[Back to List View] As seen in Labor Tribune January 12, 2006 COMMENTARY Leveraging Labor’s Stake in Future of St. Louis Regions By Jim LaMantia, PRIDE Executive Director A drive down Maryland Avenue in Clayton reveals a regal addition-in-the-making to the skyline: The $75 million Maryland Walk condominiums being developed by Conrad Properties. As a tower crane majestically swivels above this 17-story structure, some see it as an example of a developer successfully responding to changing lifestyles with a creative-living concept. Others see it as another example of Clayton’s continuing emergence as our second downtown. While I see all of that, I also understand that Maryland Walk represents something more: The ultimate example of teamwork in our construction industry as we leverage Labor’s stake in our region to build a better future. Maryland Walk unites that which we have in great abundance in St. Louis: A creative developer, proficient construction manager and a skilled workforce. But it also represents the ability of our union construction industry to lure capital to our region to help fund 100 percent union-built projects. In this instance, Commonwealth Realty Advisors Inc. chose to invest the hard-earned union pension monies it manages to help create a new landmark, new jobs and a new lifestyle. That’s economic development that benefits us all. This scene was replayed in Madison County, Ill., as union-backed Multi Employer Property Trust (MEPT) invested in a speculative $15 million warehouse that is now 100 percent leased at Gateway Commerce Center. Like Commerce, MEPT exclusively targets 100 percent union-built projects for its investments. The ability of our union construction industry to attract such funding sources has been an under-appreciated asset to our region for many years. Last November, PRIDE of St. Louis Inc. hosted its first-ever “investment summit” in which it introduced union-pension trustees to union-backed real estate investment funds including MEPT, Commonwealth, Union Labor Life and ASB Capital Management Inc. At a time when the tide is running against unions nationally, PRIDE believes St. Louis’ highly-skilled union construction workforce is an economic engine that can help drive future development. It is a plus that shouldn’t be overlooked. For example, Commonwealth, a Chicago-based real estate investment advisor, has more than $1.6 billion in assets under management. Our region’s ability to unite well-conceived developments with 100 percent union workforces has given Commonwealth the confidence to invest more than $100 million in local projects. In addition to Maryland Walk, it has helped fund the Hampton Inn hotel at Balke Brown’s Highlands at Forest Park, Conrad’s Summit Lofts in Creve Coeur and Pyramid Construction’s Banker’s Loft in downtown St. Louis. Meanwhile, the $4.8 billion MEPT, which consists largely of Taft-Hartley labor pension funds, has invested more than $120 million in six union-built local projects that total 1.3 million square feet. In addition to the new warehouse at Gateway Commerce Center, it has backed such landmark properties as Shaw Park Plaza in Clayton and West 70 Commerce Center in St. Charles. These 100 percent union-built projects have accounted for more than 1.3 million man-hours for the construction trades and generated $226.4 million in total economic benefits. Obviously, union pension trustees have a fiduciary responsibility to make prudent investment decisions that promise to provide a secure, competitive rate of return. Likewise, fund advisors are duty-bound to scour the nation to identify projects that possess superior economic potential. Yet, when objectives are aligned and union pension monies can be put to work back in our community, it’s a collaboration that benefits us all. At PRIDE, we consider it St. Louis teambuilding at its finest.