March 17, 2015

CT Construction Digest March 17, 2015

Malloy proposes transit authority for train station projects

HARTFORD -- A plan by Gov. Dannel P. Malloy to create a statewide transit authority to oversee development of train stations is drawing opposition from officials and advocates worried about losing local control.
"Were Dannel Malloy still mayor of Stamford, he would scream bloody murder if a bill like this was introduced in Hartford," said James Cameron, founder of the Commuter Action Group.
"As governor, he seems to have no qualms at telling 169 towns and cities he knows best, that Hartford will determine if skyscrapers built by private developers should be plopped down in your town and mine," Cameron said.
Malloy is backing a bill now before the General Assembly that would create the Connecticut Transit Corridor Development Authority, a quasi-state agency charged with redeveloping existing train stations and building new ones, such as a second station proposed for Bridgeport.
The transit authority could use eminent domain to seize property within a half mile of a train station, sell bonds to finance a project, enter into agreements for management and work to create new office and retail space, parking garages and cultural attractions.
The authority would have an 11-member board appointed by the governor, the General Assembly's leadership and select state agency commissioners. The mayor or first selectman in a city where a project was underway would serve as a non-voting officer.
But the specter of state government running a train station project -- and handing another state agency eminent domain power -- has some local officials up in arms.
"This bill strips local elected officials of the powers vested in them and transfers those powers to a board of political appointees who have no responsibility to act on behalf of local residents," said State Rep. Gail Lavielle, R-Wilton. CLICK TITLE TO CONTINUE

$42M upgrade approved for Groton water facility

Groton - A special freeman's meeting on Monday voted 16-1 to move forward with plans to spend about $42 million to upgrade and modernize the city's aging water treatment facility. The city plans to enter into an agreement with the state under the Drinking Water State Revolving Fund, in which the city would borrow money from the state and the state would issue the bonds. Monday's authorization replaces a vote last year which authorized $34 million for the 20-year project.
The project cost increased for three main reasons, said Richard Stevens, manager of the water division for Groton Utilities. First, engineers recommended the project include a 22 percent contingency fund - higher than the typical 10 to 12 percent - to serve as a buffer in case of unforeseen expenses. The project also required additional construction services, he said. Finally, the city opted to install two medium-sized emergency generators rather than one large generator, and replace valves in water mains.
Mayor Marian Galbraith said the city qualifies 30 percent in loan forgiveness from the state, which would leave the city with just under $30 million in debt to repay despite the higher overall costs, she said. The impact on utility customers will not be known until the bond commission authorizes the bonds, Galbraith said. If the request were denied, she said the city would not borrow the money on its own but would revisit the project and get it done in stages, Galbraith said. CLICK TITLE TO CONTINUE

Norwich part of Norwich Hospital site is cleared for sale

 Norwich — Legal and contractual issues that have held up the sale of the nearly 50-acre Norwich portion of the former Norwich Hospital property appear to be resolved, and developer Mark Fields said Monday he planned to sign the contract. "The property is zoned for a wide variety of uses," Fields said. "It's just the matter of what the market can bear, and what's the best use of the property."
Fields, a member of Thames River Landing LLC, the development firm that reached an agreement with the state to buy the abandoned property in 2013, said a closing date to finalize the purchase has not been set. Once he obtains the property, he plans to seek financing for the environmental cleanup and work on potential future development. The Norwich contract progress comes as Preston officials this week are meeting with a team of real estate experts from the Counselors of Real Estate that is studying marketing and potential uses of the renamed Preston Riverwalk property. The CRE team this week is touring the property and interviewing town and regional leaders and will present its report publicly at 9 a.m. Friday at the Hilton Gardens Hotel on Route 2 in Preston.
Unlike Preston, which took over ownership of the 393-acre former hospital property in that town, Norwich declined to take ownership of the Norwich portion, leading the state to sell it as surplus property with the developer to take responsibility for the environmental cleanup and demolition of the decaying buildings. The state had approved Thames River Landing LLC's proposed purchase of the 49.65-acre property for $300,000 in summer of 2013, but development partner Ronald Shelton of Farmington died a month later. CLICK TITLE TO CONTINUE

Latest development plan for Oswegatchie Hills calls for 840 housing units

East Lyme - Following the town's revision of its affordable housing rules two years ago, Landmark Development is now outlining "the parameters" of plans to build a residential complex within the Oswegatchie Hills near the Niantic River.
The Middletown-based company, under developer Glenn Russo, submitted an application to the town this month to rezone 123 acres within the hills into an affordable housing district. The plan designates 36 acres for development and the remaining 87 acres for open space.
The master plan for "Riverview Heights," a multi-family residential complex on Calkins Road, calls for 840 residential units housed within 24 buildings.
The land parcel proposed for rezoning represents more than half of the 236 undeveloped acres in the hills owned by Landmark Development Group LLC and Jarvis of Cheshire LLC. The application does not propose changes for the remaining 113 acres.
The developer's application is the latest step in response to a 2011 state Superior Court ruling in an appeal case brought by the developer after the Zoning Commission denied parts of a 2005 affordable-housing application for the Oswegatchie Hills.
Over more than a decade, Landmark has submitted multiple affordable-housing applications and appealed several town decisions in court.
When the Zoning Commission denied parts of Landmark's affordable application submitted in 2005, Landmark appealed.  CLICK TITLE TO CONTINUE

Biggest stadium construction challenge: Transparency

What's the biggest challenge in building a baseball stadium in Hartford? It's not so much the physical difficulties. After all, construction companies are used to building in challenging environments. Nope, the biggest challenge is the increased scrutiny. Every step of the way this project is going to be under a microscope.
That's the honest assessment of Bob Landino, CEO of Centerplan Cos. of Middletown. His firm is overseeing the construction and development of the new Double-A baseball stadium in downtown Hartford for the yet-to-be-named New Britain Rock Cats.
"It's more than we are used to on a construction site," Landino said of the heightened attention that comes with building a publicly financed ballpark.
The increased oversight doesn't impact the construction schedule per se, but it does require additional staff to inform the stakeholders (i.e. local government, the media, and the public), adding to the project's overall costs.
"That's a big nuance that requires special attention. If we were building a high school or public safety facility, they don't go through this kind of scrutiny," Landino said. "It's the nature of how it was originated and evolved. It's been a subject of public interest."
The final cost of the Downtown North development, including the ballpark, housing, retail and office space and parking, is expected to be $350 million.
The ballpark itself, which is being financed through a stadium authority, will cost $56 million. Centerplan is being paid to construct the stadium, but won't have an ownership stake in it.
Landino said any baseball stadium project would be of intense interest, even if private dollars were financing it. "We are comfortable with the transparency. We are in a fish bowl because of what it is and where it is," he added. CLICK TITLE TO CONTINUE