Tough Days Ahead for Transportation

State departments of transportation are slashing budgets and deferring projects as revenues take a big hit in a weak economy

DOTs Announce Billions in Cutbacks

Faced with a weak economy and significantly reduced state and federal revenues, local departments of transportation are painting a grim outlook on highway and transit construction in the coming year and beyond.

Five months after slashing its construction budget, the Virginia Department of Transportation is eyeing as much as $2.6 billion in additional cuts from its current six-year program. Virginia Secretary of Transportation Pierce Homer announced Oct. 15 that VDOT is planning wide-spread cuts that will affect construction, maintenance and VDOT’s internal staffing.

“In the future, VDOT will be a smaller agency,” said VDOTCommissioner David Ekern. “Safety, emergency response and maintenance of existing roadways will be our top priorities, but we will have to make some difficult decisions to live within our means.”

Changes to the state’s 2009-2014 plan will be finalized in January.

The announcement follows $1.1 billion in cuts made by VDOT in June. At that time, the department focused on the construction program, targeting hundreds of projects including $170 million for reconstruction of the Interstate-66/I-495 interchange in Fairfax County and $45.2 million toward the replacement of South Quay Bridge in Southampton County.

Reta Busher, chief financial officer at VDOT, says the next round of cuts will not only gut much its construction program, but will affect other areas as well. Busher estimates that an additional $1 billion will be cut from the construction program, leaving intact projects that have federal aid commitments.

“Last time, we held maintenance harmless,” Busher said. “The cuts were in the construction program. This time we’re not quite so lucky. I can’t cover the loss of the state dollars in a construction program that’s mostly federal at this point, so we will have to dip into the maintenance budget.”

VDOT also expects to eliminate nearly 900 full-time positions, cancel service contracts and close offices.

Jeff Southard, executive vice president of the Virginia Transportation Construction Alliance, says that the impact will run deep in Virginia because, unlike the vast majority of states, it constructs, operates and maintains the entire road network. As a result, primary and secondary roads will take a hit as well.

“Last year we saw 40% cuts in local roads,” he says. “My guess is that this time, there will be another 40% cut.”

Southard estimates that Fairfax County, which had nearly $29 million in funding for local roads in 1996, could have less than $10 million for those projects in 2009. In light of the grim outlook, Southard says many of his members are downsizing, moving out of state or even closing shop.

“This will be a difficult time for everyone—no one is immune,” he says.

Likewise, Maryland is taking aim at $1.1 billion in project funding that will be deferred in its six-year plan. Transportation Secretary John D. Porcari announced in September that the state’s trust fund would receive $115 million less than projected this year due to the downturn in the motor fuel tax, vehicle titling tax and other fees.

“Without the expected revenue, we have to defer new projects until we can afford them,” he said.

Among the casualties are $60 million for phase 2 of the State Route 5-Branch Avenue Metro project; $53 million for phase 2D of a project on I-70 between State Route 144 and State Route 355; and $85 million for track improvement on the Penn Line from west Baltimore to BWI Airport.

Officials were careful to keep its mega-projects moving forward, including its I-95 EZ Pass toll booth projects and the $2.4 billion Intercounty Connector. However, the ICC didn’t escape completely untouched. A contract for collector and distributor roads, estimated at between $60 and $75 million, was deferred.

Pennsylvania officials are no closer to a solution for its funding gaps. A consortium looking to lease the Pennsylvania Turnpike for $12.8 billion has withdrew its bid after state legislators failed to act on the proposal.

Pennsylvania Transportation Partners, which is led by New York City-based Citigroup and Spanish firm Abertis Infraestructuras, allowed the deal to expire on Sept. 30. The group was selected as the preferred bidder to lease the turnpike in May.

The 75-year lease offer was endorsed by Gov. Edward Rendell as a fix for the state’s looming transportation funding issues. However, it was met with heavy opposition from within the state legislature as well as the Pennsylvania Turnpike Commission. After several deadline extensions from PTP, the General Assembly did not take the proposal to a floor vote before it expired at the end of September.

TN Ward Kicks Soccer Project into Gear

Work is moving ahead on a new $115 million Major League Soccer Stadium being built in Chester, Pa. Ardmore, Pa.-based T.N. Ward was selected by Keystone Sports Entertainment, the team’s ownership group, as the general contractor in September. T.N. Ward beat out more than 20 companies to land the job.

The stadium and entertainment complex, which was designed by Rossetti Architects, is schedule to open in 2010. ICON Venue Group, the owner’s representative, will lead the design and construction efforts.

The stadium is part of The Buccini/Pollin Group’s $500 million Chester waterfront development project which will include office, retail and residential space, as well as an exposition center.

Oorah: Marine Museum Expansion Moves Forward

TRIANGLE, VA – Expansion plans for the National Museum of the Marine Corps in Triangle, Va., are underway. Denver-based Fentress Architects is designing more than 100,000 sq ft of additional historical galleries, office space, a large-screen theater, a permanent art gallery and artist studios, a performance space, classrooms and a display storage facility. The Marine Corps Heritage Foundation is currently trying to raise $85 million toward the expansion. No construction schedule has been set yet.

Fentress is also reworking designs of the museum’s current internal galleries. Work on that phase will begin in January with completion in 2010. The original 120,000-sq-ft museum, which opened in late 2006, was built by Centex Construction for $60 million. The total projects cost was $90 million.

Hill Takes a New Seat at the Table

PHILADELPHIA – A familiar player along the Philadelphia skyline has signed on as a developer of American Commerce Center project in Center City Philadelphia. Marlton, N.J.-based Hill International acquired from Walnut Street Capital all of its interest in the proposed 2.2-million-sq-ft office and hotel tower at 1800 Arch Street. Terms of the transaction, which was announced in September, were not disclosed.

Upon completion, the building would be the tallest skyscraper in Philadelphia and one of the tallest in the Western Hemisphere with a height of approximately 1,510 feet.

In conjunction with the deal, the company formed Hill International Real Estate Partners, which it says will focus on real estate development services on commercial, hospitality and other projects throughout the Mid-Atlantic and Northeast regions.

Hill was the project manager on the city’s current skyline king—the $525 million 1.4-million-sq-ft 975-ft-tall Comcast Center. That building officially opened in June.

Skanska to Dig In on $150 Million Bridge

NORTH BETHANY, DEL – Skanska USA Civil is gearing up to start heavy construction of the new $150 million Indian River inlet bridge in North Bethany, Del. Skanska secured the design-build contract in August and has been in preconstruction through the fall. Construction will begin in early 2009 with completion in July 2011.

The replacement bridge will be 2,600 ft long, including a 900 ft clear span over the inlet with 1,700 ft of bridge over land. All supports will be out of the water, eliminating the conditions that have occurred on the existing bridge. The new bridge will have a minimum 100-year design life. The foundation consists of 36-inch-square piles to be manufactured by Bayshore Concrete Products, a subsidiary of Skanska Southeast. Skanska had previously used these types of piles on the Escambia Bay I-10 Bridges in Florida.

In winning the project, Skanska beat out PCL Civil Constructors and Indian River Constructors, which was a joint venture of Flatiron Constructors and Kiewit Construction.

Apartment Work Moves in on Condo Sector

Although plans for several Mid-Atlantic condo projects have fallen apart during the recent housing collapse and credit crunch, many apartment projects are springing up to fill the void.

Work started in November on The Fitzgerald at UB Midtown in Baltimore—mixed used project with 280 luxury apartments, 14,000 sq ft of street-level retail and dining and a 1,245 space parking garage. The project, which sits on 4.6 acres owned by University of Balitmore, is being developed by a joint venture of The Bozzuto Group, Gould Property Company, the New York State Teachers’ Retirement System and former Baltimore Raven Michael McCrary. The project is financed by a $52 million construction loan provided by Bank of America and RBS Citizens, as well as $23 million in equity from NYSTRS. Bozzuto is building the project, which is scheduled to complete in 2010.

A joint venture of Trammell Crow Residential and Prudential Real Estate Investors is developing Alexan 24, a 217-unit luxury rental apartment community in Arlington, Va. Construction was scheduled to begin this fall with completion in fall 2010. Bank of America is providing a $70 million construction loan. Twenty of the apartments are designated as affordable housing.

Fore Property Company and its CANV Construction affiliate began construction in November on a 226-unit Class-A eco-conscious apartment community in Owings Mills, Md. The project, dubbed 4 Groveton, is located on a 15.6-acre site less than a mile form the Owings Mills Metro station. The combined 238,000-sq-ft project is broken into three buildings with four and five levels. This first buildings will deliver in February 2010 with final completion in August 2010.

A groundbreaking was held in October for the new Wheeler Terrace Apartments in Washington, D.C. The development is set to become the first LEED certified and “Green Communities” affordable housing community in D.C. Turner Special Projects is the general contractor for the project, which is comprised of seven buildings. The 116-unit development project aims to be the first of its kind in the District to be LEED certified, as well as meet Enterprise Community Partners Green Communities criteria.

Catons Ridge Office Park LLC is building a new 200-unit luxury apartment complex near Woodbridge, Va. The project, dubbed Fairfield at Catons Crossing, will feature six four-story buildings. The project is part of the larger Catons Crossing mixed-use development.

Perseus Realty of Washington, D.C., broke ground in September on a new mixed-use project that will include 231 apartments, a 46,000 sq ft YMCA facility and 12,200 sq ft of ground-level retail space.

Forrester Wins $70 Million Navy Yard Project

WASHINGTON – Forrester Construction of Rockville, Md., has been awarded the $70 Million Design/Build Modernization of Building W200 at the Washington Navy Yard in D.C.. The project will involve a full gut, renovation, and modernization of Building W200 including structural upgrades as required for anti-terrorism force protection and seismic criteria; fit out of all tenant spaces; new additions to infill existing lightwell areas; all new building systems such as mechanical, electrical, fire alarm, sprinkler and telecommunications; new elevators; stair towers; and replacement of windows and roofs. The modernization is aiming for silver LEED certification.

The project also includes relocating the Naval Criminal Investigative Service and their Naval Historic Office to temporary swing spaces, demolishing a pedestrian bridge to Building 219, and the addition of 240 parking spaces to Garage 405. The total area for this facility at the conclusion of renovations will provide approximately 247,000 square feet in Building W200 of primarily office space.

The Architect of Record / Design Team Leader is Einhorn Yaffee Prescott. Additional design team members include for mechanical and plumbing engineer EDG2 as well as civil and structural engineer WBCM. Construction is scheduled to be completed by September 2010.

Harkins Lands $62 Million in Contracts

MARRIOTTSVILEE, MD – Harkins Builders of Marriottsville, Md., continues to diversify its portfolio, adding two Armed Forces Reserve centers and two commercial projects to its schedule in the Mid-Atlantic region that represent over $62 million.

The company continues to pursue new military reserve center work. It was recently awarded the design-build contract for a new Marine Corps Reserve Center at Fort Dix, N.J. The $24 million five-building complex will have a reserve training facility with administrative space and drill hall, a vehicle maintenance facility, light gun shed, vehicle holding shed, and organic equipment storage shed. The project will aim for LEED silver certification when completed in 2010.

The company also won the design-build contract for a new $24 million Armed Forces Reserve Center, Vehicle Maintenance Shop, Heated Storage Building, and two Unheated Storage Buildings, in Bristol, Pa. When completed, the project will represent the fifth new reserve center built by Harkins. The company is currently building the Ft. Detrick Reserve Center in Frederick, Md.

Construction began in October for the $9 million medical clinic and headquarters for Health Care for the Homeless in Baltimore, Md. The community organization’s 56,000 sq f. building will be a three-story steel frame structure on caissons and eight-foot grade beams. The team is planning for LEED gold certification.

Harkins is also working on a $5.3 million renovation and new construction project for Howard County Department of Public Works and the Howard County Public Schools at their maintenance facilities in Ellicott City, Md. Harkins will renovate a 30,452 sq ft grounds maintenance facility and erect two new pre-engineered buildings totaling 20,080 sq ft.

Foulger Pratt - $33 m Missile Defense project

FORT BELVOIR, VA – Foulger-Pratt Contracting of Rockville, Md., has been selected with WDG Architecture of Washington to provide design-build services for the $33 million Missile Defense Agency Headquarters Command Center at Fort Belvoir, Va. The 99,000-sq-ft administrative facility that will include an executive suite, reception and access control center, security operations center, sensitive compartmentalized information facilities, special access areas, technical library, computer operations, meeting rooms, and supporting areas. The project is schedule for completion in 2010.

Clark Starts Edmonson Plaza Project

ALEXANDRIA, VA – Clark Construction Group of Bethesda, Md., has broken ground on Edomonson Plaza in historic Old Town Alexandria, Va. The scope of work includes constructing a 115,000sq-ft Class A office building, 77,000 sq ft of below-grade parking, and preserving an adjacent 19th-century building listed on the National Register of Historic Places.

Substantial completion is scheduled for the first quarter of 2010.

SmithGroup, of Washington, D.C., is the project architect and MEP engineer. Other project partners include Theobald Bufano + Associates, of Arlington, Va., as structural engineer; and Bowman Consulting, of Chantilly, Va., as civil engineer.

Sigal Starts at Savoy

WASHINGTON – Sigal Construction Corp of Arlington, Va., broke ground in October on the 96,800-sq-ft Savoy Elementary modernization in Washington, D.C. The school will undergo a complete renovation as well as the demolition and rebuild of the school’s gymnasium. The renovation will include a new entrance and curtainwall system, new roof, and HVAC, as well as the rehab of classrooms, offices, a new multipurpose room and cafeteria. Designed by Bowie Gridley Architects, the project is aiming for LEED Certification upon completion before the start of the 2009-2010 school year.

Oak OKed for Two Towson Schools

TOWSON, MD – The Baltimore County Board Of Education approved a contract in October with Oak Contracting of Towson, Md., to provide construction management services for two new schools in Towson. The new Towson West Elementary School will be situated on the same site as Ridge Ruxton School. Design is well under way by Design Collective, Inc. Construction will start in early spring and the new three-story school will open in August 2010.

The existing George Washington Carver Center for Arts and Technology will be replaced by a new state-of-the-art performing arts center. Grimm + Parker Architects is designing the new high school, which will be constructed adjacent to the current facility while it remains operational. Construction will start in the summer of 2009 and the new school will be ready for occupancy in summer 2011. Once the new school is complete, the existing facility will be removed and the construction waste recycled. Both schools are seeking LEED certification.

RW Murray Adds Two NoVa Jobs

MANASSAS, VA – R. W. Murray of Manassas, Va., continues to find work in the beleaguered retail and speculative office markets. The firm was awarded a $13 million contract in October by Atlantic Realty Companies to construct Pender Village Center in Fairfax, Va. The project includes a two-story 86,000-sq-ft office and retail building, which is part of a 138,921-sq-ft retail center anchored by Harris Teeter.Completion is scheduled for late 2009. Rounds Vanduzer is the architect.

R. W. Murray is also building a $3.3 million four-story 20,000-sq-ft speculative building at Hoadly Road Retail Center in Woodbridge, Va. Completion date is expected in mid-April 2009.