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REAL ESTATE: A Home Court Advantage

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Another important element was the understanding that the diversity goal was a floor, not a ceiling, adds Ms. Hernandez-Hinkle. “We wanted not just to hit that mark, but to go beyond it,” she says. “The underlying theme in all this is that you need to reach higher than your expectations. You need to push that envelope.”

To ensure the recruitment of minority contractors, the COC created a 40-member Minority Business Advisory Committee, which included members of minority chambers of commerce, the League of United Latin American Citizens, and the National Association for the Advancement of Colored People. The committee’s efforts helped the project reach minority groups throughout Dallas.

Representatives from the COC met with minority groups every quarter to make sure firms knew about upcoming bid opportunities. Minority contractors who participated in the project remember that outreach at the bid stage. “They were open to input from the community,” says Art Robles, president of the Hispanic Contractors Association of Dallas. He recalls that officials from the project met with his association’s vendors to discuss the impending project. “When they went to that length to reach out to us, I knew that the program would be very successful,” Mr. Robles states.

Lopez Electric received a $1 million contract to perform electrical work at the center – a significant sum, given that the family-owned business usually does about $7.5 million worth of business annually. “We had to bid everything competitively. It wasn’t a set-aside,” says CEO Ernesto Lopez. “I’ve been involved in other programs like this, and this was one of the most sincerely implemented.”

Integration of minority firms into the project has had an enormous ripple effect on the community. “We estimate that 80 to 88 percent of our [construction] work force in the Dallas area is Hispanic,” Mr. Robles explains. “However, many companies see us as laborers and not as contractors or subcontractors. That’s why this project was unique.”

Many people in the construction trade credit Austin Commercial, the general contractor on the job, with a genuine commitment to minority participation. Among its innovations is a mentor-protege program, implemented five years ago, in which 12 minority construction firms annually receive free training and specific guidance on how to succeed in the business. Since 1983, Austin Commercial has had a self-imposed minimum goal of 10 percent minority participation in all its projects, according to Eugene Walker, director of diversity affairs at parent company Austin Industries.

“This didn’t just start with this project,” Mr. Walker declares. “Austin Commercial has been a leader in diversity in this market for years. … The majority of our projects are in the private sector, where there aren’t [mandated] goals.”

Austin Commercial imposed the minimum participation requirement on all prime nonminority firms involved in the project, according to Mr. Walker. It was written into their contracts.

Mr. Walker emphasizes that his company’s policy on minority participation is a practical approach to business. “We realize that the minority community consists of taxpayers just like us. We get these huge projects and we target only 25 percent to go to minority groups and women,” he says. “That means there is another 75 percent out there that is allocated to nonminority firms. We look at it as an opportunity to tap into that other 75 percent and include women- and minority-owned businesses.”

Officials at American Airlines Center say the construction phase has demonstrated what can be accomplished when everyone works to increase minority participation. The same philosophy applies to operation of the complex. In May, COC formed a committee to ensure minority participation in the vendor side of the sports industry. “Part of our job is to serve as a community liaison by targeting new firms to add to the existing qualified base of contractors,” says Ray Quintanilla, president of Sierra Concessions and a member of the Minority- and Women-Owned Business Development Committee. The COC encourages minority vendors to visit their Web site at www.americanairlinescenter.com.

Mr. Robles believes the open participation policy makes it more likely that minorities will frequent American Airlines Center. “I take great pride in going to the center. I’ve been four times since it opened,” he says. “We feel we helped to build it, and not just as a labor force but as part of the decision-making process. It gives us a different sense of pride to say we were a part of this.”

In an ideal world, large public projects such as American Airlines Center wouldn’t need special efforts directed toward minority participation. In the meantime, the Dallas sports arena serves as a worthy model for other cities. “I’m hoping in the future that we won’t need these programs,” says Mr. Robles. “But until people look at us as equal players, the programs are needed.”



Source: HISPANIC BUSINESS magazine


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