Jeff Stein and Seung Min Kim, The Washington Post
WASHINGTON - President Donald Trump said Tuesday that a $2 trillion infrastructure package should be part of Congress' next response to the coronavirus pandemic, reviving a 2016 campaign pledge to ramp up construction projects despite public health guidance that Americans should stay home and isolated to the greatest extent possible.
"With interest rates for the United States being at ZERO, this is the time to do our decades long awaited Infrastructure Bill," Trump wrote on Twitter. "It should be VERY BIG & BOLD, Two Trillion Dollars, and be focused solely on jobs and rebuilding the once great infrastructure of our Country! Phase 4."
But lawmakers, for more than three years now, have failed to break meaningful ground on bipartisan infrastructure talks, making the issue something of a long-standing joke on Capitol Hill. Some experts pointed out that a pandemic may be a poor time to ramp up construction projects, given that federal health officials are urging workers to stay home if possible and avoid personal contact.
His "Phase 4" comment refers to the fact that Congress has passed three bills in response to problems created by the outbreak of the coronavirus, with the most recent law enacted on Friday. That law directs more than $2 trillion in spending for emergency assistance to companies, new $1,200 payments to millions of Americans, assistance for airlines, state unemployment programs and a host of other groups.
The president offered no additional specifics about his infrastructure idea, and a White House spokesman did not immediately respond to a request for more details.
On Tuesday morning, shortly before the tweet, Trump spoke with Sen. John Barrasso, R-Wyo., about the need for a massive, $2 trillion package that would include revamping the nation's roads, bridges, tunnels and ports, according to a person familiar with the conversation.
Barrasso, the third-ranking Senate Republican, also chairs the Committee on Environment and Public Works, which unanimously cleared a highway bill last year that greenlights $287 billion in infrastructure spending over five years and is the most substantial legislation of its kind in history.
But Trump's vision of an infrastructure would build on that highway bill, according to the person familiar with the call with Barrasso, and its mission would be to "renovate and rebuild America while putting America back to work."
Trump, who had called Barrasso, told the Wyoming senator and close ally that he wanted him very involved in the infrastructure effort, the person said.
Congressional Democrats are already at work on the next effort and discussions have begun on what it may include.
Treasury Secretary Steven Mnuchin and House Ways and Means Committee Chairman Richard Neal, D-Mass., stepped up talks on an infrastructure deal in February, but those negotiations were derailed by the widening impact of the coronavirus pandemic.
Public health experts have called for Americans to self-isolate, and numerous states have issued stay-at-home orders urging all but essential personnel to remain in their homes. Infrastructure talks have largely centered on providing hundreds of billions for maintenance and repair work on the nation's roads, bridges and other decaying infrastructure - all of which would probably require workers to be in close contact with one another. "I've been making this point for years now: He's correct," said Jared Bernstein, former economic adviser to then-Vice President Joe Biden, a Democrat, about Trump's argument about the potential to use low interest rates to fund a large infrastructure bill. "But we have to be realistic about how infrastructure fits into the nature of the current crisis."
That issue may not be impossible to resolve. Congress should pass an infrastructure package now to capitalize on the political crisis and low interest rates, but construction projects should not begin until quarantines are lifted, said Peter Gowan, an economic expert at the left-leaning Democracy Collaborative.
Other outstanding fissures may still be difficult for lawmakers to overcome. Senate Republicans have balked at raising taxes as part of an infrastructure deal, a key sticking point in previous negotiations, and it is unclear if conservatives are willing to spend more money beyond the large deals already signed into law. Senior Republicans have also been reticent to embark on a big-spending, "Phase 4" bill to boost the flagging economy, wanting to gauge the effects of the $2.2 trillion package signed into law last week before any next moves. Trump's reference to low interest rates on Tuesday suggested he is in favor of borrowing heavily to finance new projects, which would probably add to the government's debt.
During his campaign four years ago, Trump promised a $1 trillion infrastructure package he said would create hundreds of thousands of jobs and rebuild roads, bridges, ports and airports, among other things. But White House officials could not reach agreement among themselves over how to finance such a package. Congressional Democrats have long been skeptical of the seriousness behind Trump's attempts at an infrastructure deal. Both sides have sharply disagreed about what projects should be included in an infrastructure bill, with conservatives rejecting Democratic efforts to include clean energy projects and other provisions aimed at mitigating climate change in their legislation.
"We all make the jokes about it, but the problem is infrastructure is an empty vessel term that means different things to different people," said Ryan Ellis, a conservative tax expert. "You can talk to 10 people around town, and you may get 10 different emphases for what that means and what the definition of it is."
Connecticut Port Authority secures use of more land in New London
Greg Smith
New London — The Connecticut Port Authority on Tuesday announced it plans to lease a 5-acre parcel of railroad property adjacent to State Pier that will expand the port’s footprint in New London.
State Pier is the future site of a massive $157 million upgrade project, in part to accommodate a wind turbine staging area for partners Ørsted and Eversource.
Since the offshore wind industry does not require rail service, the port authority has said that in return for the lease, it will help facilitate use of the rail further upriver at the site of a newly proposed pier facility envisioned by Mohawk Northeast Inc., a heavy civil construction and engineering company with operations in New London and Groton.
Mohawk recently purchased 3 acres of land off Lewis Street on the Thames River that straddles the rail line and announced conceptual plans for expansion of the shoreline with a bulkhead, staging area, railroad spur and 100-foot-by-400-foot pier.
Mohawk is working with the state to help facilitate use of rail for its own business and possibly for other operations, including those being displaced from State Pier by the wind industry.
“We’re hoping to fill that void, and one of those voids happens to be the rail line,” said J. David Schill, Mohawk’s vice president of special projects and business development.
Schill said the shared goal is to increase rail commerce throughout the region and, with the loss of a port for the rail, this seems to be a good opportunity. He said Mohawk is still in the early stages of the permitting process and was unclear on specifics of what type of aid might come from the state. He said Mohawk has been in talks with both the railroad owner and port authority.
The news of the lease with the railroad was announced jointly in a statement from the Connecticut Port Authority, state Office of Policy and Management and New England Railroad Inc., a subsidiary of Connecticut-based Genesee & Wyoming Inc. The lease is for $525,000 a year, rising 4% annually. The cost of the lease is incorporated into the $157 million Harbor Development Agreement announced by the governor in February, port authority business and special projects manager Andrew Lavigne said in an email.
“Prior to the Port focusing on wind turbines, the Port handled lumber and steel coil traffic along with copper cathode for both local distribution and for distribution to the Midwest U.S.,” G&W spokesman Michael Williams said in an email Tuesday.
“Additionally, other components for marine construction such as large quarry stone, steel pile and other commodities will all be potentials to ship by rail to and from New London with Mohawk Northeast,” he said.
Kosta Diamantis, deputy secretary for the Office of Policy and Management, said in a statement that “this transaction positions the Port to be a future generator of expended economic activity and jobs growth in the state.”
New England Central Railroad President Len Wagner said in the statement that the agreement builds on completed upgrades to the main rail line through the state. “With the pending completion of upgrades to the line in Massachusetts as well, the railroad will be able to handle modern, fully loaded freight cars from the Port of New London to the Canadian border, and from there throughout North America.”
U.S. Rep. Joe Courtney, D-2nd District, in a statement, said, "When eastern Connecticut made the successful case in 2014 to the U.S. Department of Transportation to modernize the NECR, access to the Port was an essential component of the plan. As the new configuration of the state pier emerged last August, I pressed the stakeholders to preserve rail inter-connectivity for the Port, both now and in the future.”
“With this agreement now in place, I look forward to continuing to work with NECR, the Authority and other stakeholders in the district to ensure that freight rail continues to provide a viable, energy efficient option for cargo that passes through New London,” he said.
Mayor Michael Passero said the lease agreement was years in the making.
“It’s one step they had to do to develop the port as a wind turbine assembly facility, which is important to our economic diversification,” Passero said. “They checked off another box.”
He awaits finalization of a host community agreement with Ørsted and Eversource that is expected to bring millions of dollars to New London.
Senate GOP Leader Len Fasano not seeking re-election
Mark Pazniokas
Senate Republican Leader Len Fasano, R-North Haven, is not seeking re-election, opening a fight to succeed him in a suburban New Haven district and as leader of the GOP minority in the Connecticut Senate.
Fasano, who filed papers creating a campaign committee in February, could not be reached for comment Tuesday night. But a staff member confirmed that the senator has informed colleagues and supporters of his decision not to seek a 10th term representing the 34th District of Durham, East Haven, North Haven and Wallingford.
Fasano, 61, is a centrist Republican lawyer who was elected to the Senate in 2002 and succeeded John P. McKinney as the caucus leader after the 2014 election cycle, when McKinney ran for governor instead of re-election. Fasano was re-elected in 2018 with 58.5% of the vote.
Republicans have not controlled the Senate since a two-year run in 1995 and 1996, but they won an 18-18 tie in 2016, forcing a rare power-sharing arrangement with Democrats, who retained nominal control due to the tie-breaking ability of a Democratic lieutenant governor.
With Donald J. Trump in the White House and the Democratic base energized, Democrats won 23 of the 36 Senate seats in 2018. The Democratic advantage fell to the current 22-14 after Republicans picked up a seat in a special election last year.
As the caucus leader, Fasano both fought and, on occasion, worked cooperatively with two Democratic governors, Ned Lamont and Dannel P. Malloy. And he kept his distance from the president, declining an invitation to be a Trump delegate to the 2016 Republican National Convention. He exhibited frustration that summer at the endless questions about Trump.
“I never endorsed him. I purposely didn’t go to the convention. I don’t feel I have to defend or attack every statement he makes,” Fasano said.
His focus, he said then, was Connecticut’s fiscal crisis and electing a Republican majority to the state Senate.
“That’s why I’ve taken a hands off attitude,” Fasano said. “He is the nominee of our party. I respect that. But I don’t feel I have to defend him every step of the way.”He opposed Lamont’s various proposals to increase transportation spending by imposing highway or bridge tolls, but he offered an alternative: Using budget reserves in a complex and creative way to finance a transportation overhaul without tolls or new taxes.The plan would have used nearly two-thirds of the state’s budget reserves to pay down pension liabilities, producing an annual savings of $130 million that could be spent on transportation. Another $100 million would come from cutting annual borrowing for things such as capital spending on local schools and public universities.
Lamont rejected it as too risky, but complimented Fasano for coming to the table with the idea.
Recently, Fasano has praised Lamont for his leadership during the COVID-19 pandemic, but he gave a poor review in December of the governor’s political skills.
“It’s a lack of understanding in that building that has been an impediment to the governor closing the deal” on transportation, Fasano said. “I think the business principles and brains are of value, but they are nullified if you can’t navigate the building.”
Fasano’s opposite number in the Democratic caucus, Senate President Martin M. Looney of New Haven, said he would be missed.
“I am disheartened to hear that Senator Fasano’s time in the state Senate will be coming to an end. Len is a pillar of the General Assembly and leaves a distinguished legacy as a true statesman of the Connecticut Senate,” Looney said. “While we may serve as leaders of different parties, Len and I have worked together countless times to solve problems, help people in need, and get vital things done.”
Brian Gioiele
City officials are looking to bring a part of the past back to transport residents from new housing and development centers downtown to local restaurants and services.
Assistant P&Z Administrator Josh O’Neill said modern trolleys — essentially modified and fancifully decorated buses — would be a perfect niche offering to move people back and forth from the eateries and commercial establishments in downtown and Bridgeport Avenue.
O’Neill has presented the plan to Mayor Mark Lauretti and local developers and business leaders and has gotten rave reviews. He now plans to survey the seven local hotels and other businesses about their needs with the aim of developing a partnership that could aid in covering the costs, whatever they may be.
“The intent of the proposal is to create an alternative method of travel throughout the city,” said O’Neill. “This would be designed to connect and integrate major areas of the city as well as ease parking needs and traffic loads in the downtown.”
Trolleys are a vestige from the Valley’s past, but the idea to bring them back started a few years ago with local businessman Mathew Calandro and Lauretti. While the idea went dormant, the trolley concept is again picking up steam thanks to O’Neill and downtown development chief Ken Nappi.
“There really seems to be a large buy-in to this,” said Nappi. “It is exciting to see we are going back to a mode of transportation that was created for the same reason we need it — to move people, economic development, make the downtown better.
“This is really a home run,” added Nappi, formerly the city’s interim P&Z administrator. “I get emotional about this. People put millions into downtown, into Bridgeport Avenue, and now to be able to move people to benefit economic traffic … it’s a fantastic thing.”
O’Neill said trolleys would be a way to get the general public to and from the apartments downtown to all the establishments along Bridgeport Avenue.
Shelton’s city landscape is changing. Construction has begun on two new developments with retail and apartments downtown. Plans are moving forward on adding apartments along Canal Street, and Fountain Square on Bridgeport Avenue will add an eighth hotel and numerous restaurants and retail shops.
All the development comes with a need for more parking and better traffic control, officials said. A trolley service could help.
“This would be a service by the city of Shelton in partnership with the developers and business community to move people for economic development while easing traffic flow and parking issues,” said Nappi. “The key to it is who is going to run it and who is going to pay for it? We will need a partnership between the city and the businesses to make this happen … everyone involved needs to have a stake in this.”
Nappi said his meeting with city officials and developers went so well that the mayor offered to start such a service this summer.
Lauretti said he could offer use of two old Valley Transit buses — purchased last year by the city — to run loops from downtown to Bridgeport Avenue and back, with strategically placed stops for passengers.
“This is something the city has needed for a long time,” said Calandro — especially with what will be an explosion of new businesses and some 700 downtown apartments coming online over the next several months.
“We have parking downtown, but there are so many people, some 30,000 commuters on Bridgeport Avenue, that do not know the area,” added Calandro. “Right now, there is no reason for them to go past Constitution Boulevard. To be able to offer an option to bridge the gap between Bridgeport Avenue and downtown is very exciting.”
The hope is to purchase two additional vehicles already built as modern trolleys. Estimates received a few years ago valued one trolley at $133,000. Calandro said annual costs, factoring in fuel, maintenance and drivers’ salaries for running one trolley Thursday through Saturday, was between $50,000 and $75,000.
But both O’Neill and Calandro said there are numerous opportunities with so many interested hotels, restaurants and retail for generating advertising revenue to help cover costs.
O’Neill said the goal is a free service, with some 22 passengers on each trolley run. If a charge is ultimately needed to help cover costs, O’Neill said the idea would be to keep it identical to Valley Transit, about $2 to $3 a trip.
The operation would offer flexible hours and routes, with weekday and weekend hours — all dependent on input received during the initial survey process.
O’Neill said the city’s initial planning has taken pointers from the Harbor Point Trolley in Stamford, which connects the Harbor Point development to downtown Stamford. The difference is that the city of Shelton would oversee the trolley operation, while a private developer handles the Stamford trolley.
One aspect of Stamford’s system that O’Neill said intrigues him is that it is free and there is a live shuttle tracker app that can be downloaded on people’s phones to give updates on trolley locations and arrivals in real time.
O’Neill said that no official Shelton route has been set, but he hopes to keep loop runs no longer than 20 minutes. He also is looking into using the Greater Bridgeport Transit bus stops for the trolley stops, since the state Department of Transportation does not allow stops in the middle the roadway.
“We want to make this service as convenient as possible for everyone who wants to use it,” said O’Neill.
Dillon says quiet Bradley Airport could benefit from $2T federal stimulus
Sean Teehan
$2-trillion stimulus package Congress passed last week could provide Bradley International Airport aid at a time when airlines and passengers are canceling flights amid fears of the rapidly spreading COVID-19 virus, Bradley's overseer says.
During a Friday afternoon board of directors meeting for the Connecticut Airport Authority (CAA), which oversees Bradley, CAA Executive Director Kevin Dillon touted an element of the legislation that provides $10 billion to airports, $7.4 billion of which has few strings attached.
"They're not restricting the money for capital projects or operating expenses, it can be spent on anything that we lawfully have to spend money on here at the airport," Dillon said.Half of that money will be allocated based on 2018 employment levels, and the other half will be distributed based on the amount of debt and reserves airports have, Dillon said.
Dillon said the $58 billion allocated to passenger and cargo airlines will support hard-hit air travel companies, and require organizations that accept bailout money to maintain at least 90% of payroll staff through the end of 2020.
Bradley has seen a significant dropoff in passenger traffic amid the COVID-19 crisis -- as much as a 90% decrease on some days. Dillon told board members Friday that the airport's numbers aren't unique.
"The drop in activity here at Bradley mirrors very very closely what's happening at airports all around the country and particularly in Boston and New York," Dillon said.
However, Bradley's cargo business has seen very little disruption, Dillon said. The airport's cargo business has grown significantly in recent years, especially with Pinnacle Logistics, which ships packages for Amazon, moving into the airport in 2018.
Cargo volume at Bradley spiked by 24.5% in 2019 to 367 pounds of materials shipped.
Bradley, which receives rental and landing fees from freight carriers operating on its grounds, recorded $9.2 million in cargo-related revenue in 2018. By comparison, it earned only $2.9 million in fiscal 2017, which ran from July 1, 2016 to June 30, 2017.
It was not immediately clear if that includes the airport’s $210-million ground transportation center project, which broke ground last July.