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NEWS RELEASE

Department of General Services
 DATE:  December 7, 1999
 FOR RELEASE:  IMMEDIATE
 NUMBER:  #99-16  INTERNET:  www.dgs.ca.gov

DEPARTMENT OF GENERAL SERVICES SELECTS TWO TEAMS TO DESIGN AND BUILD CAPITOL AREA EAST END OFFICE COMPLEX
Sacramento — The California Department of General Services (DGS) today announced the selection of the two design/build teams who will complete the architectural design and construct the Capitol Area East End Complex in Sacramento. The complex, to be built on state-owned land bordering the eastern edge of Capitol Park, will be the largest office building project ever built by the state and will incorporate significant environmental and energy efficiency measures.
 
DGS today awarded two contracts totaling more than $294.3 million to teams headed by Hensel Phelps Construction Company and Clark/Gruen Design Build Inc. Hensel Phelps is headquartered in Greeley, Colorado, with offices in San Jose and Sacramento. Clark Construction is based in Bethesda, Maryland, with regional headquarters in Hayward, California.
 
"We are pleased to have these two accomplished design/build teams aboard and are ready to begin the most significant civic building complex to be built in Sacramento in decades," said DGS Interim Director Cliff Allenby. "The Capitol Area East End Complex will play a major role in the continued development of downtown Sacramento while incorporating environmentally sensitive construction measures. Both these firms have a solid history with projects aimed at revitalizing downtown city core areas."
 
Due to the size of the project, the design/build work was divided into two separate contracts. Clark/Gruen Design Build, Inc. was selected for the 1.1 million square foot, $225.6 million project to be built in the area bounded by 15th, 16th, 17th, L and N Streets, directly to the east of Capitol Park. Clark Construction recently completed the San Francisco Civic Center Complex, including the renovation of the historic Earl Warren State Supreme Court Building. Gruen Architects is based in Los Angeles and will be assisted by the Sacramento architectural firm of Forrar and Williams.
 
The team headed by Hensel Phelps was chosen for the 360,000 square foot, $68 million office building project to be built on the city block bounded by 14th, 15th, N and O Steets, at the southeast end of Capitol Park. Hensel Phelps recently completed the 23-story Esquire Plaza building on the K Street Mall in Sacramento, and is in the early stages of construction of adjacent 28-story Sheraton Grand Hotel over the historic Public Market building at 13th and J Streets. Fentress Bradburn Architects of Denver Colorado, and Dreyfus & Blackford Architects of Sacramento are teamed with Hensel Phelps. Design engineers and construction subcontractors based primarily in Northern California will also be used.
 
The selection of the design/build teams follows an extensive seven-month process involving proposals from 13 teams of construction and architectural firms. The design/build project delivery method is widely used in the private sector, but is relatively new to State public works projects. The design/build process allows the state to contract with a single entity for both design and construction. This promotes a more collaborative process between the designer, builder, and owner. As a result the state is able to achieve a better value for its dollar.
 
The request for proposals included requirements for environmentally appropriate design and construction measures. These included energy efficiency, sustainable building measures, indoor air quality, and alternative energy technology. How well the proposals met these requirements was a significant factor of the evaluation.
 
"The environmental measures envisioned for the Capitol Area East End Complex are considerable," said Mike Courtney, acting Deputy Director of DGS’ Real Estate division. "We were pleased that the design/build teams embraced the vision of the East End Complex becoming a model for future ‘green’ construction projects."
 
The East End Complex comprises five office buildings totaling 1.5 million square feet of office space. The complex will consolidate the operations of three state departments. These departments are now housed in some 20 locations in the Sacramento area. The complex also includes a 750-space parking garage currently under construction at 13th and P Streets. The garage will open in January, 2000.
 
The total cost of the East End Complex is $392 million. DGS estimates that over the next 30 years, the cost savings to taxpayers, realized through building this office complex on state-owned land versus leasing office space, is about $300 million.
 
The complex will house more that 6,000 employees from the departments of Education, General Services, and Health Services.
 
Preliminary designs call for widening Capitol Avenue between 15th and 17th Streets with major open space development. The complex will include parking under all office buildings and an additional five-level parking garage along L Street between 16th and 17th Streets. The office buildings vary in height from three to seven stories with street-level retail along 17th Street and at 14th and O Streets.
 
Groundbreaking could begin as early as the spring of 2000 with occupancy scheduled for April, 2003.
For further information: www.henselphelps.com and www.clarkus.com.