October 18, 2022

CT Construction Digest Tuesday October 18, 2022

Hartford P&Z approves CT Children’s $280M master plan expansion with conditions

Robert Storace

The Hartford Planning & Zoning Commission has approved a $280 million expansion plan that will reshape Connecticut Children’s Hartford campus – but without a pedestrian bridge and garage.

Connecticut Children’s had submitted a master plan that called for, among other things, the hospital to be connected to a structured parking garage across Washington Street.

But, at its four-hour Oct. 11 meeting, P&Z members voted 6-0 to approve the master plan with conditions. Those conditions included removing the parking garage and pedestrian bridge from the project as members had concerns about a lack of information provided and how big the parking garage would be. The pedestrian bridge was to be connected to the garage.

The master plan noted that the pedestrian bridge/walkway would be owned and operated by a third party and be part of an independent permit application process at a later date.

Other conditions set forward by P&Z states the proposed encroachment beyond the Washington Street building line will be limited to the fourth story and above. In addition, the site plan – after the conditions are met – must still be reviewed by the Planning & Zoning Commission.

P&Z officials said the master plan could be resubmitted for reconsideration at a later date to include the pedestrian bridge and garage.

The expansion will be anchored by a new 195,000-square-foot, eight-story patient tower on CT Children’s Washington Street campus. It will include a new fetal care center. 

The current facility measures about 321,000 square feet with 187 beds.

And, according to the master plan, the expansion/addition will result in 50 NICU beds; 14 acuity adaptable patient beds; six advanced cellular gene therapy beds; six labor and delivery beds; and the capacity for 25 future beds. The plan also includes two new operating rooms in the fetal care center.

Connecticut Children’s President and CEO Jim Schmerling said in a statement the hospital “is thrilled the tower expansion master plan has been approved by the City of Hartford Planning & Zoning board. This was a critical approval and milestone in our journey to provide new services and enhanced care for more children. We look forward to our continued partnership with the city and neighborhood as we move forward with designing the new building to meet the growing health needs of our local community, state and region.”

Officials said the hope is that construction could begin in April 2023 and that the new tower could be completed by the end of 2025.

Connecticut Children’s said it plans to pay for the expansion by utilizing a number of different funding opportunities including philanthropy and structured loans.


Construction Crane Numbers Rise Across North America

LUCY PERRY

After taking a dip in 2021, the North American crane sector is experiencing a comeback. In its first quarter report released in April, the Rider Levett Bucknall (RLB) Crane Index logged a 4.5-percent increase in cranes at work across the continent. Toronto, Canada, is ahead of the pack in terms of number of working rigs.

RLB reports that the crane industry is "essentially recovering to crane counts from this time last year."

Of the 14 cities surveyed, five experienced an increase, six stayed the same and three decreased.

"With previously delayed projects being brought back online, the crane count experienced an increase of 22 cranes," said RLB.

Historically, residential cranes make up 50 percent of the count, while mixed-use makes up 22 percent.

The third most-active sector is commercial, making up 10 percent of the total count.

Major U.S. cities — Chicago, Denver, New York and San Francisco — as well as Toronto, Ontario, Canada, have seen increases.

Holding steady in their crane counts are Honolulu, Las Vegas, Los Angeles and Phoenix. Boston, Calgary, Portland, Seattle and Washington, D.C., have marked decreases in working cranes.

Cathy Sewell, RLB principal, said the top three construction sectors for cranes are residential, mixed-use and commercial.

City By City

In Las Vegas, Sewell said, the crane count remains unchanged. This year, new public works, commercial and residential projects will launch.

"Downtown Civic Center Building and Plaza construction is set to begin this year," she said, noting several projects in the spotlight.

Also, "a new Marriott hotel and Dream Hotel Las Vegas will start in 2022," said Sewell. "Near the convention center, construction of Fontainebleau continues."

The number of working rigs holds steady in Los Angeles, where multi-family residential and mixed-use projects account for 67 percent of crane utilization.

"The count for cultural and civic projects has slightly increased to 8 percent, and healthcare and hospitality sectors rose 6 percent and 8 percent respectively," said Sewell. "The cranes dedicated to transportation projects account for around 8 percent of the local count."

Cranes for commercial work remain steady, representing 4 percent of the count in Las Vegas.

In New York City, the crane count has seen a slight increase. Half of the total is located in Hudson Yards and the rest within the parameters of 59 Street to 14 Street and Second Avenue to 12 Avenue.

"The JP Morgan tower alone has four tower cranes in operation," said Sewell.

She noted that over the past few years, the city's crane count has dropped dramatically.

Sewell attributed the drop to the possibility that developers are looking to repurpose existing buildings, such as the Waldorf Astoria hotel and the post office across from Penn Station.

According to RLB, there is stability in Phoenix, where the number of operating cranes remains unchanged.

Rigs are at work at residential developments, including Skye on 6th, a 26-story apartment complex that includes a parking garage and retail ground floor.

Another project at 3rd Street and Garfield, will be a 24-story multi-family development, with retail, conference and business spaces on the street level, said Sewell.

Portland, Ore., has seen a small decrease in the number of cranes at work, as larger projects near completion, she said.

"The highest concentration of cranes is in the Southwest along the waterfront," said Sewell, adding that most projects are mixed-use or residential.

Those projects include senior living and affordable housing developments, but additional cranes are expected to work on several university, healthcare and aviation projects set to launch this year.

In San Francisco's downtown area, an increase in the number of cranes has been incremental.

"The large majority of cranes are allocated to residential and mix-use developments with industrial and commercial projects accounting for the remainder," said Sewell. "New residential developments in the Marina and Nob Hill neighborhoods reflect the city's critical need for housing."

Seattle's Capital Hill area has seen a resurgence in construction and the crane count there holds steady. Downtown Seattle has actually experienced a reduction in the number of rigs at work.

As in other major cities, the majority of crane activity is in the residential sector, but education projects are on the rise. Construction of healthcare facilities is steady while commercial work across the city is on the decline.

Since 2015, Toronto has led the North American crane count, and this year saw a 12 percent increase in cranes across the city, reported RLB.

This even as projects were completed, dropping 18 cranes from the previous survey count.

The Toronto commercial side leads in crane demand with 18 more rigs at work on projects in that construction sector. Residential and mixed-use projects also grew and marked a combined increase of seven cranes.

In Washington, D.C., the crane count has dropped as residential and mix-used projects have drawn to a close, but "indicators for future growth are evident," said Sewell.

"The pipeline for hospitality and residential sectors is particularly strong," she added. "Throughout the Buzzard Point neighborhood, many new mixed-use projects are in development."

Bright Future

In response to the upswing in crane counts, several crane providers have feathered their fleets with new rigs this year.

The All Family of Companies, Cleveland, Ohio, announced a purchase package of more than two-dozen Manitowoc and Grove cranes for its rental business this year. It includes 16 Grove rough-terrain cranes with capacities from 30 to 165 tons. The RTs will be tagged for daily construction work as well as the thriving wind market, according to All.

"Equipment from Manitowoc and Grove are essential components of ALL's product mix," said Michael L. Liptak, CEO and president of ALL. "These new additions to the fleet will give our customers outstanding flexibility for projects from the everyday to their most challenging."

In total, 60 new cranes are being added to the ALL fleet this year, and approximately half have already been delivered, said the company. The machines will be distributed across ALL's 33 North American branches based on market demand.

Morrow Equipment, Salem, Ore., also announced this summer it has ordered multiple flat-top, luffing and fast-erecting tower cranes for purchase from Liebherr USA. Morrow is an exclusive distributor of Liebherr tower cranes in North America.

The package is "part of our continued commitment to the best quality equipment available in the North American tower crane market, along with our long-term growth strategy," said Peter Juhren, president and COO.

In Bridgeville, Pa., Maxim Crane announced this summer the company has purchased 51 Grove mobile cranes. The package includes a mix of high-capacity RT cranes as well as five- and six-axle all-terrain (AT) cranes and reflects customer demand.

"We evaluated each category of our current rental fleet and analyzed research data and conversations with our customers to determine what cranes they would need to meet their lifting needs for the next five years," said Bryan Carlisle, CEO. "Based on the data, we felt that the combination of large RT cranes and AT cranes would enable us to maximize our uptime, increase our ‘rental readiness' and provide the equipment that would be most versatile throughout the entire Maxim Crane footprint."

"We evaluated each category of our current rental fleet and analyzed research data and conversations with our customers to determine what cranes they would need to meet their lifting needs for the next five years," said Bryan Carlisle, CEO. "Based on the data, we felt that the combination of large RT cranes and AT cranes would enable us to maximize our uptime, increase our ‘rental readiness' and provide the equipment that would be most versatile throughout the entire Maxim Crane footprint."

Not quite so dramatic in number, several smaller crane orders placed this year have had a significant impact on their regional construction markets.

Aspen Equipment delivered two Grove RT cranes to Tri-County Construction on New Year's Eve. The Eddyville, Iowa-based company put the cranes to work immediately on a demanding maintenance contract for an agricultural client.

"Aside from capital jobs, these cranes are generally being used on maintenance tasks, such as changing out gearboxes, conveyors and roof fans," said Rod Ashman, Tri-County's crane operation supervisor. "Sometimes we'll require every pound of capacity and inch of available boom, and then the very next job might just be hoisting a 2,000-pound motor onto a 30-feet-high balcony at a 20-foot radius. We can go from main boom picks of 50,000 pounds to erecting the jib and fly for a tip height of 275 feet in a matter of minutes."

Ashman said reliable performance is crucial to ensure the company fulfills its contract with the client.

"It all comes down to keeping our cranes maintained and in top working condition," he said.

This summer, H. A. Leo Crane, Webster, Mass., took delivery of a Tadano AT crane from dealer Empire Crane, Holbrook, Mass.

A third-generation crane company, H. A. Leo offers rigging, lifting and hauling throughout New England. In the 100- to 120-ton class, the AT crane was what the company needed for the type of work it does on a daily basis as well as the category of customers it serves.

Empire Crane also delivered a Tadano 200-ton lattice-boom telecrawler crane to C.D. Perry of Troy, N.Y. Perry chose the crane that fit its size requirements and simplified its job processes in marine, industrial, heavy civil and environmental applications.

"Telecrawlers are easier to operate, easier to mobilize, and when you can scope the boom in and out as well as retract the tracks in hydraulically, it makes it better for a variety of different applications," said Tyler Fane, vice president.

RLB remains hopeful for the North American construction crane outlook.

"We expect the crane count to remain steady," said the construction consultancy.

The company noted that the even keel remains despite the fact that many projects are experiencing delays in their schedules due to supply-chain issues.

"Construction costs continue to climb up, giving some developers hesitancy to break ground at this time." CQ


Construction planning numbers jump despite recession fears

Sebastian Obando

The Dodge Momentum Index, a benchmark that measures nonresidential building planning, increased 5.7% in September largely due to an influx of data center and education construction, according to Dodge Data & Analytics.

The September reading landed less than 5% below an all-time high, the latest sign of the construction industry dismissing recession fears, said David Reaves, Dodge senior economist.

“The gain in the momentum index and its components in September reassures us that despite whispers of recession, owners and developers are still looking to move forward with projects to meet demand,” said Reaves.

Demand for data center construction remains strong, but growing pains around the supply chain and inflation could mute the pace of building in the sector, said Reaves. The commercial component of the momentum index increased 2.9% in September largely due to data center construction, according to Dodge.

“Certain subsectors have shown resilience since the pandemic’s onset, such as data center projects, and continue to stream into the planning pipeline,” said Reaves. “However, looming challenges still remain for the sector, including supply shortages and the rising cost of materials that could chip away at the flow of new projects if inflation is not tempered.”

Institutional projects in planning rose 11.7%, largely due to a jump in research and development laboratory projects in the education sector, with solid contributions from health care and recreation builds entering the planning process, according to the report.

Courtesy of Dodge Data & Analytics

Thirty-nine projects with a value of $100 million or more entered planning in September, according to the release. Year-over-year, the momentum index was 26% higher than September 2021. The commercial component and institutional component increased 25% and 28% from one year ago, respectively.

The leading commercial projects included a $500 million data center campus on the Tech Park at Brambleton site in Ashburn, Virginia, and the $500 million construction of two warehouse buildings at the Matrix Global Logistics Park’s West Campus in Bloomfield, New York.

The leading institutional projects were the $311 million Shoshone-Bannock Casino in Mountain Home, Idaho, and a $300 million laboratory project in Somerville, Massachusetts.

Courtesy of Dodge Data & Analytics


Shelter Ridge development back before Shelton wetlands commission

Brian Gioiele

SHELTON — Plans for the Shelter Ridge development are back before the Inland Wetlands Commission — two years after developers pulled them off the table. 

The commission, at its meeting Thursday, stated it will set a public hearing at a future date for the project, which includes 375 one- and two-bedroom apartments, plus multiple retail and office buildings and 3,000 parking spaces on a 121-acre site at the intersection of Mill Street and Bridgeport Avenue. 

The project has remained in limbo, as the developers pulled the application from the Inland Wetlands Commission in October 2020, two weeks after Civil 1 — a Shelton-based engineering firm hired by the city to review all plans and perform its own analysis of the project — presented its review highlighting several areas it deemed incomplete. 

Attorney Dominick Thomas informed the commission at that time that the developers, who he represents, intended to refile after meeting with Civil 1 engineers to discuss the firm’s findings. 

The commission also voted to recommend the rehiring of Civil 1 to review the updated plans. 

The withdrawal does not affect the P&Z approval of a Planned Development District (PDD) for the project, according to Thomas. The PDD would allow an apartment building five stories high facing Bridgeport Avenue and three stories facing Buddington Road, based on the topography. The district also would allow for more than 300,000 square feet of retail space. 

Last year, the state Supreme Court upheld a lower court’s decision on the Planning and Zoning Commission’s 2017 approval of the Shelter Ridge development

In 2019, a Hartford Superior Court judge, in the case of John Tillman and Judith Tillman vs. The Shelton Planning & Zoning Commission, dismissed the Tillmans’ appeal, stating that the “plaintiffs have failed to establish that the decision was illegal or contrary to law, the commission acted arbitrarily or in abuse of discretion, or that the decision was not supported by substantial evidence.” 

The Tillmans then appealed that verdict in the state Supreme Court. 

The group Save Our Shelton, which formed in 2016 in response to the proposal, had done extensive fundraising to support the appeal. 

This ruling was the latest step in a process that began more than five years ago. After six public hearings, with hundreds of people voicing opposition, the Planning & Zoning Commission approved the PDD and zone change for the Towne Center at Shelter Ridge development at its March 7, 2017, meeting. The commission approved the plan by a 4-2 vote, with commissioners Virginia Harger, Elaine Matto, Ned Miller and Ruth Parkins voting in favor and Anthony Pogoda, Jr., and Jimmy Tickey against. 

Residents had voiced concerns about the possible negative effects of the plan, saying that the development and zone change would result in an increase in the volume of traffic the city currently experiences, increase an already high density of rental housing, result in blasting and construction for up to 10 years, and pollute the Mill River and local wildlife habitat.


Meriden Library project more than half complete

Michael Gagne

MERIDEN — Officials say the project to expand and renovate the nearly 40-year-old Meriden Library now is around 59% complete. 

The $13 million project, which began early this year, is currently on track for construction to be completed by March 2023, which is the time when the contractor, Montagno Construction, is scheduled to turn the Miller Street building back over to the city.

Officials now expect new furniture to be delivered by early April. Other furnishings will be installed once the construction is complete. The building is set to reopen later that spring. 

Anthony Montagno, project manager for Montagno Construction, told Library Building Committee members last week that the installation of new roofing for the project alone is around 91% complete. 

But some challenges have emerged that could complicate the construction schedule, including a recent notification from utility provider Eversource that it may take some six to eight weeks to restore natural gas service to the building.

Montagno said if it does take eight weeks to restore gas to heat the building that could put the contractor “in a tough spot,” as it would take significantly longer for interior wall paint and other finishes to dry without heat. 

“As of today, we’re in line with our mid-March completion,” Montagno said. That is so long as the gas issue is resolved, and if the heating, ventilation and air conditioning unit ordered as a replacement when a previous manufacturer informed the city of delays, is delivered when expected. 

Library Building Committee chairman Thomas Welsh said discussions are now underway with city leadership to help resolve the gas service delivery issue. 

“There is a full-court press to resolve that problem,” Welsh said, noting that if the restoration of gas service is not completed until late November or early December, that would set the project back. 

“We are sheetrocking now. Spackling is now being done,” Welsh said, explaining other issues could arise if interior paint freezes while it is still wet. 

The building committee discussed a series of requested purchase change orders and approved several of them. So far those change orders have not depleted the contingency funds built into the overall project budget. 

“So far we are still within the budget,” Welsh said. 

As for the delivery of the replacement HVAC system, Welsh said officials are still waiting on an “exact ship date.”

“The manufacturer told us it is now in production. We haven’t had any notice of a delay,” Welsh said, adding, “We will feel much better once we get an actual ship date in.”

Other details, including the installation of new signage, fiber optic internet, door counters, and security systems still need to be finalized. 

Earlier in the day, Meriden officials hosted Connecticut State Library officials and other guests, including representatives from other libraries around the state, to discuss the project during a gathering in the City Council chambers. That discussion was followed by a tour of the construction site. 

During the discussion, local officials explained the importance of maintaining steady communication between city and library staff, along with the importance of developing a strategic plan and gathering community input prior to undertaking a library building project. 

Mayor Kevin Scarpati and City Manager Timothy Coon both were active participants in that discussion. 

Scarpati said the goal of the library renovation and expansion is to maximize the facility — to “make it more inviting. And make it a community space.”

Scarpati explained messaging around the project focused on how it would change the community. Before the project began, staff surveyed residents to determine the community’s needs and expectations for what the library should provide. 

That process brought information back to the City Council, Scarpati said. “When you have over 2,000 respondents on a survey, saying, ‘here’s what we want. This is what we expect,’ our job is to then represent our community,” he said. 

Coon stressed the importance also of getting key decision-makers involved throughout the project to help sort out issues that may arise during such an endeavor. He said having a strategic plan to guide the vision for a renovated and expanded building or new library facility is important to have. 

Ultimately, Coon said, “be that tireless advocate. Don’t shy away from things you believe are important.” 

Scarpati added it is important too to build relationships with local business leaders and school systems, and to continue to be a presence throughout the community. 

“Being visible is important,” Scarpati said. “Our library has done a phenomenal job of that.”


Developers look to Colchester as apartment market for commuters to New London

Don Stacom

One of Greater Hartford’s most prominent development teams is considering a project that would bring 168 new apartments to Colchester on a vacant industrial property near the town center.

The plan is still in preliminary stages, but the town’s economic development council recently endorsed it for municipal tax abatements after concluding it would add value to Colchester.

The Jasko Zelman LLC partnership’s plan would create three 24-apartment buildings and three 36-apartment buildings, all served by a new loop road that would connect to Norwich Avenue just east of Mill Street.

Avner Krohn’s Jasko Development and Brian Zelman’s Zelman Real Estate are currently building 111 apartments in Bloomfield and are near construction on 470 apartments on the old Showcase Cinemas site in East Hartford.

They are also building 48 luxury apartments on Farmington Avenue in West Hartford.

“Colchester would be a riskier project for us than a Bloomfield or a West Hartford, where there’s already been product established recently that can justify getting the rents and building more units,” Zelman said.

“But in Colchester there’s been a void for a very long time. And this would provide an opportunity for folks who are looking to get away from being homeowners — empty-nesters or retirees,” Zelman said.

The plan is for mostly one- and two-bedroom units, with a small mix of studios and three-bedroom apartments, too.

“This will attract a variety of folks. It’s in proximity to the shoreline, where you have demand for housing that cannot be met. New London has huge demand with the sub base, Pfizer, Electric Boat,” Zelman said.

Colchester is just a half-hour drive from New London, and even less to Norwich, he noted, making it attractive to young professionals working there.

The 16-acre tract they’d build on is owned by S&S Worldwide, which sells children’s games, toys and educational products. S&S is among Colchester’s top taxpayers and employers, and its large Mill Street headquarters is alongside the potential apartment site at 239 Norwich Ave.

Zelman and Krohn said they plan traditional New England architecture for the complex’s three-story buildings, and envision a walkable community linked to businesses in the center of town.

The developers are seeing a 10-year tax phase-in, with a full exemption in the first three years followed by a steadily diminishing abatement across the next seven. Once the full tax is billed in year 11, the developers calculate Colchester would get $850,000 annually based on current assessments and the current tax rate.

“This deal is predicated on us getting the abatement we applied for,” said Zelman, who said the project is still feasible despite rising interest rates, inflation and continuing supply chain problems in the construction industry.

“We started working on this in the spring, and we knew if things continued to change for the worse the project would still be viable with the abatement,” he said.

Partner Avner Krohn has landed significant tax abatements in New Britain, Bloomfield and East Hartford.

He and Zelman have said repeatedly that bringing large-scale, modern housing projects requires municipalities to forgo part of their revenue in early years.

Typically, the alternative is to lose development to neighboring towns while receiving little or no revenue on vacant land, they contend. The vacant Colchester property, for instance, generates less than $15,000 a year in taxes. By the fourth year after construction, Zelman said, the apartment complex would begin paying more than 10 times that, followed by steady increases in later years.

Developers also argue that building desirable housing brings more prospective customers to local businesses, and generally helps build a town’s future.

Colchester’s economic development commission unanimously recommended the town approve the project for its C-TIP tax abatement program. But selectmen haven’t yet approved necessary modifications to the C-TIP rules; if they do, the commission expects to hold another vote of approval.

Ultimately, the selectmen will decide whether to put the tax abatement request to a town meeting. If that passes, the developers would then seek zoning approvals before starting construction.

While it’s too soon for the developers to discuss specific rent forecasts, their plan is to lease 90% of the apartments at market rate and 10% at the state’s definition of “affordable.”

That 10% would count toward Colchester’s bank of affordable housing; the state government is pressing all communities to maintain at least 10% of their housing as affordable. Currently, Colchester’s affordable housing rate is 8.7%.

“Since 2002, Colchester has lost a number of affordable housing units,” according to the town’s affordable housing plan. “Colchester had over 11.7% of their housing stock as protected affordable housing units in 2002. Due to the increase in the overall number of market-rate units and a loss of affordable units, the overall percentage has decreased in the past 20 years.”