16
Builders utlook years EL PASO BUILDERS ASSOCIATION OF BUILDING EL PASO’S FUTURE SINCE 1946 www.elpasobuilders.com www.epbuilders.org 2012/11 By Ray Adauto, EPAB T he vote was in and now the hard part begins. It is especially true for the employees of the City of El Paso who have made City Hall their home over the last thirty years. The complex located downtown is to become the new location for the new Triple A baseball franchise and so come sometime in the next four months one of the biggest implosions ever undertaken in El Paso’s history. When the city hall complex comes down the employees and offices that have been housed there will be scattered literally around downtown. For people doing business with the city it will also require patience and fortitude. City hall houses about 600 employees and both the city manager’s office as well as offices for elected representatives including the Mayor. Moving one department isn’t an easy task but having to relocate so many departments will be a challenge, no matter the planning. John Dorney, of Dorney Security and a member of the El Paso Association of Builders has years of experience moving and relocating soldiers and others for the U.S. Army. “It is difficult to plan such a move and it will require some maneuvering and some luck in order to meet the timelines they are talking about,” he said. “I have moved soldiers across the street and across the globe, and any time you have to execute a critical move like this requires skill and timing,” Dorney told the Outlook. One of the most critical issues is where different departments will be housed. Recently City council bought the building that houses the El Paso Times. This is where it appears that the City Manager, Council and Mayor will be moving to. As part of that move planning for city council meetings and regular meeting space will have to be designed, built and open for business rather quickly. City Manager Joyce Wilson has been leading the efforts towards the move, and thinks she has it down if things work out right. “We have had to plan this move while making sure city business continues, but I have faith in the employees and staff that we will meet our deadlines and have a smooth transition,” Ms. Wilson said. The critical timing of the move is required in order to meet commitments to Major League Baseball for opening the ball park in 2014. Site inspection, remediation, and demolition are one aspect, while the others is where to put all 600 employees and the departments they work in. One employee, on the condition of anonymity told the Outlook that this move is complicated and a little disorganized. “My fear is that we box everything up, load up and then have nowhere to land,” the city employee said. “I can tell you that just moving from one floor to another in the building is hardly a cakewalk, but this is something at a whole other level.” Those fears and others have been part of the concern voiced by opponents of the city hall demolition and move. Former mayor Ray Salazar was in office when city hall was built and took the current administration to federal court seeking a stay on the demolition until a vote took place. “This building is only 30 years old and is in good condition,” Salazar told a television audience on KVIA TV’s “Extra”. His position was also endorsed by others including attorney Stephanie Townsend Allala, a local lawyer heading up a different anti-ballpark group. She has been quoted as saying "Given the past indictments and convictions for corruption, I think that our city leaders should be bending over backwards,” Allala said, “to let the public know that the era of backdoor deals… is ended.” While there has been no investigation into those allegations the move to demolish the building and build a ball park still hasn’t seen the end. Whether or not protestors continue to try to stop it city hall employees will be relocated. As of this report the only sure indication is that the city has agreed to purchase the El Paso Times building and another building nearby that will require extensive remodelling. Where will the builders and developers get permits and submit plans? Frankly we don’t know because the staff hasn’t been told either. With everyday problems already a reality in any business, having to adjust to a city hall move adds some frustration and concern. When this move is made then not only will the employees have to adjust so will the industry and the public. City Hall to relocate, easy transition not expected Sun power increased at EPAB It’s been over a year since the El Paso Association of Builders first plugged into the Sun, as the association turned the power of the sun into energy for the association office building. Border Solar, owned by Javier Ruiz, installed a 2.5 kilowatt system on to display the use of solar panels in commercial buildings. Border Solar had the opportunity to provide more than 4 additional kilowatt photo voltaic panels this November. “It was time to be able to add some more panels and give the association more savings,” said Mr. Ruiz. The board of Directors commended Ruiz for his gift and President Frank Arroyos took possession for the Association. “Javier has been very generous with his gift to us allowing the Association to benefit from the abundance of solar power available in El Paso,” Arroyos said. “Our thanks to Border Solar for the work and for providing a gift that will be giving for decades to come,” he said. The panels were just part of the work necessary to get the system up and running. “We needed to design the system to what we already had there, and then implement the actual hookup in a way that would minimize the disruption to the office,” Ruiz said. “It was painless for us,” said Ray Adauto, Executive Vice President of the EPAB. “Border Solar took only a few days to complete the job, turn it over to us, and make sure the El Paso Electric Company connections were all done,” Ray continued. Solar energy is considered the prime “alternative” energy source in the sunny region of El Paso. “No doubt we have the sunshine, so why not use it,” asked Ruiz. The El Paso Association of Builders learned that solar energy will first be used by the building, supplementing the electric grid provided by El Paso Electric. When working as designed the sun will provide the first line of energy to the building, then whatever is not used goes back to the grid. “Texas still has a little more work to do before the power generated is treated just like any other power generation done by mainstream providers,” according to Ruiz. Meanwhile the gift that he provided the association will be clean and welcomed. “I appreciate Javier doing this for us because of the savings we hope for will lower our overall operations cost,” said Adauto

Builders Outlook 2012/11

Embed Size (px)

DESCRIPTION

The official publication of the El Paso Association of Builders

Citation preview

Builders utlookyears

E L P A S O

BUILDERSA S S O C I A T I O N O F

B U I L D I N G E L PA S O ’ S F U T U R E S I N C E 194 6www.elpasobuilders.com www.epbuilders.org

2012/11

By Ray Adauto, EPAB

The vote was in and now the hard

part begins. It is especially true

for the employees of the City of El

Paso who have made City Hall their

home over the last thirty years. The

complex located downtown is to become

the new location for the new Triple A

baseball franchise and so come

sometime in the next four months one of

the biggest implosions ever undertaken

in El Paso’s history. When the city hall

complex comes down the employees

and offices that have been housed there

will be scattered literally around

downtown. For people doing business

with the city it will also require patience

and fortitude.

City hall houses about 600 employees

and both the city manager’s office as

well as offices for elected

representatives including the Mayor.

Moving one department isn’t an easy

task but having to relocate so many

departments will be a challenge, no

matter the planning.

John Dorney, of Dorney Security and

a member of the El Paso Association of

Builders has years of experience

moving and relocating soldiers and

others for the U.S. Army. “It is difficult to

plan such a move and it will require

some maneuvering and some luck in

order to meet the timelines they are

talking about,” he said. “I have moved

soldiers across the street and across the

globe, and any time you have to execute

a critical move like this requires skill and

timing,” Dorney told the Outlook.

One of the most critical issues is

where different departments will be

housed. Recently City council bought

the building that houses the El Paso

Times. This is where it appears that the

City Manager, Council and Mayor will be

moving to. As part of that move

planning for city council meetings and

regular meeting space will have to be

designed, built and open for business

rather quickly. City Manager Joyce

Wilson has been leading the efforts

towards the move, and thinks she has it

down if things work out right. “We have

had to plan this move while making sure

city business continues, but I have faith

in the employees and staff that we will

meet our deadlines and have a smooth

transition,” Ms. Wilson said.

The critical timing of the move is

required in order to meet commitments

to Major League Baseball for opening

the ball park in 2014. Site inspection,

remediation, and demolition are one

aspect, while the others is where to put

all 600 employees and the departments

they work in. One employee, on the

condition of anonymity told the Outlook

that this move is complicated and a little

disorganized. “My fear is that we box

everything up, load up and then have

nowhere to land,” the city employee

said. “I can tell you that just moving from

one floor to another in the building is

hardly a cakewalk, but this is something

at a whole other level.” Those fears and

others have been part of the concern

voiced by opponents of the city hall

demolition and move. Former mayor

Ray Salazar was in office when city hall

was built and took the current

administration to federal court seeking a

stay on the demolition until a vote took

place. “This building is only 30 years old

and is in good condition,” Salazar told a

television audience on KVIA TV’s

“Extra”. His position was also endorsed

by others including attorney Stephanie

Townsend Allala, a local lawyer heading

up a different anti-ballpark group. She

has been quoted as saying "Given the

past indictments and convictions for

corruption, I think that our city leaders

should be bending over backwards,”

Allala said, “to let the public know that

the era of backdoor deals… is ended.”

While there has been no investigation

into those allegations the move to

demolish the building and build a ball

park still hasn’t seen the end. Whether

or not protestors continue to try to stop it

city hall employees will be relocated.

As of this report the only sure

indication is that the city has agreed to

purchase the El Paso Times building

and another building nearby that will

require extensive remodelling. Where

will the builders and developers get

permits and submit plans? Frankly we

don’t know because the staff hasn’t

been told either. With everyday

problems already a reality in any

business, having to adjust to a city hall

move adds some frustration and

concern. When this move is made then

not only will the employees have to

adjust so will the industry and the public.

City Hall to relocate, easy transition not expected

Sun power increased at EPAB

It’s been over a year since the ElPaso Association of Builders firstplugged into the Sun, as theassociation turned the power of thesun into energy for the associationoffice building. Border Solar, ownedby Javier Ruiz, installed a 2.5kilowatt system on to display the useof solar panels in commercialbuildings. Border Solar had theopportunity to provide more than 4additional kilowatt photo voltaicpanels this November. “It was timeto be able to add some more panelsand give the association moresavings,” said Mr. Ruiz. The boardof Directors commended Ruiz for hisgift and President Frank Arroyostook possession for the Association.“Javier has been very generous withhis gift to us allowing the Associationto benefit from the abundance ofsolar power available in El Paso,”Arroyos said. “Our thanks to BorderSolar for the work and for providinga gift that will be giving for decadesto come,” he said.

The panels were just part of thework necessary to get the system upand running. “We needed to designthe system to what we already hadthere, and then implement the actualhookup in a way that would minimizethe disruption to the office,” Ruizsaid. “It was painless for us,” saidRay Adauto, Executive VicePresident of the EPAB. “BorderSolar took only a few days tocomplete the job, turn it over to us,and make sure the El Paso ElectricCompany connections were alldone,” Ray continued.

Solar energy is considered theprime “alternative” energy source inthe sunny region of El Paso.

“No doubt we have the sunshine,so why not use it,” asked Ruiz. TheEl Paso Association of Builderslearned that solar energy will first beused by the building, supplementingthe electric grid provided by El PasoElectric. When working as designedthe sun will provide the first line ofenergy to the building, thenwhatever is not used goes back tothe grid. “Texas still has a little morework to do before the powergenerated is treated just like anyother power generation done bymainstream providers,” according toRuiz. Meanwhile the gift that heprovided the association will beclean and welcomed. “I appreciateJavier doing this for us because ofthe savings we hope for will lowerour overall operations cost,” saidAdauto

2 Builders Outlook 2012/11

We are winding our way toward the cooler days of fall. We have

so much to be thankful for this year in looking at our market. But

now what? Where do we so from here? I am talking about

peering over the edge of this so-called “Fiscal Cliff”? There are

three scenarios that could be. The first scenario would be that

Congress cannot agree on anything and there are no changes to

current law. This is the worst case scenario i.e.… taxes increase

dramatically, new round of layoffs and higher unemployment.

Congress would be stupid to allow this to happen. Scenario

number two would be best case. In this case, Congress would

adopt the “grand bargain” to lower marginal tax rates for

individuals and businesses and at the same time get rid of tax

expenditures. This would establish long term tax policies that

would remove the huge cloud of uncertainty for employers and

investors. The third scenario would be to do what Congress does

best, which is “kick the can down the road” again for another six

months. So what happens then? Businesses and investors will

have to endure at least another six months of not knowing how to

plan and invest their money. Economic growth will continue at a

lethargic pace we’ve seen for the past two years. Jobs will be

created, but at a slow pace. Over-all whatever scenario is played

out again lets be thankful for the planning and foresight of the

founders of our Constitution to create a political environment that

would support freedom and opportunity!

President’s Message |

El Paso Disposal

772-7495

32012/11 Builders Outlook

Frank

Arroyos

President,

El Paso Association

of Builders

Showroom: 2131 Missouri

915 • 533 • 6045 fax • 533• 6096

Thomas R. Brown, Owner

Politics, especially Texas politics,

generally has a conservative slant as

for decades the Texas east of El Paso

traditionally votes conservatively

Republican or conservative Democrat.

Anyone who has had a chance to visit

the Capitol during session sees the

results of such votes as the legislature

and Senate go about State business.

The way El Paso vote is strong

Democrat, more aligned if you would

with New Mexico rather than Texas.

Candidates who would like to

pronounce their conservative political

background are forced to become

liberal Democrats in order to get

elected in El Paso. Even some of the

most public of elected officials know

the game that has to be played in

order to get elected here. Business

people also play the game by

supporting candidates simply because

not doing so would be used against

them someday, somewhere. I know

that by printing this some of my most

conservative friends will admit to

themselves that this is true in El Paso,

and elsewhere.

The election showed that El Paso

seems to pride itself in electing die

hard liberal candidates that are so far

left of the rest of Texas that they

become somewhat ineffective when

talking with or to Texas politicians.

When two of our state legislators,

Naomi Gonzalez and Marisa Marquez

broke “party ranks” and supported

Republican Dee Margo the local

Democrat Party announced in a public

outcry that these two legislators were

to be charged with treason to the

party. Really? Is the fact that these

two highly intelligent, El Paso loving,

good legislators were cast aside

because of support for a fellow

legislator who they said worked well

with them? I have a hard time

understanding that position, it just

doesn’t make sense to me. I know

Democrat Chair Rick Melendrez. I

used to give him a ride to Cathedral

High where he was an underclassman

and I was a senior. Rick is a good guy,

but I think the pressure from some

hardnosed ultra-liberal yellow dog

democrats couldn’t understand them

coming out publically to support Dee.

In my opinion I think this hurt the

Demos more than it ever will Naomi

and Marisa. I think these two El

Pasoan’s saw that in order to get

something done in the legislature you

have to be united and at the time Dee

was part of the team.

I know Joe Moody and he too is a

good guy. He represents El Paso well

and will do so again. I don’t think he

will do anything to hurt the

relationships with Marissa and Naomi,

but the election endorsement for his

opponent may take a while to heal. It

must heal and quickly if our delegation

wants to continue working for the

overall good of the community. Joe

knows this and I know it’ll be ok in

Austin. What I hope is that those of

you who vote party rather than person

realize that sometimes there are more

important issues than party affiliation.

Sometimes you don’t get the best

because of the blindness of a straight

ticket vote. In El Paso that’s reserved

for the Democrats. In the rest of

Texas the same holds true for the

Republicans.

Next February you will have the

opportunity to join us as we travel to

Austin and meet with our delegation.

It’s at that time, Rally Day, that you

and we will make a case for our

industry. It’s a vital part of your reason

for being a member and one that I

hope you will join in. Our delegation is

willing to hear us. It’s your obligation

to give them something to hear.

Political affiliation aside, politics is a

vital part of why we exist. Let’s send

that message not just at the ballot box

but in person.

Perspective |

Ray Adauto,

Executive

Vice President

EPAB

4 Builders Outlook 2012/11

Election shows Texas is Red, El Paso Blue….again

by Julián Aguilar

The Texas Tribune, 2012

Buoyed by the support of twoDemocratic members of the El Pasodelegation, incumbent state Rep.Dee Margo, R-El Paso, seems tohave the wind at his back leading upto next month's general election.

Margo, 60, the CEO of aninsurance sales company, says thesupport from Reps. Naomi Gonzalezand Marisa Marquez, who representHouse districts 76 and 77,respectively, indicate the delegationis not made up of “drama queens”but rather a unit that can do what’sthe best for the district.

“I just think it speaks volumesabout bipartisanship, which is whatpeople talk about they want to seeevidence of, and I think ourdelegation works well together onbehalf of El Paso,” Margo said.

It was Margo’s third HD-78 boutagainst attorney Joe Moody, aDemocrat who defeated Margo in2008 by 3,200 votes. Moody thenlost to his former challenger in 2010by about 1,400 votes. This time, theendorsements and straight-ticketvoting in a presidential election yearpainted this rematch as too close tocall weeks away from the Nov. 6election.

Moody wasn’t sure what promptedthe Margo support from his fellowDemocrats, but he said that’s thenature of politics and that heremains undeterred.

“He appreciates the support hegets, and I appreciate the support Iget,” Moody said. “Butendorsements are very rarely whatelections are about, and I amfocused on talking about where thiscommunity needs to go, and reallythe damage that was done by thisLegislature.”

Marquez told the El Paso Times

recently that the support wasn’t anod in favor of the Republican Partyor its platform, but as recognitionthat Margo is an important part of thedelegation.

Moody aimed to remind voters ofthe GOP's budget cuts for public andhigher education, which he saidhave resulted in hundreds of fewerteachers in El Paso County andmillions in losses for the Universityof Texas at El Paso.

“Closing the achievement gap inschools and building highereducation into something that isgreat is something that is great forour community and something thatwe should focus on, not tearing itdown,” he said. “And Dee was thesole vote for that [budget]. Everymember of this delegation votedagainst that, and that’s why I thinkthere are two very clear choices inthis election.”

Like several Republicancandidates defending the state’sbudget cuts, Margo, a member ofthe House AppropriationsCommittee, said his party and thebudget writers were merely playingthe cards they were dealt.

“We dealt with the revenuenumbers that we were given.Remember 95 percent of our budgetgoes to Medicaid, education and ourcriminal justice system. There isn’t awhole lot of room,” he said, addingthat the only option would be to raisetaxes. “And my question to Mr.Moody would be, ‘Okay, tell mewhere you want to raise taxes? Andwhat is your priority, education orMedicaid?’”

Margo said his conservative voicewould’ve been a welcome return toEl Paso’s six-person delegation,which also includes veteranlawmaker Joe Pickett, from HD-79,incoming member Mary Gonzalezfrom HD-75 and state Sen. JoséRodríguez, all of whom areDemocrats.

“We have a red state with redhouses of government [so] it helpsfrom El Paso’s standpoint,irrespective of the desire to remainblue from the Democratic partisanside,” he said. “It certainly does nothurt to have one member of thedelegation represent the othermajority party as we work throughissues related to El Paso.”

Margo also recently earned thesupport from the Texas Associationof Realtors, was recognized by theTexas Border Prosecution Unit andwas endorsed by Attorney GeneralGreg Abbott.

Moody’s support includes somelocal star power in the form of ElPaso County Attorney Jo AnneBernal, District Attorney JaimeEsparza and Sheriff Richard Wiles.Wiles specifically cited Moody’ssupport for local law enforcement’sability to fight cartels andtransnational gangs, somethingMoody said is indicative of his ownability to work with Republicans. Hecites his work with state Sen. JohnCarona, R-Dallas, on HB 2086,passed in 2009, which strengthenedpunishment for criminals involved invarious gang activities.

“I don’t think there is anythingabout my record that shows that Ihaven’t been able to work well withpeople and get things done,” Moodysaid. “And that was a major piece oflegislation — that wasn’t a local bill;

that was something that impactedthe entire state.”

The most recent campaign financereports, filed in June, showed Margowith a steady advantage overMoody, with about $71,000 raised,$97,600 spent and $41,700maintained since January. He alsohad about $126,000 in loanbalances. During that same timeperiod, Moody raised about $26,000,spent $10,100 and had about$27,300 maintained. Updatedreports are due next week.

Moody and Margo downplay thepotential of straight-ticket voters toaffect the race, but historicalpatterns in El Paso County reflectDemocrats' strong edge in thatcategory.

In 2010, about 31,000 Democratsvoted straight ticket, compared withabout 15,500 Republicans. In 2008,the last presidential year, theDemocrats had more than threetimes the number of straight-ticketballots cast, with about 76,700 to theGOP’s 23,600. Asked if he wasconcerned about a repeat from2008, when support for BarackObama in El Paso helped propelMoody to victory, Margo said thatyear was an anomaly.

“I don’t hear a lot of enthusiasticresponse” this year, he said, aboutlocal support for the president.

52012/11 Builders Outlook

Election Re-capIt was Moody vs. Margo, Part Three, in El Paso's HD

6 Builders Outlook 2012/11

The Remodeling Market Index (RMI)climbed to 50 in the third quarter of 2012, upfrom 45 in the previous quarter, according tothe National Association of Home Builders(NAHB). The RMI is at its highest point sincethe third quarter of 2005, tracking thepositive trends recently seen in the rest ofthe housing sector.

The RMI component measuring currentmarket conditions rose to 52 from 46 in theprevious quarter, while the componentmeasuring future indicators increased to 49from 44.

An RMI above 50 indicates that moreremodelers report market activity is higher(compared to the prior quarter) than report itis lower. The overall RMI averages ratings ofcurrent remodeling activity with indicators offuture activity.

“The strength of the RMI, especially inowner-occupied properties, shows thathome owners are investing in remodels ashome prices stabilize,” said NAHBRemodelers Chairman George “Geep”Moore Jr., GMB, CAPS, GMR, a remodelerfrom Elm Grove, La. “As owners becomemore confident that investments in housingwill hold their value, they are beginning toundertake projects to improve their comfortthat they had been putting off.”

All three indicators of current marketconditions improved: maintenance andrepairs rose to 56 (from 50), minor additionsand alterations to 51 (from 47) and majoradditions and alterations to 49 (from 42).Current market conditions improved or held

steady in all four regions in the third quarterof 2012. Current remodeling activity wasparticularly strong in owner-occupiedhousing; the sub-components of the currentconditions index for owner-occupiedhousing were all well over 50, rangingbetween 55 and 60.

Future market indicators in every regionbut the Northeast experienced gains fromthe previous quarter: Northeast, 38 (from41); Midwest, 50 (from 46); South, 52 (from46); and West, 52 (from 42). All indicators offuture market conditions rose: calls for bids,48 (from 44); amount of work committed fornext three months, 46 (from 43); backlog ofremodeling jobs, 50 (from 46); andappointments for proposals, 51 (from 43).

“The improvement in the RMI providesmore evidence that the remodeling industryis making the orderly recovery from its lowpoint in 2009 as we’ve been expecting,” saidNAHB Chief Economist David Crowe.“Although remodeling projects over $25,000are now showing some signs of strength,they are still lagging behind smaller propertyalterations and maintenance and repairjobs. The recovery of the remodeling marketin general, and large projects in particular,continues to be constrained by factors suchas tight credit and problematic appraisals.”

Remodeling Market Index

Climbs Five Points,

Returns to 2005 Levels

Damages fromSandy could total$50 Billion

Morgan Brennan, Forbes Staff

Hurricane Sandy pummeled the EastCoast in November, leaving a trail ofdevastating destruction in its wake.Damages could run as high as $50billion, according to Eqecat, andhundreds of thousands of homeownersare expected to file claims for flood andwind damage, according to theConsumer Federation of America.Roughly $88 billion worth of homesacross eight states were put at risk bythe storm’s surge, according toCorelogic.

Hurricane Sandy’s immediate impacton real estate in the hardest hitNortheastern neighborhoods is alreadypainfully evident, from New Jerseyshore houses completely swept away bythe sea to entire neighborhoods likeQueens’ Breezy Point tragically leveledto the ground. But this latest naturaldisaster won’t just affect certain ZIPcodes, it will weigh on America’s

housing market as a whole.In many parts of the country housing

has welcomed a nascent recovery.Nationally, home sales have beennotably higher this year as compared tolast. In September, existing home saleswere up 11% year-over-year andpending sales up 14.5%, according tothe National Association of Realtors.Prices have risen too, with the nationalmedian sales price $183,900, or about11% higher than September of 2011.Inventory has fallen drastically in manyparts of the country, fueling the uptick inprices. The rising numbers have helpedhousing become a bright spot in recenteconomic reports, with analystsprojecting that residential investmentwill positively contribute to grossdomestic product this year for the firsttime since 2005.

Now that rosy recovery will dampen.“This will certainly create a negative inthe short term,” says Lawrence Yun,chief economist of the NationalAssociation of Realtors. “The bottomline is we clearly anticipate a slowdown,but it will be temporary.”

Move up http://i.forbesimg.com tMovedown

Along the East Coast, expect homesales to trend downward in coming

months, as sellers take their damageddigs off the market and buyers hold offon purchases. Pending sales will bedelayed or in some cases collapsealtogether as lenders insist upon newappraisals in areas battered by Sandy.Yun expects the regional drop in activityto log a “notable, measurable impact”large enough to pull the national salesstatistics down for November onward.Home sales typically begin to slow dueto seasonality at this time of the year;the storm’s lingering effects will ensurethat slowdown manifests moredramatically.

Even so, that short term pain mayactually evolve into a market boost four-to-six months from now. “With pastnatural disasters, home sales pause butwhat generally happens is in latermonths, as insurance money begins toflow in, the housing market getselevated to higher levels than before thestorm,” explains Yun.

Interestingly, data tied to comparablenatural disasters suggest that homeprices tend to be inversely affected.With inventory levels reduced, demandtends to outweigh the supply, causingprices to inch up. “Home prices tend torise after hurricanes and other naturaldisasters because some homes are

unfortunately lost and new constructionis delayed so housing stock isn’tgrowing as fast as the population,” saysJed Kolko, chief economist ofTrulia.com.

However, more drastic storms inareas more commonly associated with,say, flooding — like Hurricane Katrina inNew Orleans — can have the oppositeeffect, pushing prices down in the longterm as residents relocate to new areasaltogether.

Hurricane Sandy will affect residentialconstruction, which has modestlyrebounded this year, in two ways.Remodeling activity will jump, ashomeowners who sustained damage totheir properties, particularly primaryresidences, hire contractors to makeimmediate fixes. “It’s bad news forhomeowners, but it’s certainly anopportunity for workers who havesurvived a very down housing market toget back to work,” says Robert Denk, anassistant vice president of economicsfor the National Association of HomeBuilders. He notes that this dynamicplayed out after Hurricane Irene as well.

In the short-term the storm will stiflenew housing starts. This will in part bedue to seasonality, since newhomebuilding tends to pause in thewinter months in the Northeast, and inpart be due to the fact that many ofdecimated coastal properties in placeslike the Jersey Shore tend to bevacation homes and as such, will notlikely be considered immediate prioritiesin terms of repair. New home starts, likesales, will likely rebound in early springto levels slightly higher than before thestorm as owners start to finally rebuildthose properties.

A subsection of the housing marketnow riddled with post-Sandy questionsis distressed real estate. OnWednesday RealtyTrac reported thatnearly 25,000 distressed propertiesvalued at an estimated $7 billion sit incounties declared disaster areas. DarenBlomquist, a vice president atRealtyTrac, says the number is actuallyhigher, though the California-basedforeclosure site has yet to finalize andupwardly revised count.

“I think there is potential for people inthe foreclosure process to now haveless incentive to fight foreclosure on ahome if it has been damaged,” saysBlomquist. In other words, somedistressed homeowners may simplywalk away from their preforeclosuresaltogether rather than try and work out ashort sale or other such deal. With bank-owned homes, the question that arisesis whether lenders will choose to pourmoney into renovations for damagedproperties, especially since those REOsalready represent non-performingassets.

New Jersey and New York have twoof the slowest judicial foreclosureprocesses in the country. New Jersey

has experienced 100%-plus increasesin foreclosure activity this year,according to RealtyTrac, as lendersfinally began processing foreclosuresstalled by 2010′s robo-signing scandal.New York state has seen similar activityincreases this year. RealtyTrac expectsSandy’s impact will cause a temporarypullback in the number of foreclosuredocuments filed in both of these states.

“This storm could slow down theforeclosure process and therefore thehousing recovery,” warns Blomquist. “Itwill certainly slow down the pace atwhich the market will absorb theseproperties.”

72012/11 Builders Outlook

OUR NATION

View more photos on our facebook page: elpasobuildersassociation

Builders utlook on the scene |

The annual EPAB Fall Professional Golf tournament featured pros fromthe Sun Country PGA playing with amateurs at Painted Dunes. The oneday 18 hole tournament pitted 25 teams against each other in a pro formatwhere everyone played their own ball to completion. Unlike traditional “bestball” where everyone tees off, then uses the best positioned ball each of thenext hits, the pro format called for more precision and ability. The fieldsquickly filled up with golfers who play a little better than average and lovethe challenge of this type of game.

The EPAB also featured two gourmet food trucks for the players to graband go. This was the first time these units had been used at a tournamentat Painted Dunes according to the staff.

“It was a great time for all of us, and we certainly enjoyed the food, theprizes and especially the golf,” said Greg Bowling who headed up oneTropicana Team.

The team of pro David Muttitt and amateurs John Chaney, MikeBroussard and, Dan Paulson took first place, while pro Bill Harvey andamateurs Brad Lane, Victor Mendez, and Jorge Fernandez came in sec-ond. In 3rd place was the team of pro Steve Manning with John Reich,Todd Caldwell and Ray Adauto. Charlie Tellez and Jorge Fernandez woncloset to the pins. No one scored a hole in one, valued at $10,000 cash.

Pro Am brings out club pros and locals

2012/11

Pace of New-

Home Sales

Virtually

Unchanged in

October

Sales of newly built, single-family

homes in October held virtually

unchanged from a downwardly revised

pace in the previous month, at a

seasonally adjusted, annual rate of

368,000 units, according to figures

released by HUD and the U.S. Census

Bureau today.

“New-home sales have been

occurring at a fairly steady pace since

this summer, with October sales running

about 17 percent ahead of the pace set

at the same time last year,” noted Barry

Rutenberg, chairman of the National

Association of Home Builders (NAHB)

and a home builder from Gainesville,

Fla. “While this is encouraging,

housing’s recovery is being significantly

constrained by overly tight mortgage

lending conditions at this time, and

policymaker discussions about changes

to the mortgage interest deduction could

cast a shadow on future housing

demand.”

“After steady improvement in home

sales through most of this year, the pace

of that activity effectively leveled off over

the four months from July to October,”

added NAHB Chief Economist David

Crowe. “The latest numbers are right in

line with our forecast, which projects that

sales will resume a slow, upward

trajectory going forward and will end

2012 about 20 percent ahead of 2011.”

Regionally, new-home sales numbers

were mixed in October. The Midwest

posted a 62.2 percent gain following a

big dip in the previous month, and the

West posted a solid 8.8 percent

increase. Meanwhile, the South and

Northeast posted declines of 11.6

percent and 32.3 percent, respectively –

the latter of which was likely impacted by

storm preparations at the end of the

month.

The inventory of new homes for sale

rose marginally to a still-slim 147,000

units in October, which is a 4.8-month

supply at the current sales pace.

10 Builders Outlook 2012/11

Jaime’sCourier

Service,Inc.

Jaime’sCourier

Service,Inc.

915-549-4533 or

915-478-2404

Bonded, insured for

your peace of mind.

112012/11 Builders Outlook

Give your customers the ‘option of the sun’

Now more than ever,

El Paso home buyers

are planning for the

future.

Border Solar can help

you offer your

customers solar power

as a sensible

alternative.

The future starts

today.Crossing to Clean Energy

www.bordersolar.com

7365 Remcon CircleEl Paso, TX 79912

(915) 613•4168

follow us on twitter and

facebook:

BorderSolar

Product News

Health Product DeclarationOne of the most exciting developments

rolled out at this year’s Greenbuild is notreally a product: the introduction of theHealth Product Declaration, an openstandard used to promote thetransparent disclosure of productingredients and their health impacts.

Many companies have already signedon to supporting this important initiative,and many had booths at Greenbuild,including ASSA ABLOY, Interface,Prososco, Crossville, InPro, Stego, andTeknion.

BIPV windows from TropiglasTropiglas was displaying its building-

integrated photovoltaic (BIPV) windowtechnology, which uses a polymer layersandwiched between two panes of glass.When sunlight passes through the firstpane, it is captured by the inner layerand directed to the edge of the glass(similar to how optical fibers work),where standard monocrystalline PV cellsconvert the light to electricity.

The glass is free of visible cells, unlikemost current BIPV glazing options,whose cells block part of the view. Butthe efficiency is only around 4% (35watts/m2, 80% transparency, 90% IRblocking, SHGC< 0.41). The companyclaims the manufacturing process issimilar to that of low-e coatings, so itshouldn’t cost much more to

manufacture, but of course, you still haveto contend with the other PVcomponents and wiring.

Tropiglas is still looking for glazingpartners but expects to have product onthe market in 2013.

Energy enhancements for SafePlugproducts

SafePlug products protect occupants(particularly children) againstelectrocution and monitor plugs againstoverloads or discrepancies in theelectrical flow that could lead to fires ordamage electrical equipment.

The company’s products can now alsoincrease energy efficiency: they controlplug loads so that phantom loads areeliminated and occupants can monitorand turn off appliances. The SafePlugEnergy Manager installs over standardoutlets and comes with an “EnergyServer” and “Energy Manager Outlets.”The outlet and server do not require anInternet connection for communication,but the server can be connected toEthernet or Wi-Fi for remote monitoring.

Aquatec water submeteringThe Aquatec submeter from the Germancompany Sika can be attached directly toa shower, urinal, or other fixtures to trackand display water usage data. Thatinformation can then be downloaded viaoptical sensor or sent wirelessly andaccessed remotely via any Internet-

connected device.Aquatex is available in white or clear, soyou can see the inner machinations, andin a “split” version, where the mechanismand display are separate for easierinstallation and viewing.

Climate Wizard evaporative airconditioner

Climate Wizard from the Australiancompany Seeley International anddistributed in the U.S. by L&H Airco, is arefrigerant-free indirect evaporative airconditioner similar to the Coolerado.

The Climate Wizard uses fans withenergy-efficient electronicallycommutated motors (ECM) to move airthrough a heat exchanger that containsboth wet and dry channels.

Climate Wizard is a refrigerant-freeevaporative air conditioner that providescool, dry, fresh air along with energysavings. Photo Credit: SeeleyInternational

Heat is transferred across themembrane from the dry to the moistchannel, where it is vented into theatmosphere.

The cool, dry, fresh air then passesinto the building to provide cooling.Climate Wizard uses 6.6 gallons of wateran hour for the 10 kW model (about 2.8tons cooling); a 15 kW (4.3 tons) versionis also available.

Climate Wizard is used primarily incommercial applications, but a residentialunit is undergoing testing.

Affordable remote-control shadesfrom Lutron

Lutron rolled out a couple of newproducts at Greenbuild, including itsSensor Layout and Tuning Service forfine tuning the performance ofoccupancy and daylight sensors so theywork as advertised; and a KOOLBLACKrollershade material that reduces solarheat gain to the level usually onlyattainable with light-colored fabrics.

But the product that caught my eyewas the company’s battery-powered,motorized Serena Remote ControlledShades. Though not new (they wereintroduced at the end of 2011), theseresidential cellular shades are easy toinstall by a homeowner and can beoperated via either infrared (IR) orradiofrequency (RF) controls. They caneven be integrated with other lightingcontrols.

A more sophisticated control system isavailable in the company’s Sivoia line.These shades are powered by fourstandard D batteries, which should lastthree years, according to the company,because of its unique powermanagement technology. Severalmaterial and color options are available,including double-cell and room darkeningversions that have R-values of 3.6 and4.3, respectively.

Starting at less than $280, they seemlike a bargain in the remote-controlledshade industry.

From high-tech BIPV to smarter plugs forthe home, we found lots of great newproducts at Greenbuild this year

12 Builders Outlook 2012/11

Membership News

Thanks to our

NOVEMBER

SODA  SPONSOR:

Joe Bernal

Employee Benefits

SODA SPONSOR

years

E L PA S o

BUILDERSA S S o C I A T I o n o F

B U I L D I N G E L PA S O ’ S F U T U R E S I N C E 194 6

11395 James Watt, Suite A-11 79936915-633-8002

132012/11 Builders Outlook

www.elpasobuilders.com www.epbuilders.org

WELCOME NEW MEMBERS |

UPCOMING EVENTS |

RENEWALS |Bella Homes

Boise Cascade

Carpet Warehouse

Cimarron Mortgage Capital

CMF Enterprises

Jack White Building Specialties, Inc.

JB Laminates

Loretta Blankenship, CPA

McCoy’s Building Supplies

Mountain Vista Realty

Pointe Homes/Lupo Development Corp.

Stewart Title Guaranty

Sun City Spray Foam

The Heritage Group

Time Warner Cable

Tropicana Homes

Tropicana Properties

Villagi Homes LLC

JANUARY 10

BOARD MEETING

12 NOON

EPAB OFFICE

JANUARY 18-20

SPRING HOME SHOW

CIVIC CENTER

JANUARY 18-21

NAHB MEETINGS

LAS VEGAS NEVEDA

JANUARY 22-24

INTERNATIONAL BUILDERS’

SHOW

LAS VEGAS, NEVADA

JOSEPH HOMES

CONTACT: JOEY NAJERA

521 BELVIDERE, STE. B

EL PASO, TX 79912

915-584-3868

CRAWFORD BUICK GMC, L.P.

CONTACT: BRIAN PAONESSA

6800 MONTANA AVE.

EL PASO, TX 79925

915-778-7781

Border Investor Capital

LLC seeks Civil Engineer

in El Paso, Texas.

Bachelor Degree in Civil

Engineering required.

Candidate must possess

at least 60 months of

experience in Civil

Engineering.

Qualified applicants may

submit résumé to:

Mr. Sergio Cuartas Jr.,

President.

Fax résumé to:

(915) 855-2106.

Civil Engineer

Nothing is better for the soul than a

great round of golf with great people

playing with you. I have had the luxury

of playing some of the finest golf

courses in the country, but nothing is

better than having your friend partner

with you for that golf game.

Fortunately I have some of my best

friends right here in El Paso, and like

others they enjoy the game as much or

more than I do. Good for me they also

play better than myself, so it takes the

sting out from maybe a miss or two on

my part.

The Association held our Pro Am

tournament this year with talent from

around our area, choosing to partner

up with the club pros from Sun Country

Professional Golfers Association.

These pros come from New Mexico

and West Texas and what a great

group they are. The hosting club,

Painted Dunes Desert Golf Course,

was ready for the teams and head pro

Mark Gonzalez did an excellent job as

always. His partner in crime Anthony

Bellow ran the tournament with skill.

We had two great food trucks serving

the lunch and frankly that was a big hit.

Our many golfers had a great time and

we enjoyed making sure they did. My

thanks to Ray for his help and to

Margaret for her help in keeping things

in order.

I am very much looking forward to

the installation dinner and hope to see

a lot of you there. Nothing matches

the fun of seeing old friends at the

installation, but I’d like to see some

new faces as well. I’m looking forward

to serving in Edmundo Dena’s

administration as Associates Chair.

This is supposed to be my last year, so

if you have a desire to help me with

this year I’d much appreciate it.

Associates make things happen, plain

and simple.

14 Builders Outlook 2012/11

Sam ShallenbergerWestern Wholesale Supply

Associates Council

� execuTive oFFicerS

Frank Arroyos - President

Cisco Homes

edmundo Dena - vice President

Accent Homes

Frank Torres - Secretary/Treasurer

GMF Custom Homes

Sam Shallenberger - Associates council

Western Wholesale Supply

Greg Bowling - immediate Past President

Tropicana Homes

ray Adauto - executive vice President

El Paso Association of Builders

� couNciL/commiTTee cHAirS

Affordable Builders council

Bobby Bowling IV

Associates council

Sam Shallenberger

Build PAc

Randy Bowling

Desert Green Building council

Javier Ruiz

industry Promotions

Greg Bowling

Land use council

Vacant

Young Designer Award

John Chaney

remodelers council

Rudy Guel

membership Drive

Mike Santamaria

Finance committee

Kathy Carrillo

education committee

Frank Spencer

� ADviSorY To THe BoArD

J. Crawford Kerr, Attorney, Firth, Johnston

& Martinez

� BoArD oF DirecTorS

Joe Bernal, Joe Bernal Insurance

Doug Borrett, Karam Co.

Kathy Carrillo, Pioneer Bank

John Chaney, Passage Supply

Sergio Cuartas, BIC Homes

Ted Escobedo,Snappy Publishing

Art Garcia, El Paso Door

Juanita Garcia, ICON Custom Home Builders,LLC

Samira Gonzalez, Edwards Homes

Lorraine Huit, Cardel Design Group

Walter Lujan, Dawco Home Builders

Sal Masoud, Del Rio Engineering

Bruce Meyer, JDW Insurance

Edgar Montiel, Palo Verde Homes

Kathy Parry, Hunt Communities

Javier Ruiz, Senercon & Border Solar

Frank Spencer, Aztec Contractors

Henry Tinajero, WestStar Bank

Linda Troncoso, TRE & Associates

Ken Wade, El Paso Building Materials

Paul Zacour, Zacour & Associates

2011 Builder member of The Year

Greg Bowling

Tropicana Homes

20110 Pat cox Award

Kathy Parry

Hunt Communities

2011 Associate of The Year

Sam Shallenberger

Western Wholesale Supply

John Schatzman Award

Bob Bowling III

Tropicana Homes

ePAB Special Award

Rudy Guel

Guel Construction

Honorary Life members

Brad Roe

Cliff Anthes

Wayne Grinnell

Chester Lovelady

Don Henderson

Anna Gil

Past Presidents

committed to Serve

ePAB mission Statement:

The El Paso Association of Builders is a

federated professional organization representing

the home building industry, committed to

enhancing the quality of life in our community by

providing affordable homes of excellence and

value.

The El Paso Association of Builders is a

501C(6) trade organization.

© 2012 Builder’s Outlook

is published and distributed for the

El Paso Association of Builders

by Snappy Publishing

240 Thunderbird • Suite C

El Paso • Texas • 79912 915-820-2800

6046 Surety Dr. El Paso, TX 79905

915-778-5387 • Fax: 915-772-3038

Kelly Sorenson

Mark Dyer

Mike Santamaria

John Cullers

Randy Bowling

Doug Schwartz

Robert Baeza

Bobby Bowling, IV

Rudy Guel

Anna Gil

Bradley Roe

Bob Bowling, III

E. H. Baeza

Hershel Stringfield

� TAB STATe DirecTorS

Doug Borrett, Karam Co., Life Director

Randy Bowling, Tropicana Homes

� NATioNAL DirecTorS

Bobby Bowling IV.

Demetrio Jimenez

NATioNAL ASSociATioN oF

Home BuiLDerS

(800) 368-5242

TexAS ASSociATioN oF

BuiLDerS

(800)252-3625

years

E L P A S O

BUILDERSA S S O C I A T I O N O F

B U I L D I N G E L PA S O ’ S F U T U R E S I N C E 194 6

www.elpasobuilders.com www.epbuilders.org

Builders utlook