Highway Program Will Shrink

Sept. 28, 2010

The Michigan Department of Transportation's (MDOT) 2009 Highway and Maintenance Capital Program is expected to be $1.26 billion, down approximately $60 million from 2008.

In recent years, Michigan Transportation Fund (MTF) revenues have decreased due to declining state fuel tax and Michigan vehicle registration revenues. In addition, costs for raw materials such as asphalt and steel have been increasing. As a result, MDOT will not have enough state transportation funds to match available federal-aid dollars beginning in 2010 unless state funding is increased.

The Michigan Department of Transportation's (MDOT) 2009 Highway and Maintenance Capital Program is expected to be $1.26 billion, down approximately $60 million from 2008.

In recent years, Michigan Transportation Fund (MTF) revenues have decreased due to declining state fuel tax and Michigan vehicle registration revenues. In addition, costs for raw materials such as asphalt and steel have been increasing. As a result, MDOT will not have enough state transportation funds to match available federal-aid dollars beginning in 2010 unless state funding is increased.

"State policymakers have delayed action on fixing our road-funding formula," said Mike Nystrom, vice president of government and public relations at the Michigan Infrastructure and Transportation Association (MITA). "They've waited too long to address the problem, and now legislators are seeing road projects in their own communities being cut due to their own inaction."

Transportation construction project starts will take a significant drop in 2009. However, miscellaneous civil, sewer and water utility construction project starts and building starts will increase.

Work will continue on a new Karmanos-Crittenton Cancer Center in Rochester Hills, MI. The 30,000-square-foot facility is being built on a 3-acre site.

The exterior cancer center features include a main entry with a covered drive-through canopy, a double-height glazed entry "beacon," a healing garden within view of the infusion center, and stone cladding. The interior of the cancer center will contain a library, administrative area, oncology clinic, infusion center, diagnostic imaging, radiation oncology, receiving area, blood draw laboratory, and waiting areas. The facility is slated for completion in the fall.

"Crittenton knows how important it is for our patients to have access to top medical specialists right in their community," said Lynn Orfgen, president and chief executive officer, Crittenton Hospital Medical Center. "This partnership with the Barbara Ann Karmanos Cancer Center to develop a cutting-edge outpatient cancer center in Rochester Hills is a natural extension of this philosophy."

Clayco Inc. was recently named design-builder for the United States Postal Service's first two Leadership in Energy and Environmental Design (LEED®) certified buildings. Plans include the renovation and expansion of the mail Processing and Distribution Centers (P&DC) in Troy, MI., and Greenville, SC.

"These buildings are the first of their kind — designed with green upgrades to achieve LEED certification from the U.S. Green Building Council. This is a tremendous milestone for the United States Postal Service, our government and these communities," said Paul Todd Merrill, P.E., LEED AP, director of Sustainable Construction with Clayco. "This achievement will be a major catalyst for the improvement of facilities and services available to their employees and our citizens and ensures that the Postal Service is taking steps in the right direction to meet the needs of its patrons while also protecting our nation's valuable resources for future generations."

The $9.2-million Royal Oak Mail P&DC renovation project includes revamping the former 143,000-square-foot P&DC facility into a hybrid building used for corporate office space and as a carrier annex for local delivery operations. In preparation for the renovation, the United States Postal Service has consolidated its Troy mail processing operations — and those of several satellite operations — at a new facility in Pontiac, MI.

Located northwest of Detroit, the single-story renovation will feature a major upgrade in energy conservation along with an overall update on interior finishes and exterior function. Building upgrades will also require full Michigan Occupational Safety and Health Administration (MIOSHA) compliant removals of asbestos plank flooring that are currently installed in the facility. The project is expected to be completed in June.

"The renovations to the Troy facility will enable the Postal Service to consolidate its administrative staff into a single location, provide improved accommodations for two nearby delivery facilities, and offer modernized and environmentally conscious amenities for tenants," said Mark Tomasik, project executive at Clayco.

"The United States Postal Service standard design and construction practices with use of high-performance building design; fleets of bio-based fuel vehicles; and re-use of buildings to reduce reliance on new, raw building materials is in sync with the United States Green Building Council's LEED Green Building Ration System requirement," Merrill said.

Transportation Sewer/Water Misc. Civil Total Highway & Heavy Buildings* Total
2007 $1,448,482,871 $620,651,430 $138,430,948 $2,207,565,249 $4,524,320,548 $6,731,885,797
2008 $565,000,000 $510,000,000 $150,000,000 $1,225,000,000 $3,300,000,000 $4,525,000,000
2009 $249,000,000 $690,000,000 $160,000,000 $1,099,000,000 $4,620,000,000 $5,719,000,000
* Excludes single family housing