WASHINGTON (AP) — U.S. construction spending increased in January by the largest amount in eight months as weakness in homebuilding was offset by a solid rebound in nonresidential activity.
Construction spending increased 1.5 percent in January, the biggest gain since May, following a 0.6 percent increase in December, the Commerce Department reported Tuesday. The advance pushed total spending to a seasonally adjusted $1.14 trillion in January, the highest level in more than eight years.
Economists are optimistic that construction will continue to show solid gains this year, helping to boost overall economic growth.
For January, home building activity showed no gain, but spending on nonresidential projects rose 1 percent following two months of declines. Spending on government projects increased 4.5 percent with state and local and federal spending both showing gains.
The flat reading for residential construction reflected a slight 0.2 percent drop in single-family construction and a 2.6 percent increase in the smaller apartment sector.
The gain in nonresidential building was led by a 6.7 percent jump in construction of hotels and motels. Spending on office buildings was up but spending in the category that covers shopping centers fell.
Spending on state and local government projects rose 4.4 percent while spending on federal building projects increased an even bigger 5.8 percent.
The January increase in activity was bigger than economists had expected and the government also revised up December figures to show a stronger gain of 0.6 percent, rather than the initial tiny 0.1 percent rise.
Construction activity for all of 2015 showed a 10.5 percent increase to $1.1 trillion, the highest annual level for spending since 2007. CLICK TITLE TO CONTINUE
Financial consultant Jeff Smith admitted the city could only afford to borrow about $4 million for fiscal year 2017 but offered a document outlining projects and purchases that totaled $14.9 million.
The requests include everything from a $500,000 pumper truck for the fire department and $2 million for a replacement of a roof on the Gam building at Ocean Beach Park to $246,000 for new police cars and $215,000 for repairs to basketball and tennis courts.
The highest-priced single item, at $8 million, was assigned to a city’s portion of a $40 million plan to fund renovation or reconstruction of the Harbor School.
“There’s a limited amount of dollars and infinite amount of needs,” Smith said. “The first step was to get the departments heads to say 'Hey, here’s our priorities.' The next step is you folks have to make the hard decisions.”
Council President and Finance Committee Chairwoman Erica Richardson said the council was in a difficult position.
“The numbers are kind of staggering. The plan I would like to adopt is a realistic ‘This is what we can afford over the next 10 years,’ not ‘This is what we wish we could do over the next 10 years,’” Richardson said. “Something’s got to give. I know we need a lot of stuff. We’ve got to figure out what we need most.”
The Harbor School project garnered the most attention, with some councilors questioning the plans for the school. CLICK TITLE TO CONTINUE
Legislation Aimed At Getting More Communication From Siting Council
GLASTONBURY – State Rep. Prasad Srinivasan has submitted a bill to require the Connecticut Siting Council to hold a public information hearing when approved projects don't begin construction within three years of the original approval.
The legislation stems from the town's experience with the construction of a fuel cell plant in a residential neighborhood at the intersection of Hebron Avenue and Chalker Hill Road. Residents complained about the lack of information about the project that was approved in 2009. Construction began last March – six years after its original approval.
UIL Holdings Corp built the facility, which consists of a 21-foot-high, 70-foot-long structure with pipes and exhaust chimneys sitting atop a 10-foot-high concrete foundation in the middle of a residential neighborhood. The fuel cell creates electricity that is fed into the power grid.
"You can't catch people unaware and that is what happened in Glastonbury," Srinivasan said Tuesday. "And you can't show up one day and start digging up the ground and the neighbors all looking around wondering what is going on. It will lead to potential problems down the road.""I understand these are especially lean economic times and projects don't get started right away and things are put on the back burner," he added. "But you can't move it back on the front burner without telling people again. Our homes are our prized investment. It's just not right. It's not the Democratic way." CLICK TITLE TO CONTINUE
Work On Yard Goats' Ballpark Continues Apace
HRTFORD — Construction on Dunkin' Donuts Park is largely on schedule, the major players told the Hartford Stadium Authority on Tuesday.
Hartford officials, the city's construction representative and the developer all said Tuesday that they believe the ballpark will meet its March 9 milestone to have structural steel in place for the 6,000-seat minor league baseball stadium, home of the Hartford Yard Goats, a Double A Eastern League team.
Sean Fitzpatrick, Hartford's development director, told the authority Tuesday that he is confident the developer, DoNo Hartford LLC, is on track to meet the first of four milestone that were put in place after construction delays and a $10.4 million spending gap surfaced in December.
Fitzpatrick added that he sees no reason the developer also won't come through on the most important milestone: that the ballpark be substantially complete by May 17 so the team can prepare for a May 31 home opener.Kevin Greene, an executive vice president with International Facilities Group, which oversees construction for the city, told the authority Tuesday that in the past week the developer had elected to go to double shifts and working six- and seven-day weeks. CLICK TITLE TO CONTINUE
Developer shows plans for Naugatuck's Parcel C
NAUGATUCK — Developer Rob Oris unveiled Tuesday night the most detailed renderings that have been made public to date of his proposed commercial development for Parcel C.
Oris showed the Board of Mayor and Burgesses large color pictures of two buildings, each three stories high, with a mix of maroon and beige on the exterior facing Maple Street with parking spaces in the back. On top of the larger building is a cupola engraved with the name Saint Mary's Hospital, the anchor tenant in a medical office building.
"We think it's really going to be a great way to kick-start downtown development," he said. "The good thing is it's real, it's here, it's in front of you."
The Board of Mayor and Burgesses voted unanimously Tuesday to approve the design specifications for the project, which are pending with the Zoning Commission.
The commission will ensure they adhere to zoning regulations and the borough's Plan of Conservation and Development. If approved, the construction would begin shortly thereafter, Oris said. He believes construction will take a full year. The project would include the medical office complex, a bank with a drive-thru, a restaurant and an upscale coffee shop.
"We're excited," Deputy Mayor Robert A. Neth said. "We can't wait," Burgess Laurie Taf Jackson replied. The wait for something to happen on Parcel C has been more than 30 years. The land was once home to many of the buildings of the former footwear plant owned by the U.S. Rubber Co. and later Uniroyal. The industry gave Naugatuck its identity between the mid-1800s until it shuttered for good more than 15 years ago. The Parcel C buildings were demolished about 15 years earlier. CLICK TITLE TO CONTINUE