As of May 1, 2019, contractors who apply for or seek to renew their New Jersey public works contractor registration face a new and potentially game-changing requirement: mandatory participation in an apprenticeship program approved by the United States Department of Labor. Without it, a contractor will not be registered and will not be eligible to work on the vast majority of work subject to the New Jersey Prevailing Wage Act. This means, without a valid registration – you CAN NOT bid public work.

This plain English, high-impact seminar will help your business prepare to continue doing public construction projects. Littler Shareholder Russ McEwan, who counsels extensively on state and federal prevailing wage compliance, will moderate our event and lead the discussions concerning this new law and its anticipated regulations. Kevin Triplett, of the NJ Department of Labor, will attend and take part in a 30-minute Q&A after the seminar.
The event will be held at Harrah’s Resort and Casino in Atlantic City NJ on Friday, November 22, 10:00 – 11:00 am, with registration beginning at 9:30. Attendees can expect to walk away from our program with a definitive understanding of what they must do to protect this aspect of their business.

Contact Lynn Bradley 609-439-2211 or email lbradley@abcnjc.org for more information

The Sixth Borough will soon be home to a production complex for Lionsgate, the movie mega-giant behind popular series like the SAW franchise, the Hunger Games, and many more. The space chosen sits along the Hudson River, close to the Yonkers train station. Working with Great Point Capital Management, a known media investment firm, Lionsgate is slated to become another major anchor tenant for the foreseeable future in Yonkers. While the firm has ties to other known studios like Hallmark Entertainment, Lionsgate will maintain naming rights as a minority investor. Projected to break ground in November, its planned completion time is late 2020. 

Why New York? 

According to the New York Times, over 300 movies were filmed in New York in the last year, triple the number filmed in 1980. Coming on the heels of other major studio moves (such as Steiner Studios, Robert DeNiro’s Wildflower Studios, and Netflix soon to follow), Lionsgate and other companies have a chance to save money with cheaper shooting locations and tax credits that they can’t find out in LA. In part, this has been spurred by the growing popularity of streaming services and high demand for content. 

Lionsgate is only one of several companies to move into the area, creating new and unique construction projects as they set up their bases of operations, and more are coming. 

Lionsgate Studios (Yonkers): The Plan So Far

Less than half an hour from Midtown, this will be one of the nearest studio locations to the heart of Manhattan. In the next year, the $100 million project calls for a number of unique spaces within the full complex. This will include: 

• Three 20,000 square foot stages and two 10,000 square foot stages. 
• A full studio backlot for expansive outdoor shots and locations.

As yet there are plans to leave space for further developments, and with an industry that has made millions and created tens of thousands of jobs in the last couple years, the sky is really the limit for what Lionsgate can do with the space. 

What Will It Take to Complete This Project?

For an undertaking of this size, a single-year deadline might seem tight, and much needs to be completed for the developers and tradespersons involved in this Great Point project. 

• The five stages, for all their square footage, may represent the smallest part of the labor involved. If they’re designated as sound stages, then these open warehouse-like

The north end of Central Park, just past the 11-acre Harlem Meer is due for a little updating. Totaling a $150 million budget that will replace the vastly outdated Lasker Rink and Pool, this will be the largest restoration project the park has had to date, according to the Central Park Conservancy. Situated between Harlem Meer and the Loch, the Lasker Rink and Pool opened in 1966 and has remained a fixture of the area for over 50 years. In the long winters, the rink offers two ovals for skating, one for hockey and the other for all-ages skating, but during the summer, the outdoor venue becomes an admission-free swimming pool.

What Are Some of the Major Changes Coming?

Lasker Rink and Pool will be seeing several much-needed updates that developers hope to marry it with the surrounding areas and create more spaces for year-round use. As it currently stands, it serves as a concrete wall between the Meer and the ravine. Other changes are to include: 

• A free-flowing, natural landscape and a re-established watercourse. Waterflow into the culvert under the Lasker rink, as it currently stands, presents problems with overflow and congestion during inclement weather. The parking lot behind the rink subsequently floods often and this change will bring a welcome end to this. 
• Pedestrian paths will be restored around the area of Huddlestone Arch.
• Boardwalks will be built around the watercourse to small islands and over a freshwater marsh, allowing visitors to enjoy every inch of it. 
• Lasker Rink will be demolished and rebuilt, with the new pool and ice rink, including a recreational building with a green roof that blends into the surrounding area. The green roof will have the added benefit of helping to create more oxygen, absorbing excess rainwater, and insulating the establishment below. 
• Materials from the old Lasker establishment will be recycled wherever possible, and the stairs and walkways will finally be brought up to ADA-compliant standards. 
• The intent is to complete all of this with locally sourced and environmentally friendly materials. 

What Will It Take to Complete the Project?

The restoration project is set to begin in the Spring of 2021, after the Trump Organization’s 32-year contract for the run of the skating rink comes to an end. At present, the full completion of the north end will take a total of three years, expected to finish fully in 2024. With a project slated for a LEED Gold standard certification, there are a number of points to consider going forward for any developers and contractors that jump on board: 

• For one, a LEED Gold certification means lower use of energy, water, and other resources, as well as higher resale value, greater health for tenants and environment, and more. 
• The use of locally sourced materials helps local businesses and makes the community part of the project. 
• Recycled materials from the older structures reduces waste and maintains part of the local history of the area. 
• In this three-year undertaking, the landscape around the current rink and pool will have to change drastically, including reworking natural streams, introducing new vegetation, and more.
• For the new structures and walkways, the aim will also be to use all of this to create walkways and places for people to frequent that make the area and the park as a whole more widely accessible.

With a little less than a year until ground breaks, bids are still coming in, and there may be more to come in terms of what the final plans will be.

Under the shadow of potential reductions in local infrastructure spending in the near future, two trade groups the Long Island Contractors’ Association (LICA) and the American Road & Transportation Builders Association (ARTBA) came together in August of 2019. Together, they compiled a meta-analysis that can hopefully provide Long Island with a clearer roadmap to spending cuts that do not reduce the value of local roads or the labor that builds and maintains them.

The document in question explores the types of government contracts often used for maintaining roads, sewers, parks, bridges and more and explores their value in comparison to each other. It also looks at how the cost of materials, like asphalt, can positively or negatively impact the value of a given contract. Among several conclusions drawn in their findings, the study suggests that local governments that pay for a single project at a time, rather than bundling repairs or using open-ended contracts, tend to spend less time and money on both, with better results. 

What Are the Specifics of the Study?

The finished analysis looks at a total of 62 contracts awarded in five Long Island areas, specifically in Nassau County as well as the communities of Hempstead, Islip, Oyster Bay, and Smithtown. It uses the numbers on these contracts to explore how the type of contract had an impact on how much value returned. 

The three types of contracts that infrastructure work tends to fall into are:

• Single, specific projects – These are “based on the delivery of a set of improvements for a road or bridge.” 
• Bundled projects – Usually a group of repairs to bridges or roads or other parts of the infrastructure. 
• Open-ended contracts – These have no set end and will take as long as it needs to in order to get done. While there are set bids and budgets, the open-ended nature means it cannot account for the changing cost of materials at this time. 

A Breakdown of the Study’s Conclusions

In exploring the contracts included in the analysis, the researchers found the following: 

• Single projects spanned 35 of the 62 tested. With an average of 5.6 bidders, these lasted around 189 days, and valued in total at $78.6 million. That’s an average of around $2.2 million per project.
• Bundled projects were 15 of the 62 tested and had 5 companies bidding. There was an average completion time of 220+ days, and these were awarded a total of $55 million. That’s an average of $3.6 million per contract.
• Open-ended contracts represented by the remaining twelve projects examined. These lasted an average of 500+ days and averaged three bids per contract. The winning bids were around $29 million altogether, but the actual spending was over $63 million total. The study notes this is nearly as much as was spent on the 35 specific projects. That’s an average of $5.25 million per contract. 

These numbers support their conclusion about what appears to benefit local communities in a faster and more cost-effective way. A major factor in the expanded costs of bundled and open-ended contracts showed that the type of contract could affect the per-unit bid price on materials like asphalt as much as 10 percent. Especially in open-ended contracts, with no set deadline, the cost of materials at the time of bidding could fluctuate a great deal before completion. 

What Could This Ultimately Mean for Road and Repair Contracts?

While the data is now out there and free for anyone to examine, there is no definite word on action to be taken. However, according to Newsday, state spending is expected to go down in the coming years, dropping as far as $108 million in 2020 versus $274 million in 2018. These numbers show there may be a surefire way to cut costs without losing quality or jobs. Will a transition from open-ended and bundled projects to single contracts mean more bids for every company? If so, will smaller, more focused projects save money or leave tradespeople with less takeaway? It remains to be seen.

Celebrating a momentous milestone, Extell President, Gary Barnett, recognized the reaching of Central Park Tower’s apex, a staggering 1,550 feet in height early September. Roughly a quarter-mile in height, it is now the tallest residential structure in New York and the highest roof in the western hemisphere. On the heels of Extell’s first foray into the business of supertall residences, the nearby One57 condominium, formerly called “the billionaire building.” It will feature state-of-the-art amenities for residents, fine fixtures in the condominiums themselves, and of course, what promises to be the loveliest views of Central Park anywhere in New York City. 

How Long Has It Taken to Get This Far with the Project?

The initial plans for Central Park Tower were filed in 2012, but construction didn’t really begin until 2015. In the four years since, the structure has risen over 1,500 feet into the sky, adding yet another blade of light and innovation to the skyline against Central Park. Glass wasn’t even installed until 2017, at a point when construction was already a third its eventual height. 

It did not exceed the heights of its numerous competitors until this year, passing 432 Park Avenue in March of 2019 when it reached 1,400 feet. Later it would surpass Willis Tower in Chicago at 1,450 feet in July. It would be the tallest structure period were it not for the One World Trade Center, which tops out at over 1,700 feet. It was the work of many a tradesperson, architect, and investor to bring it even close to that record. 

What Can Residents Expect to Find?

With 131 floors, this skyscraper offers more than just residential space. With some parts finished already and the rest set to open in the coming months, visitors to the tower will find the following:

• A seven-story Nordstrom retail experience from the ground floor and up, set to open in the next month. It will serve as the brand’s flagship location in New York. 
• Resident-only amenities (see next list).
• Luxury, open-concept condominiums with oversized windows and views of Central Park, all ranging from two to eight bedrooms.

The resident’s amenities will be housed on floors 8-12. These will include 50,000 square feet of space to offer:

• The Central Park Club, a lounge, theater, tween lounge, and a conference area. 
• A landscaped terrace featuring a 60 ft outdoor pool.
• Private dining room and a ballroom.
• A fitness center and spa area to include a 63 foot indoor pool, exercise area, childrens playroom, and more. 

What Is Left to Complete on the Project? 

With a projected completion year of 2020, only the last smaller projects are left to be finished before the whole of Central Park Tower is ready to be completely open to residents and the public. Much of this will involve work on the upper floors, including the three-story penthouse famed already for its rumored luxury, spanning 17,000 square feet. The eventual owner of this space will be a record holder for the highest residence in the city. 

The upper floors are still missing glass and a number of finishes, but there are parts all throughout the full expanse of the building awaiting finishing touches. Its first public listings went live back in May, giving curious onlookers a glance at what they can expect to see throughout the finished building. As of the end of September, available spaces range from $6.9 million to $63 million in price.

Long has WeWork, since rebranded the We Company, been a name in real estate as a builder and marketer of shared office spaces (both virtual and physical), beneficial to businesses and individual entrepreneurs. With a recently delayed IPO, WeWork may need to pivot their growth strategy and reach within New York and elsewhere. Barring a failed IPO, its Fifth Avenue holding, the Lord & Taylor building, may soon be home to a major name that has been looking to expand its influence in the New York City area.

Reports suggest that Amazon may be eyeing a lease in a portion of the building since political opposition put a stop the previously-anticipated headquarters construction in Long Island City. Additional reports state that Jeff Bezos has been buying up residential property within blocks of the location and has done little to quiet the chatter. 

What Would It Mean for Amazon to Settle in This Location?

It is first important to note that this will not be the first time that Amazon has leased from the We Company in order to do business. In fact, it is reported to be one of the We Company’s largest and most frequent clients, owing to quicker turnaround and expansion. The We Company tends to send leases out to businesses months far ahead of other options that require time-consuming additional planning. 

Another benefit Amazon would have in setting up base in a We Company-owned location would be no need to pay property taxes, which would have been a major expense had the HQ2 project in Queens gone forward. The Lord & Taylor building space would be another We Company property they would lease. 

What Could It Mean for New York Workers? 

For the people of New York, the promise of new jobs in such an important location is not to be overlooked. However, sources have yet to confirm whether an Amazon location in the Lord & Taylor building would be filled with new hires or transferred workers from a previous site.

However, We Co.’s CEO may soon be removed due in part to a postponed IPO. With lost faith in fundraising and valuation, the site might be in jeopardy. It is looked at with great speculation because 2019 has been a strong year of IPOs with fellow tech-based startups like Lyft and Uber growing each quarter.

If the project proceeds jobs may be on the rise for people in construction and development. The We Company has contracted with known architect Bjarke Ingels to help the redesign of the building. Over 500k square feet of space is to be reworked, including headquarters and office spaces in the upper floors. As their new chief architect, they are hoping to see his innovations throughout this project as well as others, including WeGrow, an elementary school currently in the works. Along with refitting the upper floors for offices, some changes to the building, as reported late last year, may include:

• Retaining the basements, first, and second floors for retail space;
• A rooftop courtyard to be added;
• Restored balconies on the upper floors;
• Restoring the main floor’s original bay windows and entrance space; and more.

As a historic landmark, all full plans will have to be approved before moving forward, but the manpower required to update the building should stretch through multiple trades. 

Why Are Conglomerates Like Amazon Choosing Manhattan to Set Up Shop?

Amazon is not the only major tech company eyeing New York City as a major base of operations, with corporations like Google and Facebook also finding new homes for themselves. This is owed largely to attractive elements such as room for office spaces, either through new construction developments or redevelopments and leases through companies like the We Company, as well as a high concentration of tech-experienced workers in the area ready to come to work for them. 

In light of the metropolitan area’s continued efforts to improve on existing structures and implement mixed-use spaces for citizens of all backgrounds, the landscape will only continue to change and evolve, even where tech giants like Amazon plan to settle. 

A good community thrives when its mass transit system is running smoothly for everyone. While the vehicles carry people all over the city, the place where all the connections are made can decide what’s a smooth ride and where the first bumps will form. Broadway Junction as a subway line sits at the border of East New York, Brooklyn and the Bedford-Stuyvesant neighborhoods, near the intersections of Van Sinderen Avenue, Broadway, and Fulton Street. 

The line also shares space with the elevated BMT Jamaica and BMT Canarsie Lines, as well as the underground IND Fulton Street Line, the Long Island Rail Road, and six bus routes. 

Virtually every corner of the metropolitan area connects via subway, bus, or regional rail, and it sees an average of over 100,000 passengers every weekday. The number of commuters could be greater, and the wide range of access that Broadway Junction Station offers can only get better. After calls from Brooklyn officials to give the area some proper attention, the City of New York has released plans to make that happen. 

What Are Some Major Features of the Current City Plan?

One of the major issues with the 25-acre area as it stands is that while all these transit services are available, they’re largely divided, as is the infrastructure that keeps them running. This makes it a less-than-appealing place to begin to introduce services and businesses to the area in the increasingly popular mixed-use style. The City’s current intention is to introduce structural changes to solve this problem, including: 

• Making all lines at Broadway Junction fully accessible for all commuters. 
• Redesigning the streets surrounding the area to make Broadway Junction Station a “true hub.”
• Improving the safety of the Jamaica Avenue, Georgia Avenue, and Fulton Street intersection with the use of multiple “circulation improvements,” new “traffic-calming” measures, and signals and signs. 
• Introducing new and permanent fair reductions for LIRR Atlantic Branch city trips.

The city is also seeking measures that include the surrounding community and ensures that the development benefits local residents and businesses, not just commuters. These measures include additional job training, increasing legal protections to already existing businesses and tenants, and increasing opportunities for minority enterprises. All of this is just the tip of the iceberg in terms of the city’s full plans, which also seek to address neighborhood amenities, open public spaces, and more. 

Are There Any Steps Remaining Before Ground is Broken?

The plan represents the combined efforts of multiple area leaders and community boards as well as the Brooklyn Chamber of Commerce. At present, the city’s main focus is to take the current plans and see them evolve with constant consultation between Council Member Raphael Espinal and Brooklyn Borough President Erin Adams, as well as local public agencies and stakeholders. 

They continue to absorb feedback from local residents and business owners, making this development a fully collaborative effort. For now, they must develop a strategy for how to best implement this plan, and the first steps in construction will have to follow that. 

This endeavor will pull together tradespeople and architects to introduce multiple new retail spaces, dining, streetscapes, and new signage. New parking is needed while current options are improved, as well as more friendly open spaces for pedestrians, and other infrastructure improvements. There is also a great deal of emphasis on structuring this project so it does not affect current traffic flow or business operation, promising a long and well-paying project for those tradespeople that have a hand in completing it.