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Digital Magazine Friday September 28, 2018 Volume 9 Issue 63 Digital Magazine Approved Capital Improvement Plans Show Sustained Growth in Public Sector By Rebekah Morris for Arizona Builder’s Exchange The final tally is coming in for this year’s budget season, namely, the Capital Improvement Plans for major municipalities. The next five years appear rosy for publicly funded infrastructure and public works projects, a boost of 7.28 percent in the five-year totals from last year. That is notable in percentage increase Y-o-Y and in the strength of recovery: The Top 10 programs have rock- eted up 39 percent off the low set in FY15. Notable Program Changes Construction in the public sector depends on tax revenue, espe- ADOT has officially handed off the reigns to theCity of Phoenix cially property taxes, revenue bonds and – in some cases – sales as the top Capital Program in the state. For the past seven years, tax revenue. The strength of the overall economy typically leads ADOT has sat atop the leader board. It led last year with a $5.47B to increased tax coffers, which ultimately leads to investment in five-year program, while Phoenix came in at #2 with a healthy infrastructure systems like roads, water and wastewater systems, $4.89B total. This year they have effectively switched places: parks, et cetera. Phoenix’s five-year CIP total now sits at $5.65B, and ADOT has $4.989B. The increase for Phoenix tops 15.5 percent, while ADOT The protracted length of the economic recovery was desperately decreases its five-year by 8.77 percent. needed to replenish municipalities’ reserves and capital funds depleted by the Recession. Local agencies CIPs stayed depressed Valley Metro, City of Mesa and Maricopa County round out the for a long time. From the low point in FY2012 through 2016, the top 5, with totals of $2.3B, $1.6B and $1.4B, respectively. Valley sum of the top capital programs hovered around $13B. Only Metro and City of Mesa also show enormous growth in their in FY2017 did the aggregate total jump up 5.2 percent. Then totals, jumping up 26.77 percent and 36.01 percent respectively. FY2018 had a massive 24.9 percent increase, and in 2019 we see 5 a 7.28 percent increase again. Sustained Year-over-Year growth in the five-year total, combined with broadly projected economic growth for the next three years, bodes well for a continued positive outlook in this and all construction market sectors. Total Approved CIP Budgets (In $M) % Change Agency FY13 FY14 FY15 FY16 FY17 FY18 FY 19-23 Y-o-Y ADOT $5,790.0 $5,652.0 $5,487.0 $5,461.4 $4,548.8 $5,469.2 $4,989.3 -8.77% Phoenix $3,227.0 $3,160.0 $3,235.4 $3,192.4 $3,515.7 $4,885.7 $5,648.2 15.61% Valley Metro $741.0 $701.6 $692.2 $669.0 $1,163.3 $1,821.7 $2,309.4 26.77% Mesa $859.0 $554.0 $978.0 $835.7 $1,421.1 $1,193.1 $1,622.7 36.01% Maricopa County $1,179.0 $1,115.1 N/A $823.8 $1,302.4 $1,422.2 $1,428.4 0.44% Gilbert $562.9 N/A $508.9 $786.2 $857.2 $958.6 $993.4 3.63% Scottsdale $838.0 $1,552.7 $705.2 $671.4 $678.9 $667.4 $620.7 -7.00% Tempe $308.1 $305.5 $383.0 $412.8 $474.1 $574.0 $648.7 13.01% Peoria N/A $524.4 $430.4 $466.8 $417.5 $488.7 $508.1 3.97% Glendale $216.0 $209.0 N/A N/A $374.0 $476.1 $495.0 3.97% TOTALS $13,721.0 $13,774.3 $12,420.1 $13,319.4 $14,752.9 $17,956.7 $19,263.9 7.28% Design/Consultant 34 Horizontal 35 Commercial/Sub-Bids 56 Products & Equipment 10 Development 4 Utilities 16 Maintenance & Alterations 43 Bid Results/Awards 54 © 2018 Arizona Builder’s Exchange, LLC, All Rights Reserved. Reproduction in whole or in part without written consent of the publisher is PROHIBITED. Copyright violations will be enforced to the fullest extent of the law. 2 Friday September 28, 2018 Volume 9 Issue 63 OUR AKAs MEET THE TEAM! Arizona Builder’s Exchange REBEKAH MORRIS WHY DON'T 1690 N McClintock Dr. PRESIDENT ISLANDS JUST 480-709-4190 Tempe, AZ 85281 FLOAT AWAY? [email protected] NEWS & EVENTS WHAT RACHEL KETTENHOFEN CONSTITUTES VICE PRESIDENT OF OPERATIONS A STUPID 480-227-2620 Next Leading Market Series: QUESTION? [email protected] Sports Facilities on October 4th. ROLAND MURPHY Click here to register! WHY DOESN'T PI EDITOR & COMMUNICATIONS DIRECTOR Public Works Conference is Oct. 18th! TERMINATE OR 602-292-2012 Check out the program here! REPEAT? [email protected] LYA PARRISH WHY ISN'T 11 RESEARCH MANAGER PRONOUNCED TIP OF THE WEEK 602-319-4912 ONETY-ONE? [email protected] Attention General Contractors! TASHA ANDERSON We can increase your sub-bid response by WHAT'S THE RESEARCHER & ASSISTANT EDITOR placing a sub-bids request in our Sub-Bids NUMBER FOR section of Projects Bidding. Just send your 623-565-4763 9-1-1? invitation and a link to the plans to [email protected] [email protected]. KRISTEN AMADO HOW DO YOU MARKET RESEARCHER REMOVE A CLUB 480-459-0525 SODA STAIN? EDITOR’S PICKS [email protected] AMANDA MURRAY WHO'S IDEA Broken GDLE Subdivision Becoming Niche Apts. OFFICE ADMINISTRATOR WAS IT TO DRINK 480-600-8693 St. Patrick’s in Scottsdale Ready for Updates COW'S MILK? [email protected] KRISTEN MIRAGLIA WHY ARE SOFT EVENTS COORDINATOR BALLS HARD? 602-326-4728 DATABASE [email protected] LAUREN HOLCOMBE This icon will be displayed WHY ARE on the articles entered MARKETING COORDINATOR MONDAYS SO into our database. Each 480-233-1782 HARD? project will have in-depth [email protected] research and details as well as contacts. OUR AKA’S FROM THE LAST ISSUE: COMIC BOOKS © Arizona Builder’s Exchange, LLC 2018. All Rights Reserved. Forwarding not permitted. 3 Friday September 28, 2018 Contents Volume 9 Issue 63 ARTICLES IN THIS ISSUE 1 Approved CIPs Show Sustained Growth in Sector 1 8 Gilbert OKs Apartments Despite Resident Complaints 9 Construction Eyes Future with Fewer/No Guest Workers 10 Phoenix Moves Ahead with Light Rail Despite Opposition 11 Unfinished 202 Expansion Spurs Development 12 Watermark Finds $105.5M in Financing 13 Pederson Planning N. PHX Residential/Mixed-Use 8 14 New Housing for Tempe’s Broadway Road Corridor 16 ASU Tweaks Thunderbird Glendale Redevelopment Plan 18 Developer Launches Opportunity Investment Funds 19 Surprise P&Z Advances Box Co. Project 20 Prop 463 Won’t Solve All Pima County Road Problems 21 131-mile Tucson Loop Could Get Extensions 22 Phoenix Considers Water Rate Hike for Shortage Prep 11 23 Florence’s Development Services to be Split Up 24 Phoenix 16th in National Office Markets Rankings 25 Careers in Construction Month Participation Tips 33 Panel: Fundamentals Will Keep Phoenix CRE Strong This table lists articles in this issue that PRIVATE PPS contain Private Project Opportunities. Private Work Opportunities in this Issue Project Page Product Type Owner Design Firm GC Liv at Gilbert Crossroads, Rockefeller Group/ Whitneybell Perry Page 8 Multifamily Not yet selected Gilbert Liv Communities Architects Watermark Tempe Page 12 Multifamily Fenix Development Nelsen Partners Okland Construction Pederson Group Mixed-Use/ Page 13 Mixed-Use The Pederson Group Not available at press time Not available at press time Residential, Phoenix Quyp Development Broadway Apartments, Tempe Page 14 Multifamily BMA Architecture Not yet selected Services, LLC Seattle/Tacoma Box Company Seattle-Tacoma Box Page 19 Industrial FM Group, Inc. GSS Companies at Surprise Pointe, Surprise Company © Arizona Builder’s Exchange, LLC 2018. All Rights Reserved. Forwarding not permitted. 4 Friday September 28, 2018 Contents Volume 9 Issue 63 SECTIONS IN THIS ISSUE 12 26 Classifieds 27 Industry Professionals 28 Bid Results & Project Awards 34 Arizona Projects 35 Industry Events 14 PROJECT SOLICITATIONS 36 Design / Consultant / Planning / Inspection 41 Development 42 Horizontal 49 Utilities 51 Commercial 19 55 Sub-Bid Requests 60 Maintenance & Alterations 66 Products & Equipment 34 WORKERS WHEN YOU NEED THEM! PHOENIX: 602-682-7855 MESA: 480-983-3600 TUCSON: 520-858-0577 © Arizona Builder’s Exchange, LLC 2018. All Rights Reserved. Forwarding not permitted. 5 Friday September 28, 2018 Volume 9 Issue 63 Approved CIPs Show Sustained Growth in Sector (Cont’d) 1 City of Phoenix The City of Phoenix has been on a serious upswing since T2050 was passed by voters in August of 2015. The sales tax initiative funds transportation projects over the next 30 years. At first it was a trickle into the long-range capital program; now the reve- nue stream is strong and steady. Projects such as light rail exten- sions and roadway improvements are funded with this measure. Another notable reason for the massive increase in CIP projec- tions is the proposed water rate increase the city is discussing (See page 22). The rate increase will fund investment in the water system for years to come, including a $500M Colorado River Resiliency Plan. Newly added projects in the water and Credit: Valley Metro wastewater departments top $350M, with more likely to come. Mesa The City of Mesa is setting a new high-water mark in this cycle with their five-year Capital Improvement Plan total of $1.622B, a 36 percent increase over last year’s total. The main reason for the increased funding is a proposed $300M bond for public safety and facilities on the ballot in November.
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