February 17, 2015

CT Construction Digest February 17, 2015

East Hampton building panel searching for new project manager

EAST HAMPTON >> Having made the decision to sever their connection with the existing project manager, the High School Building Committee on Thursday began the search for a new management firm. The committee also reviewed a list of some two-dozen proposals to reduce the size and scope of the $51 million renovation project in an effort to mollify state officials.
But committee members — and even the project architect who drew up the list — said implementing many of the changes would gut the heart of the project. The committee also struck back at some of the critics who have attacked both the project and the committee members in recent days.
In particular, council vice chairwoman Michele Barber expressed her contempt for what she said were, in some case, “factually untrue statements” made by certain critics. In an effort to combat those charges, the committee asked Superintendent of Schools Diane Dugas to work with committee members Cynthia Abraham and Michael Zimmerman to prepare a fact sheet about the project.State officials have complained the school is too big given enrollment projects and have said the town must reduce the size of the school from 118,000 square feet to just under 99,000 or risk losing up to $7 million in promised state reimbursements.
While the committee continues to struggle with that issue, it instructed Town Manager Michael Maniscalco to dismiss for cause within 30 days the project management firm Capital Region Education Council. Committee members have complained information and required documents connected to the project were not submitted to the state in a timely manner.
But they would not answer questions Thursday about the specific reasons why CREC is being dismissed. The committee did establish a two-member subcommittee, made up of Abraham and Stephen Karney, to begin the search for a new project manager.
Meanwhile, Glenn R. Gollenberg, a principal at the SLAM Collaborative, the project architect, offered a wide variety of options to reduce the side and/or scope of the project.
Variously, Gollenberg suggested adding the eighth grade to the high school to increase enrollment or not demolishing the 1950s-era wings of the school, which would also eliminate a proposed circular drive behind the school.  CLICK TITLE TO CONTINUE

These employers say race still rates in hiring ex-cons

Rochelle and Rollo W. Jones Sr., owners of Capital Masonry in Hartford, are fervent that men and women with past run-ins with the law should have a second chance in life, starting with a good job.
So much so, they convinced the city, in collaboration with Capital Workforce Partners' Hartford Jobs Funnel initiative, to contract with them to teach masonry skills last summer to 15 ex-convicts while satisfying the city's need to repair or install sidewalks in the city's North End. They say they have been paid to conduct similar training programs for the unemployed and underemployed, including ex-offenders, since 2008.
The Joneses' applaud the governor's promotion of "Second Chance'' initiatives that, among other things, urges all Connecticut employers and housing providers to help ex-offenders productively reintegrate into society.
But blunt-talking Jones Sr., a bear of a man who built his business with his bare hands, and Rochelle Jones, a former teacher and assistant principal in Hartford's school system, aren't ones for mincing words. Hiring "re-entrants,'' they say, also is a race issue.
Such reform initiatives would stand better chances, they say, if race was fully acknowledged as the 800-pound gorilla in the room everyone pretends not to notice. It's a pattern the Joneses say they've seen all too often in and around Hartford, and the chief reason they're skeptical about the latest pitch to help ex-offenders find meaningful work.
Most employers couch their reluctance, Jones Sr. says, about hiring former prisoners amid concerns for the safety of their customers and employees.
"I don't see it as much as they're ex-convicts,'' Jones Sr. said, "as much as they're black and Hispanic.''
Hartford City Council President Shawn T. Wooden keynoted the City Hall graduation ceremony last June for the 15 Job Funnel graduates, all but two of whom now work construction. Wooden describes the Joneses as "passionate and persistent about a program that did training and mentoring,'' adding he sees the Jobs Funnel-Capital Masonry training partnership as a state model.
"It can be replicated and expanded to other trades, to other industries,'' said Wooden, an attorney. "Government has to be a partner in incentivizing the private sector to engage and perform their business in a way that promotes the public good.'' CLICK TITLE TO CONTINUE

Hartford ballpark bond sale could save city $22M

HARTFORD — By Tuesday afternoon, when Mayor Pedro Segarra plants a shovel into ceremonial dirt for Hartford's ballpark, the city most likely will have the results of the controversial bond sale to pay for the venue.
The upshot will be that Hartford can finance the Double A baseball stadium, aimed at $56 million, for less than it would have paid under the earlier financing method — a lease with the developer, DoNo Hartford LLC.
How much less? Almost $1 million or more annually, but it's impossible to know exactly. In any case, the savings promise to be significant as the newly created Hartford Stadium Authority issues bonds it will repay over 26 years.
As opponents continue to say the city set up the authority too quickly and with not enough public input, let's look at the numbers.
The bonds, managed by two Wall Street firms, Jefferies & Co. and William Blair & Co., are being sold in two parts, called series: $22.7 million of taxable bonds and $37.2 million with tax-exempt gains for investors, for a total of $59.8 million after both figures are rounded down.
Under this and any debt sale, the issuer, in this case the authority, agrees to pay investors a set annual rate to pay interest and principal on what amounts to a loan. The taxable series will cost the authority more because investors pay taxes on their gains.
When combined, or blended, the overall rate is expected to come out at about 4 percent, city Treasurer Adam Cloud said. That adds up to $2.4 million a year for 26 years, a huge cut from the $4.3 million the city said it would have to pay to DoNo under the lease.
And the DoNo lease came with three bump-ups over the life of the deal. The bond payments will remain flat.
But there are other costs associated with the bonding, Cloud said, some built into the rate, others extra. They include fees for lawyers and consultants; a debt service reserve fund, basically an escrow account; principal payments; and something called capitalized interest, which is a period of two years when the city pays interest before it starts to pay down the principal.
All of that would bring the city's average annual payments to $4 million, Cloud said — less than the $4.3 million, or more precisely, $4.267 million, that the city council instructed the authority not to exceed.
Unfortunately for the authority and city taxpayers who are on the hook for the bond payments, the bond market appears to be heading in the wrong direction. The 10-year Treasury bill, a benchmark for mortgages and many long-term bond rates, hit 2.02 percent on Friday after bottoming out at 1.67 percent on Feb. 2.
Every one-tenth of 1 percentage point increase in the bond rate would cost the city an additional $59,000 a year CLICK TITLE TO CONTINUE

Seymour LoPresti School sale finalized, paving way for apartments

SEYMOUR >> The sale of the former LoPresti School to a Bridgeport developer has been finalized, paving the way for the 104-year old building to be converted into more than 40 market-rate apartments. According to First Selectman Kurt Miller, the town and developer John Guedes, president and CEO of Primrose Companies, closed the sale of the building at 29 Maple St. last week.
“It’s official. ... The sale of the former Maple Street School (the school’s original name) has just closed,” Miller posted on the town’s Facebook page. “This sale not only provides a nice boost to our Grand List, but more importantly all of the proceeds from the sale will be reinvested directly back into our existing building infrastructure to be used for much needed improvements and upgrades.” It was sold for $335,000.Economic Development Director Fred A. Messore echoed Miller’s sentiments.
“I am very satisfied the process the town has taken after LoPresti School was decommissioned,” Messore said. “The Town of Seymour benefits from the sale with proceeds getting reinvested in other town-owned facilities for structural and infrastructure updates. The sale also places 29 Maple St. on the tax rolls and sewer fees.” Messore said Guedes is a “well-qualified” developer that has worked well with the town’s staff in making this project become a reality.
Guedes said the 52,426-square-foot building will feature 42 market-rate apartments.
Miller said the building with its close proximity to downtown and local transportation will be perfect for young business professionals. Guedes had said it will also be a great fit for older couples looking to downsize. “With its location so close to the downtown, this project falls directly with in our Transit Oriented District strategy,” Miller said. “I am very much looking forward to this and some other development projects that will be coming to Seymour in the very near future.” The Planning and Zoning Commission last December gave Guedes the green light to convert the building, granting him a needed zone change from residential to multifamily. CLICK TITLE TO CONTINUE

Secretary Foxx announces infrastructure bus tour

U.S. Transportation Secretary Anthony Foxx has announced that he will launch a four-day bus tour on Tuesday, February 17. Beginning in Tallahassee, Florida and visiting five states and the District of Columbia, Secretary Foxx will hit the road to highlight the importance of investing in America’s infrastructure, and to encourage Congress to act on a long-term transportation bill.
With the Highway Trust Fund once again nearing insolvency and federal funding for transportation projects set to expire at the end of May unless Congress acts – just at the start of the construction season – funding for projects across the country will be put at risk while other major initiatives will be delayed because of a lack of federal funding certainty.
The GROW AMERICA Express will visit communities that have created jobs and new opportunities by investing in transportation, as well as communities with transportation projects that are waiting on much needed funding. As he travels through five states – Florida, Georgia, South Carolina, North Carolina and Virginia – and ending at Union Station in Washington, D.C., Secretary Foxx will make the case for the Administration’s plan, the GROW AMERICA Act, a six-year transportation proposal that would put more Americans to work repairing and modernizing our roads, bridges, railways, ports, and transit systems.
“Congress continues to pass short-term measures with flat funding that falls short of meeting our country’s needs,” said Secretary Foxx. CLICK TITLE TO CONTINUE

Biggest challenges construction companies will face in 2015

We recently surveyed our blog readers to determine the biggest challenges construction companies will face throughout the coming year. Readers were asked to select the two biggest challenges their construction company will endure in 2015 from the following options:
  • Landing Enough Work To Be Profitable
  • Hiring Qualified Skilled Workers
  • Increased Competition
  • Rising Insurance Costs
  • Managing Cash Flows
  • Rising Costs Of Building Materials
  • Fewer Contracting Opportunities
  • Other
When asked what their biggest challenge would be in 2015, 47% stated it that finding enough qualified workers was their number one concern. Landing enough work to be profitable was next at 31% followed by managing cash flows and increased competition both at 6% each.
Of the 47% who stated finding qualified workers would be their biggest challenge, an equal number of respondents listed landing enough work, managing cash flow and rising insurance costs as their second biggest challenge at 24% each. Increased competition and rising costs of building materials were next at 9% each.
Oddly enough, 6% of people who listed finding qualified workers as their top concern also listed finding qualified workers as their second biggest concern. I’m not sure if this was in error or if they were trying to emphasize how challenging they feel hiring skilled workers is going to be in 2015.
For the 31% who listed landing enough work to be profitable there was a four-way tie for what those folks listed as their second biggest challenge. Managing cash flows, increased competition, finding qualified workers and fewer contracting opportunities each clocked in at 23%. Rising insurance costs was next at 8%.
When asked what the second biggest challenge their company would face this year, 20% said finding enough work, 19% said managing cash flows, 16% said rising insurance costs and 14% each said increased competition and hiring enough skilled workers. CLICK TITLE TO CONTINUE