September 26, 2018

CT Construction Digest Wednesdy September 26, 2018

Lamont finds more dollars for transportation than Stefanowski, but not enough to fix everything


When it comes to transportation improvements, it could be said that Democratic gubernatorial nominee Ned Lamont is trying to stretch a dollar.
Lamont, who was in Meriden Tuesday to support increased train service and better links between rail, bus and air, still supports only one new source of revenue for a state transportation program that advocates say will need billions of new dollars over the next decade.
And while that source — imposing tolls only on large trucks from out of state — would provide only a fraction of that revenue, Lamont’s chief defense is that it still is more than Republican gubernatorial rival Bob Stefanowski has offered.
Connecticut business leaders say “if you believe in economic development and job creation, you’d better fix your transportation system,” said Lamont. “I hear that wherever I go. … This should be priority number one for the next governor.”
Lamont, who joined running mate Susan Bysiewicz at the Meriden train station on State Street, which overlooks related residential and commercial development, said he would promote more transit-oriented development by encouraging state agencies to lend technical expertise to interested communities.
Lamont also said he would build on the rail system linking Hartford and north central Connecticut with New Haven by adding WiFi service on trains, improving bus connections linking the Hartford rail line and Bradley International Airport in Windsor Locks, and increasing daily round trips between New Haven, Hartford and Springfield, Mass.
Lamont also promises to encourage private-sector investors to partner with the state to develop new train stations along the Hartford line in communities such as West Hartford, Newington and North Haven, in exchange for a portion of ticket proceeds.
Finally, he said he would explore purchasing the Hartford line tracks, which are owned by Amtrak, saying, “Connecticut can be a better steward of its rail lines than an out-of-state company.”
But how would Lamont pay for all of this?
More importantly, how would he even get to these priorities when — according to state transportation officials, Gov. Dannel P. Malloy, and numerous transportation advocates — a badly needed rebuild of Connecticut’s transportation infrastructure is at risk of slowing to a crawl.
Malloy, who is not seeking re-election, warned Wall Street credit rating agencies, Connecticut businesses, state legislators — and anyone else who would listen — last winter that absent more funding, dozens of key projects would fall into limbo and the state’s transportation program was headed for dramatic contraction over the next five to 10 years.
Some of the key projects on that list include: replacing the elevated section of I-84 in Hartford, commonly known as the viaduct; renovating the “Mixmaster” junction of I-84 and Route 8 in Waterbury; and widening Interstate 95 in southwestern Connecticut.
State legislators provided a fiscal patch this past spring, transferring an extra $29 million in sales tax receipts into the transportation fund this fiscal year and another $120 million in 2019-20.
But that is not expected to stabilize transportation funding beyond 2022 or 2023.
Transportation advocates say establishing electronic tolling on all major highways, which DOT officials say would raise $600 million to $1 billion annually, would provide the needed revenue.
Lamont has said he would limit tolls only to tractor-trailer trucks from out of state. He estimated Tuesday this would raise $100 million per year, but has released no fiscal analysis to back up this estimate.
“We are running a multi-state charity for out-of-state vehicles,” Bysiewicz said.
Joe Sculley, president of the state’s largest trucking company coalition, the Motor Transport Association of Connecticut, said “There is no data to back up statements that trucks are tearing up our roads.”
When asked about transportation advocates’ argument that Connecticut’s transportation system needs far more revenue than he will support, Lamont said “We can make a bit of progress on that.”
When pressed, though, Lamont’s preferred response is to focus on his opponent, noting that Stefanowski has ruled out tolls entirely and also pledged to phase out the state income tax — which would strip away roughly half of all state budget funding.
“While we believe in modernizing transportation to attract jobs, it’s clear that Bob Stefanowski’s tax scheme will cut critical dollars for transportation at a time when they’re needed most. His scheme will close the Hartford Line, end critical upgrades to our bridges, and put more traffic on our roads,” Lamont said.
The Stefanowski campaign did not comment after Lamont’s press conference

New Haven aldermanic committee approves deal for 9th Square housing

Mary E. O'Leary
NEW HAVEN — The city is on its way to an agreement that puts the Residences at Ninth Square on a solid footing by settling the debt it owes the city in exchange for a continuation of the same percentage of apartments remaining affordable.
The Joint Community Development and Tax Abatement Committee of the Board of Alders voted unanimously Tuesday in favor of selling the large project with its 335 units to Beacon Communities, LLC of Boston, a deal that will be final once the full board votes on it next month. “It is a large development in the middle of our downtown” and losing it “would leave us with a huge hole in our city,” Serena Neal-Sanjurjo, head of the Livable City Initiative and a main negotiator on the project, told the alders in explaining the importance of the deal.
The development, which opened in 1994, transformed the Ninth Square to a stable neighborhood of housing and retail, although recently the number of empty commercial spaces has increased.McCormack Baron and the Related Companies, operating under Ninth Square Limited Partnership LLC, found that it could not get out from under the millions it owed, mainly to the Connecticut Housing Finance Authority, but also to the city, Yale and others who came together 24 years ago to help underwrite it.
The new owners will keep 56 percent of the apartments affordable by renting to tenants who earn no more than 60 percent of Area Median Income. The remaining 44 percent will be market rate housing, which is consistent with the current mix.
Beacon will make a payment of $2 million to the city in return for forgiveness of all the subordinate loans owed to New Haven, whose liens were encumbering the site.
The city bonded $3.75 million toward the project more than two decades ago and was supposed to earn various amounts of interest on it. It also passed through a federal $8.9 million Urban Development Action Grant to the development.
Because the city was fourth or fifth in line in terms of being paid back by the bankrupt development, there was little likelihood it would be paid back, Economic Development Administrator Matthew Nemerson said
For this reason, the $2 million payment the city negotiated was a good deal, he said.New Haven will pay $80,000 for the lots at 31 and 39 George streets and the city already has brownfield money to begin remediation that will be needed to turn this at a later date into a development site.
With the tax-exempt bond and Low Income Housing Tax Credits from CHFA, Beacon will put $13.2 million in capital improvements into the Ninth Square, upgrading all the apartments.
On taxes, New Haven agreed to fix those at $600,000 per year in a 20-year PILOT, or payment in lieu of taxes, which will increase every five years by a percentage equal to the increase in adjusted gross revenue.
The 290-car garage at 270 State St. is being bought for $3.6 million in 30 annual payments of $120,000. At the city’s choice, these payments may be replaced by a reduction in the PILOT. The current tenants will have first right of refusal to continue to use that garage, but at market rates.
The alders were pleased with the plan.“I think we should go with this because it is a deal. It is the best deal the city could get at this moment,” Alder Ernie Santiago, D-15.
Alder Aaron Greenberg, D-8, said the Ninth Square apartments and the new units at what was Farnam Courts are important opportunities “to put our money where our mouth is on affordable housing. There is a real affordable housing crisis in the city.”
He said he hears the testimony month after month from constituents addressing the task force established to study housing needs.
Dara Kovel, president of Beacon Development, said the property was put up for sale almost a year ago and she has been in contract with CHFA for about four months. When the financing is complete, there will be a closing, with construction expected to take 14 months.
“All the terms of the deal have been settled,” Kovel said.
Neal-Sanjurjo, in addressing the aldermanic committee, said it would have been “devastating” if CHFA pulled the bonds and the housing mix was lost.
Beacon committed to keeping the same maintenance and property management staff for a year and if they demonstrate that their work was up to their performance standards, they could stay on.
Barbara Tinney, who runs New Haven Family Alliance at Monterey Housing, which is owned by Beacon, testified to the quality maintenance staff at that facility.