Tuesday Volume 4 Issue 48 Issue Date: August 6, 2013 CONNECTING THE LOCAL BUILDING INDUSTRY Major City-County Capital Spending Tops $8B for 2014 By Eric Jay Toll for Capital improvement programs for budgets include non-construction Arizona Builder’s Fiscal 2013-14 are recovering rapidly expenditures—such as land and from the budget desert. The new right-of-way acquisition—as well Exchange fiscal year that started July 1 saw as capital equipment in the form of capital dollars from major cities and vehicles and computer hardware. did not include any new dollars for counties increase substantially from The numbers, however, show which the stadium development and does 2012-13. Only ADOT and Tucson agencies are making a comeback not include projects proposed for a saw road budgets drop from last from the dark days of recessionary November ballot measure. year. Scottsdale skyrocketed its budgets. Overall, the 10 largest capital budget to more than $500M. capital budgets are up more than 29 Before the Great Recession, agencies Phoenix nearly doubled its capital percent from 2013. filled their five year plans with spending to $1.2B—more than projects. This is not the case today. ADOT’s $1B. MAG is increasing its Many agencies are flush with Although short-term construction outlay four-fold over last year. cash from voter-approved bonds outlooks are improved significantly stemming from the November over 2012-13, there is little in the In 2013, AZBEX listed the ten largest election. Other agencies are looking pipeline beyond 2015. Much of public agency capital improvement at reduced budgets because previous Phoenix’ future capital rests on Sky budgets for Fiscal 2012-13. The major capital projects—such as Harbor and light rail projects. MAG is top 10 list for 2013-14 has a Mesa’s Riverview Stadium—are putting most of its dollars into Loop different complexion. Total capital nearing completion. Mesa’s budget 202 South Mountain Freeway, Loop 303 and Grand Avenue. Without changes in how capital projects are funded, it looks like design and construction opportunities are on the short-term horizon. Most cities and counties are indirectly following ADOT’s plan – preserve existing assets, rather than build new ones. Scottsdale, Mesa and other cities are planning November bond issues for capital projects, but those potential dollars are not included in the CIPs adopted by the local agencies in June. Continued on page 4 Project Solicitations in this Issue: 32 Design/Consultant 56 Horizontal 21 Commercial 14 Products & Equipment 3 Development Opps 20 Utilities 54 Maintenance 12 Permits Issued The Arizona Builder’s Exchange is a compilation of information gathered from the public domain. Individual articles are protected by their respective copyright. The publication as a whole is copyright protected to the Arizona Builder’s Exchange. To forward or share the information with others outside of your firm is a violation of that copyright, punishable by law. 2 Volume 4, Issue 48 Table of Contents Articles 16 3 Solar Doesn’t Have Lock on Future as Major Power Source 9 Phoenix Among Top 10 Cities for Job Growth 12 South Sonoran Parkway Would Link Maricopa to West Valley 13 Yuma Supervisors Take Action on $12M in Roadway Projects 13 ADOT: Highway 89 Fixed in Two Years 14 Bullhead City Section 12 Development Plans 14 APS Set to Take on Rules Issues 17 15 Will ‘Furniture Wars’ Be A Hit In Valley 16 Contractors ‘Dare to be Optimistic’ in Southwest Outlook 16 Wok Box Signs Master Development Agreement for Arizona 17 Arizona’s Housing Industry Recovering 17 South Tucson Business Park Gets New Owner 18 Gateway to Overhaul Signage 24 19 Planned University Campus Would be First for Gilbert 19 New Florence Town Manager Talks Development Issues 20 Gila River Indian Community Members File Complaint 21 Cadillac Coming to Chandler Auto Mall 23 Phoenix-Area Retail Vacancy Rates Declining 23 Macerich Facing Tough Decisions about Fiesta Mall Sections Project Opportunities 21 Classifieds 28 Planning/Design/Inspection/Consultant 22 Permits Issued 32 Development 24 Commercial Real Estate News 33 Horizontal 27 Industry Events 42 Utilities 44 Commercial 48 Maintenance & Alterations 53 Products & Equipment 54 Pre-Solicitations 3 Tuesday, August 6, 2013 Solar Doesn’t Have Lock on Future Meet the as Major Power Source Team! By Ryan Randazzo Despite rapid growth in the solar industry over the past several years, there is one sobering statistic for the Valley of for The Arizona Rebekah Morris - Publisher the Sun. Republic Apple The Phoenix area’s two main power companies get only 480-709-4190 0.65 percent and 2.4 percent of their power from solar. The number is strikingly little for a place so renowned for its [email protected] sunshine, but not surprising compared with the national average of about 1 percent. Rachel Kettenhofen - Editor By 2025, regulated utilities in Arizona will be required to Puma get at least 15 percent of their electricity from renewable 480-227-2620 sources. But utilities can meet the requirement with anything from wind power harnessed in New Mexico to geothermal [email protected] power generated in California. That means there is no guarantee solar will emerge as the renewable fuel of choice Eric Jay Toll - Senior Correspondent for utilities and become the powerhouse industry the state Northwest has hoped for. 602-617-3797 Utilities are close to meeting their state-mandated renewable [email protected] energy goals, which means they will have fewer reasons to keep investing in solar and other alternative fuels. Michele Carey - General Manager The temptingly low price of natural gas is increasingly favored Blue Ivy by utilities as a fuel for power plants and could displace solar. 480-686-4315 Utilities are proposing cuts in power credits for rooftop-solar owners, which could stifle growth in that industry. [email protected] Arizona’s solar development will likely benefit from California, Arizona Builders Exchange which has six times as many people as Arizona and requires utilities to get 33 percent of their electricity from renewable 1400 E Indian School Road sources by 2020. Phoenix, AZ 85014 California has a tremendous appetite for renewable fuels, some of which will likely be produced in and purchased AZBEX News from Arizona. Already, about 65 percent of the solar power generated in Arizona is transmitted to California, according to Once a year AZBEX puts out our CIP issue. the Solar Energy Industries Association. This is it! A compilation of CIP data arranged APS is spending about $500M to build its own large solar- in tables for your reference. power plants. APS and SRP plan to add almost twice as much capacity from Project Opportunities natural-gas power plants as they do from solar and wind over AZBEX - Tip of the Week the next 10 to 15 years to meet customer demand. Know someone who would like this issue? Read more at AZCentral. Note: AZCentral is now premium Let any of us know and we’ll content. Readers are permitted 20 free article views per send them the newsletter with your month. compliments! Paul Burnett, APS Editor’s Picks journeyman lineman, works above solar from the Last Issue panels at APS’ ▶ Omni Hotel, USA Basketball to Develop Flagstaff facility. APS has installed panels $350M Mixed Use Downtown Tempe on 125 homes and a Complex school in Flagstaff. Photo Credit: Cheryl ▶ Going Up! Marina Heights/State Farm 2MSF Evans/The Republic Office Project Transforms Lakefront Click here to return to Table of Contents 4 Volume 4, Issue 48 Major City-County Capital Spending Tops $8B for 2014 (Cont’d) PUBLIC AGENCY TOTAL CAPITAL IMPROVEMENT BUDGETS (FISCAL 2014-2018) Millions of Dollars of all Capital Projects in Budget Agency 2013 Top 10 2014 2015 2016 2017 2018 5 Year Total Phoenix $757.0M $ 1,205.0M $ 462.0M $ 485.0M $ 443.0M $ 563.0M $ 3,160.0M ADOT $1,325.0M $ 1,002.0M $ 1,048.0M $ 808.0M $ 765.0M $ 887.0M $ 4,512.0M MAG $104.0M $ 523.4M $ 546.8M $ 338.7M $ 388.7M $ 434.9M $ 2,232.5M Scottsdale $32.0M $ 514.0M $ 314.9M $ 275.5M $ 230.2M $ 218.1M $ 1,552.7M Arizona State University $ 398.6M ABOR does not publish a 5 year program $ 398.6M Maricopa County $ 364.1M $ 177.2M $ 131.5M $ 125.8M $ 316.5M $ 1,115.1M Pima County $224.0M $ 295.6M Pima County does not adopt a 5 year capital plan $ 295.6M Tucson $312.0M $ 226.0M $ 172.8M $ 152.1M $ 152.9M $ 105.0M $ 808.8M University of Arizona $ 162.3M ABOR does not publish a 5 year program $ 162.3M Valley Metro $ 109.3M $ 204.0M $ 151.3M $ 128.0M $ 109.0M $ 701.6M Tempe $ 108.3M $ 69.9M $ 38.1M $ 42.8M $ 28.4M $ 287.4M Gilbert $ 101.1M $ 26.2M $ 40.3M $ 144.9M $ 84.9M $ 397.4M Mesa $ 89.9M $ 61.5M $ 151.9M $ 134.2M $ 116.4M $ 553.9M Chandler $31.0M $ 77.8M $ 83.5M $ 181.2M $ 48.6M $ 58.7M $ 448.9M Prescott $ 74.0M $ 33.3M $ 33.2M $ 33.5M $ 30.0M $ 204.0M Avondale $ 64.7M $ 37.8M $ 22.2M $ 10.7M $ 6.9M $ 142.3M Yuma County $ 37.7M $ 7.8M $ 7.0M $ 5.1M $ 4.9M $ 64.5M Yuma (city) $ 33.8M $ 41.8M $ 23.9M $ 21.5M $ 23.8M $ 114.8M Surprise $ 20.8M Surprise does not adopt a 5 year capital plan $ 20.8M Fountain Hills $ 19.2M Commercial$ 3.3M Utilities$ 1.6M $ 0.2M $ 24.1M Pinal County $35.0M $ 11.8M Subdivision$ 6.8M Infrastructure$ 5.3M $ 6.0M $ 29.9M Total $ 8,233.4M Public$ 5,053.3M Works $Improvements 4,648.9M $ 4,517.3M $ 4,831.1M $ 17,179.6M Mining and Industrial Sites Loop 303 is Top Capital Project in Arizona is slated for right-of-way acquisition for the Loop 202 [email protected] Mountain Freeway.