February 2, 2017

CT Construction Digest Thursday February 2, 2017

State OKs $4.5 million for upgrades at New London’s port

New London — The state Bond Commission on Wednesday approved $4.5 million in funding to the Connecticut Port Authority for repairs and improvements at the Port of New London, something authority board Chairman Scott Bates called an “important down payment on moving our maritime economy ahead in Connecticut.”
The funds will be used to improve lighting, security measures and repair of some of the docks that have fallen into disrepair, along with some improvements to take advantage of the upcoming upgrades to the adjacent Central New England rail line.
“It’s important news for southeastern Connecticut and the whole state,” Bates said. “This is a real investment to improve the core infrastructure of the State Pier.”
The port is one of three deep water ports in the state and consists of the Adm. Harold E. Shear State Pier, more commonly known as State Pier, and the Central Vermont Railroad Pier, or C.V. Pier. State Pier is expected to generate $568,000 in revenue through its lease to Logistec USA Inc., which manages the entire site.
Another component of the Port Authority’s plans is to provide a fishermen’s terminal, or a nonsecure separate entrance that allows for 24-hour access for fishermen now working at the C.V. Pier.
“They can’t do that now,” Port Authority Director Evan Matthews said. “They come and go subject to the facility’s security plan.”
Everything on the Port Authority’s property is behind a fence and accessed through a single security checkpoint.
Matthews said the idea is to move the fleet further toward the cove into an improved docking area that, as an added benefit, will have room to accommodate a fishing fleet now operating at a pier in the Fort Trumbull area. The city’s development arm, the Renaissance City Development Association, currently is in talks with a hotel developer considering a $15 million project on a waterfront parcel that includes land where the fishing fleet is now located. CLICK TITLE TO CONTINUE

Bond Commission approves $10 million for Norwich Hospital cleanup

Hartford — Calling it an investment in a project that will bring “jobs, jobs, jobs” to southeastern Connecticut, Gov. Dannel P. Malloy heralded Wednesday's unanimous approval by the state Bond Commission of the final $10 million needed to finish the cleanup of the former Norwich Hospital property in Preston on the eve of a proposed $200 million to $600 million development plan by the Mohegan Tribal Gaming Authority.
Town and tribal leaders are in the final stages of negotiations for a Property Disposition and Development Agreement for the 393-acre property in Preston. Proposed development described in a conceptual plan includes a 40-acre theme park, indoor water park, hotels, large sports training complex, senior housing, time share units and outdoor recreation facilities.
“I cannot stress enough what this project is about,” Malloy said during a news conference following the Bond Commission meeting. “It's about jobs, jobs, jobs, development and tax base. The redevelopment of the Norwich Hospital property with the plan in place the Mohegan Tribal Gaming Authority has committed to is going to be a job creator for the southeastern Connecticut region of the state. It will double the tax base of the community.”
The final cleanup, including demolishing the remaining nine buildings and cleaning contaminated soil surrounding the buildings, is expected to take about a year, Preston Redevelopment Agency Chairman Sean Nugent said. Cleanup work is expected to begin in the second half of 2017 after completion of a remedial action plan, Nugent said.
Malloy credited First Selectman Robert Congdon, Mohegan Tribal Council Chairman Kevin Brown and the work of the PRA for the eight-year cleanup effort to prepare the former hospital property for redevelopment.
With Wednesday's Bond Commission grant, the town has secured more than $25 million in state, federal and matching local funds for the hospital cleanup effort."By making these investments, we are ensuring that properties like this are no longer a drain on local resources, but rather add value and boost local economies," Malloy said. CLICK TITLE TO CONTINUE

Developer seeks $6M in loans for Hartford apartment conversion

A developer is seeking $6 million in state loans to convert three vacant buildings in Hartford into apartments and retail space.
Initially submitted to the Capital Region Development Authority (CRDA) as a bond request in early 2016, the deal includes properties to be renovated by developer Paul Khakshouri, who owns downtown Hartford's Homewood Suites. Those buildings are at 103-5 and 109-21 Allyn St. The project is expected to result in 66 apartments and 3,750 square feet of retail space, according to the CRDA, which requested the funds today from the state Bond Commission.
The Bond Commission approved the funding, but it wasn't immediately clear if the funding needs further approvals from CRDA.
"This project will receive a construction loan [of] $6 million from previously unallocated downtown housing funds that will be paid off by bank permanent financing and the sale of tax credits," CRDA Executive Director Michael Freimuth wrote in an email to the Hartford Business Journal.
The project is in design and could enter construction later this year, Freimuth added.
The $6 million requested from the Bond Commission includes a $4 million construction loan and a $2 million tax credit bridge loan. The estimated total project cost is $10.88 million, less $4.5 million in bank financing and $385,121 in developer equity, according to documents from the CRDA.
Khakshouri could not be reached for comment.

Study: Trail linking Torrington and Derby could spur millions in consumer spending

TORRINGTON >> The Naugatuck River Greenway Trail, which includes the Sue Grossman Greenway and would link Torrington to Derby, is now estimated to prompt more than $85 million in consumer spending annually and create 2,800 jobs in New Haven and Litchfield counties, according to a recently-released draft study.
The study is a joint effort from the Naugatuck Valley Council of Governments, the University of Connecticut, and the Naugatuck River Greenway Steering Committee, according to the council website. A final draft was released earlier this month and is available for public consideration.The Naugatuck River Greenway Trail would eventually stretch 44 miles between Torrington and Derby. The head of the trail in Torrington is along Franklin Street, near the recently-unveiled Fish Tales mural. According to the study, which focuses primarily on the Naugatuck Valley, the expense of constructing the greenway is estimated to reach $77.2 million by 2030, which includes an additional 13 miles of connected trails. By 2031, under the baseline scenario used by the study — which is based on current usage rates of existing portions of the greenway in Derby, Beacon Falls, and Naugatuck — “direct consumer expenditures” will increase to $85.2 million from the roughly $5.8 million currently spent. Data from Sue Grossman Still River Greenway, which links Torrington and Winsted, and the Middlebury Greenway was also incorporated into the study.
Health and amenity benefits will also rise with the construction of the complete trail, according to the report. The “net present monetized value of health-related benefits” is expected to increase from approximately $10.4 to $71.1 million under the baseline scenario, while the “derived amenities benefits” for those living near the trail is expected to rise from $13.8 million to roughly $90.7 million. 516 jobs are expected to be created in Litchfield County by 2031 under the baseline scenario, and the county population could increase by 1,179 people. CLICK TITLE TO CONTINUE