www.floridaconstructionnews.com Cotney Construction Law earns Top 10 for industry focus FEFPA selects architectural showcase winners for school, college and university design The Katerra and building technology story AEC Marketing Communication in the New World CONSTRUCTION BRIEFS – Major upcoming projects – Association and industry news – Projects and opportunities MARCH 2018
Editor’s Viewpoint By Mark Buckshon Publisher, Chicago Construction News Are you ready for the technological revolution that will likely reshape the way Florida’s architects, engineers and general contractors and trades operate in the years ahead? This is a big question, but the story about Katerra I’ve written for Florida Construction News should cause you to think about the implications of how things will change when big technology capital connects with the AEC indus- try. If things go as expected, there will be a fundamental shake-down in many aspects of our industry. Is all of this hype, perhaps to promote a specific com- pany? I think not. While the publishing industry has many differences from the construction world, it has suffered in- credible dislocation. Most traditional mainstream media businesses have yet to resolve and adapt successfully to the changes from print and conventional broadcast to pri- marily online and social media models. (We’ve made the transition from a primarily print to primarily digital business and I’m learning more every day – but the pace of market change is so intense it is almost overwhelming.) Katerra, after all, may have the early lead in the technol- ogy/AEC contracting space, but I’m sure other new com- petitors will arise, and well-established builders, suppliers, and consultants will adapt their business to the new frame- work and decision-making processes. Just be aware: Huge changes are likely in the way we operate our businesses, and the changes may be coming much more quickly than we could have even imagined just a few months ago. Mark Buckshon is president of the Construction News and Report Group of Companies. He publishes a daily blog at www.constructionmarketingideas.com, and can be reached by email at buckshon@cnrgp.com or by phone at (888) 627-8717 ext 224. IN THIS ISSUE 3 4 5 6 9 11 16 FEFPA selects architectural showcase winners for school, college and university design: Zyscovich Architects leads with four awards Nursing home operators settle fight about mandatory air conditioning power generator regulations – Should public funds help pay for estimated $230 million compliance costs? Florida alleges Jacksonville contractor conducted $1.8 million workers’ compensation scam Cotney Construction Law earns Top 10 for industry focus Construction: Top 10 List of Provisions Included in 2017 Tax Reform The Katerra and building technology story: High tech modular building will revolutionize the North American AEC industry within three years, consultants assert Association and industry news Projects and opportunities Florida Construction News combines a bi-monthly magazine with a weekly newsletter and a website (updated daily), delivering news, analysis and networking opportunities to Florida’s architecture, engineering and construction community. The magazine is distributed primarily online to 9,000 general contrac- tors, specialty contractors, developers, professional services and building owners throughout Florida. For more information on promoting your business to our au- dience and to request rates, see the advertising rates page on the Floridaconstructionnews.com website. You can also contact Chase at chase@floridaconstructionnews.com or phone him at 888-627-8717 ext 212. You can send editorial news releases and announcements to Mark Buckshon at buckshon@floridaconstructionnews.com. Florida Construction News is published by Construction News and Report Publishing Inc. 332 S Michigan Ave, Ste 1032 - C319, Chicago IL 60604-4434. Publisher: Interim editor: Production and design: Administration: Chase Mark Buckshon Raymond Leveille Katherine Jeffrey, Kathy Lepage Printed subscriptions You can request a printed single copy for $18.95 (postage included) or a four issue printed subscription for $60.00 at the floridaconstructionnews.com website. Alternatively, you can read the digital version free of charge online at Floridaconstructionnews.com. © Copyright 2018 Construction News and Report Publishing Inc.
FEFPA selects architectural showcase winners for school, college and university design Zyscovich Architects leads with four awards Award of merit: Harvard Jolly Architecture Cyprus Creek High School Owner: Pasco County School District Builder: Cutler Associates, Inc. Florida Construction News staff writer The Florida Educational Facilities Planners’ Association (FEFPA) has announced the winners of its 2018 winter FEFPA Conference Architectural Showcase competition. The organization representing state-wide school facilities planners selected first place winners and runner-up awards of merit in six categories, representing the different levels of education/school construction. The association says “we had 25 entries for elementary school, middle school, high school, community college, university and special projects.” Zyscovich Architects, headquartered in Miami with Florida offices in Orlando and West Palm Beach, picked up four first place awards, for the elementary and middle school categories, as well as colleges and special facilities. SchenkelShultz Architecture came first in the high school category, and received awards of merit in the elementary and university categories. FEFPA says the awards were based on seven criteria including: 1. Innovative response to educational program; 2. aesthetics and use of materials; 3. flexibility for community use; 4. technology provisions; 5. green design; 6. relationship of spaces and expandability; and 7. site development. Winners in each of the categories are: Elementary school First place: Zyscovich Architects Hamilton Elementary School Owner: Seminole County Public Schools Builder: Pirtle Construction Award of merit: SchenkelShultz Architecture Picolata Crossing Elementary Owner: St. Johns County School District Builder: STG Contracting Group Middle school First place: Zyscovich Architects Dr. Tony Bilbao Preparatory Academy Owner: Miami-Dade County Public Schools Builder: Thornton Construction Company Award of merit: HuntonBrady Carver Middle School Owner: Orange County Public Schools Builder: Walker & Company, Inc. High school First place: SchenkelShultz Architecture Windermere High School Owner: Orange County Public Schools Builder: Wharton-Smith, Inc. College First place: Zyscovich Architects Palm Beach College, Dr. Dennis P. Gallon campus Owner: Palm Beach College Builder: Balfour Beatty Construction Award of merit: MC Harry & Associates Miami Dade College, InterAmerican campus, building 6 Owner: Miami Dade College Builder: OHL Arellano Construction Company University First place: Harvard Jolly Architecture Kate Tiedemann College of Business Owner: University of South Florida, St. Petersburg Builder: Creative Contractors, Inc. Award of merit: SchenkelSchultz Architects University of Florida, Newell Hall Owner: University of Florida Builder: Ajax Construction Special facilities First place: Zyscovich Architects Miami County Day School Center for the Arts Owner: Miami County Day School Builder: Coastal Construction Group of South Florida Award of Merit: Song + Associates, Inc. SWA education center Owner: Solid Waste Authority of Palm Beach County Builder: Song + Associates, Inc. Florida Construction News — MARCH 2018 – 3
Nursing home operators settle fight about mandatory air conditioning power generator regulations Should public funds help pay for estimated $230 million compliance costs? Florida Construction News staff writer How much of a market is there for electrical contractors and generator suppliers to provide emergency backup power, which turned out to be both effective and dysfunctional (depending on the circumstances) when Hurricane Irma blew through Florida last September? The answer varies, especially for the hot-button area of backup power requirements for nursing homes and assisted care facilities – as lawyers and lobbyists take their cases to the courts and the Florida legislature. One estimate puts the cost at $230 million – but who will pay, and when, has been a hot-button controversy. By January, much of the issue had been resolved when Gov. Rick Scott modified proposed regulations that caused nursing home operators to take their objections to the original proposals to court. However, there still are questions about the timeline and overall cost/scale of implementa- tion of the backup power provisions. This story started more than a decade ago, after Hurricane Wilma in 2005. Legislation implemented then required gas stations to have backup power to keep the lights on and pumps running after a natural disas- ter. The original legislation passed in 2006 also would have required all nursing homes to install generators capable of cooling and running their facilities. “That went nowhere as the powerful long-term care industry ob- jected to the price tag,” the Miami Herald has reported. The generators worked as planned in 2017 for the gas stations and re- lated convenience stores, but when Hurricane Irma hit, some assisted care facilities were caught in a bind, and eight people died in a Broward County nursing home left without power. 4 – MARCH 2018 — Florida Construction News The Rehabilitation Center at Hollywood Hills, where eight people died when tem- peratures soared without air conditioning after Hurricane Irma last September. While that nursing home and oth- ers had limited backup power allow- ing them to maintain lights and some medical equipment, they were un- equipped for the higher air condition- ing power demands. After the storm, Gov. Rick Scott di- rected two state agencies to demand that nursing homes and assisted liv- ing facilities quickly add generators and fuel to maintain safe tempera- tures – and they were given a Nov. 15 deadline. However, in late October a judge accepted industry objections to the deadline, and overturned the regula- tions. The Florida Health Care Associa- tion (FHCA), representing nursing home operators, estimates it will cost about $230 million for more than 650 nursing homes to get the higher powered generators needed to keep temperatures at 81 degrees or under for four days following a storm. The industry says it needed more time – and wanted public money – to help pay the cost. There is some deja vu here, relat- ing to the 2006 arguments and fund- ing battles. There, the nursing homes fought – and won – the argument that they didn’t need the generators, as long as they had evacuation plans in place. The argument was that if nursing homes installed generators and would receive patients evacuated from other locations, they should be able to receive some government subsidies for the generator installa- tion costs. However, the funds never materialized, and most nursing homes continued with limited gener- ator power. Unfortunately, the option for evac- uation to other nursing homes didn’t work when Hurricane Irma’s course shifted and residents who had been evacuated from one home found themselves stranded in another loca- tion, that also needed to be evacu- ated. Back in 2006, gas station opera- tors on evacuation routes didn’t put up a fight against the generator legis- lation, even though they apparently didn’t receive any subsidies for the systems, which could have cost $45,000 each (in 2007 dollars) to in- stall. In fact, they helped craft the leg- islation. “Members have a responsibility to their communities and part of that re- sponsibility is to comply with the law,” Jim Smith, then president and chief executive of the Florida Petro- leum Marketers and Convenience Store Association, said in a published interview. Rules set out guidelines for the generator requirement based on the number of pumps, and the popu- lation of the area the gas stations served. While they could use portable generators, there was also a requirement for proper “transfer switches” to ensure the plug-in gen- erators would operate safely when in- stalled. The assisted care/nursing story is different. Industry lobbyists argued the attempt to require generators to
be installed by mid-November 2017, was unrealistic. In October, Gar. W. Chiseller, an administrative law judge with the Florida Division of Adminis- trative Hearings, ruled that “it was im- possible for the vast majority of nursing homes” and assisted living facilities to comply with the orders by the deadline. Gov. Scott initially said he would appeal the decision, and a spokesman for the governor said the administration will continue to work with the legislature to make the gen- erator rules permanent. The FHCA has asked that Medi- caid, which covers about 60 percent of the nursing home days – to cover a corresponding amount of the costs. This would result in a cost to the state of $53.8 million. Federal match- ing dollars would absorb another $84.1 million. Meanwhile, the industry says it is working to be compliant with the new rules – it just needs more time. “Some of our members are al- ready compliant, they were before the emergency rule, and the rest are working towards compliance now,” Steve Bahmer told the Wall Street Journal. Bahmer is chief executive at LeadingAge Florida, which repre- sents both nursing and assisted living facilities. In January, the industry made peace with revised regulations, when Gov. Scott changed the rules so that assisted living facilities no longer must have generators, but instead are required to have ready access to an alternative power source in the event of a power loss. The proposed fuels supply rules also were revised: Those with 16 beds or less must have two days of fuel; those with 17 or more beds must have three days. Any facilities in an area where an emergency has been declared must acquire four days of fuel. “Throughout this process, we have remained supportive of the gover- nor’s original intent — to ensure vul- nerable Floridians are kept safe during emergency situations,” Gail Matillo, president of the Florida Sen- ior Living Association, was quoted as saying in the SunSentinel. “We believe these rules will bene- fit both Florida seniors and the com- munities invested in providing them with quality living environments,” she said. Florida alleges Jacksonville contractor conducted $1.8 million workers’ compensation scam Florida Construction News staff writer Florida chief financial officer (CFO) Jimmy Patronis says Jeovane Fe- lizardo, owner of JJF Construction Services, LLC in Jacksonville has been arrested after a workers’ com- pensation fraud investigation re- vealed that he allegedly used various local money service businesses to cash checks in an alleged attempt to illegally conceal his total payroll from his workers’ compensation insurance provider to avoid higher premium costs. Investigators discovered that Fe- lizardo provided false payroll totals to his workers’ compensation provider and misrepresented his employee’s class codes, a CFO news release said. Felizardo reported his total payroll to be $76,799 when signing up for his policy. Based on the declared payroll amount and the reported em- ployee class codes, Felizardo’s insur- ance company determined the premium for his workers’ compensa- tion policy to be $24,894, the CFO asserted. Florida corporate records indicate JJF Construction Services operated from 7035 Phillips Hwy. Jacksonville After further investigation by the Bureau of Insurance Fraud, investiga- tors found that Felizardo cashed a minimum of 540 checks from April 16, 2016 to April 16, 2017 all issued by contractors doing business with JJF Construction Services totaling $5,929,534. The contractors con- firmed that the checks issued were only to cover labor costs and not any material costs associated. Felizardo’s failure to accurately re- port payroll and class codes to his in- surer resulted in a gross underpayment of insurance premi- ums. Had the actual amount of Fe- lizardo’s payroll and proper class codes been reported to his worker’s compensation provider, the resulting premium rate would have been $1,841,137, a difference of $1,816,243. Felizardo was arrested Jan. 12, 2018 at his place of residence and transported to the Duval County Jail without incident. He has been charged with workers compensation fraud and scheme to defraud. Jail records indicate he was released on $100,000 bond. Records at the Florida Division of Corporations indicate that JJF Con- struction Services LLC was adminis- tratively dissolved on on Sept 22 for failing to file an annual report. Fe- lizardo is listed as the company’s registered agent, at 7035 Philips Hwy. Suite 37, Jacksonville. This case will be prosecuted by Joe Licandro of the Fourth Judicial Circuit State Attorney’s Office. If con- victed, Felizardo could face up to 60 years in prison. Florida Construction News — MARCH 2018 – 5
Cotney Construction Law earns Top 10 for industry focus With offices in Tampa, Jack- sonville, Orlando, Tallahassee, and Fort Lauderdale, Cotney Construction Law, LLP formerly Trent Cotney P.A, has developed into an industry leader in Florida, participating in the construction industry on a policy and educational side, sharing information through events and resources, and representing the industry as a legal and business partner. Florida Bar board certified con- struction lawyer, Trent Cotney, presi- dent, established the firm in 2012. Growing up with a family who worked in construction and personal experience in the industry as he made his way through school, Cot- ney says his focus was on creating a business whose sole purpose was properly serving the customer, and specifically representing the industry. To ensure a unique and relevant understanding of the industry, most of the 19 attorneys the firm now em- ploys, along with key staff, come from construction backgrounds. “When I sit across the table from someone at another firm who does construction law, I know they’re smart, but I also know that there are very few who have had their hands dirty, so to speak, actually working in the field.” Cotney specifically hires people with backgrounds in construction be- cause they know the industry from a business side and can better relate to clients about the nuances of their business and legal matters. “Con- struction is in all of our roots. An ethic of hard work, an understanding of the people and of the work, it is part of who we are and will always be the basis under which we oper- ate.” The firm advocates for the indus- try and serves as general counsel for a number of industry related Florida associations including the Florida 6 – MARCH 2018 — Florida Construction News Roofing & Sheet Metal Contractors Association (FRSA), Florida Refrigera- tion and Air-Conditioning Contractors Association (FRACCA) and the Florida Irrigation Society (FIS). Last year the firm donated more than $130,000 in pro bono time for indus- try-related work, and Trent has do- nated tens of thousands personally to construction associations. Other support for the industry in- cludes assisting with the formation of the National Women in Roofing or- ganization that launched early in 2016 and whose members now number in the hundreds, and two scholarships established to support young people pursuing careers in the industry. “We try to give back to the industry personally and profession- ally, through time, talent and treas- ure,” says Cotney. Cotney has developed and shares his expertise in OSHA (Occupational Safety and Health Administration) de- fense, and has published an Amazon best-selling book titled OSHA De- fense for the Construction Industry.
The firm was also named Lawyer Monthly’s OSHA Defense Law Firm of the Year (2015-2017). The team represents clients rang- ing from small, family-owned opera- tions, to publicly-traded companies. Cotney speaks at various state and national construction association events on topics such as construc- tion contracts, employment and im- migration issues, contractor licensing and collecting payments on projects The firm is a full service construc- tion law firm and handles all aspects of construction law, immigration and employment issues, business plan- ning and formation, and creditor’s rights and bankruptcy. “We are fortu- nate enough to have been recog- nized by our peers and the industry for our service and professionalism,” says Cotney, referencing the lengthy list of honors and awards both he and the firm have won including the Gold Circle Award for service from the National Roofing Contractors Association (NRCA 2014), LegalComprehensive.com's Leading U.S. Construction Law Firm of the Year (2017), and Florida Super Lawyers Top 100 Lawyers (2016-2018). For more information, visit www.cotneycl.com. Florida Construction News — MARCH 2018 – 7
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CONSTRUCTION Top 10 List of Provisions Included in 2017 Tax Reform By Sarah Windham Special to Florida Construction News The last major tax reform legisla- tion was passed in 1986. Since then, the tax rules – Internal Revenue Code amendments, regulations, proce- dural guidance and court case law – have morphed into a complex sys- tem for tax paying contractors. The recently signed bill is a significant modification to the existing system and the consensus is clear. Most businesses expect their income tax expense to decrease, including con- tractors. Though there are many moving parts in the new tax law with the po- tential to affect businesses and indi- viduals to varying degrees, this article highlights what we consider 10 of the most significant changes for construction companies. 1. Individual tax rates and corporate tax rates The final bill settled on keeping the same number of individual tax brackets as in current existence: seven. However, the new tax law re- duces individual income tax rates to 10, 12, 22, 24, 32, 35 and 37 percent, and raises the income levels subject to each tax rate. These rates apply to tax years beginning after Dec. 31, 2017 and beginning before Jan. 1, 2026, unless subsequently extended by future legislation. On the corpo- rate side, the current graduated tax rate was removed in favor of a flat 21 percent rate for tax years beginning after Dec. 31, 2017. 2. Increase in Small Contractor Exemption Amount Under prior tax law, contractors whose average annual gross receipts were less than $10 million were ex- empt from using the percentage of completion (PCM) method of ac- counting for income tax purposes. Under the new bill, the average an- nual gross receipts requirement has been increased to $25 million. This is effective for any contracts entered into after Dec. 31, 2017. It is impor- tant to note that for commercial con- tracts, percentage of completion is still required to be used for purposes of the alternative minimum tax (AMT). While under the final bill AMT was repealed for businesses taxed as a ‘C’ corporation, it was not repealed for individuals. However, it did pro- vide for increased individual exemp- tions. The 2018 exemption amount was increased from $86,200 to $109,400 and the phase out thresh- old increased from $164,100 to $1 million for married filing joint taxpay- ers. The exemption amount for sin- gle taxpayers increased from $55,400 to $70,300 and the phase out threshold increased from $123,500 to $500,000. Contractors, other than ‘C’ corpo- rations, considering making the switch to a method other than PCM for 2018, will want to consider the potential for AMT impacts before making a final decision. If a contrac- tor switches to a method other than PCM for 2018, any contracts entered into before Dec. 31, 2017, would be taxed under the prior method of ac- counting even if the contract contin- ued into 2018. 3. Pass-through income deduction Aligning with a reduced corporate tax rate, Congress provided pass- through entities with a deduction for a percentage of their taxable income. Starting in 2018, a deduction will be allowed for taxpayers who have qual- ified business income (QBI) from a partnership, ‘S’ corporation, or sole proprietorship, subject to limitations. The 20 percent deduction is limited to the lesser of (1) 20 percent of their pass-through business income or (2) the greater of (a) 50 percent of the W-2 wages paid in the qualified trade or business, or (b) the sum of 25 per- cent of W-2 wages, plus 2.5 percent of the unadjusted basis of all quali- fied property. This deduction applies for tax years beginning after Dec. 31, 2017 and beginning before Jan. 1, 2026. 4. Standard deduction, charitable contributions and the Pease Limitation Personal exemptions are removed in the bill in favor of a higher stan- dard deduction effective for tax years beginning after Dec. 31, 2017 and beginning before Jan. 1, 2026. The new standard deduction amounts will be $24,000 for married filing joint or surviving spouse, $18,000 for an unmarried individual with at least one qualifying child, and $12,000 for single filers. Charitable contributions – which, under old law, were limited to 50 per- cent of a taxpayer’s AGI – will now be limited to 60 percent of AGI effec- tive for tax years beginning after Dec. 31, 2017 and beginning before Jan. 1, 2026. The bill will also repeal the current 80 percent deduction for certain contributions to universities made in connection with athletic seating rights. The overall limitation on itemized deductions referred to as the Pease Limitation will be suspended for tax years beginning after Dec. 31, 2017 and beginning before Jan. 1, 2026. This limitation essentially reduced the value of certain itemized deduc- tions for high income taxpayers by three percent for every dollar over the taxable income limit. The phase- out was capped at 80 percent of the total value of itemized deductions. Florida Construction News — MARCH 2018 – 9
5. State and local tax deduction A very impactful change included in the final bill is the limiting of the deduction available to individuals for sales, income, or property taxes paid to state or local tax authority to $10,000 ($5,000 for a married tax- payer filing a separate return) for tax years beginning after Dec. 31, 2017 and beginning before Jan. 1, 2026. This limitation does not apply to property taxes paid or accrued in connection with carrying on a trade or business. The limitation does not apply to state and local taxes of businesses taxed as a ‘C’ corporation. The bill specifically includes a pro- vision that disallows a 2017 deduc- tion for prepaying state or local income tax for a taxable year begin- ning after Dec. 31, 2017. Any amount paid in a taxable year beginning be- fore Jan. 1, 2018 shall be treated as being paid on the last day of the tax year for which the tax applies. 6. Depreciation changes The bill includes a provision that allows for 100 percent expensing through bonus depreciation of cer- tain business assets placed in serv- ice after Sept. 27, 2017 through Dec. 31, 2022. The amount of bonus de- preciation allowed is then phased- down over four years as follows starting: 80 percent in 2023, 60 per- cent in 2024, 40 percent in 2025, and 20 percent in 2026. The requirement that the property be new was also removed and replaced with a re- quirement that the property simply be new to the taxpayer – an impact- ful distinction. The bill includes some additional changes that have the potential to benefit many contractors. For exam- ple, Section 179 expensing limits will be increased to $1 million with the phase-out threshold being increased to $2.5 million with both thresholds subject to inflation increases for tax years beginning after Dec. 31, 2017. Furthermore, the definition of quali- fied property is expanded to include improvements to non-residential real property including roofs, heating, ventilation, and air-conditioning prop- 10 – MARCH 2018 — Florida Construction News erty, fire protection and alarm sys- tems, and security systems if placed in service after the date such real property was first placed in service. 7. Interest expense deduction limitation The bill also includes a provision that limits the deduction for interest expense incurred by a trade or busi- ness to the sum of business interest income, floor plan financing interest and 30 percent of the adjusted tax- able income of a taxpayer for the year. For tax years beginning before Jan. 1, 2022, adjusted taxable in- come will be computed without re- gard to depreciation, amortization, or depletion expense. Adjusted taxable income is otherwise generally de- fined as a taxpayer’s taxable income without regard to any income, gain, deduction or loss not properly alloca- ble to the trade or business, any business interest expense or busi- ness interest income and any net op- erating loss. Real property trades or busi- nesses, including rental property ac- tivities that qualify as a trade or business, may elect out of the inter- est deduction limitation if that trade or business uses the alternative de- preciation system, which generally results in longer, slower depreciation deductions. Any interest not de- ductible for any tax year shall be car- ried forward indefinitely and treated as business interest paid or accrued in the succeeding tax year. An exemption to these rules ap- plies to taxpayers with average an- nual gross receipts for the prior three tax years of less than $25 million. 8. Domestic Production Activities Deduction (DPAD) repealed For tax years beginning after Dec. 31, 2017, DPAD (also known as Sec- tion 199) is repealed. DPAD was a deduction allowed under pre-act rules that allowed contractors per- forming new construction or sub- stantial renovation in the U.S. to claim a deduction of up to nine per- cent of taxable income (with certain limitations). 9. Like-kind exchanges Under the new law, like-kind ex- changes are limited to only ex- changes involving real property that is not primarily held for sale. This new limitation applies to exchanges completed after Dec. 31, 2017; how- ever, a transition rule allows like-kind exchange treatment for any property disposed of in an exchange on or be- fore Dec. 31, 2017, or for any prop- erty received by a taxpayer in an exchange on or before the same date. This exception generally allows for like-kind exchanges already in process to still take advantage of the current like-kind exchange rules. This may have an impact to contractors who have typically exchanged equip- ment and machinery in the past. 10.Estate and gift taxes and generation-skipping transfer tax The law doubles the base estate and gift tax unified credit exclusion to $10 million, effective for dece- dents dying and gifts made after 2017 and before 2026. The bill also increases the GST exemption to $10 million. This effectively increases the inflation-adjusted exclusion and ex- emption amounts to $11.2 million ($22.4 million for a married couple) for 2018. These increased exclusion and ex- emption amounts will provide plan- ning opportunities for contractors looking to transition their estate in the coming years. In conclusion . . . As there are far more elements to the tax reform than covered here, contractors may consider familiariz- ing themselves with the finer details of the changes. Looping in your trusted advisor and CPA is strongly recommended to ensure you are pre- pared for the oncoming effects – both favorable and complex – to your financial posture. Sarah Windham is a partner at the Dixon Hughes Goodman LLP (DHG) office in Charleston, SC. She can be reached at (843) 727-3708 or by email at sarah.windham@dhgllp.com.
The Katerra and building technology story High tech modular building will revolutionize the North American AEC industry within three years, consultants assert Florida Construction News staff writer Is a technological/business model revolution about to overtake Florida's construction industry – yet we hardly see it coming? If building materials consultant Mark Mitchell’s perception is correct, Katerra, a new high-tech start-up combining technology, design, distri- bution and modular (factory) con- struction will soon reshape the industry in manners similar to the way Uber tore apart the local taxi in- dustry and Craigslist decimated local newspapers. “In its own way, I predict this will have as much effect on residential and commercial new construction,” writes Mitchell, based in Boulder, CO. “Lack of efficiency will make the way (building products) manufactur- ers do business now irrelevant in new construction. They may be rele- gated to competing with each other in the repair/remodel, big box and smaller high-end custom construc- tion.” Of course modular building has been around for decades, serving several niche markets in Florida and elsewhere. The difference this time is the integration on a multinational level between technology, design, manufacturing and delivery – and massive capital funding for the new enterprises. Currently leading the pack, Katerra’s company headquarters are the Sand Hill Rd. tech venture capi- talist epicenter in Menlo Park, CA, with a construction office in Scotts- dale, AZ and design office in Seattle. It also is building a Cross Laminated Timber (CLT) factory in Spokane, WA. The start-up purportedly has a val- uation of about $2.5 billion, accord- ing to PitchBook Data. Early investors have raised as much as $244 million – and published reports indicate the company is preparing to raise another $200 million this year, at least. Currently the organization, founded in 2015, has projects under- way in California, Oregon, Washing- ton, Idaho and Nevada, but there is little stopping it from expanding its scope and geographical range. Katerra says it has about 1,000 em- ployees in four countries and already is among the top 25 general contrac- tors in the U.S. “Katerra is bringing fresh minds and tools to the world of architecture and construction,” the company says in its corporate outline. “We are ap- plying systems approaches to re- move unnecessary time and costs from building development, design, and construction.” “With the latest technology at our fingertips, efficiency no longer has to come at the expense of quality or sustainability. Led by a team that combines expertise from the most groundbreaking technology, design, manufacturing, and construction companies, we are transforming how buildings and spaces come to life.” “The way we think about a con- struction site is to turn it into an as- sembly site and make it a factory like we used to do at Flextronics,” CEO Michael Marks said in a published re- port. (Marks led Flextronics in the 1990s and early 2000s.) “The thing that is so messed up in the real es- tate business is how many different parties are involved in getting any- thing done.” In his weekly newsletter, Mitchell – who provides marketing consul- tancy services to a diversity of build- ing product manufacturers – says the coming construction technology/ manufacturing revolution envisaged by Katerra will take place when the company approaches “builders and developers with an offer they can’t Florida Construction News — MARCH 2018 – 11
refuse – to design and build for them at a lower cost with higher quality, and to do it faster.” “What if the builder could elimi- nate the need for designers, estima- tors, installation labor, and materials sourcing,” he writes. “Just like Nike or Apple, builders will become brands who don’t need to actually make anything themselves.” Mitchell suggests the integrated, technology-based modular construc- tion process will uproot the tradi- tional new construction market with these changes: The builder, Katerra, will be order- ing truckloads of products to be de- livered to their factories. No more need for distributors, dealers or con- tractors; • Labor shortages and installation errors will be a thing of the past; • The builder will be taken out of the equation when it comes to product sourcing. There will be no more rebates. Katerra will want the best bottom line price, period; and • Katerra will be able to look at mak- ing really big changes in how homes and buildings are built. Be- cause of their scale and process, it will be easy for Katerra to con- sider big changes like changing to metal framing in residential con- struction. Mitchell predicts Katerra’s industry changes will happen fast. “And just like the taxi industry, the National As- 12 – WINTER 2018 — Florida Construction News sociation of Home Builders (NAHB) and some builders may try to push back with legislation that may slow but won’t stop this change,” he writes. Writing to building products man- ufactures, Mitchell says: “In two to three years, or sooner, you will feel the effects of this change as your larger builders will no longer be buy- ing from you. It will also happen to you in the commercial area.” Mitchell also predicts there will be some high level competition to Katerra, just as Lyft competes with Uber. “Look for people like Elon Musk or others to create new com- panies designed to compete with Katerra.” Katerra and other high-level inte- grated technology/modular builders will gain traction in part because of an increasing number of successful completed projects, coupled with pressures on labor supply caused in part by increasing immigration re- strictions in the U.S., says another consultant. “In 2018, I believe we will see a perfect storm of factors – an aging global workforce, a lack of new en- trants and growing restrictions on free movement of labor - begin to decisively accelerate the uptake of construction integrated manufactur- ing,” writes Kenny Ingram, global in- dustry director at IFS, a software developer. “Government, regulatory bodies and the industry alike will start to re- alize that, while getting more people into the industry is important, as well as trying to increase the number of people onsite, the most strategic so- lution would be to fundamentally change the way we build in the first place.” “New technology is making it eas- ier to work profitably on a global level as well,” he writes. “With 3D printing, for example, costs for both material and long transports are de- creasing substantially. Using tech- nologies such as these, the partnerships will focus more on global competence exchange rather than long-haul transports.” “All three of these trends are woven tight together. Contractors need to work hard to ensure that the right competences are secured while considering how to implement new business models for modular build- ings and construction integrated manufacturing — all this in a con- struction industry that is becoming more global and offers new forms of partnerships. The players who mas- ter this balancing act will be the win- ners in 2018.” Click here for a related video.
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AEC Marketing Communication in the New World: Low cost strategies that really work By Mark Buckshon What are the best techniques and methods to find new business in the current era of rapidly developing technologies and intensified compe- tition? The answer to this question com- bines some new approaches with long-standing traditional and effec- tive marketing strategies. You need to build on your brand - and that is primarily based on your actual client experiences and their genuine enthu- siasm and enjoyment in working with you. Then you apply technological in- novations to accelerate and enhance your positive reputation, with effec- tive client-focused editorial and vi- sual marketing content, a solid website, and some easy to manage social media strategies. Finally, if you wish, you can package these quali- ties, combining current technologies with future-looking concepts includ- ing Building Information Modelling, virtual/augmented reality, and – look- ing forward – the powerful potential of machine learning and artificial in- telligence. At root, the basics of effective AEC marketing haven’t changed in decades. People (and business-to- business clients are of course indi- viduals working for companies) like doing business with organizations where they feel good about their ex- perience. Clearly, your actual work/service/product must be com- petent, but if your clients’ overall ex- perience isn’t at least satisfactory, you will have a one-time relationship. However, your goal should be to make their experience super great, by anticipating needs, communicat- ing frequently, and where you can, providing value added extras that 14 – MARCH 2018 — Florida Construction News don’t cost much money but make the process more enjoyable. Why is the client experience so important? Consider the fundamental data that I’ve gathered over the past decade through an ongoing poll on my constructionmarketingideas.com blog. At least 71 percent of the con- tractors, architects and engineers who have responded over the years say that repeat and referral business is their most important source of rev- enue. (It breaks down to 41 percent from word-of-mouth/recommenda- tions and 30 percent from repeat clients.) Advertising (at 13 percent) and leads services/open RFPs and public tenders (at 11 percent) are sig- nificant business builders but don’t really move the needle as much. Irri- tating and intrusive techniques such as telemarketing and door-to-door canvassing work for only a few con- tractors (at five percent). The point in these numbers is that anything you can do to improve your repeat and referral business will have disproportionate impact on your bot- tom line. So you need to do every- thing you can to connect with and deliver value to your clients. Your goal: Win sincere testimoni- als and recommendations – so you can make it easier for other clients to say “yes” - and of course, to develop additional repeat or recurring busi- ness. Please note: While it is essential to provide great client service, you must never assert that your market- ing/business strength is providing “great customer service”. This is inef- fective. If anyone asserts this fact (assuming it is true), it should be your customers themselves, through their actual experience and testimo- nial statements, either written (or even better) in video format.
That said, there are some things you can do beyond delivering an in- credible client experience These in- clude: • Developing an expertise and rep- utation building content creation strategy (blog, white papers, videos); • building a truly effective website; and • adapting your website and con- tent to responsive social media relationships and concepts. None of these strategies requires much money, though they all require some effort and coordination. I’ll out- line some approaches to succeeding in these three focuses. marketing presence, without costing you any additional money. You’ll want to develop tools to monitor and manage your social media image, inducing positive testi- monials and comments while avoid- ing negative comments and reviews. There are some third party services that help this process. They invite your clients to provide a “satisfac- tion” report, and if it is excellent, they will encourage customers to post their positive comments directly on the social media sites. If they are negative, they will encourage your clients to communicate with you pri- vately so you can resolve the issue and avoid negative reviews. Content creation The goal here is to make it easy for current and previous clients to say good things about you, and to learn valuable information to build on your quality/expertise reputation. Your blog provides a good starting point – because by regularly writing/videoing your insights, obser- vations, and stories, you add to your reference points and knowledge. Your blog messages can easily be posted to your website (see below) and then auto posted to social media. Videos don’t need to be slick or fancy. In fact, testimonial videos that are grainy and rough are in my opin- ion more credible and effective than slickly narrated commercially pro- duced efforts. However, I think your writing should be solid and well-edited. If you don’t have someone who writes well on your staff, you may need to contract with a freelancer to gener- ate or edit your material. This will cost you some money, but will be far less expensive than conventional paid advertising. How much will all of this cost? Your greatest expense will likely be the review/enhancement of your internal processes and existing client service/relationships. You may need an outside consultant to look more closely at your operations and sug- gest improvements, but if you can see the issues that need to be re- solved and make things more friendly and satisfactory for your clients, you’ll be well on your way. Full-scale website development services vary in price, but generally you can get a specialist to complete a solid project for you for about $5,000 or so. If you are ready to do it yourself or contract directly with website developers, you can reduce this cost by one or two orders of magnitude. (Yes, that would mean $500 or even $50.) Writing services can be free (out- side of your time) if you are compe- tent and literate or have an in-house staff person who can write well. Ex- pect to spend upwards of a few hun- dred dollars per significant piece if you need to pay a freelancer or out- side marketing consultant for these services. Developing your social media relationships Company profile pages for Face- book, Twitter and LinkedIn can be created without fee, and you can easily connect them to your website so that every time you add a relevant post, it will auto feed to the relevant social media sites, leveraging your Forward thinking options If you are ready to step into the future and embrace new technolo- gies, you can achieve a significant marketing advantage by building on your uniqueness and forward think- ing vision. I think the best starting point for most AEC professionals will be to embrace Building Information Model- ling. Costs for BIM resources have been declining, and there are in- creasing opportunities to learn how to use these tools. With BIM skills and resources, you can have fun with automated/virtual reality (and re- ally showcase your presentations/projects in an interac- tive way). If you want to go even further into the future (but we are talking years, not decades), recent developments with machine learning and artificial intelligence offer exciting if some- what scary automation options – be- cause the machines can learn from their environment and ultimately the science fiction concept of computers being smarter than humans could become a reality. Conclusion: You don’t need to spend much to achieve a lot Even if you go full-bore and con- tract out all the services described above, I can’t see it necessary for you to spend more than $10,000 a year on a truly effective marketing strategy. This is a drop in the bucket compared to even the cheapest forms of paid media advertising. If you elect to spend money on other forms of marketing/advertising, in- cluding trade show exhibits, print and paid online advertising, the client relationship, website and social media models will provide you with a powerful backbone and will boost the effectiveness of your more ex- pensive marketing approaches. Go for it. You can truly achieve great marketing communications re- sults for very little money. Additional resources I’ll provide you with a list of serv- ice providers (and some observa- tions/recommendations about them) without charge if you email me at buckshon@constructionmar- ketingideas.com. Florida Construction News — MARCH 2018 – 15
Will $31.7 billion Hyperloop be built to connect Orlando and Miami in 26 minutes? MAJOR UPCOMING PROJECTS See our top ten list on our website: www.floridaconstructionnews.com Will FPL ever complete the $20 billion Turkey Point nuclear project expansion Florida Construction News staff writer Florida Power and Light’s (FPL) planned $20 billion expansion of the Turkey Point nuclear power plant takes second place in Construct Connect’s list of the top 10 planned Florida construction projects. But it is uncertain how soon, and whether, the massive proj- ect will be built. FPL hit the “pause” button on the project for four years in 2016. But the utility indicates it is still com- mitted to nuclear power despite the industry’s recent retrenchment. In May 2017, FPL came closer to clearing what might be the last hurdle in obtaining its federal li- cense for expansion during a two-day hearing when it defended attacks from environmentalists and neigh- boring cities over plans to dispose of millions of gal- lons of wastewater used in cooling the new reactors in wells deep underground, The Miami Herald re- ported. FPL first applied to the federal Nuclear Regulatory Commission (NRC) to build the AP-1000 reactors in June 2009. Long delays are not uncommon in the nu- clear field, and matters have been complicated by the bankruptcy of the reactor’s designer, Westingthouse. NRC hearings were reportedly scheduled for De- cember, 2017, but the NRC website referencing the project was last updated last June, and there is no in- dication in published reports about the hearing’s out- comes. In February, FPL applied to the NRC to continue op- erating the existing reactors until 2057. In other words, this mega-project is still in the plan- ning stages, but it is far from certain when, and if, it will actually be built. 16 – MARCH 2018 — Florida Construction News Florida Construction News staff writer It is an idea that may seem out of science fiction, and if it is built, will cer- tainly be one of the largest construction projects in the state’s history – but the high-speed rail route that would allow commuters to travel between Orlando and Miami in 26 minutes is one step closer to reality. Officials with Hyperloop One, a private effort first intro- duced by billionaire Elon Musk in 2013, have included the Florida route on a list of 10 that had cleared an initial proposal review. Each of the cities will now receive resources to help de- velop feasibility studies for the regions. Of course, the idea still has a long way to go from concept to reality. Construction Connect reports the estimated cost of the system, if built, would be a little more than $31 billion (to be exact, if you can be so finite in things of this scale, $31,097 million). This puts it as the highest value of the top 10 Florida construction projects currently in planning. Florida’s Hyperloop team is led by AECOM, an engineering firm, and has the backing of the Miami Dade Depart- ment of Transportation and Public Works, Miami- Dade Metropolitan Planning Organ- ization, and additional private and public sector partners, HyperLoop One said in its announcement. “The Hyperloop One Global Challenge started as a call to action for innovators, engineers, trailblazers and dreamers around the world who shared our vision of creating a new mode of transportation,” said Shervin Pishevar, cofounder and executive chairman of the Hyperloop One group, in a release announcing the finalists. Hyperloop One has been scheduled to test the electric- powered train, which would travel at more than 750 mph, this year, at a Nevada site, though there appear to be snags – the original test track has proven too short to get the train to the required speed. An optimistic timeline has the vehicles ready to ship cargo by 2020 and passengers by 2021, the Orlando Sentinel has reported. The 257-mile Orlando to Miami project is the second short- est proposed route of the 10 finalists. Only a 208-mile pro- posal to connect Bengalaru to Chennai in India is shorter. The U.S. had three other finalists: A route that connects Dallas, Laredo and Houston in Texas; one that connects Chicago to Columbus, Ohio, and Pittsburgh; and a route con- necting Pueblo, Colorado, and Cheyenne, Wyoming, through Denver.
ASSOCIATION AND INDUSTRY NEWS Plaza Construction opens central Florida office led by Todd Fultz Fort Lauderdale Historical Society to recognize developer Dev Motwani at annual fundraiser The Fort Lauderdale Historical So- ciety (FLHS) says Dev Motwani, pres- ident of Merrimac Ventures and founder and managing partner of Chieftain Residential, will be honored at the annual History Makers fundraiser that commends individu- als who have made an impact on the growth of the City of Fort Laud- erdale. Plaza Construction says it plans to open an expansion office in Central Florida. Todd Fultz will lead the office serving markets including Tampa and Orlando, the company said in a news release. “We view the central Florida mar- ket as having a lot of potential, not least because of its connectivity, world-class educational institutions, and lower land costs compared to metro areas like Miami or Fort Laud- erdale,” said Plaza Construction Group Florida president Brad Meltzer. “We look forward to levering our unique expertise and international reach to bring the area’s most excit- ing projects to fruition.” “I’m pleased to join Plaza Con- struction and to continue working in Tampa, Orlando, and the surrounding markets,” Fultz said in a statement. “The area’s steady economic growth, highly skilled labor pool, and, as of late, urban renaissance, are what have kept me here and what has in- spired me throughout my career.” Previously, Fultz was vice-presi- dent of the central Florida region for Manhattan Construction and had worked as a project executive for DPR-Hardin Construction. He currently serves as the board chairman for the Florida Gulf Coast Chapter of Associated Builders and Contractors (ABC). founder and managing partner of Chieftain Residential, a yield oriented distressed residential fund purchas- ing single-family homes and residen- tial land, primarily in the southeast U.S. and Texas. Tickets for this year’s History Mak- ers Gala are $100 (online service charges not included) and can be purchased online at https://www.eventbrite.com/e/his- tory-makers-honoring-dev-motwani- tickets-42247744140 or by contacting Kamal Khan at (954) 463- 4431, ext. 106, or via email at info@flhc.org. Florida headquartered contractor wins support service contract for California detention center “Dev Motwani has a longstanding investment in the past, present and future growth of our beautiful City of Fort Lauderdale and is committed to preserving our vital history in each property he develops,” FLHS execu- tive director Patricia Zeiler said in a statement. “In addition to real estate, Dev is dedicated to the arts, educa- tion and a variety of nonprofit causes. We’re pleased to spotlight his efforts and we invite the commu- nity to join us as we celebrate his achievements.” This year’s event on April 5 will celebrate the city’s 107th birthday with cocktails, food stations and dancing under the stars on the downtown Fort Lauderdale campus. Motwani is currently involved with $1 billion in development projects in- cluding the Four Seasons Hotel and Private Residences, The Gale Bou- tique Hotel and Residences, Broad- stone Oceanside, and the Flagler Village Hotel - all in the Greater Fort Lauderdale area. Motwani is also the Moss Construction, based in Ft. Lauderdale, says that it has been awarded a $1.3 million-plus contract to provide phase II management sup- port services to the county of Tuolumne, CA, with the development of the county’s new J.H. “Jack” Dambacher Detention Center. The 63,000 sq. ft. jail north-east of San Francisco has been designed by Lionakis. “We are humbled to have been se- lected by the County of Tuolumne to provide counsel throughout the cre- ation of this modern jail,” said Moss vice-president David Burton. “Moss is proud that the county has recog- nized our knowledge and expertise in the development of detention center facilities and that it has trusted our firm with this role.” The new 230-bed jail will be lo- cated on a 6-acre site and will con- sist of central control, housing, housing support, program rooms, medical clinic, food service, laundry services, intake administrative of- fices, public lobby, visitation area and vehicle sally port. Harris Construction Company in Fresno, CA is the project’s general contractor. Construction is slated to begin in March and be completed in August 2019. Florida Construction News — MARCH 2018 – 17
ASSOCIATION AND INDUSTRY NEWS GRAEF acquires Miami based Consulting Engineering & Science, Inc. GRAEF-USA Inc., a full service en- gineering, planning and design firm headquartered in Milwaukee, says it has acquired Miami based Consult- ing Engineering & Science, Inc. (CES). In partnership with GRAEF’s Or- lando office, the CES purchase will expand its services throughout the State of Florida and the broader southeast region of the country, GRAEF says in a statement. For more than 30 years, CES. has been a leading consulting engineer- ing firm in South Florida, with a focus on civil engineering, coastal engi- neering, and environmental sciences, the announcement said. These focus areas will build upon and strengthen GRAEF’s existing services. CES leaders John Guttman, Richard Bochnovich and Nelson Ortiz have been named associates of GRAEF. The firm’s additional staff will also continue through the transition as employees of GRAEF. In the south-Florida area, GRAEF will oper- ate under the name Consulting Engi- neering & Science. “This is a win-win situation,” said Guttman, CES’s former president. “Our firm and GRAEF are a natural fit. We look forward to continued growth and enhanced opportunities as we integrate into the GRAEF com- munity.” CES will join GRAEF’s existing of- fices in Milwaukee, Green Bay, and Madison, WI; Chicago, IL; Orlando; and Minneapolis, MN. PROJECTS AND OPPORTUNITIES Miami Worldcenter’s CAOBA apartment tower tops-off 444-unit tower at 43 stories Downtown Miami co-developers CIM Group and Falcone Group have topped-off construction at CAOBA, a 444-unit apartment tower within Miami Worldcenter, the 27-acre mixed-use development. Formerly known as the first phase of the Seventh Street Apartments, the 43-story market-rate rental building at 698 Northeast 1st Ave. becomes the first tower to top-off construction at the $2 billion Worldcenter, marking a major milestone for one of the largest urban development projects 18 – MARCH 2018 — Florida Construction News underway in the country, the developers say in a news release. Construction of CAOBA is anticipated to be completed in the fall of 2018. CAOBA will include more than 20,000 sq. ft. of ground-floor retail space for shops and restaurants, connecting Worldcenter’s ‘High Street’ retail promenade and plaza to the east between Northeast 1st and 2nd Avenues. Plans for an adjacent 40-story, 429-unit tower have been approved by the City of Miami. “Caoba is the Spanish word for mahogany, which is a variety of wood prized for its beauty, durability and color – attributes that will reflect the luxurious, organic sensibility of the building’s amenity and public spaces,” Miami Worldcenter’s managing principal Nitin Motwani says in a statement. “Residents of this complex will value being able to walk outside their door and be in the heart of a 10- block ‘city within a city’ complete with offices, shopping, dining and entertainment. And our proximity to Miami-Dade’s primary transit systems, including the new Brightline high-speed rail, means residents will be able to jump on a train and beat the traffic to anywhere in South Florida.” $158 million Tallahassee downtown redevelopment project moves forward with document signing Developer North American Properties has signed the last five documents with the Tallahassee Community Redevelopment Agency (CRA) to build its Cascades Project on the hem of the city’s 24-acre public park, The Tallahassee Democrat (T-D) reports. “This is a major step in the creation of a transformational, $150,000,000 project,” CRA director Roxanne Manning wrote in a memo to the agency’s board members. “Thanks to the CRA board’s leadership and vision, we are looking forward to the creation of a project which will enhance Tallahassee’s downtown with a new activity center adjacent to Cascades Park.” (The Cascades Project website says the project value is $158 million.) Two city blocks will be levelled to make room for the development – described as the largest of any
PROJECTS AND OPPORTUNITIES downtown CRA project in Tallahassee’s history. There will be apartments, brownstones, retail, restaurants, a hotel, a gym and a $353.6 million total economic impact. The T-D news site reports that the project occurs at a crucial time for the downtown CRA, “which has been the focus of an ongoing FBI public corruption investigation regarding dealings with a number of high-profile local business people and lobbyists who have ties to city elected officials.” Construction starts on 11-story Ft. Lauderdale condo following $10 million land purchase in 2015 Developer SobelCo has announced the groundbreaking of an 11-story condo project at 321 N. Birch in Ft. Lauderdale, with an overall retail value of at least $46 million. Guests at the ceremony for the project marketed as 321 at Water’s Edge included City of Fort Lauderdale Mayor Jack Seiler, SobelCo chairman Samuel Sobel, president Jeffrey Sobel, and vice- president of residential development Tirso San Jose; Gus Rubio, COO, Douglas Elliman Florida, and Caprice Weber, executive vice-president and managing director of Douglas Elliman Development Marketing; and Michael Kaufman, CEO of contractor Kaufman Lynn. Fort Lauderdale city commissioners and local real estate brokers attended the event on Jan. 24. The project with 23 residences is on a site with signage that indicated the least expensive units would sell for at least $2 million (while marketing materials assert that the starting price is $1.95 million.) Property records indicate that 321 Birch LLC purchased the site in 2015 for $10 million and the land has an assessed value of $4,290,130. Miami Jewish Health adds to affordable senior housing in Broward Miami Jewish Health has announced it will add 110 independent living apartments for low-income seniors at its 25-acre Douglas Gardens North community in Pembroke Pines. “It always has been our goal to assist the elderly by providing affordable housing,” said president and CEO Jeffrey P. Freimark. “The next phase of the Douglas Gardens community in Broward County will help those in need to enjoy a quality standard of living.” Miami Jewish Health obtained financing for the $36 million project at 709 SW 88th Ave. in a joint venture with Housing Trust Group in Coconut Grove. Amenities at the building, which is expected to open in 2019, will include a community room, private courtyard and gardens, and a computer lab. This news follows a report from a year ago that the organization is working on a master plan for the next 30 years and beyond. The City of Miami’s Urban Development Review Board in February, 2017 recommended approval of a sweeping master plan for the health service, along with Phase I, which will include construction of a cutting-edge memory care facility, Miami Today reported. Empathicare Village would include a new 142,708-sq. ft., three-story facility and a 135,576-sq, ft. three- story parking garage accented by murals from local artists. The review board’s unanimous recommendation for approval included two conditions: that the developer considers adding liner uses to the garage to help activate Northeast 53rd Street, and a final landscape plan must be brought back to the board for review. Boca Raton to see at least two major condo projects At least two major condominium projects, with hundreds of units in several buildings, will reshape downtown Boca Raton. Mizner 200 will be one of the largest construction projects in Boca Raton’s downtown, offering three nine-story apartment buildings across nine acres, the SunSentinel reports. The project will include 384 new condominiums and garages with 672 parking spaces. Southeast Mizner Blvd. will be overhauled, with new canopy trees, park space and benches along an 8-foot-wide, paver- laden sidewalk. The published report says it is too early to say when construction will begin. Meanwhile, New York-based developer Elad Group said it will begin demolition on the future site of its latest project, The Monarch Boca Raton. With the commencement of demolition, the developer makes way for construction on the new project which is set to break ground in the summer of 2018. “The demolition process marks an important milestone in our journey to bring this landmark project to the Boca Raton market,” said Yoel Shargian, CEO of Elad Group. “After working collaboratively with the City of Boca Raton and its community members to create a plan for this unique development, we are eager and enthusiastic to bring this project to market over the next few months.” Florida Construction News — MARCH 2018 – 19