Alabama Report
Huntsville, Mobile to see vibrant construction pace; highway bill to help

By Sandra Bearden

"Alabama's economy is still on the crack, with growth in some areas but not in others," said Ahmad Ijaz, economic analyst with the University of Alabama's Center for Business and Economic Research.

Through May 2005, the dollar value of nonresidential building contracts negotiated in Alabama was slightly ahead of figures for 2004, according to data issued by the Alabama Real Estate Research and Education Center. This year's total non-residential construction figure is on track to exceed 2004's total of $2.1 billion.

A midyear check of state construction industry leaders indicates that activity is strongest in metropolitan areas, especially in Huntsville at the state's northern border and in Mobile at its southern tip.

"Alabama has eight distinct construction markets," said Henry T. Hagood Jr., executive vice president of Associated General Contractors of Alabama. "Normally, four or five markets will be in good shape. Now, all eight markets are having steady construction. There doesn't seem to be a big let-up. If anything, I think construction will increase."

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Huntsville's construction market is especially vibrant.

"Everything up here is going strong - retail, residential, commercial and manufacturing," said Lorraine Lee, president of the North Alabama chapter, Associated Builders & Contractors (ABC). "Redstone Arsenal in Huntsville will soon have between 3,000 and 5,000 new jobs as a result of recent decisions by the Base Realignment Closure Commission. We've been lucky not to lose jobs from military base closings but to gain them."

One offshoot of Huntsville's flourishing economy is World Famous Bridge Street, a $200 million development in Cummings Research Park that was announced last spring. Bridge Street will include dining, shopping, entertainment facilities, apartments and office space. A $40 million Westin Hotel is slated to open in 2006 in the development.

Other notable north Alabama projects include expansions at Huntsville Hospital, the University of Alabama at Huntsville and Calhoun Community College, Decatur. Several companies have major projects planned or under way. These include phase one of Northrop-Grumman's $50 million campus.

In the Mobile area, the already-booming local economy received a strong shot in June when EADS North America selected the Brookley Industrial Complex as the site for its proposed $600 million military refueling tanker production site and for a new Airbus Engineering Center. Completion of the production site hinges on Air Force contracts. EADS expects to open the engineering center in 2006.

Barbara Estes, president of ABC's Mid-Gulf Coast chapter, said waterfront development is strong. "The state docks just received $80 million in state money to convert the Port of Mobile to a container port," she said. She added that the project will get under way in 2007 and will increase traffic flow through the port.

Other development around Mobile Bay is diverse. About $500 million in condominium construction is under way at Gulf Shores. Other large projects include a $60 million federal courthouse, $12 million cancer research center at the University of South Alabama and 41-story office tower.

"We're also in the third year of school construction funded by a $300 million bond issue," Estes said.

The outlook also is good around Montgomery, where a Hyundai manufacturing plant should draw satellite businesses and industries, and in the Auburn-Opelika area.

Birmingham ABC President Jeff Masters said the prospects for commercial construction in central Alabama are "fantastic." For instance:

• There is a proliferation of lofts and condos in the Birmingham area, with more than 3,000 units planned or in the works. Some involve downtown revitalization, with renovations planned for such historic buildings as the City Federal Building and Pizitz Department Store.

• oNew projects include a $25 million Birmingham News building and a $22 million renovation of the SouthTrust Tower.

• There is continued expansion of the state's automotive industry, spurred on by the success of Mercedes and Honda >> operations and potential benefits of the new Hyundai plant.

• In Jefferson County, a $1 billion dollar bond issue for school construction will fund renovation or replacement of dilapidated, outdated structures.

• Southern Company plans a $6.2 billion retrofitting of its steam plants to meet EPA standards. Some of this construction will be in Alabama.

While commercial building construction is flourishing, the future also looks good for road and bridge construction in the state.

"Congress passed a long-overdue federal highway bill that will provide us with an opportunity for more work," said Billy Norrell, executive director for the Alabama Road Builders Association. "I think the Department of Transportation will be able to let contracts on some longer-term jobs." Alabama's share of the $286.4 billion program will average about $727.6 million a year through 2009.

Norrell listed some major projects contingent on federal funding as:

• Extension of Interstate 85 from Montgomery through the western part of the state. "Planning/engineering studies for that are under way now," he said.

• Work on the Northern Bypass that will complete a perimeter interstate linking major interstates in the Birmingham area.

• Widening of Alabama River bridges and interstate rehabilitation in the Montgomery area.

According to several construction organization leaders, a major industry challenge is the continuing shortage of workers, especially skilled craftspeople.

"It's been an ongoing problem, but getting worse," said ABC's Masters. "Industry groups have formed the Construction Education Foundation of Alabama to attract more recruits into skilled trades."

In the Mobile area, ABC sponsors a program that teaches "construction English" to Hispanics. "They're our emerging workforce, but a transitional one, so we're trying to address that," said ABC's Estes.

The status of Alabama's top construction projects ranges from just-completed to barely under way. Here are some of them:

RSA Tower, Mobile. The 700,000-sq.-ft. office tower is scheduled for completion in July. With 35 stories of occupied space and another six floors housing mechanical systems and equipment, it will be the tallest building in Alabama.

A fiberglass pinnacle will top the tower, which has an exterior of precast concrete. Owned by the Retirement Systems of Alabama, the $110 million structure was designed by TVS of Atlanta and is being built by Archer-Western Contractors of Atlanta.

The RSA also is renovating the adjacent historic Battle House Hotel under separate contracts. A grand ballroom will join the two structures.

"Tropical Storm Cindy and Hurricane Dennis both came by here this summer," said Pete Faulkner, project manager. "It slowed construction up some, but we're back on schedule."

Renaissance Ross Bridge Golf Resort and Spa. Outside Birmingham, the RSA has just opened another major project - a resort/conference center on the Robert Trent Jones Golf Trail.

Ross Bridge has already booked the Bruno's senior golf tournament for 2006. The three-building luxury resort includes 258 guest rooms with balconies overlooking the golf course, plus 10 luxury suites. Other amenities include a 12,000-sq.-ft. spa and salon, indoor and outdoor swimming pools, golf pro shop, restaurants, ballroom and meeting rooms.

Goodwin, Mills and Cawood of Montgomery (with offices in Birmingham) designed the resort, which features a veneer of stucco and Alabama sandstone and a bell tower in the center of the complex. Doster Construction of Birmingham is the construction manager.

"The veneer was the most intricate I've ever worked with," said Bill Bowman, Doster's project manager. "Installing it involved a lot of trades, so sometimes we had people from different crafts working together and sharing the same scaffold. Tying together three buildings with different numbers of stories also was complicated."

Jackson-Olin High School. Doster is the general contractor and Goodwin, Mills and Cawood the architect for a new Birmingham high school scheduled for occupancy next summer.

Saia Construction handled site preparation. The $30.8 million, two-story school will replace two older high schools - Jackson-Olin and Ensley - in the Birmingham city school system. The two-story, 265,000-sq.-ft. school will include 90 classrooms, a 450-seat cafeteria, media center and administrative offices.

The school also features an 1,800-seat gym, 750-seat auditorium, practice gym and football stadium.

"One feature is a career wing that includes classrooms for auto repair, welding and culinary arts as well as standard labs," said Leon Barkan, program manager for Volkert and Associates, Mobile, which is managing the project. "It's important we complete work by next summer, as two separate student bodies will be moving in."

Jefferson County Wastewater Treatment Plant. Elsewhere in the Birmingham area, B. L. Harbert International has begun an upgrade and modification project for Jefferson County Environmental Services on the county's wastewater treatment plant in Fultondale.

Work began in June and is scheduled for completion July 2008.

"We're converting the facility from chlorine type treatment to ultra-violet treatment, which is more environmentally friendly," said Tom Lee, Harbert's senior project manager. Hendon Engineering of Birmingham designed the project.

The $52.4 million contract calls for removing outdated equipment and structures and completely replacing them.

"One obstacle we face is that we must keep the plant in operation constantly," said Tom Lee, senior project manager. "We'll have to get new facilities on line before decommissioning the existing operation."

Embassy Suites, Huntsville. Flintco Inc. of Memphis began working on the 300-unit Embassy Suites the last day of 2004. Construction of the 10-story building is on track to complete by late summer 2006.

"We're now in the process of constructing a 1,000-ft. pedestrian bridge connecting the hotel to the Von Braun Civic Center," said Mike McDaniel, project manager. Located in downtown Huntsville, the $32.8 million, 336,000-sq.-ft. hotel will be a full-service facility with meeting rooms, restaurant, lounge, pool and atrium.

Lohmeyer-Russell PC of Springfield, Mo., designed the hotel. Scott Tarwater, senior vice president for developer John Q. Hammons Hotels and Resorts, Springfield, Mo., said his firm was attracted to Huntsville because of its strong business and governmental economy.