Mineta Announces $56.5 Million in Grants To Fund Runway Layout for LAX, Soundproofing Nearby Homes

Los Angeles International Airport will have a safer, more efficient runway layout and hundreds of nearby houses will be quieter, thanks to a total of $56.5 million in new grants from the Federal Aviation Administration, Secretary of Transportation Norman Y. Mineta said on Feb. 2.

"We see real progress in making the airport safer, more efficient and a better neighbor," Mineta said. "This has been a long, difficult process, but as a former mayor, I know it is an important one."

A grant for $29.5 million will help pay to relocate one of the airport's four runways further to the south, making room for a new taxiway. The new layout for LAX's South Airfield will make it easier for planes to taxi to and from runways and help avoid take off and landing delays at the airport. Today's grant brings the total federal investment in the runway to $68.3 million, Mineta added. The FAA ultimately expects to invest over $100 million in the runway project.

The runway work also will reduce the number of times aircraft come too close together, known as an incursion, as they make their way to the runway or terminal. Mineta said there were too many incursions at the airport, noting that there were eight in 2005 and seven in 2004. He said that the improvements to the airport's layout should all but eliminate incursions.

"Fixing the runway will make this a safer airport," Mineta said. "And that gives us all reason to be more confident in the safety of flights in and out of Los Angeles."

The other $27 million will help soundproof more than 500 homes in Lennox, El Segundo and Inglewood. The money will pay for double-paned windows, solid doors and better attic insulation, all of which is "intended to give families a break from jet noise," Mineta said

The FAA has invested about $106 million to soundproof more than 2,400 homes in the region since 1998. Ultimately, about 8,000 homes will be modified once work is completed.

During his visit to the airport, Mineta toured the current runway and the area where the runway will be relocated and the new taxiway added. He also met with a nearby homeowner to see new sound-resistant windows, doors and insulation.

The Secretary's Speech can be found at http://www.dot.gov/affairs/minetasp020206.htm.

Builder Optimism Rise for Rentals

Builder confidence in the multifamily rental market surged in fourth quarter 2005, with strong consumer demand becoming evident in all segments, according to results of the National Association of Home Builders' Multifamily Housing Market Index, released on Feb. 9. The same survey also found that multifamily builders do not expect consumer interest in condominiums to remain as intense as it has been in the recent past.

"A balanced and stable multifamily market offers a range of options for people who want to rent an apartment home, and for those who want to buy," said Leonard Wood, chairman of NAHB's Multifamily Leadership Board. "The reports of rising demand for rental apartments and increased apartment starts indicate that this sector of the housing market is moving toward better balance."

The MMI is a quarterly, nationwide survey of multifamily builders and property owners who are asked a series of questions about current market conditions as well as their expectations for the next six months. Survey answers are assigned numerical values to calculate two separate indexes, one tracking rental demand and the other tracking the supply of rental and for-sale units. The scale is from 1 to 100, with a rating of 50 generally indicating that the number of positive responses is about the same as the number of negative responses.

All classes of apartments exhibited substantially greater demand in fourth quarter '05 compared to the previous fourth quarter. The biggest increase was reported for top-tier Class A apartments, which rose 17 points on the MMI's index from a year ago to a current index value of 62.3. Demand also was higher for both mid-range rentals and lower-rent apartments compared to a year ago, with their current index values gauged at 59.5 and 58.0, respectively.

"Our survey of builders indicates such positive trends should continue over the next six months," said NAHB Chief Economist Dave Seiders. "For the first time since the beginning of 2005, builder expectations posted an above-60 reading for every class of apartment."

Meanwhile, the index tracking the number of apartments available for rent continued its downward trend, falling 10.5 points from an index value of 56.4 in the fourth quarter of 2004, to 45.9 in fourth quarter '05.

On the supply side, builders and developers see a continuing strong market for new apartments, with lower-rent apartments the strongest, at an index value of 52.6. The index that tracks for-sale multifamily supply fell 10 points to 47.1 since last years' fourth quarter.

In addition to the regular survey, respondents were asked special questions about condo conversions. Compared to each of the previous two years, more than twice as many respondents - 15 percent - reported having converted rental units to condominiums in 2005. And 20 percent - up from 13 percent in '04 and in '03 - reported that they currently are building rental units with a view toward converting them to for-sale units in the next three to five years.

The majority of those surveyed do see a "moderate oversupply" in today's condo market, but builders in the South were those most likely to report a moderate or substantial shortage despite the fact that South Florida is generally regarded as being oversupplied with condos. Midwestern builders reported an oversupply - which may be more accurately described as an under-supply of buyers, since relatively few condos are being built in the Midwest outside of major cities.

Groundbreaking for SF's Contemporary Jewish Museum Set for July

The capital fundraising campaign to finance the construction of the innovative Contemporary Jewish Museum in San Francisco's Yerba Buena district has totaled $35 million, enough to announce the start of construction in July.

Stacey Silver, director of marketing and public communications for the CJM, said that the $35 million raised so far (the goal is $75 million) was reported to the San Francisco Redevelopment Agency last week.

In order to keep the costs under control, the architectural team of Studio Daniel Libeskind with WRNS Studio & Chong Partners Architecture a year ago completed a revised design for the new 60,000-sq.-ft. facility.

The plans are for an adaptive reuse of the historic Jessie Street Power Substation, originally designed in 1907 by Willis Polk and located off Mission Street, as well as a new addition.

The museum has been exhibiting in its gallery space at 121 Steuart Street for over 20 years, and the proposed plans will allow the CJM to expand its mission and programming.

Libeskind's plan includes the renovation of the Jessie Street Power Substation, which has been vacant for almost three decades. Libeskind's design preserves the character defining features of Polk's original structure -- most notably its red brick southern facade, the trusses and skylights, and the large volumes of space -- and integrates it with "a striking addition," according to the CJM, based conceptually on the profoundly significant Hebrew word "L'chaim," or "To life!" From the outside of the building, the addition will be most remarkable for its unique shape as well as its skin: a vibrant blue metallic color.

In addition, the museum will include a multi-purpose space with accommodations for seating 250 visitors, designed for film/video and intimate theatrical performances, including comedy, lectures, storytelling, discussions, and readings. The facility will also feature a museum shop and a cafe with outdoor seating facing a public plaza that will be renovated by the SFRA.

Currently underway at the site is excavation work being done by the City of San Francisco on an underground parking facility. Located beneath Jessie Square and the surrounding plaza, the garage will be available for museum visitors.

Plant Constuction Co. is the general contractor on the project. Other partners in the venture include Architectural Resources Group and KPM Consulting, the project manager.

In working with a historical building, Libeskind formed a joint venture with San Francisco architectural firm Chong Partners Architecture, known for its respect of history and its integration of sustainable design practices into the planning, design, construction and operation of its buildings.

Completion is scheduled for late 2007.

Panattoni Development Names Officials

The executive committee of Panattoni Development Co. LLC announced new titles of responsibilities for its top corporate officials last week.

Carl Panattoni retains the title of chairman. He will devote a significant amount of time to the firm's European operations, as well as exploring new business ventures.

Dudley Mitchell moves up to the position of CEO. His responsibilities include the oversight of the company's Retail Group, and its Canadian operations.
Greg Thurman has been promoted to president overseeing development operations in the United States and continuing to monitor offices in the Atlanta and Chicago markets.

Panattoni Development Co. is a privately held, full service development company founded in 1986 by Carl Panattoni. During the last five years the firm has averaged nearly 10 million sq. ft. of development annually, one of the most active records in the United States. PDC has developed and managed industrial, office and retail facilities in more than 100 markets.

Midstate Adds Staff

Petaluma-based Midstate Construction recently made some changes at its head office.
New hires include Scott Council, who joins Midstate in the estimating department, and June LeGare as a project coordinator.

Promotions include Becky Johnson from project coordinator to project engineer, Greg Schank to retail project manager, and longtime Midstate employee Vic Zimmerman to vice president, labor and safety to help with labor relations in the field.