Local construction, once brimming with activity, grinds to a halt – Mountain View Voice

There is not a construction worker in sight at the large apartment development at 2700 W. El Camino Real in Mountain View, after the county ordered the majority of construction come to a stop. Photo by Magali Gauthier.

Up until recently, the Bay Area's construction market was so red-hot that workers were traveling from other states to sate the heavy demand for skilled laborers. But under new restrictions imposed by public health officials, building activity that once peppered the region has abruptly reached a standstill.

In response to the spread of the new coronavirus, public health officers across six Bay Area counties introduced sweeping restrictions last month that banned numerous commercial activities, including some types of construction. Santa Clara County went a step further last week, with further prohibitions quashing most residential and commercial projects at least through the beginning of May.

Active construction sites throughout the region teeming with workers, tractors and heavy machinery have since been forced to "button up" and go dormant, pausing a yearslong surge in development in the Bay Area.

It also means one more sector of the economy with employees out of work.

"The construction economy has been devastated," said David Bini, executive director of the Santa Clara and San Benito Building and Construction Trades Council. "We have about 80% or 90% of our members out of work right now."

Under the March 31 order, only a narrow subset of construction is allowed to continue, including affordable housing projects and market-rate housing projects that include at least 10% affordable units. Public works projects deemed essential for health and safety reasons are also permitted, as are projects that provide temporary housing and shelter space.

Bini said his organization, which is affiliated with 25 labor unions, has been pushing back against the restrictions, arguing that active construction sites are not inherently a public health hazard. With some exceptions, he said more jobs fall within the recommendations on safe social distancing.

The trade council sent a letter to the Santa Clara County Board of Supervisors with its concerns on March 28, adding that professional boards had not been consulted, only to have the county crack down even harder on building activity three days later.

"It seemed to add insult to injury to have that second order tighten even further on construction," he said.

In the immediate term, Bini said emergency funding at the state and federal level should be enough to support Bay Area construction workers who have been forced to file for unemployment benefits. But the assistance is only a stopgap measure, and won't cover costs in the event that the prohibitions continue for multiple months.

"Most construction workers are sitting at home right now without a paycheck," he said.

What's baffling in the order, Bini said, is that it enumerates several types of construction activities that are exempt and will be allowed to continue under the public health order. Why is it not safe to build market-rate housing, he wondered, if it's safe to build affordable housing?

Another concern is that housing projects that barely penciled out financially before the crisis could wither on the vine because of delays. The cost of construction in the Bay Area -- largely considered the highest in the world and the smaller profit margin on housing projects makes them particularly susceptible to market fluctuations. In other words, entire projects may have to be scrapped.

A monthslong halt on construction definitely wasn't in the plans, said Robert Freed, president and CEO of SummerHill Homes. His company currently has four projects under construction in Mountain View, including a 211-unit project at 2700 W. El Camino Real, along with multiple others in the development pipeline. Freed said that SummerHill is in strong shape financially and will be able to keep all of its projects alive, but it is a "very big bump in the road."

Freed said he is reluctant to criticize public health officers making decisions to safeguard the public during the global pandemic, but that he does feel there is room for contractors to abide by social distancing and other safety precautions. He also found it odd that projects with affordable housing can proceed, while projects that provide in-lieu fees for affordable housing elsewhere must shut down.

Most Mountain View projects halted

As of last month, Mountain View's busy development pipeline reportedly had 24 projects currently under construction. When asked how many of them are permitted to continue and how residents are supposed to know which construction sites are exempt, city staff referred the Voice to a reference guide.

All but one project, the Shorebreeze Apartment complex at 460 N. Shoreline Blvd., appear to be prohibited by the county order. The developer for Shorebreeze, MidPen Housing, did not respond to requests for comment.

Community Development Director Aarti Shrivastava said the city is complying with the county order, and that there may have been ongoing work at construction sites over the last week as contractors finish tasks and ensure projects are safe and secure for the hiatus.

Anyone who believes building activities are continuing in violation of the county health order is asked to contact the Santa Clara County District Attorney's Office, which reviews and redirects complaints to local police departments for enforcement. As of Monday, the Mountain View Police Department had received 46 complaints from the DA's office for violators, resulting in three citations.

The city of Mountain View, for its part, has dropped almost all of its own municipal construction activity. Public Works Director Dawn Cameron said all but two projects have been suspended until the shelter order has been lifted, the exceptions being the Shoreline sewage pump system project and water and sewer main replacement work along Leong Drive, both of which have been deemed critical for public infrastructure.

Also still brimming with activity this week is a major landscaping operation off of Stevens Creek Trail, due south of Crittenden Lane, where tractors, workers and dozens of trucks outfitted with wood chippers are still busy. A PG&E spokeswoman confirmed Wednesday, April 8, that the location is a parking yard for contractors doing vegetation management work in the area, which is allowed to continue in the interest of public safety.

Caltrain electrification work along the train corridor is also scheduled to continue through the shelter order, with closures at the Castro Street intersection on April 11, April 13 and April 17.

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Local construction, once brimming with activity, grinds to a halt - Mountain View Voice