Malloy releases $60M for road improvements
WATERBURY -- Gov. Dannel P. Malloy on Wednesday released the second round of $60 million worth of road funding for local towns in an effort to improve transportation systems.
The amounts range from a high of $1.4 million for Bridgeport, the state's largest city, to $265,911 for Derby, the state's smallest.
"As we have an adult dialogue on transportation and work to build a 21st century system, I've backed up my words with real specifics and real action," Malloy said during a Waterbury announcement.
"When I present my budget next week, I'll propose a transformative plan for our infrastructure that makes Connecticut best-in-class," Malloy said.
Road funding has risen and fallen over the years, ranging from $12.5 million to $30 million a year. Malloy doubled the allocation to $60 million, and the money was allocated this fiscal year in two lump sums.
"Municipalities can use these funds for a variety of purposes," said James Redeker, commissioner of the state Department of Transportation. CLICK TITLE TO CONTINUE
Here's how Kinder Morgan Inc. keeps the growth train rolling
Since 1997, Kinder Morgan Inc has spent about $26 billion to acquire energy infrastructure assets. However, the company doesn't buy to build an empire. These deals are designed to fuel growth not just today, but well into the future. That's evident by the two deals the company has announced so far this year.
A few weeks ago, it announced it was acquiring a pipeline company in the Bakken shale for $3 billion, and just this week, it announced a $158 million deal for several oil and biodiesel terminal assets. In both cases, the company bought assets that immediately boosted cash flow while also providing a growing stream of cash in the future from built-in growth. This upside from acquisitions provides investors with confidence that the company can deliver on its expected dividend growth over the next few years.
A look at the latest deal
On the surface, Kinder Morgan's most recent purchase looks like a tiny deal. It's paying $158 million for three terminal sites in the U.S. and an undeveloped piece of land. That's really pocket change for the $130 billion behemoth. However, the company sees the deal as immediately accretive to its earnings, which will further strengthen an already rock-solid divided. The deal also adds to the company's leading North American terminal position, which is detailed on the following slide. CLICK TITLE TO CONTINUE
Plans for Berkowitz building moving forward
NEW BRITAIN — Plans to develop the vacant and dilapidated Berkowitz Building are moving forward.
The Common Council Wednesday night refered a proposal for the building to its Planning, Zoning and Housing Subcommittee, which will soon get a presentation from Hartford developer Douglas Bromfield. The council will vote on the plan within the month.
Mayor Erin Stewart said Bromfield, who is affiliated with Capital Restoration Inc., is looking to put retail on the first floor of 24-552-square-foot building and residential units on the top three floors.
In addition, city officials said, the plan calls for Bromfield to not only purchase the Berkowitz Building, located at 608 Main St. near the entrance to Little Poland, but also several more parcels on Main Street and two on nearby Beaver Street. Bromfield’s initial plans calls for construction of a new building on Main Street next to Berkowitz that would also include retail and residential. There might also be a third building constructed nearby, officials said.
Bromfield, officials said, will buy the property for $130,000. The city purchased the 100-year-old building for $22,000 in May 2012 from David Weinberger of New York.
The building was last appraised at about $235,000.
Bromfield was not available for comment Wednesday. City officials said renovation and construction should begin later this year. The deal requires the building being repaired within two years of the sale.
The plan has the support of most council members. CLICK TITLE TO CONTINUE
Formica pushes for improvements for traffic at exit 74 by state DOT
Hartford — In a brief presentation on a bill to improve Exit 74 of Interstate 95 in East Lyme, state Sen. Paul Formica, R-East Lyme, told the Transportation Committee his aim was to inform them of existing Department of Transportation plans for the exit - plans that Formica has said he hopes to see prioritized during the legislative session.
"Transportation seems to be (the) number one issue in the entire legislature right now," said Formica.
Gov. Dannel P. Malloy announced at the beginning of his term that he intended to emphasize improvements to the state's transportation infrastructure during the 2015 legislative session.
The Exit 74 and 75 area of I-95 in East Lyme is a hotspot for car accidents and sits near the proposed Gateway Commons, a commercial and residential village being planned by developers Simon Konover Co. of West Hartford and KGI Properties of Providence.
The overall project comprises 425,000 square feet of retail space, including one anchor store near Exit 74; roadway infrastructure improvements; and a residential component of 280 rental units, which is currently under construction near Exit 73.
The bill would require DOT to widen the four-lane Route 161 overpass that crosses I-95 to six lanes, and reroute exit ramps. Formica has said that the DOT already has plans to make the repairs and alterations. He said after the hearing that, in the short term, he would ideally like to see DOT straighten out the Exit 74 off-ramp from Route 161 to I-95 South, and see a Frontage Road added to the exit ramp to bring drivers to the site where a Costco store is planned to be built as part of Gateway Commons. Formica's presentation followed the release Tuesday of a plan the state House and Senate Republicans' proposed for funding transportation improvements. The proposal includes provisions to reserve a set amount of General Obligation Bonds to be used for transportation projects, and preserve current Special Tax Obligation bonds dedicated to transportation. CLICK TITLE TO CONTINUE
Ansonia makes $1M road construction commitment to Farrel Corp.
ANSONIA >> The city has stepped up to save the last remaining operational branch of the historic Farrel Corp. — a mainstay on Main Street for more than 160 years — from closing shop here.
The Board of Aldermen unanimously voted during its meeting this week to accept the deed to the property and construct a $1 million access road that will enable the Farrel Pomini company to consolidate operations into the new Fountain Lake Commerce Park across town.
Corporation Counsel John Marini said without the city stepping in, the company would likely have hit the road, as it ran into a financial impasse, unable to fund the road project itself. “This is a serious commitment (on the city’s part), and Farrel very well could leave the city forever, and that would be a catastrophe,” Marini said. “The city is making a commitment to build this road and it’s our hope it will be 100 percent grant-funded. This is an opportunity to grow business in Ansonia and grow our Grand List. Of course, there’s always risk involved, but we will realize additional tax revenue” as the company expands and adds employees.
Marini said the city is pursuing grant money to fully fund the road and doesn’t intend to leave taxpayers on the hook for the bill. Ansonia already has a $500,000 state Urban Act Development grant in place which could be used if other grant funding isn’t found, but Marini, Mayor David Cassetti and Economic Development Director Sheila O’Malley are fairly certain they will get the $1 million to pay for the road.
“We need to forge a partnership with Farrel to keep them here,” O’Malley said. “And we feel confident we can get the grant money.”
City officials, last fall, traveled to the regional office of the federal Economic Development Authority in Philadelphia to lobby for funds to help build up Fountain Lake.
O’Malley explained it was necessary for the aldermen to vote to transfer the property deed to the city to enable the city to actively pursue grants. CLICK TITLE TO CONTINUE
Construction firms add 39,000 jobs in January
Construction employers added 39,000 jobs in January and 308,000 over the past year, reaching the highest employment total since February 2009, as the sector’s unemployment rate fell to 9.8 percent, according to an analysis by the Associated General Contractors of America. Association officials said the job gains come as most construction firms report plans to expand headcount this year, but worry about growing shortages of qualified workers.
“Contractors have stayed busy this winter and expect to keep hiring through 2015 — if they can find the workers they need,” said Ken Simonson, the association’s chief economist. “The list of projects is growing in most states and most nonresidential segments, in addition to continuing strong demand for apartment buildings.”
Construction employment totaled 6.3 million in January, the highest level in nearly six years, with a 12-month gain of 308,000 jobs or 5.1 percent, Simonson noted. Residential building and specialty trade contractors added a combined 20,100 employees since December and 162,400 (7.2 percent) over 12 months. Nonresidential contractors — building, specialty trade, and heavy and civil engineering construction firms — hired a net of 18,600 workers for the month and 145,600 (3.9 percent) since January 2014.
The number of workers who said they looked for work in the past month and had last worked in construction fell from 1.045 million a year earlier to 811,000 — the lowest January mark since January 2000. CLICK TITLE TO CONTINUE
Drop in construction costs ends three year run of rising prices
Construction costs fell in January, bringing a halt to three years of rising prices, according to IHS and the Procurement Executives Group (PEG). The headline current IHS PEG Engineering and Construction Cost Index (ECCI) dropped to 48.8 percent in January, down from 52.7 percent in December, the lowest level since January 2012.
The current materials/equipment price index registered 47.2 percent in January, the softest reading on record, and down from 50.2 percent in December. Nine of the 12 individual components registered falling prices in January, led by copper-based wire and cable, carbon steel pipe and freight rates. January’s plunge into negative territory was a particularly notable reversal for fabricated structural steel and alloy steel pipe — both of which had seen rising prices over all of 2014. Of the remaining subcomponents, only ready-mix concrete, turbines and pumps and compressors tallied rising prices.
“After three years of rising prices, North American construction costs reversed course in January,” said Laura Hodges, director, IHS pricing and purchasing service. “While eye-opening to some, this soft reading really isn’t a surprise: it reflects a trend that’s been building over time. Prices are being tempered not just by the recent drop in oil prices globally, but by a combination of other factors, including softness in global demand and a strong U.S. dollar.”
Labor Costs Flat to Slightly Higher in Most Regions
The current subcontractor labor index eased to 52.4 percent in January, down from 58.6 percent last month. CLICK TITLE TO CONTINUE
Mixmaster a priorit, Malloy wants intersection replaced soon
WATERBURY — Gov. Dannel P. Malloy is going to propose speeding up the replacement of the Mixmaster as part of his 30-year master plan for modernizing the state's transportation system.
Malloy made his intentions known Wednesday during an appearance in Waterbury to announce the release of $30 million in local road funding. He said the state Department of Transportation is going to move forward on the necessary environmental review and design work to get the Mixmaster project ready. "What we are doing is beginning the process, the initial environmental and design work, to actually give us a firmer plan, but this is a multi-billion-dollar project, and we are beginning the work on it, " Malloy said. The DOT had previously slated the Mixmaster project for completion almost a half-century down the road.
"It needs to be replaced, and it needs to be replaced not in the distant future, but relatively soon," Malloy said. The governor declined to get more specific about the project's new timeline. He is set to unveil a master transportation plan to the legislature and the public next week, and he said it will spell out the anticipated construction schedule.
The governor's office reported Tuesday that Malloy would only be discussing the $30 million in local road funding at his Waterbury event. The unexpected announcement concerning the Mixmaster was a prelude to the master plan's unveiling.
Waterbury Mayor Neil M. O'Leary only learned of the administration's intention to expedite the Mixmaster project from DOT Commissioner James Redeker just before Malloy's news conference.
"This was kind of news to us today, but we did have a heads-up that there were some real issues, particular to the Route 8 interchange where it hits 84," O'Leary said.
He was referring to the findings of a DOT inspection of the Mixmaster last month. Its purpose was to help determine whether any maintenance work is necessary.
The Mixmaster project will consist of reconfiguring the geometry of the Route 8 and Interstate 84 interchange, notorious for its cumbersome left-lane entrance and exit ramps.
Malloy said the DOT's earlier estimated budget of $1.3 billion is outdated The environmental review and design work will provide a more solid cost figure, he said.
The DOT had previously prepared a pair of design plans for the Mixmaster's replacement. O'Leary said it is important to settle on the right design plan for Waterbury, and he and city staff with be meeting with Redeker possibly as early as next week to discuss it.
"There is going to be a lot discussion in a short period of time," he said.
O'Leary said he was also encouraged to hear Malloy recommit Wednesday to widening I-84 to three-lanes west to the New York border. The I-84 corridor through the western part of the state carries 125,000 vehicles on an average weekday. I think today was a very good day for Waterbury," O'Leary said. The mayor's office sought to alleviate concerns regarding the city $19.5 million plan to redevelop sections of Freight, Jackson and Meadow streets and construct a riverside trail between Eagle and West Main streets.
THE FEDERAL GOVERNMENT is providing $14.4 million through a transportation grant, not including the trail portion of the revitalization project. The city's share is $5.1 million. The Board of Aldermen has yet to authorize that bond funding. One of the local concerns is that reconstruction of the Mixmaster will mean tearing up work done on the greenway and downtown road project.
The city has received "an absolute commitment" from Redeker that nothing related to the Mixmaster's reconstruction is going to affect that project going forward, said Kevin M. DelGobbo, O'Leary's chief aide. He said Redeker also committed that DOT will coordinate with the city.
There was no immediate response from the DOT to a request for confirmation of those representations. Additionally, O'Leary intends to make sure the DOT process for the replacement of the Mixmaster and the I-84 improvements will be transparent and involve residents and stakeholders in Waterbury, DelGobbo said.