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From the June 13, 2003 print edition of the Washington Business Journal
Architect has plans for contractors' surplus materials
Sean Madigan, Staff Reporter
Jim Schulman already has a pile of commercial lighting and fencing materials tucked away in some empty space above his offices in Southeast Washington.
He can't use the stuff. He can't sell it. But he also can't bear to see it go to waste.
And if Schulman's plans materialize, by year-end his surplus building materials will not only have a home but likely be part of one.
Schulman, an architect and community activist who lives near Capitol Hill, is in the midst of a $300,000 fund-raising campaign to open a used building material business and warehouse where contractors and homeowners can donate surplus or used doors, windows, boards and bricks to a nonprofit called Community Forklift.
The nonprofit will have a for-profit subsidiary, which will resell material at less than half price for affordable housing construction and neighborhood revitalization. That organizational structure will allow contractors and builders to reap tax deductions on donations.
Through donations and commitments from corporations, individuals and trade groups, Schulman has about $75,000. He says he needs about $225,000 more, which he hopes will come from the local construction industry.
Schulman also is working with the Port Towns Community Development Corp., which serves Bladensburg, Colmar Manor and Cottage City in Prince George's County. The CDC (www.porttowns.com) included funding for Community Forklift in a recent grant application, and if the money comes through it would certainly sway Schulman toward locating the business in Maryland.
"It would be a huge incentive," he says.
Otherwise, Schulman is still weighing a number of options for a place to set up a 40,000-square-foot warehouse operation. His enterprise will basically have a retail feel and will look more like a Home Depot than a thrift store or scrap yard, he says.
Hammering away at unemployment
No matter what, Schulman says the business will be on the eastern side of the metro area -- where a business like Community Forklift is needed most.
Neighborhoods east of the Anacostia River have suffered massive disinvestment for the past 30 years and are only now starting to enjoy some of the economic resurgence occurring downtown and in other parts of the city.
Economic development officials say affordable housing and job training are paramount to a revitalization of those neighborhoods, and Schulman says Community Forklift can help with both. The availability of low-cost building materials could spur not only affordable housing but also development that creates jobs, he says.
Schulman expects Community Forklift will hire about six people initially and as many as 20 during the first year.
As the business grows, he would like to get into the deconstruction and remanufacturing business, which involves taking buildings apart and selling the pieces for reuse.
"That's where the money is," Schulman says.
In Baltimore, Mark Foster started Second Chance, a deconstruction business formed in 2000 that now operates out of three Maryland warehouses. Its bent is not affordable housing, but job training.
Working with the mayor's office, Second Chance trains workers in "surgical demolition" -- salvaging parts of old houses and reselling them, primarily to people renovating historic residences.
Enthusiasm builds nationwide
Job creation and affordable housing aren't the only benefits of the reuse concept. There are environmental advantages as well.
Experts estimate about 1 percent of an average city's buildings are torn down and replaced by new construction each year. If the building materials aren't salvaged, they'll likely end up in a landfill.
Schulman points out a Maryland National Capital Park and Planning Commission report stated that in 1999 more than half of the waste handled at Prince George's landfills -- 768,000 tons -- was construction debris.
Prompted by the reuse concept's benefits, used building material businesses have opened the past 20 years in many cities including San Francisco and Oakland, Calif.; Portland, Ore.; Chattanooga, Tenn.; Ann Arbor, Mich.; Newark, N.J., and Minneapolis.
In this region, The Loading Dock, a used building material operation in Baltimore, opened in 1984. It takes in materials such as paint, lumber, cabinets and moldings and resells them.
The nonprofit runs a 21,000-square-foot warehouse in Northwest Baltimore, and in 2001, according to tax records, it had more than $100,000 left over after expenses.
On its Web site (www.loadingdock.org), the organization boasts it has "rescued" 33,000 tons of building materials from state landfills and helped more than 8,500 individuals and groups partner with more than 400 manufacturers and distributors in the mid-Atlantic.
Schulman sees The Loading Dock as a model for his Washington-based business. He says The Loading Dock's Executive Director Leslie Kirkland has told him she'd give him a month's worth of materials just to get started.
If Schulman can get the financing in order, he hopes to have the business ready to open by year-end. Eventually, he'd like Community Forklift to function as an incubator for smaller construction-related, start-up companies that would also encourage job creation.
E-mail: smadigan@bizjournals.com Phone: 703/816-0335
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