 5% of respondents have so far worked on a new project funded by the law. “The fact that so few firms have benefitted from the infrastructure measure may be the result of the significant regulatory obstacles the administration has imposed that are creating confusion among state and local officials,” contends the analysis. “In particular, the administration has fumbled the implementation of new Buy America regulations, leading to widespread confusion about which building materials are covered by the new measure and which are not,” the analysis adds. Exactly 58% of the firms participating in the AGC survey report performing $50 million or less in work last year; followed by 34% who undertook between $50 million and $500 million in projects. Roughly 8% performed over $500 million in work during the year. By Garry Boulard An 81-room hotel in Bullhead City, Arizona, with a tangential connection to a legendary Las Vegas casino builder, is scheduled to go to auction next month with a minimum bid of $1.3 million. The extended stay Sun Valley Suites hotel is located at 336 Lee Avenue and was built in 1978. The property sits on just over 2.3 acres, several blocks from the banks of the Colorado River. Designated as a Class B building, the two-story hotel, comprising nearly 34,000 square feet, was extensively renovated in 2019. The hotel was formerly known as the Nevada Club Inn, and as such was part of a handful of hotels owned by businessman Del Webb, who got his start in the casino industry as a contractor for the notorious Bugsy Siegel. Webb developed the Sahara hotel and casino in Las Vegas, as well as the Nevada Club hotel in Laughlin, Nevada, and the Bullhead City Nevada Club Inn, which for years was advertised as being in the “Heart of Old Bullhead.” The coming auction, which will be held between February 13 and 16, is being held by CRBE’s Phoenix office. By Garry Boulard |
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