The Floridian

[DaiDreamer5]

I hope I'm right about this....as I drove by earlier today it appeared that Hertz has FINALLY moved out of the old BP station. There was no signage, no cars, no signs of life at all but I didn't have time to go back to confirm if they are really gone. If so, maybe we'll see some activity at this site soon...yeah!!!

Hertz moved to that green building across Adams (?) Street from the bus station. I noticed it yesterday while waiting for the bus.

[thetoolman]

I saw a crew on the site yesterday dilling some holes, but their truck was unmarked so I am not sure what it was for. It did not look like environmental because the holes were too small, but probably some sort of early site analysis.

[TD]

today i watched as they are taking the roof off the old bp gas station, and i saw someone taking measurements... action is here!

[poonther]

Ah good to hear there is progress on the "I" bldg. Now if we could just change that name..............

[Florida]

Wouldn't it be cool if they could coordinate the two projects together and build two twin towers with a pedestrian bridge connecting them over the street!!

[csmurphy8885]

I WOULD CRY!! THAT WOULD BE SO TIGHT! Diaganol across! With some awsome signage!

[Florida]

Passed today and they've cleared out all the pumps. Opened the area up a bunch!

[csmurphy8885]

I drove by and was oblivious, there was a hott-ay on the opposite corner...

[Florida]

The difference is day and night with the pump covers gone.

Rick McGraw, a briliant mind in the City's Economic Development office doesn't think we'll see any activity until construction costs go down. So for now, we can look for a site clearing and then a stagnation.

[csmurphy8885]

great, another idle lot on a important puzzle piece... i hate that... construction costs go done? Is that forcasted, or possible at this point. Wont this hurricane season likely add to the massive demand and shortage!?? I have heard no good predictions. I think now is better, though i am only me.

[P_McLane]

Rick McGraw, a briliant mind in the City's Economic Development office doesn't think we'll see any activity until construction costs go down. So for now, we can look for a site clearing and then a stagnation.

And if construction costs do not go down?

What is driving the cost of construction? Materials? (Not likely to become more available or more affordable - especially now that the market has proven itself willing to bear these post-hurricane higher costs.) Labor? (Again, contract wages will not drop. Heck, they are average [per hour] as it is.) Energy? (We all know where gasoline prices are headed, and with the increase in fuel cost, a subsequent inflation of all costs. Everything comes by truck.)

If this site isn't being primed for construction now, then I suspect the new owners will try and sell to someone from out of town with the big-market resouces to afford the higher costs. We need some real big-corporate capitalists to take an interest in Tallahassee's strong potential for urban development. Once we have a new mid-rise office building with its energy-saving efficiencies (compared to older downtown office/retail sites) I bet finding tenants will not be too difficult. This site would be perfect for a mid-rise (8-12 stories) commercial office and ground-level retail development where corporate management / law office / and store receipts could afford the pricey lease.

[Florida]

And if construction costs do not go down?

If this site isn't being primed for construction now, then I suspect the new owners will try and sell to someone from out of town with the big-market resouces to afford the higher costs. We need some real big-corporate capitalists to take an interest in Tallahassee's strong potential for urban development. Once we have a new mid-rise office building with its energy-saving efficiencies (compared to older downtown office/retail sites) I bet finding tenants will not be too difficult. This site would be perfect for a mid-rise (8-12 stories) commercial office and ground-level retail development where corporate management / law office / and store receipts could afford the pricey lease.

I really think you nailed it with this comment.

Cost of sand, cement, steel, wood, everything is high. They're hoping prices will come down. But like you all, I think now is a better time than any.

[Tallaman]

Construction price increases driven largely by oil, cement

Some dire predictions about soaring labor and other costs have not proved true, but that's not making building any less expensive.

By JAMES THORNER, Times Staff Writer

Published April 20, 2006

--------------------------------------------------------------------------------

Builders have long been lamenting the rising cost of putting up houses, offices and shopping centers.

But some of the usual suspects for the increase - expensive labor, scarce supplies and competition from hurricane-ravaged Louisiana - haven't always stood up to scrutiny.

Despite temporary shortages in some trades, construction workers remain plentiful and labor costs tame. The cost of concrete and cement may be spiking again, but prices for other vital building materials such as steel, lumber and gypsum are falling or about to fall.

And remember predictions that Gulf Coast hurricane reconstruction would vacuum up construction workers and building supplies? Didn't happen, at least not to the extent predicted last year.

"Worries that Louisiana will become a magnet for labor seem misplaced," said Ken Simonson, chief economist for the Associated General Contractors of America. "Living conditions are too unappealing, and the initial displacement of 30,000 construction workers from Louisiana by Hurricane Katrina means the state has exported far more workers."

But when the building industry grouses about escalating costs, it's not without foundation. Simonson, who spoke Thursday over lunch to a contractors group in Tampa, predicted material costs will rise 8 to 10 percent this year. He summed it up in two words: oil and cement.

Oil fuels construction trucks. One petroleum byproduct is the goop that goes into asphalt. The recent run-up in oil prices pushed fuel prices up 20 percent the past year and asphalt by a comparable amount.

Cement is likewise shooting up as demand outstrips supply. Its price rose 12 percent last year. The world is making plenty of cement, Simonson said. Even China, whose building boom is blamed for driving up cement prices, exports part of its cement production. The trick has been finding the ships, trains and ports to handle such a narrowly profitable bulk commodity.

That has created a headache for builders who rely on the material for everything from concrete block in houses to prefabricated slabs in apartment buildings.

"Unlike producers of consumer goods, contractors can't make it smaller, lighter or thinner," Simonson said Thursday.

Simonson is touring the country to spread the message among members of the contractors group. He predicted a slowdown in home construction this year, particularly in the saturated condo market, but was upbeat about Florida's long-term prospects.

The Tampa-St.Petersburg metropolitan area gained 31,000 residents last year. Simonson expects the migration to continue, driven by retiring baby boomers seeking a place in the sun. "I don't think they're all going to put on the brakes in the near future," he said.

Here's Simonson's forecasts for various building materials:

f,8.5,ux0,,10.8 STEEL: After a 50 percent price spike whacked builders in 2004, prices rolled back 4 percent last year. Prices this year should stay flat or fall slightly.

f,8.5,ux0,,10.8

PVC PIPE: This plumbing mainstay, created from natural gas, doubled in price in some places last year. Rising natural gas prices and a crippling fire at a Texas PVC resin plant were largely to blame. But the prices could fall this year as natural gas prices retreat and the plant comes back on line.

f,8.5,ux0,,10.8

GYPSUM: This main component of dry wall and other plaster products saw huge run-ups in 2004 and 2005. Prices should edge lower this year as factories boost production and housing demand slows.

f,8.5,ux0,,10.8

LUMBER AND PLYWOOD: Prices have fallen the past 18 months, helping prop up home construction, the largest consumer of these building materials. The trend should continue.

f,8.5,ux0,,10.8

CEMENT: After lobbying from the construction industry, the United States dropped import duties this month on Mexican cement from $26 to $3 per metric ton, but quotas on the foreign cement remain. Construction demand has overwhelmed stagnant domestic supply. Public aversion to noise and dirt has constrained construction of concrete plants. Expect price volatility to continue.

Simonson declined to stake his reputation on predicting oil and gas prices, which he said fluctuate too drastically based on international flareups. Oil could drop by $20 per barrel, or it could increase by the same amount.

"Prices could move far and fast in either direction," he said.

http://www.sptimes.com/2006/04/20/Business..._price_in.shtml

[Florida]

Thanks for sharing that toolman

[csmurphy8885]

now as good as ever...

[Florida]

4.24.06

For all who are confused this is the site of Booth's Floridian Project.

As you can see the Canopy has been removed from where the Gas Pumps used to be, the BP Signs are gone, and the rental car company has also vacated the premises.

No activity to date, Booth reports they are still in the planning stages, but everyone I've spoken to at the city think this will be another residential condominium project.

[poonther]

I'm always confused on which project is which at these corners. I just can't say it enough...one of them needs a name change.

While I'm glad to see this corner become a high-rise and not left a gas station, I would have preferred it to be an office bldg. or at least a mixed-use bldg. rather than just all residential. I'm a little disappointed.

Who is Booth properties? I know they own and build a lot of student housing and just moved some offices into the bldg. at Tenn. and Franklin, but who are they? Are they new to Tally or are they long-timers and just re-branded themselves? What type of reputation do they have in town? Are they a good corporate citizen and help sponsor community stuff?

[Florida]

Don't be disappointed yet Poonther. Booth doesnt' know what it wants to build. There may be mixed use or Office when all is said and done.

Booth has been in the Tallahassee Community for a long time. I had the privledge of meeting Mrs. Booth while working at Publix and I was pleasantly surprised at how humble and down-to-earth she was. Wouldn't know she was a wealthy woman.

I believe they are among the many wealthy Tallahassee families that have decided to participate in the growth around here. They've owned some land for a while and decided in the mid-90s to get into the Student Housing business back when there was a big cry about there not being enough housing to meet the demand.

Now in the face of downtown revitalization it seems they want to participate also. So I'd said they are excellent corporate citizens here in Tallahassee. Nothing better than private companies doing their part to help the community reach its goals.

[csmurphy8885]

Thats good to hear!

[Tallaman]

I drive by the Booth property on my way into work and noticed an earth mover knocking down and trucks hauling away the NAPA building next to the old BP station. NAPA is completely gone now. Could the BP be next? And maybe the office building Booth owns right behind the BP be right after that? Does anyone know if Booth has settled on plans for the property or are they just clearing the land and getting it ready for future development?

[Florida]

From speaking to my sources this is a land clearing mission to get the property ready for development. I'd also keep a close eye on the Capital City Bank Project just east of this one.

[Tallaman]

I noticed this morning that the BP has a few bites from the earth-mover. I suspect it may be gone by the end of the day...

[Florida]

I passed about an hour ago and the BP had been bitten to pieces.

[seminole]

I passed about an hour ago and the BP had been bitten to pieces.

Been having trouble accessing this web site so I may not be able to post again (at least not immediately). Heard from an inside source that the tank removal (and contaminated soil removal) activities are scheduled to begin next week (May 8th) and the owners will be laying the foundation for the building during this time. We still don't know much about the characteristics of the building because the owners are being very secretive. They are probably waiting to determine how much interest there will be for office, retail, and/or condos, but it's nice to see some additional activities in the downtown area. This is great news!!!!

[csmurphy8885]

I dig the digging! Tennessee street is becoming fun to traverse again...