March 23, 2023

CT Construction Digest Thursday March 23, 2023


Carrie Czerwinski

Mystic — Demolition of the former Latitude 41 restaurant at Mystic Seaport Museum began this week to make way for a boutique hotel on the property.

Heavy equipment was in full motion on Tuesday tearing down the rear of the building, leaving the front of the building mostly untouched except for the missing windows, which had all been removed in preparation for the demolition.

The razing of Latitude 41 and the Shipyard Tavern, which closed in July of 2022 after 12 years in business, marks the beginning of the estimated $12 million Delmar Hotel project, initially approved in early 2020, but delayed by the COVID-19 pandemic.

In 2009, Coastal Gourmet Inc. signed a contract to manage all events and dining at the museum, including the restaurant previously known as the Seamen’s Inne. After a refurbishment, it reopened that restaurant the following year.

A permit application for the Latitude 41 demolition, being conducted by Stamford Wrecking Company of Trumbull, was approved March 16, and the initial phase of the project is estimated to be completed within a month.

Stonington Deputy Chief of Police Todd Olson said traffic should not be impacted beyond trucks hauling away material from the demolition.

The project calls for a 30-room hotel and a 160-seat restaurant, as well as a guest cottage. Plans also call for a pool and outdoor patio with seating overlooking the river and an existing dock.

There will be eight valet parking spots along a circle in the front of the hotel which will be accessed via a shared driveway from a parking lot that would serve the future Mystic River Boathouse Park.

The rest of the parking will be located across Route 27 in the large museum lot.

The Stonington Planning and Zoning Commission initially approved Greenwich Hospitality Group and Clearview Investment Management’s plans for the project in 2020.

The founder of the Greenwich Hospitality Group, Charles Mallory, is a former member of the Seaport's board of trustees and developer of the Stonington Commons project in Stonington Borough.

Construction is anticipated to take one year.


Quasi-Public Agencies Oppose Bill to Expand State Watchdog’s Oversight

Brendan Crowley

HARTFORD — Legislation to expand a state contracting watchdog’s authority over quasi-public agencies is putting the group at odds again with agencies who say that increased oversight will take away the flexibility they need.

Established in 2007 as a check on state contracting in the wake of then-Gov. John Rowland’s resignation, the State Contracting Standards Board had been perennially on the budget chopping block until last year when lawmakers finally restored funding for the board to hire five staff to boost their investigations into procurement policies of state agencies.

Larry Fox, chair of the contracting standards board, said he doesn’t want to be in the position of reviewing every request for proposals, but wants to be able to look at the procedures the quasi-publics use, and make sure they’re promoting fair competition in their bidding process.

The quasi-agencies – which are designed to provide government services with the flexibility of a private business – say they already are already under state oversight, including from state auditors, and that putting them under the purview of the board would slow them down when they need leeway to set up new programs or compete with private businesses. 

Erin Choquette, CEO of the CT Paid Leave Authority — a quasi-public tasked with managing the state’s paid family leave program — told lawmakers on the Government Administrations and Elections Committee on Monday that the quasi-publics were created to be able to be nimble in response to problems and opportunities.

She said the paid leave authority needs that flexibility to manage its responsibilities by contracting services to meet the needs of workers in Connecticut, while also balancing budget constraints and legislative mandates. 

The contracting board, she said, has “extraordinary powers” to terminate contracts and restrict agencies from procuring new contracts, which could jeopardize the authority’s mission. 

Choquette said the authority would still be setting up the paid family leave program if these rules were already in place.

“[The contracting board] can’t have a fiduciary duty to 16 other [quasi-public] agencies, and has no responsibility for ensuring the authority is able to fulfill the mission for which the legislature created us,” she said.

Fox said the bill was a way to build more honesty and transparency into the state’s procurements. He said Connecticut doesn’t have a “culture of competitive bidding.”

“We need to have a robust system to protect the public interest,” Fox said. “It’s not going to slow down their ability to be nimble. Nimble was never about doing crappy procurement.”

So far, the board has only been given oversight of the Connecticut Port Authority, a move that exposed tension between the board and the administration of Gov. Ned Lamont, whose budget secretary said during its review of the Port Authority  in 2021 that it didn’t need to exist. 

The port authority has been one of the higher profile quasi-publics since it’s been tasked with redeveloping the New London State Pier for offshore wind — a project that’s price tag stands at $255.5 million and counting as construction is set to wrap up this year. 

And it’s drawn scrutiny for its procurements — especially for paying a legally questionable $523,000 success fee to a contractor in 2018, and for selecting the State Pier project manager Kiewit as a subcontractor for at least $87 million of work on the project. 

A separate bill would make the contracting board’s authority to review the Port Authority permanent, but some lawmakers want to go further and extend the board’s scrutiny to more quasi-public agencies. The bill would also require quasi-public contracts to set measurable results and inform bidders of their rights to appeal a decision.

Chris Davis, government relations manager for the quasi-public Connecticut Lottery Corporation, said the bill would take away flexibility that the organization that manages the state lottery and sports betting needs to compete with private companies like DraftKings and FanDuel.

“The bill calls for us to request a waiver from the [board] for any purchases under $10,000,” Davis said. “As you can imagine, we make a lot of those, and [we] meet once a month. So this would basically make it so we can’t respond quickly to anything going on in the marketplace.”

Fox told CT Examiner that there are provisions in the bill that still need to be ironed out. He said the board doesn’t have the staff to be tasked with granting agencies waivers for competitive bidding, and that it would be a conflict for the board to both grant those waivers and be the watchdog overseeing if those waivers are granted correctly.

But he said the general thrust of the bill — giving the board oversight of how quasi-public agencies conduct their procurement — is important.

“It’s not a punishment,” Fox told lawmakers. “It’s good practice that we take a look at how are they doing procurement, because the state spends so much money in these agencies.”

A similar bill passed the State Senate last year, including sections aimed at safeguarding the board from what have become routine budget cuts throughout its history.

But the bill didn’t come up for a vote in the House after objections from state agencies, including the Department of Children and Family Services, which said it has particular contracting requirements that could be disrupted if someone without the right background wrote new standards for how the department contracts out human services. 

Fox said the board isn’t like other regulatory boards in state government that have to approve actions beforehand — like the State Properties Review Board that has to approve property transactions. 

The contracting board instead reviews contracting procedures so that they’re in place when a department or agency opens a procurement, Fox said. They would need a staff of 100 people to pre-approve every procurement from every agency, he said.

“It’s not our lane to decide if a project is a good idea or a bad idea,” Fox said. “It’s our lane to make sure that if the governing body of an agency wants to go forward with a project, that in fact they use transparent, competitive procurement policies as they implement the project. But we don’t have to pre-approve any project.”

State Sen. Mae Flexer, D-Killingly, co-chair of the Government Administration and Elections Committee and a vocal proponent of the bill last session, said she was frustrated that “behind-the-scenes misinformation” killed the bill despite broad support from lawmakers.

“It’s been very frustrating to see this strong opposition — that is often quiet, unlike the people who’ve come here today — to sunlight,” Flexer said. “It’s one of the most frustrating experiences I’ve had in the time I’ve been privileged to be a legislator.”

Fox said he expects a night and day difference between the work of the board as a group of volunteers with one full-time staff, and now a fully staffed unit with an investigator and procurement officer who will be able to provide training to state departments.

“Basically, we had the ability to respond to things that we read about in the newspaper when the local press covered stuff, or we would have the ability to respond to a complaint that we received from the public,” Fox said. “But when you go back and look at the legislation that was passed by the legislature, years ago, it really intended for this board with a staff to proactively build a very robust, clear, transparent procurement system.”


Fate of Exit 21 off I-84 goes to debate

LIVI STANFORD

WATERBURY – The state Department of Transportation will hold a public information meeting tonight regarding the planned removal of the Exit 21 off-ramp on Interstate 84 eastbound.

The meeting is scheduled for 6 to 8 p.m. at Maloney Magnet School, 233 South Elm St.

The project is part of the New Mix program, which will address the long-term needs of the city’s Interstate 84-Route 8 interchange.

“This was identified as one of the early projects that can help alleviate traffic issues,” said Shannon Burnham, strategic communications manager for DOT. “It improves safety when people are getting on and off that exit as there is not a whole lot of space to merge on and off.”

The removal of Exit 21 east is expected to begin in 2025, she noted.

The project will remove the off-ramp completely, and extend the auxiliary lane to allow additional merge and diverge distance for drivers entering and exiting I-84 eastbound near Exit 22, Burnham said.

Mayor Neil M. O’Leary said Exit 21 on I-84 eastbound is a huge public safety hazard.

“There are people who have been maimed, severely injured and killed,” he said. “It is a very unsafe design.”

Exit 21 eastbound on I-84 has been closed since March 2021 as part of the Mixmaster rehabilitation. The number of crashes in the area of I-84 eastbound is 30% higher than the statewide average for all roads, according to a public meeting on the project June 16, 2022.

However, DOT noted the crash data was collected before the completion of the I-84 widening project.

The Mixmaster will approach the end of its serviceable life in 25 years, according to the DOT.

DOT spokesman Josh Morgan has said one of the long-term goals of the New Mix project is to reduce the number of crashes and alleviate some of the traffic congestion that builds up during rush hour.

Burnham said the DOT also is examining how the interchange is built out to accommodate pedestrian and bicycle traffic.

“Public feedback will help inform the remainder of the design process,” Burnham said.

In addition to the public meeting, an open public comment period continues through April 10.

Comments can be submitted online at bit.ly/NewMixInput; left in a voicemail at 203-805-8018; emailed to TheNewMixWaterbury@gmail.com and mailed to Mix Project CEPA Comments, Attn: Jonathan Dean, Project Manager, 2800 Berlin Turnpike, PO Box 317546, Newington, CT 06131-7546.



Plans approved for apartments, retail in Southington over neighbors’ objections

Jesse Buchanan

SOUTHINGTON — Planners, developers and area residents continued to debate the traffic impact of plans to build 255 apartments, along with retail space and a clubhouse on West Street, but the Planning & Zoning Commission ultimately approved the development by a unanimous vote late Tuesday night.

Neighbors are concerned the increase in housing will result in unbearable traffic, while developers of the proposed complex said their improvements to the West Street and Curtiss Street intersection will keep things functioning well.

Texas-based developer, Anthony Properties, is proposing 255 apartments, 17,000 square feet of retail space and a clubhouse on 41 acres along West Street. It would be accessed via Curtiss Street. Town leaders estimated the project will cost about $100 million.

A traffic study presented by the developers said the project would add about 225 cars to the road during peak hours each day. Area residents questioned those numbers, saying it’d likely be more.

“For me, 225 is a good number for them, but not for us,” said Stan Slipski, a Melcon Drive resident. He expected the project to add more than 300 cars during peak hours.

Anthony Properties officials including development vice president Brian Shiu, attended Tuesday’s meeting. They defended the traffic study, saying it was conducted following industry standards.

The study concluded nearly all the residents of the proposed development would turn onto West Street for their travels. Residents questioned the impact of traffic to other roads and voiced concerns about problems elsewhere.

Francis Pickering, a Panthorn Trail resident, said traffic problems would be increased on West Street with the approval of the 255 apartments.

“The (developer’s) traffic study is focused on the intersection adjacent to the property but isn't looking at the second order impacts,” he said. “This is going to deteriorate access to businesses and residences in this area (of West Street).”

Other criticisms of the project were more broad. Rick Hutton, a Spring Hill Road resident, said the town has been spending money buying development rights to prevent more houses from being built. He questioned why the town would now approve 255 apartments off West Street.

“Was this just a waste of our money? Are those efforts negated by this one project?” Hutton said.

Planning commissioners told audience members Tuesday that they were bound to follow Southington’s regulations and can’t take into consideration other projects or town decisions.

“We cannot consider anything other than what’s been put in front of us,” said Peter Santago, a commission member. “Legally we can’t take that into consideration.”

In previous meetings Shiu had offered to set aside land on the property for a right-hand turn lane from Curtiss Street to West Street. On Tuesday, he agreed to build that as part of the project rather than wait until it’s needed.

“I hear the concerns of the community and the commission as well about the traffic,” he said.


Two historic buildings in Hartford’s Bushnell South could add 100 more apartments

KENNETH R. GOSSELIN 

Two historic buildings near downtown Hartford‘s Bushnell Park — occupied for decades by state offices, including the Secretary of the State — could be converted into 108 apartments in a $45 million project that would give a significant boost to the Bushnell South redevelopment unfolding in the area.

The state Department of Administrative Services confirmed to The Courant that a partnership of Philadelphia-based Pennrose LLC and The Cloud Co. of Hartford has the properties at 18-20 and 30 Trinity St. under contract for $1.1 million. The state-owned properties first went up for bid in 2021, about a year after state workers moved out of the buildings as part of an office space consolidation. DAS declined further comment Tuesday.

Pennrose and The Cloud Co., headed by businessman Sanford J. Cloud, are partners in the sprawling Village at Park River, a redevelopment of rundown public housing in the city’s North End. But a conversion of the two historic structures, which stand side-by-side near the corner of Elm Street just north of The Bushnell Center for the Performing Arts, would be Pennrose’s first project downtown.

Although Village at Park River is new construction, Pennrose said it often focuses on converting historic structures for housing throughout its broader Northeast market.

“It’s something that’s always been near and dear to our heart so when these properties came up, they were just gorgeous historic buildings that lent themselves so well to residential and in just a fantastic location across from the Capitol and the park,” Charlie Adams, regional vice president at Pennrose, said. “And the fact that the Capital Region Development Authority is doing this whole redevelopment of the Bushnell South area, to be part of that, to help the city rejuvenate that area, it sort of checked all the boxes for us.”

Adams said the plans also include a restaurant on the ground floor of 30 Trinity and the potential for co-working space in one of the buildings. The apartments, mostly studios and one-bedroom rentals, would be mixed-income, with 20% reserved as “affordable” for tenants meeting certain income guidelines, Adams said. Specific monthly rents are still being worked out, Adams said.

The purchase of the structures could be completed later this year, with construction starting in 2024. Once started, the conversion would take 18-24 months to complete, Adams said.

Founded in 1971, Pennrose has completed more than 350 developments and more than 27,000 rental housing units.

Financing for the conversion of the two Hartford buildings is still taking shape. But it is likely to include a low-cost loan from CRDA, the quasi-public state agency that has provided loans and equity investment primarily for mixed-use housing projects. CRDA said Tuesday it has been talking with Pennrose for about six months, and the amount of the loan is still being negotiated.

The financing package also is expected to include a traditional bank mortgage plus state and federal historic tax credits. CRDA also has applied for a grant through the U.S. Department of Commerce that targets economic development. The grant also could help close any funding gaps.

The conversions will be challenging given the age of the buildings, both built in the early years of the last century, plus the amount of space that can’t be reasonably carved up into apartment space. In general, construction projects also are dealing with rising borrowing costs and increases in the costs of building materials.

The Trinity Street buildings long have been considered as part of Bushnell South, anchoring its northwest corner. The buildings have been vacant since state office workers were relocated to the 1931 State Office Building on nearby Capitol Avenue after a $205 million state-taxpayer financed renovation. The renovation included the construction of a 1,007 space garage.

Bushnell South includes wide swaths parking lots to the east of The Bushnell that are envisioned for new apartments, restaurants, shops and other commercial space. The parking lots have a mix of owners, including the state and private investors.

In November, The Michael’s Organization, based in Camden, N.J, was selected by CRDA as the preferred developer of a $130 million, mixed use project on the largest of the state-owned parking lots. The planning for the 3-acre lot is still in the early stages, but preliminary plans calls for 360 rentals, including 20% “affordable,” primarily in two larger buildings over 2,500 square feet of storefront space, likely including performance space tied to the arts.

Michael’s has developed in urban center such as Boston and Philadelphia and across 37 states.

At Bushnell South’s northeast corner, the $67 million rental conversion of 55 Elm St. — the former offices of the state’s Constitutional officer, including Attorney General — is now underway. Plans by Norwalk-based Spinnaker Real Estate Partners call for 160 apartments overlooking Pulaski Circle and Bushnell Park.

Michael W. Freimuth, CRDA’s executive director, said Tuesday the partnership of Pennrose and Cloud would be a potent addition to the area’s development.

“It would be a nice complement,” Freimuth said. “We would have three developers active in Bushnell South if we can get this one done,” Freimuth said. “That’s a lot of energy to put into that area so it’s significant.”

Freimuth said the addition of another developer would strengthen Bushnell South, with further diversity of financing and the apartments and commercial space that is ultimately built.

The structures at 18-20 and 30 Trinity date back to the early days of the last century when Trinity and Elm streets were known as the city’s insurance row where insurance companies had their headquarters.

At 18-20 Trinity, the Orient Insurance Co. erected a Beaux-Arts-style structure with a classical marble facade in 1905. The building once had a circular dome.

The neighboring 30 Trinity St. was constructed a decade later by the Phoenix Insurance Co. in the Georgian Revival-style. Phoenix Insurance was a separate company from the Phoenix Mutual Life Insurance Co., which eventually constructed the “Boat Building” on Constitution Plaza.

According to The Courant’s archives, the Phoenix Insurance building was later acquired by Hartford-based Aetna in 1951. The building was sold to the state in 1962