Market Outlook: Building
Natural gas drags industrial construction, but public/private building marches on

By Martin Schwartz

Building construction is a bright spot in Louisiana's economic outlook for 2005, but the chemical industry could cause some drag on industrial building, said economist Loren C. Scott, president of Loren C. Scott & Associates of Baton Rouge.

"Chemicals, which have been the driving force of most industrial construction activity in the state certainly in the 90s, are doing nothing," Scott said. "They are not expanding at all. They are postponing maintenance work as much as they possibly can and still be safe. The reason is they are making things using natural gas and it's very difficult for them to compete in the international markets right now."

But high natural gas prices are having a positive effect on some new construction projects.

"There are about seven new liquefied natural gas terminals that are either underway or going to be built during the next three years," Scott said. "We're talking about very large projects that usually range from $500 million to $700 million apiece."

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Scott said Cleco is currently considering spending nearly $1 billion to retrofit two of its gas-fired generating plants to coal-fired plants. Louisiana Generating is also considering investing $1 billion to expand its coal burning power generators.

"When you take into account the LNG and these retrofits and expansions that are coming about because of high natural gas prices, these are very sizeable investments in the economy," Scott said.

Other major projects that Scott expects to impact the construction economy include:

• Expansion of the New Orleans Convention Center (pending settlement of litigation).
  
• Construction at Fort Polk in Leesville and England Air Force Base in Alexandria, estimated to be in excess of $200 million.
  
• About $125 million being spent to build and provide the infrastructure for a new Union Tank Car facility in Alexandria.
  
• About $600 million invested in nearly all of the state's refineries to reduce the content of sulfur in diesel fuels to meet federal requirements.

"We expect construction employment to grow during 2005 and 2006, which is great compared to what it has been doing, but it's certainly not going to be the kind of growth that we had in the 1990s," Scott said.

He added that the national economy should begin growing in 2005 and that will create a better environment for business as well as construction.

Projects

L'Auberge Du Lac Hotel & Casino, Lake Charles. Workers on the L'Auberge Du Lac Hotel & Casino had a tough time keeping their boots dry.

Built on the banks of the Calcasieu Lake, the $145 million project started in September 2003 with extensive de-watering to enable the crew to reach the work site.

"It was a dredging disposal area from the Calcasieu River, so it was like a swamp," said Duane Duffy, project director for Manhattan Construction Co. of Houston. "We had to come in and clear the site and put two different types of fabrics down to do the fill on so we could bridge the bad soil."

When completed in April 2005, the facility will house 741 rooms, an amphitheater, restaurants and the largest riverboat casino in the state.

The casino vessel is being constructed by LEEVAC of Jennings and will hold more than 1,500 slot machines and 60 table games.

"Once they transport it up here and push it into the basin, then we'll drive the cantilever sheet-pile wall on the four sides that contain it," Duffy said. "It will be totally enclosed on four sides with sheet piling. The water can then be regulated inside that basin to keep the vessel at a constant elevation."

Harrah's New Orleans - Poydras Street Hotel. Three of the state's powerhouse contractors joined in this $140 million joint venture to build the 26-story, four-star hotel in the block surrounded by Poydras, Fulton, Lafayette and South Peters streets.

Carl E Woodward LLC and Walton Construction Co. formed NOW2 LLC, which stands for New Orleans Woodward Walton, said Jeff Blanchard, assistant project manager.

The third major contractor working on the project is Broadmoor LLC.

"They're technically a subcontractor of NOW2, subcontracted to do the foundation, the superstructure and the cladding of the tower, which is levels three up to 26," Blanchard said.

The 450-room hotel will feature a restaurant, suites and nearly 6,800 sq. ft. of meeting rooms. There were two existing structures on the original site, one of which has been incorporated into the new structure's design. The second building was demolished and some of its brick and granite have been salvaged for the new building's exterior.

The foundation required 700 lin. ft. of sheet piling and more than 4,000 cu. yds. of concrete. More than 250 steel pipe piles were also driven, some more than 200 ft. deep.

Student housing & associated facilities, Southeastern Louisiana University. Capstone Building of Birmingham, Ala., is currently working on new dormitory living quarters at Southeastern Louisiana University in Hammond. The $35 million project has been divided into two phases, with the first of four buildings scheduled for completion this month.

Before getting started, old dormitory buildings had to be demolished, requiring asbestos removal by two subcontractors: Basic Industries of Baton Rouge and Pro-Tech Environmental Services Inc. of Tickfaw. Then 2,500 yds. of dirt in 8-in. lifts was brought in to bring the ground to grade.

The dormitories are built on 6 in. of post-tensioned concrete foundation and are wood framed with a brick veneer for three stories and wood siding on the fourth story.

Craig Jendrusch, project manager, said each of the buildings will have 360 rooms measuring approximately 20 ft. by 20 ft.

Phase one is scheduled for completion in January with the total project completion in August. Jendrusch said the company is negotiating for an additional phase of dorm construction after the completion of this job, but nothing has been finalized.

He said the current goal is to make up for lost time and complete the first phase on schedule.

"The rainy season put us about a month behind, but we're back on track to finish on time," Jendrusch added.

Shreveport Convention Center and parking garage. Yates Construction of Philadelphia, Miss., is building Shreveport's $65 million Convention Center and Parking Garage.

"The job is fairly quick for its size," said Mickey Rosenblum, Yates vice president.

The project consists of two structures separated by Market Street in downtown Shreveport. The 350,000-sq.-ft. Convention Center will be the city's largest public building, boasting a 100,000-sq.-ft. exhibition hall, 18,000-sq.-ft. ballroom and 10 meeting rooms, each measuring more than 1,500-sq.-ft.

"The roof and floor trusses to create those open rooms are quite large," Rosenblum said. "It took two 200-ton cranes to set them."

The multipurpose building has been designed to accommodate a variety of events including trade shows, conventions, receptions and meetings.

The convention center will also feature a full-service kitchen capable of serving up to 5,000 people.

Across Market Street, and connected by a pedestrian bridge, a multi-level parking garage will accommodate more than 800 vehicles.

"We expect that the garage will be finished sometime in the summer or early fall and it will be turned over to the owner as soon as it is finished," Rosenblum said. The convention center should be completed by November.

Bienville and Iberville buildings. The Iberville and Bienville buildings, the final two of four new buildings in the Capitol Park Interpretive Master Plan, are currently under construction in downtown Baton Rouge.

The Bienville Building, a $30.4 million project being built by Ratcliff Construction of Alexandria, is being constructed on the site formerly occupied by the state's Department of Education building. When completed, it will be the new home of the Department of Health and Hospitals.

Steel price increases almost made the new structure cost prohibitive, said Rob Ratcliff, project manager.

"The state worked with us on changing steel piles to precast concrete piles," he added.

Across Fourth Street, Milton J. Womack & Co. of Baton Rouge is constructing the second building, the $28.3 million Iberville Building, which will house the Department of Social Services, said Adam Bourgeois, assistant project manager for Milton J. Womack.

When the State Land and Natural Resources Building was imploded to make way for construction of the Iberville, the building's original basement slab was left behind.

"We drilled and did our pilings through the slab," Bourgeois said. "We did 74 piles on this job, whereas the guys next door (Bienville) actually did close to 300." The 14-in. piles were driven to depths of up to 95 ft. and a 3-ft. basement slab was poured on top.

When completed, the art deco-inspired buildings will work together in an attempt to bring all eyes to the Capitol, he said.

Useful Sources:

For a live shot of the Shreveport Convention Center jobsite, go to: http://www.ci.shreveport.la.us/Convention%20Center/WebCam.htm

For more information about L'Auberge Du Lac Hotel & Casino in Lake Charles, go to: http://www.pnkinc.com/new_developments/#PTP_040430_16463089_CVRN1

For an update on projects that are revitalizing downtown Baton Rouge, go to: http://brgov.com/dept/ddd/projects1987.htm