The cost of doing business--Part 2
Posted: Tue Jan 16, 2007 2:39 pm
This is part 2 of the LDS building program list brought to the attention of MD by harmony. It can also be found on RfM by the poster named "Mighty Builder". I didn't write any of it, just bringing it to the attention of the board. Warning for minor language and mention of male reproductive organ.
Edit: I pasted the whole thing together for anyone who wants to read the whole thing. I added the words "PART 2" to denote the second part.
Part 1 of "the cost of doing business" discussion can be found at this MD link:
http://mormondiscussions.com/discuss/vi ... .php?t=735
Edit: I pasted the whole thing together for anyone who wants to read the whole thing. I added the words "PART 2" to denote the second part.
Part 1 of "the cost of doing business" discussion can be found at this MD link:
http://mormondiscussions.com/discuss/vi ... .php?t=735
I just came from a meeting at our corporate headquarters where the subject of instruction was the current building projects and projected projects in Utah and SLC and how we (my company) are going to meet the needs.
Some interesting facts that came from the meeting.
1. The City Creek Center:
a. Our company estimates that the true cost will be $6 – $8 billion dollars. This is based on the following facts.
1. This is a fast tract project. The construction of one 22 story tower and two 18 story towers would normally take three to five years alone. Add in all the auxiliary buildings, infrastructure (sewer, waterlines, communication lines, etc. - oh yes and the mole people tunnels), street level improvements, etc. It costs a lot of money to keep a project like this on track for the short amount of construction time available. After all they are destroying two city blocks and replacing them new in 48 months (project end date to be 2011). As the presenter stated “Imagine if two city blocks in Manhattan were to be removed and replaced, oh that’s right, the “Freedom” towers and complex are. Could that be done in 48 months? NO WAY. The “Freedom” tower alone is projected to take six to eight years.“ (by the way, the Freedom tower is only one city block).
2. Competition from current construction projects for labor. Legacy Highway, Draper Temple, South Jordan Temple, TRAX expansion, Commuter Rail, Housing projects like Kennecott Day Break, Retail and Commercial construction to service the current construction projects etc., all have placed a demand on available man power and crafts. To compete with these projects the City Creek Center construction companies (Jacobson, Oakland and Big D) are going to have to pay premium wages and salaries. This means no more day labors at $5.25 per hour. Our company projects that a helper is going to be paid $14.50 per hour. Can you say Hurricane Katrina prices?
3. Competition from current construction projects for materials. To compete with the current projects the City Creek Center construction companies (Jacobson, Oakland and Big D) are going to have to pay premium prices for materials. Even with the Mormon church buying direct from the manufacturers, the materials will be more expensive as the delivery dates will cause the materials to be rush orders. The Mormon church is notorious for waiting until the last minute to purchase materials (maybe they think that construction supplies will be found on-site every morning like “manna” from heaven?). This fact of delayed buying caused the conference center costs to rise from the projected $315 million estimate to the final cost of $1.1 billion.
4. There currently is a shortage of qualified workers. Our company estimates that when started City Creek Center will demand an extra 25 000 to 35 000 workers. Our company estimates that mid project there will be over 100 000 construction workers needed. These individuals will have to come from out of state. (So, if you can swing a hammer and bend a nail, head to SLC, hell if you own a hammer come to SLC). Funny side note, unless they make construction of the City Creek Center a mission calling, the influx of workers are not going to be Mormon. So not only are they going to over pay for the workers, they will loose 10% more of their money.
5. The cost of just getting to “zero dirt” our company estimates will be between $450 - $650 million. This includes demolition of the current buildings, moving and relocating (breaking leases) tenants out of the current buildings, removing all current utilities and replacing with new that meet up to date requirements (seismic, materials, etc.).
One of the presenters expressed the biggest concern. FAST TRACK = FAST CRAP. What he means is that the City Creek Center will be built on 7 day cures for the concrete (7 days is the minimum allowed, whereas 28 day is the best cure), hastily constructed supports, minimum welds, and every other short cut that can be done to save time.
He pointed out that the Conference center was a fast track and it is already having major problems (leaking roof, panels falling off, interior wall are wet, etc.).
Yes kiddies, believe it or not, there is more. Part 2 is coming soon.
PART 2
2. Salt Lake Valley Temples (Draper and South Jordan)
These are a fast track projects. The construction of the two temples has been accelerated. Reason – The Salt Lake City temple needs seismic up grades so the two new temples will be constructed on a fast track schedule (one and a half years). This means crappy construction, cost over-runs, construction delays, etc. I discussed in Part 1 of my posting. Probable cost of each temple Draper – $450 million, South Jordan $385 million.
3. Ensign Plaza South
The Mormon church is concerned about the blight that surrounds the Ogden temple. Therefore they are constructing a five story office tower named Ensign Plaza South. The project is under construction at this time. The cost is estimated at $75 – 125 million.
4. Church Office Building
As I discussed in another thread, the COB concrete facing is disintegrating because of rebar corrosion. The Mormon church plans on re-facing the BIG PENIS starting about 2008. An announcement will be made that the structure is aging, needs seismic up grades and in order to preserve the continuity of Temple Square a new façade of Granite will be used to cover the steel framing. At this same time true seismic up grading (cross beam supports, shear planes, etc.) will be done. The costs will be between $350 – $750 million, depending on how much remodeling is done.
The COB was (as noted in Part 1) built on the cheap. Henry B. Moyle almost spent the Mormon church into bankruptcy with his building projects. Being the faithful that he was, Elder Moyle conveniently had a heart attack and died while on vacation so the Brethren didn’t have to excommunicate him. Faithful bastard.
5. Salt Lake City Temple
When conducting the seismic up grade to the Tabernacle, the Mormon church discovered several problems not found in the original evaluation of the structure. The renovation of the Tabernacle has become more involved and costlier. An investigation of the Salt Lake City Temple has revealed some of the same flaws. Because of this the structure has to be renovated for seismic and other requirements. Whereas the Tabernacle cost $175 million to renovate the estimates on the Temple is between $250 – 450 million.
Remember all these projects are to be completed by 2011. Total costs $10.1 billion. If you include the Conference center ($1.1 billion) the total spending in Utah not to include chapels and stake centers $11.2 billion dollars.
Yeah, they need my money for feeding the poor, nurturing the needy, housing the homeless, etc.