February 1, 2019

CT Construction Digest Friday February 1, 2019

Taking On Connecticut’s Largest Utility



DoNo developer Salvatore debuts New Haven hotel
 Joe Cooper
The developer selected to redevelop Hartford's Downtown North (DoNo) quadrant surrounding Dunkin' Donuts Park has opened a new 108-room luxury hotel in New Haven.
Real estate developer Randy Salvatore and his Stamford firm, RMS Cos., unveiled the Blake Hotel at 9 High St. on Wednesday during a ribbon-cutting ceremony attended by Mayor Toni Harp and other city officials.
The sprawling hotel is named after Alice Blake, the first woman graduate of Yale School of Law. The hotel features an exercise room, lounge, bar and an upscale restaurant known as Hamilton Park. It also has space for conference and business meetings and will soon debut a 24-hour market.
The Blake is one of several lodging projects underway or being pitched in New Haven, including a Chicago firm's ongoing project to turn the storied Duncan Hotel into a Yale University-themed boutique hotel called "Graduate New Haven."
It is also the latest Elm City endeavor by Salvatore, who also is building a four-story retail and apartment building near Yale Medical School, the centerpiece of the city's Hill-to-Downtown redevelopment plan.
Salvatore's firm is also the owner and operator of Hartford's historic Goodwin Hotel.
DoNo in limbo
Hartford's plans to redevelop properties flanking Dunkin' Donuts Park remain in flux as a Superior Court judge has refused to allow the city to control the parcels from the project's fired developer, DoNo Hartford LLC and its affiliate Centerplan Construction Co.
In September, the city argued it should be able to move ahead with the $200 million project -- billed as Downtown North -- with its newly selected developer, RMS Cos., regardless of whether it was justified in terminating the original contractors.
The city has continuously asked the court to have Centerplan remove liens on the properties surrounding the ballpark so it can redevelop four vacant lots and begin building 800 apartments, retail space, a grocery store and 2,000 new parking spaces over time.
Last week, Hartford Mayor Luke Bronin testified in court reiterating the city's need to move the project ahead to continue recent progress downtown. Bronin said the project would deliver significant property tax revenue for the city ahead of its revaluation in 2021.
The legal scrum between Hartford and Centerplan is now entering its third year.
It started when the city fired Centerplan in 2016 due to delays in stadium construction and a $10 million cost overrun, and then hired another contractor to complete the ballpark. The delay forced the Hartford Yard Goats to play their inaugural season on the road.
Centerplan then placed liens on the properties to block the city from developing the area, and filed a $90 million wrongful termination lawsuit against the city.
In August, Centerplan blamed six subcontractors for the construction hiccups, cost overruns and alleged poor work. It also successfully brought into its lawsuit several companies involved in the stadium design.

Traditional and renewable energy ‘at odds’ in Connecticut
Bill Cummings
HARTFORD - Renewable energy producers say the state’s electricity is cleaner than ever, but the struggle with traditional power sources continues.
“Renewable and traditional energy industry is at odds,” said Mike Trahan, executive director of Solar Connecticut.
“Both can work together for the betterment of ratepayers,” Trahan said. “But I don’t see us both growing in the same direction.”
Trahan and others representing renewable energy — those who produce electricity through solar, wind, fuel cells or food waste — on Thursday told members of the General Assembly’s energy and technology committee that progress in reducing the state’s reliance on carbon-based energy has been significant.
But they warned that other states — New York and Massachusetts, most notably — are doing more and making more progress.
Matt Morrissey, vice president of Deepwater Wind, a wind farm off Block Island, said other states are pressing hard to obtain wind and other renewable energy developments. “There should be consideration of a long-term program that gives the industry a view of what kind of opportunity exists in Connecticut,” Morrissey said. “If you see the market opportunity you start to invest...New York, New Jersey and Massachusetts are pressing heavy to invest in their states.”
Connecticut recently issued a round of clean energy contracts, handing the lion’s share to the Millstone nuclear plant in Waterford and the Seabrook nuclear plant in New Hampshire.
Those two contracts accounted for some 1,256 megawatts of power, or more than 82 percent of the overall bids accepted.
The state also accepted 104 megawatts of offshore wind power and approved nine solar projects offering 164 megawatts of power. Three of the projects are located in the state.
Environmentalists and the renewable energy industry complained that while Millstone produces clean electricity, the award did little to advance other forms of clean power.
Brad Kranz, a vice president for NRG Energy, said traditional energy generators — natural gas and oil burners — are not attempting to stall renewable energy.
“We are not about putting up roadblocks or preserving the status quo,” Kranz said. “We looking forward to working on a plan to decarbonization.
But Kranz noted the impact of the subsidies paid to make renewable power affordable can be higher bills for consumers.
“The cost of fuel for solar and wind is zero,” Kranz noted. “It’s nearly impossible to ensure carbon-based energy is being obtained at the best possible price.”
Rules and rates
Daniel Collins, director of government relations for the New England Power Generators Association, said wholesale electric prices have been declining.
But Collins noted transmission rates have gone up 400 percent. Those rates are a main source of revenue for electric companies such as Eversource and United Illuminating.
“There is a certain amount of gold plating of the system,” Collins said. “We feel in New England, there has been a more aggressive buildout compared to other systems in the country.”
Wind farm production has grown significantly in 10 years and the cost of production has dropped dramatically, said Francis Pullaro, executive director RENEW Northeast, which represents the renewable industry.
“We have reached parity,” Pullaro said, referring to the cost of many renewable sources when compared to traditional power sources.
“If you compare [solar] to a large scale natural gas plant, it’s about the same,” Pullaro said. “Prices in Europe have reached the subsidy free zone.”
Pullaro added “We would encourage [the state] to set up a program of long-term contracting for large projects over the next decade. Don’t make it harder than other types of lawful development. And work collectively with the New England states.”
“Incentives more generous”
Paul Michaud, executive director of the Renewable Energy and Efficiency Business Association, said one problem is current rules restrict how much solar power can be built in a given setting,
“Energy policy is trying to promote solar but environmental policies are saying you must have a letter from the Department of Energy and Environmental Protection and the Agriculture Department before going to siting council,” Michaud said
“It is restricting many projects in the state,” Michaud added.
Trahan said the solar industry is looking for a development system that ensures the 2,000 jobs already created are retained and homeowners see lower electric bills. “Incentives for solar in Massachusetts are more generous,” Trahan said.
“The effort [in Connecticut] has been to drive the incentive own as quickly as we can,” Trahan noted. “Programs are set to expire this year. Confidence in state government is at an all-time low, and there is fear about keeping people in work.”

School representatives told state prefers Hinsdale School project that calls for partial demolition, construction of addition
KURT MOFFETT
WINSTED — State officials have told school representatives they are willing to reimburse the town for 70 percent of the school building project cost if they go for the one that most likely guarantees that students will not get sick from mold.
Last week, about five local school officials went to Hartford to meet with the state Department of Education’s Office of School Construction Grants and Review. According to lead architect Dean Petrucelli, the state prefers the proposal that calls for the demolition of part of the school and building a 4,400-square-foot addition. Petrucelli has said this is the only plan that nearly guarantees there would be no flooding around the school and thus no water or moisture would enter the school and no mold would form.
The school was closed three years ago, primarily because of problems with mold. Students were getting sick. A river flows beneath the school.
The state-favored proposal calls for demolishing the portion that is over the river. The addition would be constructed on the opposite side of the building.
Petrucelli said he and the local school representatives were surprised that the state supports the demolition-addition option because it is the most expensive. He has estimated the cost at $21 million.“Their rationale of that preferred solution is that we’re going to once and for all solve the problem,” he said, adding that the state would actually “penalize” the town if it does not choose the demolition option.Right now, the state would reimburse the town for 70 percent of the cost if it chooses the demolition option, Petrucelli said. At that rate, the town would be responsible for nearly $7.8 million.
If the town does not support the demolition option, the state would reimburse at a 48 percent rate, raising the cost for the town to $9.2 million.
Currently, the size of Hinsdale School is about 50,000 square feet. The demolition/addition proposal would bring the total floor area to just under 37,000 square feet.
Petrucelli and Superintendent Melony Brady-Shanley are going to meet on Friday to reconfigure the blueprint for where the interior classrooms, offices and other rooms would be. Brady-Shanley has said she wanted to take another look at Hinsdale because she believes it has greater potential programmatically over the long term than the Batcheller School.The committee overseeing the proposed project scheduled its next meeting for Feb. 13.