Granite Announces Phase 1 of the $425 Million Mosaic Quarter Development in Tucson, Arizona

Rhea-AI Summary

Granite (NYSE:GVA) has secured a $27 million subcontract for Phase 1 civil work on the Mosaic Quarter project in Tucson, Arizona, under general contractor Hensel Phelps. The project, valued at $425 million, will be a sports and entertainment lifestyle center featuring venues for ice hockey, basketball, and soccer. Granite's scope includes supplying 32,000 tons of aggregate base, 14,000 tons of sand, and 20,000 tons of asphalt from their Swan Plant. Construction began in November 2024 with completion expected in August 2026.

Positive

• Secured $27 million subcontract for Phase 1 civil work
• Project supplies to be sourced from company's own Swan Plant
• Project included in Q4 CAP
• Established partnership with Hensel Phelps strengthens market position

Negative

• None.

Insights

Construction Industry Analyst

This $27 million subcontract win represents a strategic positioning in the growing Arizona market and showcases Granite's vertical integration capabilities. The project's material supply from Granite's Swan Plant demonstrates significant operational efficiency and margin potential, with 66,000 tons of various materials being sourced internally. The timeline spanning to 2026 provides stable revenue visibility and strengthens the company's relationship with major contractor Hensel Phelps.

The project's inclusion in Q4 CAP (Construction Award Pipeline) enhances Granite's backlog and revenue predictability. The design-assist involvement since March 2023 suggests better project execution control and potentially improved margins through early contractor involvement. The broader $425 million Mosaic Quarter development indicates potential follow-on work opportunities in subsequent phases.

WATSONVILLE, Calif.--(BUSINESS WIRE)-- Granite (NYSE:GVA) announced that it has been awarded the civil scope of work for Phase 1 of the Mosaic Quarter project, an approximately $27 million subcontract for general contractor Hensel Phelps. Mosaic Quarter is a sports and entertainment-focused lifestyle center, serving as a destination point for residents and visitors. It features state-of-the-art venues for entertainment, recreational and collegiate sports, including ice hockey, basketball, soccer, and much more.

The project is situated near South Kino Parkway and I-10 in Tucson, Arizona and is being developed, funded, and operated by Mosaic Quarter Development. The award is included in Granite’s fourth-quarter CAP.

This keystone project supports the City of Tucson, Pima County, and Southern Arizona and continues Granite’s history of building successful projects with Hensel Phelps.

“Since March of 2023, our Arizona Region has provided Hensel Phelps with design-assist services and cost model development essential to the civil site work package,” said Derek Betts, Granite Vice President of Regional Operations. “With design complete and construction agreements in place, the team is excited to finally begin construction of this marquee project for the community.”

Granite’s nearby Swan Plant will be supplying the following materials:

• 32,000 Tons of aggregate base for roadway, parking lots, and building base.
• 14,000 Tons of sand for utility bedding, shading, and backfill.
• 20,000 Tons of asphalt for roadways and parking lots.

Granite’s Phase 1 work began in early November 2024 and is expected to be completed in August of 2026.

About Granite

Granite is America’s Infrastructure Company™. Incorporated since 1922, Granite (NYSE:GVA) is one of the largest diversified construction and construction materials companies in the United States as well as a full-suite civil construction provider. Granite’s Code of Conduct and strong Core Values guide the Company and its employees to uphold the highest ethical standards. Granite is an industry leader in safety and an award-winning firm in quality and sustainability. For more information, visit the Granite website, graniteconstruction.com, and connect with Granite on LinkedIn, X, Facebook, and Instagram.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241107459362/en/

Granite Contacts

Media

Erin Kuhlman 831-768-4111

Investors

Wenjun Xu - 831-761-7861

Source: Granite

FAQ

What is the total value of the Mosaic Quarter Development project in Tucson that GVA is involved in?

The total Mosaic Quarter Development project is valued at $425 million, with Granite (GVA) securing a $27 million subcontract for Phase 1 civil work.

When will Granite (GVA) complete Phase 1 of the Mosaic Quarter project?

Granite's Phase 1 work, which began in November 2024, is expected to be completed in August 2026.

How much material will GVA's Swan Plant supply for the Mosaic Quarter project?

Granite's Swan Plant will supply 32,000 tons of aggregate base, 14,000 tons of sand, and 20,000 tons of asphalt for the project.

Where is the Mosaic Quarter project that GVA is working on located?

The Mosaic Quarter project is located near South Kino Parkway and I-10 in Tucson, Arizona.