Tampa Report

Market Shows Renewed Vigor With Major Projects

by Debra Wood

Tampa's construction market remains strong, with low interest rates fueling private development and a continuing influx of new residents forcing infrastructure improvements.

"The market is still continuing to get stronger," said Steve P. Cona Jr., president/CEO of Florida Gulf Coast Chapter of Associated Builders and Contractors. "There are quite a few jobs out for bid, and also a lot of our subcontractors are beginning to get backlogs."

An example of Tampa's prospects for this year is the $93 million Towers at Channelside project, a mixed-use development of 260 residential units spread across twin 30-story towers. The City Council gave the project a green light in January when it approved rezoning of the area.

Overall, schools, roads and health-care construction remain robust, with new starts in the hospitality and retail sectors lagging but not dormant.

"I think it's going to be not a boom year, but a steady year for job opportunities and projects," said Cona, adding that contractors seem more upbeat than in past years.

Fred Hames, executive vice president of Skanska USA Building in Tampa, said his company has many exciting projects under way, especially in the school and health markets. And Beck managing partner Sam Ellison of Tampa said that last year, in what was supposed to be a down market, was the best ever for his company.

Schools

A number of construction and renovation projects exist in public kindergarten-through-grade-12 facilities. Industry experts said population growth and Florida's class-size amendment, passed by voters in 2002, are the driving forces behind primary-school construction.

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Skanska, Beck and other firms are building extensively throughout the Bay area. Beck has five schools under construction and one in preconstruction.

Skanska also is busy with university projects. It planned to break ground at the end of January on a $30 million, two-building project to launch the University of South Florida Research Park.

Transportation and Infrastructure

Roadwork also has contractors busy. Granite Construction of Tampa continues work on Interstate 4/Interstate 275-interchange improvements, scheduled for completion in 2006. The $79.5 million project includes eight new bridges, widening of 18 existing bridges and other roadwork to physically separate downtown drivers from through traffic.

Gilbert Southern Corp. of Sunrise, Fla., is scheduled to begin making capacity and safety improvements on a 3.2-mi. stretch of I-4. The $156.5 million project will double the number of driving lanes, from four in each direction to eight. The Florida Department of Transportation estimates completion in 2008.

Another FDOT project, awarded to Jones Brothers of Orlando, will widen I-275 in Pinellas County from four to eight lanes from Roosevelt Boulevard to Fourth Street. The $33.2 million job, set to wrap up this fall, includes ramp improvements and rehabilitation of concrete slabs in existing travel lanes.

Hubbard Construction of Orlando began work last year on improvements, including fly-over bridges, to U.S. Highway 19 in Pinellas County. The $45.9 million project is scheduled for completion by early 2007.

PCL Civil Constructors of Tampa is replacing the existing bascule Memorial Causeway Bridge with a high-level fixed bridge. Despite some problems, it is expected to be completed this summer. The contractor also is working on the Reversible-Lanes Bridge above the Lee Roy Selmon Crosstown Expressway for the Tampa-Hillsborough Expressway Authority. The $140 million, 6-mi. project is scheduled for completion in 2005.

Clancy & Theys Construction Co. of Orlando received the contract to build the Pinellas Suncoast Transit Authority's 160,000-sq.-ft. operations center, scheduled to finish in 2005.

Activity remains strong at Tampa International Airport, where Beck is building a new 16-gate, 271,000-sq.-ft. airside terminal that will be used primarily by Southwest Airlines. The project includes a new baggage conveyor system and a four-car passenger shuttle. Skanska USA's Aviation Group continues work on $130 million in security enhancements at the airport.

Culture and Entertainment

The Florida State Fair Authority and Clear Channel Entertainment's Music Division broke ground last fall on a $23 million, 9,900-seat amphitheater at the fairgrounds, despite Mayor Pam Iorio's opposition and fears it will hurt downtown businesses. R.J. Griffin & Co. of Orlando received the contract.

The mayor held up groundbreaking for the Tampa Museum of Art's 150,000-sq.-ft., $44 million replacement structure until all private donations for funding the project are in place. Skanska, which will build the museum with Beck, expects construction could start within a year.

Health Care

"Health care is probably our most active market as far as big jobs," Skanska's Hames said. "Every big hospital in our area is undergoing a major growth surge."

Hames attributed the increase in this sector to the population growth and the need for additional health-care services as baby boomers age. He said Florida has ceased to be a seasonal area, so hospitals must prepare for a steady flow of patients year-round.

The company is completing a $10 million interior build-out at the H. Lee Moffitt Cancer Center and Research Institute vivarium and laboratory research facility. The project, scheduled to wrap up this fall, includes technical space with containment barriers, pathogen-free and quarantine space, and support areas.

Skanska also has begun preconstruction work on a $65 million, four-story addition to Tampa General Hospital that will break ground in fall 2004. The new structure will rise above an existing parking area and will provide 280,000 sq. ft. of space for a new emergency department and Level 1 trauma center, a women's center and intensive-care suite.

Brasfield & Gorrie of Safety Harbor, Fla., is building a six-story heart unit for Morton Plant Hospital in Clearwater. The project includes a 100-bed expansion, consolidation of women's services and upgrades to the operating rooms and other treatment areas.

University Community Hospital began work last fall on the Pepin Heart Hospital & Research Institute, an all-digital hospital. The $32 million facility is expected to open by mid-2005.

Commercial

Although most spec office construction slacked off, some commercial owners opted to take advantage of low interest rates and good pricing from contractors. For example, Beck is building Corporate Center Three at International Plaza for Crescent Resources of Tampa. The 10-story, shell office building should be complete in May.

It is the second building Beck has built for Crescent at the location. More recently, Beck broke ground on a building for The Progressive Corp. group of insurance companies.

"We're getting more and more calls from corporate customers inquiring about pricing of new facilities," Ellison said. "I see more optimism about capital expenditures."

High-end multifamily housing is keeping some contractors occupied. Beck will complete construction of the Victory Lofts at Channelside this fall. Deep foundation work and footings are complete, with the concrete frame expected to come out of the ground on the two buildings early this year.

"A lot of redevelopment is happening," Hames said. "People are pulling back on sprawl and getting focused on more in-town development."

A joint venture between RKC Construction and Suitt Construction Co., both of Orlando, plans to complete ParkCrest at Harbour Island, a nine-story, 336-unit apartment complex, in downtown Tampa by the end of the year.

For in-town shopping, Skanska is replacing the landmark Walter Industries buildings with a $30 million, two-story retail center developed by Morin Development Group of Tampa.

Trammell Crow Co. of Tampa plans to redevelop the former Port Authority headquarters into the mixed-use Port Ybor Industrial Park. The $75 million design-build contract has not been awarded yet.

A joint venture of Welbro and Ellis-Don Construction is building a nine-story, 300-room Renaissance Hotel at the International Plaza mall near Tampa airport for CNL Hospitality Corp. of Orlando.

Beck broke ground in August on a new theater-style, 5,000-seat sanctuary and education facilities for Idlewild Baptist Church in Lutz. Ellison said Beck has seen an increase in church construction since Sept. 11, 2001.

Cona said that with so much building activity in the market, skilled workers will continue to be hard to find. He expects subcontractors will become more involved in training programs through ABC and other entities. Overall though, "It's going to be a very stable year," he added.

Useful sources:

Interstate 275
http://mytbi.com/content/users/projectinfo.asp?projectID=43&RoadID=1

I-4 reconstruction
http://mytbi.com/content/users/projectinfo.asp?projectID=35&RoadID=3

I-4/I-275 Interchange
http://mytbi.com/content/users/projectinfo.asp?projectID=44&RoadID=2

Tampa-Hillsborough Expressway Authority Reversible Lanes Bridge http://www.tampa-xway.com/