Gains
in Education, Infrastructure, Health Care
Indianapolis Shifts Into High Gear
by Craig Barner
In years past "Naptown" was a tag for Indianapolis
because of the city's sleepy pace of life outside its famed
speedway.
Forget the name when it comes to construction. Indianapolis
has long been on the move, and data for the metropolitan area
show an industry cruising in high gear.
The dollar value of construction starts in 2003 went up 12
percent over the previous year to $5.2 billion, according
to data from the Dodge division of McGraw-Hill Construction.
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"From a construction perspective, Indianapolis is one
of the hottest markets in the country and certainly in the
Midwest," said Rob Palmer, executive director of the
Associated General Contractors of Indiana Inc. in Indianapolis.
Indeed, a recently commissioned study has projected the amount
of planned construction will result in a shortage of 6,500
skilled craft workers by the summer of 2005, according to
the Indiana Construction Roundtable Inc., an Indianapolis-based
nonprofit organization of construction consumers. The report
cites the $975 million Midfield terminal project at the Indianapolis
International Airport, as well as others, for the possible
shortage.
"Indianapolis is looking at the same level of percentage
increase [in construction] that Atlanta saw when it landed
the [1996] Olympic games," said Gary Price, executive
director of the ICR.
One initiative to attract workers includes the launch of a
Web site to entice young people and out-of-state workers to
a career in construction in the Hoosier State. In addition,
a coordinated effort will be initiated soon to reach out and
provide information on construction careers to public and
vocational school students, laid-off workers and prisoners.
Indiana already enjoys a low 4.7 percent level of unemployment,
according to the Indiana Department of Workforce Development.
By comparison, the nation's unemployment rate stands at 5.7
percent, the U.S. Labor Department says.
Huge Jump in Education
Data show vigor in multiple areas, especially education construction.
Starts doubled in that area in 2003 to $700.1 million.
The jump is mostly attributable to the inception of some elements
in the upgrade and expansion of the Indianapolis Public Schools,
an overall $832 million project expected to last through 2011,
said Deb Kunce, program manager for Schmidt Associates Inc.,
the Indianapolis-based program manager. The project, which
is profiled in this issue, involves renovations to existing
schools, new construction and other elements.
Also noteworthy is the $146 million project in north suburban
Carmel, where the Carmel Clay Schools district has seen nearly
50 percent growth in enrollment since the early 1990s.
In higher education, Indiana University-Purdue University
Indianapolis is shedding its reputation as a commuter school
and poor sister of the flagship Bloomington campus. Student
enrollment and student housing are increasing, and IUPUI has
five projects under way, two of which are profiled in this
issue.
Long an Indianapolis stronghold, health-care construction
went up 65 percent for the year, to $290.6 million.
Clarian Health Partners Inc., a partnership of Indiana University
Hospital, Methodist Hospital and Riley Hospital for Children,
is driving the increase with the $118 million hospital and
medical-office complex in Carmel and the $74 million hospital
and office complex in west suburban Avon. Also noteworthy
were three Indiana University School of Medicine projects
downtown, including a $74 million research facility.
An estimated $1 billion in construction in the related life-sciences
area has been completed downtown since 1995, said Terry Sweeney,
vice president of real estate development for Indianapolis
Downtown Inc., a nonprofit firm promoting the city. The huge
jump is likely attributable to the presence of medical-products
giants - Eli Lilly and Co., Guidant Corp. and Roche Diagnostics
- and the IU School of Medicine, reportedly the second-largest
teaching hospital in the nation.
And Indianapolis intends to increase its share of this market
with BioCrossroads, a public-private effort to boost investment
in the life sciences.
"If you're a biotechnology-type of firm, we have a great
deal of momentum and have local partners, all within 2 mi.
from each other in downtown," Sweeney added.
Lilly, the most active of all, has six projects under way,
including the $156 million insulin finishing building in the
Lilly Technology Center and two $100 million projects, the
Drug Discovery Lab B28 and Lily Corporate Center B87.
"Lilly is undergoing record-breaking construction,"
the ICR's Price added.
Industrial, Infrastructure Increases
Industrial construction and infrastructure projects are also
enjoying strong activity.
Warehouses went up 30 percent to $160 million, including the
$28.7 million CNH Global Distribution Center in Lebanon and
a $20 million warehouse and distribution center in Plainfield.
Long a warehousing and distribution hub, Indianapolis might
see still more activity in the area because of the repeal
of the state's inventory tax, the AGCI's Palmer said.
"It's possible that the anticipation of that might have
given a slightly greater bump to warehousing construction,"
he added. The repeal has not yet taken effect.
Highway and bridge construction is hot and provides a foretaste
of construction to come at the airport. Bridges went up 247
percent to $109.8 million and highways 29 percent to $133.7
million.
The Indiana Department of Transportation has opened five separate
contracts, ranging in value between $23.1 million and $33.9
million, to rehabilitate or build new bridges or culverts
on Interstate 70 or Interstate 465.
In water management, a $25 million contract was awarded in
mid-January to Fishers, Ind.-based Bowen Engineering Corp.
for a flow equalization basin, said Jed Holt, president of
the firm. The project, which is part of the $1 billion overhaul
of the antiquated Indianapolis sewer system, will help prevent
the flush of sewage into the White River.
The Environmental Protection Agency-mandated project could
last 20 years, Holt said.
So far about a dozen of 130 flow-regulating stations have
been built, and retention basins, plants and tunnel are envisioned.
All that heavy work is being balanced with the opportunity
for cultural refreshment, such as the $105 million expansion
of the Central Library in the Indianapolis Marion County Library
system and several museum projects.
Indianapolis Life
Booming Indianapolis is increasingly attracting people from
the suburbs as a place to live.
Nineteen condominium, townhouse or apartment projects are
under way, especially in the popular northeast quadrant.
"Since 1995, when the Circle Center [mall] was built,
we have the amenities and authentic urban lifestyle,"
Sweeney said.
Addressing these opportunities and problems to come with growth
will be addressed in Regional Center Plan 2020, an urban planning
document that was expected to be released in late January
or early February.
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Cruising Indianapolis (in millions)
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Indianapolis is red hot. The
city saw a 12 percent increase in construction starts
in 2003.
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2000
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2001
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2002
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2003
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%ch. 03/02
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Total Nonresidential
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$1,233
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$1,648
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$1,273
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$1,798
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+41%
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Total Residential
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$2,427
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$2,904
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$2,770
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$2,758
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0
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Total Infrastructure
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$458
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$341
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$579
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$642
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+11%
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Total Construction
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$4,117
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$4,893
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$4,623
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$5,197
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+12%
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Source McGraw-Hill Construction
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