1170

T R E N D L I N E S W W W . T H E Z W E I G L E T T E R . C O M O c t o b e r 3 , 2 0 1 6 , I s s u e 1 1 7 0

Base salaries

Fourth quarter push “We’re still in 2016 and we need to finish the year on a

W e’re down to the fourth quarter. It’s either been your best year ever – in which case you want it to end up as such – or it hasn’t been – and you have to make something happen. Either way, we all need a good fourth quarter. But just because we need it there’s no assurance it’ll happen. We have to do something. We have to act. Here are my thoughts: 1)Take stock of where you think you’ll end up right now. That means you may need to get all of your managers to revise their revenue and sales projections. Hell, you should be do- ing this every month (at a minimum), already! Make sure you aren’t deluding yourself about how great things are because that self-delusion can encourage procrastination – never a good thing. 2)Figure out the easiest sales and the easiest ways to hit your revenue goals. Usually the easiest sales are sales of new work to existing clients. So get out and see ALL of them. And if you cannot see them, at least call them. As far as increasing revenue goes, the easiest way to increase it is accelerate schedules and put out extra effort. When things start to slow down people tend to slow down. You need to do the opposite. You need to accelerate your current jobs. Have a good fourth quarter. Put more heat on to get NEW work sooner rather than later. 3)Take a hard look at your labor costs. What can be cut? During good times costs tend to go up. Hiring gets out of control. Too many over- head people get added. And tolerance for non- performance/less than high output goes up, too, because something is better than nothing. Look hard at your labor. It’s the number one

F I R M I N D E X Balfour Beatty.........................................2 Christian de Portzamparc........................7 Don J Clark Group..................................9 Gensler.................................................10 Jean Nouvel............................................7 Rafael Vinoly. ..........................................7 Robert A.M. Stern...................................7 RPS Klotz Associates, Inc.......................3 SHoP Architects......................................7 The average base salary of respondents in the 2016 Principals, Partners and Owners Survey was $139,073. The average bonus as a percent of base salary was 22 percent and the average shareholder profit distribution was 28 percent of the base salary. While the average base salary is down from a year ago, the percent of base as bonus and shareholder profit distribution rose year over year. (Special discount to TZL subscribers: Use code TZL15OFFSURVEY to order this survey at 15 percent off on zweiggroup. myshopify.com/collections/frontpage)

Mark Zweig

high note. Let’s make this fourth and final quarter one we can all be proud of!”

MORE COLUMNS xz GUEST SPEAKER: One and the other Page 5 xz FROM THE CHAIRMAN: Reno reboot Page 9 xz CONSULTANT’S CORNER: Live and learn Page 11

See MARK ZWEIG, page 2

Page 6 Billionaire’s Row

Page 3 Constructively dissatisfied

T H E V O I C E O F R E A S O N F O R A / E / P & E N V I R O N M E N TA L C O N S U L T I N G F I R M S

BUSINESS NEWS BALFOUR BEATTY AWARDED $196 MILLION NORTH BLOCK AT CAPITOL CROSSING CONTRACT Property Group Partners has selected Balfour Beatty to build the North Block phase of its Capitol Crossing development that will span a three- block elevated deck over I-395 in the heart of Washington, D.C. The 2.2 million-square-foot, mixed-use Capitol Crossing development is transforming a seven-acre site into a distinctive cityscape that will reunite the District’s East End and Capitol Hill neighborhoods. An internationally recognized firm, Property Group Partners is a premier developer with active projects in Washington, New York and London. With over 12 years of history working together in the District, Property Group Partners and Balfour Beatty previously partnered to build the third building at Station Place, the 1.6-million-square-foot development connected to Union Station, and the 16-story 1101 New York Avenue Class A office building. Capitol Crossing’s North Block phase includes the construction of two 12-story, mixed-use office buildings that will be connected by a glass connector bridge and total 960,000 square feet. With 70,000 square feet of world class retail space connected by lush garden promenades, Capitol Crossing ultimately will include more than 1,100 parking spaces and 440 bicycle parking spaces. “Property Group Partners has a strong belief in reimagining cityscapes and revitalizing neighborhoods through sustainable building and innovative engineering,” said Leon Blondin, president of Balfour Beatty’s mid-Atlantic division. “We’re honored to be their construction partner in building this truly historic development in the downtown core that will reconnect long- divided Capitol Hill to the East End. Having already managed the preconstruction, utility

relocation and platform construction phases, it’s very gratifying to continue our work to take this project vertical and deliver its first two mixed- use buildings.” Work is scheduled to first begin on the building located at 200 Massachusetts Avenue, which will include 25,000 square feet of ground-level retail and 410,000 square feet of mixed-use space. Construction of the second building at 250 Massachusetts Avenue will follow shortly thereafter. Capitol Crossing will offer Washington’s newest and most energy-efficient office environment with plans to exceed the LEED Certified Platinum criteria, making it the first Eco- District in the nation’s capital. Among its many environmental features will include the innovative use of EcoChimneys made of large plants to filter garage exhaust. The project will also include rooftop green areas and water recapture systems combined with a cogeneration plant to generate electricity and heat at the same time. Balfour Beatty will leverage the latest technologies and lean construction methods to achieve Capitol Crossing’s progressive environmental design. Technologies will include building information modelling software, GPS equipment to locate work elements such as electrical components in pre-cast concrete, and RFID chips in hardhats for workforce tracking and safety. At peak the project will employ a team of 350. The Capitol Crossing development adds to Balfour Beatty’s U.S. portfolio of innovative, sustainable, and modernized commercial office spaces.

1200 North College Ave. Fayetteville, AR 72703 Mark Zweig | Publisher mzweig@zweiggroup.com Richard Massey | Managing Editor rmassey@zweiggroup.com Christina Zweig | Contributing Editor christinaz@zweiggroup.com Sara Parkman | Editor and Designer sparkman@zweiggroup.com Liisa Andreassen | Correspondent landreassen@zweiggroup.com Tel: 800-466-6275 Fax: 800-842-1560 Email: info@zweiggroup.com Online: www.thezweigletter.com Twitter: twitter.com/zweigletter Blog: blog.zweiggroup.com

MARK ZWEIG, from page 1

cost. And I have never been in a company where we didn’t see labor that could/should be cut. 4)Look at ALL of your costs. IT costs can easily spiral out of control as everything is changing so rapidly. You may not need all of those Rackspace servers or software licens- es that you once had to have. And what about special “sweetheart” rent deals to one or a few principals where rent rates paid by the company are 40 percent too high? Or special leasing companies that add costs needlessly and allow one or a few older owners to take more money out of the company without paying taxes on it? These things need to be confronted because you cannot afford to carry any more costs than necessary. 5)Start looking ahead to NEXT year. What is going to happen in 2017 is largely deter- mined by what’s happening now. Do your planning now, before the new year starts, so when the year DOES start you aren’t playing catch-up. Get those plans done early and out to everyone so they can see the path to success and greatness in 2017 and beyond. Don’t assume that everyone is inspired and can see the opportunity like you can. They all may need some help – and the business plan is a big part of that. So 2017 – believe it or not – is nearly here. But it isn’t here yet. We’re still in 2016 and we need to finish the year on a high note. Let’s make this fourth and final quarter one we can all be proud of! MARK ZWEIG is Zweig Group’s founder and CEO. Contact him at mzweig@zweiggroup.com.

Published continuously since 1992 by Zweig Group, Fayetteville, Arkansas, USA. ISSN 1068-1310. Issued weekly (48 issues/yr.). $475 for one-year subscription, $775 for two-year subscription. Article reprints: For high-quality reprints, including Eprints and NXTprints, please contact The YGS Group at 717-399- 1900, ext. 139, or email TheZweigLetter@ TheYGSGroup.com. © Copyright 2016, Zweig Group. All rights reserved.

THE ZWEIG LETTER October 3, 2016, ISSUE 1170

P R O F I L E

Birnamwood Drive in Harris County, Texas. It was the first county project to use low impact design criteria. RPS Klotz Associates took the standard county boulevard and replaced the storm sewer with a bio-swale. The project uses native plants to improve water quality, and the total project cost was reduced. / RPS Klotz Associates, Inc.

Constructively dissatisfied The Klotz firm is reaping national accolades for its growth and its workplace, but since a firm never arrives, the quest for excellence never ends.

A CONVERSATION WITH KLOTZ. The Zweig Letter: How have you seen the firm evolve since its founding? D. Wayne Klotz: We have maintained our core val- ues throughout our history. Significant changes fit into two categories: 1)Client expectations. Clients now expect us to have all technical and electronic capabilities. I remember when having CADD was an advantage. They also expect us to have an understanding of their financial limitations and the desires of many stakeholders. We have had to become more efficient as we deliver more and more services. 2)Employee needs. The desires of our employees have changed dramatically. When we began, the work- force was primarily WWII and baby boomer genera- tions. Today, the boomers are stepping off the stage, and millennials now are the largest generation in the workforce. Millennials have much different job and lifestyle preferences. We have adapted our workplace See Q&A, page 4

By LIISA ANDREASSEN Correspondent M aintaining the status quo is not an option for D. Wayne Klotz, president of RPS Klotz As- sociates, Inc. , (#32 Best Firm Civil and #43 Hot Firm for 2016) a 165-person, full-service civil en- gineering firm based in Houston. “Any organization that does not evolve dies,” he says. Klotz is a man of his word. He continues to try new things and to seek new connections. If you want proof, check out the news section of the firm’s web- site. Promotions and key hire after key hire. Klotz’s CV paints the portrait of a man deeply en- gaged with his community. Among the long list of accomplishments are scholarship foundations at two universities, an appointment by the mayor of Houston to the Coastal Water Authority Board of Directors, and service on the Community Resil- ience Task Force for the Department of Homeland Security.

Wayne Klotz, President, RPS Klotz As- sociates, Inc.

THE ZWEIG LETTER October 3, 2016, ISSUE 1170

Q&A, from page 3

details became county standards. I am proud of this proj- ect because we demonstrated that infrastructure can be de- signed to be more sustainable without increasing the costs. TZL: How have you helped your firm to outperform some competitors? What do you feel sets you apart? DWK: We outperform some of our competitors because we set high goals and trust our people to meet them. We have excellent business systems that allow our managers to stay on top of their projects. We focus on things that matter, and we do not let small things distract us. One area that sets us apart is that we give equal importance to marketing in our business planning and budgeting. “We outperform some of our competitors because we set high goals and trust our people to meet them. We have excellent business systems that allow our managers to stay on top of their projects. We focus on things that matter, and we do not let small things distract us.” TZL: Are you married? Children? DWK: I’ve been married for 42 years. We have four adult children and seven grandchildren. TZL: What’s one thing most people at the firm don’t know about you? DWK: I once sang in the White House for President Rich- ard Nixon. TZL: Best vacation spot? Dream destination? DWK: Hawaii. My dream destination is wherever our next trip takes us. TZL: What’s the last book you read? DWK: Gathering Prey by John Sandford. TZL: What’s the last movie you saw? DWK: Jason Bourne . TZL: What’s the best piece of work-related advice you’ve ever gotten? DWK: Fix problems from the top down. TZL: Is there a leader you really admire? Why? DWK: Coach John Wooden because he accomplished his goals while building people up instead of using them up. TZL: When you’re not working, what types of activities do you enjoy? DWK: Family time, reading good books, travel, and golf. TZL: What’s your favorite lunch? DWK: Good Texas barbeque.

to accommodate the needs of all of our staff. In fact, we have won multiple local and national awards as a flexible workplace and best place to work. TZL: What do you feel the key strengths are for an effec- tive leader? DWK: An effective leader must possess a number of strengths. Integrity tops the list. You cannot lead if people do not trust you to do the right thing – no matter the con- sequences. A leader must also possess a vision and the abil- ity to articulate it and to be able to get people to go to a place they never even imagined. People want to be a part of something bigger than themselves. A leader must be a good communicator. He/she must be able to articulate their vi- sion and expectations in a manner understood by all. People want to do a good job, and a good leader can tell them how to achieve their personal goals. A leader must be a good del- egator. They should identify the best skills of their people, put them in a place of authority with adequate resources, and then allow them to do the job the best way they choose. TZL: How would you describe your leadership style? DWK: I was once described as being “constructively dissat- isfied.” That description works for my style. I set high stan- dards because I believe our people aspire to excellence. No organization ever “arrives.” We can always find room for im- provement. The key is to celebrate success along the way. We celebrate reaching goals and milestones, yet we know that we can achieve higher goals down the line. TZL: To date, what has been your greatest challenge and how did you deal with it? DWK: Growing companies need to hire people at all lev- els of the organization. My greatest challenge has been to find new managers who fit into our culture and then to as- similate them. If you’re not careful, you can end up with a hodgepodge of cultures from multiple sources. TZL: What is your vision for the future of Klotz? DWK: I still want our firm to be the best company in our markets. We do not aspire to be the biggest. Our focus re- mains on excellence for clients and staff. “An effective leader must possess a number of strengths. Integrity tops the list. You cannot lead if people do not trust you to do the right thing – no matter the consequences.” TZL: Tell me about a recent project you are especially proud of and why. DWK: Birnamwood Drive is the first project in Harris Coun- ty to use low impact design criteria. We took the standard county boulevard and replaced the storm sewer with a bio- swale. The project uses native plants to improve water qual- ity, and the total project cost was reduced. Many of our

THE ZWEIG LETTER October 3, 2016, ISSUE 1170

O P I N I O N

One and the other Project needs and client needs are two different things. If you want to win more work, figure out the human side of the equation and you’ll be rewarded.

A EC firms often approach proposals and interviews with military-type shock and awe: “We’ve done this type of project dozens of times. We’re the most qualified – and the best value.”

identify the client’s need as something generic, such as finishing within budget. That’s important – but it’s a project need. To find the client need, we add the phrase “… so that,” followed by the phrase(s) required to finish the statement: “We will finish the school within budget … so that the school district doesn’t have to ask taxpayers for more money … so that when the next levy comes along, voters won’t be thinking about that school costing more than planned … so that we can maintain our trusted position within the community for years to come.” The farther you take the “… so that,” the closer you get to the real client needs. AFTER THE RIBBON CUTTING. A team we coached for an expansion project believed the client need was “getting the building done on time.” Well, it wasn’t

However, selection panels are trying to answer the question: Who do they want to work with for the project duration? As one public works director said: “We’re getting married to these people for three years!” Selection panel members tell us that AEC firms often try to answer this question with some combination of: 1) “We’re passionate about this project.”

Scott Johnston

2) “We’re really great to work with.” 3) “This is a big opportunity for us.”

PROJECT NEED VERSUS CLIENT NEED. The path to being the firm a potential client wants to work with starts with understanding the client’s needs. No surprise there, but the client’s needs are probably not what you think. When JTG helps teams develop propos- als and prepare for interviews, the teams often

See SCOTT JOHNSTON, page 8

THE ZWEIG LETTER October 3, 2016, ISSUE 1170

Man

P R O F I L E

The blue-gray buildings in this graphic represent supertalls, and ordinary skyscrapers, either under construction or proposed for New York City. Notice the cluster just south of Central Park, in the area known as Billionaire’s Row. / Courtesy, CITYREALTY

Billionaire’s Row The towers just south of Central Park are supertall and eye popping, but as sales taper off, and as opposition to them grows, a hush envelopes the design community.

quashed. The bill, initiated by Mayor Bill de Blasio for affordable housing, would have uncapped the floor area ratio, or FAR, that regulates the bulk and density of buildings in New York City. According to New York Sen. Liz Krueger, the bill needs “further vetting and amending to remove the potential for unchecked growth in the neighborhoods already strained by new luxury developments and towers.” But a few of the supertalls are already finished, and a few more – including 111 West 57th Street, set to be one of the tallest in the Western Hemisphere – “There are a lot of powers at work here, and by powers, I mean money, collaborative opportunity, and politics … none of the large NYC firms want to touch this [story] – I can’t blame them.”

By RICHARD MASSEY Managing Editor

A t least publicly, no one in the design world re- ally wants to talk about Billionaire’s Row, the band of supertalls in various stages of development on and around 57th Street in Midtown Manhattan. For all the ingenuity and expertise that went into these buildings – 432 Park Avenue, for example, is only 93 feet wide but an astounding 1,393 feet tall – they are not necessarily welcome additions to one of the world’s great skylines. Instead, they are polarizing, caught in a soften- ing market, and for many observers, nothing more than outsized, de facto safety deposit boxes for the international super rich. Rising from the ashes of the Great Recession, in an era of tight credit and big cash, Billionaire’s Row is a trend in New York real estate that many would like to see fizzle out.

Jonathan Miller, Presi- dent and CEO, Miller Samuel Inc.

Indeed, in June, New York Assembly Bill 7807 was

THE ZWEIG LETTER Octo

nhattan

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432 Park Avenue – one of Manhattan’s first supertall, super skinny towers – rises above the Midtown Manhattan skyline.

are on the way, and not just along Billionaire’s Row. And the names that are involved with supertalls are among the most recognizable in the industry: Vornado Realty Trust, Hines, Goldman Sachs, and JDS Development Group, among oth- ers. The big question is, with this cluster of supertalls changing the game on the ground and in the air, what happens next? “That’s what everyone is trying to get their arms around,” says Jonathan Miller, president and CEO of Miller Samuel Inc., a Manhattan-based appraisal and consulting firm. Miller, a veteran of the New York real estate scene for 30 years, was the only person who agreed to speak with The Zweig Letter about Billionaire’s Row. “I love that the skyline is changing” he says. “I’ve lived here since the mid ‘80s and I like it. But it’s polarizing. It’s mixed interpretations. There are extreme views. It’s a New York characteristic.” Two professors, multiple architects and design firms, and one real estate company, either declined a request for an interview or did not even respond to a request for an in- terview. One respondent, however, who did not want to be named, said this about the supertalls cropping up south of Central Park: “There are a lot of powers at work here, and by powers, I mean money, collaborative opportunity, and poli- tics … none of the large NYC firms want to touch this [story] – I can’t blame them.”

Those comments weren’t hyperbolic. The numbers around the supertalls, and Manhattan condominiums in general, are astronomic. CITYREALTY, in its Manhattan New De- velopment Report issued in June, provided a summary of the industry. Using its metrics, CITYREALTY estimates that borrough wide, there will be about $30 billion in condo sales through 2019, and that 92 condo projects with about 8,000 new units are under construction or proposed. Billionaire’s Row, of course, does not fit the typical mold, as evidenced by the persistent rumor that a penthouse at 220 Central Park South is under contract for $250 million – even by New York standards, a phenomenal number. “We ended up building the world’s most expensive safety deposit boxes. You put your belongings there and rarely visit.” Designed by brand names like Robert A.M. Stern , SHoP Architects , Rafael Vinoly , Jean Nouvel , and Christian de Portzamparc , the skyscrapers of Billionaire’s Row are mar- vels of the modern world with every possible finish and amenity. But with such a narrow target market – foreign in- vestors looking for a safe place to stash their cash – they are detached from the world over which they tower.

Miller explains: “We ended up building the world’s most

See BILLIONAIRE’S ROW, page 8

ober 3, 2016, ISSUE 1170

SCOTT JOHNSTON, from page 5

“There’s not too many [condos] for sales, there’s too much for sale at too high a price,” Miller says. “What we’re build- ing doesn’t match demand. I think there was an assumption there was an infinite source of demand.” “There’s not too many [condos] for sales, there’s too much for sale at too high a price. What we’re building doesn’t match demand. I think there was an assumption there was an infinite source of demand.” While the fate of Billionaire’s Rowmight be uncertain, there are no doubts about the submarket beneath the ultra-luxu- ry price point. That is, sales of units priced between $1 mil- lion and $3 million. “That’s currently the sweet spot,” Miller says. ❚ ❚ What is the result? The best stories have great endings, and by now you know it’s not that the project was completed on time or within budget. The ending is the resolution of the “… so that” statement. A story about the hospital expansion proj- ect above could read: “After the (name of hospital) wing re- opened on time, patients were able to receive the leading-edge care that was critical to successful cancer treatment. In the first year after reopening, (X) patients were treated, including (name and picture of patient featured on hospital’s website). The defining and differentiating details are easy to find when who, what, why, and how are answered. BE A WINGMAN, NOT A SALESMAN. Finding your client’s “… so that” and demonstrating the processes your team will use to cre- ate results for the client will make you a valued partner. And when the selection panel asks, “Who do we want to work with?” – the answer will be you! SCOTT JOHNSTON is a principal strategist and facilitator at Johnston Training Group. He can be reached at scott@jtgroup.com started, and what are the consequences of it not being com- pleted as planned? The projects AEC firms design, build, and improve contribute to the economic growth of communities and the quality of life for those who live there. Demonstrate that you understand the stakes and how a project affects the neighborhood as a whole. Think of your client’s clients. ❚ ❚ How? Successful teams have worked diligently to perfect their methods for communication, for providing design op- tions, and for using technology. They have used internal critiques to glean information, talked with clients, and other experts. Yet, in interviews, team members tend to gloss over the step-by-step processes because they do it every day – it’s ordinary to them. Selection panels tell us, however, that evaluating these pro- cesses is how they differentiate firms that are equal in other areas. Again, details are key. For example, your firm doesn’t just get all the parties together, talk it over, and decide. You have a four-step process – explore, analyze, decide, and ex- ecute. The steps are sewn into your proposal and woven into your answers during the interview.

just a building – it was a hospital. And it wasn’t just a hospital – it was a leading cancer care facility in the North- west. After adding “… so that” a few times, the team concluded that getting the facility done on time meant so much more. It meant that people who had advanced cancer would be able to receive life-saving treatment without having to travel – a critical component to successful outcomes. The team inserted specific examples in the proposal on how they could shave time off the schedule, such as pre- constructed modules for the treatment rooms. In the interview the team connected every process and project phase with getting the treatment wing open so that the treatment center could help people/save lives/fulfill the mission of the hospital. In the interview, they spoke to the client need, not just the project need. The team won the project. HOW DO WE FIND THE “… SO THAT”? To make your potential client sit up and take notice, put on your journalist hat and ask yourself these questions: ❚ ❚ Who? Think about the people who will live/work/study/play/ drive in or on whatever you’re designing, building, or improv- ing. And make them real: Not “the school” – instead, “The principal who takes the parent’s calls about their child’s safety …” not, “The shoppers at the mall .…” Instead, “Martha Jones, who is picking up a gift after work and needs to get to child care on time .…” A specific example with real names is more powerful than a paragraph of generality in a proposal and interview. ❚ ❚ Where? Apply the same level of specificity to the location and help the reader paint a memorable picture in their head. It’s not just “a school next to a busy street;” it’s “a school next to Second Avenue, which has had 12 accidents in the past six years – a school that will continue to grow in use when the new development two miles to the south is complete in 2018. Thus, safety will be critical .…” This example shows how much your team knows and is much stronger than the generic, “We know this area well.” ❚ ❚ Why? Every good story has suspense. Why was the project

BILLIONAIRE’S ROW, from page 7

expensive safety deposit boxes. You put your belongings there and rarely visit.” For an international investor, there’s plenty to fear in the global market: a recent coup attempt in Turkey; Brexit; the economic decline and recent impeachment of President Dilma Rousseff in Brazil; the ongoing oil slump; bombas- tic North Korea; and a sluggish economy in China. At least for some, investing in a supertall with breathtaking views of Central Park is a safe bet. But for the United States, and in essence for the entire world, a profound question looms – who wins the presidential election, Donald Trump or Hill- ary Clinton? As the world continues to turn, the supertall market might have already peaked. Sales are not as brisk as they once were, and pricing is being negotiated downward as the New York press chronicles the decline.

THE ZWEIG LETTER October 3, 2016, ISSUE 1170

O P I N I O N

A massive redevelopment along West 2nd Street in Reno, Nevada, will be a showcase for design, personnel, and financing.

Reno reboot Complex redevelopment of a blighted area prompts team to be creative across the board – design, personnel, technology, and funding.

W hile having a glass of wine with colleagues from New York, we reflected on the scale and complexity of the projects each of us has underway today. These are exciting times in the design professions, as many of the cities in which we are working were built out a long time ago, leading to redevelopment, often in severely blighted areas.

Ed Friedrichs

As an architect, funding was always the developer’s problem. The only way it affected me and my firm was that we frequently found ourselves being used for free financing for the developer through our unpaid invoices for service. Don and Susan Clark of the Don J Clark Group , the developer of the District, invited me to “play” with them about a year and a half ago. They have been incredibly responsible as developer/ architects, seeking local investors to help us with cash flow to pay our bills until the major funding was in place. Since we knew this would take a considerable amount of time, and as I came to know the Clarks’ ambitions for the project – to truly become an exemplar for how development could be done, to be environmentally and socially responsible, and to reduce the cost of ownership and occupancy for the people and companies for whom we’re building West 2nd District – it became apparent that we needed a world-class team to guide design,

Many redevelopment agencies and districts around the country have exceeded their bonding capacity, making it impossible to bond against future tax revenues to fund needed infrastructure necessary to move beyond blight. We certainly have that problem in Reno. The site we’re developing, West Second District, is seven large city blocks comprising 17 acres. Some parcels are vacant, and several properties hold run-down weekly motels filled with traditionally disenfranchised people, who are also burdened by, in some properties, a criminal element. There’s an old Greyhound bus station, the toilet rooms of which have become a haven for the homeless, and a former printing plant, currently owned and used by the University of Nevada for continuing education programs. First, we’re securing enough investment capital to fund the purchase of the land and for working capital as we begin construction. Properties are being acquired, and we expect to start construction on our first building within weeks.

See ED FRIEDRICHS, page 10

THE ZWEIG LETTER October 3, 2016, ISSUE 1170

Google Earth

Image courtesy of Cathexes Architecture, LLC

The W. 2nd Street Project in Reno will redevelop a grungy part of town, home to places like the 7-11 Motor Lodge and the Castaway Inn. The new development will feature office, residential, and leisure spaces in what could turn out to be a $1B-plus development.

ED FRIEDRICHS, from page 9

months. By diverting water back into the Truckee River in the winter and by not using the city’s sewer system except in emergencies, we’ll further reduce the costs for our residents. ❚ ❚ Parking structure design to accommodate future use. We’ll be over-parked during the early phases of West 2nd because Reno today is heavily auto-dependent. But by building flat floors in our centralized parking structures, we’ll be able to take floors off line as autonomous vehicles become the norm a few years out, converting them to hydroponic gardens. Since we’ll have many restaurants in the district, we will have the shortest possible “farm-to-table” distance to traverse. ❚ ❚ Resilient structural systems. Since we’re located in a highly seismically active area, we’ve worked with a renowned seismic structural engineer, using their “performance-based-design” technology. We have a wonderful seismic department at the university and, together, we’ve worked closely with the head of the building department to gain approval of this non-codi- fied approach to structural design. Many other innovative programs are emerging, simply because the design and engineering teams have had the opportunity to work together as a collaborative body as we’ve planned and financed the project. We’ve been able to explore economic tradeoffs during this period, resulting in a much stronger financial performance for the project. The response from our investors to our thoroughness, creativity, and working process has been extremely positive. I’ve been in this business for a long, long time and I’ve never seen such a remarkable response. Talking about this with my colleagues from New York confirms they’re having similar experiences. My advice is to embrace projects of grand scale and enormous complexity. Do this with a collaborative team of complementary professionals – architects, engineers, and contractors. Get them on board before all is set in stone with the city so you can draw city staff into the creative process. See if it doesn’t bring out your own creativity and that of each of the team members. EDWARD FRIEDRICHS, FAIA, FIIDA, is a consultant with Zweig Group and the former CEO and president of Gensler . Contact him at efriedrichs@zweiggroup.com.

particularly in our infrastructure, a process that normally begins after the developer already has city approval and funding in place. Rarely is this process very creative. I’m fortunate to have worked with some of the most innovative engineers and consultants in the world, so I came forth with my Rolodex to help. Before long, we had assembled a team that could successfully execute a project of this scale and complexity anywhere in the world. But we did it in a rather unique fashion. Those who were located in Reno but had offices elsewhere in the country or the world were required to bring their best and brightest, no matter where they resided, to work with us. If they had no office in Reno, they were asked to establish one, which would be located in our building, allowing all of us to work as a collaborative team under one roof. It also offered an opportunity for local engineers to learn from professionals who were leaders in their field, thus spreading the innovative approaches to infrastructure to local professionals. This approach resulted in a level of complexity and challenge that has generated some fascinating creativity as we designed the approach to our infrastructure. Since we’re paying for it until the city is able to reimburse us many years from now, we’re determined to do it well. Here are some examples: ❚ ❚ A central plant to provide heating and cooling water through- out the district. Instead of a boiler, a chiller, and a cooling tower on each building, we’re building a central utility plant that will save us and our residents 30 percent in utility costs compared to constructing one building at a time, through economies of scale and efficiency. ❚ ❚ An on-site waste treatment plant. We’re in a desert climate. By treating all sewer waste through a biological filtering process, we’ll use only 50 percent of the water that a conven- tional, one-building-at-a-time approach would use. So, we reduce the cost and use of water for our tenants and owners. We’ll use all of the treated water for toilets, irrigation, and our cooling towers during the summer and most of it in winter

THE ZWEIG LETTER October 3, 2016, ISSUE 1170

O P I N I O N

T he mentoring partnership is an agreement between two people to share experiences and expertise to help with the personal and professional growth of the person being mentored. Live and learn Mentorships are supposed to be two-way streets, so when you consider your program, make sure you make the right connections.

Though supervisors obviously mentor their supervisees, this is not what we’re talking about here. In a formal mentorship program, the pairings are outside of the traditional supervisory relationship so that the employee is assured that whatever s/he brings up will not affect her or his performance evaluation. If possible, the partnership should be separate from the chain of command to ensure an open and honest dialogue. It works best if there are at “Mentors must be willing to spend time with the mentee to develop a good working relationship that is trusting and honest.”

least two grade levels between them, but can also be comprised of folks who are at the same grade level and even a veteran employee whose status is below the mentee’s, if the discussion is focused on specific areas of expertise that are held by an employee at any level. What does it mean to be a mentor? 1) Mentors need to have the desire to share what they have learned during their careers. 2) Mentors must be willing to spend time with the mentee to develop a good working relationship that is trusting and honest. 3) Good mentors must be able to offer a reality check when necessary. 4)They must be willing to work with the mentee to

Gerri King CONSULTANT’S CORNER

See GERRI KING, page 12

THE ZWEIG LETTER October 3, 2016, ISSUE 1170

another and the conversation helps move him or her forward. 2) Situational mentoring is usually short-lived and happens for a specific purpose because something has come up that re- quires consultation. 3) Supervisory mentoring is that gained from one’s supervisor. It is very important, but there are some drawbacks: ❚ ❚ The supervisor may not be a “subject matter expert” in the topic at hand. ❚ ❚ Supervisors are often very busy and they may not be able to devote equal time to all supervisees. ❚ ❚ Some people are not comfortable exhibiting vulnerabilities in front of their supervisors for fear that it will negatively affect their performance evaluations. 4) Formal mentorship is the focus of this article. Reviewing the mentoring relationship: 1) Plan to commit to a one-year partnership. It takes a while to develop the trust and rapport necessary to begin working on identifying goals and an action plan to achieve them. 2) Plan to discuss a “no-fault” termination clause, in which ei- ther party can back out if it’s not working for her or him. 3) Plan to have a six-month check-in to evaluate how it’s evolv- ing for each person. 4) Monitor the necessary training needs that emerge and make them happen on a systemic level. The most knowledgeable people are not necessarily the most communicative. Mentorship training programs help to discover who is best suited to the role and will provide them the techniques and skills to fulfill the requirements. It also should include a thoughtful process of how best to pair mentors and mentees. GERRI KING, Ph.D., is a founding partner and president of Human Dynamics Associates Inc., in Concord, New Hampshire. For more information, visit gerriking.com. “Mentors can help the mentee figure out what they need to do to fill in the gaps between where they are now and where they want to be in the future.” “Everyone is ultimately responsible for her or his own career, but it can be very helpful to have someone to talk to who can provide a listening ear and share what has helped him or her over the years.”

GERRI KING, from page 9

develop an Individual Career Development Plan in order for her or him to achieve short and long term goals. 5)This is the tough one: they should be willing to share their failures as well as their successes. It is sometimes said that the benefit of a mentoring relationship is to help someone learn from mistakes without having to experience them. How does the mentor benefit? 1) Mentors get a chance to pass on their institutional wisdom. 2) Mentors have an opportunity to practice their interpersonal and management skills outside the usual hierarchical relation- ship. 3) Mentors often become recognized as positive role models and are sometimes sought out by others. 4) Many find that being in a mentoring partnership helps them expand their own horizons and keeps them in touch with what’s going on in other areas of the organization. 5) Mentors often insist that they gain as much, if not more, from the mentoring partnership than their mentee does. “Many find that being in a mentoring partnership helps them expand their own horizons and keeps them in touch with what’s going on in other areas of the organization.” What are the mentee’s responsibilities? 1) Mentees must be willing to learn. 2)They must be able to accept constructive feedback. 3) Mentees must be willing to “stretch” and try new things and take risks. 4)They must be able to identify short and long-range career goals and accept that those goals may change. What does the mentee get out of it? 1) Everyone is ultimately responsible for her or his own career, but it can be very helpful to have someone to talk to who can provide a listening ear and share what has helped him or her over the years. 2) Mentors can provide valuable direction and clarification at times of confusion or doubt. 3) Mentors can help the mentee figure out what they need to do to fill in the gaps between where they are now and where they want to be in the future. 4) Mentors can provide alternative perspectives. What are the different types of mentoring? 1) Natural mentoring is when one person is casually talking with

TALK TO US Do you have an interesting story to tell? Is your company doing things differently and getting results? Let us know. We’d love to contact you and feature you in an upcoming case study. If interested, please email rmassey@zweiggroup.com.

THE ZWEIG LETTER October 3, 2016, ISSUE 1170

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