November 10, 2015

CT Construction Digest November 10, 2015


Expanded minority set-aside goals roil municipalities, contractors

The state mandate that was effective Oct. 1 to extend minority-contractor inclusion to municipal public-works projects involving state dollars is drawing skepticism from contractors and small-town administrators.
Contractors and their proponents publicly doubt that the state human-rights agency assigned to ensure vendor compliance with the new rule has the skill and staffing to do the job effectively.
But the state Commission on Human Rights and Opportunities counters it is doing everything administratively possible to certify vendors based on their affirmative-action plan filings with the agency. The agency even was assigned — and has retrained — 10 former staffers from the state Department of Labor to whittle the backlog, says one official, who adds CHRO is prepared to ask for more staff, if necessary, to speed its work.
As state agencies have done for some time, municipalities, too, must earmark at least a quarter of a state-funded public-works contract for small business enterprises. Of that 25 percent, one quarter, or 6.25 percent, must go to a woman- or minority-owned contractor or subcontractor.
"This is not a quota,'' CHRO Deputy Director Cheryl Sharp said of the purpose of state and municipal contract set-asides. "It's a very important goal we have here, one I think contractors share. But change is sometimes difficult.''
Don Shubert, president of the Connecticut Construction Industries Association, said that while set-asides are nothing new to state contractors, this is fresh ground for municipalities. The law was passed by state lawmakers in the last legislative session. CLICK TITLE TO CONTINUE

Mansfield apts. are CT’s latest EB-5 project

A federal program that allows foreign nationals to earn a U.S. visa by making sizable American investments could provide more than half of the capital for a $20 million apartment complex under construction in Mansfield, according to the developer.
Meadowbrook Gardens, which is preleasing for spring 2016, is awaiting final approval in the coming months to accept foreign capital under the U.S. Citizenship and Immigration Service's EB-5 program. Fairfield County realty developer Zhifeng "Jack" Yang hopes to secure a total of 24 Chinese investors to chip in $500,000 a piece, for a total of $12 million, or 60 percent of the project's budgeted cost.
The apartments would be the second Connecticut EB-5 project to come online since seafood restaurant Nixs opened last year on Front Street in Hartford, with the help of approximately $1 million from several Asian investors seeking U.S. green cards.
Created in 1990, EB-5 has been sparsely used in Connecticut, although that could be changing as an increasing number of federally approved "regional centers" have come online in recent months. The centers, like Yang's, help foreign investors seeking a green card to find investment opportunities in the U.S.
Laying the groundwork
EB-5 projects take a long time and have a lot of moving parts, according to Yang, a Chinese native who is a Westport resident and partner in Richfield Real Estate Investment. Yang has a finance degree from Hunan University in China and an MBA from George Washington University in Washington, D.C. CLICK TITLE TO CONTINUE

Union Leader: Support Us -- Or MGM

Joseph P. Toner, president of the Greater Hartford/New Britain Building and Construction Trades Council, released a letter to state Sen. John A. Kissel Monday morning that pretty much sums up what union folks think about a third casino in the state:
"...either you support the effort to preserve and create Connecticut jobs or you support MGM, the multi-billion dollar, Nevada-based corporation that's trying to take our jobs away."

Farmington Board OKs Zoning For 268-Unit Apartment Complex Near Union School

FARMINGTON — The town plan and zoning commission on Monday unanimously approved a zoning regulation amendment that will allow a proposed 268-unit apartment complex next to Union School.
Commission members said before the vote that they struggled to weigh the benefits of the $60 million, 268-unit complex proposed by CenterPlan Development against the concerns raised by residents. They agreed that the project, as presented, has more positives than negatives.
The commission also said it was encouraged that the plan, slated for 10 acres next to the school and bordering the Farmington River, had received unanimous approval from other town boards and commissions.
"I think we're doing what's right for a currently blighted and … polluted piece of property," commission Chairman Philip Dunn said. "This is the only development in 10 to 15 years proposed for this property and it appears to be the only viable development."
The project's approval comes with a slew of conditions set by the commission, including construction and cleanup regulations, environmental preservation stipulations and requirements that developers provide both town and school staff with biweekly progress reports and maintain a website, updated weekly, where people can learn about the project.
Before the commission's vote, it was standing room only in the town council chambers as about 15 people, most of them opposed to the plan, addressed the council during a continuation of a public hearing from Oct. 26. They repeated their concerns about traffic in the Perry Street area and safety for students at Union School. They also said that the proposal would change the character of the Unionville section of town. CLICK TITLE TO CONTINUE

State to pay $1.5 million to fix Stamford garage slated to be torn down

STAMFORD — The crumbling train station garage set to be demolished and replaced with a hotel, retail and office complex will first be repaired, to the tune of $1.5 million.
The announcement from the state Department of Transportation prompted questions about whether the $500 million deal to build 600,000 square feet of commercial office space, retail shops, housing and a hotel around the station is also falling apart. The state unveiled the development plans more than two years ago but has yet to sign a contract for it.
“It says to me something is wrong with the deal, or they’d just keep (the garage) closed,” said Jim Cameron, a longtime rail advocate and founder of the Commuter Action Group.
The state has been mum about the negotiations with the station's developers, a group led by John McClutchy of JHM Group. It has kept its discussions under wraps and not much has been revealed about why it has taken so long to sign a deal. The state had to close half of the parking structure in the spring for safety reasons when chunks of concrete started falling out of its ceilings.
“It’s confusing,” said Joseph McGee, vice president of public policy and programs for the Business Council of Fairfield County. “The question is why? Why not just move forward with tearing it down?”
Judd Everhart, a DOT spokesman, said Wednesday the contract negotiations are continuing.
When asked Wednesday if the deal is still happening, Everhart responded by email, “At some point sooner rather than later, we hope.”  CLICK TITLE TO CONTINUE