June 5, 2019

CT Construction Digest Wednesday June 5, 2019

Ganim pitches sweet deal for tribes to open Bridgeport casino

The 11th-hour gambling legislation sought by Bridgeport Mayor Joseph P. Ganim would entice the tribal owners of Connecticut’s two casinos to build a $350 million casino in his city with a promise of $100 million from the “city and/or state” and valuable exclusive rights to online sports betting and internet casino gaming.
The terms of an amendment Sen. Dennis Bradley, D-Bridgeport, would attach to a casino expansion bill that has been sitting on the Senate calendar since April were circulated Tuesday night among legislative leaders of both parties in the House and Senate. They were reviewed by CT Mirror.
The Mashantucket Pequot and Mohegan tribes would get rights to jointly develop a Bridgeport casino, retain their 2017 authorization to build an East Windsor casino to compete with MGM Springfield, and also have the right to develop up to three other “entertainment zone” facilities with sports wagering in other communities.
Two legislative leaders, who declined to be quoted, said they saw little chance the General Assembly would accommodate Ganim’s pitch for lawmakers to approve a radical expansion of casino and online gambling, not to mention his call for $100 million in state or local financing, without significant public vetting.
The 2019 session ends today at midnight.
Ganim left the Capitol without answering questions Tuesday near midnight, at first professing no knowledge of the summary that he had been presenting to leaders. The summary indicated a $100 million public investment in the casino, while a tribal lobbyist said the public dollars would be sought to pay for “infrastructure.”
“I have no idea, no idea,” Ganim said of the proposal or its prospects for passage. “That’s why I’m up here. We’ve got to midnight tomorrow night. I guess we’ll just have to see what happens.”
House Speaker Joe Aresimowicz, D-Berlin, who has hosted Ganim and the tribes in his office to talk about the possibilities of a joint venture in Bridgeport, said he was surprised to see the call for $100 million in public financing.
 He previously has ruled out public financing.
The recently passed budget creates a Municipal Redevelopment Authority, a quasi-public agency that could bond for city and town development efforts across Connecticut. One legislative leader said it’s now clear that the authority was created as a potential vehicle to help develop a Bridgeport casino.
Bradley said he had not given up on a vote today.
“I’m hearing very positive remarks from House leadership, specifically the speaker, who is almost giddy about making this happen,” Bradley said. “And I think the tribes are willing to put skin in the game as well and make a substantive commitment to Bridgeport.”
The tribal owners of Foxwoods Resort Casino and Mohegan Sun won legislative authorization in 2017 to jointly develop a smaller casino off I-91 in East Windsor to blunt the loss of market share to MGM Springfield. The Department of Interior withheld approval of amendments to the tribes’ gambling agreements with Connecticut until recently, delaying construction.
MGM, which says it would build a casino in Bridgeport if allowed by the state, says it will sue Connecticut if the tribes go forward with East Windsor. The tribes have yet to show they have obtained financing for East Windsor.
The administration of Gov. Ned Lamont tried and failed to strike a deal with the tribes in which they would abandon East Windsor in favor of a casino in Bridgeport. The city is less attractive to the tribes than East Windsor, since it would draw Fairfield County gamblers who otherwise would go to Foxwoods and Mohegan.
The administration has not said what sweeteners it offered the tribes, other than a share of sports betting.
The proposal circulated by Ganim would waive a $30 million payment the tribes would immediately owe the state once the East Windsor casino opens. It also calls for extended hours to serve liquor, possibly 24 hours a day.

On tolls, most of CT delegation takes a pass
Dan Freedman
WASHINGTON - Connecticut Democrats on Capitol Hill for the most part walk a fine line on proposed highway tolls, calling for more robust federal infrastructure spending but sidestepping clear support for Gov. Ned Lamont’s controversial measure.
“Once the General Assembly and the Governor come to an agreement on how best to fund state transportation projects moving forward, I will work with state leaders in any manner necessary to further the goal of improving Connecticut’s infrastructure,” said Sen. Richard Blumenthal, a member of the Senate Commerce, Science & Transportation Committee.
Lamont’s strongest supporter in Washington by far is Sen. Chris Murphy, who says the lack of any sound alternative idea is proving to be the best argument for tolls.
“Governor [Ned] Lamont is right to be advocating for using tolls as a stable, responsible source of funding to pay for transportation upgrades,” Murphy said. “If someone has a better idea to fix this problem for good, I'm all ears. But so far the governor's idea seems to be the only serious one on the table.”
Inaugurated in January, Lamont has made passing toll legislation his top priority, expending immense political capital to push many reluctant Democrats toward yes votes and battling Republicans who have promised to vote no as a bloc.
Lamont and Democratic allies stress that with discounts for Connecticut residents and commuters, tolls would mostly affect out-of-state drivers and truckers. He predicts tolls on I-95, 91, 84 and the Merritt Parkway would generate $700 million a year in revenue.
A leading voice in opposition to the “tolls monster,” state Sen. Len Fasano, R-North Haven, argues tolls are a new tax and authorizing them only opens the door for further Democratic revenue grabs. Republicans dismiss tolls as it as “bad policy” for a high-cost, high-tax state trying to put its financial house in order. They support a plan to bond millions each year to pay for infrastructure, which Democrats say will pass transportation costs to the state’s children, with interest.
“I’m tired of politicians who talk about the importance of infrastructure but oppose measures to pay for it,” Rep. Jim Himes said. “Even worse are those who propose borrowing to pay for it… As the argument over tolls demonstrates, this is not an easy conversation. But unless we’re honest and open minded, our country will continue to crumble.”
Roads in Connecticut got a grade of D+ from the last infrastructure report card produced in 2017 by the American Society of Civil Engineers and its Connecticut branch. Of 21,000 miles of roads, 34 percent are in poor condition. It would take $30 billion to bring the state’s roads up to speed over the next 30 years, the report concluded.
Reps. Rosa DeLauro and Jahana Hayes promised to help alleviate the cost crunch of Connecticut’s highway needs with federal highway dollars.“I am confident Governor Lamont and Connecticut’s state officials will figure out the best way to deal with transportation issues within our state,” said DeLauro, the delegation’s most senior lawmaker. “In Washington, I will continue to push for a robust national infrastructure plan that will help rebuild America, including my own proposal to create a national infrastructure bank.”
Hayes, a freshman, also appeared unwilling to make any waves regarding tolls, emphasizing Connecticut’s desperate need of infrastructure funding and wowing to “push for additional federal funding - through an infrastructure deal or regular appropriated dollars - so that we can rebuild our roads, bridges and improve public transportation.
Senate Democrats have put forward a $1 trillion infrastructure plan financed through restoration of tax cuts for corporations and the wealthy in the GOP’s 2017 tax law.
“I’ll be working for a bipartisan federal infrastructure proposal to assure federal investment and fulfill federal responsibility for expanding and enhancing roads, bridges, rail, ports, airports, VA facilities, and other infrastructure,” Blumenthal said.
President Donald Trump has held two meetings on infrastructure with Senate Minority Leader Charles Schumer, D-N.Y., and House Speaker Nancy Pelosi, D-Calif. But both got bogged down on issues including the Mueller report, possible impeachment and Trump’s wall along the U.S.-Mexico border.
The federal Highway Trust Fund - envisioned as a key lifeline to states’ roadway maintenance and construction needs - is spending more than it takes in from gas taxes. Congress has covered the shortfall by pumping $70 billion into keeping the fund alive, but the lifeline expires in September 2020.
The federal gas tax of 18.3 cents per gallon has not been raised since 1993. A one-cent raise would generate $1.7 billion in extra federal revenue and a 10-cent raise would cover the shortfall, according to the Congressional Research Service. But it would be insufficient to raise federal highway spending levels.
Washington spends $42.4 billion on highways nationwide. And while Connecticut legendarily ranks low in balance of payments (tax dollars to D.C. vs. federal spending back), its federal-highway-spending proportion is in positive territory.
Federal dollars average 51 percent of state highway budgets. In Connecticut, it’s 67 percent, according to the American Road & Transportation Builders Association.

Plainville manager proposes $5M plan for road repairs
BRIAN M. JOHNSON
PLAINVILLE - Town Manager Robert E. Lee has suggested starting up another five year $5 million road repair plan as the current program wraps up this year.
Phase 2 would see roads that haven’t been paved in 25 to 30 years restored.
“We are about two-thirds of the way done with the final year of the current five-year plan,” Lee said. “This would allow us to catch up on streets that were last paved 25 to 30 years ago, which many people have been complaining about. The roads we focused on during the last project all had not been touched in more than 30 years. The first bond turned out good and a lot of people were telling us that they were happy that their roads were getting paved.”
Lee said that some of the roads which could be addressed in this second phase of repairs would include Whiting Street, which hadn’t been repaired since 1991, Arcadia Avenue, which hadn’t been paved since 1989, and Robert Holcomb Way, the street Plainville High School is on, which hasn’t been done since 1990.
Also included on the list of roads for consideration in this second phase would be Homestead Avenue, a small street which Lee said hasn’t been paved since 1984, Ciccio Court and Beckwith Drive, untouched since 1984, Maiden Lane, unpaved since 1989, Canal Street, which hasn’t been repaired since 1991, and a portion of Redstone Hill to Town Line Road. Another portion of Town Line Road had been previously repaired.
Lee said that he showed the Town Council the town’s debt service schedule when proposing the project.
“Three or four years out we’ll be in pretty good shape with our debt service line items,” he said. “If we proceed with phase 2, we’ll be able to slot it in at a time when several other projects are wrapping up and dropping off. This will allow us to maintain the $4.4 million line item that we’ve had for the past several years without increasing it.”
Lee said the council seemed “receptive” to the proposal, which will require a public hearing before it is approved. He also suggested putting the project on the November ballot for voters to decide if the council approves it.
“The council would have to make a decision by Sept. 5 for it to be included on the ballot,” Lee said. “No date has been set for a public hearing yet, but I expect it will be over the summer time -probably by August.”
There are several other public hearings coming up, Lee said, though none of them have dates set just yet.
One of them will address a $40,000 pension payment. Another will include an additional appropriation of roughly a $400,000 to cover police overtime. Lee said he expects these will be addressed at the June council meeting.
“Our police overtime has historically run over,” said Lee. “We have three officers who will be coming on in the near future and two in field training which should help with overtime. But, you never know with retirements.”
Another topic that will be discussed at a future public hearing, likely in July, is a requirement by the Department of Energy and Environmental Protection for the town to monitor for illicit discharges into the sewer system.

New Haven snubbed in Bridgeport casino talks
Brian Lockhart and Emilie Munson BRIDGEPORT — As city lawmakers make a last ditch, high-stakes play for a casino before the legislative session ends, they appear to have left a gambling partner — New Haven — behind.That poses a challenge when the votes for any gaming-related bill in the regular legislative session or a special session. It also could hurt a Bridgeport casino’s ability to win any state funding or bonding: the House chair of the Appropriations Committee is the influential Democrat Rep. Toni Walker of New Haven.
“New Haven somehow has been dropped out of the package, which is kind of sad,” Walker said. “We all started in this together and now there is divisiveness going on between the cities.”
When MGM Resorts International proposed building a casino and entertainment destination in Bridgeport, the company also offered to locate an employee training center in New Haven and to pay additional economic aid to win over the crucial support of that city’s politicians.
But with MGM’s $675 million vision stalled in the legislature, Ganim’s administration for the last several days has been scrambling to broker a deal with the competition — Connecticut’s Mashantucket Pequot and Mohegan tribes.
As of Tuesday, there were no details about what, if anything, New Haven would get from a tribal Bridgeport casino.“I hope that as these conversations do move forward that New Haven is included,” said Rep. Juan Candelaria, D-New Haven. He was “extremely surprised” his city’s legislative delegation had not been included in the behind-the-scenes machinations.
“We play a critical role in ensuring the success of this plan,” Candelaria said, referring to the importance of New Haven votes for passing a gaming bill.
In contrast, Candelaria said, New Haven officials were brought into discussions about a MGM Bridgeport casino early on.
Walker and Candelaria said the tribes should include something similar to MGM’s training center in their plan.
“We need to ensure the New Haven workforce has access to jobs,” Candelaria said.
Rep. Chris Rosario, D-Bridgeport, who has participated in negotiations with the tribes, insisted Monday that he had reached out to his peers from New Haven and assured them “nothing was set in stone yet.”
“They’re going to be a major part of this proposal going forward,” Rosario said. “What that looks like I don’t know. Everything is a work in progress right now.”
But the Mashantuckets and Mohegans, who operate the Foxwood and Mohegan Sun casinos in the southeastern section of the state, have also proposed a smaller, $350 million operation in Bridgeport compared with MGM’s.
Harp, who also teamed in 2017 with Ganim on an unsuccessful regional pitch for Amazon.com’s second headquarters, could not immediately be reached for comment Tuesday.On Friday, Senate President Martin Looney, D-New Haven, in an interview said he was unaware of the ongoing talks between Bridgeport and the tribes.
“My understanding is the administration [of Gov. Ned Lamont] has to negotiate this,” Looney had said.

Railroad Pond in Berlin drained for dam repairs
Devin Leith-Yessian
BERLIN — Environmental officials hope a new fishway being built on Kensington Dam will reinvigorate the ecosystem in Railroad Pond.
After inspectors identified damaged concrete on both sides of the dam, the town drain the pond for repairs. The state Department of Energy and Environmental Protection encouraged the town to add the fishway, which will allow fish to travel from Long Island Sound to Railroad Pond via the Mattabesset and Connecticut rivers
The fishway will allow fish to swim 70 feet up the side of the dam in a 2 foot by 2 foot trough containing turbulence-generating veins and rest stops, said Stephen Gephard, supervising fisheries biologist with the DEEP’s fisheries division.
The town is paying the $1.6 million cost of the dam repairs, while state and federal grants are covering the $250,000 fishway installation. The dam was built between 1901 and 1905 to provide water for locomotives, but now serves to keep the pond filled for recreational use.
The fishway will increase the number of spawning areas for alewife, a keystone fish species in the food chain eaten by other fish throughout rivers and in the Sound, as well as osprey, bald eagles and otters.
“These fish are extremely valuable as forage fish,” Gephard said. “When they’re in the ocean, they’re like sardines and everything eats them ... they strengthen the ecosystem.”
Berlin Public Works Director Mike Ahern said the dam repairs should be done in November.

Manchester voters approve $47 million school modernization project

Voters on Tuesday approved a $47 million bond issue for the renovation and expansion of three elementary schools — the second phase of a district-wide modernization and consolidation of school facilities. Although only about 9 percent of voters turned out, unofficial results showed they voted 2-1 in favor of the spending, which had bipartisan support on the boards of directors and education.  “This is a great day for Manchester, a great day for our children,” Mayor Jay Moran said. “Manchester spoke again, and Manchester said education is important.”The approved bonding will pay for “like new” renovations and expansions at Buckley, Bowers, and Keeney elementary schools and the beginning of efforts to renovate three other school buildings that are closed or will be closed for other uses. The total cost will be $93 million, and local taxpayers will be responsible for $47 million after state reimbursement.Officials say the plan meets the goals of placing all children in modern schools, sustains state-mandated racial balance, keeps class sizes at 17 to 22 students, leaves room at each renovated school for enrollment growth and maximizes state reimbursement for construction costs.Board of directors Minority Leader Cheri Eckbreth, who chaired the committee that drafted the proposal, said the district already is seeing modest gains in academic performance from the first phase of modernization. By 2025, when this second phase is to be completed, all Manchester students will have access to the same technology and learning environments that magnet school students enjoy, all at the best price possible, Eckbreth said.“This is great news for parents, teachers, students and the taxpayers,” she said.Based on current assumptions about when bonds are sold and interest rates, the owner of a home assessed at $150,000 (market value of $218,000) would pay an additional $27 in taxes for the project in 2022. The amount would peak in 2028 at $158 in additional taxes, diminishing after that.Bowers, Buckley and Keeney schools will be renovated and enlarged to accommodate 400 students each. The work will cost $81 million, officials have said. Another $10 million to $12 million — the final figure depends on how much money is left over from the ongoing first phase of school modernization — is to be used to begin repurposing the former Nathan Hale School and Martin and Washington elementary schools. Mayor Jay Moran said Nathan Hale, which the school board closed in 2012, will be a priority.In the $84 million first phase of school modernization, Bennet Academy has been joined with the Cheney Building for a new fifth- and sixth-grade school, a “like-new” renovation and addition to Waddell School was completed, and renovations and construction of an addition at Verplanck School are to be done by the start of the next school year.