As currently designed, the grid has been successful in getting the U.S. — even in its most rural areas — electrified. Now the challenge is integrating intermittent renewable energy sources, such as wind and solar, and also trying to better secure the grid against attacks from cybercriminals and foreign adversaries.
According to the Energy Information Administration, or EIA, domestic crude production was expected to average 10.9 million barrels per day in 2018. This year, this average is predicted to be 12.1 million barrels a day, while the same agency predicts that “both the level and volume growth of natural gas production” will continue to rise in 2019 after setting new records this year. Getting this oil to market will require a continued expansion of pipeline infrastructure.
The industry trade group Interstate Natural Gas Association of America, or INGAA,
released a study this fall that found that even in supposedly unfavorable market conditions, Canada and the U.S. will need to add 7.7 million barrels per day of new oil transport capacity to keep pace with market and production demands. This breaks down to projections of capital expenditures of between $685 billion and $898 billion from 2018 to 2035, or $38 billion to $50 billion per year.
Construction on that scale would be a boon to both local and regional economies, adding 242,000 direct jobs and supporting hundreds of thousands more. States likes Texas, Louisiana, Pennsylvania, California and Ohio would especially benefit from infrastructure expansions, which would support tens of thousands of high-paying jobs that don’t require college degrees. With all the excitement in fossil fuels, it can be easy to lose sight of the broader picture of energy infrastructure, which also includes the electric grid. Historically, economic growth has generally been accompanied by increased energy needs. Energy researchers view the past decade’s pattern of flat electricity demand as an anomaly and doubt that trend will continue. New generation capacity does little good if it can’t be connected to consumers.
When he came into office, President Donald Trump hyped his infrastructure plan, a proposal that quickly stalled. Now Democrats are the ones pushing for increased infrastructure spending.
Bolstered by tax breaks and other government incentives, clean energy installations set records in 2017 and have remained strong this year.
Now that the projects have been announced, the thing to watch will be how the states handle getting this power to market. For traditional generation methods, transmission companies handle the costs and infrastructure of getting power from generators to consumers. Renewable energy sites, which are frequently farther away from population centers, are less attractive investment prospects. To get the power to market, backers of offshore wind and solar plants have often footed the bill for transmission costs themselves and in some instances have gotten help from state governments.
Other states, like Texas, have explored shifting some of the increased transmission costs of renewables back to the companies generating the power through changes in the state’s capacity markets. In December, the Texas Public Utilities Council dodged a decision on this.
Making the operators of solar and wind installations responsible for a larger share of transmission costs would be another cost increase during an era when natural gas remains an attractively cheap alternative. For consumers, the fear would be that state renewable energy standards would require the use of these renewables despite their higher costs.
Decisions on transmission costs are just one element of what would be needed to modernize the American grid. With increased risks of cyberattack, grid modernization and security has become more of a priority for the Department of Energy. Changes to the physical structure of the grid have occurred in a more piecemeal fashion, however, largely driven by the priorities of states and regional transmission companies.
In short, there is a lot to build in the coming year and 2019 looks to set records of its own.
Developer for downtown Bridgeport theaters short on cash
Brian Lockhart
BRIDGEPORT — The city has confirmed that Exact Capital, the Manhattan developer chosen last year to renovate and reopen the Majestic and Poli Palace theaters downtown, the neighboring Savoy Hotel, and to also build brand new residential towers, did not meet Thursday’s deadline for obtaining financing.
“Look, the project is alive,” Thomas Gill, Mayor Joe Ganim’s economic development chief, said in an interview Thursday.
But, Gill acknowledged, Exact is having trouble putting together the $56 million to pay for the first phase — the work on the theaters and the hotel. The residential towers, including an 18-story building, were to come later.
“With historic types of projects there’s extreme difficulty in their financing. There’s so many different types of aspects to the capital stack. ... It’s like a puzzle,” Gill said. “But they (Exact) have been pursuing the capital aggressively. ... They’re confident they can get it.”
Gill said the 2017 City Council-approved deal with Exact will now be extended in 30-day increments.
“It wasn’t, ‘If you don’t make it we’ll see you later,’ ” Gill said. “We’ll give them 30 days and look at it again.”
Gill said the extensions do not require an additional council vote, but that he would update council members on the project.
Craig Livingston, Exact’s managing partner, could not immediately be reached Thursday for comment, and did not return requests for comment left on his voice mail last week.
Livingston last year had said, “we’re always happy to prove the naysayers wrong” when asked if Exact’s plans were just a political prop for Ganim, who had been running for governor.
But Livingston also initially said he hoped to break ground on the theaters in “the back half” of this year.
Ganim, originally Bridgeport’s mayor in the 1990s, was re-elected in 2015 and, while campaigning, promised to make the decaying Majestic and Poli buildings at the Main Street gateway to downtown a priority if returned to City Hall.
Then in 2017, in an effort to simultaneously deliver on that pledge and have something to boast about during this year’s unsuccessful gubernatorial bid, Ganim and his staff sought development proposals for the theaters, chose Exact’s
and got it approved by the council.
At the time, the mayor touted Exact’s vision as “the most exciting urban development project anywhere in this state.”
Ganim had received some criticism for pushing too quickly to conclude business with Exact.
The administration had not intended to bring the final deal to the city’s legislative body for approval. But ultimately City Hall reversed course and that pact with Exact — called a land disposition agreement — was debated and voted on by council members.
Short leashes and political talking points
Under the terms of the LDA, Exact had a year to finalize the financing for each phase of construction — five in all — before taking possession of the city-owned properties.
“Twelve months was an aggressive time frame for this, but that’s what they wanted,” Gill said of Exact. “So we’re keeping them on a tight leash on it.”
Gill also said there is no intention to shift around the development phases in response to Exact’s financing challenges.
“We do want the theaters done first,” he said. “They (Exact) also recognize the theaters should be the stepping-off portion of the project. There’s a lot of housing (development) going on right now.”
One possible financing avenue for Exact would be state historic tax credits that encourage the restoration of significant structures. A spokesman for the Connecticut Department of Economic and Community Development said last week that Exact has not applied for or been awarded any tax credits.
“They’ve been working on that angle and lining up people that will by their tax credits,” Gill said of Exact. “I know they have not gone directly to the state yet.”
With Ganim running for another four-year term as mayor in 2019, progress at the Majestic and Poli site — or lack thereof — will likely become a talking point should the incumbent face a Democratic primary challenger.
Politics aside, the theaters project was also used in late summer to help woo prospective developers to other nearby parcels along Main and Congress streets.
The Ganim administration on Sept. 20 announced its support for a $12 million proposal from a to-be-formed limited liability corporation, Park City Ice Palace, to build a “premiere hockey and ice skating training facility” downtown with a fitness center, juice bar, coffee and sandwich shops.
Some questions were raised about whether the Ice Palace would compete with Wonderland of Ice, which has managed Bridgeport’s ice skating rinks at 123 Glenwood Ave. and this year entered into a new, 20-year lease with City Hall.
“We’re finalizing the LDA on that,” Gill said Thursday. “We’re hoping to have that (to the City Council) in January some time.”
Turning back to the theaters, Gill noted that the city has, ultimately, had success working with private developers to renovate historic structures, but that many of those more recent projects have experienced delays.
“This (Exacts challenges) is no different than the Jayson-Newfield project,” Gill said. “That took quite a while and, in fact, a new developer to come in.”
Launched in 2015 under then-Mayor Bill Finch, the housing development, also on Main Street, was initially in the hands of Eric Anderson but experienced financing problems and other issues. In 2016, developers Mark Reed and Patrick Normoyle took over.
A new year with big plans: Grants fuel improved infrastructure for Waterbury
MICHAEL PUFFER
WATERBURY – Mayor Neil M. O’Leary is promising 2019 will be another busy year for city infrastructure and economic development projects.
“Demolition and construction everywhere, that’s what I see,” O’Leary said. “I’m really excited for 2019. I really feel like there’s a huge amount of momentum rolling into 2019, and I’m really excited about it.”
In recent years, O’Leary’s administration has been successful in drawing in tens-of-millions of dollars in state and federal grants to support transportation and economic development projects. Some of those have already begun and will continue into 2019. Some will launch in 2019 and others will reach their conclusion.
O’Leary rounded out 2019 with the successful move of about 400 Post University office workers into the long-underused Howland-Hughes Building on Bank Street. Private developers were convinced to spend $15 million on buying and renovating that building thanks to $7.7 million in state grants, along with city breaks on taxes and parking. Mayor O’Leary’s office also played a big role in convincing Post to sign on as the anchor tenants before Green Hub Development purchased the building.
O’Leary believes 2019 might see similar leaps forward, fueled largely by state and federal grants.
“I’m hoping 2019 will bring us even more success than previous years,” O’Leary said.
Some of the major projects anticipated to finish or launch this year include:
Anamet – The city will continue efforts to prepare the dormant and decaying 17-acre Anamet manufacturing complex off South Main Street for redevelopment. The state has granted $3.1 million toward the effort, some of which has been spent to buy the land and begin clearing brush and trees. The remainder will allow the city to take down about half of the large buildings targeted for demolition, said Waterbury Development interim CEO Jim Nardozzi. He aims to begin the first round of demolition work before April, and is seeking funding to continue.
Risdon Manufacturing – The city hopes to continue cleanup work on the former Risdon Manufacturing site at 2100 South Main St. The city has spent a $1 million state grant clearing away the fire-damaged structure on the property. The WDC is angling for a $500,000 federal grant to continue cleanup, removing foundations and clearing away polluted soils. It’s hoped funding will be secured and work might continue in 2019.
Brass City Food Hub – City officials plan to begin construction of an agricultural sanitization and distribution center in the South End this year. Unexpected pollution was found on the Mill Street site chosen for the project, slowing progress. Nardozzi said the Waterbury Development Corp. has bids back from contractors interested in the job, and a selection is expected in the first three months of 2019. The aim is to begin work this spring.
East Main Streetscape – The city has $4 million in state grant funds to rebuild a quarter-mile downtown stretch of East Main Street, along with associated utilities, sidewalks and lighting. The project area stretches from the city Green to North Elm Street. Nardozzi said he hopes to hire a contractor and begin work by early summer.
Train Station Parking Lot – The city hopes to begin upgrades to its downtown train station in 2019, but the launch is not entirely in city control. The project calls for rebuilding and expanding the parking lot, new drainage, lighting and securing cameras, as well as the addition of security cameras.
Nardozzi said the project has funding, but must wait for the Connecticut Department of Transportation to approve the designs.
A second leg of the project would renovate the old baggage area of the Republican American building to create an indoor waiting area. This second phase does not yet have funding.
North End Solar Farm – New-York-based BQ Energy is expected to begin erecting a solar farm on space it’s leasing at the city’s capped North End landfill this summer. Lease payments and taxes on equipment are expected to yield $2.1 million over 20 years. Under the contract with the city, work is to begin in April and wrap up in August. Nardozzi said construction is now anticipated to begin in summer due to a lengthy permitting process.
Naugatuck-Waterbury Industrial Development – City officials plan to shortly begin marketing 156 acres of industrial property the owned predominantly by the city on both sides of the city’s southern border with Naugatuck. Naugatuck has a part-interest in 10 of those acres.
Depending on interest, the city could begin building a road and preparing the site for an industrial or commercial tenant in 2019. The state has granted $2.8 million for the project.
Library Park – The city is collaborating with Webster Bank on a large-scale renovation of Library Park, located next to the Silas Bronson Library in downtown Waterbury. Some preliminary landscaping work has begun, but the full scope and cost of the project and its time frame will be determined by plans that are still being drafted, according to Mark Lombardo, supervisor of city parks and golf courses. Lombardo hopes to have finalized designs this summer.
130 Freight Street – O’Leary predicts the city will move ahead with demolition of the former Anaconda American Brass Co. complex at 130 Freight Street in 2019. The state recently granted the city $1.5 million to take down the mammoth factory. The city is still negotiating to claim the property, currently held by D’Addario Enterprises. In recent years, the city has committed at least $444,065 to perform environmental tests on the property.
“Something’s happening with that piece,” O’Leary said. “It doesn’t matter what’s in the ground. It’s an extraordinarily valuable piece of property. We have to find a way to solve the issue.”
Former Nova Dye property – In July, the Waterbury Development Corp. agreed to pay Glastonbury-based BSC Group $83,000 to design plans to transform the former Nova Dye site into a public park. The massive shuttered factory building there burned in April 2012, leaving a heavily contaminated mess on the 4.8-acre property. The state granted Waterbury $2 million for a cleanup. That’s been spent. Last year, the state granted another $3 million to finish the cleanup and build a park.
Nardozzi said the hope is to break ground in spring. O’Leary plans a public forum to determine exactly which amenities area residents want for the park.
Odd Fellows Hall – In September, the state approved a $10 million grant for Waterbury to use as an enticement for private redevelopment of the 40,000-square-foot Odd Fellows Hall building at 36 North Main St., just off the city’s downtown Green. O’Leary said he plans to have the city issue a request seeking proposals from developers in the first quarter of 2019.
Brooklyn Neighborhood Park – O’Leary said he’ll move forward with plans to build a pocket-park 909 Bank St., the site of a bar that burned down in 2011. The city is negotiating a purchase of the property. O’Leary said he plans to use some of the city’s annual federal Community Development Block Grant to build a park for the recreation-starved neighborhood.
Wendell Cross Elementary School – City officials plan to move ahead with construction to expand capacity at Wendell Cross Elementary School. City and state officials have already approved a $46.2 million renovation and expansion of the current building, due to begin before October. City officials are now, however, contemplating building entirely new, and expanding the project from two to three classrooms per grade. Whatever happens, O’Leary expects to begin construction in 2019.
Jackson and Meadow Street improvements – The city will continue this year with $19.1 million in downtown road improvements subsidized by a $14.4 million federal grant. This plan has already seen a reconstruction of Freight Street. This year, the city will begin reconstruction of Meadow Street between West Main Street and the train station. It will also rebuild and expand Jackson Street. The narrow, meandering, dead-end road currently pushes northwest from Bank Street (by Home Depot) and runs under the Mixmaster Bridge. It will be improved and pushed further, through Freight Street (beside the Tower Grill) and all the way to West Main Street.
City Project Manager Salvatore D. Porzio said he anticipates work to begin by May 1. The federal grant requires substantial completion by July 31, 2020, and the final completion of “punch-list” items by mid-November 2020, Porzio said.
Naugatuck River Greenway – Construction of the long-anticipated riverside path could begin in 2019. Porzio said he’s aiming to launch construction of the first 2.4-mile stretch – from the Naugatuck town line to Eagle Street – by early fall. This first leg will take 18 months to complete, he said.