December 13, 2013

CT Construction Digest December 13, 2013

Today's biggest drivers of natural gas demand

Natural gas is projected to be the fastest-growing major fuel over the next two decades, according to research by ExxonMobil . Not only is gas currently much cheaper than oil on an energy-equivalent basis, but it also produces significantly less greenhouse gas emissions -- a crucial advantage as global warming becomes an increasingly serious threat to the environment. Given natural gas' huge advantages over other fossil fuels, let's take a closer look at the three most important factors that will drive demand for the cleaner-burning fuel over the next several years.
Power generation  The largest single source of natural gas demand over the next few years is expected to come from utilities' power generation needs. According to projections by Enterprise Products Partners, the nation's largest midstream company, power generation will boost natural gas demand by 4 to 7 Bcfd over the next 5-7 years. Due to the combination of relatively low gas prices and higher coal prices, as well as new environmental regulations seeking to curb U.S. greenhouse gas emissions, approximately one-sixth of existing U.S. coal-fired capacity will be retired by 2020, according to the EIA. Some of the largest utility companies in the nation have already committed to retiring some of their older coal plants. For instance, the Tennessee Valley Authority earlier this year announced it would reduce coal's share of its electrical generation by about half by shuttering eight coal-fired power plants that have a combined capacity of 3,300 megawatts, while Duke Energy said it will retire five coal-fired power plants in western Indiana by 2018 as part of a settlement reached in August. CLICK TITLE TO CONTINUE READING

Searching for $40M downtown developer still needs funds

BRISTOL — The Long Island-based firm tasked with revitalizing downtown is still searching for the financing it needs to begin the $40 million first phase of its ambitious Depot Square plan that promises to transform the city center.
The president of Renaissance Downtowns, Don Monti, said it will be a few weeks “before we get back to rolling our sleeve up” because of the traditional slowdown around the holidays.
But, he said, he hopes to be able to report progress in coming up with “the whole capital stack” by mid-January. City officials who met with Renaissance for two hours Thursday in an occasionally heated closed-door talk in the mayor’s office said they remain optimistic that the developer will put the pieces together in time to meet the May 26 deadline for purchasing the former mall property required in the first phase of the project. CLICK TITLE TO CONTINUE READING

Council approves bond for new high water tank

NEW BRITAIN — The Common Council voted 15-0 during a special meeting Wednesday night to approve a $5.39 million bond authorization for costs related to the design and construction of a new 30-foot-high water storage tank at Elam Street. The current tank, city officials said, is deteriorating.
“The roof was in danger of collapsing earlier this year and we took steps to shrink-wrap it for support. But, it’s reached its life expectancy,” said Alderwoman Suzanne Bielinski.
Construction on the new tank will begin early next year, Bielinski said. The project will take about a year, officials said. While the current tank is made completely out of gunite — a material consisting of a mixture of cement, sand and water — the new tank will be reinforced with concrete on the inside and gunite on the outside, Bielinski said. The water tank services residents on the city’s northeast side. It is important to note, Bielinski said, that the 115-foot storage tank that is visible from Elam Street is not affected by the project. The tank in question, she said, is not visible from the road.

Wallingford considers tax concessions for hotel developer

WALLINGFORD — The resurrection of a half-built hotel on Route 68 hinges on successful negotiations between town officials and a hotel developer who is looking to broker a deal that will keep his property taxes fixed for the next seven years. Robert W. Winston III, chief executive of Winston Hospitality, made a presentation to the Economic Development Commission this week and asked the town to enter into a tax-fixing agreement that would allow him to finish building a Hilton Garden Inn at 1181 Barnes Road.  The proposal includes a fixed property assessment of $1.75 million. The property is now assessed at $2.2 million. Under the proposal, Winston is asking that his property taxes be frozen at $45,325 for the next seven years. Taxes on the property are now $73,843 a year, according to Wallingford’s tax office. That number would grow in future years as the tax rate and assessed value increases. But the fixed-tax deal, allowed by state law, would allow him to spend the more than $15 million needed to complete the hotel project, according to Winston’s proposal. Winston was unavailable for comment on Thursday.  CLICK TITLE TO CONTINUE READING

Norwich receives 6 bids to demolish Chestnut Street Mill

NORWICH — It will cost between $249,000 and $834,000 to remove hazardous materials and demolish a long-vacant mill site at 77 Chestnut St. — a price Mayor Deb Hinchey says is worth it for the return of prime downtown real estate to the tax rolls.“I absolutely think it’s worth it. I want to study the amounts but I think we need to clean up those properties,” she said. “There’s nothing we can do with them the way they are.” On Thursday, officials unsealed six bids for abatement and demolition work at the circa-1885 parcel the city acquired through a 2011 foreclosure. Redevelopment Agency chairwoman Marge Blizard said bringing it back into use should be a top priority.“It’s a very valuable site that’s in the heart of downtown, and in its current condition, it drags down the neighborhood,” she said. “If it was brought back to its highest and best use, it would return so much to the city.” CLICK TITLE TO CONTINUE READING

Old Hartford Hotel now being converted

The conversion of the former Sonesta Hotel on Hartford's Constitution Plaza into apartments is kicking into high-gear now that the developers have lined up all of their financing for the $28 million project. Some demolition got underway in October, but with financing in place as of late last week, the developers are expecting the construction of 193 apartments to be completed in May 2015.
The building has been vacant for nearly 20 years.
Jeffrey D. Ravetz, president of New York-based Girona Ventures, said he and his partner in the conversion, Wonder Works Construction and Development Corp., are even more bullish on Hartford than they were in 2011 when they paid $500,000 for the long-vacant, 12-story hotel. CLICK TITLE TO CONTINUE READING
 
 
NEW HAVEN >> As the outgoing administration lined up to sign a $395 million deal for a mixed-use development envisioned as a new neighborhood downtown, Mayor-elect Toni Harp pledged to go after the state funding that will make it a reality. “Whenever there is change there is often worry that things will happen and things won’t be maintained,” Harp said to a crowd of officials at City Hall Thursday to ink the plan with Max Reim of LiveWorkLearnPlay, a Montreal-based company.
“I just want to assure the public that I believe in this project and this fabulous development team headed by Kelly Murphy basically gives us the ball. ... We will not drop that ball. We understand that this is important,” Harp said to a crowd that broke into applause.
“It’s a win-win and I’m going to work very hard to see that it happens,” Harp said. CLICK TITLE TO CONTINUE READING

Businesses rate crowded highways as biggest economic drag

STAMFORD -- More lanes on Interstate 95 and other state highways to break up bottlenecks was the top transportation remedy that would help businesses thrive, according to a survey of executives conducted by the state's largest business and trade organization.  The Connecticut Business and Industry Association's 2013 Transportation Survey collected responses from 650 executives around the state this fall for the survey, with 55 percent of responses ranking highway capacity and improvement projects such as adding operational lanes on I-95 as the most economically helpful use of state transportation dollars. The survey was sponsored by New Haven-based power utility United Illuminating.  "Connecticut's economy will continue to stagnate unless we invest in improving connectivity both within the state and to the New York City and Boston metropolitan areas," said James Torgerson, chief executive officer of UI.  In the survey, 23 percent of business executives rated improved transportation systems as the government spending they were most willing to pay for, trailing only economic development which 37 percent of executives rated the top priority and education which 36 percent of respondents favored.  CLICK TITLE TO CONTINUE READING

West Haven officials angry at plan to close exit 44 on I-95

WEST HAVEN >> Plans to eliminate Exit 44 on Interstate 95 south have angered city officials, who say there wasn’t adequate notice or opportunity for local input. Mayor Edward O’Brien and state legislators, after meeting Thursday with state Department of Transportation design engineers, said they were upset because the exit is the closest route from New Haven to West Haven’s downtown.
Part of the DOT’s West River Crossing project, the exit ramp, which follows Exit 45 closely and runs in a tight loop, would be eliminated and the Exit 45 on- and off-ramps would be reconfigured. Both are situated in New Haven just across the West River. “My main concern is I would like to keep this somehow and have a direct exit to West Haven,” O’Brien said. The new route, he said, would include three traffic lights rather than one.  The new Exit 45 design would be “a combined diamond interchange with on- and off-ramps terminating on Ella Grasso Boulevard,” according to Brian Mercure, assistant district engineer with the DOT.  The main reason to eliminate Exit 44 is the close proximity of Exit 45, Mercure said, which forces entering and exiting vehicles to move on and off too closely. “The design was done a very long time ago; we just didn’t have the money for it,” Mercure said. He said the first public hearing was held in 2001 and another in July 2012. He said West Haven officials were notified, along with those from New Haven and residents of the nearby City Point neighborhood. CLICK TITLE TO CONTINUE READING