Lack of tax abatements puts Norwich hotel project on hold, for now
NORWICH - A North Carolina-based developer has delayed plans to open a $13 million Hampton Inn on the Salem Turnpike because city officials have shelved a tax abatement structure that would have filled a financing gap in the project. “It’s not an abandoned property,” said Jay Davies, managing director at Winston Hospitality, which owns the building at 154 Salem Turnpike. “We would love to get it going and put it in service if the conditions are right.” Norwich Community Development Corporation hopes an alternative mechanism can be developed to put the construction back on track. “We’d love the story to be, ‘this hotel is open and people are using it,’ but unfortunately there are a number of hurdles that have prevented that from happening and continue to do so,” NCDC Vice President Jason Vincent said. Winston obtained the 3.28-acre site just across from the Holiday Inn in May 2013 after foreclosure proceedings that began in 2010, when Long Island Bank of Smithtown initiated legal action against PRA Development and Management of Philadelphia and 10 contractors and suppliers. At the time, the hotel was almost done, but a soft economy and vandalism contributed to its deterioration. Winston said it would cost about $13 million to complete the venture, and had raised 86 percent of the capital through commercial loans or developer equity. CLICK TITLE TO CONTINUE
Hartford Council Accepts Downtown Stadium Development Plan
HARTFORD — After months of discussion over who would redevelop a long-ignored area north of downtown, Mayor Pedro Segarra's office on Thursday sent its plan to the city council, which will review the project. But a few council members expressed frustration over what they called a lack of detail in the proposals. Missing from the documents was how much, if anything, the city would contribute to the project, specifics on the annual lease payments to the developer for use of a minor league baseball stadium, and how the developer would finance the $350 million proposal.
Segarra's office said that it would send the council updated proposals on Friday. Councilmen David MacDonald, Raul DeJesus and Larry Deutsch abstained Thursday from the vote to refer the measures to a committee. "There's nothing here," MacDonald, a Democrat, said during a special meeting at city hall. "There's no detail in the resolutions. It's my understanding that the resolutions aren't even the final resolutions we will be voting on. It's atrocious." Deutsch urged Segarra's office to release more information, including the full plans submitted by the two developers interested in building a minor league ballpark, housing and retail near Main and Trumbull streets. CLICK TITLE TO CONTINUE
Derby's $31.2M sewer system upgrade plan moved to ballot
DERBY >> The fate of the city’s failing sewer system now lies in the hands of voters. Both the Board of Aldermen and the Board of Apportionment and Taxation on Thursday unanimously approved moving a $31.2 million proposal to upgrade the antiquated sewer plant, failing pump stations and corroding infrastructure to the Nov. 4 ballot. Residents will vote from 6 a.m. to 8 p.m. at Bradley and Irving schools. While the seven projects total $30.7 million, there is an additional $500,000 built into the bottom line for issuance costs, which cover things like legal fees, preparation of paperwork, authorization of bonds, notes, etc., according to Aldermanic President Barbara DeGennaro. Mayor Anita Dugatto is hopeful voters approve the long overdue upgrades, saying “we need to do this.”The projects include:
•$830,000 for new South Division Street pump station, which has monthly failures CLICK TITLE TO CONTINUE
Construction spending up in all major categories
All major categories of construction spending increased in July and total construction reached the highest level since December 2008, according to an analysis by the Associated General Contractors of America. Association officials welcomed the robust spending figures, but cautioned that growing demand will put new pressure on an already tight labor market. "It is encouraging to see signs of a broad-based recovery in private construction along with a recovery - at least for now - in public construction investment," said Ken Simonson, the association's chief economist. "Private nonresidential construction should remain strong through the rest of 2014 and beyond, while residential spending is likely to keep growing, though at a more moderate pace. However, funding is still inadequate for needed public infrastructure improvements." Construction spending in July totaled $981 billion at a seasonally adjusted annual rate, up 1.8 percent from the June total, which was revised substantially higher than the initial estimate, Simonson noted. The July total was 8.2 percent higher than in July 2013. Private nonresidential spending increased 2.1 percent from June and 14 percent from a year earlier, while private residential spending grew 0.7 percent for the month and 8.0 percent year-over-year. CLICK TITLE TO CONTINUE