Tag Archives: Mortenson Construction

IO President Anthony Wanger.

Tech-friendly scene makes Arizona a data center hot spot

Phoenix has its head in the clouds.

Digital information—everything from financial and medical accounts to media entertainment and social networks—is now being stored in about 60 high-tech data centers throughout the Phoenix metro area, adding to the state’s growing reputation in the technology industry.

Renewable energy, geo-stability and tech-friendly legislation are a few of the reasons why Arizona has one of the highest concentrations of data centers in the United States, second only to Virginia.

Chris Camacho, president and CEO of the Greater Phoenix Economic Council, says one of the reasons Phoenix has seen a significant level of data center activity is power availability and competitive pricing.   

“We have very affordable power costs,” Camacho says. “Our utilities have been very flexible in supporting this industry to ensure we have dual feeds from the electrical standpoint. Having affordable power rates has been critical. The other attributes that are important to this industry as to why we have been successful are the level of infrastructure, that’s generally fiber infrastructure, and latency. We’re very favorable to the West Coast in that regard.  So our communities, as well as Cox, Century Link and others, have done a great job extending infrastructure to support this industry.”

Demand for renewable energy

As data centers continue to propagate, the demand for power increases.

A recent survey by Mortenson Construction, one of the leading data center contractors in the U.S., reported 84 percent of responding data center executives, developers and operators believe there is a need to consider renewable energy. Energy efficiency is a top concern and nearly half the survey participants believe improved technology can increase energy efficiency.

“Technology companies like Apple, eBay, Amazon and Google, all of the organizations that store massive amounts of information, tend to have leaders who are highly environmentally conscious,” explains Steven G. Zylstra, president and CEO of the Arizona Technology Council,  “They would much prefer to use renewable energy to power these data centers rather than power coming from a coal-burning plant. It’s less about the economics and more about doing the right thing.”

IO president Anthony Wanger agrees. IO, one of the largest colocation data centers in North America, has created and patented energy efficient data storage modules and operating software. In 2013, APS evaluated IO’s Power Usage Effectiveness ratings and determined the modules were more efficient than the traditional raised-floor data center environment.

In February, IO announced an agreement the company made with APS to be able to offer renewable energy to its customers.   

“We had a break through,” Wanger said. “We were able to negotiate a rate with APS that allows us to buy renewable energy. We were able to get a rate that reflects the scale of our use, and the option for our customers to simply choose to go green. For about a cent and a half more per kilowatt hour they can buy energy that is 100 percent renewable. It’s solar and wind. We have had terrific customer feedback about it.

“It’s important for us,” Wanger continues. “We want to be leaders in dematerialization and we want to be leaders in giving our customers the tools and the choices they need to manage their energy needs. Our very largest customer, Goldman Sachs, is committed to zero carbon.

“We have taken great strides in moving our energy over to renewables. I’m not going to tell 1,000 customers what they have to do,” he explains, adding that if he puts it on the menu and incentivizes it, he believes they will choose it. “We are committed to renewables, we are leaders in energy efficiency, by putting it out there, it’s going to be a needle mover.”

Making it happen

IO began with three businessmen and a foldup table from Costco, Wanger said. The table, signed by the co-founders Wanger, George Slessman and William Slessman, is somewhere in the Phoenix facility as a reminder of how they began.

“I always liked to build things. I have always been fascinated by buildings and real estate and systems and machines,” says Wanger, who comes from several generations of entrepreneurs. “I was brought up in the ‘you make your job, you don’t get a job’ mentality. Sit down. Figure it out. Make it happen. That’s the only thing that works for me.

“We’ve been really fortunate we have a really solid business with terrific institutional backers and terrific institutional customers. We’ve been able to attract some terrific talent. The way we got here is people. When I say make it happen, it isn’t just the three of us, it’s the entire team.

“Make it happen. That really is the moral of our whole story here. These data centers didn’t build themselves. These folks didn’t employ themselves. The capital didn’t raise itself. The customers didn’t identify and sign themselves. This is hard work.

He suggests that in order for Arizona to continue growing its reputation in the technology arena, it, too, will take hard work.

“If Arizona wants to continue its fantastic growth it’s going to be because it chooses to, not because it happens automatically. I feel very positive about Phoenix and Arizona’s prospects, but I think we have to be careful not to take things for granted,” Wanger says. “It’s a very competitive economy. I think we would be well advised to be purposeful in our recruiting and the way in which we create a climate where risk takers can take risks.”

Trending

Wanger and his partners at IO, which now has six locations around the globe, were among some of the early risk takers in the data center industry.

“We grew up with the GoDaddy guys. If you go back 10 or 15 years ago, they were in data centers. We were in data centers. There was another guy in data centers and that’s about it,” Wanger says.

According to a market overview analysis by CBRE, today there are about 60 data centers in the Phoenix metro area, including colocation operations and those used by individual companies. An additional 21 greenfield sites have been identified mostly in the East Valley for build-to-suit data centers.

Even with the explosion of data centers in Phoenix, Wanger says he is seeing a trend toward consolidation.

“We are moving away from square footage to more power in less space with shared highly utilized banks of computers,” he says. “I think that the Internet went from 400 markets globally to 200 to 50 markets. I think it’s on its way to being in 12 markets globally. That’s mega consolidation. We are doing everything we can do in our power to make sure Phoenix is on the winner side of that equation.”

Tech magnet

Energy affordability, access and renewable options are sited as reasons for locating power-intensive data centers in Phoenix, but there are more.

Geo-stability is an important factor when deciding a data center’s location. Arizona is free of natural disasters, making it an appealing locale.

“We don’t have hurricanes, or earthquakes or tornadoes or floods or any of those things that jeopardize a data center. We are a very sound place from that standpoint,” Zylstra says.

Moderately priced real estate with relatively low property taxes and legislative incentives sweeten the pot.

“A lot of economic policies in the legislature have supported both enterprise use and colocation centers,” Camacho says. “More recently there was legislation in the last few years that provided a sales tax exemption on server and IT equipment. That was one of the last pieces of the puzzle of being a great market in terms of allowing this market to grow and making it competitive against California and these other states.”

According to CBRE, “The financial impact of this law to a 1 MW tenant’s bottom line could be as much as $6 million to $7 million in tax credit savings over a 10-year period.”

Camacho continues, “There are tax credits available for companies of a certain investment scale, so, in a certain investment threshold, when they meet that level of capital investment, they are eligible, assuming they are going to use significant renewable energy resources, to obtain a corporate income tax credit.”

(subhead)The future

Locating data centers here is often an introductory step for some of the larger companies to test the business waters and learn about the Phoenix area.

“We’ve spent a lot of time working to support colocation operations in the market that are already here,” Camacho says. “And we are working as diligently as we can as we travel outside this market and showcase Arizona marketplace to prospective users. We’ll showcase IO data centers and Digital Realty Trust and others that are in this region with the goal of inducing these tenants to come and utilize colocation space and drive new investment and job creation at the same time.

Proximity to California has made it convenient for companies with corporate headquarters on the West Coast to locate their data centers here. “It encourages them to visit and to learn more about the operating environment. Then our goal is to talk further with them about future operational expansion. It could be back office, IT, or technology centers. Data centers and data storage are generally their first foray into evaluating this market on the office side.

“Once you become a nerve center where companies store data, then you start seeing a lot of these colocation tenants that are in these major facilities evaluating opportunities for back office expansion which generally comes with more job creation,” Camacho says.

CBRE reports a high quality of life and low cost of living have encouraged back shop operations for companies such as Wells Fargo, American Express, PayPal, Yelp and others to locate here.

“Companies tend to aggregate around each other,” Zylstra says. “At some point you get to a critical mass that people recognize and they want to be affiliated with it, connected to it.

“The recent Apple announcement is a watershed moment for us,” Zylstra says, referring to Apple’s plans to locate a data center in Mesa. “Apple is the most innovative company on Earth today. It’s the most successful company on Earth. When that kind of company makes a commitment here in Arizona it suggests that we have come into our own. I believe it is an important milestone in becoming known for technology.”

As the technology sector continues to grow, it is important to attract quality talent, he says.“ The greater the reputation the easier it is to attract and retain talent and that’s your competitive asset in a digital economy,” he says.

Drawing in talent is important, Camacho agrees, but he also says it is important to provide a continuing pipeline of trained talent in IT and technical services through our local educational system.

“That’s what is going to make this industry successful,” Camacho says. “We can see that pipeline coming through our Maricopa Community Colleges and the four-year systems that can meet the demand.

“Even though they are not large employers, there’s a very significant level of indirect technology job creation associated with these data centers. On average, you can provide anywhere from two to four indirect jobs for each of the jobs created within the companies themselves.”

Scottsdale Polo Championships

Heineken Expands Party Tent at Polo Event

Heineken may be known for brewing America’s highest quality and favorite pale lager, but equally as satisfying, its ability to help throw the biggest polo party in the country at the 3rd Annual Scottsdale Ferrari-Maserati Polo Championships: Horses & Horsepower on Saturday, November 2nd, 2013.

With space for more than 600 people, The Heineken Red Star Corral, A Polo Day Club features an outdoor patio, all-day D.J., and an on-site after party until 7:00 p.m. There is no more exciting place to watch the world’s hottest and sexiest polo players take to the field for an afternoon of non-stop polo action on November 2nd from 10:00 a.m. to 5:00 p.m.

Heineken used a similar party tent at the Long Beach Grand Prix.  Check out the body surfing from last year’s Polo Party.

Here’s the quick rundown of the festivities – On Saturday, November 2nd, gates open at 10:00 a.m. for the Scottsdale Ferrari-Maserati Polo Championships: Horses & Horsepower. The first match will pit America’s high school champions, Work to Ride, against the country’s 2012 college champions, the University of Virginia.

The next match, at 1:00 p.m., will feature a Battle of the Sexes with a Women’s All-Star Team vs. Arizona Polo Club (men).

At 3:00 p.m., the U.S. Military Polo Team will square off against the Clogau Wales Polo Team (United Kingdom). Jeff Hall, one of the best polo players in the world, and one of just a few top-rated Americans, will be captaining the U.S. Military team.

But heart-stopping polo action isn’t the only feature at WestWorld on Nov. 2nd. Attendees will also enjoy a sneak preview of the 2014 Scottsdale Arabian Horse Show and see some serious horsepower with a preview of the world-famous Barrett-Jackson 2014 Collector Car Auction along with local car clubs lining the field. This year will also feature the 2013 Arizona Porsche Concours d’Elegance car show.

And if you can’t wait until Saturday, join us Friday, November 1st, when gates open at 3:00 p.m. for a sneak preview of the Championships and a fashion show. There will be an all-star match at 4:00 p.m. and then a 5:30 p.m. introduction of the players. It will culminate with a 6:00 p.m. Sunset Equestrian Fashion Show presented by Phoenix Fashion Week.

Tickets and tables are now on sale for the 2013 event. Go to www.thepoloparty.com to purchase tickets.

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GPEC announces Board of Directors for FY 2014

The Greater Phoenix Economic Council (GPEC) today announced the appointment of its Board of Directors for the 2014 fiscal year, as approved by the Executive Committee.

Alliance Bank of Arizona CEO James Lundy will continue to lead the Board of Directors as chairman.

“As the economy continues to improve, GPEC’s team of results-driven board directors will work to ensure the region not only maintains its trajectory but also pushes toward a more diversified and sustainable economy that is less dependent on growth industries like real estate and construction,” Lundy said. “I’m honored to work with this talented group of professionals and look forward to a productive year.”

Rounding out the Board’s leadership is SCF Arizona President and CEO Don Smith and Empire Southwest Executive Vice President Chris Zaharis as vice chairs, APS Vice President and Chief Customer Officer Tammy McLeod as secretary and Bryan Cave, LLP Partner R. Neil Irwin as treasurer.

New Board Directors include: Steve Banta, CEO of Valley Metro; the Honorable Denny Barney, District 1 Supervisor for the Maricopa County Board of Supervisors; Scott Bradley, Area Vice President for Waste Management; Mark Clatt, Area President for Republic Services; the Honorable Vincent Francia, Mayor of the Town of Cave Creek; Dr. Ann Weaver Hart, President of the University of Arizona; Bill Jabjiniak, Economic Development Director for the City of Mesa; the Honorable Michael LeVault, Mayor of the Town of Youngtown; Rich Marchant, Executive Vice President, Global Operations for Crescent Crown Distributing; Ryan Nouis, Co-Founder and President of Job Brokers; and Eric Orsborn, Councilmember for the Town of Buckeye.

“GPEC’s success is largely driven by its strong Board of Directors, all of whom reflect the region and state’s most accomplished professionals,” GPEC President and CEO Barry Broome said. “Every single one of them truly cares about our market’s success and serves as a community thought leader when it comes to competitiveness.”

Mayors from GPEC’s member communities and the organization’s Nominating Committee are responsible for nominating and appointing Board Directors. The one-year terms are approved during GPEC’s Annual Board meeting.

GPEC FY 2014 Board of Directors:

James Lundy – Chairman
CEO
Alliance Bank of Arizona

Don Smith – Vice Chair
President and CEO
SCF Arizona

Chris Zaharis – Vice Chair
Executive Vice President
Empire Southwest

Tammy McLeod – Secretary
Vice President and Chief Customer Officer
Arizona Public Service Company

R. Neil Irwin – Treasurer
Partner
Bryan Cave, LLP

William Pepicello, Ph.D. – Immediate Past Chair
President
University of Phoenix

Barry Broome
President and CEO
Greater Phoenix Economic Council

Richard C. Adkerson
President and CEO
Freeport McMoRan Copper & Gold

Jason Bagley
Government Affairs Manager
Intel

Ron Butler
Managing Partner
Ernst & Young LLP

Brian Campbell
Attorney
Campbell & Mahoney, Chartered

Michael Crow, Ph.D.
President
Arizona State University

Kathleen H. Goeppinger, Ph.D.
President and CEO
Midwestern University

Derrick Hall
President and CEO
Arizona Diamondbacks

Sharon Harper
President and CEO
The Plaza Companies

Ann Weaver Hart, Ph.D.
President
University of Arizona

Don Kile
President, Master Planned Communities
The Ellman Companies

Paul Luna
President and CEO
Helios Education Foundation

Rich Marchant
Executive Vice President, Global Operations
Crescent Crown Distributing

David Rousseau
President
Salt River Project

Joseph Stewart
Chairman and CEO
JPMorgan Chase Arizona

Hyman Sukiennik
Vice President
Cox Business

Karrin Kunasek Taylor
Executive Vice President and
Chief Entitlements Officer
DMB Associates, Inc.

Gerrit van Huisstede
Regional President Desert Mountain Region
Wells Fargo

Andy Warren
President
Maracay Homes

Richard B. West, III
President
Carefree Partners

John Zidich
Publisher & President
The Arizona Republic

Chuck Allen
Managing Director, Gov’t & Community Relations
US Airways

Steve Banta
CEO
Valley Metro

Denny Barney
County Supervisor-District 1
Maricopa County Board of Supervisors

Jason Barney
Principal and Partner
Landmark Investments

The Honorable Robert Barrett
Mayor
City of Peoria

Timothy Bidwill
Vice President
Vermilion IDG

Scott Bradley
Area Vice President, Four Corners Area
Waste Management

Norman Butler
Market Executive
Bank of America Merrill Lynch

Mark Clatt
Area President
Republic Services

Jeff Crockett
Shareholder
Brownstein Hyatt Farber Schreck

Wyatt Decker, M.D.
CEO
Mayo Clinic Arizona

George Forristall
Director of Project Development
Mortenson Construction

The Honorable Vincent Francia
Mayor
Town of Cave Creek

Rufus Glasper, Ph.D.
Chancellor
Maricopa Community Colleges

Barry Halpern
Partner
Snell and Wilmer

G. Todd Hardy
Vice President of Assets
ASU Foundation

Lynne Herndon
Phoenix City President
BBVA Compass

Linda Hunt
Senior VP of Operations and President/CEO
Dignity Health Arizona

William Jabiiniak
Economic Development Director
City of Mesa

The Honorable Robert Jackson
Mayor
City of Casa Grande

The Honorable Linda Kavanagh
Mayor
Town of Fountain Hills

The Honorable Andy Kunasek
County Supervisor, District 3
Maricopa County Board of Supervisors

The Honorable Michael LeVault
Mayor
Town of Youngtown

The Honorable John Lewis
Mayor
Town of Gilbert

The Honorable Marie Lopez Rogers
Mayor
City of Avondale

The Honorable Georgia Lord
Mayor
City of Goodyear

Jeff Lowe
President
MidFirst Bank

Paul Magallanez
Economic Development Director
City of Tolleson

Kate Maracas
Vice President
Abengoa

The Honorable Mark Mitchell
Mayor
City of Tempe

Ryan Nouis
Co-Founder & President
Job Brokers

Ed Novak
Managing Partner
Polsinelli Shughart

Eric Osborn
Councilmember
Town of Buckeye

Rui Pereira
General Manager
Rancho de Los Caballeros

The Honorable Christian Price
Mayor
City of Maricopa

Craig Robb
Managing Director
Zions Energy Link

The Honorable Jeff Serdy
Councilmember
City of Apache Junction

Steven M. Shope, Ph.D.
President
Sandia Research Corporation

James T. Swanson
President and CEO
Kitchell Corporation

Richard J. Thompson
President and CEO
Power-One

Jay Tibshraeny
Mayor
City of Chandler

John Welch
Managing Partner
Squire Sanders

Dan Withers
President
D.L. Withers Construction

The Honorable Sharon Wolcott
Mayor
City of Surprise

GENERAL COUNSEL
Bryant Barber
Attorney at Law
Lewis and Roca

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Hunt Construction 1 of 2 Finalists to Build Minnesota Vikings New Stadium

 

Hunt Construction, the Phoenix-based general contractor that built University of Phoenix Stadium for the NFL Arizona Cardinals, is among two finalists the build the Minnesota Vikings’ new stadium.

Mortenson Construction of Minneapolis, the company that built new stadiums for the Minnesota Twins and the University of Minnesota football team, also built the Arizona Diamondbacks’ and Colorado Rockies’ spring training stadium, Salt River Fields at Talking Stick.

Both Hunt and Mortenson made the cut this week.

Minnesota Sports Facilities Authority chairwoman Michele Kelm-Helgen says a third firm, Swedish-based Skanska AB, is no longer being considered.

Hunt is building Riverview Park in Mesa, the new spring training home of the Chicago Cubs scheduled to open in 2014.

A builder for the Vikings’ $975M stadium was expected to be announced at Friday’s authority meeting. But Kelm-Helgen tells the Minneapolis Star Tribune more time is needed, according to the Associated Press.

 

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Hunt Construction Group 1 of 3 GCs to Submit Bids on New Vikings Stadium

 

Three construction firms – including Hunt Construction Group of Phoenix – submitted bids to build the new Minnesota Vikings stadium, according to the agency overseeing bidding.

Hunt, Mortenson Construction of Minneapolis and Skanska AB’s New York office are in the running to build the $975M stadium in downtown Minneapolis.

The Minnesota Sports Facilities Authority will select a company in the first week of February, authority chairwoman Michele Kelm-Helgen told the Associated Press.

Bidding closed Monday morning, and all three firms will interview with the authority later this week.

Team officials and the sports authority hope to have the stadium ready for the 2016 Vikings season.

Cost is among several factors being considered, along with the firms’ experience building sports venues and meeting workforce goals. The cost of each company’s bid is confidential, Kelm-Helgen said.

“Local participation definitely is one factor we’ll be looking at,” she added. “It will be weighted along with everything else.”

Mortenson built several sports stadiums in the Twin Cities, including Target Field, TCF Bank Stadium, Xcel Energy Center and the Target Center.

Hunt Construction has built many stadiums for professional baseball and football teams, including the homes of the Indianapolis Colts and Arizona Cardinals.

Skanska built stadiums for the New England Patriots, Tennessee Titans and the joint home of the New York Giants and New York Jets.

Three other construction firms had expressed interest but did not submit bids.

 

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RED Awards 2012 - Salt River Fields

RED Awards 2012: Most Challenging Project, Salt River Fields at Talking Stick

On March 1, AZRE hosted the 7th Annual RED Awards reception at the Arizona Biltmore in Phoenix to recognize the most notable commercial real estate projects of 2011 and the construction teams involved. AZRE held an open call for nominations and a record 116 projects were submitted by architects, contractors, developers and brokerage firms in Arizona. This year, the winner for Most Challenging Project was Salt River Fields at Talking Stick.


Most Challenging Project

Salt River Fields at Talking Stick

Developer: Salt River Pima-Maricopa Indian Community (SRPMIC)
Contractor: Mortenson Construction
Architect: HKS Architects, Inc.
Size: 279,635 SF
Location: 7555 N Pima Rd., Scottsdale
Completed: January, 2011

Salt River FieldsThe first major league spring training ballpark to be built on Native American land, Salt River Fields at Talking Stick is a sports complex engaging community involvement while embracing the values and culture of the SRPMIC. The challenge was to meet an aggressive construction schedule in anticipation of the start of spring training for the Arizona Diamondbacks and the Colorado Rockies. Sitting on 140 acres, the project’s centerpiece is an 11,000-seat stadium. The design and building process took less than two years as a result of a complete team effort between Mortenson Construction, HKS and the tribe. The team at Salt River Fields also placed emphasis on energy and water preservation. Water-saving techniques reduced usage by more than 45% and the energy savings of 23.5%.

saltriverfields.com


Video by Cory Bergquist


Honorable Mention

Arizona Science Center Phase III Remodifications

Developer: Arizona Science Center
Contractor: Brycon Construction Company
Architect: Architekton
Size: 17,000 SF
Location: 600 E. Washington St., Phoenix
Completed: January, 2011


Video by Cory Bergquist


RED Awards 2012 Winners & Finalists

AZRE Magazine March/April 2012

Construction Project - AZRE Magazine November/December 2011

Construction Project News

Construction project news from Phoenix College, McCarthy Building Companies, CyrusOne, D.L. Withers Construction and more.

Phoenix College remodeling work includes student union

Construction Projects - AZRE Magazine November/December 2011Addition and remodeling work to the existing Hannelly Student Center continues at Phoenix College. The main construction project is remodeling of the Learning Center Building into a student union with an exterior patio. Work includes 45,650 SF of remodeling and 13,000 SF. Expected completion of the $16.8M project is 3Q 2012. D.L. Withers is the general contractor; RNL Design is the architect.

McCarthy projects include solar station, new school building

McCarthy Building Companies is completing construction of the 145-acre Cotton Center Solar Station in Gila Bend. The $14.3M project involves installation of the largest (18 mw) photovoltaic ground-mounted solar tracking system in Arizona. Installation includes PV racking system, modules and electrical system. The 75,000 solar panels are arranged in 1,566 rows connected to 108 single-axis trackers. On sunny days the construction project is expected to produce enough energy for 4,500 residential customers. Developer is SOLON Corporation and APS. Subcontractors include Blount Contracting, Buesing Corp., Schuff Steel, Ironco, and Delta Diversified. Expected completion is late 4Q 2011.  … McCarthy completed a new, 2-story, 67,000 SF building that houses 32 classrooms, a library, dining room and administrative offices at Aguilar Elementary School in Tempe. HDA was the architect for the $11.6M renovation project. Subcontractors: E&K of Phoenix, Kortman Electric, Maverick Masonry, Midstate Mechanical, Schuff Steel, Progressive Roofing and Suntec Concrete.

1 MSF data center scheduled to break ground in 2012

CyrusOne, a data center colocation provider, plans to build a 1 MSF facility in Chandler with construction set to begin in 2012 and completion expected by early 2013. CBRE helped complete the sale of a 40-acre parcel at Continuum, a 152-acre master-planned science and technology business park located in the Price Corridor. This facility will serve as the primary location for CyrusOne’s West Coast colocation operations, targeting the Northern and Southern California markets. Luke Walker, David Carder and Nick Di Paolo of CBRE’s Phoenix office represented the seller, Capital Commercial Investments Inc. of Austin, Texas. CyrusOne was represented by Mark Bauer of Jones Lang LaSalle in Phoenix.

D.L. Withers to build MCSO 911 call center

D.L. Withers Construction will begin work on the $80M, 120,000-140,000 SF Maricopa County Sheriff’s Office 911 Dispatch Center and Administration Building in 2Q 2012. The 5- to 7-story building  at the SWC of 5th Ave. and Madison in Phoenix will house the 911 dispatch center and consolidate MCSO administrative functions.  Architect is Gabor Lorant Architects. Expected completion is 3Q 2013.

DPR wraps up renovation at Hospice of Arizona

Construction Projects - AZRE Magazine November/December 2011DPR Construction completed a 12,064 SF renovation of a one-story unoccupied building and existing site area for Hospice of Arizona in Mesa. The interior build-out included 13 resident/patient rooms, staff support and administrative spaces, family gathering areas, a cafe, outdoor courtyard and a commercial kitchen. The Greenfield Comfort Garden, a feature of the exterior site, honors former Arizona Gov. Rose Mofford. Projects DPR is completing in 4Q 2011: Willis TI, Scottsdale, 24,992 SF; West Valley Medical Center PACU renovation, Goodyear, 3,500 SF; SARRC Vocational & Life Skills Academy TI, Phoenix, 10,159 SF; and Merkel Corp. TI, Scottsdale, 25,804 SF.

Mortenson selected for 3 projects on NAU campus

Mortenson Construction has been awarded three projects on the Northern Arizona University campus in Flagstaff, including a new Science & Health Building and major renovation to the Multipurpose Events Center. The $55M, 120,000 SF Greenfield Science & Health Building will add new teaching and research labs and classrooms. Expected completion is 3Q 2014. The $18.5M events center project is a major renovation of the 94,000 SF NAU Fieldhouse into a multipurpose center. Work includes space reconfiguration, structural repairs, a new west entrance and new acoustics and lighting. Expected completion is 1Q 2013. A $3.5M renovation to the Lab 17 building includes HVAC balancing and fire and life safety updates. Expected completion is 4Q 2011.

Pegasus Construction completes TI in Goodyear building

Pegasus Construction completed a $140,000, 2,800 SF tenant improvement of an existing building at 1380 N. Litchfield Road in Goodyear for New Orleans-based Naked Pizza. The project includes a kitchen and customer area for takeout and delivery, an open office area to train kitchen staff and a conference room. The building will eventually become the local corporate office for Naked Pizza. Architect was Reece Angell Rowe Architects. Subcontractors included Uniko Glass and Mirror, Sunset Acoustics, Northwest Floor & Wall, JJJ Electric, Freedom Fire Protection, Diamondback Builders Services, Commercial Service Company, Banker Insulation, AZ Professional Painting, ABBA Aire and Mountainview Flooring.

Kraus-Anderson breaks ground on multi-family project

The Phoenix office of Kraus-Anderson Construction Company broke ground on a 17,176 SF supportive housing project at 1140 E. 5th Ave. in Mesa. The 18-unit accessible apartment complex will serve low-income individuals with physical disabilities. The multi-family building will include 14 one-bedroom units, four two-bedroom units, resident parking and a community building. The complex is located in an infill site and will feature landscaping using native species, pedestrian paths leading through the 2-acre, three-building site, and underground storm water infiltration system. Expected completion is 1Q 2012.

STG Design, MT Builders complete retirement community

Construction was completed recently on the 176,332 SF, $17M Alta Vista Retirement Community in Prescott. STG Design provided architectural services and MT Builders was the general contractor. The project consists of two senior living communities linked by a shared 14,000 SF recreation center. There are 44 units of assisted living and 88 units of independent living. The development is situated on a 6-acre parcel with a view of the mountain ranges that surround Prescott.

On the drawing board

Scottsdale-based AZ Sourcing LLC is planning to build a 1.5 MSF business center in Casa Grande to be named Phoenix Mart. Colliers International has been hired to sign up prospective tenants. The proposed $150M project will include a convention center. Tenants will sell merchandise ranging from consumer products, automotive products and food. … An apartment complex in Scottsdale is being proposed by a local developer who plans to demolish the old Barcelona nightclub at 73rd St. and Greenway-Hayden Loop. Plans by Scottsdale Place LLC call for a four-story, 240-unit apartment complex at the site. …  LWI Advisory Group of Del Mar, Calif., has submitted plans to the City of Gilbert for a 382-unit apartment complex near SanTan Village. The proposed complex is near the SWC of Ray Rd. and SanTan Village Parkway.

Gestamp Solar Steel, AZRE May/June 2011

Industrial: Gestamp Solar Steel


GESTAMP SOLAR STEEL

General contractor: Mortenson Construction
Architect: SmithGroup
Location: Peoria Ave. and Dysart Rd., on Solar Canyon Way, Surprise
Size: 75,000 SF manufacturing; 6,000 SF office ground floor with vacant 6,000 SF on second floor for expansion

The first phase of the $6M project is 75,000 SF of high bay manufacturing space, with a 12,000 SF office. The first phase is master planned to allow expansion of future 75,000 SF bays to an estimated growth close to 500,000 SF for the production of steel for a range of solar power plants destined for the Southwest. Subcontractors include W.W. Smith Construction and Blount Contracting. Construction to begin 2Q 2011.

AZRE Magazine, May/June 2011
Construction Industry, AZRE Magazine March/April 2011

Arizona Construction Industry Gains Footing In 2011

Fueled by education-related projects, another new Cactus League spring training facility and Indian casinos, the construction industry in Arizona appears to be gaining footing in 2011.

Though not experiencing a full-scale rebound, contractors have reasons to be somewhat optimistic. For example, K-12 school districts around the state won voter approval in November of bond issues and budget overrides totaling more than $500M — but not all of the money is earmarked for construction or remodeling.

Contractors also anticipate increased activity in the solar energy field, thanks in part to SB 1403, approved in 2009. The law offers tax incentives for businesses locating alternative and solar energy manufacturing plants and corporate headquarters in Arizona.

Perhaps the highest-profile project that attracted numerous general contractors is the proposed spring training stadium and facilities for the Chicago Cubs in Mesa. Beth Huning, Mesa city engineer, says the city hopes to break ground on the 100-plus acre project southeast of the intersection of the Loop 101 and 202 freeways by the end of 2011. The Cubs want to use their new facility for spring training in 2013.

Mesa voters on Nov. 2 approved a ballot measure that allows the city to spend up to $84M for a new stadium, practice fields and training facilities. In addition, city officials have promised to spend no more than $15M for associated infrastructure improvements. The Cubs will be responsible for any cost overruns, and plan to build a “Wrigleyville West” entertainment and retail complex next to the baseball facilities.

Mortenson Construction, which just completed Salt River Fields at Talking Stick, the new spring training home of the Arizona Diamondbacks and Colorado Rockies at Loop 101 north of Indian Bend Road on the Salt River Pima-Maricopa Indian Community, was among the general contractors vying for the Cubs facility.

George Forristall, director of business development for Mortenson, says the firm is involved in major projects at all three state universities. He cites two Arizona State University recreation facilities — one at the Polytechnic campus in Mesa and one at the ASU West campus — each in the $17M range; a $53M Health & Learning Center at Northern Arizona University in Flagstaff that may not break ground until 2012; and an expansion of the north end zone at the University of Arizona football stadium in Tucson. The UA project, estimated at $50M, includes replacing aluminum seating with 5,000 upgraded seats, new concession concourses, additional restrooms, and elevators to improve access for the disabled.

Robert “Bo” Calbert, Southwest regional president of McCarthy Building Companies, says his firm expects to be active in public school projects, considering the success of numerous bond issues and budget overrides totaling a half-billion dollars.

“The K-12 market is a pretty big market for us,” Calbert says. “We expect to see several projects this year — not a ton compared to the last few years, but it’s a steady market.”

Among the successful school districts were Kyrene Elementary, $116.9M; Scottsdale Unified, $115M; Chandler Unified, $84.3M; Washington Elementary, $65M; and Marana Unified, $43M.

“A lot of schools will do upgrades and renovations, but not much new construction,” Calbert says. “Considering the state of the economy, it’s a fairly active market, albeit smaller than two-three years ago.”

He suggests a reason for the wave of successful bond issues: “The public has seen … state cuts in education spending. If not for bond issues, the needs of these schools would not be met.”

Many of the projects will involve heating and air-conditioning upgrades, with some schools opting for solar devices.

McCarthy, making a big push into solar, has secured one contract and was closing in on a second substantial deal, Calbert says. He sees solar, particularly in Arizona with abundant sunshine and relatively low-cost construction, as an industry for the present and future, though challenges remain for financing.

“We’re betting on it,” he says.

McCarthy is building a new hotel for the Pasqua Yaqui Tribe near Tucson and hopes to land the Navajo Nation’s proposed Twin Arrows Casino in Northern Arizona. And there is talk of a new Fort McDowell Mohave-Apache casino near Fountain Hills, Calbert says.

In addition, despite mounting local opposition, David Jones, president and CEO of the Arizona Contractors Association, says he expects the Tohono O’odham Nation to be successful in building a resort and casino adjacent to Glendale for an estimated $500M. Also in 2011, Jones sees a continuation of healthcare and hospital construction, solar projects in the Kingman and Gila Bend areas, a private prison near Prescott, mining projects southeast of Tucson and near Patagonia, and perhaps federal projects to beef-up security along the border with Mexico.

Forristall says the formation of the Arizona Commerce Authority, a public/private agency to spur economic development, is “a very positive sign.” He also praises the efforts of the Greater Phoenix Economic Council in utilizing the tools in SB 1403 to attract solar projects.

Forristall sees a gradual recovery in 2011. He says 2009 was a tough year for construction and 2010 basically maintained the status quo. “I see 2011 — not a U-shape — but I see a bit more activity, more optimism,” he says. “So we’re positive about the outlook.”

For more information about the construction industry and the projects mentioned in this story, visit:

mortenson.com

mccarthy.com

mesaaz.gov/engineering/cubs.aspx

AZRE March/April 2011 

Newsmakers, AZRE Magazine March/April 20111

Newsmakers: AZRE Magazine March/April 2011

Newsmakers: March/April 2011

Rommie Mojahedand Mary Ridberg were appointed directors of leasing for the Phoenix office of Sperry Van Ness. Mojahed and Ridberg will be responsible for recruiting, business development and growth of the leasing team.

Brian Smuckler and Jeff Seaman joined CB Richard Ellis’ Multi-Housing Private Client Group in Phoenix. Smuckler, senior vice president, and Seaman, senior associate, will form a new team working with private-capital multi-family investors. Smuckler, who leads the team, comes to CBRE from Marcus & Millichap, where he was a director of the National Multi-Housing Group. Seaman also joins CBRE from Marcus & Millichap, where he was a senior associate. CBRE also hired Timothy Keating as senior office operations manager.

The Plaza Companies announced it is opening a new Tucson office and hired a leasing professional. Plaza Companies currently provides property management and leasing services to three medical office properties in the Tucson area: Academy Medical, Desert Medical Center, and LaCholla Medical Center. Plaza Companies has hired Lauri Abbinante, a Tucson resident who has worked in the Tucson brokerage community for more than nine years, as senior portfolio manager and leasing specialist.

Commercial Properties Inc. (CPI) has added 11 new agents over the past few months at its Tempe and Scottsdale locations. They are: John Soldo, Trent Rustan, Josh Gosnell and Brandon Koplin, Tempe; and Nicholas Miner, David Verwer, Homer Savard, Donn Kinzle, Sam Walker, Phill Tomlinson and Bob Deininger, Scottsdale

Quarles & Brady announced that Brian Booker, a partner in the firm’s Phoenix office, has been appointed to the board of directors of The Wellness Community. Booker’s practice focuses on commercial litigation with emphasis in commercial and professional liability, real estate, securities fraud and products liability.

Grubb & Ellis announced that Robert Stephens has joined the company as vice president, Industrial Group. Specializing in the representation of industrial tenants and landlords, Stephens joins Grubb & Ellis from Cushman & Wakefield, where he spent 15 years as a senior director. Grubb & Ellis also announced that Andrew Banister and Alan Gillespie joined the company’s Investment Services group as senior vice president and vice president, respectively. They will specialize in the sale of office and industrial properties.

DLR Group recognized seven individuals at its regional annual meeting. They were rewarded for their commitment to the firm and willingness to accept and excel in leadership roles. David Boehm was appointed as senior principal; Scott Shively was promoted to principal; Elizabeth Rendon and Eric Loos were promoted to senior associates; and Karen Heck, Rickey Austin, Andrew Dunlap and Jason Hocking were promoted to associates.

CB Richard Ellis promoted Gavin McPhie to managing director of its Valuation & Advisory Services (VAS) Group in Phoenix. McPhie, who has nearly 10 years of real estate appraisal and consulting experience, joined CBRE in 2005. CBRE also hired Timothy Keating as senior office operations manager.

NAI Horizon added Rick Foss to its Industrial Properties Group. He has spent the past 10 years representing a wide range of industries in the acquisition of their real estate facilities. Prior to joining NAI, Foss worked at Insignia ESG, Grubb & Ellis and Cassidy Turley | BRE Commercial in Phoenix.

Grubb & Ellis announced that Jeffrey Chalfin has joined the company as vice president, Investment Services. Chalfin specializes in the sale of multi-tenant retail assets and joins Grubb & Ellis from Sperry Van Ness, where he began his career in 1998.

Mortenson Construction promoted Paul Kitching to director of operations. Kitching has been with Mortenson since 1997 through the joint venture project, Minnesota Correctional Facility in Rush City, Minn. He became an official Mortenson team member in the Minneapolis office in 2000, with a focus in sports and healthcare

Gilbane Building Company named D. Thomas Goderre district operations manager in its Phoenix office. Goderre will manage all of Gilbane’s business and construction operations throughout the district.

Cassidy Turley | BRE Commercial announced that Scott Boardman has joined the company’s Office Services Group as a senior associate. Boardman will be partnering with senior VPs Trevor Klinkhamer and Jeff Hartland to form a new Office Services Group team.

Cushman & Wakefield promoted Will Strong to the senior associate post within the Bo Mills and Mark Detmer Industrial Specialty Group. Strong specializes in representing and consulting corporate tenants, institutional landlords and developers in the acquisition, development and disposition of industrial real estate.

Sundt Construction promoted three employees: Thomas Mertz to senior vice president and manager of Sundt’s federal division (formerly vice president of business development); Herbert Chong to vice president of business development (formerly project director); and Gregory Ayres to area manager (formerly senior project manager).

Vince Lujan accepted the position of president and CEO of Salt River Devco, the asset management and commercial development company for the Salt River Pima-Maricopa Indian Community. Lujan, a Pueblo Indian from New Mexico, served as interim president and CEO of Devco since March 2010. Jeff Roberts was appointed asset manager and will oversee management of six commercial office buildings totaling 370,000 SF in Chaparral Business Park.

Jones Lang LaSalle vice president Jason Moore moved from the agency to the tenant representation team in the company’s Phoenix office. Moore will specialize exclusively on tenant representation and consultation for corporate clients in Phoenix.

AZRE Magazine March/April 2011

RED Awards Banner

Most Sustainable Project 2011

White Tank Branch Library and Nature Center

Most Sustainable 2011: White Tank Branch Library and Nature CenterDeveloper: Maricopa County Library District
Contractor:
Mortenson Construction
Architect:
DWL
Size:
29,000 SF
Location:
20304 W. White Tank Mountain Rd., Waddell
Completed:
November 2010

The White Tank Branch Library and Nature Center has set and achieved aggressive energy conservation goals. Among them: it is pursuing LEED Gold certification and it has documented a 50% reduction in energy usage beyond a typical code-compliant building. About 25% of the building’s energy is generated on site by a 53.58 KW DC/43.8 KW AC photovoltaic array. The project’s design team also was conscious of water usage, and all fixtures are “low flow,” contributing to a 30% reduction of water beyond a typical library. Other features that contribute to a large reduction in energy usage include the library’s sweeping panoramic windows, concrete shade fins, R30 foam roof insulation, and R13 foil-faced batt insulation to minimize the impact of the desert’s harsh temperature swings. The library is enhanced by its pristine desert location and the inclusion of the park’s nature center, where visitors can combine a trip to the library with lessons learned about their environment.




Honorable Mention: CREST Specialty School

Honorable Mention: CREST Specialty SchoolDeveloper: Paradise Valley Unified School District
Contractor:
Adolfson & Peterson Construction
Architect:
DLR Group
Size:
14,000
Location:
3950 E. Bell Rd., Phoenix
Completed:
October 2010

Northern Arizona University Health + Learning Center, AZRE March/April 2010

Education: Northern Arizona University Health + Learning Center


NORTHERN ARIZONA UNIVERSITY HEALTH + LEARNING CENTER

Owner: Northern Arizona University
Contractor: Mortenson Construction
Architect: OWP/P | Cannon Design
Size: 270,000 SF
Location: San Francisco St. & Mountainview Rd. in Flagstaff

Construction on the $79.1M addition and renovation began in fall 2009, with anticipated completion in fall 2011. Project includes 57,000 SF of student health spaces; 71,000 SF addition and 39,000 SF renovation of student recreation space; 34,000 SF athletics space and 69,000 SF of general classroom space. Subs include Corbins Electric, Interstate Mechanical Corp., Suntec Concrete, Metal-Weld Specialties Inc., Kovach Inc., Maverick Masonry, Trainor Glass and Auza Construction.

AZRE March/April 2010
red-banner

Best Public Project 2010

Surprise City Hall

Surprise City Hall was constructed during very turbulent economic times, which forced the city to undergo several internal personnel changes. The changes occurred after construction had begun, drastically affecting the project. Without the collaborative efforts, communication and positive attitudes of the design and construction teams — keeping the project on target and within the original budget — the project may not have become a reality.

Developer: City of Surprise
Contractor: D.L. Withers Construction
Architect: Architekton
Size: 290,000 SF
Location: 15984 N. Civic Center Plaza, Surprise
Completed: March 2009

Honorable Mention: Camelback Ranch
Spring Training Facility

Developer: City of Glendale
Contractor: Mortenson Construction
Architect: HKS Inc.
Size: 205,000 SF
Location: 10710 W. Camelback Rd., Phoenix
Completed: February 2009


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