by Christine Stuart
HARTFORD, CT — The state Bond Commission approved $233.5 million in general obligation bonds Friday, including $1.5 million for a Massachusetts manufacturing company to relocate to Putnam, $9 million for PriceWaterhouseCoopers LLP to expand in Stamford, and $35 million to help Electric Boat in Groton ramp up for production of Columbia class submarines.
Within the $233.5 million total, the Bond Commission on Friday approved $80.7 million for 16 companies to relocate, expand, and create new jobs throughout the state. The companies are expected to retain 15,003 jobs and create 3,876 jobs.
But the funding didn’t come without questions from members of the Bond Commission.State Comptroller Kevin Lembo asked if the money for Electric Boat was necessary or if the growth would have happened there regardless.
“It was needed to make us more competitive for repair work,” Gov. Dannel P. Malloy said.
He said right now there’s no room for additional repair work to be done at the facility.
Malloy, who chairs the Bond Commission, said the repair work might have gone to Rhode Island or Virginia without the investment. The increase in repair work will help the company ramp up its operations for the new Columbia class of submarines, which are much bigger than the Virginia class.
Lembo also wanted to know why Connecticut was giving $1.3 million to Walgreens, a Fortune 500 company.
Malloy explained that with the recent acquisition of Rite Aid, Walgreens has to build up its distribution on the east coast and Connecticut was in competition with other states. The company is expected to create 100 jobs within five years.
Malloy also pointed out that Walgreens makes an effort to employ people with disabilities.
Lembo also expressed concern about a $450,000 loan to Sheffield Pharmaceuticals.
Lembo asked whether Sheffield has proven that it is no longer a bad actor when it comes to pollution. In 2016, the New London-based company paid a $1 million fine for violating the Clean Water Act.
Malloy said the company is two presidents removed from the one who was responsible for the pollution.
“We are well aware of the difficulties this company previously experienced,” Malloy said.
He said all of it was taken into consideration at the time the $450,000 loan to the company was made. The company will be expected to retain 130 jobs and create 22 new jobs over three years.
Sen. L. Scott Frantz, R-Greenwich, said he doesn’t believe PriceWaterhouseCoopers was going to take its 946 jobs anywhere. He said he felt $9 million to create 400 jobs was still excessive.
Malloy said they were in competition with New York and New Jersey for these jobs.
“I would love to live in a country where we’re not pitting one state against 49 others,” Malloy said. “What we’re not doing is paying $130 million for 200 jobs which Massachusetts not so long ago did.”
Malloy was referring to General Electric, which announced in 2016 that it would move its headquarters to Boston. The company has since made headlines for layoffs, a possible break-up, and analysts predicting that it may soon be delisted from the Dow Jones Exchange.
PriceWaterhouseCoopers LLP acquired the GE Tax Group in December.
Transportation
The Bond Commission also approved $30 million for cities and towns to repair their roads.
The long-awaited funding for the roads is the second installment.
Towns and cities remained anxious about receiving the full complement of state aid that they had included in their municipal budgets to conduct critical repair work during this Spring season.
Malloy had refused to release the money to the towns until the General Assembly increased the amount of revenue going to the special transportation fund, which the legislature agreed to in its adjusted the state budget that passed with bipartisan approval May 9.
By passing the budget and increasing the amount of money going into the special transportation fund, the legislature “averted, at least temporarily, a catastrophe — which would be the inability of the state to bond for transportation projects,” Malloy said.
Local governments have long depended upon these grants.
As of 2015, according to the Department of Transportation, municipalities own and maintain 17,365 road miles — more than four times greater than the 4,143 road miles owned and maintained by the state. Seventy-three percent of Connecticut’s roads are in poor or mediocre condition according to the American Society of Civil Engineers.
The Connecticut Conference of Municipalities said they appreciated the release of the funds. A breakdown of how much each town will receive can be found here.
The Connecticut Council of Small Towns also applauded the release of the funds.
“Unfortunately, the failure to release the second installment of Town Aid Road grants in January made it difficult for towns to enter into contracts to ensure that road work could begin in a timely manner,” Elizabeth Gara, executive director of COST, said. “As a result, many towns delayed paving roads, patching potholes, sealing cracks, and making other needed road repairs. This is a big concern because well-maintained roads are critical to the safety of residents and the vitality of our state and local economies.”
I-95 bridge in Connecticut to reopen after $141M replacement
NEW HAVEN, Conn. (AP) — Connecticut transportation officials say a new bridge on Interstate 95 between New Haven and West Haven is set to fully open to traffic after a $141 million replacement project. The northbound side of the West River Bridge is scheduled to open Monday, nearly two weeks after the southbound side was completed and opened.
The project began in 2014 and included installing three traffic lanes in each direction. Officials said full shoulders were added to help reduce lane closures in the event of an accident or police activity.
The 1,000-foot bridge first opened in 1958 and is one of the longest and most traveled in the state. More than 136,000 vehicles cross it every day.
Some businesses concerned about downtown Meriden road work
Leigh Tauss
MERIDEN — Workers from La Rosa Construction drilled into the pavement on upper Pratt Street Friday, building new medians designed to transform the street into a boulevard-style entrance to downtown.
Down the street at Delicioso Bakery, owner Tania Lamarche shakes her head.
“It’s a nightmare,” Lamarche said. “The street was really wide. Now you can’t even park over here. It doesn't make any sense.”
Larmarche isn’t the only business owner upset. Steven Chehotsky, who owns The Little Rendezvous pizzeria next door, said his customers complain about the ongoing construction.
“The parking impact is worrisome,” Chehotsky said. “Where do cars stop to come in and get their pizza? They have no where to go.”
The tight parking situation is only temporary, said Associate City Engineer Howard Weissberg. Once construction on the medians is complete, there will be an eight foot shoulder for parking and a 14-foot driving lane. Orange cones placed around the construction site are making the travel lanes smaller, Weissberg said.
“It’s only because of the cones and the excavation so it’s tighter now than it will be ultimately,” Weissberg said. “Anybody with concerns can always reach our office.”
Further up the street, Silver City Barbell co-owner Edwin Rodriguez said although his business has not suffered due to construction, he’s noticed trucks having trouble turning into the lot due to construction.
“I saw it yesterday morning. It took (a truck driver) five minutes to pull in. He had to back up and turn, back up and turn,” Rodriguez said.
Chehotsky said customers have been parking in a lot up the street and walking down to get pizza, but “that’s not something you’re going to want to do in the rain.”
“I think it will look better when the whole street is done, but the last thing I want is less people coming in because parking's a hassle,” he said.
Not every business owner was upset though. Across from the Meriden Green, Senia Blessing Salon owner Senia Martinez was looking forward to the new streetscape, hopeful more foot traffic could mean more business.
“I think it’s more pretty and beautiful,” Martinez said. “Pulling Meriden up a little bit.”
Weissberg hopes to have the project completed by November. The road still needs to be milled, paved and striped and landscaping done on the medians.
Those with concerns on the project should contact the city’s Public Works department at 203-630-4018.
Mills apartments in Meriden transferred to city in preparation for demolition
Leigh Tauss
MERIDEN — The Meriden Housing Authority has transferred the Mills Memorial Apartments to the city, which will begin demolishing the former public housing complex this summer.
”It’s just another milestone in the transformation of that site and an important milestone in the overall transformation of downtown," said Economic Development Director Juliet Burdelski.
As part of the land swap, the city also transferred 62 Cedar St. to the Meriden Housing Authority, allowing Pennrose Properties to begin construction on the second phase of the Meriden Commons, a mixed-income housing project that will add 76 apartments downtown.
The city selected Bestech Inc. of Ellington to demolish the Mills for $1.9 million through a competitive bidding process. The company will perform environmental cleanup and begin to take down the buildings in sections starting this summer.
Burdelski said the company will remove the exterior bricks and then weaken the base of each building until it “basically falls down on itself.”
The contract states demolition will be completed by the end of the year.
A ribbon cutting ceremony for the demolition is expected to take place in late June or early July.
After the buildings are razed, the city plans to extend the Meriden Green through the property. That project is estimated to cost $4 million. Milone & Macbroom, which designed the Meriden Green, was chosen to design the project for $312,500.
Construction of the Green expansion will likely not begin until 2020, officials have said.
Meriden Housing Authority Executive Director Robert Cappelletii called the city closing on the property “exciting.”
“It’s the last and final phase of the public housing in downtown Meriden," Cappelletti said. “It’s a very exciting opportunity for the city and Housing Authority.”
Supporting fuel cell industry means greater future for CT
Those are just a few of the benefits Connecticut would enjoy if the state continues to invest in fuel cell technology.
Public Act 17-144, now expanded by Senate Bill 9, authorizes our electric utilities to deploy up to 30 megawatts (MW) of grid-enhancing fuel cells, and the Department of Energy and Environmental Protection (DEEP) to procure energy from fuel cells, biomass anaerobic digestion and offshore wind to enhance reliability of the grid.
Recently submitted proposals include four anaerobic digester projects in Connecticut with a combined capacity of over 4 MW; three offshore wind proposals outside of Connecticut waters with a combined capacity of over 590 MW; and 18 fuel cell projects in Connecticut with a combined capacity of over 230 MW.
The General Assembly is to be commended for identifying the great value of distributed energy and fuel cells to provide clean, reliable power to end users and the state's grid. It is in Connecticut's best interest to support locally driven initiatives that directly benefit our residents and our economy.
With the selection of projects located within Connecticut, the state would gain an opportunity for increased local reliability, local construction jobs and reinforcement of the local grid.
Further, the selection of fuel cells within the DEEP procurement will bolster local fuel cell businesses and the state's economy. The fuel cell industry is the only Class I renewable energy resource that has a strong manufacturing presence and industrial supply chain in Connecticut.
The Connecticut hydrogen fuel cell industry provides approximately $601 million in revenue and investment annually. For every dollar of revenue generated by the hydrogen fuel cell industry through the manufacture and provision of fuel cell technology, an additional 84 cents of revenue is generated by other Connecticut businesses in the supply chain.
Using this conservative industry economic multiplier of 1.84, the economic activity potentially produced by 230 MW of fuel cell energy sources procured by DEEP and located within Connecticut would result in over $920 million of direct revenue and an additional $773 million in indirect and induced revenue that could be added to the state's economy.
In terms of cost to the consumer rate base, the price of energy from fuel cells is expected to compare very favorably with other Class I renewable energy resources. Cash flow and simple payback from fuel cell projects are typically achievable within four to seven years depending on financing.
Additionally, fuel cells have an exceptionally high availability and do not require additional backup generation, batteries or other energy-storage technologies to meet demand, unlike intermittent renewable sources.
Also, the development of distributed generation resources typically does not require new or significant reinforcement of transmission facilities.
With a long-term commitment of investment, incentives and supporting policy, the hydrogen and fuel cell businesses in Connecticut can provide a lead for regional and national economic growth, and Connecticut can be established as the global manufacturing hub for the industry.
Joel Rinebold is the chairman of the Connecticut Hydrogen-Fuel Cell Coalition and director of energy at the Connecticut Center for Advanced Technology.
Connecticut Port Authority to Lead State Pier Revitalization in New London
Gov. Dannel Malloy has announced the State Bond Commission is expected to approve $15 million for an infrastructure improvement project that will revitalize State Pier in New London to maximize the port's potential as a regional economic engine.
The Connecticut Port Authority (CPA) will oversee the project, and work has already begun on preliminary planning.
Scott Bates, the chairman of the CPA, praised Malloy for his decision to continue his administration's large-scale investment in the Connecticut maritime economy:
“Governor Malloy has worked hard to rebuild Connecticut's infrastructure as a way to create jobs and long term economic growth. This investment in State Pier will pay dividends for years to come in this region and across Connecticut. At the Connecticut Port Authority, we are ready to tackle this new project as we continue our work strengthening the maritime economy across the state,” said Bates.
State Pier in New London is the only major port, from the mid-Atlantic to Maine, without the bridge obstructions or hurricane barriers that can restrict ships from entering other harbors.
This is a major advantage when it comes to using State Pier to support development initiatives along the east coast of the United States. The same natural assets that made New London the Whaling City, and a major area of regional commerce in the early days of the United States, are still assets today.
The governor's announcement of further investment in State Pier follows an earlier announcement of a new partnership with Electric Boat that is expected to help create nearly 2,000 jobs in the region.