Lawmakers send $7.5B bipartisan bond package to Lamont’s desk
Keith M.
Phaneuf and Ginny
Monk
The General Assembly approved a $7.5 billion two-year bond
package late Wednesday that invests nearly $5 billion in transportation,
housing, capital projects at public colleges and universities and local school
construction.
The Democratic-controlled legislature endorsed the financing
in overwhelming bipartisan fashion, with the House of Representatives voting
145-4 and the Senate backing the measure 35-1.
The
plan also orders new financing to help local school districts improve
air quality, support renovations to the Connecticut Convention and XL centers
in Hartford, and to cover added costs involved with dredging New London port to
facilitate a wind-to-energy project.
And the new bond package also stands out because of some
previously approved bonding that was removed.
Legislators and Gov. Ned Lamont agreed to scrap plans to
borrow $50 million annually in each of the new two years for the ‘Baby Bonds’
program — but the initiative itself will go forward, tapping resources other
than state financing.
“The bonding projects in this, in many ways, are the
lifeline of the state,” said Senate President Pro Tem Martin M. Looney, D-New
Haven, who noted the state financing not only supports core programs in state
government but also assists municipalities, nonprofit social service agencies
and many local civic programs across the state.
Bottom of Form
The state’s bonding practices have been a source of friction
in recent years between the parties — and between Lamont and the legislature.
But Rep. Holly Cheeseman of East Lyme, ranking House Republican on the Finance,
Revenue and Bonding Committee, said a few things were different this year.
Not only did Democrats work closely with Republicans to
develop a bipartisan plan, but bipartisan efforts to build the state’s
rainy day fund and make billions in supplemental payments against pension debt
have left many feeling better, she said.
“Having the state in the kind of fiscal condition it is,”
Cheeseman added, “I think creates a different mindset.”
Rebuilding Connecticut’s aging highways, bridges and rail
lines again consumes a major portion of the state’s credit card. Lawmakers
authorized nearly $1.6 billion in transportation bonding for the
fiscal year that begins July 1 and another $1.5 billion in 2024-25.
And while capital projects consume the bulk of those funds,
the package also includes $40 million over the next two fiscal years for
various highway improvements to discourage wrong-way driving
Legislators set aside $250 million in 2024-25 for the
state’s municipal school construction program and added $150 million in each of
the next two fiscal years to help communities to improve air quality in
schools.
over the coming biennium for the University of Connecticut
and more than $310 million for the regional state universities and community
colleges.
The UConn bonding includes $30 million for a new nursing
program facility and $5 million to develop space in the XL Center in Hartford
for instruction to complement the university’s nearby Hartford branch campus.
Another $15 million in the bond package would support
renovations to the XL Center, while $34 million over two years would finance
upgrades to the Connecticut Convention Center and to Rentschler Field in East
Hartford.
Lawmakers endorse Lamont plan to expand housing, encourage
ownership
Housing initiatives also dominated the bond package,
securing almost $1 billion in financing.
Most of those earmarks, about $810 million over two years,
were tied to the governor’s sweeping plan to expand affordable housing,
encourage home ownership and boost new residential construction
The largest chunk of the money — $400 million — is for the
state’s Housing
Trust Fund over the next two years. The fund offers gap financing and
loans to create more housing for people with low to moderate incomes as well as
preserve and rehabilitate existing housing. The package includes $200 million
for a flexible housing program.
Other bonding for housing includes $50 million for the
Housing Receivership Fund so the state can take control of and repair large
apartment complexes with serious code violations. It also adds $150 million to
the Time
to Own program, which encourages homeownership.
The bonding package has $125 million over two years for
retrofitting multifamily housing in environmental justice communities, a
measure that was initially included in the Senate Democrats’ housing priority bill. Such communities
are low-income neighborhoods, often composed predominantly of people of color,
who face a significant number of environmental hazards.
‘Baby Bonds’ still moving forward — but without the
borrowing
The previously authorized financing for the Baby Bonds
program was removed as part of a compromise brokered by state Treasurer Erick
Russell and endorsed by Lamont and legislative leaders.
The deal, reached in mid-May, still has Connecticut
investing $600 million over the next 12 years in the economic futures of
children in poverty.
Connecticut will deposit $3,200 into trust for every child
born after July 1 and covered by HUSKY, the state’s Medicaid program.
Those deposits — expected to be made on behalf of 15,000 or
more children annually — would grow over the course of their youth and early
adulthood. Recipients still living in Connecticut could tap these resources
between the ages of 18 and 30, to buy a home, pay for college or invest in a
business.
But rather than borrowing $50 million annually between 2023
and 2034 to support these investments, Connecticut instead will tap a special
$393 million reserve fund it set up four years ago as part of a complicated
plan to refinance the pension fund for municipal teachers.
The state’s short-term fiscal position has changed
drastically since 2019 —with a record-setting $3.3 billion in the rainy day
fund, another $2.95 billions surplus projected for the fiscal year that ends
June 30, and $5.8 billion in supplemental payments made into all pension funds.
Given that track record, Russell said, the $393 million
reserve — set up to guarantee pension contributions would be made on time — can
be replaced with a special insurance policy expected to cost about $12 million.
That leaves about $381 million the state then could invest.
The projected earnings over the next 12 years, coupled with the principal,
would be more than enough to cover $600 million in investments for poor
children over the next 12 years, according to the treasurer.
Feds to build $335 million courthouse in Hartford
HARTFORD — The United States General Services Administration
has received congressional approval to spend $335 million on a new federal
courthouse in Hartford, officials say.
According
to the GSA, the $334,970,000 approved will cover the site acquisition,
design and construction of a new 281,000-square-foot building. It said the
courthouse will have 11 courtrooms, 18 chambers and offices for court-related
agencies along with 66 inside parking spaces.
"The project will meet the 10-year space needs of the
courts and court-related agencies, and will accommodate expansion to meet the
anticipated 30-year needs of the courts," it said. "In 2020, the
Federal Judiciary identified a new courthouse in Hartford as a top priority
across the country."
According to a news release from the GSA, the site
acquisition for the project should take place in 2024, with construction
scheduled to start two years later. It said the courthouse would start
operations in 2029.
The GSA said it has identified three potential sites for the
courthouse, one on Woodland Street, one on Allyn Street and one on Hudson
Street.
On Tuesday, the GSA hosted a public meeting where residents
had an opportunity to hear about the project and learn how they can provide
input on the issues that are important to the community.
"This input is a valuable step in the process and will
be used by GSA to determine the scope and content of the EIS," the release
said.
Affordable housing pitched for Hamden
Meghan Friedmann
HAMDEN — The firm behind the construction of an affordable
housing complex on Mather Street is looking to bring more low-cost units to
Hamden, this time on a five-acre State Street property.
New York-based Regan Development Corp. last month pitched a
$26 million project that would involve construction of 64 units at 2980 State
St. and the addition of infrastructure improvements aimed at making the roadway
more pedestrian-friendly.
Thirty of the rentals would be one-bedroom units, 32 would
be two-bedroom units and two would be three-bedroom units, Ken Regan, vice
president of Regan Development, said in an email.
Fifteen percent of all units would serve people earning 30
percent or less of the area median income, he said. Of those, some would be
reserved for renters with cognitive or intellectual disabilities, Regan wrote,
while a couple would be reserved for individuals who were recently experiencing
homelessness.
The complex's remaining units would serve households making
60 percent of the area median income or less, according to Regan.
For fiscal year 2023, Hamden's AMI for a family was
$111,900, according to the Department of Housing & Urban Development's
income limit database. HUD determined that income for a three-person household
making 50 percent of the AMI was $51,650, the database shows.
The firm is working with the town to seek state funding that
would help offset the cost of the project.
To that end, the Legislative Council's Economic Development
Committee on Monday approved a resolution for the town to apply for $8 million
from the state Community Investment Fund, according to a meeting recording and
agenda on the town website.
If granted, some of those funds would help make up a funding
gap in construction costs, said town Economic Development Director Erik
Johnson, while the rest would "support the installation of new
infrastructure along State Street" like crosswalks and sidewalks, making
the area more pedestrian-friendly.
The resolution still needs the approval of the full
Legislative Council.
"The potential development on State Street just
represents another example of how the town of Hamden is trying to work
proactively to not only increase its inventory, but to also create more
inclusive and affordable spaces for people to live," Johnson said.
Regan Development owns a second property in town at 415
Mather St. The complex was completed about two years ago and has units
dedicated to housing veterans, Larry Regan, the company's president, told the
Legislative Council during a May 1 meeting, according to a recording available
online.
The firm focuses on creating green and energy-efficient
housing, he said, and units typically cost between $1,000 and $1,500 below
market rate.
"We use a mix of State/Federal sources including tax
credits, plus substantial private investment and Developer equity to fund our
developments," Ken Regan said in the company's statement.
The State Street property currently is occupied by a
single-family home and is located near the Skiff Streat intersection.
At 6:30 p.m. June 8, A Church for the City will host a
community input meeting about the proposal at 2105 State St.
Day Hill Logistics Center set to break ground in Windsor
Developers and town officials are set to break ground next
week on a new logistics center in Windsor’s busy Day Hill Road corridor.
Salvatore Campofranco and Luzern Associates, based in Boston
and Greenwich, are building The Day Hill Logistics Center, a
170,300-square-foot manufacturing and distribution center at 425 Day Hill Road,
near Bradley International Airport and Interstate 91.
Developers anticipate an early 2024 opening.
The facility is being built “on spec,” with no tenant
secured. Office space can be built to suit, according to the application.
The new building has room for up to four tenants, but could
be occupied by anywhere from one to four operations, members of the development
team said.
Day Hill Road LLC and Campofranco bought the two properties
at 415 and 425 Day Hill Road from the Real Group II LLC in April 2022 for $1.2
million. The project cost was not disclosed.
The sites contained one vacant and one mostly vacant
building, both former professional centers, which were demolished to clear the
20-acre site for development.
Windsor Town Planner Eric Barz said the new build will allow
for flexible uses, either light logistics or light manufacturing, and not a
larger “e-tailer.”
Members of the development team could not be reached for
comment, and Barz said he does not know of any prospective tenants yet for the
site.
The corridor, Barz said, has been attracting some “low-velocity”
activity tenants recently, such as Safelite auto glass, BDL Logistics,
Blueprint, as well as a pharmaceutical and medical equipment company.
Windsor town officials want to keep some professional/office
presence on Day Hill Road but turn toward mid-sized manufacturing when looking
to fill some empty spaces in the corridor, he said.
The property will have parking for 126 cars and 28 trucks
and hook-ups for electric vehicle charging.
In May 2022, Campofranco, with Luzern Windsor LLC and Luzern
Associates LLC, bought a 62,080-square-foot industrial property at 770-790
Marshall Phelps Road, just off Day Hill, which was anchored by pharmacy retail
giant Walgreens.
Hartford’s XL Center closer to major renovation than in last decade. Here’s why.
HARTFORD — Hartford’s aging XL Center arena is now
closer to a major renovation than it has been in a decade, after state
lawmakers backed a plan that would allow at least $20 million in private
investment for the $107 million project.
The legislation, approved
as part of the $51.1 billion state budget for the next two fiscal years,
also includes another $15 million in public funding for a total of $80 million.
The state approved $65 million in funds three years ago that would come from
the proceeds of the sale of state bonds.
The combination of public and private funds would finance a
makeover aimed at the long-term competitive survival of downtown’s 48-year-old
sports and entertainment venue. The renovation’s cost and scope has been hotly
debated since the early 2010s.
Gov. Ned Lamont is
expected to sign the legislation, passed by both the House and Senate this
week. Lamont has supported a significant renovation to the XL Center but only
with private investment to ease the burden on state taxpayers who would pick up
the largest portion of the tab.
proposing a rule intended to ensure that the automated
formulas used to price housing are
There are still significant hurdles to clear before
renovations — concentrated on adding amenities to the lower half of the arena
and ramping up technology — would begin, probably later this year.
The quasi-public Capital
Region Development Authority, which oversees the 16,000-seat arena’s
operations, must still negotiate the precise amount of private investment from
Los Angeles-based Oak View Group.
OVG handles day-to-day operations at the XL Center and has expressed strong
interest in investing for more than year. A long-term operating agreement also
must be hammered out.
At the same time, CRDA is determining this summer if the
actual cost is close to the $107 million estimate cost of the makeover. If the
price tag is significantly out of line and can’t be downsized in an acceptable
way to the state or OVG, it may mean the venue is consigned to a “band-aid”
approach to repairs as has been the case in recent years, without a major
one-time investment from either the state or OVG, CRDA has said.
The legislation also requires approval from the city, which
technically owns the arena but is leased and operated by the state through
CRDA.
Michael W. Freimuth, CRDA’s executive director, said
Wednesday it appears a major renovation, long sought by CRDA and Hartford Mayor
Luke Bronin, is now within reach.
“After 9-10 years of trying, I might have caught the
proverbial bumper,” Freimuth said, in a text. CRDA has “been trying to get
agreements and funding commitments, and its been a lot of tries, meetings etc.
Now, it’s time to perform.”
Freimuth said there are still more, critical pieces that
need to fall into place, including designing the renovations, also now
underway.
“The work is going to be intense and time compressed,”
Freimuth said.
If all components fall into place, it will be essential to
begin the renovations by the end of year to meet future revenue projections
expected by OVG, Freimuth said. The makeover is expected to stretch out over
two years to work around the hockey and basketball seasons.
The legislation calls for OVG to absorb any annual net
losses at the arena, but it would keep the first $4 million in net profits.
Above $4 million, net profits would be split between OVG and CRDA.
Attracting more concerts
The arena has been a money-loser most years, typically $2
million, but higher during the pandemic, closer to $3-$4 million.
The renovations are aimed at making the XL Center more
competitive with new arenas for events; help the venue turn a profit and carry
it through another two decades. Plans would target the addition of premium
seating that command higher ticket prices and new amenities, plus upgrades to
the concourse and building systems.
The premium seating — include “loge” seating off the
concourse, club space under the stands and “bunker suites” at event level —
plus upgraded concessions are all intended to increase the arena’s revenue.
Technology also would be a priority, partly to better
accommodate heavy social media posting and texting during events.
OVG has a depth of experience in repositioning sports and
entertainment venues. The organization manages 300 sports and entertainment
venues globally and redevelops others.
OVG’s investment is tied strongly to attracting more
concerts to the XL Center, events that are large money makers for modern
arenas. But to draw more big-name concert bookings, renovations also will have
to include relocation of the stage to increase the number of seats that have a
unobstructed view of performers; build the overhead structure needed for modern
light shows; and retrofit a loading dock at back of the arena to move shows in
and out more quickly.
If OVG agrees to invest, the organization would
significantly expand its operating of the arena, including negotiating
contracts with major tenants such as the University of Connecticut and paying
for majority of repairs to the building, excluding major big-ticket
improvements.
The renovation now under consideration has been dramatically
downsized from an initial $250 million, top-to-bottom makeover, which failed to
gain traction for funding in the legislature.
East Hartford to raze more Silver Lane Plaza buildings, displacing 11 businesses
Joseph Villanova
EAST HARTFORD — Town officials plan to raze all of Silver
Lane Plaza, after approving the demolition of two more buildings Tuesday night.
The site consists of three buildings, the largest of
which was approved for demolition in May.
Mayor Mike Walsh said demolition of the largest building to
be finished by Labor Day, but the timeline on the two smaller structures is
less clear.
Town Council Vice Chairman Don Bell said he felt renovating the
two structures would have been a hard sell at roughly $8.8 million, and
clearing the property would open up more potential for development.
"It provides a developer the full option to do what
they want, as long as it's in line with the town's vision," Bell said.
Bell said he would like to see a mixed-use development
designed to sustain the neighborhood's economy into the future, but that he is
open to considering any and all developer proposals.
The desire for residential and mixed-use in the Silver Lane
corridor was a recurring theme throughout town discussions of negotiating
a sale on the plaza and, later, acquisition by eminent domain.
East Hartford acquired the plaza by eminent domain on March
1, using $4.5 million from the State Bond Commission. The entire project,
including demolition and relocation costs, is budgeted at $10 million.
When the plaza was acquired, the large building was occupied
by Bare Bones Boxing and Je Mart. The smaller two were home to 11 tenants
including restaurants, dentist offices, and a laundromat.
Walsh said nine tenants remained in the buildings when
the Town Council approved demolition, seven of which chose not to sign new
leases with the town earlier this year. Each remaining business will be served
a 60- or 90-day notice and invited to discuss relocation with the town, but
Walsh said relocation may not be done by September.
"These are nine different and unique businesses, each
with different demands and different time frames to find a suitable
location to relocate," Walsh said.
Je Mart and Bare Bones Boxing expect to vacate the larger
building by the end of June and July, respectively. Alongside the additional
demolition, the Town Council approved waiving the rent payments for both
businesses this month with the expectation that both will relocate soon.
Walsh said the town looks forward to working with each
business and providing financial compensation where possible, but does not
expect all of the tenants will be amicable.
"Unfortunately, that plaza has been long blighted, and
on behalf of the community we have to work with them to move that plaza
forward," Walsh said.
Bell said the Town Council and administration's primary
focus is on taking care of the plaza's current tenants as much as possible.
"We always reiterate the commitment to working with
them and making sure they land in a good spot, hopefully in East
Hartford," Bell said.
Walsh said the existing tenants pay rents far below market
rate, and a town presentation listed some leases as low as $0.59 per square
foot.
"That's just not sustainable moving forward,"
Walsh said.