Inland Empire Market Report

Temecula-based EDGE Development has kept busy in a struggling Inland Empire economy by building the $31-million Temecula City Hall, part of the larger $66-million Temecula Old Town Civic Center Development.

By Greg Aragon

While Riverside and San Bernardino counties are suffering through high unemployment levels – especially in the construction field – some Inland Empire contractors are finding work in their own backyard to keep active until the economy reboots.

For instance, Temecula-based EDGE Development is working on a project in its own city – the $31-million Temecula City Hall, part of the larger, $66-million Temecula Old Town Civic Center Development.

EDGE is working on the Temecula project as one of 12 projects the firm is presently building in the Inland Empire with a total construction valuation of more than $200 million.

EDGE is finding work at a time when construction work has dried up in the Inland Empire, more so than other parts of the state.

Construction work – especially residential homebuilding – was one of the driving forces behind the growth of the Inland Empire as it went from a blue-collar commuter housing area into the 16th largest metropolitan statistical area in the country in the past decade.

But now the Inland Empire is feeling the effects of a slow economy.

Unemployment in the region is at 13%, its highest level in almost 20 years. And due to factors such as the area’s housing market bust, the construction industry has lost more than 25,000 jobs this year.

“The Inland Empire [construction market] is suffering,” says Jenna Lockstedt, marketing director for Temecula-based EDGE Development. “In some markets, specifically K-12 education construction, our work has slowed as funds have stopped fl owing from the state, but our other markets (cities, government agencies and colleges) are still moving forward with construction projects, which helps keep us busy.”

Because of the Inland Empire’s economic woes and slumping economy, the Temecula City Hall project came in about $8 million under budget when the bid was awarded in September.

”Subcontractor prices were much more competitive than they would have been two years ago,” says Richard Gnandt, EDGE construction manager. “And that price is reflected in our [contract] because our price is a culmination of subcontractor prices.”

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The overall City Hall project includes a four-level, 460-space parking garage. There also is a town square plaza with lawn, shade trees, benches and reading areas, European-style pavers and a large fountain. Completion is set for September 2010.

EDGE is serving as general contractor, and Redding-based Nichols Melburg Rossetto Architecture is the architect for construction of the three-story City Hall.

“This project is the crown jewel for the city of Temecula,” Gnandt says. He says because of the building’s prominent location in historic Old Town, directly behind the 15 Freeway, the project will become an icon for the city.

Mike Lusso, principal architect for Nichols Melburg Rossetto, says the design of the building will also help it garner attention.

“It’s an interpretation of mission revival style that was intended to relate to some of the architectural history of Temecula area,” Lusso says. “It will have a two-piece, Spanish-style clay-tile roof, arches, courtyards, colonnades and special detailing typical of mission revival.”

The 100,000-sq-ft project will also be highlighted by a three-story clock tower at the main entrance.

Lusso says the toughest part of the job was making the new building customer friendly. “One thing we heard loud and clear was that city officials wanted visitors to have a positive, pleasant and efficient experience,” he adds. For example, on the first floor, “all the services people need will be available in one space, whether its public works, building and planning departments, fire or paying the cashier.”