Fremont Hilton Garden Inn

VC Development Group was pleased to assist with the balance of entitlements and several other Construction Management services needed for this project.

  • 2 Acre Site
  • For this hotel project we are providing Construction Management, Entitlement and Permit Services for this 145 Room Hilton Garden Inn, 5 story concrete podium construction, with 4 upper levels of ‘Modular Built’ Guest-rooms
  • We have been working as an Independent hired Consultant working directly for DD&B Construction, and Baywood Hotels
  • Baywood Hotel upper management folks, namely Kurt Blorstad SVP Development, observed in one meeting, the first Weekly OAC conference call he attended, our style and work product, and emailed to their entire design team and Baywood’s management folks, “I believe it wold be best to have VC Development Group involved in all permit submissions going forward.”
  • Before Kurt’s email, and since then, we have been the ‘lead’ on all Agency Permits needed to start, build and open this hotel. We are also assisting with finalizing Entitlements related to Offsite Dedication Agreements, Bond, and Liquor License.
  • The AOR out of Atlanta, Phillips Partnership Architects are good folks and a good design team but suffer from not working the Silicon Valley and California Market, and have had difficulty with Title 24, CalOSHA, BAAQMD, Commissioning, Soil Engineer, Acoustical requirements, and other required Design Consultant management requirements needed in this market.
  • Prior to our involvement, there was very weak response from initial Q1 2018 bidders based on 80% drawings which some line items in the Development Budget prepared by DD&B were based on.
  • We were tasked with filling in the bid scope gaps and bringing in my own known bidders for all scope. We also received, reviewed, spread all bids, and prepared work scopes for all final contracts being written by DD&B staff back East.
  • We have arguably saved $400k so far on only two items: Window Washing Equipment and obtaining a Soil Profile from a Geotech before grading and site balance ‘off-haul’ price gouging by the Excavation subcontractor. God bless them, they all know how to make money if the owner is not savvy, first, on how ‘clean’ the soil is. Long story short, We always perform Soil Analysis early and have successfully built the fair cost into all recent Grading Excavating subs contracts, including the one for this project.
  • We are the point of contact and ‘face’ of this project with all things PG&E. And we relish the role. In the last several years we have come to learn there are two things you cannot ‘buy’ or throw money at to get resolved and help or enhance the schedule with. Those are Elevators and PG&E. Both Union and both on their own separate paths. Elevators were engaged early on by DD&B which was a smart move. PG&E, however, by everyone including Phillips (AOR) and their MEP consultant, thought there was plenty of time to get final ELEC & GAS. Not true, but we are dealing with PG&E, as we now know how to do, and we will have final ELEC & GAS before any competitor would even imagine. We just finished negotiations last month for the Transformer being set and Final Electric for this project being energized, months before the hotel opening.
  • The Design folks out of Atlanta had little understanding of BAAQMD and the air quality folks impact, on Demolition Permits and time to get backup Generator approved. Guess who immediately identified this, and got it resolved? We had the Generator Permit in hand even before breaking ground on this hotel project.
  • For this hotel project, we have also saved 1 (one) Complete Review (Plan Check) Cycle from the City of Fremont and its multiple department reviewers. City of Fremont Senior Planner, James Willis, stated a typical project of this size and scope takes a minimum of 4 (four) Review Cycles. We were able to reduce or save approximately 6 weeks in this process by personally ‘shepherding’ and reviewing ALL Plan Check Comments and coordinating with ALL Plan Check Responses before resubmittal. In each case, we were able to identify and address Plan Check Comments that were not adequately or fully responded to. These lapses misses are what lead to additional Plan Check Cycles.
  • Economically, for the approximately 6 weeks saved, this translates to real dollars equalling approximately $600,000. On a similar 145 room count San Jose Homewood Suites hotel we built recently, we were able to provide 60 days saved City review time. For that hotel proforma, with a Year 2 NOI = $4.85M or $13.3K/day or plus or minus $400K/mo, this equaled almost $800,000 dollars in savings.