| Print | Close Window | AMO Currents - Posted: January 12, 2010 |
Construction of AMO headquarters proceeds on schedule, on budget
The construction of a headquarters building for American Maritime Officers in Dania Beach, Fla., is proceeding on schedule and on budget. AMO National Secretary-Treasurer José Leonard, who is overseeing the project, expects the building will be complete in November of this year and ready for occupancy by January 2011.
“I’m pleased with the progress so far and we’re on track to have the building itself completed this year,” Leonard said. “There have been some minor delays along the way in the permitting process with the city of Dania Beach, mostly due to the unique nature and purpose of the building with regard to current city codes for commercial and retail development. These issues have been resolved.
“Commercial construction in this area is at a low, so from AMO’s standpoint, this is the best time for an undertaking of this magnitude,” Leonard said. “The timing of this project has saved AMO a significant amount of money and the headquarters building will be a standout in the Dania Beach corridor of Federal Highway.
“This headquarters building will be a very important asset for AMO members,” he said. “All union offices and resources will be consolidated under one roof for the convenience of the membership. Currently we operate out of three and sometime four different locations here in Dania Beach. This building will feature a spacious meeting hall, conference rooms, and ample office space for AMO members to conduct business in a professional and confidential setting.”
The headquarters project originated when the AMO Safety and Education Plan, which operates STAR Center, expressed an interest in purchasing the land upon which the STAR Center, student housing, AMO Plans and AMO union facilities reside. The union owned the 6.5 acres of land and some of the buildings, while the AMO Safety and Education Plan owns the four-story building that is the core of STAR Center training programs. Because the union owned the land, the S&E Plan was required to obtain a special permit from the federal government (known as a ‘prohibited transaction exemption’) any time structural changes or expansion were needed.
This arrangement had for years hindered or rendered impossible much needed expansion of STAR Center classroom and training capacity.
Following the approval of a prohibited transaction exemption by the Department of Labor, the AMO Safety & Education Plan purchased the 6.5 acres of land and buildings owned by the union. A portion of the proceeds from the sale is being used to pay for the construction of the AMO headquarters building on land owned outright by the union across the street from the AMO Plans/STAR Center campus. The balance of the purchase price will remain in the union’s treasury.
The union conducted a 90-day union-wide secret ballot referendum, in which construction of the new AMO headquarters building was approved by a 66-percent margin on July 16.
Due to the extremely depressed construction market in South Florida, building contractors submitted bids that were approximately $1 million lower than had been originally estimated for construction of the headquarters building as designed. AMO accepted a bid for $3.9 million, and sold the 6.5 acres of land and buildings to the AMO Safety & Education Plan for a fair market value of $10 million.
“The construction of AMO headquarters benefits both the union membership and AMO Plans,” said AMO National President Tom Bethel. “AMO will have a home base to meet the professional needs of the membership and a headquarters that reflects AMO’s status as the largest American union of merchant marine officers.
“It’s important for everyone to understand the S&E Plan had set aside the money for this purchase, and the money from the Safety and Education Trust could not be transferred to the Pension Plan under any circumstances,” Bethel said. “Not everyone realizes this project arose from the S&E Plan’s dire need to expand training and administrative capacity. STAR Center can now move ahead with expansion and renovation as needed to better serve AMO members attending courses in Dania Beach.”
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