Transportation financing precarious despite new revenue
Despite the recent infusion of sales tax receipts, Connecticut’s transportation program could be in deficit by mid-2018, according to nonpartisan analysts.
And while Gov. Dannel P. Malloy’s administration believes the Special Transportation Fund will remain in the black through 2020 — albeit by a razor-thin margin — nonpartisan analysts cite several problems, including surging debt and pension costs and downgraded expectations for fuel tax revenues.
And if the governor and legislators — who are also struggling with big deficits in the rest of the budget — raise more revenues for transportation next year, they could find themselves in an all-too-familiar place: Under pressure to avoid general fund tax hikes, yet in tempting proximity to a transportation program flush with new cash.
The Fiscal Accountability Report nonpartisan analysts issued recently — a lengthy document analyzing a wide array of short- and long-term budget trends — projected the Special Transportation Fund would slip 2 percent into deficit, or $34 million in the red, in the 2018-19 fiscal year. And that shortfall would grow to 5.2 percent or $97 million by 2019-20.
Just six months ago, when Malloy and legislators dedicated sales tax receipts to finance a “five-year ramp-up of transportation spending” from 2016 through 2020, analysts estimate the program would enjoy surpluses all five years, topping $170 million in 2019 and 2020.
At the same time, the governor launched a Transportation Finance Panel to recommend how to finance increased spending on transportation for an additional 25 years, through 2030.
Malloy and lawmakers thought back in June they had placed the transportation fund on solid footing at least for the next five years when they promised it a share of Connecticut’s $4.1 billion-per-year sales tax stream.
Transportation receives $159 million in sales tax receipts this fiscal year, $277 million in 2016-17 and $362 million in 2017-18. Because officials canceled the transfer of some other general fund revenues normally dedicated to transportation when they reassigned sales tax dollars, there still was a net gain for transportation. CLICK TITLE TO CONTINUE
Berlin police station project revived
BERLIN — Talks regarding the construction of a new police station have been ongoing for more than a decade, and yet, the question remains — will one eventually be built?
A year ago, a planned $21 million station, to be constructed at 903 and 913 Farmington Ave., was easily defeated at referendum. However, the project did not die that night, but has since been reworked. The Police Commission revised its Statement of Needs, and the Public Building Commission, taking a “design build” approach, is now ready to receive insight and bids on the project once again.
Mayor Mark Kaczynski said the bid process will provide town officials with a better idea what the price tag may be.
“There’s no question that we need to do something for our police department to give them more space, the question is what?” he said.
The department has been in search of additional space since 1995. When the department moved into its current spot it had 18 officers. 40 years later, it now has 42 officers, nine dispatchers and four support staff.
The failed $21 million project would have built a 34,000-square-foot station. When it revised its Statement of Needs, the Police Commission reduced the necessary building size by nearly 5,000 square feet. CLICK TITLE TO CONTINUE
Toll Bros. doubles down on Bethel
In a real estate market where most investors are building high end luxury apartment complexes to meet increasing demand for rental units, one national developer is bucking that trend with plans for a single-family house development near the heart of downtown Bethel.
Despite a hot rental market and stagnant sale prices for single family homes in the region, construction is already well under way on Bethel Crossing, a Toll Brothers development that will include 71 two and three-bedroom homes on about 25 acres and starting in the $400,000 price range.
Developers said the downtown location, and the desirability of the Bethel community, led to the decision to build houses rather than apartments on the property.
“We believe there is a lot of demand for housing in the town of Bethel,” said Jack Lannamann , the district manager for Toll Brothers. “It’s the third community we’ve built in town and we didn’t want to pass up the opportunity to get into another project with a reasonable price range. We believe the market is still under served.”
Bethel has led the rest of Fairfield County in home sales in recent months. And as many towns in the region are losing population, Bethel continues to attract new residents.
According to Berkshire Hathaway’s third quarter real estate report, single family home sales in Bethel rose by more than 90 percent with 56 homes sold during the quarter. Median sales prices for single family homes also increased by about 3.4 percent during the quarter, according to the report, while median prices throughout the county declined by about 4.3 percent during the same period. CLICK TITLE TO CONTINUE
UConn-Avery Point begins demolishing former Coast Guard training center
Groton – The University of Connecticut at Avery Point has begun demolishing the former Coast Guard training center and will create a terraced, landscaped green space in its place for students and others to enjoy the campus’ expansive water views.
“It should dramatically open up some of the views into the campus, even off of Shennecossett Road,” said Joseph Madaus, interim campus director.
The cinderblock training center near the center of campus, built in the early 1940s, has been vacant since 2006, Madaus said.
“It was an older building that’s not usable (and) eventually could present a safety concern,” he said.
UConn-Avery Point, with a focus on marine and maritime studies, was once considered a feeder school to the main campus and strictly for commuters, but reported in September that more students were applying to the campus as their first choice and more were living in off-campus housing. The campus had 98 students registered with off-campus housing in 2008, and expected 200 students this year.
Demolition of the 90,000-square-foot former training facility became noticeable in the last two weeks, but the project started in May. Utilities and electrical lines for UConn-Avery Point’s other campus buildings run under the training center and had to be rerouted, said Stephanie Reitz, UConn spokeswoman.
The project was budgeted at $7.3 million, but is expected to come in under budget at closer to $6 million or $6.5 million, Reitz said. CLICK TITLE TO CONTINUE
Amtrak, state reach agreement on $570M Hartford line
The state and Amtrak have reached an agreement to complete the Hartford rail line, receiving guaranteed agreements for cost ceilings and a clear timetable for work completion. The State Bond Commission next week will vote to approve $155 million in funding to complete construction of the future Hartford Line, a final installment to upgrade the line and launch expanded rail service between New Haven and Hartford.
This action brings the total funding for programs in this corridor to $643 million – $208 million of federal funds and $435 million of state funds. The cost for the upgrade of the Hartford Line is $570 million.
The completed Hartford Line will triple the number of trains between New Haven and Hartford and double the service between Hartford and Springfield. Four station projects are in construction and due to be completed prior to the launch of service, while critical fiber optic signal cable and communication nodes are installed along the corridor to power a brand new signal system.
An additional $73 million is being spent on related corridor investments, including adding a platform at the State Street station, renovations at the Berlin station, continuing the design of five new stations along the corridor, and studying the realignment of the line in Hartford as part of the overall I-84 viaduct alternatives.
Current program estimates indicate that construction on the future Hartford Line
Connecticut senators, advocates hail federal transportation bill in New Haven
NEW HAVEN >> Flanked by construction workers and transportation advocates Friday at New Haven’s Union Station, Connecticut’s U.S. senators cheered passage of a major federal transportation spending bill approved Thursday by the House and Senate.
Sens. Richard Blumenthal and Chris Murphy, both Democrats, said the five-year, $305 billion measure will give Connecticut millions of dollars and will create construction jobs.
“It is a guaranteed stream of investment, putting folks to work,” Blumenthal said. “It’s about jobs and economic growth and making sure we avoid the patch-and-pray approach that we have had for far too long on our rails and roads.”
To the left and right of the senators, construction workers held up large signs touting the job benefits of the bill.
“We’re ready to go to work,” said Don Shubert, president of the Connecticut Construction Industries Association. “We’ve been waiting a long time for this.”
Blumenthal called the federal bill a “down payment” and said it will give the state the financial certainty it needs to embark on long-term projects.
The state Department of Transportation and at least two transportation advocacy groups also praised the length of the funding measure.
State DOT spokesman Kevin Nursick said the increase in funding was welcome news, as was the continuation of funding for buses in urban areas.
“Most importantly, a five-year bill provides a foundational basis for planning and advancing projects – something that has been absent from the program for the last several years,” he said in an email. CLICK TITLE TO CONTINUE
Mixmaster replacement cost estimates vary widely
HARTFORD — The projected $7.1 billion price for replacing the double-decker Mixmaster interchange in Waterbury is an inexact estimate of the mega-project's cost.
The state Department of Transportation developed a rough figure from a planning study completed more than six years ago during the administration of Gov. M. Jodi Rell.
"We simply updated the old planning study estimate to adjust for inflation," said Thomas J. Maziarz, the DOT's chief of policy and planning.
DOT Commissioner James Redeker called the $7.1 billion estimate reliable and reasonable for planning purposes.
A firmer cost figure is likely years away until the replacement project draws nearer to construction.
The $7.1 billion estimate was included in the 30-year, $100 billion transportation modernization plan that Gov. Dannel P. Malloy unveiled in February.
The replacement of the Mixmaster is one of the initiative's priciest components because the crossroads of Interstate 84 and Route 8 is considered one of the most complicated highway interchanges in the state.
The Mixmaster is the only double-decked highway bridge in Connecticut, Maziarz said. It is also notorious for its cumbersome left-lane entrance and exit ramps.
Nailing down the replacement project's costs is also tricky business.
Over the last 10 years, the DOT has quoted estimates of $1.3 billion, $2 billion and $3 billion for replacing the network of stacked highways, bridges and ramps that connect Route 8 and I-84.
Four months ago, Malloy stated the cost could run as high as $10 billion based on what he said then was the latest estimate.
The DOT continues to use the $7.1 billion figure. It served as the basis for an economic analysis released last month that project would increase business sales $8.8 billion over the long haul.
At this time, there is no construction timetable. Like a firmer cost estimate, that also appears years away.
First, the Mixmaster must be shored up because of its deteriorating condition. DOT officials recently outlined a $190 million rehabilitation project during a public presentation in Waterbury. CLICK TITLE TO CONTINUE
Nonnewaug High renovation project gains momentum
WOODBURY — An extensive renovation of Region 14's Nonnewaug High School, a renovation that spent the last two years mired in legal wrangling, could begin in the summer of 2017 if a timeline projected by school district leaders holds up.
The Region 14 school district released a Request for Proposals on Nov. 25 seeking a firm to handle architectural design and engineering aspects of the project.
That request outlines an anticipated timeline of the project through completion.
A design team is expected to be named early in the new year, by Jan. 4, 2016. Various aspects of the design process are expected to be concluded over the rest of that year.
The project is then expected to go out for bids by April 15, 2017, with construction beginning by June 1, 2017. The school will remain in use throughout renovation work.
Students won't be moved elsewhere, and district leaders don't anticipate using portable or temporary buildings.
The renovated and expanded high school is then expected to open its doors for the 2018-19 school year.
"I'm excited and inspired about moving forward without any hindrance," said Board of Education Chairman George Bauer.
District officials were optimistic that the project will remain on track with the projected timeline.
"I think we've got a very strong building committee with a lot of experience and background," said Region 14 Director of Finance and Operations Wayne McAlister. "I'm confident that they will bring it in on time and under budget." CLICK TITLE TO CONTINUE
Torrington: O&G Industries receives Community Service Award
Torrington >> O&G Industries, Connecticut’s largest privately-held construction firm, received the CCIA’s (Connecticut Construction Industry Association) Community Service Award for the company’s annual Toy Drive Campaign, according to a statement issued by the company Dec. 3.
The award recognizes the efforts of Lynn Robotham who manages the Torrington Area Youth Service Bureau’s Toy Drive; and the team of Sharon Okraska, Terry Creighton, Anna Mae Wiegold and O&G retiree Shirley Durante who work year-round on the Torrington Fire Department’s Christmas for Children Toy Drive. In total, O&G provided over 800 toys to the two Torrington-area non-profits in 2014.
In a statement earlier this year, Torrington Area Youth Service Bureau Executive Director Tom Donaldson said, “If it wasn’t for companies like O&G – who took close to 150 names to buy gifts for – we just plain couldn’t do this.”
Last year marked the 26th year O&G supported the Torrington Fire Department’s Christmas for Children Toy Drive and the ninth year the company supported the Torrington Area Youth Service Bureau’s Toy Drive.
This is the second consecutive CCIA Community Service Award for O&G and the companies’ third CCIA win in the last four years. O&G was recognized in 2014 for its PlattBuilds program and in 2012 for its Teacher of Teachers program.
O&G Industries (“O&G”) is one of the Northeast’s leading providers of construction services and products. Our resume includes over 1,000 highly-skilled construction industry professionals, 1,900 pieces of the industry’s most well-maintained equipment and nearly a century of construction industry knowledge spanning numerous client-industry segments. Combined with a broad portfolio of services and products, O&G is uniquely positioned as one of the most diversified construction companies in the region. O&G is headquartered in Torrington.