State Construction Up 13.5% in April

Nonresidential building permits issued in April were 20.1% higher than last year

By Tom Willow

SACRAMENTO — California's statewide construction volume in April, led by strong gains in private nonresidential building --- their highest level in more than two years --- totaled $6.7 billion, up 1.5 percent from the previous month and up 13.5 percent from April 2003, according to data compiled by the Burbank-based Construction Industry Research Board.

Total private building construction (residential and nonresidential) in April totaled $5.24 billion, down $72.9 million from the previous month while public works construction, which includes both highway-heavy construction and government-owned buildings, totals $1.52 billion, up $229 million or 17.7 percent from March and up 4.9 percent from April 2003.

"The year-to-date figures for the first four months of 2004 are a better barometer of what is happening," said Bartolotto. But the real story is in private nonresidential (commercial and industrial) building where the April rate is the highest for any month since February 2002."

Nonresidential building permits issued in April have a total construction value of $1.43 billion, up 8.6 percent from March and up 20.1 percent from April 2003. Bartolotto said that in the first four months of 2004 private nonresidential building totals $4.6 billion, up

8.4 percent or $359.2 million more than from the same period last year.

"In March the year-to-date increase showed a 2.8 percent increase. So, the 8.4 percent year-to-date increase after four months of 2004 shows the year-to-date cap increase is growing in the nonresidential sector," Bartolotto said

The CIRB analyst attributes this increase to an improving economy. The two largest regions in the state, Southern California and the San Francisco Bay Region, show significant gains in nonresidential building.

Southern California is up 12.2 percent while the San Francisco Bay Region is up 10.4 percent in the first four months of 2004.

"The San Francisco Bay Region is most notable since that region declined by 27.5 percent in 2003 from 2002 while accounting for the bulk of the statewide decline since 2000," Bartolotto said. It was the Bay Region that also accounted for nearly all of the increase in nonresidential building statewide in 2002.

CIRB's April figures also show the public works sector, including public buildings (government owned) and highway-heavy construction totals $1.530 billion, up 17.7 percent from March and up 4.9 percent from April 2003.

Bartolotto said two large projects helped heavy construction to total $740.5 million, up 30.6 percent from March: a $174.5 million portion of a San Francisco bridge project and a $46.6 million roadway and bridge rehab project in San Bernardino County.

In the first four months of 2004 heavy construction totals $2.31 billion, up 12.3 percent from the same period last year.

Mixed-Use Project Receives City Approval

The City Council of Redwood City has approved the plan for Marina Shores Village, a 46.5-acre, mixed-use project overlooking the San Francisco Bay.

The city's planning commission voted 6-1 in April to recommend that the city council approve the project.

The City Council vote clears the way for construction of nearly 2,000 new housing units, which could come on line as early as 2007.

Developed by Glenborough-Pauls LLC and designed by San Francisco-based SB Architects, the project is envisioned as a harbor-oriented mixed-use village, providing 1,930 residences, 150,000 sq. ft. of office space, 25,000 sq. ft. of retail and a 200-room, waterfront boutique hotel. Located on the former Peninsula Marina and Pete's Harbor sites, the primary goal of the master plan is to address the area's urgent housing needs, while creating the atmosphere of an waterfront village.

The master plan for Marina Shores Village provides a variety of housing types, ranging from on-grade townhouses and lower-scale flats to high-rise residences in 11- to 21-story towers above two and three-story parking podiums. The site plan for each parcel is arranged around one of the two marinas, making waterfront living the primary identifying factor of the development. Rather than create high-, mid- and low-rise zones within the site, the design team clustered structures together in "island" groupings, defined by marinas, flushing channels, walkways and bridges.

The vision for this urban waterfront community is supported by the large amount of public space woven throughout the project. Virtually all of the waterfront and on-grade open space is available to the public, with private, open areas provided for residents.

"By layering public, semi-private and private spaces, we create a texture of public and private spaces that is very urban in character," said Donald Sandy, chairman emeritus of SB Architects and design architect for Marina Shores Village.

"This supports our primary design focus, which is to create a village atmosphere reminiscent of the urban waterfronts of Europe in its character, scale and ambiance."

Berkeley-based Projects Pacific is responsible for landscape design.

The architecture is a contemporary rendition of classical European motifs, providing stylistic continuity, but with enough variation in materials and massing to promote an eclectic experience that provides a bridge between suburban and urban living. Design elements such as stepped massing, differing roof treatments, bridges and sections of buildings dropping directly into the water accomplish this goal, Sandy said. Narrow streets, on-grade townhouses and gardens, open boardwalks and arcade walkways under high-rise structures support the eclectic, urban vision on a pedestrian level.

"Each building is designed to frame and create interesting outdoor spaces," said Yumi Chon, associate and project manager for SB Architects.

"It is very important that the residential experience within the buildings be supported by a varied and activated pedestrian experience - both for residents and for visitors. This will be a place to be shared by all."

Glenborough-Pauls LLC is a joint venture between Glenborough Realty Trust and The Pauls Corp. The team was formed with the specific mission of addressing the staggering housing shortage in San Mateo County that is pricing many working families out of the area.

Glenborough Realty Trust Inc. is a real estate investment trust, whose portfolio is focused primarily on multi-tenant office and industrial properties.

Agreement Reached on 400-Acre Project in Hayward

Hayward 1900, the developer of a 400-acre project in Hayward called Blue Rock, and the Hayward Area Planning Association, Center for Biological Diversity and Greenbelt Alliance reached an agreement Monday after mediation under the auspices of the U.S. 9th Circuit Court of Appeals.

The agreement is in line with the March 29 ruling by Federal District Judge Susan Illston, confirming that the project does not jeopardize the area's threatened species.

The agreement requires Hayward 1900 to make additional investments in conservation land and allows for immediate construction of the first new elementary school in Hayward in 40 years, to be paid for by the developer with a contribution of $8.5 million from California.

As part of the agreement, HAPA and CBD will request the 9th Circuit Court lift the injunction against construction granted on May 13 and will withdraw its pending appeal to the 9th Circuit. HAPA, CBD and Greenbelt have agreed not to bring any further legal challenge to the project, or do anything else to oppose, delay or frustrate the project.

The settlement also includes acceptance by HAPA and CBD of Blue Rock's offer to purchase and dedicate in perpetuity approximately 120 acres of adjoining land east of the Blue Rock property for conservation purposes. This is in addition to 1,000 acres the developer will donate as open space to East Bay Regional Park District. Additionally, Blue Rock will establish a $1.5 million fund for the future acquisition of conservation land.

As a result of the agreement, The Hayward Unified School District plans to immediately request release of the $8.5 million state bond money allocated as a contribution to the construction costs of the new school. Blue Rock's developer will move forward as soon as possible with site grading of the property, including the new school.

Cement Supplier to Build Plant in Bay Area

HOUSTON — The United States subsidiary of Cemex, a Monterrey, Mexico-based producer of cement and ready-mix products, will be building a plant in Richmond.

Cemex Inc. has reached an agreement with Levin Enterprises to build a 1 million metric ton Portland cement import terminal. The facility will serve the construction market in Richmond and surrounding areas.

"This new terminal will increase the flexibility of our existing distribution system, enabling us to meet the demands of the rapidly expanding markets in the West Coast," said Gilberto Perez, president of Cemex's U.S. operations.

Construction of the terminal will take place in two phases.

Phase one, which is expected to be operational by the first quarter of 2005, will consist of a 500K metric-ton-per-year rail terminal that will meet the immediate needs of the market, Perez said. The second phase will consist of the construction of a 1 million metric-ton import terminal.

Cemex Inc. has 13 cement plants and 52 land and marine terminals serving 30 states. It also operates 86 ready-mix plants and 23 aggregate facilities.