October 26, 2017

CT Construction Digest Thursday October 26, 2017

After 117-day marathon, Senate passes bipartisan budget

A newly united Senate took a major step early Thursday toward ending Connecticut’s nearly 17-week budget impasse, overwhelmingly adopting a $41.3 billion, two-year plan that closes huge deficits without raising income or sales tax rates, imposes modest cuts on local aid, and provides emergency assistance to keep Hartford out of bankruptcy.
By a veto-proof margin of 33 to 3, the Senate approved the budget after a collegial and self-congratulary three-hour debate that ended with hugs, fist bumps and hand shakes just before 2 a.m. Seventeen of 18 Democrats and 16 of 18 Republicans voted to send the bill to the House, which is scheduled to debate it later Thursday.
The surprisingly strong vote, coupled with the expectation of a similarly strong margin in the House, set the stage for a decision by Malloy to accept the compromise or risk a veto override that could color his last year in office.
He declined to speculate Wednesday morning on whether he would sign or veto a budget he had not seen. A copy was not provided to his office until mid-afternoon.
The budget relies on tax and fee hikes worth roughly $500 million per year for the biennium. It also would raid more $175 million from energy conservation funds — which largely are supported by surcharges on consumers’ utility bills — and would offer Connecticut’s seventh amnesty program for tax delinquents since 1990.
The bipartisan deal cuts deeply into operating funds for the University of Connecticut — but not as severely as a Republican-crafted budget would have one month ago.
But it does not rely on shifting a portion of skyrocketing teacher pension contributions onto cities and towns.
And it authorizes $80 million in borrowing across four years to assist homeowners dealing with crumbling concrete foundations.
“There really is, I think, a sense of extraordinarily significant achievement in what we’ve been able to reach together,” Senate President Pro Tem Martin M. Looney, D-New Haven, said of the past three weeks of bipartisan negotiations that produced the latest budget deal. “There is so much in this bill that points us int he right direction.” There is something in this budget for many people to dislike,” said Senate Majority Leader Bob Duff, D-Norwalk. But “we can go back to our constituents and say ‘we listened. … And we continue to fund the areas we believe are right, are just, and continue to make the state a better state.”
Senate Republican leader Len Fasano of North Haven praised lawmakers from both parties for setting aside partisan differences and saying, “Connecticut comes first. What is important is there was courage to bring the budget to life.” CLICK TITLE TO CONTINUE

Funds for XL Center, crumbling foundations in $3.5B bond package

When it voted to adopt a new two-year state budget early Thursday morning, the Senate also endorsed a $3.5 billion, two-year bond package.
Legislators authorized new borrowing to assist homeowners in eastern Connecticut with crumbling foundations, to upgrade the XL Center in Hartford and to complement a new taxing arrangement with the state’s hospital industry.
The budget and bond package, which passed 33-3 in the Senate and is expected to be considered later Thursday in the House, also features a cap on borrowing.
The new budget would create a special fund to provide loans to homeowners in eastern Connecticut struggling with crumbling, concrete foundations.
And the bond package authorizes $20 million in borrowing in this fiscal year, and in each of the next three, to support that program.
A key part of Hartford’s efforts to make the capital city more vibrant, planned renovations to the XL Center would receive $40 million this fiscal year in state bonding.
And to get the hospitals to support a $344 million annual tax hike on the industry, Connecticut lawmakers pledged to increase annual payments back to the industry by $365.5 million — with $20 million of that coming in the form of state bonding this fiscal year and next.
State government still would come out ahead in the deal, by about $137 million per year, because those payments to hospitals would leverage a huge increase in federal Medicaid reimbursements.
The new bond cap would limit both the State Bond Commission’s authority to approve general obligation borrowing as well as the state’s ability to issue this type of bonds on Wall Street.
General obligation bonds are repaid with resources from the state budget’s General Fund. This fund includes income, sales and corporation tax receipts, funds generated by several other minor taxes, gaming proceeds, several categories of federal grants, and revenues from various fees. Those funds are used for municipal school construction, many capital projects at public colleges and universities, state building maintenance and renovations, open space and farmland preservation, and various smaller projects.
The bulk of transportation improvements are financed with a different type of bonding and paid off with fuel tax receipts. They are not covered by this cap.
The commission cannot approve more than $2 billion in borrowing per year beginning immediately.
Starting in July 2018, the cap prevents the state from issuing more than $1.9 billion in general obligation bonds.
These cap limits would be adjusted annually to reflect inflation.
Borrowing for capital programs at the University of Connecticut and the Board of Regents for Higher Education also are not covered by the cap. The regents oversee the Connecticut State Colleges and Universities system, which includes the four regional state universities and 12 community colleges.
The bond package authorized $200 million in borrowing both in this fiscal year and in 2018-19 to support capital programs at UConn. Another $100 million was authorized in the first year and $133 million in the second for the Board of Regents’ system.

Stamford urban transitway completes second phase

STAMFORD — Marking the overall completion of the Stamford Urban Transitway’s second phase, Mayor David Martin and other city officials will cut a ribbon Thursday morning on the east side.
The $52 million project was approved in July 2013 to create a four-lane roadway on Myrtle Avenue between Elm and East Main streets, which would allow for easier passage between the busy Stamford Transportation Center and U.S. Route 1 on the east side.
Originally expected to take two years to complete, the project has faced multiple delays due to weather and the discovery of old buried infrastructure such as trolley tracks, train tracks and water lines.
Kathryn Emmett, director of legal affairs, in July had attributed much of the delay to the relocation of utility poles and underground equipment taking longer than anticipated. Design changes made by the state during the course of the project were also a factor, she said.
The delays occurred despite the Pavia administration’s effort to avoid the problems that arose during the first phase of the transitway project.
That phase, which cost $65 million, was completed in 2012 and created a commuter pathway between Elm and Atlantic streets. It came in $5.3 million over budget and more that a year behind schedule.
Throughout this phase, the project has faced some pushback from businesses along Myrtle Avenue and a portion of East Main Street. The main complaint stems from the city’s controversial decision to eliminate street parking along the affected section of East Main Street due to a lack of space.
Other complaints centered around traffic congestion on Myrtle Avenue causing significant delays and deterring patrons from venturing into the area.
 
 
Ground will be broken Thursday in East Hartford for a $105 million outlet-mall development in the shadow of Pratt & Whitney Co.
Officials from Illinois-based Horizon Group Properties Inc., the town of East Hartford and other local and state dignitaries are slated to attend the 11 a.m. groundbreaking for The Outlet Shoppes at Rentschler Field.
When completed in Nov. 2018, the first phase will include some 70 fashion and lifestyle retail stores occupying 282,000 square feet of leasable space, Horizon officials said.

XL Center slated for $40M; headed to sales block

Hartford's XL Center got mixed treatment in the bipartisan budget overwhelmingly passed by the state Senate early Thursday.
The Senate approved $40 million in bonded funds to renovate the XL Center, as part of a larger bond package that also provides financial support to eastern Connecticut homeowners hit hard by crumbling concrete foundations, according to the CT Mirror.
But the $41 billion budget also requires the city of Hartford to put the aging building up for sale, budget documents show.
The goal would be to sell it to a private developer. A request for proposals must go out no later than June 30, 2019, budget documents show. Officials have said previously that it would be difficult to find a buyer for the more than four-decade-old arena, which has consistently lost money in recent years and faces intense competition for events from the two Connecticut casinos. The opening of the Springfield MGM Casino in 2018, will only add to the competition.
The one year, $40 million investment is far less than the two-year, $125 million Gov. Dannel P. Malloy previously called for, and the $115 million that existed in previous budget plans.
The $40 million, according to budget documents, can be used for renovations and capital improvements, including the acquisition of nearby real estate, budget documents show.
The Capital Region Development Authority, which oversees the XL Center, has recommend the state invest $250 million to completely renovate the arena.
The budget also eliminates the admissions tax exemption for events at the XL Center and Dunkin' Donuts Park in Hartford along with Webster Bank Arena in Bridgeport and New Britain Stadium.
That will subject those venues to a 10 percent admissions tax.

Ground-breaking ceremony for new Q House in New Haven slated for Nov. 4

NEW HAVEN — Mayor Toni Harp and Alder Jeanette Morrison, D-22, are inviting the public to the new Dixwell Community Q House groundbreaking ceremony next month near the former facility’s site.
According to a release from the Board of Alders, Harp and Morrison join the Q House Building Committee for aground-breaking ceremony at 10:45 a.m. Nov. 4 at 197 Dixwell Ave., the site of the former Q House building.
Morrison serves as co-chairwoman of the center’s building committee. Officials are hoping the new Q House will be completed by spring 2019. The facility will be 50,126 square feet.
“We are all thrilled that a new Q House will soon rise again to serve as a great community hub,” Morrison said in the release. “It will once again be a wonderful resource of education, health, social and recreational opportunities for all city residents and their families.”
Officials unveiled renderings and signs for the Q House in August. The community center’s development stretches back years, with the project receiving more than $15 million in state funds since 2014. The original Q House closed in 2003. The original facility was demolished in January.
The new facility will include the Stetson Branch Library, a cultural museum, health center, a full gym, a multi-purpose space and the Dixwell-Newhallville senior center.
After the original Q House opened in 1924, it became a cornerstone of the community. It was known as an outlet for social activity and a thriving community place, according to the release.
A commemorative brick program for the new Q House is being established.
The program, “Buy A Brick, Build A Legacy,” according to the release, it will allow supporters of the new Q House a chance to “purchase a brick” for the Q House Endowment. The contributions will help fund “vital programs and services.”  CLCIK TITLE TO CONTINUE

FHWA Awards Millions to Explore New Ways to Pay for Highways

The Federal Highway Administration (FHWA) recently announced $15.5 million in Surface Transportation System Funding Alternatives (STSFA) grants to six states that are exploring new ways to fund highway and bridge projects. Alternatives to conventional financing are seen as imperative, FHWA officials said, due to the Highway Trust Fund's gradual inability to keep pace with increasing construction and repair costs nationwide.
“To ensure the U.S. road system is the best in the world, we can no longer rely solely on the federal gas tax and the Highway Trust Fund,” said Acting FHWA Administrator Brandye L. Hendrickson. “New sources of funding for the design, construction and repair of our nation's roadways have never been more necessary, and these grants will help open the door to new financial innovations.”
The STSFA grants fund projects to test the design, implementation and acceptance of user-based alternative revenue tools. FHWA officials selected seven proposals from six states – California, Colorado, Delaware, Missouri, Washington and Oregon.
The seven projects will investigate and evaluate various user-based approaches to raising revenue, including on-board vehicle technologies to charge drivers based on miles traveled and multi-state or regional approaches to road user charges. They will address common challenges involved with implementing user-based fees such as public acceptance, privacy protection, equity and geographic diversity. The projects will also evaluate the reliability and security of the technologies available to implement mileage-based fees. CLICK TITLE TO CONTINUE

Towantic alarm to sound Friday, but it’s only a drill

OXFORD – An alarm will sound at Towantic Energy Center under construction on Woodruff Hill Road at noon this Friday, but neighborhood residents should not feel any fear or need to evacuate.
Competitive Power Ventures informed First Selectman George R. Temple of the upcoming test and Temple said the town would make robocalls to inform the public ahead of time.
An unannounced alarm test startled neighbors on the morning of Oct. 11 and Gary Lambert, president and chief executive officer of CPV, responded to a letter from the first selectman apologizing, and promising it would not happen again. He said he would give advance notice and left Temple his direct contact information.