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SAN FRANCISCO (CBS SF) A fire investigation report released Tuesday gave more details about the cause of a five-alarm fire at an under-construction apartment building in San Franciscos Mission Bay neighborhood in March.

The March 11 fire was reported around 5 p.m. at a construction site at Fourth and China Basins streets, where a 172-unit building was being built as part of the MB360 development project by BRE Properties.

The unfinished building was destroyed and demolished in the days following the massive blaze.

In the report, written by San Francisco fire investigator Stephen Engler on April 15, the fire was deemed accidental after an event involving a wire welding unit or grinder between the top floor and high roof area.

The fire was sparked on the sixth-floor roof area in the southeast section of the building between the top floor and the roof, he wrote.

There was $40 million in property damage, along with $100,000 worth of contents destroyed in the building.

In Englers report, he details arriving at the site and seeing a plume of vertical smoke. He determined all construction crews had left the site, where there had been three areas performing hot work earlier in the day.

One project was welding on the roof area, where the fire appears to have started.

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Investigators Report San Francisco Mission Bay Fire Was Accidental, Likely Caused By Welding

A developer's price of replacing a midcentury modern office building with an apartment tower might include the absence of taxpayer incentives for the Central West End project.

That's the trade off recommended today by the Central West End Development Committee, which is part of Park Central Development, the area's development corporation.

Covington Realty Partners, of Clayton, is proposing a $50 million, 14-story luxury apartment building at 4490 Lindell Boulevard. That's the site of the Optimist International headquarters, comprised of two structures, one built in 1961 with an addition completed in 1979.

Officials have said the Optimists are looking to relocate their 30 headquarters employees to a smaller building in the neighborhood.

Regardless, the Optimists building has it fans.

As a result, the development committee voted today not to support tax abatement or other public incentives for Covington's project, which, of course, includes demolition of the Optimists building.

According to Covington's plan, the new tower of brick, stone and stucco would have 220 apartments. Resident parking is planned on the first two levels or below grade. Plans for an outdoor deck include a pool.

Covington hopes to acquire the Optimist International site and begin construction in January. Construction would take 22 months.

In addition to squelching the notion of public incentives, the development committee's other recommendations include:

Getting a city building permit for the apartment building before obtaining a demo permit for the Optimists building.

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CWE committee backs apartment tower

Australia's construction sector contracted for the fourth straight month in April despite an improvement in residential building, a survey by Australian Industry Group and Housing Industry Association showed Wednesday.

The Performance of Construction Index fell to 45.9 in April from 46.2 in March. Any reading below 50 indicates contraction in the sector.

In April, commercial construction dropped sharply to 45.7 from 56.5 in March. Engineering construction also declined in April, to 39.2 from 45.5.

Meanwhile, house building rose 3.8 points to 54.6, and apartment building was 12.3 points stronger to reach 57.9, data showed.

"The deepening slide in engineering construction is overshadowing the growth in residential building activity and the tentative recovery of commercial construction as seen in the expansion in April of new commercial construction orders," Australian Industry Group Director - Public Policy, Peter Burn, said.

The new orders sub index, which measures the future activity declined to 46.6 from 48.3. Input prices were lower in April, but the corresponding index remained high at 68.4.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

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Australian Construction Sector Contracts For Fourth Month

WHITTIER No one was reported injured in a partial collapse of new construction atop the Karmel Mall, a bustling immigrant shopping center located adjacent to the Midtown Greenway.

Witnesses described a loud rumble at about 8:45 a.m. Tuesday as wood framing on the two-story buildings roof collapsed, some of it falling onto the Pillsbury Avenue sidewalk below. Some of the addition fell onto power lines, and there were reports of power outages in the area at the time of the collapse.

Building owner Basim Sabri said the construction was for a third- and fourth-floor expansion of the mall, which houses dozens of businesses mainly owned by and catering to the Somali community. A framing crew was at the site up until about 11:30 p.m. the night before the collapse, Sabri said.

They shouldve secured the trusses at the end a little more, he said, adding that things fell like dominos in the wind.

He said Monday was the first major day of construction.

Fifth Precinct Commander Todd Loining said Sabri had the necessary permits in place for the work. Sabri has in the past initiated work on the buildings he owns in the area without first getting the required permits.

Loining said the older parts of the building did not appear to be damaged in the collapse. About two-dozen people were evacuated from the mall when first responders arrived on the scene, he said.

Hassan Mohamud, who works at a business that sells prepaid calling cards inside the mall, said he was smoking a cigarette outside the gated parking lot when the collapse occurred. It was a little windy at the time, Mohamud added.

I think its bad construction, he said. In my opinion, I think hes not going to the rule.

Raymond Hoffman, who lives across Pillsbury Avenue in the Park Square Condominiums, said he called recently elected Ward 10 City Council Member Lisa Bender to express his concerns about the quality of the construction prior to the collapse.

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Construction atop Karmel Mall collapses

Posted: May 5 Updated: Today at 12:08 AM With 39 apartments priced at the market rate, the West End Place project is another sign of rising demand for upscale housing in Portland.

By Kevin Miller kmiller@pressherald.com Staff Writer

Developers will break ground Tuesday on an upscale apartment and retail complex in Portlands West End.

click image to enlarge

Redfern LWS will break ground Tuesday on a four-story mixed-use development at the corner of Pine and Brackett streets in Portlands historic West End neighborhood. It will include 39 market rate apartments with first-floor retail.

Courtesy of Ryan Senatore Architecture

Located on the corner of Brackett and Pine streets, the $7 million West End Place will feature 39 apartments and two retail spaces in a four-story building. The project by developer Redfern LWS was endorsed last year by both the Portland Planning Board and the citys Historic Preservation Board, which reviewed the proposal because it is located in the West Ends historic district.

Tuesdays groundbreaking also marks a potentially significant shift in the rental market in Portland, where demand for upscale or market rate housing is rising.

With units renting for $1,300 to $2,500 a month, the West End Place project is the first new apartment complex in Portland in more than 20 years in which all of the tenants are expected to pay the full market rate for their housing. Apartment complexes built in Portland in recent years have included subsidized housing units reserved for lower-income individuals or families.

Portlands rental housing vacancy rate has hovered around 2 percent well below the 7 percent vacancy rate that is considered healthy. Housing officials have said that adding new rental units for Portlanders at all income levels is important to help moderate the citys rental rates, which have risen by double-digit percentages since 2010, according to a recent market survey.

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Construction starting on upscale West End apartment complex

A large coalition of political, economic development and affordable housing advocates testified on behalf of a bill that seeks to shift the resolution of construction defect claims towards arbitration rather than litigation.

They were met Monday in the Senate Affairs Committee by a long list of homeowners and community managers sharing horror stories of shoddy construction work and developers unwilling to fix problems.

"The status quo is unworkable," Sen. Jessie Ulibarri, D-Westminster, a co-sponsor of Senate Bill 220. "What you have in front of you is an attempt to break the log jam."

The bill would require a homeowner's association to adhere to arbitration requirements that developers typically include in the initial covenants rather than pursuing jury trials.

If an HOA decides to pursue litigation, it would require a majority of members in a community to provide written approval after being informed of potential costs to pursue a lawsuit.

The bill passed on a 3-to-2 vote, with Ulibarri joining committee Republicans in sending the measure on for review by the Senate Judiciary Committee.

Advocates of affordable housing argued that the current law has greatly curtailed condo construction, leaving lower-income residents with few options besides renting.

In particular, first-time buyers looking to break into the market and elderly homeowners looking to downsize are being harmed, they said.

As proof that something is broken, Ulibarri noted that only 2 percent of housing permits are for for-sale multi-family versus 20 percent in other areas.

Condo developers face insurance premium three times per unit of what apartment builders face, Metro Denver Economic Development Corp. CEO Tom Clark said.

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Construction defects arbitration bill moves forward

Add another apartment tower to the real estate construction mix in uptown Charlotte.

Developers broke ground Monday for SkyHouse Uptown, a $70 million, 24-story tower on a parcel bordered by 10th, Church and North Tryon streets.

Novare Group, Batson-Cook Development Co. and Grubb Properties are developing the 336-unit project, with Batson-Cook Construction building it.

The project marks the 11th SkyHouse tower Novare Group and Batson-Cook have handled throughout the Southeast, said Jim Borders, president of Novare Group.

Like the others, it will be aimed at young single workers, with easy access to the office towers along and near Tryon.

Its a perfect mix of high-rise urban (living), yet go out that way he pointed toward Fourth Ward and you can go for a walk with your dog in a residential area.

The building is expected to open to residents in about a year, Borders said. It will be built on a 1.4-acre site that takes up roughly half of that block, county records show. It sits next to the City Center Inn motel at Ninth and Tryon streets.

This was a complicated site that (the developers are) taking just a portion of, said Clay Grubb, CEO of Grubb Properties. So it took a lot of moving and figuring out whats the best way to maximize the site so we can really make a difference here in the Fourth Ward.

The project comes as officials with Charlotte Center City Partners, the Foundation for the Carolinas and other groups are trying to craft a vision for revitalizing the north end of Tryon.

While South Tryon is bustling with activity thanks to the new museums and the Duke Energy Center, North Tryon is struggling with panhandlers and hasnt seen as much new construction in recent years. Officials for key North Tryon landmarks such as the Main Library and Spirit Square have said their buildings could stand improvement.

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Developers break ground for 24-story SkyHouse apartment tower uptown

Tenants of a Fargo apartment building wanted relief, but the answers they got still have them concerned.

Fargo Commissioner Brad Wimmer sat down with concerned tenants at the Park East Apartment, who just found out they'll have to move to make room for an inner-city flood project.

Wimmer is backing that project and running for Mayor in June. Today he explained why almost 200 residents will most likely need to find a new home.

"We have only lived here one year, ya know, says Frank Bancroft, who lives in the Park East Apartment building, But we had plans of staying here much longer than that."

On Monday residents got a letter saying the building was most likely going to be bought out.

"This is a big loss, some for 20 years, there's one gal that's been here 30 years," says Bancroft.

And since then residents say it's been all rumors and gossip of what's going to happen.

"They just could not find a way to save this building from the flood control project," says Fargo Commissioner Brad Wimmer.

Wimmer says flood protection can be painful, so he's here trying to clear things up.

"You are really protecting the bulk of the downtown, and the residents on the north side," says Wimmer.

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Wimmer Meets With Residents Living In Park East Apartments About Flood Buyout

A developer is proposing a $50 million, 14-story luxury apartment building at 4490 Lindell Boulevard, in the Central West End.

Covington Realty Partners, of Clayton, wants to put the tower on the site of the Optimist International headquarters, comprised of two structures, one built in 1961 with an addition completed in 1979. Officials said the Optimists are looking to relocate their 30 headquarters employees to a smaller building in the neighborhood.

According to Covington's plan, the new tower of brick, stone and stucco would have about 200 apartments designed to allow their sale later as condos. Resident parking is planned on the first two levels and below grade.

Officials said Covington hopes to acquire the Optimist International site and begin construction in January. Construction would take 22 months.

Next up for Covington is an appearance next week before the Central West End Development Committee, which is scheduled to hear the developer's proposal to demolish the Optimists building. The committee is part of Park Central Development, the area's local development corporation.

Brooks Goedeker, Park Central's executive director, said the committee wants to make sure that if the Optimists building is razed, it's replaced with something that enhances the neighborhood.

We want to make sure it's the highest-quality project, he said.

Covington's development site is a block east of where Opus Development plans to build a 12-story apartment building, at Lindell and Euclid Avenue.

Tim Bryant covers commercial real estate, development and other business stories for the Post-Dispatch. He blogs at Building Blocks, the Post-Dispatch development blog.

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Apartment tower proposed for Lindell Boulevard