A move to continue the redevelopment of the former site of the Las Cruces Country Club is underway as Las Cruces inches closer to creating a new tax distract to facilitate construction there. Members of the Las Cruces City Council have now approved a resolution declaring an intention to form what is being called the Royal Crossing Tax Increment Development District. That district will make it possible for the building of new infrastructure at the former golf course site to be largely paid for out of property and gross receipts tax revenue. The move, which is subject to public comment until August 10, with a public hearing scheduled on the matter one week later, is regarded as the next step in giving a new definition to the golf course on the property at 2700 N. Main Street. The country club at the site closed down in 2011, with work on a 30-acre medical campus beginning in 2018. Omaha, Nebraska-based development company LC Nova has proposed new uses for the larger site, including the building of new retail space. A portion of the site is additionally within a federally designated Opportunity Zone, meaning that new construction or development there could be eligible for preferential tax treatment. By Garry Boulard
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The effects of the COVID-19 shutdown have taken their toll not only on business conditions in general, but attitudes about business conditions, says the latest edition of the Federal Reserve System’s Beige Book. The publication, which looks at the most current economic trends across a dozen Federal Reserve Districts, notes that economic activity in nearly all of those districts has been on the upside since early spring. But, says the publication, that activity remains “well below where it was prior to the COVID-19 pandemic.” Noting that spending in the consumer goods, food and beverages, vehicle sales, and home improvement sectors was generally up in the last three months, the Beige Book also records that a demand for “professional and business services increased in most Districts, but was still weak.” The publication adds: “Transportation activity rose overall on higher truck and air cargo volumes” while “construction remained subdued, but picked up in some Districts.” Appraising the Kansas City District, which includes Colorado and northern New Mexico, the Beige Book remarks that even though sources interviewed in the district “expected additional gains in the months ahead,” real estate was in decline, while “the energy and agricultural sectors remained a drag on the regional economy.” The Dallas District, taking in all of Texas and southern New Mexico, saw the same downward trend in oil and gas production, as “drilling activity fell to new lows and loan demand contracted further.” At the same time, manufacturing and service sector activity in the Dallas district saw an increase, although interviewees in the District also indicated that “the upward trend in new COVID-19 cases has increased uncertainty.” In the San Francisco District, which includes all of Arizona, employment levels have slightly increased, as have the sale of retail goods. “Residential construction activity picked up somewhat, while the commercial side was mixed,” adds the report. Although economic conditions nationally were generally improved in early summer over early spring, a return to a pre-COVID-19 employment picture may for the short term prove problematic. “Contacts in nearly every District noted difficulty in bringing back workers because of health and safety concerns, childcare needs, and generous unemployment insurance benefits.” Continued the publication: “Businesses who have kept their doors open and maintained staffing levels due to the support of the Paycheck Protection Program said that in going forward “the strength of demand would determine whether they can avoid layoffs.” By Garry Boulard A section of Denver known for its historic mansions and low rental vacancy rates may soon see the construction of a new apartment complex. The Atlanta-based Gables Residential, which has offices in Denver, has announced plans to build an eight-story apartment complex on a one-acre site in the Capitol Hill neighborhood. The project will more specifically go up at the intersection of E. Eighth Avenue and Sherman Street, on a block surrounded by offices and apartments. To be designed by Davis Partnership Architects of Denver, the complex will feature just under two hundred units of varying sizes, common space, and both above- and below-ground parking. Gables Residential has already developed half a dozen similar projects in the metro Denver area. The company’s projects typically include swimming pools, sundecks, lounges, extensive lobby space, and fitness centers. An exact construction schedule for the new complex has not yet been announced. One of the oldest and, for decades, most elite neighborhoods in Denver, Capitol Hill was initially defined by the existence of the gold-domed Colorado State Capitol, which was completed in 1901. The surrounding neighborhood experienced a first significant wave of residential construction in the 1920s, with rental property construction following in the immediate decades after World War II. In the last decade or so, many of those properties have been re-purposed into higher-end apartment complexes where units are currently listed at just over $1,600 a month. By Garry Boulard The city of Mesa may soon see the construction of a long-planned and much talked-about auto mall. The mall, a series of car dealerships, is set for the southeast side of the Mesa and has been embraced by city leaders due to the simple fact that such businesses generate substantial local sales tax revenue. The site in question measures 89 acres and is bordered by the intersection of Williams Field and Signal Butte roads on the north side of the site, and Arizona State Route 24 to the south. Work on the building of Route 24, otherwise known as the Gateway Freeway, is scheduled to begin this fall and has been regarded as an important component in the subsequent development of the auto mall. Members of the Mesa City Council have now given their approval to a rezoning of the site from residential to general commercial in order to get the project underway. The project belongs to Mesa-based developer Signal Butte 24, and is part of a larger 251-acre planned area development. According to city documents, the site will first require extensive infrastructure work, including the building of storm drains, sidewalks, gutters, curbs, and street lights, before the first dealership property is built, most likely still several years from now. Research has shown that auto malls, or the clustering together of several auto dealerships in one defined area, creates a shopping destination for buyers that helps not only the dealerships themselves, but such related businesses as body shops and car washes. The dealerships typically comprise large parking lots, with an average building size of around 21,000 square feet, including interior show rooms, body shop and parts departments, and garage and office space. By Garry Boulard The White House has announced the rollback of a handful of environmental laws that President Trump has characterized as the “single biggest obstacle” to the building of new construction projects. The President’s directive is designed to shorten environmental review processes that some construction industry officials have said can take years to complete, adding, in the process, to the cost of a given project. Those reviews apply specifically to projects proposed on federal lands, which usually means projects pertaining to bridge, highway, and pipeline work. The new policy will shrink what can be a four and a half year process to no more than two years. At the same time, as announced by the President, the rollback will do away with climate change considerations as part of a project’s review procedure. The President earlier said that construction industry leaders had told him that the federal environmental review process under the National Environmental Policy Act had become too cumbersome for companies to navigate. Many of those leaders also said they had little opportunity to be a part of the environmental impact review process, claiming that decisions halting a project were sometimes arrived at arbitrarily. In announcing the rollback, Trump said it was evidence of his administration’s “fierce commitment to slashing the web of needless bureaucracy that is holding back our citizens.” The President added: “I’ve been wanting to do this from day one.” Streamlining the review process has won the support of such industry groups as the Associated General Contractors of America. But the move has also been opposed by an array of environmental and conservation groups. In a statement, the Center for Biological Diversity said the President’s policy “drastically curtails environmental reviews for thousands of federal agency projects nationwide, a move that will weaken safeguard for air, water, wildlife and public lands.” By Garry Boulard Plans are well underway for the construction of a 199-unit multi-family complex that will go up at Albuquerque’s sprawling Winrock Town Center. What is being called the Pine Needle apartment complex is being developed by the Goodman Realty Group of Albuquerque and will include units ranging in size from 500 to 1,000 square feet. Work on the $45 million, 146,000 square foot project is expected to begin in the fall of this year with an anticipated completion date of sometime next summer. Slated for 3.3 acres at the intersection of Indian School Road NE and Pennsylvania Street NE, the four-story complex is just the latest project undertaken by Goodman Realty at the larger 83-acre Town Center site. The company purchased the Winrock site thirteen years ago with the idea of transforming the old shopping center into a mixed-used development with an emphasis on energy and water conservation building features. The original $10 million Winrock Shopping Center, the first large modern shopping center of its kind in New Mexico, was opened in March of 1961. By the late 1990s the center was in decline and suffering from both a loss of tenants and traffic. Goodman Realty’s eventual purchase of the property has led to its steady revival with the construction of new restaurant, retail, and office space across the site. By Garry Boulard A Phoenix-based real estate investment firm has announced plans to build an industrial park on just over 80 acres some 5 miles to the southwest of the city’s Sky Harbor International Airport. The site, located off the intersection of W. Elwood Street and 7th Avenue, is currently vacant. Merit Partners, Inc., which specializes in the development, operations, and leasing of industrial and office properties, says it wants to build seven buildings that will be classified as Class A and will, together, have a footprint of around 900,000 square feet. The planned Merit Sky Harbor Industrial Park is going up on one of the last large chunks of infill land that has remained undeveloped in the vicinity of the airport. The sale of the land was brokered by the real estate firm of Cushman & Wakefield. In a statement, Andy Markham, executive managing director of the firm, described the transaction as particularly important given the recent COVID-19 economics. “We just aren’t aware of any other major investment land deals since the pandemic,” said Markham. Merit’s projects are all on the big size and include the 125-acre Tolleson Corporate Park and the 185-acre Buckeye Industrial Park, both in metro Phoenix. By Garry Boulard Fewer road, bridge, and school construction projects are expected to be authorized in the next fiscal year as states across the country try to balance their budgets in the wake of the COVID-19 economic shutdown. According to a new study compiled by the National Association of State Budget Officers, state leaders have been forced to not only adjust their 2021 fiscal budgets downward, but are continuing to grapple with a host of uncertainties clouding budget forecasts well into next year. The study, State Fiscal Outlook: Pre & Post Covid-19, notes that in trying to get a handle on how long the pandemic lasts, some states have decided to put forward temporary budgets for the coming year. Other states that enacted spending plans before the effects of COVID-19 expect to convene special sessions in the weeks ahead in order to “adjust those spending plans in response to revenue declines.” In anticipating a future loss of revenue, some governors have directed agencies within their states to reduce their own budgets by as much as 15 or 20 percent. But those cuts also present new challenges, says the NASBO study: “Cuts at those levels would be devastating to essential services, at a time when demand for such service is on the rise due to the public health crisis and economic downturn.” Noting that many states endured drastic revenue declines during the Great Recession with the help of support from Washington, the NASBO study continues: “Additional federal aid to states will be necessary to avoid more drastic and painful cuts to essential services that will hurt state residents and significantly dampen the nation’s economic recovery.” The NASBO study parallels a survey released in late June by the National League of Cities showing that some 65 percent of the municipalities were planning to cancel road, bridge, building and water systems. Some of the city leaders surveyed in the NLC study said the projects were canceled on a temporary basis, with the hope that a weakened COVID-19 later this year will lead to a return to economic activity and increased revenues. By Garry Boulard A new apartment complex with 84 units is slated to be built on 4th Street NW in a part of the city once regarded as neglected. The project, as proposed by Albuquerque developer Michael Dreskin, will go up on a currently vacant site at 2828 4th Street in a North Valley neighborhood of mostly one-story stores and businesses. Decades ago, the site was the home to Gardner’s Furniture Store, which, besides furniture, also sold home appliances and gardening equipment. The new four-story building, as designed by the Albuquerque-based Scott Anderson and Associates Architects, will house apartments ranging in size from 700 to 1100 square feet. The complex will additionally feature some 6,000 square feet of commercial space on its ground floor. Developer Dreskin has a track record in the North Valley and earlier this year revealed his Cascade Crossing apartments at 3308 4th Street NW. That complex features 52 units measuring anywhere from 600 to 1,200 square feet. One of the oldest sections of the city, the North Valley has a population of around 11,300 residents. With a large swath of its land still classified as rural, the North Valley in the last decade has seen increased infill development in its commercial and industrial neighborhoods. By Garry Boulard Work could begin next year on the adaptive reuse of a 10-story office building that was originally built in 1962 in Denver’s Golden Triangle Creative District. The Denver-based Nicholas Partnership, which specializes in urban real estate development, has announced plans to transform the more than 100,000 square foot structure into an apartment building that will house just under two hundred residential units measuring in size from 300 to 425 square feet. The building at 1200 Lincoln Street, in a teeming neighborhood of modern high-rises, was originally built for the Western Farm Bureau Life Insurance Company and also served as the office address for a large number of government agencies and private companies. It eventually became the home to the Art Institute of Colorado, a for-profit art and culinary school that closed its doors for financial reasons in 2018. The building was purchased nearly a year later by the Nicholas Partnership. Plans, which have now been submitted to the City of Denver by the company, call for an entire interior re-do of the building, creating what has been described as micro-apartments. Nicholas Partnership previously transformed the former circular 13-story Hotel VQ at 1975 Mile High Stadium Circle into the Turntable Studios, a property with 179 similarly-sized micro-apartments. By Garry Boulard |
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