Portsmouth building boom slowed by credit crunch

Fallout from the credit crisis and financial meltdown of 2007-2008 is still all around us these days. Even with improving conditions, you can hardly read a newspaper or watch the news on TV without some mention of the crisis and its impact. Although many people and businesses have been financially impacted, physical signs of the crisis are just now starting to show up on our local landscape.

Construction of hotel in Portwalk project (map)

I was in Portsmouth the other day and I did a quick photo shoot of some of the development projects underway. I had done a similar tour earlier in the year and while some of the projects seem to be going along strong, others have been delayed or scaled back. Causation can be hard to pinpoint, but it's probably a safe bet that many of the delays in these projects are due to financing issues or concerns about the economy.

In downtown Portsmouth, the Portwalk project is still moving along, although the developer split the project into three phases and is only working on phase I currently. Phase I includes a 128 room Residence Inn by Marriott and 12,000 sq feet of retail space. Phases II and III include condos (or maybe apartments), more office and commercial space, and a parking garage but seems to be on hold indefinitely at this point.

Rendering of the proposed Portwalk project (portwalkNH.com)

Parade Mall (Portwalk site) just before demolition (June 2009)

Parade Mall demolition (June 2009)

Shell of Residence Inn is nearly weather tight (Dec 2009)

View of Residence Inn from Maplewood and Deer (Dec 2009)

Rendering of Portwalk's Residence Inn from Hanover Street (portwalknh.com)

A Westin Hotel has also been approved across the street from the Portwalk project. The Westin project appeared ready to go, and the hotel was even listed on the Westin's website. However, there are no signs of construction and the hotel listing on the Westin website has been removed. There's no official word on the status of the project at this point.

Site of future Westin Hotel next to Deer Street in Portsmouth (map)

Also downtown, the Martingale Wharf project is just now coming out of a 9 month long stall. Work has recently started again on this 50,000 sq ft retail, commercial, and residential condo project on Bow Street after months of sitting idle.

Photo of Martingale Wharf project from across the river taken in June 2009 (map)

Photo from December shows little progress on the project since June

On the positive side, the project at the old Pier One Restaurant site (soon to be residential condos) appears to be moving along despite the tough economic conditions, as shown in the photo below.

Photo of work at the old Pier One Restaurant site at the end of State Street (map)

Finally, the City of Portsmouth project to relocate the waterfront deck at Poco's Restaurant and rehabilitate the public right-of-way seems to be coming along. With the construction of a new building at Martingale's Wharf, this area now offers the only riverfront view on this section of Bow Street.

View of small city park under construction behind Poco's Restaurant (map)

Additional links

PortwalkNH.com

Cathartes Private Investments (portwalk developer)

Uncertain Economy delays much of Portwalk (Fosters - 6/2009)

Martingale Wharf project delayed (SeacoastOnline - 4/2009)

Martingale Wharf project receives extension (Fosters - 11/2009)

Martingale Wharf project (CB Richard Ellis developer)

Westin Hotel Portsmouth website (hotel not built yet)

Westin's opening date in Portsmouth reported too soon (SeacoastOnline - 10/2009)

City to experience construction boom (SeacoastOnline 4/2009)

Residential Sprinklers - What's a life worth these days?

... The cost-per-life-saved for residential sprinkler systems is estimated at between $2-$36 million (in US dollars) according to reports from New Zealand and Canada.

Cost per life saved in $ CAD (Canadian Housing Information Centre)

According to a recent WMUR-TV report, the New Hampshire State Building Code Review Board has voted to require sprinkler systems in new residential construction starting in 2012.

Most fire safety officials laud the use of sprinkler systems for their ability to save lives, reduce injuries to building occupants and firefighters, and reduce the costs of fire damage. There's not much debate about whether sprinkler systems save lives and reduce property damage. They do.

The debate comes in when officials try to figure out if the savings are enough to offset the estimated $1.00 to $1.50 per square foot that sprinklers will add to the cost of constructing a new home. With the average square footage of new construction in New England running at around 2200 square feet, sprinklers could easily mean a $2500 to $3000 increase in cost.

That's where the analysis starts to get interesting and the squeamish head for the exits. Just how much is a life worth anyway? People say you can't put a value on a human life, but I say heck, engineers and safety officials have to do it all the time. Vehicle designers, transportation system planners, and of course, medical professionals are all too familiar with this gruesome mortality math. To start, I found this encouraging table from the US Fire Administration that shows that NH has the lowest fire death rate in the country, at 4.6 deaths per year per million. Regardless of where you stand on the sprinkler issue, that's good news.

Next, I did some quick googling and the first sources on cost-per-life-saved for residential sprinkler systems that I found were outside the US. (I wonder if this says something about our collective squeamishness here in the US).

This report from New Zealand estimates the cost per life saved at around $2-$5 million dollars (I did a currency conversion from the numbers in the report). Another report from Canada put the cost per life at a whopping $36 million. Still another report from the UK puts the number at around $1 to $2 million. Finally, the only US report I could find in my quick google search, from the Pennsylvania builders Association, puts the cost at over $80 million per life saved. Obviously, there's plenty of room for fudging the numbers and some of the groups producing these estimates have a vested interest in inflating the numbers to avoid new regulations, but at least you can get an idea of the order of magnitude.

Soooo, What say you? Are you worth $2 million? or maybe $5? How about $80. Just some food for thought...

To be fair, advocates of these mandates point out that they not only save lives and reduce injuries, but they also can protect property by reducing the severity of fires. The economics might be a bit tenuous, but I can't really blame the folks that have to run into burning buildings for advocating for more fire-safety equipment. These regulations would almost certainly make the outcomes they witness in their day-to-day jobs a lot less horrific.

More Links:

US Fire Administration (FEMA)

USFA home sprinkler myths and facts

USFA State Fire Death Rates

HomeFireSprinkler.org

USFA fire safety tips for the holidays

Greenland Mall Construction Update - #3

Target is bustling with shoppers following its grand opening last week. According to this recent MSN Money article, the Greenland target is one of 17 new stores with expanded food options:

The 17 expanded food stores offer all of the merchandise found in our general merchandise stores with the added convenience of fresh food. This new format has an open-market layout and features new food additions including basic fresh produce, fresh meat and bakery goods. Each expanded food format store employs 100-250 team members and is approximately 135,000 square feet.

According to this SeacoastOnline article, the Greenland store has 123,688 square feet of space and employs 165 people. Also, the store has a Starbucks, Target Cafe, and a pharmacy.

The word on the street is that Lowe's (shown above) is targeting an early December opening (UPDATE: according to SeacoastOnline, it's now scheduled for Jan 8, 2010). The shell of the building is coming along and it won't be long before the roof is ready to go on.

Pictured above, just behind the red Target ball, is the gravel space where the new Stop & Shop store will go.

Apparently, they've signed a lease on the land and are paying rent, but as of yesterday, they haven't broken ground on the new store. I'm not sure why construction is delayed, but I'll dig a little to see what I can learn and provide an update later.

Links

Greenland Mall Construction Update #1

Greenland Mall Construction Update #2

SeacoastOnline - Greenland Target Store Opens

Greenland Mall Construction Update - #2

A few weeks ago I did a post about the progress at the new shopping center that's under construction in Greenland, NH. I thought I'd do a quick update on the progress on the new Target and Lowe's stores, and get some new photos.

As you can see from these new photos, Target certainly looks ready to go. Although before you head on over to Greenland, you should know that the grand opening for Target isn't until July 26th.

Even though the store isn't open yet, the parking lot was bustling when I shot these photos. Presumably, these cars belong to the new employees who are stocking the shelves and getting ready for the grand opening.

Even the shopping carts and cash registers look ready to go!

Progress on the Lowe's building to the left of the new Target, is not quite as far along. The shell of the building is more defined than it was in my previous post, but the construction crew on this job has lots to do before Lowe's will be doing any grand openings. I think they're still on track for a fall/winter opening at Lowe's. (UPDATE: according to SeacoastOnline, the opening is scheduled for Jan 8, 2010).

Despite all this activity on the site, there's still no sign of a Stop and Shop building. There is an unpaved empty gravel area to the right of Target, that I presume will be the Stop and Shop building, but so far there's no sign of any construction there. Let's hope they're not a victim of the tough economy.

Electricity in New Hampshire - The Merrimack Station Scrubber Project

A discussion about electricity in New Hampshire would be incomplete without mention of Merrimack Station in Bow, NH.   Readers may recall that Merrimack Station is one of the 5 largest power plants in the state.  In fact, Merrimack Station is New Hampshire's largest coal-fired power plant, as well as the largest plant in PSNH's power generation portfolio.

Merrimack Station's two coal-fired units were built in the 1960s and are rated at 496 megawatts total, together providing over 10% of the power generation capacity in the state.  Because it's fueled by coal, Merrimack Station is always able to produce power at a lower cost than any other fossil fuel powered plant in the state.  As a result, it's almost always running at its maximum output.

Coal arrives at Bow Station from Portsmouth multiple sources (see comments below for more info)

Coal is the least expensive fossil fuel for power plants by far.  The heat energy contained in a fuel is measured in millions of British Thermal Units (MMBtu), and fuel costs are compared using dollars per MMBtu.  For 2009, coal is estimated to cost $2.16 per MMBtu, natural gas $4.35, and oil between $8.60 and $12.23 depending on the grade.  The cost for each fuel can bounce around wildly, but coal seems to always end up the cheapest.

OK, coal is cheap.  So what's the problem you might ask?  Well, coal may be cheap, but burning it emits lots of pollution and those emissions result in health and environmental issues that come with their own costs.

Fuel emissions data from theEnergyGuy.com

In the table above, the pollutants listed are carbon dioxide (CO2), sulphur dioxide (SO2), nitrogen oxides (NOx), carbon monoxide (CO), hydrocarbons (HC), and particulate matter (PM). 

Over the years, our collective understanding and appreciation of the dangers of these toxins has increased and that's resulted in several mandates to reduce emissions at power plants around the country.  In 2006, the NH legislature decided that NH too needed to clean up the output from its coal-fired power plants.  The result was a directive to PSNH to install a mercury and sulfur dioxide scrubber at Merrimack Station.

PSNH got moving on the directive and made a plan to connect the scrubber to the exhaust from the plant's two generating units.   You can see the stack for the new scrubber on the left side of this recent photo from Merrimack Station in Bow.

The photos below show that construction is well underway.  Even on a Saturday, when these shots were taken, crews were hard at work all around the site.

I couldn't help but notice the porta potty sitting on a platform at the top of the new stack.  I guess it makes sense, as  I'm sure it's a long trip down.  Seeing this close-up gave me renewed appreciation and respect for the construction workers who take on projects like this.  I'm not that afraid of heights, but that stack is waaaay up there!  

Although construction on the scrubber is well underway, the project has become very controversial lately.  The main source of the controversy was a cost increase that PSNH announced last year.  The original estimate for the scrubber was $250 million dollars, but once PSNH had completed the design and started the contracting process, they increased the estimate to $457 million.  

Since I'm late to the party, I won't get into a detailed analysis of the pros and cons of the project.  Check out the links at the end of this post, or google "merrimack station scrubber" if you're up for some digging.   

I'll end with a  list of the highlights of the pros and cons, as well as a listing of some of the hidden and not so hidden forces at work pushing for and against the scrubber.

Arguments in favor of the scrubber:

• Coal is cheap (about $2.00 per MMBtu compared to $4-10 for gas or oil)
  
• Using coal keeps our energy portfolio diversified and secures supply (comes from US and south america not middle east)
  
• The plant itself is paid for and has life left in it
  
• The project will result in needed jobs in industries that are suffering
  
• It's needed to comply with the law and in the end we'll have one of the cleanest burning coal plants in the country

Arguments against the scrubber:

• Coal may be cheap but when you add in the scrubber, the cost per mwh is no bargain
  
• The plant will still emit lots of bad stuff  even after scrubber is done
  
• The plant is very old and big stuff could break in the next 15-20 years, costing more money
  
• The plant's boilers are old and finicky - they only burn special coal blends that can be tough to find and cost more
  
• New cap-and-trade legislation and other laws could make emisions more costly than they are now - Many argue that this plant requires an emissions "free lunch" to be cost competitive.  Once the costs of the plant's other non-scrubbed emissions are priced in the plant could become very expensive

 

As with any public decision, politics and special interests are usually at work, sometimes behind the scenes.  $457m is a very large project so there's plenty of raw cash at stake.  But IMO, there's more than just the construction dollars at play as far as special interests go.

Forces pushing for the scrubber:

• Deregulation laws prevent PSNH from building or owning new plants - once Merrimack Station closes, PSNH loses about 40% of its generation capacity for good
  
• Equipment manufacturers, construction workers, powerplant workers, and associated unions and trade groups will gain from project contracts
  
• The coal industry wants to secure demand for their product
  
• Some ratepayers believe keeping the plant operating as long as possible will keep rates lower

Forces pushing against scrubber:

• Environmentalists don't like coal because it pollutes and the mines leave behind a mess - they'd prefer the plant shut down
  
• Independent power producers (TransCanada Hydro, FPL, etc) will have less competition if the plant shuts down
  
• Regional natural gas and oil suppliers would prefer their fuels were used to make power instead of coal
  
• Some ratepayers are worried about rates skyrocketing because of the project

Google Map of Merrimack Station in Bow, NH

View Larger Map

A brief PSNH infomercial on the scrubber project

Links

Full Text of NH Scrubber Law

PSNH info about Clean-Air (scrubber) project

Nashua Telegraph article on the scrubber debate

Letter from Gary Hirshberg/Stonyfield Farm arguing against the scrubber

Letter from Gary Long - Don't Scrub the Bow Scrubber

US Dept. of Energy - Short term Energy Outlook

Recent WSJ Article about prices of coal vs. gas

Sierra Club Info about Coal Pollution

Greenland Mall Construction Update

This post is a quick update on the progress of the 56 acre, 300,000 sq. ft shopping mall project in Greenland NH. The new mall will house a Target, a Lowe's, and a Stop and Shop grocery store. Massachusetts based Packard Development is apparently on track for a staggered opening of the property in the second half of this year.

As you can see from the photo above, the new Greenland Target appears all but done from the outside. That's good since the grand opening is scheduled for July 26th.

Below you can see the beginnings of the foundation for Target's future neighbor, presumably Lowe's.

According to a Lowe's press release, the Greenland, NH location will have 117,000 sq ft of retail space with an additional 29,000 sq ft of outdoor garden center space. Also according to Lowe's, a store of this size typically costs around $18.5 million and creates an estimated 175 new jobs. The photos below show bricklayers fast at work on the back wall of the new structure.

Although the Target opening date is set for next month, opening dates for Lowe's and Stop and Shop haven't yet been established, but are roughed in for the fall/winter of 2009. (UPDATE: according to SeacoastOnline, the Lowe's opening now set for Jan 8, 2010).

The 56 acre site formerly housed an Osram-Sylvania manufacturing plant which had been sitting idle for ten or fifteen years.

Having a bad day at work...

Yesterday afternoon, there was a roof collapse on the construction site of the new CVS at 323 Lafayette Road in Hampton. This is the site of the former Hampton Cinema, next to the Galley Hatch. The accident happened while workers were setting the roof trusses with a large crane. Several trusses crashed down into the steel shell of the new structure. No one was hurt.

By early evening, workers were removing the debris from the building with a large crane.