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Carolina News - December 2007

Charlotte Voters Support Construction Measures

By Bea Quirk

In the Nov. 6 election, voters in Charlotte-Mecklenburg Co., N.C., resoundingly supported keeping the half-cent sales tax that funds its mass transit system – and $4 billion light-rail project – and also overwhelmingly supported a record $516-million school bond package.

In a result that even surprised mass-transit supporters, 70% of the county’s voters rejected a referendum to repeal the tax, which had originally passed in 1998 with 58% approval.

The $460 million, 9.6-mi-long first leg of the Charlotte Area Transit System’s light-rail system opened later that month, connecting the center city with south Charlotte. With the referendum defeated, the system can now move forward on expansion plans to continue the new line to the north, build a commuter-rail line, and add a streetcar system through the eastern part of the county. The entire system is estimated to cost more than $4 billion and is currently scheduled for completion around 2030.

The tax, which generated about $70 million last year, also helps fund the current bus system.

School bonds passed with 68% support, and two new middle schools and four elementary schools could open as early as 2009. The bonds will pay for construction of 12 new schools and for expansion and renovations at 17 existing ones.

October Contracts: N.C., S.C. Down by Double Digits

Compared to the same period of a year ago, the value of new contracts signed in October for future construction activity fell by 19% in North Carolina and by 15% in South Carolina, according to the latest information from McGraw-Hill Construction.

In North Carolina, the value of new starts totaled nearly $1.7 billion for the month. The residential sector declined again, this time by 13%, for a roughly $1.3 billion total. The value of new nonresidential contracts dropped significantly, by 50%, for a total of about $251.6 million. The value of nonbuilding starts was up again, though, improving by 52% to total nearly $151.3 million.

Through the first 10 months of the year, North Carolina contract activity is 4% behind 2006’s pace, with $20.9 billion in new starts. Despite its October drop, the nonresidential category, at about $5.4 billion, is still 3% ahead of ‘06, and the nonbuilding sector is now 22% ahead, with roughly $2.1 billion in new project starts. Meanwhile, residential is now 9% behind last year’s pace with a $13.4 billion total.

In South Carolina, October contracts fell by 15% for an $808.7 million total. The nonresidential sector improved by 5% over last October for a $234.4 million total. Residential fell 37%, however, for a $409.2 million total. The value of nonbuilding starts more than doubled compared to last October, totaling $165.2 million for the month.

Despite this month’s negative numbers, South Carolina is still 16% ahead of 2006 on a year-to-date basis, with new contracts totaling nearly $12.8 billion so far. Residential remains the only negative sector, with about $5.7 billion in new starts through the first 10 months of ’07 for a 24% decline. Nonresidential, at about $5.9 billion, is more than double last year’s pace. And the nonbuilding sector, at about $1.2 billion, is 15% ahead.

Work Starts on Adidas Distribution Center in Spartanburg, S.C.

According to McGraw-Hill Construction, H & M Construction Co. of Jackson, Tenn., has started construction of a distribution complex for Adidas in Spartanburg, S.C. The project has an estimated value of about $99 million.

The three-building, 1.9 million-sq-ft complex will include a customer service center, two 45-ft-tall distribution warehouses and an 877-space parking area.

McGraw-Hill Construction’s Network reports the contractor started construction in August, with completion scheduled for the latter half of 2009. Adidas Inc. of Spartanburg, S.C., is the owner. Alliance Consulting Engineers of Columbia, S.C., is the project engineer.

Balfour Beatty to Start New Science Center at UNC

McGraw-Hill Construction’s Network is reporting that Balfour Beatty Construction in Durham, N.C., was preparing to start construction in November on a $65 million Physical Science Building at the University of North Carolina in Chapel Hill, N.C.

The architect for the six-building, 166,000-sq-ft project is William Wilson Architects of Boston.

 

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