NEXT - Special Issue, Spring 2010

are we there yet?

Special Issue

a publication of

NEXT ®

Editor: Gary L. Skog, FAIA, LEED APManaging Editor: Judy LittleArt Director: Scott A. Withers, AIGAAdvisor: Ralph J. Mocerino, AIA Contributors: Thomas C. Brockway, PE, LEED AP; C. Richard Hall, FAIA, ACHA, LEED AP, EDAC; Andrew S. Jaworski, AIA, LEED AP; Dennis M. King, FAIA, FESD, LEED AP; Christoper L. Knell, AIA, LEED AP; James W. Page, PE, LEED AP; Robert C. Robicsek, AIA; Enrique Suarez, AIA, LEED AP; Stephanie Sulcer

NEXT is a publication ofHarley Ellis Devereaux Corporation© 2010Send comments and suggestions to:[email protected]

In this issue:

Maria Vaz, Ph.D.Provost

Lawrence Technological University

Dr. Glenn N. WagnerChief Medical Examiner

County of San Diego

Robert W. Nestle, PEUniversity Engineer

Michigan State University

Richard L. Torri, AIA, LEED APScience & Technology Studio Leader

Harley Ellis Devereaux

Cindy M. HollerPresident

Mercy Housing Lakefront

John R. Dale, FAIA, LEED APK-12 Education Studio Leader


David M. Jaeger, AIA, LEED AP, EDACHealthcare Studio Design Leader


Justin J. OhrmundtPartner, Chief Operating Officer

Stadt Group, Ltd.

Chuck LehnertVice President of Facilities & Construction

The University of Toledo

Robert F. KieslingExecutive Director of Facilities Management

Grossmont Union High School District

Ralph J. Mocerino, AIACorporate + Commercial Studio Leader


Bonnie Humphrey, RADirector of Design & Construction, Facilities Management

Northwestern University

Susan F. King, AIA, LEED APLife Enhancement Studio Design Leader


Larry H. EisenbergExecutive Director, Facilities Planning and Development

Los Angeles Community College District

Brent T. Miller, AIA, LEED APHigher Education Studio Leader


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Printed in the USA on environmentally responsible and sustainable paper with 100% of the fiber from independently certified, well-managed forests, or controlled wood manufactured with electricity in the form of renewable energy (wind, hydro, and biogas) and includes a minimum of 10% post-consumer recovered fiber.

Design: Harley Ellis Devereaux Communications

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What’s NEXT?gary l. skog, faia, lEED aPchiEf EXEcuTivE officErharlEy Ellis DEvErEauX

It would be a gross understatement to say that the last 18 months was a challenging time for the design and construction industry, and for the clients we serve. Faced with evaporating funding sources, disappearing credit lines, and an uncertain future, everyone has had to scramble just to stabilize their situation let alone move forward with new ventures. And for NEXT Magazine, the global economic crises was making it just as challenging to find stories to tell.

Looking back, though, it occurs to us that rather than ignoring the economy, the “Great Recession” is the story. Keep in mind, we’re not saying we’re out of the woods yet, but who would have guessed we’d be this far along a year ago?

So how did we all make it through the downturn so far? What strategies did organizations employ to survive and to begin moving forward again? How badly were they affected to begin with? And, perhaps more importantly, what do people see as the “new normal” for their industry and the role design will play in it?

We posed these questions to a cross section of industry leaders as well as key market-focused leaders at Harley Ellis Devereaux. Their answers, though as different as their organizations, are similar in one respect; they all share an unwavering optimism about the future. Enjoy their stories!

If you would like to share your story, email us at [email protected].

NEXT Special Issue - Spring 2010 | 1

What’s important to me is optimism. I’m a very positive person and I always need to find the positive side of everything that happens. This keeps me going and makes me a better person. I am as positive now as I was before the recession. Of course we are in very difficult times, but these difficult times cannot deter us from what the future will be. Times are difficult now, but they will pass; the difficulties will be overcome just like everything else. We just need to be smart about it.

Lawrence Technological University is very optimistic about its bright future. The knowledge society we are in requires more and more people to become better educated. Having a society that embraces even more education than we have now is exciting to think about. A future where education is needed is important not only to us as citizens and as individuals, but also from the business point of view. Education is the future of business. I also believe that education frees us and it is our education that helps us control our own destiny.

Lawrence Tech’s vision is to be the preeminent private university that produces leaders with an entrepreneurial spirit and a global view. It is a very aggressive vision that we strive to reach every day. It is the driver for the university.

In order to achieve our vision within the context of the “new normal,” we needed to adjust our perspective on behalf of our students and the business community. The recession made us rethink some of our programs and be open to new opportunities for different programs we never

even thought we would offer. Several of them are related to the film industry, which is emerging in Michigan. As an architecture, engineering, science, and management university, we never thought about programs related to the film and media communication industries. However, we have already put some certificate programs in place and are starting some degree programs in set design and in animation.

To address the needs of engineers who, up until now, have been working in the automotive industry, we are putting the tools together for them to pursue careers in the defense industry. We are also looking at how to capitalize on our expertise in information technology and apply it in the health care environment. Our partners in the design community have expressed the need for certain skill sets; therefore, we now have programs in health care design, global design practice, interior architecture, and architectural engineering.

This recession has given us the opportunity to think and act differently. For me, that’s the positive side of the recession.

Dr. Vaz joined Lawrence Technological University faculty in 1983 after completing her doctorate in physics at Kent State University. In 1992 she was named chair of the Department of Natural Sciences and in 1994 became associate dean of the College of Arts and Sciences. In 1998 she was appointed associate provost and dean of graduate programs. Dr. Vaz was name provost in 2006.

Maria Vaz, Ph.D.ProvosTlaWrENcE TEchNological uNivErsiTysouThfiElD, michigaN

Of course we are in very difficult times, but these difficult times cannot deter us from what the future will be.”

2 | NEXT Special Issue - Spring 2010

While many agencies, perhaps even governments, are taking a very conservative approach to recovery, I see these times of challenge as times of opportunity to work outside the box and explore partnerships in government, industry, and academics.”


Dr. glenn n. wagnerchiEf mEDical EXamiNErcouNTy of saN DiEgosaN DiEgo, califorNia

The recession has had a direct impact on a very small but very critical operation from a staff and budget perspective. Since no agency can have all the resources it needs at all times, these economic conditions gave the Medical Examiner’s office a chance to take a fresh look at ways of providing our services through volunteerism and through public-private partnerships. Our newly opened facility gives us more opportunities to market to those public-private partnerships in a way that would have not been possible before.

The new reality is that it’s not business as usual and that change is constant. While many agencies, perhaps even governments, are taking a very conservative approach to recovery, I see these times of challenge as times of opportunity

to work outside the box and explore partnerships in government, industry, and academics. We also need to determine the needs of the community and be able to assign a value to it. That enables one to market your own vision and objectives, and to create the performance measures that will hold you accountable to your provider, the public. I am excited about that.

The recession has brought about a lot of cultural issues. It is clear that with a reduction in staff and budget while still having to provide the same, perhaps increased, level of service, you need to do things smarter and better. For me, that means developing partnerships with the community at every level.

This office is accredited by the National Association of Medical Examiners, the American College of Graduate Medical Education, the American Board of Forensic Toxicology, and the American Board of Death Investigations. These certifications come with an expectation of performance and that performance affects our staff and budget. Our new facility gives me an opportunity to expand ways for doing business and finding better ways of doing business. By just having this space in this particular location, the Medical Examiner’s Office now has the foundation to improve and grow.

Dr. Wagner was appointed San Diego County’s Chief Medical Examiner in 2003. Prior to this position, he was director of the Armed Forces Institute of Pathology in Washington, D.C. His military career spanned 33 years. Dr. Wagner has taken part in a number of major death investigations, including the Jonestown-Guyana mass suicide and the Challenger space shuttle explosion.


robert w. nestle, PeuNivErsiTy ENgiNEErmichigaN sTaTE uNivErsiTyEasT laNsiNg, michigaN

Michigan State University has not been immune to the “Great Recession,” but we are fortunate that our funding comes from a variety of sources. There are bright spots right alongside the rough spots making these times interesting and challenging.

Our enrollment is up. The University’s general fund is down. Funding for research grants is fairly stable. State funding has been reduced. Endowment funds have dropped dramatically. Our housing unit is completely self-supporting and has embarked on a 10-year reconstruction program. It’s not all doom and gloom.

One thing we know for sure is that we will survive.

I have been at Michigan State University for 35 years now, and have learned that you don’t forget lessons from the past because they are going to repeat themselves. If you stay in one spot as long as I have, you understand that the rough economic times we are in right now are similar to what we have gone through in the past. Everyone in the construction industry knows that it must tolerate cycles. If you forget, you just have a convenient memory because it happens over and over again. This down cycle is somewhat more severe than ones in the past, but we have been through this situation before and we will make it through again.

It is interesting to discuss the recession with some of the younger engineering staff and students who are experiencing rough economic conditions for the first time. Just listening to what they are saying is like déjà vu! Been there; done that. But, of course, they have not and it’s necessary to listen to their concerns and their ideas.

Recent discussions have revolved around energy conservation and a renewed interest in that area, just like the late 1970s and early 1980s. Back then, the engineering staff had a difficult time getting users in a building to think about energy and money savings when they implemented conservation strategies. Most of our focus was working in the mechanical rooms making the systems run efficiently. The impact to the environment and the University’s budget was real, but was never really noticed.

Sustainable design and energy conservation is a priority for today’s students. When you encourage them to turn the lights off, you get a positive reaction and that’s good news for everyone. There are even contests to see which residents’ hall can reduce their energy consumption the most. This is one of those lessons learned that has repeated itself in a new and meaningful way.

Bob has worked at Michigan State University’s Physical Plant since his junior year at MSU. Thirty-five years later, Bob is now the University Engineer responsible for all construction projects at the University.

This down cycle is somewhat more severe than ones in the past, but we have been through this situation before and we will make it through again.”


An old Japanese proverb is very applicable to today’s business environment …

“Fall down seven times – Stand up eight.”

The proverb seems to capture the hardships we all face today in the world of economic uncertainty.

As the demand for new construction opportunities in both private and public sectors begins to slowly rejuvenate, we see our clients being extremely cautious in taking those initial steps of expanding their built environment in 2010.

In previous downturns, the industry always knew the upside was just a few months from turning the corner. With this recession, the upside remains an elusive shadow lingering off in the distance.

Recently, I had lunch with a decades-long core client whose company recently posted a substantial 2009 fourth quarter profit. Though this is great news for this organization, our client indicated that they will not do business as they have in the past. Their new business model will be to cautiously monitor this new resurgence in product demand while at the same time not overreact to the current spike in sales by trying to recapture market share with a significant new building expenditure program.

As a result of their on-going downsizing, our clients are now placing greater dependence on us to assist them in meeting their long- and short-term facility needs. We have observed that more and more of our major clients are looking for unique and specialty-based services from us. A few examples of those specialty services include long-range campus master planning, sustainable design initiatives for existing buildings (LEED EB), and assistance in the development of signage programs aimed at developing or reinforcing their corporate brand.

Unique Times – Unique Challenges!

Rick has 36 years of experience with a broad mix of commercial, government, and corporate clients. With a focus on the management of the design process for highly technical and complex buildings, he has a proven track record for controlling costs and meeting established commitments. Rick can be reached at [email protected].

richarD l. torri, aia, leeD aPsciENcE & TEchNology sTuDio lEaDErharlEy Ellis DEvErEauX

Unique Times –Unique Challenges!”


Unique Times –Unique Challenges!”


This recession has changed all of us. I think it is different than other recessions I have experienced because there is a paradigm shift happening. I do not see this as a recession where things will go back to the way it was before. We are really imagining a different time and that means design and architecture will need to change with that paradigm shift.

For us as owners and managers of housing for very low income people, some of whom were at one time homeless, we have to pay attention to squeezing every bit of efficiency out of everything we do. Our buildings not only have to be sustainable from a design perspective, but from an efficiency perspective as well. This has an effect on how we approach design and architecture.

During recessionary times, we recognize we are part of something larger than ourselves. We begin to realize that we are truly part of the communities that our buildings are in and the people we serve are in. Therefore, the way we think about architecture and design is contextual to those communities, and we really need to be leveraging the resources of the community as a whole in different ways than before the paradigm shift.

Mercy Housing Lakefront has always partnered with different organizations, but now none of us can wear a Superman cape to get through these economic times we are in. We need to rely on the strengths of other organizations. There is neither the money nor, frankly, the thought potential to create new infrastructure every time we need to figure out another problem. It makes us reach out to other organizations and say “let’s partner on this” and “let’s build on each other’s strengths” as opposed to starting from scratch. I think that is where part of the paradigm shift is occurring. It is creating new kinds of relationships that maybe we should have developed before the recession hit us. Almost every transaction we are looking at right now is being done in joint venture with someone else.

I have seen a couple of recessions before, but never one where everything stopped and halted all at once. We had some feeling of that after September 11 because we all paused to think about what it meant. But that was temporary; it was one event on one day. This recession is different. All of us took a deep breath all at once, and its effect on people, employers, and communities has been quite different. We need to help each other breathe out in order to make change happen.

Cindy is President of Mercy Housing Lakefront which is made up of more than 1,400 homes serving more than 2,000 residents with an average annual income of $10,395. Most of their properties are in the Chicago area. They are committed to changing lives and revitalizing neighborhoods by providing safe, quality, service-enriched housing.

cinDy M. hollerPrEsiDENTmErcy housiNg lakEfroNTchicago, illiNois

I do not see this as a recession where things will go back to the way it was before.”


john r. Dale, faia, leeD aPk-12 EDucaTioN sTuDio lEaDErharlEy Ellis DEvErEauX

Our K-12 market focus has not substantially changed since the onset of the recession, but it has intensified. Whether public or private, the clients we target now are those who have had the ability to capitalize projects independently of state funding or federal programs. Through committed private resources or the successful passage of local bonds, these are the institutions that have positioned themselves to ride the storm and actually take advantage of the downturn to build more with less dollars.

While significant opportunities still exist throughout the K-12 market, each project is more competitively sought after. Where 10 to 12 firms competed for the same job before the recession, it is now common to be shoulder-to-shoulder with as many as 80 firms or more. Prospective clients are therefore compelled to focus on clear cut evaluation criteria when making a final consultant selection: depth of exact experience and project track record, local presence and expertise, and differentiated skills.

Both public school districts and independent schools are more cost conscious than before. They are still looking for opportunities to provide greener facilities that will help teach children values of sustainability but will also help lower operating costs. In today’s context, the prestige of a LEED or CHPS rating is less important than tangible results in greater energy efficient and the ability to stretch scarce resources further. Alternate delivery systems are viewed in the same spirit. Lease back arrangements are increasingly viewed as a way of guaranteeing quality and controlling construction costs to achieve a more predictable outcome. Our clients are looking for design consultants that are flexible team players capable of creatively improvising within less than ideal conditions.

In response, we have been building up the presence of local staff in each of our offices to be education/K-12 champions. Our key team members are effective because they are

passionate about their work, are client focused, are empathetic, and have a readily identifiable expertise. We differentiate ourselves through our rich and varied portfolio. We focus on the real stories we have to tell where we have made continuous strides: participatory education planning; dense, urban infill projects with challenging sites; multi-generational and joint-use facilities; and green school design. And we strengthen our story through our Partner Companies – with complementary portfolios and expertise – that can bring added value to our story.

John’s career focuses around the creating of a wide variety of high performance learning environments for pre-K-12 education. He believes that learning environments are closely linked to sustainable design. His projects have become benchmarks in the evolution of the green school movement. John can be reached at [email protected].


Our clients are looking for design consultants that are flexible team players capable of creatively improvising within less than ideal conditions.”


ThE carlylE, a 28-story, high-end condominium project in Westwood, CA continued construction during 2009 and will be completed in early 2010.

grEENPaTh, a debt counseling, non-profit organization, will begin construction this year on a new 125,000 sf World Headquarters in Farmington Hills, MI.

Design work began in 2009 for a new $54 million Science Building at saN DiEgo commuNiTy collEgE. Construction will begin this year.

LIFE

SIGNS OF

moving forward through difficult

times


Brent T. Miller, AIA, LEED APHigher Education Studio LeaderHarley Ellis Devereaux

a coNfiDENTial miDWEsT uNivErsiTy is proceeding with the design of a new 310,000 sf Engineering Building to be built in phases starting soon.

ralEigh michigaN moTioN PicTurEs sTuDios will break ground in 2010 on a new 600,000 sf Film Studio and Sound Stage complex located in Pontiac, MI.

A 225,000 sf, $42 million renovation and addition for The A. Paul Schaap Chemistry Building Expansion at WayNE sTaTE uNivErsiTy in Detroit began in late 2009.

The project delivery of complex construction jobs is evolving into a more streamlined approach.”

fiElD of DrEamsDesign has begun on a 15-acre Athletic Complex for Los Angeles Mission College.


The silver lining in this recession for me and other healthcare designers is that it reenergizes evidence-based design and sustainable design.”


The “Great Recession” has brought about significant changes in the development of healthcare facilities in general and hospitals in particular. While some of the fundamental aspects of healthcare did not change as a result of the recession, the response from a facility development standpoint has been altered. The healthcare environment is incredibly dynamic and requires all involved to be flexible and creative in solving new and old challenges. Facility infrastructures will continue to age, facility operating costs will continue to rise, and changes in technology and healthcare practices will continue to outpace these same facilities.

While many of these challenges have not changed throughout the recession, several factors have changed. Prior to the recession, one of the primary focuses of healthcare design was in developing enhanced patient family experiences to address the significant expectations of the aging baby boom population. The replacement of nursing units, many originally built just after WWII, into hotel-like environments was the norm. Before the economic downturn, the desire to abandon

older facilities completely was often acceptable in order to provide good long-term operational improvements and meet ROI expectations. These concepts remain but are now influenced by potential healthcare reform and credit markets that require substantial limitations to risk.

The recession has created a more conservative culture in the development of new or renovated facilities for healthcare. While many of the same forces shape a project when in design, the expectations for operational improvements and efficiency gains are paramount in the pro forma. As an example, there are new challenges to the creation of hotel-like patient rooms. Have they gotten too big? Is the true mission of a nursing unit compromised by increased walking distances due to room size? At the heart of this, and many other questions being asked, is how much benefit can be gained through capital investment?

The silver lining in this recession for me and other healthcare designers is that it reenergizes evidence-based design and sustainable design.

Evidence-based design is methodology which places far more rigorous accountability in making decisions about environments through the use of research and best practices. These improvements are shared through the healthcare community to affect positive change for patients and staff. Real opportunities for efficiency gains are measured and documented.

Sustainable design will be a powerful force for the rest of our lifetimes and beyond. Designers must lead our clients in the pursuit of higher levels of sustainability not just because it is good for the planet, but because it is the right response to reducing costs and improving the care of patients that are served by our practitioners and the facilities that support both.

David has been creating healthcare environments for 26 years. He believes that his work has a direct impact on all the lives involved within a healthcare facility which motivates him to understand and exceed his clients’ expectations. David can be reached at [email protected].

DaViD M. jaeger, aia, leeD aP, eDachEalThcarE sTuDio DEsigN lEaDErharlEy Ellis DEvErEauX


The Stadt Group is a residential property management, development, and acquisitions firm and as such, we are somewhat unique because we entered the market just as many people were leaving or waiting to see what happens. We are looking at a significant development in Chicago at a time when most of our counterparts are sitting on the sidelines.

The reason is that we sincerely believe there is a long-term need for this development and, realistically, it will not be online until 2012. We also believe that from a financial standpoint, real estate values may have come down to a more reasonable level. While some see it as a questionable investment, we think it is a tangible instrument to be protected in an inflationary period.

The biggest challenges of the recession was in planning our company. We initiated it before the recession started. We then went through a myriad of emotional stages as times changed. In the beginning it was elation as our company took off, then disappointment as the recession happened. We are still enthusiastic because everyone we

are dealing with did not give up, but rather took a pragmatic approach to the recession. Everyone said it was just going to take a little bit longer. They did not throw their arms up, say the sky is falling, and walk away. Everyone we talked to said it was just going to take time, and that is what we are seeing. We are making adjustments not just for us, but for our clients in order to deal with the economic realities of lower values and slower sales.

A positive outcome of this recession is the need for us to put together strong teams that can help streamline processes. We find we must be more synergistic now and the only way to achieve that is by building a solid foundation with architects and engineers. For example, with an emphasis on

sustainable design, we need to be able to present individuals as knowledgeable and as the industry experts that they are. Our design team members are instrumental in implementing those project goals. With the right team in place, we can achieve great things even in a recessionary period.

Justin joined Stadt Group in 2007. He manages the day-to-day operations of the corporate office and oversees the operations of the company’s various field offices. Prior to joining Stadt, Justin worked for other development firms in the roles of director of design and construction, project manager, and project architect.

justin j. ohrMunDtParTNEr, chiEf oPEraTiNg officErsTaDT grouP, lTD.chicago, illiNois


We are still enthusiastic because everyone we are dealing with did not give up, but rather took a pragmatic approach to the recession.”


chuck lehnertvicE PrEsiDENT of faciliTiEs & coNsTrucTioNThE uNivErsiTy of TolEDoTolEDo, ohio

The University of Toledo has not experienced much impact from the recession relative to its construction activity. The current University strategy may be quite different than what you would find during other times of economic stress.

While funding the University’s operational needs has had its challenges, funding for construction projects has run full speed ahead. With operation budget alignments as much as 7 percent, one may ask why proceed with construction during these economically challenged times. There is no better time for universities to carry-out construction activity. Construction costs are 30-40 percent below where they were five years ago.

The economic down-turn and the impact it has had on the University has been significant. The University of Toledo and The Medical University of Ohio merged just at the time when construction costs were at an all time high. As you can imagine,

going through a merger with two universities and the shift in institutional priorities on a global level have influenced the master plan for the university in a significant way. The University of Toledo’s Facilities and Construction group had to completely revisit the space planning elements and the programming of space from both universities and sort through and realign those priorities. Of course, all these realignments caused the university to rethink its master plan implementation.

Moving forward, it is clear that we need to become more efficient in all of our business units. The University’s mission is to improve the human condition. We believe we have a fundamental responsibility to improve the human condition through environmental stewardship. This mission has yielded additional enrollment on average of nearly 4 percent per semester for the past three years. As you can imagine, increased enrollment and tough economic times on the heels of the merger of two universities and all the stresses that has on culture, budget, personnel, and space have all impacted our master plan. We quickly assessed the planning and reevaluated our priorities and embarked on nearly $250 million in construction.

I believe the recession, as well as the University’s commitment to the environment, has changed how we look at design services. All projects must meet LEED Silver Certification as a minimum. We have a plethora of Silver Certified projects on the boards, three Platinum projects in design, and have obtained Gold Certification on an 80-year-old building. The recession drove us to the decision to build because we are able to get more for our construction dollars which means we can buy LEED buildings as cheap as or cheaper than non-certified buildings would have been in the past. And as a result of achieving LEED certification, these buildings have lower operating costs and can sustain themselves. It becomes a win-win situation; it is good for the University and for the environment.

Chuck joined the former Medical College of Ohio in 1979. He has held many positions within the facilities management group culminating in his position as Vice President of Facilities & Construction. Chuck has been instrumental in the development and deployment of a five-year projected plan for capital expenditures needed to keep the University’s campus facilities at a world-class level.

The current University strategy may be quite different than what you would find during other times of economic stress.”


robert f. kieslingEXEcuTivE DirEcTor of faciliTiEs maNagEmENTgrossmoNT uNioN high school DisTricTEl cajoN, califorNia

Grossmont Union High School District has both positive and negative experiences from the recession. One good thing is that we have enough construction money to complete the first phase of our program based on our bond sales. Because we are one of the very few organizations in town with money, we are getting very good bids from contractors for our projects. That’s the positive side.

On the negative side, we are not getting any state matching money and we have less money for staff and for our programs. We are trying very hard to keep all of our employees because we know they will have difficulty finding another job. We are looking at alternative cost-saving strategies that can save jobs. Also, we are not planning to cut any programs. Other school districts are cutting art and theater programs. On the contrary, we intend to continue those important programs and will be building a new facility for them under the bond measure.

The recession has given us some challenges on the construction side. Construction prices are good and we are getting more bang for our buck. Because our projects are paid out of the bond, there really is not a major problem with funding

for the early phases of our program. On the other hand, we are having problems with bidding wars because low bidders tend to want to cut quality. We are spending more time making sure we get a quality project than we would have spent in the past. We are looking at alternative delivery methods to ease this situation.

We have learned a few lessons going through this recession. The most significant action was to set up our budgets with risk mitigation funding. As our projects came in below our estimates, we took the difference and set it aside for risk mitigation. Our thought process being that when the economy turns around and inflation starts again, we will need enough funds for what I call a “normal” project. We will have an inflation factor built it and have additional money in case the inflation factor is wrong. If inflation takes a steep curve, we will have additional money to put in the fund and end up with the same level of facilities. If the escalation does not hit that much, then we will have that risk management money to put into additional facilities. It’s all encouraging.

Despite the recession, I am more optimistic than ever because we are able to take advantage of situations in both our work and personal lives

that allow us to do a better job than we would otherwise. We are now focused on finding different ways to deliver the same product. How do you educate kids? Can you do it with better technology? How do you get kids back into school? We just implemented a fifth-year senior program that allows non-graduating students back in school and earn their diploma. The program is very successful with 150 kids going back to school. It’s exciting and energizing to rethink how we do things in the district at all levels.

Bob joined the Grossmont Union High School District in 2006 and is responsible for the nearly $1.0 billion Proposition H and U bond measures. He has more than 30 years of experience leading large-scale design, construction, and engineering projects around the world, many of them as a member of the Navy civil engineering corps.


Despite the recession, I am more optimistic than ever because we are able to take advantage of situations in both our work and personal lives that allow us to do a better job than we would otherwise.”


This morning, like most mornings, I drove to work listening to the news on NPR to try to get a sense of what is going on in the world, just in case I missed something while I was sleeping. Questions always pop into my head: what is the world starting to look like during this great recession for me, my family, and the world of design? The idea of explaining the word recession, or what we have gone through over the last couple of years, is difficult. I am not sure I can call it a recession or not. And I am not sure a lot of people understand what is happening. I believe we are still trying to understand its continual implications, attempting to determine what it all means and to what degree it affects our daily lives and, more importantly, our future.

You would be surprised at how many definitions there are for the term “recession.” There are personal recessions, company recessions, economic recessions locally and globally, etc. Ultimately, it comes down to this: how does it affect you and the world you live in? One of the most important things to me is my family and how they are influenced by this recession. For my family and the world around us, I need to figure out what the long-term affect is and where it will lead us in the future. Well, needless to say, the only thing I have discovered so far is that this recession is different and how we react to it needs to be far more innovative and creative than ever before.

But I do know this, at the end of the day, it is about change. Change is sometimes good and sometimes bad. But this time, the change needs to be bold and must be met head-on with conviction for a better world. It is your state-of-mind and your character that will prevail. The numbers may point to a recession, at least that’s what they said on the radio this morning. But in my heart, I know it is up to each of us to embrace this time of change and move forward with one goal in mind: make this world a better place. All of us should be hell-bent on doing just that.

The term “recession” may mean a setback to most of us, but it does not necessarily imply that it is the end. Rather, it is a time for all of us to take stock of what we have, appreciate the value of what we have, and focus on how to make our lives better. That is how I view the great recession ... it is just a reflection to remind me of the importance of the world around me, my family, and you.

Ralph has almost 30 years of experience in designing places that matter. He is very accomplished in creating environments that foster connection. Ralph’s blended expertise as a designer, facilitator, strategic thinker, and always focused on client’s business drivers are keys to the success of his projects. Ralph can be reached at [email protected].

ralPh j. Mocerino, aiacorPoraTE + commErcial sTuDio lEaDErharlEy Ellis DEvErEauX

`

...This time, the change needs to be bold and must be met head-on with conviction for a better world. It is your state-of-mind and your character that will prevail.”


Like all institutions, Northwestern University faces significant challenges as a result of the recession. The University’s endowment lost significant value which has impacted the University budget and caused a re-evaluation of our capital program. That resulted in the University making the decision to reduce the planned capital expenditures by delaying several large construction projects totaling about $90 million. The deferred projects were in the planning and early design stages at the time of their postponement. Since then, we have applied for a number of federal stimulus grants to assist in funding construction projects. If we are fortunate enough to receive federal grant funding, the projects will move forward. For projects which were released, it was no surprise that competitive bidding came in below our estimates.

In reaction to the current economic conditions, the University reduced operating expenses (other than salaries) by 5 percent. The financial situation has added heightened pressure to deliver projects on budget and improve cash flow projections. Several measures were taken to meet our goal.

First, we are managing increasingly complex projects with a lean internal staff due to a hiring freeze. Even though we embraced sustainable building design policies a number of years ago, the pressure to reduce the operating budget has placed an increased emphasis on energy conservation and related reduction in utility costs. It was a pleasant surprise to see the recent reduction in energy costs, in particular natural gas, and its affect to the bottom line.

The University learned a valuable lesson as a result of the recession: Remain Flexible. In higher education, it is important to develop project designs which can be either constructed in phases, or built with shelled spaces for the future when funding becomes available.

We have also seen changes in the design and construction industry, especially with the recent graduate pool which has been hit the hardest. Graduating students in architecture are having difficulty finding jobs in this economy and may never enter the architectural workforce. The architecture community will be affected by this as fewer designers enter this field.

Beginning a year ago, I noticed a significant increase in marketing efforts by architecture/engineering (A/E) firms, contractors, and vendors. Many A/E firms have expressed their sudden interest in entering the higher education and institutional markets. Unfortunately, it is difficult for firms without higher education experience to compete against firms with significant experience in these areas during a recession.

We have seen a number of casualties in the subcontracting community on recent projects. Fortunately, our projects were not negatively impacted. I believe there will most likely be some consolidation along with the contraction in the construction community.

In my 25-year plus career, I have experienced several economic downturns. Through those ups and downs, I have learned that recovery will come but it may take some time. I have also learned to be cautious, even in boom times.

Bonnie is Director of Design & Construction at Northwestern University. She has been with the University for 11 years and is responsible for construction projects at both the Chicago and Evanston campuses.

bonnie huMPhrey, raDirEcTor of DEsigN & coNsTrucTioNfaciliTiEs maNagEmENTNorThWEsTErN uNivErsiTychicago, illiNois

The University has learned a valuable lesson as a result of the recession: Remain Flexible.”


TraDE TEch collEgE in Los Angeles is moving forward with design and construction of a 100,000 sf, $47 million Learning Resource Center.

The WayNE couNTy airPorT auThoriTy at Detroit Metropolitan Airport will begin construction in 2010 on a new 130,000 sf Administration Building.

NorThWEsTErN mEmorial hosPiTal in Chicago has maintained an extensive renovation program through 2009 and into 2010.

LIFE

SIGNS OF

moving forward through difficult

times


lET ThE gamEs bEgiNWMS Gaming expects to break ground this year on a new 150,000 sf World-wide Corporate Headquarters and Training Center in Waukegan, IL.

los aNgElEs commuNiTy collEgE DisTricT is moving forward with a new $35 million Student Union at their Los Angles City College Campus.

The grossmoNT uNioN high school DisTricT near San Diego continues to move forward with design and construction programs at five campuses.

The new saN DiEgo mEDical EXamiNEr/forENsics cENTEr, an 83,000 sf facility, continued construction through 2009 and opened in early 2010.

Ralph J. Mocerino, AIACorporate + Commercial Studio LeaderHarley Ellis Devereaux

What amazes me the most is our clients’ consistent journey to envision their future even through today’s economic challenges.”


susan f. king, aia, leeD aPlifE ENhaNcEmENT sTuDio DEsigN lEaDErharlEy Ellis DEvErEauX

I practice in a very lean world already. The money is always tight in special-needs housing. I would not know what to do with an extravagant budget if I had one. In a way, I thrive in today’s situation.

I also see it as time to dream a little, since much of our work right now is planning and studies. While it is frustrating not to be building more, especially when the affordable housing need is so great, I am also learning patience.

Recently, I was fortunate to attend and speak at GreenBuild in Phoenix. While there I took the opportunity to visit Taliesin West, the winter home of Frank Lloyd Wright’s Fellowship. I am always amazed that no matter how many of his buildings I am able to visit, I always come away with a new appreciation for his work. I was, not surprisingly, struck by the way he spent his time during the Great Depression. His list of answers to the problem of not having any work was prolific. It was during this time that he started taking students and founded the Fellowship in 1932. In that same year, he developed his concept for Broad

Acre City. His Usonian House concept came from this period as well. Falling Water would be one of his few built commissions during this time. Wright’s example gives me reassurance that in this time of crisis it is okay, perhaps essential, to dream.

Our special-needs housing focus has broadened over the past year to include work with market-rate developers. This is, in part, a result of our Life Enhancement Studio’s ability to work with tight budgets and produce superior space. In the past year, we have had opportunities to expand our expertise to include studies for student housing as well as market-rate apartment buildings, in addition to our work with seniors and other special needs populations.

The increased competition for work within this market has been interesting to watch. As the bottom has fallen out for market-rate condominiums, the firms who typically work in this arena now believe they can compete in the not-for-profit world. However, the reality is that it is easier for

us to jump into their world then the other way around. The knowledge and understanding of navigating the funding bureaucracy is something that only comes from experience. I believe most not-for-profit developers recognize this, and even though we find ourselves competing against some unusual firms, the value of our expertise with this type of housing carries the day.

The “Great Recession” has reinforced my viewpoint about design. I believe environmental friendliness should drive our solutions and be an integral part of every design concept. When it comes to the definition of “affordability,” high performance and environmental friendliness are critical aspects.

Recently identified as a sustainable magician by i4design magazine and included as one of their “people to watch” in 2008, Susan’s sustainable design expertise is rooted in her work for socially responsible housing. She believes that sustainability, affordability, and good design are inseparable. Susan can be reached at [email protected].


[Frank Lloyd] Wright’s example gives me reassurance that in this time of crisis it is okay, perhaps essential, to dream.”


Though this recession is unusually deep, it’s something this industry knows how to withstand.”


larry h. eisenbergEXEcuTivE DirEcTor, faciliTiEs PlaNNiNg aND DEvEloPmENTlos aNgElEs commuNiTy collEgE DisTricTlos aNgElEs, califorNia

When it comes to the construction and design industry, we are one of the only games in town in the midst of this recession. We have $6 billion, most of it bond money, and we are obligated to spend it.

Before the economic downturn, we were lucky to get a handful of bids for each component of our building program. Now, on the average, we are getting 20-30 companies pursuing a single project. That is unprecedented.

We now have the luxury of choosing between a number of very low bids, many 20 percent to 30 percent below our initial estimate. Some of these bids are completely off the chart at 50 percent lower than normal.

For example, at Los Angeles Valley College, we have a library project we thought would cost around $32 million. We received a low bid of $17 million. And that was not an isolated case.

I look at some of these bids and think the contractor made a mistake. When I ask how they can afford a 50 percent reduction, contractors tell me they are taking all the profit out of the job because they want to keep their workers employed. In these economic times, they want to make sure their businesses stay active.

There’s another significant change in the construction industry. In the past, we have been a niche market. Now, a lot of companies that just want to get through this recession, companies from the housing, commercial and retail sectors, are interested in doing work in the public sector.

Our strategy is to get as many of our projects going now as possible while the market is hungry. We might as well speed up our time frame to take advantage of the situation. We need to go for it.

Originally, we thought we would finish our last project in 2014, but now, I think we will be done perhaps a year earlier. There is no question we have shaved off a considerable amount of time.

So while the recession has been devastating for so many, it has had benefits for us.

And, in turn, we and others in the public sector have helped the local economy. While the commercial and housing industries have been lagging, the public sector has become a dynamic force that has kept the construction industry energized.

I think construction is more adaptable than many industries because it is used to boom-and-bust cycles. Though this recession is unusually deep, it’s something this industry knows how to withstand.

We are even starting to see construction costs edge back up a bit recently, but I think we will soon reach a plateau, a plateau that will remain on the construction landscape for at least the next few years.

Larry is the Executive Director of Facilities Planning and Development for the Los Angeles Community College District, the largest community college district in the nation. He supervised the district’s award-winning and nationally recognized sustainable building and renewable energy programs and oversees planning, facilities development, maintenance, and real estate activities. He serves on several national organizations, including the American College and University Presidents Climate Commitment.


Owners have developed an aversion to standard design-bid-build project delivery for a variety of reasons including communication and accountability concerns. Owners are now asking for more cooperative partnership between the architect, owner, and builder. For architects this means forming relationships with builders through a variety of contractual tools, such as design-build. The project delivery of complex construction jobs is evolving into a more streamlined approach. The traditional three-step process of design-bid-build is reduced to the two-step process of design-build.

Many tools being developed for the industry are focused on efficient delivery and issue resolution. Building Information Modeling (BIM) is a method being applied with increasing frequency to our projects. Within a single model, the multiple disciplines are integrated into three-dimensional relationships with real time attributes; information is not saved in multiple locations, but in one.

BIM also allows for the direct transfer of the design to the manufacturing of the building components. There is no interpretation of the contract documents into shop drawings; rather the BIM file becomes the shop drawing. For example, mechanical ducts or steel components can be fabricated directly from the BIM file.

With the implementation of both design-build and BIM, the hope is to deliver projects successfully with team relationships, expertise, and efficiency. Looking forward, it is easy to see that future success for architects will be determined by our ability to adapt to these project delivery options.

Having been responsible for over 150 projects during the last 14 years, Brent is a leader in the development of higher education facilities in Southern California. He believes campus design must be contextual with the campus environment while providing optimal learning opportunities for students. Brent can be reached at [email protected].

brent t. Miller, aia, leeD aPhighEr EDucaTioN sTuDio lEaDErharlEy Ellis DEvErEauX

The new reality and the future of the higher education market, and I believe the industry, is focused on project delivery.”


We thought our audience would be interested in reading what leaders in a va-riety of industries had to say about the recession. When we reached out to our clients, we weren’t sure they would be willing to participate. But they were very willing to share their thoughts, ideas, and insights, and we thank them for their time and effort.

The answers to our interview questions were as varied as the personalities we interviewed. Some were pragmatic, while others were philosophical. Some were enthusiastic about the future, and others remained cautiously optimistic. But each person interviewed had one thing in common: an innate positive attitude.

No matter which industry they represented, each person maintained an “ev-erything will be okay” outlook. Some things may be permanently different now, but life goes on. Businesses and institutions need to keep running and moving forward with an eye on the future. Our clients told us that it’s not the time to sit back and wait for good things to happen. Rather, it’s time to assess the cards we’ve been dealt, play our best hand, and go “all in” with enthusiasm and passion no matter what the circumstances.

This issue would not have been possible with-out the stunning photography of Tom Drew. Though his schedule was hectic, he made our clients and colleagues comfortable and at ease during their photo sessions. Thanks, Tom.

We hope you found a bit of inspiration in this issue. We welcome your stories, comments, and ideas. Send us an email, [email protected].

The Recession. The Great Recession. Economic Crisis. Economic Downturn. Tough Eco-nomic Times. Difficult Times. Unprecedented Times.

Wow. That’s a lot to digest, let alone trying to understand what will happen in the short-term and in the future. What do our clients think of all this? How are they coping? What do our colleagues think? What’s our future? Let’s ask them.

That’s how the conversation started for this issue of NEXT. We knew we couldn’t do anything to help Wall Street. But we could talk to people about the recession. Talking always makes things better.

Reading the news about the recession is one thing. Putting the human element to it gives it a whole new dimension. We would all be hard-pressed to find someone who has not been affected. The recession has touched our families, friends, and colleagues; it is very real for us. We didn’t know what to expect when we set out to produce this issue, but we made the decision to break from our normal format and find out. After all, these are unprecedented times.

In order to translate our vision into a magazine, we found inspiration in a book we both admire: Wisdom by Andrew Zuckerman (wisdombook.com). It wasn’t just the beauty of the book that resonated with us, though as designers we are drawn to beautiful objects. It was also Zuckerman’s concept for Wisdom that made it click: to capture creative people in a moment in time and offer their experiences to inspire others.

We can do that within the spirit of NEXT.

juDy liTTlE & scoTT WiThErs, aigaharlEy Ellis DEvErEauX commuNicaTioNsNEXT ® crEaTivE TEam

WaTch ThE viDEosWatch video of the actual interviews and hear more of what our clients and our

people had to say. Go to harleyellisdevereaux.com, click on “Publications” and then on “Special Issue, Spring 2010.”


Wayne State University

Project: The A. Paul Schaap Chemistry Building Expansion

Architect/Engineer: Harley Ellis Devereaux

Structural Engineer: Desai/Nasr Consulting Engineers

WMS Gaming

Project: Worldwide Corporate Headquarters and Training Center


Northwestern Memorial Hospital

Project: Various

Architect: Harley Ellis Devereaux

MEP Engineer: Environmental Systems Design, Inc.

Structural Engineer: Thornton Tomasetti, Inc.

Wayne County Airport Authority

Project: Administration Building Renovation


Engineer: BEI Associates, Inc.

Public Safety Consultant: Redstone Architects, Inc.

IT/Telecommunications Consultant: Faith Group, LLC

Acoustical Consultant: Kolano and Saha

Trade Tech College

Project: Learning Resource Center

Campus Program Manager: Anil Verma


Structural Engineer: Saiful Boquet, Inc.

Landscape Architect: Steven A. Ormeny & Associates

Civil Engineer: Armstrong & Brooks Consulting Engineers

Los Angeles Community College District

Project: Student Union

Campus Program Manager: Harris and Associates


Contractor: S. J. Amoroso Construction

Structural Engineer: Miyamoto International

Landscape Architect: Katherine Spitz Associates, Inc.

Civil Engineer: Wheeler and Gray

Mechanical Engineer: University Marelich Mechanical

Electrical Engineer: Sasco

County of San Diego

Project: San Diego Medical Examiner/Forensics Center

Project Manager: Project Management Advisors Architect:


Contractor: ProWest Constructors

Laboratory Consultant: Crime Lab Design

Civil Engineer: RFB Consulting

Structural Engineer: Degenkolb Engineers

MEP Engineer: Crime Lab Design

Security Consultant: Durrant

Landscape Architect: KTU+A

Geotechnical Engineer: Kleinfelder

Grossmont Union High School District

Project: Various


MEP Engineer: Harley Ellis Devereaux

Construction Managers: C.W. Driver, Erickson-Hall

Construction Co., Turner Construction Company

Structural Engineers: Stedman & Dyson Structural Engineers,

Wiseman + Rohy Structural Engineers

Civil Engineers: RBF Consulting, Snipes-Dye Associates

Landscape Architect: Architectural Landscapes

Theater Consultant: The Shalleck Collaborative, Inc.

Acoustical Consultant: Jaffe Holden

Cost Estimating: O’Connor Construction Management, Inc.

Photography Credits:

cover: Getty Images

portraits and back cover: Tom Drew, Black, White + Color

Photography

Northwestern Memorial Hospital: Anthony May

San Diego Medical Examiner/Forensics Center:

Hewitt Garrison Architectural Photography

“Signs of Life” Project Team Credits:

Los Angeles Mission College

Project: New Athletic Complex

Campus Program Manager: Gateway Science & Engineering

Architect of Record: Harley Ellis Devereaux

Contractor: Sinanian Development, Inc.

Structural Engineer: Englekirk & Sabol Consulting Engineers, Inc.

Landscape Architect: Melendrez

Athletic Fields: Carter Romanek, Inc.

Civil Engineer: Wheeler and Gray

Mechanical Engineer: ACCO Engineered Systems

Electrical Engineer: TMAD Taylor Gaines

Graphics: IDA

GreenPath

Project: New Corporate Headquarters

Architect/Engineer: Harley Ellis Devereaux Construction

Manager: Barton Malow

San Diego Community College

Project: New Science Building


Construction Manager: Rudolph and Sletten

Structural Engineer: Stedman & Dyson Structural Engineers

Landscape Architect: Spurlock Poirier

Civil Engineer: Bureau Veritas N.A., Inc.

El Ad Wilshire, LLC

Project: The Carlyle Condominium

Executive Architect: Harley Ellis Devereaux

Design Architect: Kaplan McLaughlin Diaz

Construction Manager: Aurora Development

General Contractor: Swinerton Builders

Structural Engineer: Englekirk Partners

Civil Engineer: Psomas

Lawrence Technological University

Project: New Engineering Building


Raleigh Michigan Motion Pictures Studios

Project: Film Studio and Sound Stage Complex

Architect/Engineer: Harley Ellis Devereaux Construction

Manager: Walbridge

Advancing Your World...by Design

harleyellisdevereaux.com

NEXT - Special Issue, Spring 2010

Documents

Transcript of NEXT - Special Issue, Spring 2010