March 25, 2019

CT Construction Digest Monday MArch 25, 2019

Groundbreaking to celebrate Bethel’s Rockwell, Johnson renovations
Julia Perkins
BETHEL — Renovations will begin on Rockwell and Johnson elementary schools next month.
The district will host a groundbreaking to kick off work at 11 a.m. April 11 in the side parking lot of Johnson school. The rain date is April 23.
Pre-construction work has been ongoing for several months to ready the schools for the project.Voters approved the $65.8 million project in October 2017, with a state grant covering 45 percent of eligible costs. The project is under budget, with with Rockwell costing $25.9 million and Johnson costing $39.5 million. A state grant is covering 45 percent of eligible costs of the renovations.

State's gambling future uncertain, despite federal action
Susan Haigh
HARTFORD, Conn. (AP) — The federal government may have finally given the go-ahead to a satellite tribal casino in East Windsor, but that doesn't mean the debate over gambling in Connecticut is settled.
Nearly three months into his term, Democratic Gov. Ned Lamont still faces the challenging task of trying to negotiate a wide-ranging gambling agreement that doesn't violate the state's revenue-sharing agreement with the Mashantucket Pequot and Mohegan tribes but also includes other forms of gambling, such as sports betting.
"I would love to work out something with the tribes," he said. "We're trying our best."
Lamont's public schedule, obtained by The Associated Press through an open records request, shows he met privately at the governor's residence with the Mashantucket Pequots and Mohegans in January and in February with representatives from MGM Resorts, which says it wants to build a casino in Bridgeport and also offer sports betting. The casino company has challenged the constitutionality of a deal that allows only those two tribes to build and operate an off-reservation casino.
The tribes, which formed a company called MMCT, have said they need the casino in East Windsor to help blunt competition from MGM's new casino in nearby Springfield, Massachusetts, save jobs at Mohegan Sun and Foxwoods Resort Casino, and preserve the funding stream currently provided to the state of Connecticut. On Thursday, the Department of Interior posted a memo saying the proposed amendments to two agreements between the state and tribe had finally been approved after about two years — allowing the planned casino to move forward.
In exchange for exclusive rights to certain forms of gambling, the tribes provide the state 25 percent of slot-machine revenues, which amounts to about $270 million annually.
Lamont, who said he has also met with various sports-betting entities, confirmed to The AP that he hopes to address as many outstanding gambling issues as he can with his closed-door talks, while at the same time taking steps to avoid costly litigation for the state.
The latter could prove challenging. In response to the approval for the East Windsor casino, MGM issued a statement promising to "continue to pursue all legal options, including litigation," challenging the tribes' exclusive gambling rights "and defend our right to compete in Connecticut." The casino company filed a similar lawsuit in 2015, but it was ultimately dismissed.
"Depending on how those negotiations go, we may not see any gaming bills coming out this session," said Rep. Joe Verrengia, D-West Hartford, co-chairman of the General Assembly's Public Safety Committee. He said one exception could be legislation creating a Connecticut Gaming Commission, which has received little opposition.
It's still not clear when the Tribal Winds Casino in East Windsor might open. While the two tribes have purchased and cleared the site along I-91 for the $300 million facility, spending about $14 million so far, they still need to obtain financing.
"I can only imagine the difficulties of getting financing" for the project, given MGM's legal threats, Verrengia said.Both tribes are also heavily leveraged. A Feb. 4 credit opinion from Moody's Investors Services noted the Mohegan Tribal Gaming Authority's "high leverage" as a cause for concern, as well as tribe's earnings being concentrated in a "highly competitive region." Besides competition from MGM Springfield, which opened in August 2018, Wynn Resorts Limited is in the process of constructing a large resort casino near Boston that's scheduled to open in June. The same report notes how the Mohegans have a "well-established and large product offering" and that "diversification efforts are underway."
Moody's most recent May 2018 credit opinion of the Mashantucket Pequots notes how the tribe has a "weak liquidity profile" and is currently operating under a forbearance agreement that expires June 30 with senior lenders to restructure billions in debt. Such deals occur when a creditor gives up the right to immediate repayment of a loan by a debtor under certain conditions. The report also says the tribe's earnings have been hurt by a "combination of reduced spending trends by gaming consumers, increased competition, and more aggressive promotional activity."
Mashantucket Pequot Tribal Chairman Rodney Butler said the federal approval means construction of the new casino "will move forward" and "preserve much needed jobs and revenue."
Both he and Kevin Brown, the former chairman of the Mohegan Tribe, have said construction would continue through any litigation. The Mohegans did not issue a statement following the Department of the Interior's action.
Meanwhile, there is still a bill before the General Assembly that would create an open casino bidding process, something MGM is supporting but the tribes say would violate their revenue-sharing deal with the state. Bills are also pending concerning sports betting and other forms of gambling. The session adjourns June 5.

Lamont’s shifts on tolls, schools signal collaborative style, steep learning curve
Kaitlyn Krasselt
Ned Lamont has been governor for a little over two months but the list of big issues on his plate is long, and they're coming to a head early in his administration.
Tolls, gambling, casinos, sports betting, marijuana, school district consolidation and more. Everyone knew even before the November election the 2019 legislative session would be busy, filled with ideas to help right the state’s economic problems.
But when the governor amended his stance on school consolidation on Wednesday, it was the second time since taking office in January that he had changed his policy position on a major issue, a notable departure from his predecessor, Gov. Dannel P. Malloy, who was known for not budging.
Whether it’s the learning curve of governing or a contrast in style, experts say it’s clear Lamont is doing things differently.
“He’s subject to compromise, he’s subject to listen,” said Gary Rose, chairman of the Department of Government, Politics and Global Studies at Sacred Heart University in Fairfield. “Right now though, I think there’s a little bit of oscillation going on and a lot of people are trying to figure out where he is and what he’s about, as opposed to Malloy who was sort of arrogantly connected to his positions.”
When Lamont came out in favor of tolling for all vehicles, it wasn’t the politically expedient thing to do. It angered Republicans who were already skeptical of another Democrat in office and alienated some of his own base, who viewed the move away from his previously stated position of trucks-only tolling as a broken promise. Conversely, his amended stance on school regionalization clarifying his recommendation that school districts simply consider ways to collaborate and share services rather than be forced to consolidate, was popular across party lines and the result of Lamont responding to the ire his original proposal drew.“I do think it has to do with the learning curve and that he probably was not completely aware of how various legislative districts in the state feel about some of his policy proposals,” Rose said. “The modification of his school plan, and his change on tolling, he does seem like he’s listening to a lot of people and I think he’s subject to changing his positions, so I’m starting to wonder ... I do think there is a governor here who is at least not as narrow minded, who is not totally steadfast in his position as his predecessor and is a little more cooperative with opponents.”
Colleen Flanagan Johnson, a senior adviser to Lamont who worked with Malloy during his first year in office, was hesitant to compare the leadership styles of Lamont and Malloy, but conceded “they’re two different people.” She doesn’t remember there being any greater an abundance of big issues during the first months of Malloy’s administration, and added, like any job, there is a learning curve to governing.
“I think that when you have a new administration, you have a new Legislature, even if some of them are returning, whenever there’s a new dynamic, there’s an opportunity to reshape the relationship between the administration and the Legislature,” Johnson said. “And I would venture to say that if you were to write this same story in four years, he will still be governing with this style. It’s just who he is. It’s very authentic to him.”
Legislative leaders have noticed a difference too.“They have different styles and I think being responsive to feedback is a positive thing,” said state Senate Majority Leader Bob Duff, D-Norwalk. “Working with the Legislature we can put out the best product. I don’t want to compare, but I would say that Gov. Lamont has done an excellent job of reaching out and working with legislators and understanding the legislative perspective and how to work together in a collaborative way.”
Senate Minority Leader Len Fasano, a North Haven Republican, praised the governor’s openness, but added he would like to see a little more direction from the new governor. He said the politics of the Capitol — the backroom deals between legislators to get things done — could put Lamont in an uncomfortable position should legislation pass that he fundamentally disagrees with.
“He’s willing to say let’s talk, and I think that’s good,” Fasano said. “But when I think that’s bad is when there’s a total lack of direction about what will be deemed acceptable and what’s not. You could set bookends where there’s room to talk between them, and we know if we get outside of those. And I don’t see those bookends ... which could be a problem for him. He should weigh in a little more on the bigger pieces of legislation, and he should let people know what he’s thinking. He runs in peril of finding legislation he does not agree with on his desk to be signed.”
Still, Fasano said he has had more conversations with Lamont than the previous governor, and he is optimistic about the working relationship between legislators and the governor. He said Lamont’s amendment to the school consolidation proposal is an accurate representation of the governor’s approach to leadership and willingness to change his position.
“He’s very personable,” Fasano said. “He’s very easy to talk to and he seems open minded on issues. He suggests firm beliefs he has, but an open mind on how to get there. So I can’t tell you more than it’s a different atmosphere than Malloy and I think that’s good. Whether that ends up in some agreement, it’s too early to tell.”

Preferred developer selected for Groton Heights School
Amanda Hutchinson
Groton — In a collaboration between town and city, officials this week announced local tech startup ThayerMahan as the preferred developer for the former Groton Heights School property.
The school, which closed in 2007, is located in the City of Groton at 244 Monument St. The town received a $150,000 grant in December from the state Department of Economic and Community Development for remediation work on the building, including lead and asbestos removal.
According to a news release from the town, ThayerMahan will adapt the existing 27,185 square feet into office and floor space for corporate offices, engineering and assembly, and research and development. The company, currently based on Leonard Drive, develops and deploys undersea surveillance technology to support security, infrastructure and environmental projects.
Chief Operating Officer Richard Hine said Friday the company is "thrilled" to be selected. He said the company had started in a small office near the Mystic train station before moving to the airport business park, and the Groton Heights School property is the next step in its growth in the region.
He said ThayerMahan is working closely with the town, city and especially the Bill Memorial Library, its immediate neighbor at 240 Monument St., to develop good community relationships.
"I think they are a wonderful selection," City Mayor Keith Hedrick said. He commended the company's high-tech work and also its planned reuse of a historic property, highlighting the collaborative effort between the city and the town to redevelop its old school buildings.
Economic and community development manager Paige Bronk said the town received several proposals for the property but ThayerMahan's was very strong, and the fact that it's already a thriving Groton business gave a lot of confidence to the town. He said there are still parts that need to be ironed out, but he expects it to go to the council for its "blessing" in April.
He noted that the Groton Heights property is just the first of several in Groton slated for new development, and this project is an example of how the town can support others going forward.

If elected next time, Stefanowski vows to dismantle any tolls Lamont administration installs
Is the 2022 governor's race already underway? Former candidate for Bob Stefanowski said if he is governor in 2023 he will dismantle tolls in Connecticut.
Stefanowski made the comments on Sunday's Face the State with Dennis House, when asked if he is elected governor, what would he would do if tolling is then in place. Governor Lamont has called for the return of tolls to Connecticut roads and highways.
"I think the next governor, whoever it is, is going to have to make a call on that. I would dismantle it," said Stefanowski when asked if he would call for an end to the toll program if he was elected.
Dennis also asked Stefanowski if he is planning on running again, and he said "four years is a long way off."You can watch the entire interview right here and response from Governor Lamont's chief of staff.