(San Antonio, TX) June 26, 2017 – Today, CPS Energy’s Board of Trustees approved the Company’s selection of Sundt as its Construction Manager at Risk (CMAR). The CMAR will lead the construction activities on CPS Energy’s future headquarters that is currently being renovated in the central downtown business district.
“We are anxious to become part of the Broadway corridor transformation, knowing that we will contribute significantly to its economic growth,” said President & CEO Paula Gold-Williams. “Approximately 1,200 of our employees will be based at our new headquarters. They will buy meals at local eateries and patronize nearby shops, helping to draw more businesses to the revitalized corridor.”
Hiring the CMAR will allow exterior demolition to get underway. Using a CMAR streamlines the construction process and provides the best opportunity to keep the project on time and within budget. Sundt will work closely with a team that will include key CPS Energy designees and two other experienced real estate development companies, Corgan Associates and Patrinely Group.
“More importantly, with a CMAR approach, the financial risks are retained by the construction manager. The CMAR works from a negotiated and Guaranteed Maximum Price,” said John Benedict, vice president of real estate & master planning. “That ensures the defined renovation does not go over budget. If it does, as the term implies, the construction manager takes on the risk, which protects our customers.”
Once the project is complete, CPS Energy will sell its current downtown complex and move to a location that is further up the river. The sale will help cover the cost of renovating the newly-acquired property. Moving forward, maintenance costs being poured into the current buildings will transition into savings over the long term.
“All the way around, this is a winning proposition. We are the largest local riverfront property owner with more than 800 linear feet of real estate on the river. Selling this property will create new opportunities for our city that will enhance business and lifestyles along the River Walk and will result in us getting more square footage at a better value per square foot,” said Benedict.
“It’s rare that you’re able to work with an organization that has a business philosophy so closely aligned to your own. Sundt is committed to using local and diverse sub-contractors. We are also very pleased because Sundt places a critically high priority on safety, just as we do,” said Gold-Williams.
Next steps are to determine the Guaranteed Maximum Price (GMP). The CPS Energy leadership team will then return to the Board of Trustees to request approval to have the headquarters built for the agreed upon GMP. The CMAR will then be issued a notice to proceed. At that point, Sundt will begin the construction project that is currently projected to be completed by the spring of 2020.
For previous news releases on this topic, visit CPS Energy’s newsroom. Search ‘headquarters.’
CPS Energy is celebrating its 75th year of City of San Antonio ownership. Established in 1860, we are the nation’s largest municipally owned natural gas and electric company, providing safe and affordable service to 804,000 electric and 343,000 natural gas customers in Greater San Antonio. With our AA+ credit rating, one of the best in the industry, we offer best in class reliability and some of the lowest rates among the top 10 largest U.S. cities. We recognize our role as a community partner and are continuously focused on job creation, economic development and educational investment. Powered by our people, our investment in the community is demonstrated through our employees’ generosity in giving $1.1 million to United Way. We are also committed to investing in clean energy. CPS Energy is among the top public power wind energy buyers in the nation and number one in Texas for solar generation. For more information, visit newsroom.cpsenergy.com.