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C O N S T R U C T I O N


What Goes Up Gets Snapped Up

Fairfield's Construction Boom in Commercial Real Estate

by Ruthie Hutchings
October, '96

 

New Construction

New construction has infiltrated our lives these days like a layer of sawdust on the windshield. First there's the noise. Not obnoxious, but insinuating. So how do the executives at Vital Images carry on conference calls with Minneapolis, or Jay Boyle talk to Thailand over buzz saws at the new Amy RAM building? What do the patients of Dr. Yudin, next door to the new Noisy Goose, think when they feel one hand in their mouth but hear two drills? Then there's the woodsy scent of freshly sawed pine or fir, which Glade will never capture in an aerosol. And, ah yes, the sights. A friend, who works in a building that is being renovated, says she enjoys watching one of the workmen as she feeds her parking meter each morning. "I just like the way he works, " she explains, with large, innocent eyes.

A Quick Review

Actually, we're getting used to watching buildings go up all over town. Here's a quick review of new buildings and additions that have gone up just since 1993.

In 1993, Casey's, Country Kitchen, Hy-Vee, The Katie RAM building on 3rd Street, H&H; Molding at Fairfield Industrial Park, and Agri-Industrial Plastics on Grimes put over $7.3 million into new construction.

In 1994, Fesler's built it's new offices and showroom on West 34, Iowa Electric built on Grimes, Dr. Roth set up his dentistry at the new brick building on B Street, Dexter built a huge new site on Grimes, and the new Fairfield library was begun. All for around $9.5 million.

In 1995, Kessel's new Farm Bureau, Cummings' insurance building, and Iowa State Bank's new location on Burlington were hammered and troweled into place, collectively spending about $5.4 million.

So far in 1996, construction includes the new Subway restaurant on Burlington, the new Easter's, the Noisy Goose gift shop on Burlington, the Amy RAM building on 4th Street, Mahmet Guran's car lot and body shop, and both the First National Bank and Libertyville Savings Bank drive-throughs. Including additions to three schools--Washington Elementary, Fairfield Community school, and the Maharishi School--about $3 million has gone into construction, roughly $2 million of it on commercial properties.

Just North of Fairfield, close enough to still be town but officially in the county, in the "Mandala " area associated with Maharishi University of Management, The Raj, a hotel/restaurant, was completed in 1993, and The Mansion, residential condominiums, went up in 1995.

All of these signal business growth--a surprising amount, even in these relatively benign economic times--particularly for small towns across the state. According to Mayor Rasmussen, "Economically, Fairfield is one of the top non-metropolitan communities in Iowa, and Jefferson County has achieved the most outstanding growth of any county in the state's southeastern tier. "

Who's Where in Expansion

The step that seems to precede building is spreading into vacant office space, and who's expanding into which buildings is the buzz along business grapevines.

Much of the recent expansion has been propelled by a few local businesses who hit a major growth spurt. Over the last couple of years, they've burst from the seams of one building and spread into several others. Telegroup gradually took over the entire Tetra II building by the end of 1993, but now also resides in some of Tetra I, the previous 20/20 Eye Care office downtown, and Overland Outfitters on Highway 34 East.

USA Global Link, also growing fast, has spread from the old Telephone Company on 2nd Street to the previous NAPA Auto Parts shop, with executive headquarters now next door to The Mansion off of Highway 1 North. At some point, it's logical to assume, Telegroup and USA Global Link may each consolidate their various locations into larger buildings.

Which is just what Dexter did. It built a new facility on W. Grimes with 157,500 square feet for offices, laundry manufacturing, and foundry and moved in during January, 1995.

In addition, Harper Brush transferred into larger quarters in Industrial Park, thereby consolidating several warehouses. Reading's Fun is remodeling 101 N. Main. Medical Resources International, expanding due to a merger with Rehab Visions of Omaha, moved into the former Surya Building on Pleasant Plain Road. And Bovard Studios moved to bigger facilities on W. Grimes.

Safety First

Not surprisingly, few empty buildings are left in Fairfield to be rented or purchased for office space. However, Jim Horace of Fairfield Real Estate says that dwindling office space applies healthy pressure on strong businesses to erect new buildings or additions. Gladys Pasch of Lefty's counters, "Yes, but it's good to be cautious. We've all read about cities that over-built and now have vacant office buildings, and lost investment."

Fairfield doesn't appear to be anywhere near that hazard at this time, for several reasons. For one thing, according to Mayor Rasmussen, orderly growth is a top priority to the city council, from protecting quality of life with zoning to helping companies buy lots through Fairfield's Economic Development Association. Secondly, the companies that are building or leasing new buildings seem to have reached a level of stability that should keep their buildings filled for years to come. Finally, no developers are building office space without the assurance of leaseholders before groundbreaking.

One Fairfield Developer's Story

Doug Greenfield, the only active developer of new office space at this time, is a case in point. He says, "I won't build unless I have complete assurance of leasing every space in my building."

A man who you'd think wouldn't need to keep his day job--Doug manages Danaher Oil--also constructs large office buildings as a hobby. So far, he's built the Vital Images building on 4th Street, the Katie RAM building on 3rd, The Mansion on Highway 1 North, and currently the Amy RAM building on 4th.

Doug keeps building partly because of demand. He says he has had over forty requests for space in the existing Katie RAM building, and that he entirely leased the new Amy RAM building "before the sheetrock was up or the shingles on the roof."

But Doug gives primary credit for the success of his buildings and his commitment to build more to the ancient Vedic science of architecture, introduced by Maharishi Mahesh Yogi, called Sthapatya Veda. This science of architecture, described in detail in another article in this issue, prescribes exact mathematical measurements for each aspect of the building as well as placement in relation to the sun. "After seeing the results of the Katie RAM building, both in terms of demand and an unusually high level of tenant satisfaction, frankly, " Doug says, "I've reached the point where I won't build according to any other principles."

Most of the prospective tenants who approached Doug for space in the Amy RAM building were non-meditating executives of local companies. Doug typically gave them a short talk on the principles of Sthapatya Veda and then showed them through Katie RAM, the first structure he built using this science. According to Doug, the executives of Sterling Software, for example, who will take two floors in the Amy RAM building, simply said, "This is what we want for our company."

When non-meditating executives visit the Katie RAM building, perhaps expecting photos of deities and wafting incense, Doug says they see instead its simple, dignified beauty, its quiet and light, and its familiar American styling. "Many have told me they feel both at home and somehow better in this building," says Doug.

When asked if these executives actually believe that building in accordance with the laws of nature that underlie architecture will "increase their wealth, clarify their thinking and speech, attract outside companies, and improve the health and mental ease of their employees," Doug says it doesn't really matter, because they will reap these benefits whether they believe in them or not. "Even the tradesmen working on the Amy RAM building feel the effects of coherence. You wouldn't believe how many of them tell me this job seems easier than other projects."

The demand for space in the Katie RAM building, and now the Amy RAM building, has increased the pressure on Doug to build more Sthapatya Vedic commercial buildings and even residences for a variety of income levels. Doug relishes the job, and is already under contract to build office space for two local companies, one of which he's currently inviting investors to join for an 18% return. Because he can no longer find sites within the city that meet Sthapatya Vedic placement requirements, most of Doug's future buildings will probably be erected in or near the Mandala projects on Highway 1 North. "But Fairfield will always remain the center of commerce," Doug says.

A Parting Thought From the Mayor

For his part, Mayor Rasmussen feels good about the growth exploding on the north side of town. "There are details of infrastructure to work out, and whether to annex that section of the county into the city," the Mayor says, "but Fairfield is fortunate to have strong, expanding businesses in the service area, rather than in some types of manufacturing whose waste products present huge challenges for a community."

With one hand on the doorknob, primed to dash to his next meeting, Mayor Rasmussen offered a last thought, "You know, there are more people being born in Fairfield than are dying here."

Was he suggesting that overpopulation is yet another challenge Fairfield faces? "No, no," the Mayor said. "During my tenure I've watched the nearby town of Washington become a retirement community. And it's happened to so many small towns. They can't attract young people or keep their own. We're lucky to have a youthful, creative population."

So, for now, let's take the cement mixer and run with it.

October '96 Front Page