$1B Port of Miami Tunnel Project on Hold

The carefully crafted public-private partnership developed to build the estimated $1 billion Port of Miami tunnel has fallen apart, with the equity partner Babcock & Brown of Australia bailing out of the deal, but area elected officials hope to keep the project alive.

“We’re looking at everything and will take a step back to look at the opportunities and options,” says Florida Department of Transportation spokesperson Dick Kane.

FDOT selected in February 2008 Miami Access Tunnel, comprised of Bouygues Publics Travaux of France and equity partner Babcock & Brown, to design, build, finance, maintain and operate the bored tunnels. The tunnels would have rerouted trucks out of downtown Miami, providing direct access to the port from the MacArthur Causeway.

Babcock & Brown could not confirm to FDOT that it had the financial ability to close the deal between MAT, FDOT, the City of Miami and Miami-Dade County. Earlier this month, Babcock & Brown requested the Australian Stock Exchange suspend trading of its shares and subordinated notes until it receives a final response from its lenders to its proposed restructuring.

In December, FDOT announced it would not close the deal with MAT, but area legislators and other officials convinced Secretary Stephanie C. Kopelousos to evaluate other options and keep the money allocated to the tunnel project in the work plan. FDOT had committed to pick up half of the capital costs, $457.5 million, and $200 million for operation and maintenance.

Bouygues Publics Travaux and Babcock & Brown did not respond to requests for more information. By Debra Wood

Odebrecht-led JV Wins $360M Metrorail Airport Contract

The Miami-Dade Board of County Commissioners has awarded a joint venture led by construction firm Odebrecht of Miami a $360 million contract to complete the first phase of Miami Metrorail’s three-phase Orange Line expansion. The 2.4 mi-long Airport Connection, planned for completion within three years, will connect the Miami Intermodal Center, currently under construction at Miami International Airport, to Metrorail’s Earlington Heights station, linking the airport to the existing rapid transit network.

Odebrecht-Tower Community Joint Venture is led by Odebrecht as a 50% stakeholder, in conjunction with The Tower Group (25%) and Community Asphalt (25%), both of which are controlled by Spain’s OHL construction group. Under terms of the contract, 25% of construction work on the project must be carried out by the joint venture itself, with another 12% carried out by disadvantaged business enterprises.

“We are very pleased to participate in what we hope will be the beginning of several steps to improve public transportation across Miami-Dade County,” Gilberto Neves, CEO of Odebrecht in the US and principal for the joint venture, said in a press statement.

The project will provide rapid access to the airport from Downtown Miami, Dadeland and Hialeah. The contract includes construction of three substations, passenger station, bus station and the upgrade or construction of several connecting roadways.

Also, Odebrecht is set to break ground soon on the MIA Mover, an automated people mover connecting Miami International Airport with the Miami Intermodal Center, completing the link to the Airport Connection. The contract for the 1.27-mi MIA Mover, also being built under a joint venture, includes the full turnkey design, engineering and construction.

Drop in Tourism Tax Imperils Construction of Orlando’s Venues Projects

A sinking economy that has meant fewer tourists in Central Florida and dropping hotel room rates has led to a nearly 5% decline in tourist development tax revenue during the last six months, significantly damaging the City of Orlando’s plans for a $425 million performing arts center and a $175 million renovation of the Florida Citrus Bowl.

“We are currently reviewing cost-reduction measures including timing, project schedules, site configuration and other opportunities to reduce the overall project budget,” Orlando Mayor Buddy Dyer says in a written statement.

The projects are part of a three-venue, downtown improvement package, totaling more than $1 billion, with $540 million funded with tourist tax dollars. Other money comes from state sales taxes, which are also down; downtown Community Redevelopment Agency bonds; and private philanthropy.

Turner Construction Co. of Orlando is the program manager for the $480 million Orlando Events Center, which was designed by HOK Sport of Kansas City, Mo. A group led by Hunt Construction Group of Tampa is progressing on its $280 million general construction contract. Project officials broke ground on the arena in July 2008.

The events center is funded partly with $270 million derived from tourist development tax bonds issued in March 2008. The city guaranteed $170 million of the bonds and the Orlando Magic basketball team the remaining $100 million.

As a result of the drop in tourism dollars, the performing arts center and the stadium renovations projects could be delayed.

For the $425 million performing arts center, the city has been in negotiations with Balfour Beatty Construction of Orlando to lead this venue’s construction. The center’s design team includes: HKS Architects, and Baker Barrios Architects, both of Orlando, production architects; Barton Myers Associates, Los Angeles, design architect; and Artec Consultants, New York, acoustical design.

Orange County announced in mid-January that tourist tax collections were down in November by 13%. It is adjusting the fiscal year 2009 budget to reflect a 5% decrease from last year but acknowledges further adjustment may be required as the year progresses. The State Revenue Estimating Conference has projected a 10% decrease this year.

Even the 5% drop would severely affect the city and its performing arts and stadium projects, which rely on $130 million and $140 million, respectively, in tourist tax bonds.

Katherine Ramsberger, president of the Dr. P. Phillips Orlando Performing Arts Center, sent a letter to supporters, who have donated $86 million collectively to the center, saying that the organization “may need to make adjustments to our programs and plans. As the city reviews its position, we also are taking steps to identify areas where greater efficiency and savings will be achieved while still maintaining the highest level of project integrity.” By Debra Wood

Progress Energy Awards Shaw, Westinghouse Contract to Build Nuclear Plants

In January, St. Petersburg, Fla.-based Progress Energy Florida signed a $7.65 billion engineering, procurement and construction contract with the consortium of Monroeville, Pa.-based Westinghouse Electric Co. and the Shaw Group of Baton Rouge, La., to build two new AP1000-based nuclear units in Levy County.

The Nuclear Division of Shaw’s Power Group and Westinghouse Electric Co. will deliver two AP 1000-based nuclear units that the utility plans to build at an undeveloped site in Levy County. The AP1000 units each have an electric generating capacity of 1,100 megawatts.

“The decision by Progress Energy to proceed with an EPC contract is further proof that electric utilities support a nuclear renaissance that will provide ratepayers with safe, reliable and carbon-free generation of baseload electricity,” J.M. Bernhard Jr., Shaw's chairman, president and chief executive officer, said in a press statement.Shaw stated the new nuclear plants will enable Progress Energy to retire older fossil-fired units in Florida.

In July, Progress Energy cleared its first regulatory hurdle when the Florida Public Service Commission unanimously approved Progress Energy’s “determination of need” petition. A decision on Progress Energy’s second regulatory filing, a Site Certification Application submitted to the Florida Department of Environmental Protection in June, was still pending at presstime. Finally, a decision by the U.S. Nuclear Regulatory Commission on the utility’s combined construction and operating license application is expected by early 2012.

According to Shaw, the first AP1000 unit at Levy County is expected to be operational in 2016, pending the appropriate regulatory approvals. The second unit would begin commercial operation a year later.

Portions of the AP1000 units will be assembled at a 600,000-sq-ft module assembly fabrication that Shaw previously announced it will build in Lake Charles, La. The facility will primarily produce structural, piping and equipment modules for AP1000 nuclear power plants.

Florida’s Nightmarish ’08 Ends 38% Down Compared to ‘07

McGraw-Hill Construction, publisher of Southeast Construction, reported that the value of new Florida contracts signed in December declined by 42% overall, compared to December 2007. According to the latest report, the value of December contracts for future construction totaled approximately $1.7 billion, compared to the preceding December’s nearly $3 billion total.

For the most recent month, all three sectors used by McGraw-Hill Construction again experienced double-digit percentage declines. Residential fell 39% compared to last December to total $582.7 million. The nonresidential sector fell 34% to total $726.6 million, compared to last year’s $1.1 billion tally. The nonbuilding sector declined by 56% to total $406.4 million.

The preliminary final tally for the total value of 2008 contracts is an estimated $30.9 billion, or 38% behind 2007. Residential finished the year 46% behind 2007, and was valued at about $12 billion. Nonresidential finished 25% behind ‘07, with approximately $13 billion in new starts. The nonbuilding sector ended up 42% behind 2007, with about $5.9 billion in new projects.

Auld & White Renovating Jacksonville’s Prudential Building

Auld & White Constructors of Jacksonville has begun a three-floor renovation of 58,000 sq ft of office space, common area restrooms and elevator lobbies in the Prudential Building in downtown Jacksonville. The project includes demolition and complete renovation/build-out of the 14th, 15th and 18th floors, including installing new finishes and flooring throughout, developing new office layouts, installing new mechanical and electrical systems and a new server room.

Third Phase of Broward Affordable Housing Project Starts as First Two are Completed

Carlisle Development Group, one of the largest affordable housing developer in Florida, and the Housing Authority of the City of Fort Lauderdale, whose mission is to assist low-income families with affordable housing, announced the grand opening of Dixie Court Apartments I and II, and the groundbreaking of Dixie Court Apartments III. The new Dixie Court affordable housing community includes 154 apartments completed in the first two phases, with an additional 100 apartments in the third phase to be completed in late 2009.

The entire community is built in a Community Redevelopment Area. Dixie Court Apartments I and II, with a construction value of $25 million, is a garden-style apartment complex consisting of 66 one-bedroom/one-bathroom units, 60 two-bedroom/two-bathroom units and 28 three-bedroom/two-bathroom units. The third phase consists of 76 two-bedroom/two-bath units and 24 three-bedroom/two-bathroom units with a construction value of $16 million.

Targeting low-income families and seniors, all phases of the development have amenities and services on property and are being developed using green elements such as low-flow water fixtures and energy efficient appliances.

“Dixie Court is the first of many properties in Fort Lauderdale that we plan to revitalize and redevelop,” said Tam English, executive director, Housing Authority of the City of Fort Lauderdale. Approximately 50% of the first two phases have been leased and monthly rental rates range from $400 to $1,110 depending on the size of the unit and the tenant’s income.

Amenities include a community clubhouse, computer lab with wireless internet, library, car care area, shuffleboard court and playground.

Wharton-Smith Breaks Ground on Maitland Police Building

Wharton-Smith Construction Group of Lake Monroe and ACi Architects of Winter Park recently broke ground on the City of Maitland’s new Edward Doyle Police Building.

The new facility will be a two-story, 17,289 sq-ft building. The ground floor will consist of reception, records, quartermaster, evidence processing, storage and three high-security prisoner holding cells off of a secured sally-port and secure entrance. The second floor will consist of the department’s administration offices, including offices for the chief of police and other commanders. Additional features include larger office areas for the detectives and the community policing officers and a large, multi-purpose conference and training room.

The project is scheduled to complete in October.

This building has been designed to earn Silver LEED certification.

Stiles Starts on Publix-Anchored Shopping Center

Fort Lauderdale-based Stiles Corp. has started construction on Shoppes at Avalon, a Publix-anchored shopping center in Hernando County’s Spring Hill community. Stiles and Publix are developing the project as joint venture partners, with construction of the 64,000-sq-ft center scheduled to complete in the fall.

The shopping center will include 17,150 sq ft of in-line retail/office space, as well as eight outparcels available for sale or lease. The center includes a 45,600-sq-ft Publix.

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