Saint-Gobain Glass Establishes First Manufacturing Facility in Metro Area

CBRE has leased 140,000 square feet of manufacturing space at 17300 W. Broadway Road in Goodyear, Ariz. Saint-Gobain Glass Corporation, the world leader in design, manufacture and distribution of energy-efficient building material for use in home and commercial construction, has expanded its global platform into the Phoenix-area market.

Joe Porter, Pat Feeney, Dan Calihan and Rusty Kennedy of CBRE’s Phoenix office represented the landlord, BT Goodyear LLC of Horsham, Penn., a subsidiary of BET Investments, and structured the long-term lease agreement. The tenant was represented by Tom Louer of Lee & Associates in Phoenix, along with Chris Robinson of Fischer & Associates in Dallas, Texas. The exact financial terms of the transaction were not disclosed.

“This is yet another example of the wave of manufacturing companies choosing to locate in the metro Phoenix marketplace,” said Feeney. “Quality big-box industrial product with competitive lease rates, combined with the area’s business-friendly environment and low cost of living, are tough for other neighboring markets, like California, to compete against.”

Saint-Gobain took occupancy of the facility in September 2011, where it will install a reflective surface on glass plates as part of the process to manufacture solar panels, which includes heating, cleaning and polishing the glass surface. The new building provides ample space, adequate power and the necessary loading capabilities for Saint-Gobain to expand its operation, while meeting its distribution needs through an active rail spur and proximity to Interstate 10 and State Route 85.

Saint-Gobain was founded in 1655 in Paris, France. The company’s first major project was manufacturing and installing all the mirrors in the Palace of Versailles. Saint-Gobain has more than 190,000 employees worldwide and operates facilities in 64 countries.

About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services firm (in terms of 2010 revenue). The Company has approximately 31,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 300 offices (excluding affiliates) worldwide. CBRE offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. Please visit our Web site at www.cbre.com.

About BET Investments
BET Investments was founded in 1998 by Bruce E. Toll. The Company and its affiliates own, manage, develop, and lease shopping centers, power retail centers, mid-rise office buildings, office parks, apartment buildings, and flex office/industrial space throughout the United States that encompass more than 5 million square feet. Please visit our website at www.betinvestments.com..

Breaks Ground on New Buildings

By Kevin Crawley

On April 5th, Kim Anderson’s vision and dream for Montessori in the Park took one giant leap toward becoming reality with the official ground breaking of a new campus on Litchfield Road behind Romano’s Macaroni Grill.  Anderson, the owner and co-manager of Montessori in the Park, celebrated with family, friends, community leaders, and business partners as well as staff, teachers, students and their parents who were in attendance for the ceremony.  The school buildings are scheduled for completion in September.
The new complex will be comprised of three buildings: a preschool building for children age 3 to 6; an elementary school building for 6 to 12 year olds; and an administration building.  Shaped in a “U” configuration, the new campus will feature a center courtyard that will be very conducive for outdoor activities that are so important to the Montessori method of education.  Outdoor activities are one of the many advantages that the new buildings will have over Montessori in the Park’s current set up of two smaller separate locations, and are just one of the reasons the school’s staff, teachers, students and their parents are so excited.

“(The reaction has been) extreme excitement and enthusiasm,” said Lisa Cusick, president of the Parent Teacher Organization for Montessori in the Park.  “A beautiful outdoor environment encourages students gardening and horticulture.  Everything has been very well planned out inside and out.  The spaces will be larger and improved.”

Montessori in the Park first opened in 2007 with locations at Veranda Commons in Litchfield Park and Indian School Crossing in Avondale.  However, the plan has always been to eventually have one united campus despite hurdles that at times seemed insurmountable.  “It’s hard to forget about (a new building) when parents are excited and supportive, and ask about the progress,” said Anderson.

As it turned out, parents became an even more vital part of bringing construction of the new buildings to fruition than Anderson originally could have thought.

“My kids went to Montessori in the Park, and I loved the school,” said Mike Hirth, principal at 101 West Commercial Advisors, who became the real estate developer for the project.  “When I found out they were looking to expand, I asked how I could help.”

“Mike Hirth put his heart and soul into the project.  We wouldn’t be here without him,” said Anderson at the ground breaking ceremony.

Finding the land proved to be the most difficult aspect.  “It took awhile to find the right-sized land at the right price,” said Hirth.  At first, suitable land was too expensive.  However, as the recession took affect on real estate, the market moved into the range they were looking for.

Still, financing remained elusive.  The group visited with over ten banks and numerous potential investors without coming to an agreement, but they remained persistent.  “What is really amazing, after the number of people who turned this project down or said it couldn’t happen, is that we are here breaking ground,” said Hirth on the day of the ceremony.

CLC Associates and GCON, the respective architect and construction company on the project, were brought together to cooperate on a design-build to maximize cost effectiveness and Anderson decided to proceed without outside investors.  Eventually the pieces fell into place – the location, the design, the builder and the financing.

With the Montessori method of education, the surroundings and environment play a very significant role, so everyone involved with the school is thrilled about the new campus.  Based on the practices and findings of Italian educator Marie Montessori in the early 20th century, the method is often described as a way for children to learn through their own natural, self-directed activities with the role of teachers being to control the environment, not the child.

“The Montessori method is all about choice,” said Tammy Chavet, co-manager of Montessori in the Park.  “Marie Montessori found that when kids have choice in what to do, they get more out of activity.”

According to Chavet and Anderson, Montessori students learn first from a global perspective rather than a local one; learn concepts early before putting them to pencil and paper later; and are reading and doing math at a high level by the ages of four and five.  They also say the students do well when they transition to public school.

“The kids come out (of Montessori school) with a lot of leadership skills,” said Chavet.  “They are self-assured and independent, and know what they want.”

“There are huge benefits to many types of education,” said Anderson.  “This is one that produces good results.  Montessori in the Park is here to give parents options that just weren’t here before.”

Goodyear Mayor James Cavanaugh, who took part in the ground breaking ceremony, agreed that the option is a good one for parents and that the new campus will be a positive resource in the community.  “This is a great ownership group and Montessori is a great teaching concept, so this is a terrific way for the two to come together.  I’m very supportive of this,” he said.

Despite (or maybe because of) the existing job market, education is on the rise and enrollment continues to climb. More and more people are going back to school to help get them a better job in hopes to make their future brighter.  Job seekers are finding themselves in the midst of a much more dense sea of competition, all vying for the same positions.  The current job market and economy have put pressure on the stay-at-home mom and/or dad.  If a stay-at-home mom or dad is lucky enough to land a job in this market then that usually means that the parents are faced with arguably one of the toughest decision of all:  What to do with the child (or children).

Education and schools are becoming a big part of commercial space absorption here in the west valley.  These large facilities help create fewer vacancies throughout the market, and increase job opportunities.  Both these key factors are what we want to continue to see out in the west valley, and schools at all levels are recognizing that need.  Therefore, the moves are happening.

One of the latest to expand into the west valley and call it their new home is The Goddard School.  In fact, two separate Goddard Schools opened over the summer, one at Thomas Road (across the street from Estrella Mountain Community College) in Goodyear, and the other located in the community of Verrado in Buckeye.

At The Goddard School, children from the ages of 6 weeks to 6 years old are encouraged to develop at their own pace in a nurturing environment supported by a team of dedicated teachers. The program enhances children’s emotional, social, intellectual and physical development.

In Goodyear, The Goddard School is creating quite the buzz from the local community and facilities around it. “The Goddard School in Goodyear has helped connect the dotted lines….we have YMCA, the Community College, and a church all on the same block along with several residential communities. Having something for the parents and children coupled with the quality education is exactly what we needed on this high energy road and is sure to be a spark for other commercial activity in the area” said Ashley Ulinger with Don Bennett & Associates.

Kimberly Hoody and JoEllen Johnson, the owners of The Goddard School in Goodyear, decided on this location  because of the lack of options available for children as well as the reputation of the area.  According to Hoody,“There was a definite need for a higher standard in early education, in creating an environment to establish the lifelong love of learning that remains alive in the child.  Also, the feedback we heard about the area and the local businesses was impressive.  The business community has been extremely supportive, willing to help in any way.”

But these are not your typical franchise owners by any stretch.  They are onsite everyday, they have their own children in the school and they hold themselves and their teachers to a higher standard.  “We require higher credentials from our teachers than what the state requires. Additionally, we feel it is imperative that each child receives individual attention so our ratios are lower resulting in smaller class sizes.” says Hoody.

Hopefully, the west valley will continue its drive to provide quality educational outlets for all ages.  The results are extremely favorable both to the individual and to the community.  It all starts at an early age.

(For more information on commercial real estate investments, leasing or development contact Don Bennett Partners at 623.935.1111.  For information on The Goddard School in Goodyear call 623.536.8185)

By Todd Kinney, Don Bennett Partners

Sure, the West Valley is made up of 13 unique and distinctive cities, and sure, we who live here dabble in a bit of friendly competition and parochial pride, but let’s be honest: To anyone east of I-17, and to many of us west, the West Valley is just one big place. We might cherish the charm of old Litchfield Park; boast about the beauty of Lake Pleasant, take the in-laws antiquing in Glendale and the zoo in Goodyear, but as we cross borders from one city to the next, we don’t see the lines.  And that’s a good thing.
The West Valley is frequently credited with having a good handle on regionalism.  Our generally unified position toward the preservation of Luke Air Force Base and the cooperative efforts that resulted in the acceleration of the widening of I-10 in the Southwest Valley are hallmarks of the collaboration that has helped the region grow so quickly so well. We’ve got a lot in common.  Primarily, we’ve grown up together.  And we did it fast.
Leadership West, which cultivates leadership capital for the West Valley, recruits leaders from all 13 of the cities, focusing attention on the issues that affect all of us and encouraging the sharing of ideas and resources as we tackle our problems together.  In areas of politics, education and the arts, other West Valley institutions have also experienced success by embracing regionalism.
One of the most renowned local experts on the topic of regionalism is Diane McCarthy.  McCarthy was a co-founder of Leadership West and the past president of WESTMARC, the Western Maricopa Coalition that advocates for good public policy in the West Valley.  She is also the Director of Business Partnerships and Legislative affairs at West-MEC (Western Maricopa Education Center), which is a regional school district that delivers career and technical education in twelve school districts.
“When WESTMARC was launched in the early 90’s, times were bad,” she says.  “Cities and towns had a reason to band together, each helping one another – the old “rising tide” theory that improvements in the general economy will benefit all participants in that economy.  They learned that the theory really is true; all of them were helped in a variety of ways.  When times got better the cities and towns were used to working together, so it seemed natural to continue.  While there have been “transgressions” along the way, by and large regionalism works well in the West Valley.
Jack Lunsford is the CEO of WESTMARC today. “The nature of governance in the West Valley essentially forces regional collaboration.  Infrastructure issues like transportation, education, healthcare, Luke AFB and air and water pollution know no boundaries.  With 13 incorporated cities and towns in the West Valley and Maricopa County itself, the only way to address and solve regional issues is through cooperation.”
“The West Valley is such a unique area.  It’s a large land mass made up of many small to medium sized cities,” says Julie Richard, President and CEO of the West Valley Arts Council.  “It makes sense to have an overall coordinating entity like the Council to tie the cultural community together.  We promote every cultural event in the West Valley, centralizing the distribution of information.  We also provide a unifying factor for the cultural organizations and artists that live and work in the West Valley.  Our regional approach has gone far in creating a sense of cooperation and oneness among the arts community that did not exist prior to these efforts.”
In these economic times, regionalism makes more sense than ever.  As we face our collective difficulties, it is our collective voices which are more likely to be heard.  When resources are scarce, sharing is a logical option.  By viewing our neighboring cities as truly our neighbors, we are more likely to foster good will and maintain a cooperative spirit.  After all, we’re all in this together.
Kathy Knect is the Executive Director of Leadership West whose mission is to cultivate leadership capital for the West Valley. Learn more at www.leadership.org

A City Center for Goodyear may not be in the near future, as the city weighs the costs of construction against falling home values.

The City Center proposal calls for a four-story, 96,500-square-foot city hall, 27,000-square-foot library and 4-acre-park. That’s a reduction of 16,000 square feet from the original overall project that Goodyear had hoped to open in 2011 northwest of Estrella Parkway and Yuma Road.

But a 3.4 percent decline in assessed valuations on real estate in the city for fiscal 2011 means the city can’t afford construction. At a City Council work session Monday, officials said the amount of assessed valuation fell from $878 million to $848 million and the decline is expected to continue. A decline in assessed valuation leaves a financial gap in the city’s share of property-tax collections.

“The preliminary revised numbers from the (Maricopa) County Assessor’s Office no longer allow the city to proceed with the sale of general-obligation bonds in the amount needed for these projects,” City Manager John Fischbach said.

The city would be unable to pay back future bonds if the fixed tax rate remains the same.

Under Goodyear’s vision, the City Center would boast a performance facility and universities in addition to the city hall, library and park.

Officials at Arizona State University and New Hampshire Institute of Art said they were interested in leasing space for graduate programs. But some council members said startup costs to accommodate the schools were not a priority.

“We have enough budget problems here. I think education is important, but if we have to fund a state school with city money, I’m totally against it,” Councilman Dick Sousa said.

Space for private universities isn’t an option, anyway.

For now, Fischbach said, the council must choose whether to pay for a library and park or for priority projects such as public-safety radios and a city telephone system. Priority projects would cost an estimated $23.1 million, while the library, park and infrastructure would cost about $22.3 million. If council members focus on the projects, the City Hall and library could be on hold until fiscal 2016-17.

Council members don’t have a firm timeline for a decision. They agreed the library is a priority but that the economy will dictate the timing.

“I think all depends on the economy,” Vice Mayor Georgia Lord said. “Every year we have a budget, every year we can see if planning can be moved up. I understand a date has to be set (for a decision), but planning dates can be changed with the economy.”

As Avondale’s finances continue to take a hit, the city is eliminating 22.5 additional full-time jobs, seven of them through layoffs, and dropping the photo-red-light cameras and photo-speeding-enforcement van.

Don’t say Avondale hasn’t cut police and fire

Since 2008, when revenues began falling sharply, Avondale has laid off 28 city employees, eliminating 70 positions in all. It also added 15 police personnel, so the net reduction was 55 employees, said Pier Simeri, a city spokeswoman.

Add the seven employees who were notified that they were being laid off Tuesday. Although they are gone, they will remain on the payroll for 30 days and receive a severance package, Simeri said.

In addition to those jobs, 6.5 equivalent full-time jobs are or will be vacant or the employees were transferred, City Manager Charlie McClendon said.

At Monday’s City Council meeting, Councilwoman Stephanie Karlin suggested that a pay cut across the board could save the jobs of those being laid off.

“I’ve never been a proponent of personnel cuts, and it seems that’s perpetuating the problem,” Karlin said. “When you reduce personnel, you’re talking about people not (being able) to pay their mortgage, and you’re talking about people having to go into foreclosure, and then you’re talking about people not being able to go out and buy things, and that means less sales tax.”

McClendon said the city evaluated across-the-board pay cuts.

“Each 1 percent reduction in the general fund saves us about $250,000, so to get that kind of savings that we had to have in this, we would have had to do a pretty significant reduction,” McClendon said. “And we are, and have been, asking our employees to do more with less . . . and I think we need full morale and productivity out of the people that remain. So my decision was that it was better to strategically reduce in a few areas than to do something across the board.”

The job cuts were necessary to keep police on the street, the Fire Department operating, parks open and services running, McClendon said.

Grim financial outlook

Avondale’s projected general fund revenues for this fiscal year are $44 million. Based on current collections, the city estimates revenues will be $3.8 million short.

To lessen the impact of the shortfall, city staff identified savings within each department totaling $2.4 million.

In all, total proposed reductions to next year’s budget are $5.2 million, which will help offset a deficit ranging from $6.7 million to $7.8 million.

“Our budget peaked in the general fund at almost $60 million in the 2007-08 fiscal year,” McClendon said. “It will be down at $43 million for next year.”

No more cameras, van

To save money, the city also is terminating its contract with Scottsdale-based American Traffic Solutions, which operates traffic-enforcement cameras.

The two intersections with red-light cameras are at Dysart Road and Van Buren Street and at Dysart and McDowell roads. The city uses a photo-speed-enforcement van throughout the city.

The cameras began snapping red-light runners in February 2006. In June 2007, the city began a speed-enforcement-van trial, which led to the van contract.

In February 2009, the council approved expanding the program to include two more photo-red-light intersections. All four intersections were to be modified to enforce both red-light and speed violations. The project was to be completed in March.

That isn’t happening.

The camera program was popular with the council, but it costs $425,000. That includes contractor fees, officer overtime, a traffic program coordinator and court staff. By ending the program, the net savings to the city is $106,390. The council has always maintained that the cameras weren’t there to raise revenue but for safety.

Police Chief Kevin Kotsur said there has been a drop in traffic accidents, but he believes the bad economy means fewer people driving. And the costs of the program are rising every year.

“Looking at the stats, there’s no significant correlation between the number of accidents and the impact photo enforcement has been having on those wrecks,” he said. “It’s down all over the city. It’s down all over the state.”