Biden Administration officials are set to appear before a number of different Congressional committees in the immediate weeks to come to argue in favor of increased funding for highway, transit, and airport construction and upgrade projects. The Congressional pitch comes as the federal Department of Transportation announces that just under $70 billion is expected to be available in funding for fiscal year 2023, up from last year’s $52.5 billion. In a statement, Pete Buttigieg, Transportation Secretary, said the funding is designed to “make traveling safer, easier, cleaner, and more affordable for the American people.” The Secretary added: “From roads, tunnels and bridges to airport and port improvements, electric vehicle chargers, safe bike lanes and more, we are building a first-rate transportation system for all Americans.” Biden, meanwhile, has asked that overall transportation funding be increased by 2% in the next fiscal year in order to meet the goals of the big Infrastructure Investment and Jobs Act approved late last year by Congress. During recent appropriation cycles, supplemental spending has increased for any number of highway, transit, and airport capital construction projects at or above earlier authorized funding levels. Additional funding is expected to target the upgrading of more than 15,000 small bridge projects, redesigning main streets in rural areas, and building a network of around half a million electronic vehicle charging stations in the next 7 years. Congressional members will also be asked to approve up to $4 billion for the National Infrastructure Investments grants program which is designed to support multiple-mode transportation projects. Legislative negotiators hope to put together a spending bill well in advance of the official beginning of the 2023 fiscal year, which starts on October 1. By Garry Boulard
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A Colorado semiconductor manufacturer is receiving support for a project that may end up seeing it building a new facility in Colorado Springs. The support is coming in the form of around $12.4 million in incentives approved by the Colorado Economic Development Commission. The company in question at this point has not been publicly revealed and is only referred to as Project Salsa. But according to reports the company already has a plant in El Paso County and wants to build somewhere near that facility. The company, characterized as a “prime semiconductor manufacturing company,” is said to be looking at other sites in Arizona, Oregon, and Virginia for what could prove to be a more than $1.5 billion project. While the development commission has not disclosed the name of the company, the Denver Gazette has suggested that it may be Microchip Technology, which several months ago said it planned to upgrade its Colorado Springs facility. Based in Chandler, Arizona, Microchip Technology specializes in the production of analog and microcontroller semiconductors. The company in January said it was prepared to spend upwards of $10 million building a new facility. It is not yet known when the company in question will make a final determination regarding whether or not it wants to build in Colorado. Created by the state legislature, the Colorado Economic Development Commission is tasked with crafting incentive packages designed to help both existing companies expand and encouraging out of state businesses to relocate to Colorado. By Garry Boulard What to do with the site of one of the most famous and popular shopping malls in the southwest is still being debated in Phoenix as city officials ponder a redevelopment project that could cost as much as $750 million. Located at 9617 N. Metro Parkway, the Metrocenter Mall was opened in 1973 and for decades served as a vibrant shopping center featuring around one hundred individual stores, as well as a movie theater with 12 screens. The mall began to experience increased vacancies in the 1990s, especially after the opening of other nearby equally large shopping centers. Although much of the mall was renovated and updated in subsequent years, it was finally completely closed in mid-2020. Now the City of Phoenix, working with Concord Wilshire Capital, which has offices in Miami, is going over plans that will see a three-phase development of the site involving the building of around 2,600 multifamily units as well as up to 100,000 square feet of retail space, essentially turning the site into a walking village. Additional plans call for the creation of an amphitheater, walking and bike trails, and dog-friendly parks. With Concord Wilshire currently in the process of purchasing additional land, the total redevelopment site will measure around 80 acres and will see the beginning of the demolition process this fall. If all goes well, construction of the project’s first phase will launch early next year, with an initial completion date set for the final quarter of 2024. According to reports, the next two phases of the project will be undertaken and completed no later than 2029. By Garry Boulard New home construction is reaching levels not seen in nearly 16 years, according to a report just issued from the Census Bureau. That report shows that overall housing starts were up by 0.3% last month at a seasonally adjusted rate over February. But more importantly, the rate had increased by 3.9% compared with March of 2021. That rate is the highest seen in the industry since 2006. While construction in the single-family market was off just under 2% for the month and a substantial 4.4% over last March, multi-family projects of five or more units saw a vibrant increase of 7.5% over February of this year. The increase in multi-family projects over March of 2021 entered the stratosphere with a 28% jump. A sign of continued growth was seen in the increase in multi-family permits, showing an 11% jump since February, and year over year growth of 34%. Indicating a much more challenging picture, permits for single-family projects were down by 4.8% since February, and 3.9% when compared with March of 2021. Looking at the market for new home construction, Jerry Konter, chairman of the National Association of Home Builders, remarked that “higher mortgage interest rates and rising construction costs are pricing buyers out of the market, and these higher costs are particularly hurting entry-level and first-time buyers.” In a statement, Konter continued: “Policymakers must address building supply chain disruptions to help builders bring down construction costs and increase production to meet market demand.” By Garry Boulard Plans are in the making for the construction of a just over 265,000 square foot distribution center that will go on the east side of Colorado Springs. Colorado-based Triumph Capital Group purchased the land for the project for $4.2 million. Slated to go up on just under 18 acres of land near the intersection of N. Powers Boulevard and E. Platte Avenue, the development will be designed to cater to a multi-tenant clientele. Triumph Capital specializes in industrial warehouses and prime logistics space across the country, enjoying a particularly strong presence in the Midwest and South. The company advertises itself as developing such facilities in “urban infill and emerging regional distribution locations.” Colorado Springs in recent years has been enjoying a boom in warehouse and distribution center construction and acquisition projects. These are facilities, according to the Colorado Springs Gazette, used by construction companies needing to store materials, and retailers who sell online and “want space to house merchandise until it’s shipped.” Reports indicate that developers in the next several years may spur up to 1.2 million square feet of industrial space construction on the east side of the city. Work could begin on the Triumph Capital’s new Colorado Springs facility later this year, with a rough completion date of late next summer. By Garry Boulard The task of closing and capping tens of thousands of abandoned mines in Arizona may soon take a significant step forward with legislation providing up to $1.1 million to fund the effort. That appropriation is part of Senate Bill 1717 as sponsored by Senator David Gowan. If passed the funding in the bill will pay for both additional staff in the Mine Inspector’s Office as well as equipment needed to close the mines. The mines exist throughout the Grand Canyon State, with many first dug around 140 years ago when miners tried to unearth gold, silver, copper, quartz, and other minerals. Once emptied of their treasures, the mines were most often abandoned, as well as the town in which they existed. According to author Herbert Young in his book Ghosts of Cleopatra Hill, the fortunes and fate of the town of Jerome is illustrative of the role mining played in some of Arizona’s smaller locations. In the span of around 50 years Jerome went from a tent city to a thriving mining camp of nearly 5,000 people to a town of less than 500 people once the mining came to an end. Still-existing mine caves pose dangers, according to the Bureau of Land Management, because they could contain radioactive gas and toxic chemicals, and are always at risk of collapsing. Other dangers are seen by the fact that some of the entrances to the mines may be overgrown with vegetation, causing unwary visitors walking on such sites to fall into the shafts. Gowan’s legislation has passed both the full Senate as well as the House Appropriations Committee. It is now awaiting approval in the full House. By Garry Boulard Some 268 cities, continuing a post-pandemic recovery, saw an increase in construction employment in the last twelve months, according to a new survey put together by the Associated General Contractors of America. Looking at comparative figures between March of 2021 and this most recent March, the study saw double digit job gains in any number of localities across the country. The largest top ten metro area increases give evidence of a multi-regional trend with five of those cities based in the Midwest, two in New England, two in the South, and one in the West. A big gainer, with a 42% jump in jobs, was Cheyenne, Wyoming; Albuquerque saw a 14% increase over March of 2021; and Santa Fe and Fort Collins was up by 10% and 7% respectively. In terms of just the raw numbers, the Houston metro area was up by 9,300 jobs; followed by St. Louis with 6,300 new jobs; and metro Los Angeles, up by 6,000 jobs. Metro areas posting construction job losses were also not confined to any one region, with the most severe decreases of anywhere from 4% to 17% seen in New England, the Midwest, South, and West. In a statement, Ken Simonson, chief economist with the AGC, remarked, “It is heartening to see construction employment come back from the depths of pandemic-induced job losses in most areas.” But Simonson added that “the skyrocketing number of job openings shows the industry needs far more workers than are available in most parts of the country.” Altogether, more than 19,000 new construction jobs were created in March. By Garry Boulard A long-standing theater in downtown Longmont that has provided live shows for decades is up for sale with a listed price of $2 million. Located at 224 Main Street, the one-story structure is the home to the Jesters Dinner Theater and includes a spacious stage, theater area with a capacity of 100 seats, fully equipped kitchen, and rear loading dock. Listed with Sellstate Park Realty, also of Longmont, the 6,000 square foot building is easily recognizable due to its pitched roof, one of a very few buildings in the downtown area so designed. The Jesters Dinner Theater has long hosted the Front Deranged Improv Comedy Troupe, with the word “deranged” referencing Longmont’s Front Range location. The theater has been a regional fan favorite due to its Broadway musical presentations, children’s theater, and performing arts education. The Denver Post has recently characterized the theater as a Longmont “cultural mainstay.” Built in 1910 and substantially renovated about 20 years ago, the structure sits on a less than half-acre site and is classified as a Class B building. By Garry Boulard A plan to build a canal in northeastern Colorado has taken a step forward with enabling legislation signed by the Governor. But not the Governor of Colorado. Pete Ricketts is the governor of Nebraska, and the bill he has signed into law will divert water out of the South Platte River, which flows from the Cornhusker state southward to Colorado. “Water is our most important natural resource after our people,” remarked Ricketts in approving the legislation, adding, “We need to continue to manage, protect, and steward it here in our state.” Officials in both states have offered varying interpretations regarding the rights of who can build what in the region. Rickets and other Nebraska leaders say an agreement entered by both states and subsequently ratified by Congress in 1923 has always allowed for Nebraska to build a canal from the South Platte River into their state. Colorado officials say substantially changed conditions since 1923, including the unprecedented growth of the Front Range of the state, should be given more consideration. Earlier this year, Colorado Governor Jared Polis signaled that he wanted to work with Nebraska on the matter but emphasized that he would “protect and aggressively assert Colorado’s rights under all existing water compacts.” It is thought that it will cost upwards of $500 million to build the canal in question. The Nebraska legislature has so far allocated around $53.5 million for the work, with reports indicating that lawmakers will secure more funding once and if the estimated 10-year project is underway. By Garry Boulard Members of the National Labor Relations Board may soon be tasked with deciding when and under what circumstances employers in a meeting environment can express their views on union organizing. In a memorandum, Jennifer Abruzzo, NLRB general counsel, is contending that such meetings are a violation of the National Labor Relations Act and should be banned. “This license to coerce is an anomaly in labor law, inconsistent with the Act’s protection of employees’ free choice,” Abruzzo said, adding that the NLRB’s previous toleration of such meetings is “at odds with fundamental labor law principles, our statutory language, and our Congressional mandate.” Union organizers have long regarded such meetings, during which employers often marshal their arguments again unionization, as a means of employee intimidation, characterizing those encounters as “captive audience” meetings. Depending upon the circumstances, those meetings may require the attendance of employees. According to the publication Business Insider, “workers can be disciplined or discharged if they don’t show up” at such meetings or leave early. In a statement, Sean Redmon, vice president for labor policy with the U.S. Chamber of Commerce, said the National Labor Relations Act includes a provision stating that “the expressing of any views, argument, or opinion” does not constitute an unfair labor practice. Redmon additionally notes that the provision has several times been reaffirmed in various court challenges. Should the NLRB agree to ban employers’ meetings, added Redmon, “One can expect that the court will have to address the question yet again.” It is not known when the NLRB will act on Abruzzo’s memorandum. By Garry Boulard |
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