January 30, 2024

CT Construction Digest Tuesday January 30, 2024

CT files lawsuit to force utility to clean up long-polluted power plant in middle of river

ED STANNARD

The hulking English Station power plant has sat silent for decades in the middle of the Mill River, contaminated with PCBs, no longer providing power for United Illuminating.

On Monday, Attorney General William Tong held a press conference in New Haven to announce a lawsuit accusing UI of failing to live up to its agreements to clean up the site. United Illuminating later said there were “multiple inaccuracies” shared at the press briefing but did not say what they were.

UI and its then owner had agreed in 2015 to spend $30 million to clean up the polluted power plant, which they said then would take three years. Tong on Monday said UI, now owned by Avangrid, has failed to honor any of its agreements and has only removed one building on Ball Island.

DEEP Commissioner Katie Dykes stands with Connecticut State Attorney General William Tong, State Sen. Martin M. Looney and New Haven Mayor Justin Elicker as she answers a question from the media in front of the English Station Power Plant on Ball Island in New Haven on Monday, Jan. 29, 2024. (Aaron Flaum/Hartford Courant)

The lawsuit seeks a permanent injunction requiring United Illuminating to take “whatever action is necessary” to finally clean up English Station. The company has been under a partial consent order since 2016. The complaint also seeks a $25,000-per-day penalty for each of six violations of the consent order.

“It’s been 30 years since English Station closed,” Tong said. “And we’ve been waiting 30 years for United Illuminating, but for the owners and providers of English Station to remediate this site. The site is full of contamination, PCBs that have been outlawed.”

He said the buildings themselves are dangerous, have been vandalized and unauthorized people have been seen on the property. The plant operated as a coal- and oil-fired power station from 1929 until 1992.

Connecticut State Attorney General William Tong, stands with State Sen. Martin M. Looney, New Haven Mayor Justin Elicker and DEEP Commissioner Katie Dykes as he talks to the media in front of the English Station Power Plant on Ball Island in New Haven on Monday, Jan. 29, 2024. (Aaron Flaum/Hartford Courant)

“United Illuminating and its parent company, Avangrid, have a present legal obligation to do everything they can to remediate the site to make it safe,” Tong said. 

“In 2016, when Avangrid acquired United Illuminating, we at the state level had a lot of questions about that merger,” he said. “And as a condition of that merger, they agreed to take care of it. They agreed to remediate the site and to take all steps necessary, basically, to do whatever it takes to make this place safe, and they haven’t done that. They’ve been dragging their feet.”

At the time of Avangrid’s purchase, the state successfully urged the Public Utilities Regulatory Authority to fine the company $2 million a year for failing to remediate English Station. UI appealed PURA’s decision to state Superior Court.

Tong said the 2015 $30 million agreement is not a cap but an amount at which UI should come to the state to discuss what to do next.

‘They have an obligation to do everything necessary to remediate this location and they just have failed to do that,” he said. “Just so we’re clear. There’s a consent order that requires United Illuminating to take all steps necessary. And if the cost of that compliance exceeds $30 million, we can have a conversation about it, but it doesn’t cap their obligation to do everything required to make this site safe for everybody.”

Tong, speaking for himself and for Katie Dykes, commissioner of the Department of Energy and Environmental Protection, said, “We are at wit’s end with UI, right? We’ve been at the table over and over and over again, giving them every opportunity to do the right thing. And they have utterly failed to do that.”

New Haven Mayor Justin Elicker talks to the media in front of the English Station Power Plant on Ball Island in New Haven on Monday, Jan. 29, 2024. (Aaron Flaum/Hartford Courant)

Dykes said, “Regretfully, those discussions have not brought us any closer to UI accepting their responsibility … and so unfortunately, we are now taking these legal steps to seek enforcement of those obligations. UI is obligated to complete this, no matter the cost.”

Dykes said UI has spent less than $20 million on cleanup, though Tong said UI has not been forthcoming on how much it actually has spent.

“Meanwhile, DEEP has spent thousands of hours of staff time urging UI to fulfill its cleanup obligations,” Dykes said. “The legal action that’s announced today and the declaratory ruling proceeding I initiated in my department on Jan. 25, represent the department’s continued commitment to using all of our authorities to ensure that UI satisfies its obligations.”

“There is unbelievable frustration with UI about their unwillingness to move on this site,” said Mayor Justin Elicker. “I have engaged many times with their leadership (with) our team over probably about three years now. And frankly, we’re optimistic that our conversations with them are going in the right direction.

“But, unfortunately, they have made it clear that they are not good partners, and not interested in finding a solution to cleaning up this site and following through on their commitment and legal obligation to clean up the site,” he said.

Elicker said the site could be made into a park or other use for residents of the Fair Haven neighborhood. 

“It’s offensive that there hasn’t been movement on this site, and it is a slap in the face to residents of the city that UI is not moving forward in cleaning up what is a dangerous and polluted site,” he said. 

Sarah Wall Fliotsos, a UI spokeswoman, issued a statement saying, “We are reviewing the multiple inaccuracies made during today’s press conference regarding English Station and will respond in due course.” 

Senate President Pro Tem Martin Looney, D-New Haven, said he was present when the consent decree was announced.

The lack of action since then, he said, “is just an example, I think, of cynicism and bad faith, and no wonder people begin to lose confidence in major corporations and utilities and other powerful entities in society.

“The city of New Haven, just like Hartford and Bridgeport, have very few large sites available for development, relatively small, densely packed cities, and a site of this size has  enormous potential if it were properly cleaned up, properly prepared for all to use,” Looney said.


Occum Industrial Center gets go-ahead from Commission on the City Plan: what that means

Matt Grahn

Norwich Community Development Corporation (NCDC) President Kevin Brown said plans to develop a second business park are now more stable.

“Every time we’ve had a conversation, we had to caveat ‘we’re not through this subdivision approval yet’,” he said. “Now, some of the uncertainty (has gone away).”

The Commission on the City Plan met Tuesday, and decided on a 3-2 vote that the subdivision plan NCDC wanted approved for the Occum Industrial Center can go ahead.

This was a continuation from the meeting on Dec. 19, where the public hearing was closed, but the board did not yet have a decision. Since then, the board members were able to look at information presented, but could not discuss the subdivision further with anyone outside of the board.

Neighbors opposed

People who would be living near the business park have been largely opposed, with nature, noise, and traffic being among many of their concerns.

Frederick Browning, of Preserving Norwich Neighborhoods, said the community group will have to reconvene and figure out what to do next, though the group is still appealing overall changes to the city plan.  Browning said he would consider seeing if the CCP decision could be appealed, after research.

“Regardless of the overall approval, it does not mean they have solved all their water issues and development issues on this parcel of land,’ he said.

Brown looks forward to increasing marketing efforts for the new business park, now that he has certainty when talking to developers, the state and the federal government, he said.

“Now we can effectively market parcels,” Brown said.

NCDC addresses neighborhood concerns

Throughout the process to develop these business park plans, NCDC has addressed needs brought up by the community, including setbacks and maximum building heights, even thought it is not a regulatory requirement. The lot that was closest to one of the neighbors was also redesigned, and there is 7.5% open space in the plan, more than legally required 5%, Brown said.

Since two of the commissioners voted against the business park subdivision, Brown said he wants to hear more from them on their concerns.

One of the commissioners was particularly concerned about the open space, including an area on Scotland Road near the beaver dam, Browning said.

During the Dec. 22 meeting, Browning had brought a report from Trinkaus Engineering, which was critical of the subdivision. Brown argued that the report veered off into topics related to future site plans, which would return to the Commission anyway, Brown said.

“Nobody was trying to do short work or incomplete work,” he said. “Further work will be done before any site plan will be approved in the future.”

Brown also anticipates there will be sustained communication between NCDC and the residents near the 384 acres where the new business park will be, he said.

Next steps

“I am fully prepared to engage again with the neighbors to hear what their concerns are going forward, as long as its acknowledged that the development as we submitted it met the standards,” Brown said.

NCDC is working on a federal RAISE (Rebuilding American Infrastructure with Sustainability and Equity) grant application for building the on and off ramp infrastructure for the new business park. While this grant was denied before, now having the subdivision plan and $11 million in state funds in place can make for a more compelling case, Brown said.

After this, NCDC is seeking the first interested developer, and getting the road built, Brown said.


New roundabout ‘in the works’ for Woodbury intersection

STEVE BIGHAM

WOODBURY — The state Department of Transportation is moving forward with a plan to create a roundabout at the intersection of Route 6 and Route 61, which has been the scene of numerous traffic accidents over the years.

Mark Nielsen, assistant director of the Naugatuck Valley Council of Governments, confirmed the news Thursday, saying the state was ready to move forward with the initiative.

“It’s in the works. It’s being planned and they are likely to go forward to design pretty soon,” Nielsen said during a meeting of the Woodbury Route 6 corridor study committee.

First Selectman Barbara K. Perkinson welcomed the news, saying the intersection and the town as a whole will benefit greatly from a roundabout, also known as a rotary or traffic circle, which is a type of circular intersection or junction in which road traffic is permitted to flow in one direction around a central island, and priority is typically given to traffic already in the junction.

The intersection, on the outskirts of town, not far from the Watertown line, was the scene of a 2018 accident that took the life of Daniel Logue, owner of nearby Logue Farm, who, while operating a tractor and pulling a corn planter, was hit by an oncoming car as he attempted to cross Route 6 from Quassepaug Road onto Route 61.

In past years, state officials have stated that, other than extra traffic enforcement for speed and the cutting back of a few trees to enhance visibility, there was not a lot that could be done.

DOT spokesman Kevin Nursick said in 2021 that the area does not generate enough traffic to warrant a light, and the number of accidents there was relatively low.

However, DOT transportation engineer Obesebea Aye-Addo did acknowledge that past field reviews by the state found that the intersection sight distances looking left and right from Quassapaug Road were approximately 410 feet and 450 feet, which is below the DOT’s recommended distance of 555 feet, based on the 85th percentile speeds on Route 6 in this vicinity.

Many residents have said a traffic light should be installed as the once sleepy stretch between Woodbury and Watertown has been built up a great deal since the intersection was first engineered.

But DOT officials say, based on professional engineering standards, the area simply does not necessitate a light. A roundabout appears to be the answer.


Fairfield Developers May Reject $3M State Grant Over Costly Conditions on Housing

Sophia Muce

FAIRFIELD — Town officials and developers of a proposed 245-apartment, mixed-use project on a contaminated lot said they may reject a $3 million remediation grant from the state, due to stringent conditions that could boost project costs by $25 million.

Since the Bullard Machine Tool Company factory was demolished in 2014, the 4.9-acre lot beside Fairfield Metro Train Station has sat untouched. Developers have long kept away from 81 Black Rock Turnpike, as any new construction would require a costly environmental cleanup of the contaminated soil below the site.

Looking to transform the vacant lot into a new, five-story apartment building, Post Road Residential — a local property development company — worked with town officials to secure a $3 million grant from the State Department of Economic Community Development in June to clean up the low-level PCB contamination, which originated from aged underground storage tanks used to heat the former factory.

But at a Jan. 23 Town Plan and Zoning Commission meeting, Post Road Residential partner Tom Montelli said the company may reject the grant altogether.

“[What] we’re trying to figure out is how or why it makes sense to take a $3 million grant, to then add $25 million of hard costs,” Montelli said.

According to Montelli, the Brownfield Remediation and Development Municipal Grant came with three conditions that developers are unwilling to meet: increased wage rates, affordable housing requirements and state control over the property.

State-mandated wages

Rather than creating their own hourly rates, private developers who accept the state grant must pay construction workers increased wages set by the state Department of Labor. Hazardous material workers made $24.62 per hour in the first quarter of 2023, but the grant would require Post Road Residential to pay the same workers $36.50 per hour, a 39 percent increase.

On Monday, Fairfield’s Department of Community and Economic Development Director Mark Barnhart told CT Examiner that the developers knew they would have to pay the increased wages to remove the contamination, and were prepared to do so. But he said the developers were unaware that the prevailing wage requirements would apply to the entire $125 million project, including the planning and construction of the building, parking and landscaping.

​​Not too many developers would choose to pay a 25-30 percent premium on the cost of labor to secure a $3 million grant, he said.

Similar to those addressing the contamination, workers hired by Post Road Residential would also earn significant pay bumps if the company accepts the grant. A general laborer’s rate would jump from $24.64 per hour to $33.50, and a roofer’s pay would increase from $24.66 to $43.

As currently proposed, the project includes the construction of 237,465 square feet of apartments, 6,025 square feet of shared office space and 313 parking spaces. At the meeting, Montelli said the state rates would likely increase the Post Road Residential’s cost by about $20 million. 

“In taking that $3 million, you have a new business partner and your project costs went up $20 million. So if I had to explain that to investors and lenders, I might have a tough time,” he said.

Department of Economic Community Development Spokesperson Jim Watson said on Monday that the wages are required by state law, not the department.

Watson added that the department also does not determine whether the prevailing wage laws apply to specific projects. Rather, he said, applicability depends on a wide variety of factors, like the total amount awarded and whether the project is private or public.

Limits on affordability, property uses

Along with the wage standards, Montelli said accepting the grant requires applicants to follow state-mandated affordable housing regulations.

Under state statute 8-30g, municipalities encourage developers to build state-designated affordable housing for which rent is capped at specific income levels. During his presentation on Tuesday, Montelli said 30 of the 245 apartments would be restricted to households earning 80 percent or less of the area median income — about $55,000 for one person, $63,000 for a family of two, and $71,000 for a family of three.

But to receive the grant funds, Post Road Residential may need to increase its number of affordable apartments from the current 12 percent, or lower its income requirements.

According to the original grant announcement, the state’s affordable housing policy requires that developers set aside either 20 percent of apartments for households making 80 percent of the area median income — $117,400 — or 10 percent for households earning 50 percent of the area median income.

Watson said the department attaches affordability requirements to remediation projects to keep in line with state housing goals.

“Because these are state dollars, DECD includes affordability requirements to try and encourage and increase the supply of much-needed affordable housing units in the state,” he said.

While the department typically completes the funding process within three to four months of sending the award letter, Watson said, staff occasionally work with project teams to negotiate a “reasonable plan.” He said municipalities and developers typically do not decline the grant after negotiations.

Montelli told commissioners that the affordable housing requirement is one of the key reasons why — more than seven months after the state offered the funds — Post Road Residential and the town have yet to decide whether to accept the grant. 

“The state can be flexible, and that’s also one of the reasons why we’ve been talking about this for so long,” he said.

A third condition delaying the company’s decision involves signing off on state control.

As outlined in the grant announcement, the state department requires the project team to enter into a “Negative Pledge” contract, meaning Post Road Residential cannot sell, lease or transfer the property without approval from the department commissioner for the first 10 years of the contract.

The state also limits the uses of the property for the first 10 years, restricting developers solely to the purposes they detailed in their original applications. According to a document submitted to the Town Plan and Zoning Commission, the property will be used for housing, co-working space and to enhance connections to transit.

If the company were to accept the grant, Montelli said it would be giving up key power over the property.

“The state has a seat at the business table for major business decisions,” Montelli said of the contracts.

According to Barnhart, the town and developers haven’t yet declined the grant, but that they are “moving in that direction.” 

Montelli told commission members that the developers intend to move forward with the project with or without the state funding, adding that the contamination would be remediated in accordance with state guidelines.

At the end of the Tuesday meeting, members closed the public hearing for the 81 Black Rock Turnpike proposal; the commission plans to make a decision on the application at an upcoming meeting. Post Road Realty is awaiting commission approval before purchasing the property.