Portland’s 937 Condominiums is perhaps best known for its exterior form, an organic, rooted-in-nature design based on fractals whereby none of the tower’s windows lines up.

But tucked inside the 16-story Pearl District structure is another design and construction story. It’s a less visible but no less compelling tale, one grounded in the design-build process for mechanical, electrical, plumbing and fire suppression work, a high level of project team collaboration and ever-escalating sustainability goals that have set the stage for an anticipated platinum rating from the U.S. Green Building Council’s Leadership in Energy and Environmental Design system.

Those involved with the project describe the design-build approach on the MEP and fire suppression systems as highly coordinated and effective, blunting what some say is an industry perception that the approach cannot be used for such work and achieve a high level of innovation and sustainability.

The project’s tight mechanical spaces – dictated by the thin design of the tower itself, which stands on a half block – demanded extreme efficiency, said Mack Selberg, project manager with Ankrom Moisan Associated Architects, the project’s executive architect. Holst Architecture designed the structure’s exterior.

“The mandate to the MEP and sprinkler (contractors) was extreme in its efficiency, especially vertically,” Selberg said. “If anyone wants to challenge the design-build philosophy in terms of not being able to coordinate or to (pursue) platinum LEED, 937 would destroy those notions.

“Unless you can do sustainability with extreme efficiency, it doesn’t happen,” Selberg added. “What the MEP people were able to do is figure out how to get these concepts done most efficiently.”

Selberg said no single stroke of design genius drove the project’s achievements in sustainability. Rather, it was more of an overriding attitude.

“Everyone came together – the entire A/E/C team and ownership – and was on the same page … going over every little thing … constantly going back and re-examining (the plans). The willingness to re-examine was pretty phenomenal and pretty unique,” Selberg said

A case in point: the project’s fire suppression system routes water used for regular sprinkler testing to a required tank in the below-grade parking area, a strategy that conserves water and keeps thousands of gallons from entering the city’s system, said Jared Hill, fire protection engineer with contractor Western States Fire Protection Co.

Western States also found efficiencies that resulted in the sprinkler and electrical systems occupying a mere 5 inches of space above ceilings instead of 8 inches. That achievement alone maintained the housing units’ 9-foot ceiling heights and helped the developer, W&K Development, add another floor to the project, creating eight additional condo units.

An additional floor of housing can have a huge impact on the bottom line, said Geoff Wenker, a developer with W&K, noting the higher asking prices for top-level units.

The high level of what Selberg called “intellectual sweat equity” was demonstrated during regular coordination meetings focused on the MEP and sprinkler system work, when team members poured over color-coated overlay drawings subcontractors produced. Separately, three-dimensional computer models were examined to ensure systems were coordinated.

Wenker, whose background is in both commercial construction project management and development, said he has seen MEP systems implemented using the traditional process as well as the design-build approach, and he likes what he called the “in-between” method used on the 937 Condominiums.

“You put out a performance spec and leave it to the subs to flush out the design,” he said. “The emphasis was on cooperation and team meetings we had with the design-build subs, the general contractor (Andersen Construction), the architect and us. That is really where the work got done as far as looking at different equipment, systems and different ways you could (approach) it.”

The 937 Condominiums also saw the use of ducts to bring fresh air into several housing units being placed inside the building’s post-tension concrete slabs. A total of 56 in-slab ducts were snaked through slabs in a highly coordinated endeavor between the HVAC contractors, the concrete contractors and the structural engineers. While such ducts are often used in British Columbia, the 937 Condominiums project reportedly marked only the second time they were used on a Portland project. And it was the first project using ecoduct designed in Oregon, said Bill Fink, project engineer with Hunter-Davisson Inc., the HVAC contractor on the 937 Condominiums.

With such a “tight” building, the in-slab ducts were the optimum solution to draw fresh air and provide a direct connection between outside air and HVAC units, Selberg said.

Fink is blunt about the challenges the project posed – “937 is the most tight building I’ve been involved with as far as ceiling space and everything else,” he said – but noted that the key benefit of the design-build process is that, three years removed from developing the initial cost estimate, the HVAC system cost roughly what Hunter-Davisson estimated it would.

“If we are given a budget, we can design the best system within an owners’ budget,” Fink said.
Selberg said the hidden gem with respect to the 937 Condominiums is efficient execution of its electrical, plumbing, HVAC and fire protection systems.

“So many innovative buildings like 937 have been left on the architectural drawing board because nobody can figure out how to do them efficiently,” Selberg said. “The whole back story of the building is what you can’t see. Beauty is not only skin deep; it goes a lot deeper in this building. The beauty of the systems design in this building really shines.”

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Jessica Adamson fell short in her November quest for a seat in Oregon’s House of Representatives, but the Sherwood resident – who previously served as public affairs director for the Associated General Contractors’ Oregon-Columbia Chapter – has long played a role in local and state politics. And she’ll be watching closely the 2009 legislative session, which opens in January.

From shoring up Oregon’s infrastructure and clarifying workplace policy to addressing the state’s recession-fueled budget hole, Adamson shared her thoughts on the issues likely to take center stage when state lawmakers converge on Salem. Her responses have been edited for clarity and brevity.

91��Ƶ: What are the issues to watch for this legislative session, particularly those that affect the design and construction industries?

Jessica Adamson: Clearly, the entire industry will be watching infrastructure packages on the state and national level. Infrastructure and public works historically have primed the pump for a down economy and created jobs, not just in construction but related industries like manufacturing and forestry that provide materials. With the makeup of the Legislature – and House speaker-elect (Dave Hunt), who has worked for the Columbia River channel deepening coalition and for whom infrastructure is a priority and passion – infrastructure will be one of those major priorities that moves quickly through the Legislature.

There’s a coming awareness that (infrastructure) also means sewer and water and other public works, sustaining capital construction for schools and making sure universities are up to code.

The first priority will be roads and bridges, but we can’t ignore other components of infrastructure. We can’t grow the economy by making investments in only one component.

The conversation at the local level needs to be broader than just roads, bridges and transit.
It will also be important to watch what happens around consumer protection and changes in commercial construction licensing. With the series of reforms (including those supported by AGC and subsequently passed by the last Legislature raising the standard of practice in commercial construction) and other changes in terms of protections for homeowners that were pushed through last session, I believe there will be opportunities for state agencies to report (to lawmakers) on how those changes have been implemented and their effectiveness. And I believe there will be continued debate over those issues.

I’d also watch for employment law issues like medical marijuana reform. Associated Oregon Industries and AGC have worked together the last two sessions to clarify the law. In Oregon, there have been contradictory court opinions about whether employers are required to accommodate employees who test positive for marijuana, leaving employers between a rock and a hard place. The law is unclear. For dangerous occupations like the construction industry, you’re talking about trying to accommodate folks who would otherwise be dismissed (from their jobs). It is AGC’s position we should not have to accommodate folks who are causing a danger in the workplace. With any luck, we’ll be able to get that (issue) through this session.

At the heart of it is the state budget is down by more than a billion dollars, and by the time lawmakers are done it could be more than that. The first few months of the session will be focused on rebalancing the budget of the current biennium. (Doing) much else will be difficult.

91��Ƶ: What are your predictions for the session?

Adamson: It’s going to be a tremendously challenging session. Not only do you have a revenue shortfall, but also two new co-chairs of Ways and Means. That’s a challenging role even when you have additional revenue to play with. You’ve got a Legislature with a supermajority, so there are enough votes with the Democrats to raise revenue. But I don’t believe it is going to be a slam dunk to implement revenue-raising measures. Some folks will support them, some will say it’s not time to do it because of a down economy. It is a difficult environment.

The Legislature’s only requirement is to balance the budget and go home. There’s no requirement to pass policy bills, but it is a necessity every session. It’s going to be difficult, if not impossible, to pass legislation that has a significant fiscal impact. A convincing case is going to have to be made why that type of legislation needs to happen now.

It is going to be equally difficult to pass legislation that’s broad in scope because folks will be very focused on the budget situation. To effectively cut through a really tough budget situation, to communicate effectively, is going to be critical for anybody looking to pass legislation. Even though there is supermajority in place, you have leadership who wants to reach across the aisle to pass legislation that’s good for Oregon.

Senate President Peter Courtney said recently we can’t (solely) cut or tax our way out of this. That sends a clear signal how the Legislature will address (the budget situation). They’ll perhaps raise revenue in a targeted way but won’t be looking to fix the shortfall solely by raising taxes. In this environment, we can’t raise taxes on working families and businesses to the point where they leave the state.

The post Infrastructure issues take center stage appeared first on Daily Journal of Commerce.

Imagine you’re poised to invest in a house or a commercial building. Before you sign on the dotted line, the property receives a certificate that spells out the structure’s energy performance – similar to miles-per-gallon ratings for cars.

Imagine, too, that the state of Oregon increases energy efficiency in commercial and residential building codes by 30 percent and 15 percent, respectively, as a first step toward its goal of achieving net-zero-emissions homes and buildings by 2030. At the same time it ratchets up its near-term building codes, the state publishes a so-called “reach code,” the next code that would take effect in an effort to provide marketplace certainty about future construction requirements.

Those and other concepts are part of Gov. Ted Kulongoski’s multipronged legislative package to address climate change, position Oregon to meet its goal of curbing greenhouse gas levels to 10 percent less than 1990 levels by 2020, and create green jobs. His agenda has been described as ambitious by those close to the issue and would keep Oregon among the states at the forefront of tackling global warming.

Kulongoski’s package focuses on greenhouse gas reduction, energy efficiency and conservation, renewable energy and sustainable transportation. The package grew out of recommendations that work groups and a couple of other entities, including a committee of the Oregon Global Warming Commission, developed. Among the components:

• Authorizing the state’s participation in a regional cap-and-trade system to limit carbon emissions from large sources, and expanding Oregon’s existing greenhouse gas reporting system.

• Accelerating solar energy projects via a pilot incentive program that would pay for electricity produced by such projects rather than for the capital investments.

• Shifting the state’s business and residential energy tax credits from popular hybrid vehicles to those that produce less carbon, such as plug-in hybrid and all-electric vehicles.

• Expanding transportation options – among them carpools, vanpools, bicycling and walking – to reduce vehicle trips as well as adopting low-carbon fuels.

• Directing the state Department of Transportation to consider least-cost options to address transportation problems, such as investing in mass transit projects instead of building more roads to relieve congestion.

• Creating a state fund that leverages federal and private-sector investments to help low-income households save energy.

Angus Duncan, chairman of the state global warming commission, used the analogy of a house in describing the governor’s legislative package, saying a cap-and-trade component represents the walls and the roof, while the energy efficiency and conservation, renewable energy and transportation elements are the wiring, plumbing and appliances.

“Put them all together,” he said, “and you have a functioning house.”

Kulongoski wants citizens to help the state develop design recommendations to participate in a regional cap-and-trade program that would take effect in 2012. Under his proposal, those recommendations would be considered by the 2011 Legislature prior to the program’s start. Oregon is a member of the Western Climate Initiative), a coalition of seven western states and four Canadian provinces that aims to jointly reduce regional greenhouse gases by focusing on a market-based cap-and-trade system.

Rem Nivens, a Kulongoski spokesman, said the governor wants to ensure “robust” public debate occurs so that cap-and-trade is workable for Oregon. “He does not want to put Oregon industries at a disadvantage,” Nivens said.

John Ledger, a vice president with Associated Oregon Industries, said the trade group’s main concern regarding cap-and-trade is that it be “done in a way that keeps Oregon competitive with other states and globally.”

Ledger said the work on cap-and-trade regionally and at the state level is beneficial but noted that AOI would prefer a nationwide strategy so that states are on the same level. “There are a lot of details. Cap-and-trade is a key for AOI, and we’re not sure how it will all play out yet,” he said.

Beyond that, AOI will examine each component of the climate change package, noting that strategies such as expanding tax credits for energy conservation are beneficial, Ledger said.

Duncan said cap-and-trade is important. Under a cap-and-trade program, businesses must reduce their pollution to meet a cap set on greenhouse gases. Those that cannot feasibly or cost-effectively cut emissions can buy credits from other companies that have achieved the reductions, according to the WCI.

However, Duncan noted, “Just putting a cap on carbon is not sufficient. You also have to have tools in place to actively reduce carbon.”

That’s where the package’s other components come into play.

Clark Brockman, an associate principal with Portland’s SERA Architects who co-chaired a work group that developed energy efficiency and conservation recommendations for the governor, said a key component of those recommendations is the goal for net-zero-emissions buildings by 2030. The concept grew out of the nonprofit Architecture 2030, which aims to transform the building sector from a major greenhouse gas contributor to a central part of the solution.

Brockman also applauded the reach code, calling it an “incredibly powerful concept” that provides a foundation for incentives to build to the future code.

In a report that outlined its recommendations to the governor, the energy efficiency and conservation work group acknowledged that the carbon-neutral and code proposals generated the most controversy within the group. Proponents said mandatory interim steps to increase code requirements are needed to provide certainty to meet energy-saving goals, and that announcing the next code cycle several years in advance gives designers and builders time to adapt. But some members said aspirational goals do not aid in code setting and were uncomfortable with the state creating strict energy-efficiency mandates for all buildings. In the end, however, more than three-quarters of the work group supported those concepts.

Energy performance certificates, meanwhile, would save energy and money, provide a major boost to a nascent green economy and build on Oregon’s reputation for sustainability, Brockman said.

“Investments in energy efficiency and renewable energy are going to come back to us with a multiplier effect because they all are going to create jobs,” he said. “The idea of, does this help the Oregon economy? I’m absolutely convinced it does.”

Nivens said energy performance certificates are among the package’s cutting-edge components; the governor’s office, he said, is not aware of any other state that has such certificates. However, a pilot to create energy efficiency ratings is being tested in Oregon by Energy Trust and Earth Advantage.

On the transportation front, the package aims to address the state’s infrastructure needs and reduce carbon, in part by encouraging alternative vehicle technology and adopting a low-carbon fuel standard.

Gail Achterman, chairwoman of the Oregon Transportation Commission and a member of the vision committee that developed transportation recommendations for Kulongoski, said the state needs to cut emissions via alternative vehicle technology and low-carbon fuels if it hopes to meet its greenhouse gas-reduction goals.

Achterman, who also applauded the idea of expanding transportation options and implementing least-cost planning, was optimistic about the success of the global warming package.

“There’s a very high level of interest in the legislation,” she said. “I’ve heard from the (legislative) leadership and a number of members (who are) very committed to Oregon’s leadership in climate change policy and committed to the creation of jobs and infrastructure investment.”

Rep. Dave Hunt, Oregon’s House speaker-elect, agreed with those who consider the package ambitious and predicted lawmakers will advance climate change strategies. Hunt said he has “no desire” to tie the package together in one bill, preferring instead to consider individual components and moving forward on elements that can gain traction early in the session. 

“I think we will definitely continue to make progress on climate change, as we did in 2007 and 2008,” Hunt said. “Whether the whole package passes as-is is far too early to say.”

People such as Duncan, the global warming commission chairman, said he is “guardedly optimistic” about the package’s prospects during the ’09 session.

“I think there are enough members on both sides of the capitol (who believe) you have to do something that is more than business as usual,” he said.

“For all of these investments we are talking about making – and these are significant investments, whether they are wind turbines or mass transit or building energy-efficiency investments – in all cases it’s important for people to have a clear goal for where we are headed so that these investments make sense to people,” Duncan said.

Nivens said although all the details have yet to be worked out, the cost of the governor’s climate change package has been estimated at $10 million.

Kulongoski believes the package can be implemented “at a funding level that is going to be reasonable and workable,” Nivens said. He added that while the state’s budget crunch is a concern, the package is “one of the areas we can continue to push forward on and not be too constrained by the current budget situation.”

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Two years ago, Slayden Construction was awarded a multimillion-dollar contract to replace a handful of bridges along state Highway 38, which links Interstate 5 to the coastal city of Reedsport.

The original guardrail on one of the 1930s-era spans slated for replacement was so deteriorated that chunks of concrete were missing and the rebar inside had rusted. Over the years, the state, with safety in mind, had installed another guardrail on the inside of the old one. And as a result, cars and trucks were negotiating an even narrower bridge.

Larry Gescher, a vice president with Slayden, said the bridge is a prime example of the deteriorated conditions that characterize much of Oregon’s transportation infrastructure.

The state is addressing its highways, roads and bridges with initiatives such as the so-called Oregon Transportation Investment Act III State Bridge Delivery Program, but more investment is needed, said Gescher, who chairs the Heavy/Highway/Utility Council of the Associated General Contractors’ Oregon-Columbia chapter.

“It’s hard to make improvements when you are trying to maintain what you’ve got,” he said.

Gov. Ted Kulongoski is seeking to ramp up Oregon’s investment in transportation, recently unveiling a plan he said would create thousands of jobs, establish sustainable long-term funding for the state’s transportation system, and address greenhouse gas emissions in transportation construction and planning.

Kulongoski’s Jobs and Transportation Act of 2009 is an outgrowth of a broad-based advisory committee he tasked with developing recommendations for a comprehensive transportation package for the next legislative session, which opens in January.

The governor said Oregon’s transportation infrastructure has not kept pace with population growth and freight traffic. He touted his plan as good for the state’s economy in the short term and over time, describing it as the “most robust, sustainable, strategic and green transportation package in Oregon history.”

The plan would invest $1 billion every two years and create thousands of jobs annually over the first five years, Kulongoski said. Among other things, the plan would fix key freight bottlenecks; provide money for road and bridge maintenance; and increase funds to better connect railroads, ports, airports and transit lines to the highway system. It also dovetails with the governor’s climate change agenda, aiming to reduce carbon emissions in part via expanded pedestrian and bicycle programs, increased carpools and vanpools, a statewide rideshare program, and incentive programs designed to reduce the number of cars on the road.

People such as E. Terry Beyer, D-Springfield, current chair of the House Transportation Committee, describe the governor’s plan as “comprehensive,” but consider the state’s biggest transportation priority to be road maintenance. Beyer pointed to cash-strapped rural communities, some of which are returning deteriorated paved roads to gravel because it is safer than simply having the roads fall apart.

“We have to shore up the system we have. That would be the first direction I would go,” Beyer said. “I’d like to get agreement on that first. Everything else, in my mind, is frosting on the cake.”

Beyer said she supports the governor’s plan, but would like to see greater funding for senior and disabled transit services than the $5 million Kulongoski has proposed.

Gescher, of Stayton-based Slayden Construction, said the time is now for Oregon to move forward on the governor’s transportation package because the state can take advantage of the design and construction workforce that has propelled OTIA III.

Bob Shiprack, executive secretary with the Oregon Building Trades Council, which has about 30,000 union members, agreed. The transportation package offers the opportunity to move many young professionals to journeyman status after they joined apprenticeship programs in anticipation of OTIA III.

“You are going to have a workforce out there that is one of the most productive in the country,” he said. “This would maintain that high level of productivity that Oregon enjoys.”

Shiprack, who served on the governor’s transportation advisory committee, added that the package would create additional jobs in the trucking and rental industries and in operations such as sand and gravel.

The bottom line is that the package is needed to maintain roads, relieve congestion and make safety improvements, he said.

“To fix these roads and bridges, once they have hit the point of no return, is really expensive,” Shiprack said. “Let’s face it: we own this stuff and we ought to take care of it.”

Gescher looks favorably on the governor’s plan in part because it calls for funding from multiple sources, including title and registration fee increases as well as a 2-cent gas tax increase.

“Nobody wants to see taxes go up in an economy like it is, but unfortunately the money has to come from somewhere,” Gescher said, adding that investing in public works stimulates the economy. “We (contractors) buy goods and pay employees. And it’s not just good for contractors … it spreads way beyond that.”

To that end, Kulongoski says his plan is good for the flagging economy because it would create thousands of jobs.

But Bill Conerly, a Lake Oswego-based economic consultant, believes such transportation packages end up “a wash” with respect to stimulating the economy. To be sure, transportation infrastructure is inadequate, but Federal Reserve monetary policy and strong consumer spending are the keys to digging out of recession, he said.

Associated Oregon Industries, the state’s largest business association, has not taken a position on Kulongoski’s transportation plan, but has been an advocate of a better transportation system and was involved with the committee that made recommendations to the governor.

John Ledger, an AOI vice president, said such packages have a difficult row to hoe in tough economic times. Among other things, Ledger noted that an increase in Oregon’s gas tax usually triggers an increase in the weight-mile fee trucks pay, and Oregon’s weight-mile fee already is among the nation’s highest.

“The structure of it makes it difficult,” Ledger said, noting AOI will weigh each component of the governor’s plan prior to the legislative session. “There are a lot of details to work out. It will not be easy. The train almost never looks the same coming out the other end of the tunnel. And it’s not intended to.”

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The idea of running for state representative from first arose in a conversation she had in summer 2007 with Dave Hunt, Oregon's House majority leader at the time.

But Adamson's interest in politics actually took root during her childhood years in Linn County. She became acquainted with Mae Yih, a longtime state representative who Adamson described as tough, highly committed to her constituents and a moderate who worked across party lines.

Adamson, in her first campaign for public office, said her goal was to move beyond political partisanship to, among other things, strengthen Oregon's economy and public education system, make health care more affordable, reduce government waste and streamline regulations for small businesses.

Earlier this month, Adamson lost her bid for the House seat to Republican Matt Wingard. During an interview in the wake of that hard-fought campaign, Adamson – who took a leave as public affairs director for the to run for office and expects to return to the trade group – said she is "preserving her options" regarding a future in elective politics.

For now, the Sherwood resident said she is taking some time off to be with her family and plans to stay engaged in community issues. She reflected on the campaign, and the issues critical to Oregon's future. Her responses have been edited for clarity and brevity.

91��Ƶ: What inspired you to run for public office?

Jessica Adamson: I really felt strongly that in these tough times we need a Legislature experienced and committed to working across party lines. Harry Truman once said, "It's amazing what you can accomplish when you don't care who gets the credit." I believe that wholeheartedly. The economy, infrastructure needs, health care costs are out of control – those are not Republican or Democratic issues; they are Oregon issues. I was honored to be asked to run and felt that this was an opportunity to put what I feel passionately about to work for the economy and the community.

Next to raising my kids, it was the most challenging and rewarding experience of my life. It tests your physical endurance, and it tests your heart. You become emotionally connected to people whose stories you hear and learn. There are people who made one phone call for me, knocked on a door for me, wrote a check; it is so humbling to have folks willing to work with you for a common vision for a better Oregon.

91��Ƶ: The race appeared to be going your way. Looking back, why did your campaign fall short?

Adamson: We went to sleep on election night believing we won this race and woke up and we were down. This was a race that two weeks out had a large number of undecided voters, though polling showed us ahead. Late voters broke in my opponent's direction.
That is the thing about democracy: You make the best case you can … and voters make their decision. We are proud of the race we ran. There isn't a whole lot I would have done differently. It was us working every single day, working hard for a very long time … and coming closer than anyone (in the Democratic Party) has come in this district in 20 years.

91��Ƶ: What are your plans? And do you foresee another run at public office?
Adamson: Right now, my plan is to take some time to breathe and enjoy my family and kids. I am just way too close to the end of this very tough campaign to make a decision (about running for office again). As I am telling people, I'm not making any decisions, but I am preserving options. I will stay engaged in public service, in some way.
91��Ƶ: What are the steps you believe need to be taken to help strengthen Oregon's economy?

Adamson: A stronger focus on the same principles. We have to make sure small businesses can grow here. We need to streamline the regulatory process to move forward on traditional and new energy sources. We also have to be creative in how we take advantage of industries here. We have to make sure we have policies that will help grow and create spin-offs in the solar industry, and we need to do that with biotech. We also need to think creatively about higher education and how we position ourselves to attract top talent to help grow our emerging industries.

We have transportation and infrastructure challenges. To address them, we can create immediate jobs in construction and create economic growth over the long term. Companies can't expand if they can't bring their products to market. Without infrastructure, (we) can't catch up and get ahead of the curve.

We also need to make sure employers can help keep up with the cost of health care, one of the fastest-growing expenses companies deal with. We need to get our arms around how we stabilize the system. With real challenges come real opportunities. That is something I am confident this next Legislature is going to work hard to do, and the business community needs to be a vocal and productive part of those conversations.

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A few months ago, Cort O’Haver could look out his office window in downtown Portland and see eight construction cranes dotting the cityscape.

“That’s the most I’ve seen in five years,” said U.S. Bank’s senior vice president and western region manager for commercial real estate.

High-density housing projects, especially in the urban core, have been the drivers of a strengthening metro-area construction market in 2004, according to real estate and development sources. Contrast that with soft office and industrial markets, particularly in the suburbs, which continue to be weighed down by high vacancy rates in an economy still trying to right itself.

But when it comes to the availability of private financing, the stage is set, they say, for a better environment in 2005 for developers, contractors and others in the construction field than they experienced the previous year.

“It’s a great time to be a borrower,” O’Haver said. “There’s a lot of competition on the banking side. When a good deal comes up, all of us (banks) are swinging for the fences.”

That optimism comes with a few caveats, however. Among them: The Northwest needs to continue experiencing job, personal income and business investment growth as well as stable energy prices, said John Mitchell, economist with U.S. Bank’s western region.

Evidence of a strengthening economy – and a more robust construction sector -came in a state forecast released in September by the state’s Office of Economic Analysis. While pointing to a job-market recovery overall, the forecast specifically indicated that construction was expected to reverse its jobs decline of last year and post a 5.7 percent jump in 2004, a 2.7 percent increase in 2005 and a 2.6 percent rise in 2006.

“The national economy is projected to continue its growth path into 2005, and the Oregon economy will be pulled along for the ride. The questions of uncertainty that now loom are: How strong, and how long?” the report stated.

In a surprise result, Oregon’s seasonally adjusted jobless rate edged higher over the summer from 6.8 percent in July to 7.4 percent in August, marking the first time since March that the state’s unemployment rate eclipsed 7 percent.

“It’s (the area of) vital business investment (that) keeps growing. We are so investment driven, whether it’s airplanes or the (computer) chip sector,” Mitchell said. “Given the lack of employment growth up until a year ago, and in the Portland market more recent than that, non-residential construction is going to lag. The critical thing you have to have is job growth to fill space. Assuming it continues, and I think it will, you will see the office and manufacturing markets strengthen as we get into 2005. I don’t think it is going to be quick.”

Art DeMuro, president of Portland-based Venerable Properties, said the major challenge for his company is finding attractive projects, not the capital to make them happen. Venerable Properties’ portfolio includes smaller office and residential projects, among them downtown Portland’s historic Telegram Building and, now under development, the renovation of a 6,646-square-foot grocery store in Northeast Portland’s Irvington neighborhood into commercial spaces.

DeMuro said construction and permanent loans are readily available to developers who meet a bank’s requirements. “The markets have been awash in capital for a few years now, and I’ve not seen anything to change that,” he said.

Bob Hill, chief financial officer with Pence/Kelly Construction, agreed, saying quality projects can find financial backers. While the economy in general has been slow to recover, the general contractor, which concentrates mostly on negotiated, commercial projects, has registered a “good year,” with nearly $50 million in volume under its belt, he said.

One challenge some developers have faced is tougher pre-leasing requirements. Those changes reflect an environment of slow job growth and flat office and industrial markets in the metro area, said Luther Barker, vice president with West Coast Bank. One factor that has helped is continued low interest rates, he added.

Bond measures voters approved in the last four years touched off a blizzard of school construction in the Portland-Vancouver area that kept contractors busy. Though many of those projects are well into construction or winding down, some projects remain in limbo because school districts put them on the back burner due to the rising costs of steel and concrete.

Nonetheless, a significant amount of publicly funded projects, including building, road and bridge construction, is under way, on tap or being considered.

The Oregon Transportation Investment Act is the largest increase in transportation funding in the state since the interstate highway system was built five decades ago. Combined with the state’s normal capital construction program, the result will be more than $700 million in road and bridge work in both 2004 and 2005, according to Jay Remy, the Oregon Department of Transportation’s strategic communications coordinator. All told, the investment act alone provides $2.96 billion to improve roads and bridges during the next eight to 10 years, funded by bonds from increased Department of Motor Vehicle fees.

In addition, Oregon’s publicly funded colleges and universities have proposed spending about $1.1 billion on capital construction projects in 2005-07. The budget, approved during the summer by the State Board of Higher Education, includes everything from millions of dollars of maintenance work at the system’s seven campuses to a $30-million Community College Partnership Building on Portland State University’s campus. The budget will wind up on Gov. Ted Kulongoski’s desk and in the hands of state legislators, who convene in January.

Diane Saunders, communications director for the Oregon University System, said half of all state-owned facilities are located on college and university campuses. Those facilities need some $600 million in deferred maintenance alone.

“If we get a continuum of reasonable monies to complete deferred maintenance projects over a decade, we’ll be able to make up some lost ground,” she said. “We are far behind the eight ball at this point.”

Saunders added that the colleges and universities have been turning to donors to a greater degree in recent years to help fund construction projects as state financial support for higher education has dwindled.

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When SERA Architects won the commission to design a new high-rise building that would serve as alcohol- and drug-free housing in downtown Portland, the project’s managing partner, Central City Concern, and financial partner, the Portland Development Commission, set out a series of ambitious goals.

They sought a building that was warm and inviting, would serve as a “home” rather than an institution, exuded optimism and, in the words of Paul Jeffreys, a senior designer with SERA, expressed a “coherent exuberance.”

Jeffreys approached the building’s design from the inside out, with function in mind. Working with a quarter-block site, an L-shaped structure was selected for efficiency. Residential units were placed in the wings, common spaces at the building’s prominent corner. Floors three through eight contain 120 single-room occupancy units, each equipped with a sink, toilet and closet. Floors nine through 12 feature small studio apartments, each with a full bathroom and kitchen. The ground and second floors were designed to accommodate the Portland Alternative Health Center; the first floor also has meeting rooms, separate entrances and lobbies for the residences and clinic, and a library.

The high-profile site – at the corner of busy West Burnside Street and Northwest Eighth Avenue, immediately east of the park blocks – prompted the design and construction team to focus resources on the project’s more public elements.

“The goal was to spend money where you’d see it,” Jeffreys said.

The team designed the building with just eight concrete interior columns and four concrete shear walls, which saved money. The floors that feature the SRO units have common areas with shared kitchens and dining areas that lead to corner balconies with views to the park and Burnside. The floors with the studio apartments feature communal living spaces that lead to the balconies. The housing units are “stacked,” which again cut costs.

“It was obvious it was a prominent corner,” Jeffreys said, looking over the floor plans and color renderings of the building. “It was a no-brainer to put the balconies on the corner. It makes the most of the site.”

For SERA, which picked up the project after another architect ran into roadblocks with the city’s design review process, 8 NW 8th presented a unique opportunity, Jeffreys said, noting it is the first downtown high-rise in the long-established firm’s portfolio.

More than that, it was a chance to produce a project “for the right reason,” Jeffreys said.

Walsh Construction Co., the general contractor, said one of the goals was to bring durability and longevity to a project that aims to help people achieve self-sufficiency. “The owner’s intent was to build a building that would last 100 years,” noted Craig Leonnig, an assistant superintendent with Walsh.

To that end, Walsh applied a thin, self-adhesive, air/vapor barrier membrane to the exterior of the building, with insulation applied to the outside of that rather than within the framing, to keep moisture and mold at bay. Among other things, floors in the units and corridors have sheet vinyl flooring and vinyl composition tile, respectively. Leonnig called it a “flagship” building for Central City Concern.

When completed in October, 8 NW 8th will replace the Danmoore Hotel, which Central City Concern had managed for many years as SRO housing for people in the first stage of recovery from alcohol and drug addiction. The Danmoore, a downtown building, is slated for demolition by its owner, First Presbyterian Church. The SRO housing at 8 NW 8th will be affordable to people who make up to 30 percent of the area’s median income; the studio units will be affordable to people who make up to 50 percent of median income.

Richard Harris, executive director of Central City Concern, said the organization has been involved in the creation of hundreds of units of alcohol- and drug-free housing, but 8 NW 8th is the organization’s second new transitional and permanent housing development, and its first downtown, designed for people in recovery.

“We’ve learned that if you provide housing for people in recovery, and it supports their recovery, you get a much better outcome,” Harris said.

“I hope that for the people who live here it gives them dignity, and that it is inspiring,” Jeffreys said. “We were all striving for the same goal: (creating) a great building people would enjoy living in.”

To achieve that objective, the 12-story building features several unique design elements. A ground-floor green-glass curtain wall undulates, interacting with passersby. “It’s a curtain wall, but we’ve given it a twist – literally,” Jeffreys said. “That requires a second look.” A staircase on the lobby level literally “pushes out” into the sidewalk, set off from the curtain wall by blue-tinted glass. And though not required to feature art, the building will include works – paintings mostly – submitted by artists and selected by a jury. Tablets mounted in the sidewalks surrounding the building will be inscribed with inspirational sayings.

Norm Schoen, construction coordinator with PDC and an architect himself, said elements such as the undulating curtain wall inject playfulness and energy into the building. “I can’t think of another base where you’ve got a condition like that,” he said. “It was a lot of fun working as an architect with the design team.”

8 NW 8th also features a curved roof, which blends in with the building’s strong cornice line, offers a sense of weight and permanence, and draws the eye away from the more blank north and east facades.

Jeffreys calls the project a reinterpretation of a classical form of a structure with a base, middle and top. “What I try to do is give it a twist.”

He also said the design reflects a sense of familiarity. The building, for example, is clad in tan-colored brick, which met a number of goals, including adding durability, warmth and tradition.

“When you do a modern building, you play with familiarity,” Jeffreys said. “You go too far and you’ll alienate people. If you go too familiar, it becomes banal.”

A major challenge for Walsh Construction was staging and logistics given site constraints. Walsh broke ground last summer on the project, which is funded by myriad sources including tax increment financing, low income housing tax credits, bank loans and equity Central City Concern received from another project. 8 NW 8th carries a total price tag of slightly more than $18 million.

“There’s been coordination, and lots of it, with subcontractors and suppliers,” Leonnig said.

Barry Finnemore is a Portland freelance writer.

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Standing on the tee of a beautiful par 5, you pull out a driver and take a practice swing, then proceed to shank your shiny new golf ball into a large pond off the fairway. You spend a few minutes searching for it but soon give up, figuring it’s gone forever.
Or is it?
Not if Mike Hughes is on the job.
When Hughes goes to work, he dons an air tank, mask and diving suit. The water he swims in can be so murky he sometimes can’t see his hand in front of his face. He’s come across otter, been bumped by a bass protecting its nest and uncovered what he thought was a battery but turned about to be a plastic container bearing the name of a crematorium.
But in a good year, Hughes can put 20,000 miles on his truck, traveling to golf courses around the Northwest to dive for golf balls that he sells on the used-ball market.
Last year was Hughes’ best – he scooped 182,000 balls out of ponds, lakes and other bodies of water.
For the 56-year-old, diving for golf balls can be a money-making venture, but he considers it more of a hobby that keeps him in good physical shape.
“It’s a good workout,” Hughes says. “After a day of diving I sleep well at night. I was pretty stiff when I got up this morning.”
Hughes dives at 35 to 40 courses in the Northwest. Working alone, he straps a bag to his chest and uses both hands to shag the balls.
“I enjoy it,” he says. “It’s exciting. It’s like beachcombing.”
The job definitely has its hazards. Every dive is a gamble because he never knows if he’ll find balls in good enough shape to resell, and he can easily get tangled in grass and weeds or have a surprise encounter with a wild animal.
“Sometimes you don’t know what you are grabbing. I’ve grabbed turtles and fish. Big fish will follow you wherever you go. Grasses and aquatic weeds take over and sometimes you can’t swim through it. In some places tumbleweeds blow into the pond.”
Hughes sells the refurbishable balls to outfits that clean and resell them. At least one company buys well-worn balls, removes the covers and recycles them into new products, such as park benches. Hughes also sells to individuals and golf courses, sometimes in exchange for the rights to dive at a facility. The amount each ball fetches can fluctuate; some courses buy them back for 10 cents a ball, but the price dropped sharply, to 4 cents, when demand sagged after the Sept. 11 terrorist attacks.
The market for used golf balls spans the globe. Many used balls found on U.S. courses are exported.
Though new-ball manufacturers may cringe at seeing used balls sold at pro shops, Hughes points out that his business stretches the marketing dollar of companies and golf courses that market logo balls because their products are sent “around the world” when resold. And if balls were simply left in ponds and other bodies of water, they eventually would collect in such numbers that their displacement would change the shape of the water features in ways that course designers never intended.
Hughes has always been comfortable in and around water.
He grew up around the wetlands of New Jersey. A former Marine who learned how to snorkel in the service, Hughes was wounded in Vietnam when he stepped on a bamboo spike in his bare feet while doing underwater reconnaissance.
He also has a golf background, working for a time as a golf course superintendent in New Jersey.
Hughes began diving for golf balls five years ago. He got his start at the popular resort in Coeur d’Alene, Idaho, well known for its “floating green” that can be adjusted to increase or decrease its yardage. Today, he works at courses in Washington, Idaho and Montana, and is marketing his services in Oregon.
Hughes says his business got off to a slow start this year because of cold temperatures. Each year he tries to build his clientele in what he describes as a competitive market, but challenges loom on the horizon for entrepreneurs such as Hughes.
He says a product has emerged that turns golf balls black after they have been submerged in water for two days. That effectively drops their value, and would cut into his business.
Nonetheless, Hughes, the father of three grown children, is upbeat about his work, doesn’t seem terribly worried about the future of the business and puts family ahead of his job.
“Everything is a gamble,” he says. “If you did this for the money you’d be a fool. Watch out when we have grandkids. My priorities will all change.”

Barry Finnemore is a Portland freelance writer.

The post Diver builds ball retrieval and resale business appeared first on Daily Journal of Commerce.

Standing on the tee of a beautiful par 5, you pull out a driver and take a practice swing, then proceed to shank your shiny new golf ball into a large pond off the fairway. You spend a few minutes searching for it but soon give up, figuring it’s gone forever.
Or is it?
Not if Mike Hughes is on the job.
When Hughes goes to work, he dons an air tank, mask and diving suit. The water he swims in can be so murky he sometimes can’t see his hand in front of his face. He’s come across otter, been bumped by a bass protecting its nest and uncovered what he thought was a battery but turned about to be a plastic container bearing the name of a crematorium.
But in a good year, Hughes can put 20,000 miles on his truck, traveling to golf courses around the Northwest to dive for golf balls that he sells on the used-ball market.
Last year was Hughes’ best – he scooped 182,000 balls out of ponds, lakes and other bodies of water.
For the 56-year-old, diving for golf balls can be a money-making venture, but he considers it more of a hobby that keeps him in good physical shape.
“It’s a good workout,” Hughes says. “After a day of diving I sleep well at night. I was pretty stiff when I got up this morning.”
Hughes dives at 35 to 40 courses in the Northwest. Working alone, he straps a bag to his chest and uses both hands to shag the balls.
“I enjoy it,” he says. “It’s exciting. It’s like beachcombing.”
The job definitely has its hazards. Every dive is a gamble because he never knows if he’ll find balls in good enough shape to resell, and he can easily get tangled in grass and weeds or have a surprise encounter with a wild animal.
“Sometimes you don’t know what you are grabbing. I’ve grabbed turtles and fish. Big fish will follow you wherever you go. Grasses and aquatic weeds take over and sometimes you can’t swim through it. In some places tumbleweeds blow into the pond.”
Hughes sells the refurbishable balls to outfits that clean and resell them. At least one company buys well-worn balls, removes the covers and recycles them into new products, such as park benches. Hughes also sells to individuals and golf courses, sometimes in exchange for the rights to dive at a facility. The amount each ball fetches can fluctuate; some courses buy them back for 10 cents a ball, but the price dropped sharply, to 4 cents, when demand sagged after the Sept. 11 terrorist attacks.
The market for used golf balls spans the globe. Many used balls found on U.S. courses are exported.
Though new-ball manufacturers may cringe at seeing used balls sold at pro shops, Hughes points out that his business stretches the marketing dollar of companies and golf courses that market logo balls because their products are sent “around the world” when resold. And if balls were simply left in ponds and other bodies of water, they eventually would collect in such numbers that their displacement would change the shape of the water features in ways that course designers never intended.
Hughes has always been comfortable in and around water.
He grew up around the wetlands of New Jersey. A former Marine who learned how to snorkel in the service, Hughes was wounded in Vietnam when he stepped on a bamboo spike in his bare feet while doing underwater reconnaissance.
He also has a golf background, working for a time as a golf course superintendent in New Jersey.
Hughes began diving for golf balls five years ago. He got his start at the popular resort in Coeur d’Alene, Idaho, well known for its “floating green” that can be adjusted to increase or decrease its yardage. Today, he works at courses in Washington, Idaho and Montana, and is marketing his services in Oregon.
Hughes says his business got off to a slow start this year because of cold temperatures. Each year he tries to build his clientele in what he describes as a competitive market, but challenges loom on the horizon for entrepreneurs such as Hughes.
He says a product has emerged that turns golf balls black after they have been submerged in water for two days. That effectively drops their value, and would cut into his business.
Nonetheless, Hughes, the father of three grown children, is upbeat about his work, doesn’t seem terribly worried about the future of the business and puts family ahead of his job.
“Everything is a gamble,” he says. “If you did this for the money you’d be a fool. Watch out when we have grandkids. My priorities will all change.”

The post GOLFING AROUND: Diver builds ball retrieval and resale business appeared first on Daily Journal of Commerce.

Last week the 91��Ƶ reintroduced its popular – and much missed – “Bulldozing” column. Free-lancer Dick Montgomery is picking up where the late Jim Jordan left off. Montgomery plans to profile people on the move in the development field, and to feature other tidbits of news in the monthly column.
Jordan, whose column became a fixture of the 91��Ƶ in 1942, literally worked until the day he died. He passed away in 1986 at age 88.
He’s missed a lot around the 91��Ƶ offices, but his wisdom lives on. The newspaper’s production manager, Ali Hassannia, once asked Jordan what his secret to life was. Jordan replied, “Smile.”

HOME GROWN: A tree grown in the Pacific Northwest soon will find a home in the nation’s capital.
White House representatives visited Washington state last weekend to select the Christmas tree that will grace the building’s Blue Room for the holidays.
National Tree Contest champions Ed and Cindy Hedlund, who run Hedlund Christmas Trees in Elma, Wash., will present the tree to First Lady Hillary Rodham Clinton in December.
Later this month, the tree will be delivered by horse-drawn carriage to the White House.
First-generation Christmas tree farmers, the Hedlunds won the national contest in August 1998. Their farm, where they grow eight different species of fir and blue spruce, spans more than 60 acres and has about 70,000 Christmas trees.

A MOVING MESSAGE: Lone Star Northwest, the concrete company, is taking its message about the role it plays in road funding straight to commuters.
One of its trucks, seen tooling down Interstate 84 during the morning rush hour last week, features a sign that indicated the company contributes nearly $200,000 annually toward Columbia County’s road coffers.

LOOK IT UP: A sure sign that the apocalypse is near: Webster’s New World College Dictionary recently published its revised and updated fourth edition. Among the new entries: “win-win.”
Also listed: “Y2K,” “smash mouth,” “e-mail” and “bunker mentality.”
If you’re a trivia buff, you might be interested to know that the new edition features more than 163,000 entries, 7,400 of them new; and more than 860 illustrations, diagrams and photographs.

ALL ABOARD: As you may have noticed, we’ve made some changes in the look of the paper and have several new people working hard to put it together. Here’s our new staff:
Our newest addition, reporter Luke Chambers, will follow architecture, engineering and construction. Among other things, Chambers has worked for Mesoamerica Magazine, a monthly journal in San Jose, Costa Rica, that focuses on Central American economics, politics and human rights issues, and for the Institute for Central American Studies, also in Costa Rica.
Chambers replaces Rich Riegel, who’s moved to the 91��Ƶ’s busy copy desk.
Reporter Bret Sigler, who joined the staff in September, covers small business, trade and law issues. Sigler worked for Mesoamerica for nine months, and following that worked for a weekly newspaper in Las Vegas.
Reporter Barbara Guardino reports on trade and transportation, a beat that encompasses the ports of Portland and Vancouver U.S.A. She has experience working in the Legislature, and has written for several other newspapers, including The Dalles Chronicle and Patuxent Publishing Co. in Maryland.
Reporter Gretchen Fehrenbacher writes about real estate and transportation issues. She’s a seasoned writer who has worked for the 91��Ƶ since last spring.
Associate Editor Joe Wilson comes to the 91��Ƶ from the Molalla Pioneer newspaper, where he was editor. Wilson joined our newsroom about four months ago.
If you’ve got a story that you think should be told, we’d appreciate hearing from you.

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