Following the January 12, 2010 earthquake, a new Haitian company, the Genesis Development Group set the path for a sound real estate development project in Delmas: Genesis.
The group is currently building a ten-story complex that will soon offer approximately 10,000 square meters (100,000 square feet) of customizable commercial office space, a 25-room extended stay hotel for business travelers, flexible conference and meeting rooms, and a rooftop café with outdoor garden and patio. Mr. Gregory Figaro, Executive Chairman & U.S. Regional Vice-President at Arcotec Haiti S.A., the builder and major developing partner of the Genesis project, is giving us a preview of that ongoing project. We interviewed him in late May.
Question: What is the story behind the « Genesis Development Group”?
G.F: Up until a few weeks after the earthquake hit in 2010, we remained dispirited, slowly realizing the extent of the cataclysm we had experienced. But then, as time went by, we gradually became more than convinced that in order to overcome this tragedy, we would need to cultivate our ambitions and not only overcome, but also create a lasting testament to our ability to remain strong and undeterred.
We brainstormed for months and invited other potential stakeholders to join our discussion process. We formed a board of advisers to help shape the vision of what would later become the Genesis project. On January 12, 2011, without a full plan in place, we broke ground on the site at Delmas 30 by bringing in our trucks and bulldozers. To us, that was a symbolic gesture and a significant step forward. Even though it was not a lot of work, even though our ideas were not yet fully conceived, we knew we were about to undertake something monumental. On January 12, 2011, our trucks started clearing the site, and while this work continued, we narrowed down our ideas to erecting a 10-story commercial building, considering that there was a need for Class A office space in the country. By February 2011, we signed a fast-track design-build agreement with the Florida based architectural and engineering firm C3TS for designing the Genesis commercial building. We also immediately created the Genesis Development Group that would become the main owner of the project.
How was the construction site selected and is this project related to Citibank?
G.F: The Genesis site was already owned by our firm;. For example, most of the sites we had access to were occupied by tent camps of earthquake victims. The community and our stakeholders were in agreement that it made more sense to build something that would create jobs rather than leave the situation as it was. This site was our final choice because it was close to all major landmarks, including the international airport, Pétion-ville, and downtown Port-au-Prince. The Genesis project is not related to Citibank, although that bank was a former tenant of the building that was once on that site and partially collapsed during the 2010 earthquake.
Question: How many people are employed by this construction project?
G.F: Directly and indirectly this project employs over 100 people. On the construction site, we have 60 Haitian workers, who are mostly tradesmen and foremen including, carpenters, steel workers, masons, equipment operators and several other trades. We also hire construction superintendents, different types of engineers and site managers. Away from the site, we operate a concrete plant dedicated to producing quality concrete for the Genesis site; the plant employs over a dozen workers. Indirectly, this project also employs administrators, accountants, office administrators, structural and other engineers, architects and project managers.
Question: What are some of the difficulties your team faces during construction?
G.F: Much like other major construction projects, we experience plenty of difficulties. Let me address a few: the primary challenge we face is dealing with quality workmanship and the required specialized skills and knowledge for building in a seismic environment. Recruiting skilled tradesmen has been challenging to say the least, but we have been successful at hiring and training top-notch candidates who are delivering high quality work. The International Building Code of 2012 that we use has some specific standards that we adhere to. New tradesmen we hire do not necessarily have experience working with those standards. We experience a steep learning curve that sometimes can be costly and time consuming.
Another challenge has been communication and differing expectations among our team members. Sometimes one may think expectations and communications are clear but that is not always the case because we are dealing with a multicultural team where four languages are spoken and the work styles are dissimilar. Let me give you an example: in the U.S., typically, in a design-build environment like Genesis’, design firms work collaboratively with builders as they devise plans that are constructible in the field. That usually means seamless two-way constant communications between designer and builder. In Haiti, generally, design firms or architects produce drawings that are finalized, and it is up to the builder to execute plans in the field, so there is not as much of an exchange of information as you would find in U.S. design-build arrangements. We are overcoming these differing expectations by setting policies that require constant reporting, verification and documentation of work completed and planned and we also continually follow up to ensure instructions are executed as expected and with every party’s input. We have devoted a lot of effort improving this area of our operations and it is paying off with the results you see today.
The other significant problem is in the timely supply of materials. We have had to produce some of the material ourselves, for example, by building a ready-mix concrete plant. For materials that are not readily available in Haiti, we have formed strong partnerships with Haiti, U.S. and European suppliers to obtain construction materials and equipment. I must say that I have noticed great progress in this area and we are very satisfied with the Haitian suppliers and brokers we are dealing with right now.
Question: What is the expected completion date of the project? How was this project financed?
G.F: Genesis is a two-year project slated to be ready for tenant improvement phase by early summer 2013 and full completion and occupancy by January 2014. The Genesis development project is a 20-25 million dollar initiative that includes several phases. Genesis is financed by a combination of bank loans and private investments.
Question: What sorts of amenities and space will be available to potential tenants? Is it in your plans to offer virtual offices?
G.F: One of the advantages of the Genesis Project’s location is its proximity to the airport and other major Port-au-Prince commercial landmarks. With Genesis on the main Delmas artery, it is obvious that it is an area where most businessmen and women, and their customers will pass by as they go about their daily routines. With Sogebank and other major commercial institutions already well established in the area, we see this area once more becoming a major commercial hub for Port-au-Prince and for Haiti.
Question: Pétion-Ville real estate seems to be more in demand than the rest of the metropolitan area, how are you going to attract potential tenants?
G.F: One of the advantages of the Genesis Project Location is its proximity to the airport and other major Port-au-Prince commercial landmarks. With Genesis on the main Delmas artery, it is obvious that it is an area where most businessmen and women, and their customers will pass by as they go about their daily routines. With Sogebank and other major commercial institutions already well established in the area, we see this area once more becoming a major commercial hub for Port-au-Prince and for Haiti.
Question: How involved are the local officials?
G.F: This is a privately funded and executed project.
Question: Do you envision Delmas as a “skyscraper” city?
G.F: In Haiti, considering the uniqueness of our culture, I do not necessarily see Delmas as a skyscraper city, or at least I could say, not yet. Personally, I do not think of a skyscraper skyline as a sign of a developed Haiti. What I envision is a clean city with buildings of all sizes and styles that are built to code and good taste with structures that protect their inhabitants against natural disasters and the elements. Whether these structures are skyscrapers or simple and esthetically built modest homes, their cleanliness, orderliness and adherence to better standards is what will ultimately transform our country to the place we all have been envisioning.
Question: What is the short-term and long-term impact of this construction project for the community?
G.F: The short-term impact of the Genesis project is obvious: Employment! It creates a lot of good and sustainable jobs. Many Haitians who were relying on aid before to survive now have a job and skills that will allow them to stay employed for a long time. And their earnings allow them to support their families. In addition, in the short run, this project inspires others to do the same and to believe that Haiti is indeed a country undergoing development. Since the earthquake, Genesis has been one of the few private sector projects started. Once you see the size of that project and the number of Haitians it employs, one cannot help but say, “Yes we can come out from under the rubble”.
In the long-term, it will help to improve the image of the construction industry in Haiti. The building is designed to look memorable, sleek and modern. It will just add to the portfolio of similarly built and planned projects in Haiti. Second, Genesis will provide suitable Class A office space for companies operating in Haiti. We lost thousands of commercial offices and hotel rooms during the earthquake. This building will help to start filling the need to replenish the lost space. Third, we believe it will inspire other developers to follow suit and venture into similar projects, if not bigger and better than we did, and that, will lead us to the lovely city we all have dreamed of
Question: Is the Genesis Development Group interested in participating in other real estate projects?
G.F: Absolutely! We are a real estate development group after all. We spent a lot of time and energy building a system that today enables us to realize beautiful, stable, code compliant construction projects. Whether we construct one or twenty buildings, we have the system to support the effort. It would be a shame to not take full advantage of it by stopping at one project. We welcome all to contact us. We provide services that range from conception and development to actual construction. We do not provide financing services directly, but we have a network of investors working with us on various construction initiatives in Haiti.