USCF Crossville Tennessee Building Construction a Bad Investment by Andrew Zito

October 29. 2005.

 

Though I am not an architect nor in the construction trades recently I mentioned in passing references views that generally challenged accepted references regarding the USCF decision to construct a building for its use as a headquarters at the new location of Crossville Tennessee . I write this at the bequest of Mr. Sam Sloan who expressed that it was generally accepted within USCF circles that such a building would be constructed of masonry and be of a permanent long lasting nature rather than frame stud construction. This is the culminative result of information, belief and knowledge, and further research relating to the matter.

AS this article includes photographs in support of what is said it is posted in full on pushedpawn.org
 
Firstly when I was informed by Sloan that those who approved such a decision did so without out the presentation of a formal business plan, firm competitive estimates of the work required for such a building, and a feasibility study regarding costs. The projected estimate of $600,000 of which I view as overly expensive where I can acquire for cash a numerous solid brick structures which could be made feasible for less than one third the cost.
 

Not by any means the only building

 
My references stated strong views doubting a building as they wanted could be constructed as they wished of anything more than a frame structure with a minimum of masonry work, which traditionally is the form of general construction native to the trades in local area where buildings are never really built to last.
 
I previous reported at the request of online email group inquiry of Dr. Frank Brady regarding Crossville Tennessee, that the Crossville local market was limited by nature of its size which I feel would be taxed to find the qualified crew and material to build such a building except at inflated prices.
 
I though I have worked nominally in the construction field (many years ago) my inflated ego that lends me to think I'm qualified to discuss such issues is that they are necessitated by my financial constraints and limitations.
 
Last year in researching the acquisition of a building for my own I came across a brick building that was once an small opera house in a small town of a rural areas that was offered to me for a mere dollar by that small town. The contractual terms they required were that I install a new roof within the first three months, requiring conformity with local law and building construction codes (ipso facto local labor not mine).
 
The particulars of that small building additionally required I replace a staircase that once was connected the second, and third floors which no longer existed, chase out pigeons roosting there, and rewire the whole place.
 
To say the least I thought the terms were unreasonable and geared more towards a larger scale regular construction venture with a crew who would be interested, while I as a single guy seeking a homestead project for sweat equity for prohibitive precluded from any opportunity. Goes to prove something sounding too good to be true, as the expression goes was probably too good too be true.
 
Though Crossville Tennessee is less expensive than many metropolitan areas but due to its limited size and therefore of a limited local labor market I foresee many construction problems.
 
Distictively Crossville Tennessee has an unemployment rate which is lower than the national average and therefore having a more competitive labor market
than nationally, in a small town the USCF wishes to construct a 6000 sq foot building (approx. 60+100+60+100 feet of brick to construct the outside perimeter of that building requiring minimally 3200 square feet of masonry at a cost of over $12. per sq ft which does not include the internal retaining walls needed for a sound structure and comfort as generally I am opposed to sheet rock construction.
 
Brick masonry
CSI 04-210 [email protected] Unit Material Labor Equip Total
Standard size brick with running bond, including brick at $.30 each and mortar at $6 per CF. Add the cost of ties, reinforcing and scaffolding, using small tools.
 
Veneer                 (6.4 per SF) [email protected] SF 2.38 5.00 .06 7.44
Cavity wall           (6.4 per SF) [email protected] SF 2.38 5.95 .07 � 8.40
9"solid wall          (12.7 per SF) [email protected] SF 4.72 7.95 .09 12.76
In the Crossville area $600,000 typically represents six one family houses as the Median home value is $104,700
 
Lasting a Median age of homes 19.0 years per with a financial Home appreciation of 4.7% as opposed to the nationanwide median home appreciation of 12.3% lasting 27.8 years meaning houses there are general constructed there cheaper and built less to last than the nationwide average.

Comparatively compared to Sunnyside queens New York' s $448,900 Median Home value, 60 years Median age and 14.7% appreciation it is below standard.

Compared with buildings in Newburgh   New York   12550 area

that have:
                                                             Local           Regional         National

Median value

$246,500

$213,100

$185,400

Median age of homes

44.0

28.2

27.8

Home appreciation

15.1%

14.6%

12.3%

 
Overall  Crossville's buildings are less expensive but also less well constructed therefore in the long term are more expensive perhaps due to their rapid depreciation 2.5 to 3 times higher from other areas of the country when even compared to other small towns in the northeast.
This strongly indicates the Crossville construction market will be unable to adequately provide the construction expertise, materials, services etc from local resources which are needed to build such a building in an adventure which will hidden costs and drive the prices up if it is attempted to deviate from the norm available in Crossville Tennessee and which would be better invested in another area.
 
Finally a $600,000 investment in Real Estate invested in Crossville Tn compared to Newburgh NY
Crossville  TN will appreciate   4.7% on an average  19 years totaling     $1,462,913
Newburgh NY will appreciate 15.1% on the average 44 years totaling $442,181,281
 
Bottomline Crossville is a very poor investmment. Andrew Zito.
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