With all the recent announcements of big projects in the pipeline, it’s hard not to be bullish on construction in Western PA; however, the current market is less than target-rich. Bidding has slowed significantly, even for Memorial Day, and it appears that the early summer period will be slower than last year until some of the projects that are in preconstruction are put out by the CM.

Among the projects awarded recently are the $9.8 million CCAC West Hall, awarded to Allegheny Construction Group; a $1.7 million renovation and expansion of Riverview Children’s Center in Verona, which will be built by A. Martini & Co. and the St. Sebastian’s Narthex expansion in Ross that Rycon Construction is building. PJ Dick has started work on the $100 million+ research and office for Johnson Controls in York PA.

Two interesting real estate deals announced this week should bring construction opportunities as early as the end of summer. Uber Technologies signed a lease in the 53,000 sq. ft. former Restaurant Depot space in Lawrenceville. Strada Architecture is designing the fit-out. Uber is in the process of selecting a CM. A list of contractors could not be confirmed but the company is rumored to be talking to Continental Building Systems, PJ Dick and Franjo. Faros Properties unveiled its plans for the former Allegheny Center Mall yesterday, branding the 1.2 million sq. ft. space as Nova Place. Estimates of the investment needed were in the $200 million range.

With some of the more desirable projects in the region in the final stages before starting – Ensinger Plastics, GE, Union Trust Building – there were a handful of nonresidential projects started in April that underscore the strength of the regional economy at the moment.

In the ultra-tight industrial/flex space market, Al Neyer got underway with a new 47,245 sq. ft. building at Elmhurst’s Airside Business Park in Moon Twp. and the new 86,000 sq. ft. warehouse and office for Paragon Foods at the RIDC Thorn Hill Industrial Park in Marshall Twp. Buncher started work on the 77,000 sq. ft. Building 2000 at its Jackson’s Pointe Commerce Park north of Zelienople. Modal Construction is building industrial flex Building 3 and 5 for the Ridilla Family Trust in Hempfield, totaling 52,000 sq. ft.

Suburban neighborhood retail continues to flourish in the face of an industry-wide shift in balance between bricks-and-mortar and online sales. Montana’s Ribs and Chops is being built out by Gilcon Construction at Southpointe Town Center. Another Five Guys Burgers is going into the Old Mill in Washington PA. Metro Properties has started the next building at its Park Place development at Race Track Road and Route 19.

School work is gearing up for summer. Yarborough was awarded the general contract for a $1 million vestibule security project at several Hampton Township schools. Work in underway at Moon, West Allegheny and North Allegheny School District projects. In the private sector, Groom Construction from Boston has started on a new 10,000 sq. ft. Kiddie Academy in Bridgeville.

Yesterday was the public hearing on the DEP air pollution control permit for the Shell ethane cracker in Monaca. During my research on the cracker for the May/June BreakingGround, I spoke to a couple of people who noted the timetable for the DEP process and predicted that the permit was a fait accompli. Both said the hearing might have some bluster from opponents but that the DEP would grant the permit, and probably soon.

Those first predictions came true. There was, in fact, little opposition to the permit and surprising support (which is unusual in such hearings). The lack of public comment against the project was newsworthy, as the papers found little to write about it (although the Business Times was able to put a negative spin on it). Comments will be accepted by DEP until next Friday, May 15, after which the decision will occur.

In other development news, the announcement of JLL as the developer/representative coincided with the release of an RFQ for the first office building (sort of CIC2) and a hotel along Forbes Avenue. The request drew responses from 13 developers, including out-of-town entities like Clayco and Davis Companies that are already working in Pittsburgh. Among the seven local firms that responded were Elmhurst, Oxford, Mosites and Walnut Capital – all companies with projects ongoing in the Oakland/Shadyside market. The expectation is that construction will begin before the year ends.

In project news, Al Neyer Inc. started work on the new 86,000 sq. ft. refrigerated warehouse and office for Paragon Foods in Thorn Hill Industrial Park. Shannon Construction was successful in the Cabot Oil & Gas fit-out of 56,000 sq. ft. at 2000 Park Lane. PJ Dick is about to start work on the $14 million Penn Highland Building, a 78-unit new apartment project for Walnut Capital in East Liberty.

Grading has started on preparing for the construction of General Electric’s new 125,000 sq. ft. advanced manufacturing and research facility at Chapman Westport in Findlay Twp. Evans General Contracting from the Atlanta area is the contractor for the $30 million project, to be know as the Center for Additive Technology Advancement.

GE’s building is here in part because of the research into advanced materials that is happening at Carnegie Mellon. It’s not hard to envision a GE building located in the new north campus at CMU if University President Subra Suresh’s vision for the next phase of expansion comes to life. Last week master developer JLL announced that CMU had engaged it to help bring 450,000 sq. ft. of office, plus hotels and retail to fruition along Forbes Ave. at the Hollow. A day later Dr. Suresh spoke of his vision of several major office buildings as part of the Tepper Quadrangle, which will be anchored by the $110 million Tepper School of Business. Given the success Google has had with its partnership and hiring at CMU, it isn’t hard to imagine similar corporate locations for companies like GE, Amazon or the next tech giant looking at being at the heart of such an innovation corridor. Work on Tepper should begin around the end of 2015.

Through an owner’s rep, a request for developers went out again for a new convention center hotel. Past iterations called for as many as 1,000 rooms and would have run $100 million or more to develop. That cost is likely 25-50% off by this time but the added rooms are aimed at pushing Pittsburgh above the threshold for attracting the largest conventions to town.

It’s that time of spring when there are a lot of little things out to bid but not much new on the big and exciting front.

Google is taking proposals Monday for the construction manager portion of its 66,000 sq. ft. tenant buildout at Bakery Square 2.0. Oxford Development takes design/build proposals on May 15 for their 3 Crossings parking garage, a 575-car garage that should run $10-$12 million. PJ Dick, Massaro, Al Neyer, Rycon and Carl Walker were the contractors short-listed for the garage.

Eat ‘n Park is taking bids from BRIDGES, CBF, TEDCO and MBM for construction of two new restaurants in Bethel Park and Peters Township. (Apparently having all upper case letters was a qualification). Riverview Children’s Center is taking proposals from Jendoco, A. Martini and Massaro for a $1.7 million renovation to its Verona facility.

Within Gov. Wolf’s 2015-2016 fiscal year budget legislation is a provision that places another moratorium on PlanCon beginning July 1. The assumption is that a moratorium would only be for one year but that was the assumption in 2012 too (and it was a wrong assumption). The language of the bill specifies that projects in the process prior to July 1 will continue to progress. Gov. Wolf’s proposed budget does include funding at the same level as the current budget, or just under $300 million.

Rep Seth Grove from York had earlier proposed a reform of PlanCon that would streamline the process and add another $30 million or so to increase deferred capital spending.

Dept. of Education Secretary Rivera did not directly address the question of a moratorium but said that “Governor Wolf is committed to ensuring his education investment reaches the classroom first,” saying that, “once the funding gap has been restored local officials will ultimately be able to make decisions on where they want to invest, including construction projects.”

With a Republican-controlled legislature in opposition to many of Gov. Wolf’s proposals, his 2015-2016 budget is not expected to pass without extensive negotiation. According to PA School Board Association staff, the proposed PlanCon moratorium is opposed on both sides of the aisle. It’s likely that the budget is meant to get both parties to compromise on their sacred cows and a moratorium will be quashed in negotiations. Until that comes to pass, however, the construction industry will be anxiously watching to see if this vital sector is set back again.

According to the Pittsburgh Builders Exchange, Allegheny Construction Group was the low bidder on the $9.7 million CCAC West Hall and the $2.77 million Pittsburgh International Airport South Matrix baggage handling improvements. Podojil Builders was awarded the new $1.5 million Primanti Brothers restaurant to be located off Racetrack Road at the Streets at the Meadows mixed-use development being done by Horizon Properties.

Rycon, Max Construction, Restaurant Specialties and Fred Olivieri are bidding a new Applebee’s on Route 22 in Murrysville on April 6 and for Waynesburg on April 9.