January 29, 2021

CT Construction Digest Friday January 29, 2021

Connecticut’s building trades need the Killingly energy plant project

Joe Toner  The 30,000 men and women of the Connecticut State Building Trades unions, were shocked and gravely disappointed by the Gov. Ned Lamont’s quotes, “I don’t want to build Killingly” and that the administration could “play some games there,” referring to slowing the permitting process at DEEP.

These quotes are deeply hurtful to the hardworking members of the Building Trades unions who have been especially hard hit during the pandemic. To have 600 unionized construction jobs and over 1 million work hours of union labor for area workers casually dismissed by the governor truly disrespects our members.

The governor’s comments also put at risk future construction projects for our members. For five years NTE Energy has played by the state’s rules and the project was approved by the Sitting Council. If a project can be stopped in Connecticut by “playing some games” at the 11th hour, who’s going to invest in Connecticut?

The fact is the Killingly Energy Center represents $750 million in private investment in Connecticut, with no public subsidies. The project will generate $600 million in payments and taxes to the State of Connecticut over the next 25 years and $120 million in taxes and payments to the Town of Killingly over the next 20 years.

The project will also provide cleaner, more reliable and cheaper energy to support our manufacturing base. For Connecticut to achieve its zero carbon goals, it is essential that older, higher-polluting coal and oil-fired plants be replaced in the short term with natural gas-fired facilities capable of meeting the region’s energy needs.

As the state works to recover from the impacts of COVID-19, now is not the time to turn away from a needed project that will add jobs and revenue for the state treasury.

Joe Toner is the Business Manager  for Iron Workers Local 15 and President of the Greater Hartford-New Britain Building Trades Council.


Vacant lot sale jump starts road project to realign Routes 72, 69 intersection

Susan Corica  BRISTOL – The city has agreed to accept $11,500 from the Connecticut Department of Transportation to condemn a small vacant lot in the West End, as part of the planned major realignment of the Routes 72 and 69 intersection.

Mayor Ellen Zoppo-Sassu said the city-owned lot is by West End Pizza

The Route 72-69 project was delayed slightly by the covid-19 pandemic, so this will help move it along in the next few months, she said.

The DOT wants to realign the intersection right by the pizza restaurant to reduce traffic congestion and improve safety for vehicles, pedestrians, and bicyclists.

The project has been in the works for years. It will involve widening Route 72, shifting it to the north, and adding dedicated left turn lanes, and extending Pratt Street one block north to connect with the state route. Divinity Street will be terminated at its intersection with Landry Street. Four multi-family buildings will need to be demolished. The estimated cost is $6 million, 80% federally funded and 20% state funded.

Zoppo-Sassu has said it will help jump start improvements to the West End, calling it “a little bit of pain for a lot of gain.”

According to Zoppo-Sassu, the neighborhood, which is historic and densely populated, has been struggling for years.

“This is one of those projects that can actually pivot and start to change some of the socioeconomic and perception issues in this neighborhood,” said Zoppo-Sassu.

Joseph Arsenault, DOT project engineer, said the design work is expected to be completed this summer, with construction starting in the spring of 2022.

Because the routes 72-69 intersection and the Route 72-Divinity intersection are so close, “it’s really functioning as one big six-leg intersection versus two intersections,” he said.

“About 15,300 is the average number of vehicles traveling through there in a day,” he said. “So we do see congestion in that area pretty much along all the legs, especially in the morning rush hour or evening rush hour.”

Arsenault noted that narrow shoulders make the area difficult for bicyclists, and people tend to use Divinity to bypass traffic backups on Route 72. In addition, tight curves make it difficult for tractor trailers to travel through, so they end up encroaching on other lanes or popping the curb. The project is intended to fix all of that.

The project is expected to include other property acquisitions in the area, as well as demolitions, to create more parking spaces and lower housing density.


Biden's Executive Orders Has Construction Industry Concerned 

Lucy Perry  President Joe Biden signaled changes in climate and energy policies when he signed a slew of executive orders on his first day in office. Though some consider this a positive move toward reducing global warming and carbon footprint, others see it as adversely affecting the construction sector and a threat to the economy, which President Biden campaigned to support.

The American Road & Transportation Builders Association (ARTBA) noted three major executive orders (EOs) that will affect the construction industry.

Biden signed a "regulatory freeze," halting agency activity until all appointees are installed.

"In practical terms, this action stops agencies from moving forward on any proposed rules, which have not yet been finalized," said Nick Goldstein, ARTBA vice president of regulatory and legal issues.

"This includes the USDOT implementation of the updated National Environmental Policy Act (NEPA) modernization, which ARTBA supported."

Goldstein also noted Biden revoked the federal permit for the Keystone XL pipeline.

Shutting the Pipeline

The 1,700-mi. Keystone pipeline has been on-again, off-again, depending on which administration held United States office.

A massive project, it would carry roughly 800,000 barrels of oil a day from Alberta, Canada, to the Texas Gulf Coast.

In 2013-14, the project was criticized by Native Americans, environmentalists and ranchers.

In 2015, President Barack Obama shut down the northern leg of the project after outcry from the public.

President Donald Trump signed an executive order in 2017 approving permits for the northern end of the project.

The pipeline would pass through Montana, South Dakota, Nebraska, Kansas and Oklahoma.

Energy service provider TC Energy decided to terminate more than 1,000 construction jobs as a result of the permit revocation.

"The project's suspension will result in several job cuts even when it intended to use renewable energy sources to power the pipeline system," the company said in announcing its displeasure with Biden's action.

"Earlier, the company announced its plan to wipe out more than three million tons of CO2 equivalent," said the company.

The plan was an attempt to convince Biden that Keystone XL fits into his ‘Build Back Better' agenda, according to TC Energy.

Industry Reaction

"ARTBA and industry allies have supported the project, citing its potential for creating significant economic benefits, including much-needed jobs in the transportation construction sector," said Goldstein.

Brian Turmail of the AGC was not so optimistic about Biden's swift actions. He said his association hopes the actions are not part of a broader plan.

"It's not a positive sign that someone who claims to be a union president killed 1,000 union jobs when he came into office," said Turmail, vice president, public affairs of the association.

"We hope this was done to placate the radical wing of the democrats and not a foreshadowing of a broader infrastructure agenda by the president."

Turmail said the moves give association members pause for concern. "We wonder whether this president is focused on rebuilding infrastructure or placating environmental activists."

The irony, he said, is the Keystone revocation won't stop the shipment of fossil fuels but will instead create more environmentally damaging methods of moving the oil.

It will require the oil to be moved via rail or truck, requiring "far more energy to move than by pipeline."

The association's position is the revocation "doesn't make a lot of sense" environmentally, Turmail added. "From an infrastructure point of view, it's troubling."

And from an economic point of view, "it's not a direction our economy should be heading right now," he added.

Turmail did say it's still too early to forecast long-term effects of the revocation, especially "when one project has such an effect on a broader market."

But, he added, AGC members expect the majority of construction will contract in 2021, and this doesn't help.

"It's an already-difficult economic climate. We don't need difficult and unfriendly political environment as well," he added.

The Associated Equipment Distributors (AED) is just as concerned by President Biden's actions.

Daniel Fisher, vice president, government affairs of AED, said association members have provided "a lot" of equipment in the United States and Canada for the project.They'll be hit hard by the Keystone Pipeline permit's revocation, he said.

Revoking the permit "effectively kills continuation of construction in the U.S. and Canada, unless President Biden decides to reverse his actions at some point."

In the very near future and long-term, it will likely mean contractors working on the pipeline will no longer have need for equipment, said Fisher.

That means purchase orders and rental agreements for equipment out there will be cancelled or delayed.

"We also wonder how this could impact future large pipeline projects," he said.

Fisher noted that this project had been reviewed for 10 years by previous administrations. "It represents virtually no environmental impact."

The pipeline construction work would be performed by union workers and run entirely on renewable energy, he said.

"It's one of the more environmentally-friendly pipeline projects, so I doubt the future of any larger pipeline project as long as we have this current administration for the next four years or so," Fisher added.

He said AED as a whole is hopeful the administration will reconsider its stand on these issues, for the sake of the construction industry and the economy.

"We hear a lot of buzz" in the industry, he said, noting there was been broad support for the Keystone project.

"We're in shock, but we're holding out hope the Biden administration will take another look at its climate and energy policies," said Fisher.

Other Biden Orders

Biden also repealed multiple Trump administration deregulation executive orders.

One EO he repealed was the One Federal Decision, shortening national EPA reviews to two years.

He also repealed the two-for-one EO mandating that two rules be repealed for every one that is enacted, said Goldstein.

"Additionally, the EOs will start a review of dozens of federal regulations enacted by the Trump administration, including many supported by ARTBA," he said.

Beyond NEPA modernization, ARTBA backed the Navigable Waters Protection Rule, which replaced the Waters of the United States rule.

The association also supported reforms to the Endangered Species Act and recent decisions to retain current Clean Air Act standards.

"While the results of this review are unknown, any changes made to these rules are subject to the public comment process," said Goldstein.

"The EOs also show how President Biden will incorporate his priorities into future rulemakings by asking agencies to ‘identify ways the regulatory process can promote public health and safety, economic growth, social welfare, racial justice, environmental stewardship, human dignity, equity and the interests of future generations.'"

For transportation projects, "this could mean an increased focus on studying how proposed projects impact minority and other underserved communities."

Goldstein noted that the Biden administration also issued an EO directing OSHA to evaluate whether an emergency temporary standard (ETS) covering all employees and all industries is necessary to combat COVID-19.

"ARTBA will evaluate all proposals from the new administration on their merits," Goldstein said.

The association will also "continue to push for a regulatory environment that promotes efficient, safe and cost-effective delivery of transportation improvement projects," he added. CEG


Buttigieg nomination for DOT advances to final round

Chris Teale  Transportation Secretary-designate Pete Buttigieg said the "time is now" for the United States to invest in infrastructure.

In a nomination hearing last week before the U.S. Senate Committee on Commerce, Science and Transportation, Buttigieg addressed the slew of issues facing transportation, including how new technologies like autonomous vehicles and hyperloop should be regulated, and how the federal government can support the rollout of electric vehicles.

With President Joe Biden pushing a major infrastructure package in a bid to jump-start economic recovery from the coronavirus pandemic, Buttigieg said such investment is a "generational opportunity to transform and improve America's infrastructure."

Biden has pledged an ambitious investment in infrastructure to stimulate the economy, and Buttigieg said the time is right for that investment, especially to help the country recover from the pandemic.

"This is our opportunity to literally do the building part in Build Back Better," he said, referring to Biden's campaign slogan for the 2020 election.

And in the new administration’s efforts to fight climate change, Buttigieg said rethinking transportation infrastructure could be crucial, especially as that sector is the nation's biggest carbon emitter. "It's going to take a whole-of-government approach, and certainly DOT has a big part of this," he said.

An infrastructure push stalled during the Trump administration, and the Fixing America's Surface Transportation Act needs reauthorizing. House Democrats unveiled their blueprint for that reauthorization last year, but saw it flounder.

Senators noted the difficulties in funding any infrastructure package, with several pushing Buttigieg on whether he would support raising the federal gas tax to pay for it — something that has not happened since the 1990s. Buttigieg said "all options need to be on the table," including an oft-discussed vehicle miles traveled (VMT) tax, although he was noncommittal beyond that.

"Transportation infrastructure investment, around here, has always been an area for bipartisan cooperation...The other thing that enjoys bipartisan popularity around here is not paying for it," Sen. John Thune, R-SD, said. "We continue to just put it on the debt and hand the bill to our kids and grandkids."

In addition to Buttigieg, another city-level transportation official could be in line for an elevation: New York City Department of Transportation Commissioner Polly Trottenberg has been nominated as Deputy Secretary of Transportation.That nomination, which will also require Senate confirmation, received strong support from various organizations. In a joint statement, NACTO Executive Director Corinne Kisner and Chair Janette Sadik-Khan said Trottenberg is an "inspired choice" who "knows first-hand the enormous challenges that cities face."

A committee vote has not yet been scheduled to advance Buttigieg’s nomination, although Committee Chair Roger Wicker, R-MS, said in his opening statement he is "quite certain" Buttigieg will be confirmed.


Danbury scrambling to build CT’s first condominium-style school before enrollment surge hits

Rob Ryser  DANBURY - The city’s plans to be first in Connecticut to open a school in an office park under a condominium-style agreement has put leaders in a race against an Oct. 1 grant deadline to get blueprints to the state.

Missing the state deadline would make Danbury ineligible for an 80 percent reimbursement of the school’s estimated $90 million cost, members of a city task force warned during a meeting this week.

“We have a bubble of students who are coming through in the next three-to-four years,” said Mark Boughton, the former longtime mayor who heads the task force. “If we’re not ready for them, we’re just not going to have space.”

If the city’s plan was conventional to house up to 1,400 upper grade students in a new career academy at the massive west side office park known as The Summit, meeting the state’s Oct. 1 grant deadline might be less ambitious.

As it is, there is nothing conventional about Danbury’s plans to buy 210,000-square-feet of office space from the owners of The Summit’s and convert it into classrooms and labs.

“We have to do a formal submission of an application that doesn’t exist right now because this has never been done before,” said Antonio Iadarola, the city engineer and a task force member, speaking during a Tuesday Zoom meeting. “I have had discussions with the builder about condominium-izing the space, which is very interesting to the state, because they have never done a school that’s under a condominium-ized ownership.”

There is also optimism among task force members that the city has found a solution to a classroom space crisis, brought on by a steep and steady enrollment climb that is unlike anywhere else in the state.

“The beautiful thing about The Summit is 90 percent of the square footage that we need is already constructed,” Iadarola said. “There’s only going to be a small, 25,000-square-foot addition that’s going to create a lobby area on the ground floor and also create a gymnasium.”

It helps the cause that Danbury’s plan was approved in principle by the state legislature and signed into law by Gov. Ned Lamont in September, along with smaller school construction funding projects in Brookfield and New Fairfield.

Boughton, who left City Hall abruptly in December to become Lamont’s tax commissioner, said leaders in Hartford along with Danbury’s own legislative delegation support the city’s novel approach to its enrollment crisis.

“The Summit is probably the most convertible building that we have, it will be able to accommodate the students that we need to put there, and it can be done quickly,” Boughton said. “Everybody is on board because this is not a political thing; it’s about taking care of our kids.”

The city’s scramble to finalize plans, to negotiate contracts, to get approval from voters and to submit a grant application by Oct. 1 is part of a larger effort underway at The Summit to create a “city within a city” at the 1.3 million-square-foot former world headquarters of Union Carbide.

In December, the healthcare system known as Nuvance that runs Danbury and Norwalk hospitals made headlines by signing a lease for 200,000-square-feet of office space The Summit.

The city’s efforts to open the career academy at The Summit also come at a time when separate efforts are underway to open a charter school in Danbury. Those plans got a major boost when supporters announced earlier this month that a philanthropist had donated $25 million to build the school.

The fate of the proposed Danbury Prospect Charter School remains in the hands of Hartford, however, where Democratic lawmakers from the city’s own delegation are opposed to funding its year-to-year operations for fear it will take resources away from public schools.

Among the next steps for the career academy task force is to send preliminary plans to the state and ensure that the path in the unchartered territory is clear.

“They know we have a problem and they recognize we are doing everything we can to deal with the increased enrollment and the overcrowding,” Iadarola said. “Honestly, this is going to save millions of dollars for not only Danbury but the state, because I don’t see any other opportunity to do a project with this sort of deadline other than to do an existing building retrofit.”


Connecticut has nearly $1B in new federal relief. Legislators and municipalities want to know how Lamont plans to divvy it up.

Keith M. Phaneuf  Fresh off extending Gov. Ned Lamont’s emergency powers, state legislators are pressing Lamont on how and when he will divvy up nearly $1 billion in new federal relief earmarked for education and housing — and they aren’t alone.

The largest lobbying group for cities and towns also wants to know when more than half of that money — approved by Congress more than a month ago — will go to local school districts.

And behind those questions is another big one:

Can Lamont, whose emergency powers to handle the coronavirus pandemic recently were extended until April 20, make those decisions by himself — even though he insists he won’t?

“We should know who has the ability to draw this [federal money] down. We should know the exact time frame — all of that,” said Rep. Toni E. Walker, D-New Haven, co-chair of the budget-writing Appropriations Committee. “We are finding this by going to other sources rather than from the administration, and that is very concerning.”

The committee’s other co-chair, Sen. Cathy Osten, D-Sprague, added, “We should be getting information out to local school districts so they can properly reset their budget.”

Not long after Congress enacted a $900 billion relief bill on Dec. 21 — which President Trump signed six days later — Connecticut learned it included nearly $750 million to support education here, and more than $230 million for affordable housing.

The linchpin of this new money was $492 million for elementary and secondary schools. Another $225 million was earmarked for higher education, and $28 million for emergency education needs identified by the governor.

But since then, the Lamont administration has said little about this.

The administration responds that things aren’t as simple as they seem. Federal guidance for much of this funding wasn’t released until January, and some details didn’t come out until just one week ago. And Paul Mounds Jr., Lamont’s chief of staff, said that while the administration isn’t legally compelled to work with legislators to craft a funding distribution plan, it nonetheless has pledged to make it a collaborative process.

“I can tell you this, this administration will be putting forth a [plan] that will take that into account, that goes through the legislative appropriations process,” he said.

Senate President Pro Tem Martin M. Looney, a New Haven Democrat, said Wednesday that legislative leaders’ decision to endorse extending Lamont’s emergency powers until April 20 was with the understanding that all spending decisions must go through the legislature.

“The legislative branch will continue to exercise its constitutional and statutory authority to appropriate any and all funds distributed to the state of Connecticut where federal law allows for such discretion,” he said. “We of course will continue to work with Gov. Lamont and his staff over the coming months to draft a budget all sides can agree to.”

But some questioned whether the governor isn’t rushing funds to local school districts now so the administration can grab bigger headlines in a few more weeks.

Lamont will submit his next two-year budget proposal to legislators on Feb. 10. And if the rollout plan for this federal money is released then, some say it could give the appearance the Democratic governor — and not Congress — is channeling this much-needed relief to Connecticut’s schools.

“I would be very disappointed if I find out this money is incorporated into his biennial budget proposal — to give the governor personal accolades,” said state House Minority Leader Vincent J. Candelora, R-North Branford, adding school districts already are developing their budgets for the next fiscal year and already should have received details on what to expect.

Max Reiss, Lamont’s communications director, responded that the governor has been consistent in protecting education throughout the pandemic.

“The Lamont administration has supported institutions across the state, large and small, through the use of federal funds since the start of the pandemic,” he said. “The approach has been successful, as it’s led to hundreds of thousands of school children having an in-person experience this year. The next round of funds, as prescribed by federal guidance, will focus on continued support for safe in-person learning and to focus on educational recovery and learning acceleration for every student.”

But Joe DeLong, executive director of the Connecticut Conference of Municipalities, said the dearth of immediate details is the latest in a general “lack of transparency” that has typified the state’s handling of federal funding since the pandemic began in March.

The General Assembly, which adjourned the regular 2020 session two months early last March, has been limited largely to virtual committee meetings since.

Lamont declared a six-month public health and civil preparedness emergency that gives him sweeping powers — provided the legislature does not block him. Leaders of the Democratic majorities in the state House and Senate have endorsed two extensions since then.

But DeLong said Wednesday that legislators need to form a special commission to track all federal dollars received, how they’ve been assigned and when they are disbursed, to keep both lawmakers and the public informed.

“Everyone needs to understand where those expenditures are going and why they’re going where they’re going,” he added.

Both Candelora and Senate Minority Leader Kevin Kelly, R-Stratford, said the latest extension was a mistake. The GOP favored limiting any further extensions to 30 days, provided lawmakers also begin an immediate review of all executive orders issued by Lamont during the pandemic.

“Connecticut is where constitutional government was born. The people have a right to know what’s going on,” Kelly said, adding that the lack of information on federal funding “erodes the people’s trust.”

And Candelora added that the stakes in this debate are huge.

President Joe Biden’s new administration has proposed another massive round of stimulus that includes $350 billion in new flexible aid for states and municipalities — meaning it could be used not only to cover pandemic-related costs but also temporarily replace eroding revenues in their budgets.

If such a proposal were to pass, that likely would mean billions of dollars for Connecticut.

“Democratic legislators are in no position to cry about how the governor is spending all of the federal money when they have, time and again, handed the car keys over to him,” Candelora said, adding the legislature must “reassert itself as a co-equal branch of government.”




January 28, 2021

CT Construction Digest Thursday January 28, 2021

Danbury scrambling to build CT’s first condominium-style school before enrollment surge hits

Rob Ryser  DANBURY - The city’s plans to be first in Connecticut to open a school in an office park under a condominium-style agreement has put leaders in a race against an Oct. 1 grant deadline to get blueprints to the state.

Missing the state deadline would make Danbury ineligible for an 80 percent reimbursement of the school’s estimated $90 million cost, members of a city task force warned during a meeting this week.

“We have a bubble of students who are coming through in the next three-to-four years,” said Mark Boughton, the former longtime mayor who heads the task force. “If we’re not ready for them, we’re just not going to have space.”

If the city’s plan was conventional to house up to 1,400 upper grade students in a new career academy at the massive west side office park known as The Summit, meeting the state’s Oct. 1 grant deadline might be less ambitious.

As it is, there is nothing conventional about Danbury’s plans to buy 210,000-square-feet of office space from the owners of The Summit’s and convert it into classrooms and labs.

“We have to do a formal submission of an application that doesn’t exist right now because this has never been done before,” said Antonio Iadarola, the city engineer and a task force member, speaking during a Tuesday Zoom meeting. “I have had discussions with the builder about condominium-izing the space, which is very interesting to the state, because they have never done a school that’s under a condominium-ized ownership.”

There is also optimism among task force members that the city has found a solution to a classroom space crisis, brought on by a steep and steady enrollment climb that is unlike anywhere else in the state.

“The beautiful thing about The Summit is 90 percent of the square footage that we need is already constructed,” Iadarola said. “There’s only going to be a small, 25,000-square-foot addition that’s going to create a lobby area on the ground floor and also create a gymnasium.”

It helps the cause that Danbury’s plan was approved in principle by the state legislature and signed into law by Gov. Ned Lamont in September, along with smaller school construction funding projects in Brookfield and New Fairfield.

Boughton, who left City Hall abruptly in December to become Lamont’s tax commissioner, said leaders in Hartford along with Danbury’s own legislative delegation support the city’s novel approach to its enrollment crisis.

“The Summit is probably the most convertible building that we have, it will be able to accommodate the students that we need to put there, and it can be done quickly,” Boughton said. “Everybody is on board because this is not a political thing; it’s about taking care of our kids.”

The city’s scramble to finalize plans, to negotiate contracts, to get approval from voters and to submit a grant application by Oct. 1 is part of a larger effort underway at The Summit to create a “city within a city” at the 1.3 million-square-foot former world headquarters of Union Carbide.

In December, the healthcare system known as Nuvance that runs Danbury and Norwalk hospitals made headlines by signing a lease for 200,000-square-feet of office space The Summit.

The city’s efforts to open the career academy at The Summit also come at a time when separate efforts are underway to open a charter school in Danbury. Those plans got a major boost when supporters announced earlier this month that a philanthropist had donated $25 million to build the school.

The fate of the proposed Danbury Prospect Charter School remains in the hands of Hartford, however, where Democratic lawmakers from the city’s own delegation are opposed to funding its year-to-year operations for fear it will take resources away from public schools.

Among the next steps for the career academy task force is to send preliminary plans to the state and ensure that the path in the unchartered territory is clear.

“They know we have a problem and they recognize we are doing everything we can to deal with the increased enrollment and the overcrowding,” Iadarola said. “Honestly, this is going to save millions of dollars for not only Danbury but the state, because I don’t see any other opportunity to do a project with this sort of deadline other than to do an existing building retrofit.”


Connecticut has nearly $1B in new federal relief. Legislators and municipalities want to know how Lamont plans to divvy it up.

Keith M. Phaneuf  Fresh off extending Gov. Ned Lamont’s emergency powers, state legislators are pressing Lamont on how and when he will divvy up nearly $1 billion in new federal relief earmarked for education and housing — and they aren’t alone.

The largest lobbying group for cities and towns also wants to know when more than half of that money — approved by Congress more than a month ago — will go to local school districts.

And behind those questions is another big one:

Can Lamont, whose emergency powers to handle the coronavirus pandemic recently were extended until April 20, make those decisions by himself — even though he insists he won’t?

“We should know who has the ability to draw this [federal money] down. We should know the exact time frame — all of that,” said Rep. Toni E. Walker, D-New Haven, co-chair of the budget-writing Appropriations Committee. “We are finding this by going to other sources rather than from the administration, and that is very concerning.”

The committee’s other co-chair, Sen. Cathy Osten, D-Sprague, added, “We should be getting information out to local school districts so they can properly reset their budget.”

Not long after Congress enacted a $900 billion relief bill on Dec. 21 — which President Trump signed six days later — Connecticut learned it included nearly $750 million to support education here, and more than $230 million for affordable housing.

The linchpin of this new money was $492 million for elementary and secondary schools. Another $225 million was earmarked for higher education, and $28 million for emergency education needs identified by the governor.

But since then, the Lamont administration has said little about this.

The administration responds that things aren’t as simple as they seem. Federal guidance for much of this funding wasn’t released until January, and some details didn’t come out until just one week ago. And Paul Mounds Jr., Lamont’s chief of staff, said that while the administration isn’t legally compelled to work with legislators to craft a funding distribution plan, it nonetheless has pledged to make it a collaborative process.

“I can tell you this, this administration will be putting forth a [plan] that will take that into account, that goes through the legislative appropriations process,” he said.

Senate President Pro Tem Martin M. Looney, a New Haven Democrat, said Wednesday that legislative leaders’ decision to endorse extending Lamont’s emergency powers until April 20 was with the understanding that all spending decisions must go through the legislature.

“The legislative branch will continue to exercise its constitutional and statutory authority to appropriate any and all funds distributed to the state of Connecticut where federal law allows for such discretion,” he said. “We of course will continue to work with Gov. Lamont and his staff over the coming months to draft a budget all sides can agree to.”

But some questioned whether the governor isn’t rushing funds to local school districts now so the administration can grab bigger headlines in a few more weeks.

Lamont will submit his next two-year budget proposal to legislators on Feb. 10. And if the rollout plan for this federal money is released then, some say it could give the appearance the Democratic governor — and not Congress — is channeling this much-needed relief to Connecticut’s schools.

“I would be very disappointed if I find out this money is incorporated into his biennial budget proposal — to give the governor personal accolades,” said state House Minority Leader Vincent J. Candelora, R-North Branford, adding school districts already are developing their budgets for the next fiscal year and already should have received details on what to expect.

Max Reiss, Lamont’s communications director, responded that the governor has been consistent in protecting education throughout the pandemic.

“The Lamont administration has supported institutions across the state, large and small, through the use of federal funds since the start of the pandemic,” he said. “The approach has been successful, as it’s led to hundreds of thousands of school children having an in-person experience this year. The next round of funds, as prescribed by federal guidance, will focus on continued support for safe in-person learning and to focus on educational recovery and learning acceleration for every student.”

But Joe DeLong, executive director of the Connecticut Conference of Municipalities, said the dearth of immediate details is the latest in a general “lack of transparency” that has typified the state’s handling of federal funding since the pandemic began in March.

The General Assembly, which adjourned the regular 2020 session two months early last March, has been limited largely to virtual committee meetings since.

Lamont declared a six-month public health and civil preparedness emergency that gives him sweeping powers — provided the legislature does not block him. Leaders of the Democratic majorities in the state House and Senate have endorsed two extensions since then.

But DeLong said Wednesday that legislators need to form a special commission to track all federal dollars received, how they’ve been assigned and when they are disbursed, to keep both lawmakers and the public informed.

“Everyone needs to understand where those expenditures are going and why they’re going where they’re going,” he added.

Both Candelora and Senate Minority Leader Kevin Kelly, R-Stratford, said the latest extension was a mistake. The GOP favored limiting any further extensions to 30 days, provided lawmakers also begin an immediate review of all executive orders issued by Lamont during the pandemic.

“Connecticut is where constitutional government was born. The people have a right to know what’s going on,” Kelly said, adding that the lack of information on federal funding “erodes the people’s trust.”

And Candelora added that the stakes in this debate are huge.

President Joe Biden’s new administration has proposed another massive round of stimulus that includes $350 billion in new flexible aid for states and municipalities — meaning it could be used not only to cover pandemic-related costs but also temporarily replace eroding revenues in their budgets.

If such a proposal were to pass, that likely would mean billions of dollars for Connecticut.

“Democratic legislators are in no position to cry about how the governor is spending all of the federal money when they have, time and again, handed the car keys over to him,” Candelora said, adding the legislature must “reassert itself as a co-equal branch of government.”



January 27, 2021

CT Construction Digest Wednesday January 27, 2021

New apartments, hotel proposed near Norwalk-Wilton border

Pat Tomlinson  NORWALK — An apartment complex and a hotel could soon join LA Fitness and a slew of medical offices on a property near the Norwalk-Wilton border.

iPark Norwalk II LLC filed a special permit application earlier this month for a 244,750-square-foot expansion to its property at 761 Main Ave.

The expansion calls for two new buildings to be added to the property: A 164,750-square-foot apartment complex featuring three floors of residential housing over one story of parking, and an 80,000-square-foot, 120-bedroom hotel.

The proposed apartment complex would feature 132 units. All units would either be studio or one-bedroom apartments with about 750 square feet of space on average.

Lynne Ward, executive vice president of National Resources Company, the parent company of iPark, said the development will offer units “unlike” those currently being built in the area.

“This is really akin to ‘workforce housing,’ and many of the people who will live here are already working or visiting on the site,” Ward wrote in the application.

National Resources Company did not respond to a request for comment Monday.

The iPark property at 761 Main Ave., which sidles the border between Wilton and Norwalk, currently has more than 371,000 square feet of buildings, which includes an LA Fitness gym, warehouse space and office space.

The company’s special permit application said there would be “no changes” to the existing land uses on the property.

If approved, the expansion would bring the development on the property to 616,444 square feet in total.

In June 2016, the development’s owners successfully lobbied Wilton’s Planning and Zoning Commission to revise the town’s zoning regulations to make them more hotel friendly.

Under the revised regulations, the maximum height of buildings in Wilton would be increased from three stories and 39 feet to four stories and 55 feet for properties that meet the minimum acreage requirements for 5- and 10-acre design-enterprise districts.

Wilton’s then-Town Planner Bob Nerney said the changes opened the door to the eventual construction of a hotel, which he said at the time had been in discussion for “many years.”

The newly proposed plan is set to come before the Zoning Commission next month.

The commission’s next meeting is scheduled for Feb. 4, but it is unclear if the iPark application will be discussed then.


Eversource to start installation of gas line today in Bristol

Eversource Gas is scheduled to start installation of a gas line today in Bristol.

The work will be in the neighborhood which includes Crown Street, Earl Street, Judson Avenue and Melrose Street. Construction will take place between 7 a.m. to 4 p.m. Monday through Friday. There will also be the occasional Saturday work.

To find out more about this project, residents can contact Chris Tralli, of Eversource Energy at 860-302-6024 or Jesse Arsenault, construction superintendent of NPL, which is the contractor hired by Eversource to do the project, at 203-673-8508. 


Dominion officials discuss future of Millstone Nuclear Power Station

Sten Spinella  The Day Editorial Board met with leaders from Millstone Nuclear Power Station’s owner Dominion Energy on Tuesday afternoon to discuss the many issues facing the facility in Waterford.

During the hourlong meeting, Dominion officials spoke of the company’s stance on 100-year nuclear reactor license renewals, the status of Millstone’s finances, the question of what to do with nuclear waste and whether Millstone is a safety-conscious work environment, among other topics.

Power purchase agreement

Dominion State Policy Director for New England Weezie Nuara and Senior Vice President and chief nuclear officer Dan Stoddard said they’re pleased with how the 10-year contract between Dominion and utility companies in 2019 has worked for the company and ratepayers.

Gov. Ned Lamont stepped in to help secure the deal — called a power purchase agreement, or PPA — between Dominion, Eversource and United Illuminating. The contract calls on the utilities to buy half the plant’s output over the next decade. Dominion had threatened to shutter the 2,100-megawatt Millstone unless the state let it compete against higher-priced solar, wind and hydropower. Because of Millstone, Dominion is Waterford’s largest taxpayer.

“The PPA was a win-win, certainly for the ratepayers of Connecticut getting stable prices for a carbon-free resource, but also for Dominion Energy, giving us the predictability that we’ve needed to be able to make investments in the plant to carry it out through the end of this decade,” Stoddard said, adding that Dominion had to make significant investments to keep the plant operating safely and reliably.

“Without the PPA ... we would’ve been forced to retire these units early,” Stoddard said.

Nuara said the PPA price of 4.99 cents per kilowatt hour is “one of if not the lowest price for a carbon-free resource announced to date.” She highlighted a draft of the state Department of Energy and Environmental Protection’s integrated resource plan, which assesses future electric needs. This year’s is the state’s first look at ways to meet Gov. Ned Lamont’s executive order of a 100% zero-carbon electric sector by 2040.

“One of the pathways analyzed was a Millstone PPA extension through 2040, and we were pleased to see the results of that analysis; would lead to savings for Connecticut ratepayers,” Nuara said.

Nuara and Stoddard floated the idea of coming to a similar agreement that would run past 2029.

“It’s not too early at all — in fact it’s very timely — that we begin looking at options to extend and expand that power purchase agreement so that Millstone can be part of the carbon-free solution for Connecticut and New England well past 2030,” Stoddard said. “With the option of subsequent license renewal on the table, taking these units beyond their current 60-year licenses out to 80 years, we can continue that past mid-century.”

Millstone is the final merchant, or unregulated, plant in Dominion’s portfolio right now after selling or shutting down other facilities.

“No business is going to continue to operate something that’s not profitable,” Stoddard said.

100-year license renewals

It’s possible that Millstone could continue operating for 100 years. 

Last week, the federal Nuclear Regulatory Commission convened to discuss the possibility of expanding license renewal for nuclear reactors to 11 years, potentially opening the door for Millstone's reactors to remain licensed until 2075 and 2085, respectively. The exploratory meeting was meant to begin an official discussion regarding license renewal for 100 years of plant operation. Nuclear plants originally were licensed for 40 years, which was later extended another 20 years to 60, and a subsequent renewal brought that number to 80 years.

Millstone units have already had their licenses extended once. Unit 2, originally licensed in 1975, entered its extended license period in 2015. Its license is set to expire in 2035. Unit 3, originally licensed in 1986, doesn’t enter its extended period until 2025. Its license is set to expire in 2045. Millstone’s Unit 1, which operated from 1970 to 1995, was shut down after the discovery of a leaking valve.

Stoddard said the science for understanding the aging of nuclear plant systems, structures and components is solid, and it’s understood how to make reactors safe for up to 80 years.

“Most of that same science still applies to go from 80 to 100. The focus now is, here’s the body of knowledge we have to go to 80, are there new aspects that we need to do additional research and evaluations on to take these from 80 to 100 years?” Stoddard said. He doesn’t believe the possible processes of replacing or refurbishing Millstone’s equipment would be overtly dangerous, either.

“But you have to say, is there a point where it becomes too burdensome or too expensive to do that?” he continued. “We haven’t seen that yet.”

Stoddard also addressed the question of: Wouldn’t it be better, instead of taking mid-20th-century technology and pushing it out late into the 21st century, to put online a new generation of nuclear plants with a higher threshold of safety?

“I think it’s a ‘both' and not an ‘either/or,’” Stoddard said. “These plants are fully capable of operating out to 80 years-plus safely and reliably. In addition to that, not in replacement or substitute for that, we are exploring new technologies like small modular reactors.”

Waste and the environment

The federal government had committed to take possession of nuclear waste from facilities like Millstone but later reneged, meaning Millstone stores its used fuel on site. Stoddard said ratepayers have paid a small amount for storage in the past but don’t currently. He expects that there eventually will be a federal solution to the issue and it will revolve around consolidated storage, “but until that happens, the fuel can be very safely stored on site.”

“The federal government had a legally binding requirement to take title to the used fuel, which they defaulted on. There are still options for storage out there,” Stoddard said. “There’s certainly the long-term, deep geological suppository that could be out there, there’s also consolidated interim storage in a couple of locations around the U.S. That said, we have demonstrated the ability to effectively manage the nuclear fuel on site.”

In addition to spent fuel pools, Millstone has dry storage in metal canisters encased in concrete, which can be stored safely for decades, he said.

“As far as who pays for that, the industry has previously sued the Department of Energy for its failure to live up to its requirement, and there is an ongoing settlement, which is updated periodically,” Stoddard said. “The cost of loading that fuel into dry storage, the procurement cost of the metal canisters, the concrete storage modules, we are reimbursed by the DOE for those costs.”

Dominion spokesperson Ken Holt said since the company purchased Millstone in 2001, it has taken on the cost of storing spent fuel, whereas previous owner Northeast Utilities charged ratepayers.

Stoddard and the others addressed the still-unresolved issue of Millstone’s use of water from Long Island Sound, which it takes in to cool its reactors then releases, warmer, into the Sound. He said Dominion and Millstone have evaluated the cooling procedures and sent information to the state as part of the National Pollutant Discharge Elimination System permit renewal application process and is awaiting renewal.

“We see other ways of complying with that rule without going to cooling towers," Stoddard said, referring to structures that can remove heat from the used water before release. "That would be unbelievably onerous to the plant, and I would not see that happening. No reasonable cost-benefit analysis would support cooling towers when there are things we can already do. We reduce intake cooling flow at these units during the spring season, I believe it’s the winter flounder spawning season. We already reduce flow to reduce our impact, so any additional benefit would be very small and at a huge cost.”

Stoddard said Millstone would shut down before installing a cooling tower.

“You’re talking about protecting the environment — do you protect the environment by forcing 2,100 megawatts of carbon-free energy off the grid? Which is in effect what that would do, so that would make no sense,” he said.

Stoddard assured the Editorial Board that Millstone is a safety-conscious work environment, meaning employees don’t fear coming forward if they see a nuclear safety issue that makes them uncomfortable. He said Dominion and Millstone emphasize engaging with employees on the ground “daily to understand what issues and concerns they may have.”

“We still have an employee concerns program, as every nuclear plant has, to provide a means for reporting concerns outside the normal management chain. There’s also a process where people can go directly to the NRC,” Stoddard said. “We also have a built-in reporting tool called our Corrective Action Program where people, if they have an equipment, procedure or process problem or concern, can write a condition report, get that into the system and get it reviewed and evaluated.”


Biden toughens Buy American rules

Jenn Goodman  

  • President Joe Biden signed an executive order yesterday aimed at increasing government purchases of American-made products, a move that could affect construction firms that do business with the federal government. Most notably for contractors, Biden indicated the Buy American policies will apply to his massive plans for infrastructure and new energy projects.
  • "We’ll invest hundreds of billions of dollars in buying American products and materials to modernize our infrastructure, and our competitive strength will increase in a competitive world," he said in remarks. "That means millions of good-paying jobs, using American-made steel and technology, to rebuild our roads, our bridges our ports, and to make them more climate resilient."
  • The new policies include beefing up government procurement rules to make it harder for federal agencies to purchase imported products, updating what constitutes an American-made product and raising local-content requirements.

Manufacturing and labor groups including the AFL-CIO applauded the order, which tightens policies already in place.

"The Trump administration used the right words but never put in place policies to affect meaningful change," Richard Trumka, president of the AFL-CIO, said in a statement. "This executive order will close loopholes that allow agencies to sidestep Buy American requirements ... [and] is a good first step in revitalizing U.S. manufacturing."

Brian Turmail, vice president of public affairs and strategic initiatives for the Associated General Contractors of America, said the association is taking a look at the new order and that its ultimate impact will not be known "until we see how each federal agency opts to implement it."

While government purchases are only a small fraction of the U.S. economy — about $586 billion in fiscal 2019, according to the Government Accountability Office — Biden said the move will help forward his agenda to create good-paying union jobs for American workers and stimulate the U.S. economy.

The Buy American order is the latest in a flurry of directives issued by the new president in the days following his inauguration last week. Through executive orders, proclamations and other memoranda, Biden addressed issues such as COVID-19 mitigation, economic relief, combating climate change and advancing racial equity, many of which will have implications for U.S. contractors.

For instance, Biden signed an order directing OSHA to consider a national emergency temporary standard for COVID-19 in the workplace and to issue updated, national guidance on workplace safety for COVID-19.

He also ordered construction work on the U.S.-Mexico border wall to stop and rescinded the national emergency declaration used by former President Donald Trump to divert billions of dollars to the wall from the Defense Department budget. 

January 25, 2021

CT Construction Digest Monday January 25, 2021

New London State pier project ‘exactly what our state needs’

Chris DiPentima  The year 2021 is underway, and with the new year, Connecticut’s businesses are seeking new opportunities for relief and growth. As our state’s business community continues to rebuild after COVID-19 shutdowns and a challenging 2020, we must look to new industries, new possibilities, and even new technologies to strengthen Connecticut’s established manufacturing and technology base.

Connecticut’s offshore wind industry is quickly emerging as one of the state’s key industries as further investment goes into additional environmentally friendly, sustainable energy technologies.

With Connecticut seeking clean energy in offshore wind farms, we are experiencing a dramatic shift as new supply chains begin to form and massive infrastructure projects, such as the $157 million public-private upgrade of the State Pier in New London, move forward to prepare for this burgeoning mari-time industry. Connecticut’s manufacturing businesses need to be ready, or we will miss out.

Just last month, U.S. Senator Chuck Schumer (D-N.Y.), now the powerful Senate majority leader, announced a multi-million dollar investment through the New York State Energy Research and Develop-ment Authority to upgrade port infrastructure and prepare the state for its own growing offshore wind industry. This is an industry that has bipartisan support due to its potential climate impact and opportunity for high-tech business development and manufacturing on U.S. soil. Other states have already made overtures to lure the project proposed for the State Pier.

If Connecticut continues to delay in its preparations for the offshore wind industry, we will miss out on the anticipated 460 construction jobs, approximately 400 new offshore wind-related jobs, millions in local community investment, as well as partnerships with the local chain of manufacturers and suppli-ers this project will create.

It is time for our elected officials, business leaders, industry organizations, environmental advocates, and workforce to come together and support Connecticut’s offshore wind industry and the redevel-opment of the State Pier.

We are at a critical juncture, as businesses seek new opportunities to drive the post-pandemic recov-ery and future growth. The introduction of a new industry that is willing to invest in Connecticut is exactly what our state needs to rebuild.

Chris DiPentima is the president and CEO of the Connecticut Buiness and Industry Association.


Connecticut Port Authority working to bring State Pier project on budget

Greg Smith  New London — A state official involved in planning for the reconstruction project at State Pier in New London says efforts are underway to keep the project on budget.

Kosta Diamantis, deputy secretary for the Office of Policy and Management, addressed the Connecticut Port Authority this week and fielded questions about the possibility of costs escalating for the $157 million project, which is being funded through a partnership by the state and joint venture partners Eversource and Ørsted.

State Sen. Paul Formica, R-East Lyme, was among those to question statements made by Gov. Ned Lamont to The Day’s editorial board earlier this month that the cost of the project had risen above $200 million. Formica also wanted clarification on whether the state was on the hook for cost overruns.

Diamantis said the initial design phase is nearing completion and while estimates are above $157 million, there are sure to be revisions as the process moves forward.

“At the end of the day it’s the owners' responsibility, through the various consultants, to sit down with them and taper where this project needs to be for the purposes imagined by the owners,” Diamantis said. “We’re still in the estimating phase. There’s nothing definitive at this point.”

He said upcoming meetings with the construction manager will better separate what is essential versus what is wanted for the project. OPM was tasked by Lamont with financial oversight of the port authority in 2019, a tumultuous year for the quasi-public agency that included the resignation of its former executive director, a financial audit that revealed questionable accounting and spending habits and legislative hearings.

Diamantis, who is also the director of the Office of School Construction Grants and Review of the state Department of Administrative Services, said the project is not unlike a school construction project where architects and engineers include elements and amenities that can lead to cost overruns.

David Kooris, chairman of the Connecticut Port Authority's board of directors, reiterated that the CPA is working with construction manager Kiewit to “hone the scope of the project to bring it in line with costs estimates in earlier iterations of this design.”

The original estimate for the project was $93 million but by the time a deal was signed, the cost had risen because of alterations made to the design to better accommodate Cross Sound Ferry’s concerns about interference in its waterfront operations. Ørsted and Eversource have committed $77.5 million and the state and port authority the remainder.

“We are in the midst of an in-depth process to bring the project in line with the funds available,” Kooris said. “A lot of people have their sleeves rolled up and are working on it. The idea that there is a new dollar amount is not accurate. There are estimates that continue to be developed.”

Kooris said if the project does exceed $157 million, the Harbor Development Agreement puts the onus on the CPA to seek additional funding from the state. If the state refuses, the CPA is likely to go to Eversource and Ørsted to help fill the gap. If they elect not to add additional funds, Kooris said further efforts will be made revise the scope of the project to get it in line with available funds.

Board member John Johnson promised full transparency as the project estimates come to light.

Meanwhile, CPA Executive Director John Henshaw reported this week that cleanup of the site in preparation for construction is expected to get underway by mid-February. He said Kiewit has expressed its desire to be on site by March.

The port authority on Tuesday approved a new extension to State Pier tenants, including road salt company DRVN.

DRVN, whose massive pile of salt remains at State Pier, will have an extra month to continue to sell its product. A previous extension had given the company until the end of January to sell the salt or forfeit it to the CPA in order to make way for upcoming construction; it now has until the end of February.

“It’s obviously in everyone’s interest to see DRVN successful in selling that salt,” Henshaw said.

Commercial fishermen and Skanska, the construction company using the pier as a staging area for work across the river at Electric Boat, also will have additional time.

Plans for State Pier to become a staging area for the offshore wind industry involve an expansion to allow the pier to handle larger vessels and heavy-lift cargo. The plans also call for filling in the area between the two existing piers to create additional storage space and will result in three berths.

Ørsted and Eversource will lease the pier from pier operator Gateway for a minimum of 10 years to use the facility for the pre-assembly of wind turbine generators. Ørsted and Eversource plan to use State Pier to support their planned 704 megawatt offshore wind farm, Revolution Wind, and other projects in the planning stages across the Northeast.

The projects await approval by the state Department of Energy and Environmental Protection and U.S. Army Corps of Engineers.

Kiewit, construction manager for the State Pier project, is holding a virtual project information session on Jan. 28 to provide an update on the project and advertise procurement opportunities. For more information, visit the event webpage, bit.ly/kstatepier1.


Tens of millions in power plant revenue at stake in Killingly

John Penney  KILLINGLY - With Gov. Ned Lamont recently publically questioning the prospect of the Killingly Energy Center ever getting constructed, where does a halted project leave the town?

 With about $125 million fewer dollars.

Under a pair of 2018 Town Council-approved agreements, the town is in line for $5 million in Community Environmental Benefit, or CEBA, money, once the facility is built, along with $120 million in projected tax revenue over the course of 20 years of operation.

But that windfall is obviously dependent on the plant going online, Town Manager Mary Calorio said.

“But we do not count on that money until it’s actually in hand,” she said. “None of that money is being looked at right now as realized revenue and we’ve made no capital improvement plans based on that money. It’s all hypothetical at this point.”

The two agreements with NTE Energy, which is seeking to build a 650-megawatt plant on Lake Road in the Dayville section of town, were finalized in January 2018. The “unrestricted” CEBA money was earmarked for environmentally-oriented projects, with ideas for a scholarship fund, water testing at Alexander’s Lake and tree-planting initially discussed, but no final spending decisions have yet been made.

An original revised tax stabilization agreement was revised up from $90 million to $120 million as the plant’s projected energy output increased.

The town’s say in the project was always limited to ensuring proper local land-use requirements were met, with the larger issue of whether the plant should be constructed never under the Town Council’s purview.

“That’s why the Siting Council was formed, to make a decision on projects whose scopes extend beyond the borders of any one town or city,” Calorio said. “Projects like this are too big of a political football to be decided on locally.”

Calorio said she’s not sure how the project could be halted if the company is approved for pending wastewater discharge permit and water quality certifications.

“If those standards are met and the project is rejected without grounds, I think that could be easily challenged,” she said.  

The project has gotten a split reception by the town’s elected officials since it was first introduced. The largest public proponents of the plan have been union workers pleased with the idea of hundreds of new construction jobs needing to be filled.

“These are good jobs with living wages and secure benefits,” Sal Luciano, president of the Connecticut AFL-CIO wrote in a 2019 letter of support for the project.

Environmental groups have roundly criticized the project over possible negative air, water and wildlife impacts.

The project, and its tens of millions of potential incoming local dollars, has not been a frequent item of discussion for the current council. During a February goal-setting session, council members listed “Support NTE project,” as the seventh of 23 goals discussed, though the issue failed to make councilors’ top five list of priorities.

The CEBA money and its possible uses also came up again last year when council members were considering upgrading the Broad Street community center.

Council Chairman Jason Anderson said there’s no question the CEBA and tax stabilization funding is needed.

“That’s money that we can certainly use for things like school projects and roads,” he said. “I hope there’s some final decision made on this project in the next few months, but I was hoping that two years ago.”


146-unit apartment development proposed in Farmington’s medical district

Greg Bondonaro  well-known Farmington developer is proposing a major 146-unit apartment development in the heart of the town’s medical district, a project that has the support of major area employers, including the nearby Jackson Laboratory for Genomic Medicine, UConn Health, Stanley Black & Decker and Carrier Global Corp.

The project, which is garnering opposition from nearby residents, is expected to be discussed during a planning and zoning meeting Jan. 25, and would convert vacant land on Farmington Avenue -- across the street from Jackson Lab and behind a UConn Health building  -- into a 146-unit apartment development with 224 parking spaces, including garages. 

A project map also shows there will be an entrance on Quarry Road. Full project details, including the overall development price tag, weren’t immediately available Friday morning. 

That land was put up for sale in 2018 by Farmington Avenue Baptist Church and was purchased at the end of 2019 for $1.1 million by prominent Farmington developer Geoffrey Sager of Metro Realty Group, which has been an active builder of medical office buildings in the area. 

Metro Realty Group is the project's lead developer. 

The development has already received support from the Farmington Economic Development Commission and area employers like Jackson Lab have talked for years about the need for more housing in the area.

Metro Realty needs a zoning change on the property to move forward with the project, town documents show. 


Delays, labor costs make for pricey transit projects: Getting There

Jim Cameron  Why is transportation construction so expensive in our area? What kind of honor was it when New York City recently surpassed Zurich (one of the most expensive cities in the world) as No. 1 on the most-expensive-place-to-do-underground-construction dishonor roll?

The highly respected Regional Plan Association has studied that question and offers some explanations and frightening examples. Focusing on three recent MTA mega-projects in New York City — the Second Avenue Subway, the #7 subway extension to Manhattan’s west side and the LIRR’s East Side Access project — their findings make for depressing reading.

Let’s focus on the ESA plan, an ambitious project to construct new rail tunnels under Park Avenue and a new rail station 10 storeys beneath Grand Central to serve LIRR trains. This is an important project for Connecticut as it will eventually allow some Metro-North trains to run across the Hells Gate Bridge to Penn Station.

Once estimated to cost $4.3 billion and to be finished by 2009, ESA may not be finished until 2022 at a total cost of $12.2 billion. So, what happened?

The RPA report says the project was initially pushed by politicians who grossly underestimated the initial budget just to get it approved. Because Metro-North and the LIRR (both part of the MTA) operate as silos, they had trouble coordinating their efforts. Worst of all, the procurement process and contract writing was a mess, adding four years of delays.

Though the ESA project was huge in cost, it was small in distance — only 3.5 miles of new tunnels and track. But it involved boring huge tunnels through bedrock and ended up building the most expensive mile of railroad track in the world at over $3 billion.

One big culprit was labor.

In 2010, auditors found that 900 workers were each being paid about $1,000 a day though only 700 workers were needed for the job. Nobody could explain what the other 200 workers were doing every day, aside from getting rich.

An investigation by the New York Times blamed the cozy relationship between labor unions and politicians, consultants who hired MTA bosses to gain more work and contractors and vendors regularly inflating their bids by 15 to 25 percent for what’s known as “the MTA factor,”, i.e. the hassles of working with that agency.

Jobs like running the tunnel boring machines were staffed with 25 workers on the ESA project, about triple the number employed on the same equipment overseas. Elevators at the construction site each had an human operator even though they ran automatically. Crane operators also had an “oiler,” an unneeded throwback to older times. All told, staffing for underground construction in New York City was quadruple that of similar jobs abroad.

The labor unions push back saying the work is dirty and dangerous and their members live in one of the most expensive cities in the world, so they deserve more.


Lamont to business: We need ideas for transportation funding

Ken Dixon  As he plans his two-year budget proposal, the state’s rapidly depleting fund for transportation infrastructure is a major headache, Gov. Ned Lamont told a business audience on Friday.

He asked for their help, not with money but with ideas — a year after every financing plan to fix highways, bridges and transit systems failed in the General Assembly.

The state’s Special Transportation Fund is slowly but steadily going broke and could be exhausted by 2024. Updated transit infrastructure remains a key to the state’s future economic success and viability, Lamont told an online economic summit of the Connecticut Business and Industry Association.

Lamont recalled that his trucking-tolling proposal “went over like a lead balloon” in the legislature, which dropped the plan in an election year. Business executives at larger companies tended to favor tolling, while smaller companies and were divided. CBIA, with a divided board, did not take a public position on tolls.

“I didn’t like the other guys’ ideas either, you know, which was borrow $700 million a year or take the money from the rainy day fund,” Lamont said of a plan from minority Republicans to tap the state’s $3 billion emergency reserves. Lamont, during a conversation with Chris DiPentima, president and CEO of CBIA, asked for help from the business community.

“So weigh in,” Lamont said. “I need a problem solvers caucus who cannot just blame from the sidelines, but say ‘Here’s how I would solve the problem,’ and CBIA can really help me take the lead on this. If we can do this with transportation, we can do this with maybe pensions and other big knotty problems that have festered in this state for too long.”

Lamont presented a mixed picture of transportation financing, with locally generated revenues falling but more cash expected from the Feds in the Biden administration.

“People are driving less, the price of gasoline is down,” and that reduces a large source of revenue, fuel taxes, Lamont said during a 45-minute morning appearance. “So it’s just one of those things that Hartford hates to solve but we have to solve it.”

In the pandemic, however, with many fewer cars on the road, many state Department of Transportation projects were able to pivot to daytime construction, saving the state money, Lamont said.

As for federal money, “I think you’re going to see Connecticut get an additional $200-plus million out of federal support,” he said. “So we’re in good shape. We don’t have to slow things down. We don’t have to slow up the state of good repair. But I still say shame on Connecticut. The feds are going to come up with an infrastructure bill, which is transportation, broadband, green technology and it’s going to be 80-20 or 90-10 (reimbursement). We have to show we have a revenue stream we can pay for our 20-percent share on that.”

DiPentima did not commit to anything specific but showed support.

“I’m happy to say, governor, that this is one of our top priorities for this year: a bipartisan solution to the the transportation and infrastructure,” DiPentima said. “That’s critical to growing our state. That’s critical to us being better and stronger than before.”


January 22, 2021

CT Construction Digest Friday January 22, 2021

The Connecticut Department of Transportation released their 5-year, $9.7 billion, capital plan. Every year, the department updates the plan in order to leverage all federal and state funds available to help cover the costs of capital projects around the state. The plan includes investments in the state’s multi-model transportation network, highways and bridges, bicycle and pedestrian amenities, public transportation, and state DOT facilities.

 

  • The department is planning on utilizing $2.1 billion in total capital program funding in federal fiscal year 21, which began on October 1 including:
    • $800 million for bus and rail assets
    • $1.3 billion for highway and bridge infrastructure
  • Over the 5 year plan, 62% will be spent on highway and bridge projects, 36% will be spent on public transportation, and 2% will be spent on facilities.

 

The capital plan report can be found here. The capital plan financial table and project listings can be found here.


A big infrastructure spending bill might finally be in the cards

Paul R. La Monica, CNN Business   oe Biden is now President and Democrats have gained a slim majority in the Senate along with the party's control of the House. Does that mean that this is finally the time for Congress to pass a big, bold infrastructure spending bill that can help boost the economy?

There were high hopes in 2016 that either Hillary Clinton or Donald Trump would focus on infrastructure.

But after Trump defeated Clinton, not much happened on the infrastructure front — save for extending funding for the Obama-era Fixing America's Surface Transportation (FAST) Act for an additional year when it was set to expire in September 2020. The money for the program now runs out at the end of September.

More will be needed, and some experts say it is politically doable even in a fractured environment.

"With the slim majority the Democrats have in the Senate, infrastructure spending is probably going to be one of the less controversial measures and could be implemented," said Gautam Khanna, senior portfolio manager with Insight Investment. "A $1.5 trillion to $2 trillion package — somewhere in that zone — could get through."

Of course, Biden and other political leaders are likely to prioritize more stimulus for consumers and businesses struggling due to the Covid-19 pandemic before tackling any new infrastructure initiatives.

Rebuilding aging transportation networks

But economists and investing experts say that spending more to rebuild roads and bridges, as well as building out high-tech infrastructure such as 5G networks, could also help provide jobs to those who need them and give a lift to the broader economy.

"There should be some sort of bipartisan road here for an infrastructure bill. How long have we talked about the need to rebuild?" said Hank Smith, head of investment strategy at Haverford Trust. "A bipartisan agreement could be an easy, early win for Biden and a net positive for the economy."

A new infrastructure bill could also boost the sales and earnings for a variety of leading US companies in the industrial and tech sectors.

Companies that sell aggregates such as sand and gravel as well as makers of concrete and cement could benefit from any increased spending on transportation infrastructure.

"Where will infrastructure spending money go? Construction firms could benefit," said Kristoffer Inton, director of basic materials equity research for Morningstar."

"If you slice up a road, the amount of rocks going into it are numerous and they are not just the concrete and asphalt we can easily see," Inton added, saying that companies like Vulcan Materials, Martin Marietta, Summit Materials and US Concrete could see increased demand.

President Biden and other Democrats are likely to push for increased spending on other types of infrastructure as well, including sources of renewable energy.

"It's not just going to be spending on roads. Equally as important for infrastructure is the climate agenda," said Josh Duitz, portfolio manager of the Aberdeen Standard Global Infrastructure Income Fund. "When you look at older infrastructure versus new infrastructure, we need both."

Clean energy and 5G could also be part of an infrastructure bill

With that in mind, Duitz said his fund owns renewable energy companies such as NextEra and Atlantica Sustainable Infrastructure but does not own more traditional infrastructure investments such as construction equipment giants Caterpillar and Deere.

Duitz thinks there are better investing opportunities with emerging industries and technologies. He said that increased investments in 5G wireless broadband networks will be critical as well in order to help bridge the digital divide in the country.

That's why his fund owns cell tower owners American Tower and Crown Castle as well as fiber-optic construction firm Dycom.

"Broadband needs to be part of a new infrastructure bill. It's an essential service, especially as more people work from home," Dultz said.

Others agree that green energy and 5G will be a priority. Nick Langley, portfolio manager at ClearBridge Investments, said tower company SBA and utilities Clearway and Brookfield Renewable Partners could also be a beneficiary of a Biden infrastructure plan.

But he added that another old economy industry — railroads — could also thrive.

Langley said that companies like Union Pacific, Norfolk Southern, CSX and Kansas City Southern could benefit as the industry goes more electric and becomes more competitive with the trucking sector as a greener option for the long haul transportation of goods.

Still, there are questions about whether Congress will be willing to approve a big infrastructure package. There are concerns among some Republicans about the rising debt load. And the Democrats have a razor-thin majority in the Senate.

"The question with infrastructure is 'will you have broad-based support'," Insight Investment's Khanna said. "Politicians will need to show it benefits society and taxpayers at large and can improve the economy and make it more productive."

But even if Biden and other Democrats are able to make that case, they will still need to convince enough Republicans to come on board and support a big spending package. That may not be easy.

"It's going to be complicated economically not to mention politically to get much more spending on infrastructure," said Bob Doll, senior portfolio manager and chief equity strategist at Nuveen.

"Are the probabilities of something passing higher today than four years ago? Yes. But it's not definite," Doll added. "To varying degrees, people want an infrastructure bill. But what's in it, what the size of it is and how you pay for it could be very different."




January 21, 2021

CT Construction Digest Thursday January 21, 2021

CT Democrats looking to Biden's help to fight virus, build economy

Ken Dixon  Some wept tears, some felt palpable relief. After four of disruption in the federal government and a year of denial in the COVID pandemic, Connecticut’s top elected Democrats called President Joe Biden the man for the moment.

And the cause of the moment, they said Wednesday, is to beat back the virus and repair the damage it has cause the nation’s economy and social fabric.

Gov. Ned Lamont, U.S. Sen. Richard Blumenthal, U.S. Rep. Rosa DeLauro, state Attorney General William Tong and Secretary of the State Denise Merrill told reporters that Biden’s inauguration puts on-track the next $1.9-trillion aid plan, including up to $400 billion for state and local governments. They hailed Biden’s flurry of new executive orders to reverse former President Donald Trump’s penchant for deregulation and denial of climate change.

“The federal government is going to become an active partner and a leader,” Blumenthal said. “We have a president, but we also have the Democratic Congress that will help lead and support states in a way that frankly, simply, has been absent the last four years.”

Connecticut is well positioned to fare well under the Biden administration. In addition to COVID-related bailout money and more for infrastructure, the elected leaders said they expect that full IRS deductions for state and local taxes will be returned. Trump’s tax reform of 2017 limited deductions to $10,000 for state and local taxes, costing residents of high-tax Connecticut billions of dollars — and prompting Northeast states to sue the federal government over the change.

During an hour-long Zoom news conference, DeLauro and Blumenthal stressed the need to take the recent second impeachment of Donald Trump to a trial in the Senate that could bar him from holding office in the future. “We can walk and chew gum at the same time,” DeLauro said of Congress’s ability to hold a Trump trial in the Senate while preparing the next historic round of pandemic relief by late February.

“We’re going to do everything we can to make sure that we get this relief and we move it and we do it as quickly as we can,” DeLauro, the new chair of the powerful House Appropriations Committee. “Everybody was left behind for the last four years. It is now our opportunity to move forward.”

Blumenthal noted that now-U.S. Sen. Minority Leader Mitch McConnell in recent days admitted that Trump provoked the Jan. 6 mob assault, which became “an act of domestic terrorism,” indicating that there might be enough support in the Senate to convict Trump in a trial. “The evidence is pretty open and shut,” Blumenthal said. “We should be agreeing on the severity of the law-breaking here and as a matter of morality, the wrong things done by Donald Trump.”

“This is a fresh start and that’s really important,” Lamont said. “Some consistency and support from Washington as a real partner will make a big difference.”

Lamont is sure that his old friend, the new president, will push an important relief agenda that will help Connecticut, and hopes it would include an infusion of funding for the state’s unemployment trust fund. He agreed that reviving the deductibility of state and local taxes will be on Biden’s agenda.

“It was a punitive step directed at blue states and it should be reversed in the interest of fairness, but also I think and I hope that Joe Biden will make an effort to reverse it because it is economically inhibiting to recovery in those major states, New York New Jersey, Connecticut, California and others that are at the heart of economic revival.”

“Every family in the country is hurting,” DeLauro said.

“I think Joe Biden’s plan to revive the economy, to provide stimulus payments, aid for small businesses, unemployment insurance, assistance to state and local governments, maybe most-important a massive, major call to action on distributing vaccine” will succeed, Blumenthal said.

“We have a closely divided Senate,” Blumenthal said. “I think we ought to use every possible tool or method at our disposal, because the real needs have to be met. The hurt and pain that all of us see in Connecticut: the lines of people at the food bank, the number of people seeking vaccines and testing, the small business owners struggling to keep their doors open, families trying to put food on the table. We’re going to have real leadership from the White House.”

Merrill said she found herself crying during the televised inaugural ceremony on the steps of the Capitol, where two weeks earlier rioters broke into the building in a misguided attempt to stop the balloting of the Electoral College. “I felt an enormous amount of relief, that we were finally here, that we had a decent wonderful person as our new president,” she said.

Tong said he was most moved by the moment of silence Biden asked for, to honor the nation’s 400,000 dead in the pandemic. “As an Asian-America, this is a really important moment and as the son of immigrants this was an urgent day that we get here, so we can resume being and feeling like Americans,” Tong said. “There is so much work to do. There is so much work to undo frankly, the damage that’s been done over the last four years.”


How much federal funding will each state DOT receive?

  State departments of transportation are set to receive funds totaling $9.8 billion as a result of emergency aid from the $900 billion COVID-19 relief measure passed late last year. 

That number is a part of nearly $10 billion total earmarked for transportation spending, and experts say the funds are much needed.

“Since the early response to the pandemic, state DOTs have faced severe losses in state transportation revenues as vehicle travel declined,” Jim Tymon, executive director of the American Association of State Highway and Transportation Officials, said in a statement. “This COVID relief bill enables state DOTs to stay on track and support the efficient movement of critical goods and services as they maintain their transportation systems.”

The Federal Highway Administration must apportion the funds for state DOTs within 30 days of the bill’s enactment, according to AASHTO. President Donald Trump signed the bill into law Dec. 27. Each state’s portion will be based on the state’s share of obligation limitations within the Fixing America’s Surface Transportation or FAST Act, according to AASHTO.

Here is a sortable look at how much money each state will receive from the COVID-19 relief measure:

Connecticut $125,598,665 1.28% 

California and Texas will receive the most money with $918 million and $914 million, respectively. Those totals are far ahead the third most for Florida, which will receive $473 million. 

Washington, D.C., will receive the least amount of funding ($39 million), although among states, the bottom three amounts are for small states: New Hampshire ($41 million), Hawaii ($42 million) and Delaware ($42 million).

State DOTs can use the relief money to fund Surface Transportation Block Grant-eligible projects, preventive and routine maintenance, operations, employee and contractor salaries, debt service and availability payments and coverage for other revenue losses, according to AASHTO. Additionally, the relief funds — which will be available until Sept. 30, 2024 — could be transferred to public tolling and ferry agencies for all of the same costs as state DOTs.

Of the remaining funds for transportation, $115 million will go to the Tribal Transportation Program, $36 million to the Puerto Rico Highway Program, and $9 million to the Territorial Highway Program, according to ForConstructionPros.