With economic trouble buffeting many states' budgets, governors and legislators are asking Congress and the incoming Obama administration for tens of billions of dollars in federal aid in what they hope will be a new economic-stimulus bill. The states' request could include up to $136 billion for highways and other infrastructure projects. Office of Pennsylvania Gov. Rendell Rendell says funds would go for major project, not potholes. President-elect Barack Obama has said that a new stimulus measure would be his first order of business after he takes office. House Speaker Nancy Pelosi (D-Calif.) has said key committee chairmen are working
Russia Tower, next in line as Europe’s tallest building, has fallen into the credit crunch. Work on the 600-meter-tall Moscow building has been shelved, according to local reports, although the design team has yet to be told. The project has been “delayed,” says David Klondar, general director at the Moscow office of Waterman International, the project’s lead structural firm. The basement excavation had started and permitting was well in hand, Klondar says. Project architect is London-based Foster and Partners. The building's engineering team includes Chicago-based high-rise expert Halvorson and Partners. Photos: Peter Reina / ENR
As Americans cut back on driving, federal motor-fuels taxes and other revenue flowing into the Highway Trust Fund dropped by $3 billion in fiscal year 2008, compared with the sum collected the year before, the U.S. Dept. of Transportation reports. DOT Secretary Mary Peters warns that if traffic continues downward, the trust fund may show a shortfall sooner than anticipated. Other observers share that worry. DOT said on Nov. 19 that the trust fund took in $31 billion in fiscal 2008, down 8.8% from the $34 billion collected in 2007. As income fell, spending from the trust fund on highway
World Bank global project funding, estimated at $40 billion a year, may subsidize projects with significant adverse environmental and social risks due to rushed or inadequate U.S. government oversight, says a report by the U.S. Government Accountability Office. GAO says in 2007 the U.S. Treasury Dept., the lead monitor, and other agencies were only able to review 14 of 95 World Bank funding proposals, and some possibly harmful projects proceeded without U.S. government support. GAO also claims economic and political “considerations” may lead the U.S. to support project funding despite possible environmental impacts. The Treasury Dept. disputes some GAO findings
Owners of projects in the education sector this year are faced with conflicting market conditions. On the one hand, the market promises robust new rounds of construction due to record-breaking student populations, but on the other hand, the market threatens to delay or kill projects and programs that seemed economically feasible just a few months ago due to the meltdown in the financial sector and declining revenue for states, municipalities and universities. Owners face a growing need for new K-12 and higher education facilities in nearly every community in the nation. School districts, colleges and universities need new construction to
Next year may turn out to be one of the toughest years in recent times for developers of new office, retail, hotel and other commercial projects. A variety of negative forces, including the economic slowdown, overbuilding and unavailable funding, are making it increasingly difficult for all but the most sure-thing projects to advance to financing and construction, according to developers, real estate investment trusts and industry analysts. Slide Show Forest City Enterprises The deal for an office building in Albuquerque was set up by Forest City before the meltdown. Related Links: The Complete Top Owners Sourcebook with Market Data and
Hospital and health-care owners around the nation, midway into capital construction programs that were envisioned and budgeted in less-dour economic times, are nervously watching Wall Streets woes as they race to meet growing demand for high-performance, patient-friendly, rapidly delivered facilities. Industry analysts forecasts that earlier this year projected strong hospital starts until 2009 based on unprecedented demand, reversed course by fall when owners began to balk at new plans and projects as stock markets tanked and bond rates soared. Photo: Childrens Hospital of Pittsburgh Childrens Hospital of Pittsburgh will be the first paperless, all-digital hospital. Erikson Retirement Communities Erikson Retirement
New construction starts fell 5% in September, to a seasonally adjusted rate of $523 billion, with decreased activity for both nonresidential building and nonbuilding work, according to McGraw-Hill Construction, of which ENR is a unit. Mcgraw-Hill Construction Analytics “The declines are consistent with trends expected through the end of 2008 and into 2009,” says MHC Chief Economist Robert Murray. “Commercial structure types have lost momentum. In addition, erosion in the fiscal health of states will dampen activity for institutional and public-works sectors going forward.”
Water and wastewater markets have grown nicely over the past decade but funding issues may create a clog in the works in coming years. Declining revenue at state and local levels as well as the tight credit market are almost certain to curtail gains built up over the past 10 years, say industry analysts. Slide Show DCWASA District of Columbia moves into design stage of program to meet stricter Chesapeake Bay discharge requirements. Related Links: The Complete Top Owners Sourcebook with Market Data and Analysis Between 1997 and 2007, water and wastewater agencies around the country faced capacity issues, overdue
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