March 6, 2024

CT Construction Digest Wednesday March 6, 2024

Developer: ‘More practical’ vision for massive East Hartford Founders Plaza redevelopment is still grand

Michael Puffer

Developers planning around 1,000 apartments in a mixed-use redevelopment of East Hartford’s Founders Plaza office park will have up to four years to finish a first-phase building of at least 150 units in return for $6.5 million in state demolition funding.

The state Bond Commission, last June, approved demolition funding for the “Port Eastside” development.

The Port Eastside partnership – which includes several prominent area businessmen – plans to use those funds to demolish the 182,890-square-foot former Bank of America office building at 20 Hartland St., which is also known as 99 Founders Plaza, this year. Port Eastside paid $4 million for the property last summer.

Demolition will clear the site intended for the first mixed-use apartment building, scheduled to begin construction in late 2025, said Christopher Reilly, president of Lexington Partners, the Hartford development group spearheading the Port Eastside project.

The first building would include about 40,000 square feet of retail space, Reilly said. While the draft agreement commits Port Eastside to a minimum of 150 apartments in the first building, the aim is closer to 300, Reilly said.

“We have to be careful now, the capital markets are a little bit crazy,” Reilly told Town Council members Tuesday night. “We don’t want to overcommit. There’s going to be somewhere between that 150 and that 300 that is going to be financeable and is going to make sense.”

The tentative agreement would give Port Eastside up to four years from demolition to finish a building of at least 150 apartments, or money spent on demo will be treated like a loan and not a grant, according to Attorney David M. Panico, who is representing the town. The town would have the option to extend the deadline as well.

“One of the things we didn’t want to happen was for the building to get knocked down and just sit there,” Panico said. “If the property lays fallow for four years, that grant money turns into a loan. … It’s kind of like a little penalty clause if it just sits idle.”
 

Tax abatement in play
Reilly told the Town Council, Port Eastside “controls” about 30 acres of the Founders Plaza office park and intends to build a series of three- to four-story buildings along the riverfront for 900 to 1,000 overall apartment units. Each building would have a similar amount of retail space, which would orient toward the east, away from the river, activating that side of the project.

Reilly acknowledged the development group expects to approach the town for a tax abatement and would seek state assistance for the project in exchange for making a portion of the development available at “workforce housing” rental rates.

Reilly said Lexington has needed tax-fixing agreements to secure financing for projects in other Greater Hartford communities.

“We will be realistic about our ask, but we will ask for as much as we can get,” Reilly told council members. While no estimates were provided Tuesday, Reilly assured the town would see increased tax revenues from the development.

East Hartford Director of Development Eileen Buckheit said reduced permitting fees, use of surplus demo funds, a tax break and state assistance could come into play to close any financing gap for the project. These are commonly needed for development projects in the Greater Hartford area, she said.

“I can promise you it will be a net benefit to the town,” Buckheit said.
Port Eastside is also asking the town to cede a portion of East River Drive so that it can be turned into a park-setting better connecting the development with the Connecticut River. 

Council members questioned the impact on users of Great River Park, which runs along the river nearby. East River Drive is used as overflow parking on nice days when the park is in heavy use. Reilly pledged to detail parking accommodations at a subsequent meeting, stressing Port Eastside’s commitment to ensuring ongoing river access for the public.
 

Reilly said the latest version of the Port Eastside plan abandons early high-rise apartment concepts in favor of three- to four-story buildings much like Lexington Partners has built elsewhere, including the recently completed 292-unit One Park apartment development in West Hartford.

One design element – a 20-foot-tall ground floor – will put apartments and common areas facing west above the level of a flood-barrier dike, allowing those units spectacular views of the river and Hartford, Reilly said. The result would be 90-foot-tall buildings, he said. He said architects are also investigating the feasibility and cost of rooftop amenities, possibly including restaurants or retail.

“You are going to have phenomenal views of Hartford that you don’t get if you live in Hartford, so the opportunity for interesting retail, interesting restaurants here is very exciting,” Reilly said.

The shorter building heights would allow for future “mid-rise” developments beyond the riverfront buildings that could also benefit from river views, Reilly said.

This “more practical” vision is still grand and involves “a lot of money” but allows for maximum value while creating an opening for other developers, Reilly said.

Port Eastside is promising a development packed with amenities, including a dog day care, dog wash station, package facilities with freezers, a pool, games courtyard, quiet courtyard, fitness center, community gathering spaces and, possibly, an infinity pool.

After the first development agreement is in place, Port Eastside and East Hartford will work with the Capital Region Development Authority to bid out demolition work on 99 Founders Plaza, Reilly said. Port Eastside is also working with investors and banks to develop financing, something Reilly expects to take about 18 months. That would allow for construction to start in late 2025, he said.

Port Eastside announced a roughly $841 million plan to transform portions of the 50-year-old office park last year. Reilly put the number at $825 million on Tuesday. That plan has subsequently been refined down in scope, with far less commercial space. Reilly said he is working with East Hartford Mayor Connor Martin to pull it into “more understandable, realistic, chunks.”

The first building will cost somewhere between $110 million and $120 million to develop. Each subsequent 300-unit building would cost about the same. With 900 to 1,000 units possible around the river, the investment in the “first tier” of multifamily buildings would be about $300 million to $400 million, Reilly said.

Reilly said Port Eastside is in “advanced discussions” with a nonprofit that wants to locate in the development area “in a very substantial way.”

That could lead to “a phenomenal building.” The nonprofit building would be flanked by a 300-unit apartment building and another mixed-use apartment building, he said.
“We need that mix of live, work, play, so people don’t feel they are living on an island,” Reilly said.

While posing questions about some potential impacts, such as lost overflow parking by the riverside park, town council members and Mayor Martin expressed enthusiasm for the Port Eastside plan as presented by Reilly Tuesday.

“I think overall this presentation and this agreement represent a continued commitment both by Port Eastside and the town to continue to work together, invest in East Hartford and bring much-needed economic development in this area that hasn’t seen economic development in a number of decades,” Martin said.


Norwich will use agreements with local trade unions to build new schools

Claire Bessette

Norwich ― The City Council late Monday heard from nearly three dozen union trades workers and union leaders before voting 4-3 to require Project Labor Agreements for the city’s $385 million school construction project.

The council’s four Democrats voted in favor and the three Republicans, led by Mayor Peter Nystrom, opposed the resolution.

Project Labor Agreements require contractors to meet prevailing wages and benefits standards even if the companies are not union shops. The agreement requires the contract manager to reach pre-hiring agreements with the Norwich-New London Building Trades Council to provide local skilled trades workers for the projects.

Proponents, including all public speakers, extolled the benefits of PLAs, saying they ensure quality work and that projects are completed on time and on budget.

Republican council members cited contradictory studies saying PLAs increase costs by 5 to 12% and cause delays. Nystrom repeatedly said the PLA plan should have been proposed at the start and included in the school project approved by voters in 2022.

The project calls for four new elementary schools, renovating one middle school and converting an elementary school into central offices and adult education.

During public comment Monday, trade workers, mostly from Norwich, said they often drive hours to job sites across the state. They said the PLA would allow them to work close to home, spend more time with their families and spend their lunch and gas money in Norwich.

“Right now, I’m working out of state,” Norwich resident Angel Rosato told the council. “It would be nice to have work close to home, save on gas. Above that, I’ve been a resident here since I was 10, and I would like to give back to my community.”

Frederick Ladd said he has lived in Norwich for 35 years and has been a member of the International Brotherhood of Electric Workers for 37 years. He said his union trade enabled him to buy a house at age 22, and he and his family have been active in the Norwich community for decades.

“PLAs are not about hiring union contractors or saving money,” Ladd said. “It’s about having an agreement in place to ensure that city residents get jobs, to keep cost overruns in check and to make sure the workers are getting paid prevailing wages.”

Other speakers noted that Nystrom was a longtime union member during his career at UPS. They also recalled that Nystrom supported the plan to enter a PLA if the city obtains a requested $15 million federal transportation grant to build an entrance ramp to the city’s new business park.

The council vote Monday requires the school construction management firm for each school project ― Construction Solutions Group LLC will oversee the first two schools ― to enter into a pre-hiring Project Labor Agreement with the Norwich-New London Building Trades Council.

The agreement calls for the building trades council to “make good faith efforts to achieve a hiring goal of 25% Norwich residents and 30% New London County residents.” The trades council must hold career fairs from 2024 through 2029 to recruit local workers and work with the Connecticut State Building Trades Training Institute to recruit and train workers through apprenticeships.

The agreement does not require all workers to join the trade unions. Union workers must remain in good standing with dues and other provisions. Non-union workers must pay the fee that covers the cost of unions negotiating wages and benefits.

Republican Alderwoman Stacy Gould questioned how the local hiring goals could be guaranteed, and Nystrom said the goals are too low.

Democratic Alderman Mark Bettencourt, chairman of the School Building Committee, rejected Nystrom’s argument that the PLA would jeopardize state reimbursement for the new schools. Bettencourt said PLAs for school projects have been done throughout the state, and the work qualifies for state reimbursement.

Republican Alderman William Nash said if costs rise, given the $385 million referendum cap, it would mean schools slated for work in the later phases could suffer from a shortage of funds.

Even before the PLA discussion, cost concerns are looming. The first new school will be built on hilly, rocky ground in Greeneville while there are extensive wetlands on the next site at the John B. Stanton School.

Bettencourt said the Greeneville site should be the most difficult, and there could be savings at the remaining school construction sites.


Union members, CT mayors advocate for school building project labor agreement: what is it?

Matt Grahn

As Norwich bonded $385 million in a 2022 referendum for building six new school buildings, everyone is concerned about the project staying on budget.

The Norwich City Council voted party line, four Democrats to three Republicans, to approve a Project Labor Agreement for the school building project Monday night.

Both sides are concerned about costs for the expensive school buildings project. The Democrats are convinced a project labor agreement helps keeps projects under budget, while the Republicans aren’t.

The Project Labor Agreement itself emphasizes local employment opportunities with the Norwich-New London Building Trades Council holding career fairs for five years, with a hiring goal of 25% from Norwich and 30% from the New London Council. The council will also assist with local workforce initiatives. Non-union workers can also work on the school project but must be compensated similarly to union employees.

City Council member Stacy Gould (R) questioned if the hiring percentage can be achieved, and Attorney Rick Robinson, senior partner of Pullman and Comley, said the city needs to hold the construction manager’s “feet to the fire,” to ensure the goal is met.

Gould was also concerned with sticking to the budget, and wanted a study to see whether the Project Labor Agreement would save money, she said.

Does a Project Labor Agreement change the bond terms?

Norwich Mayor Peter Nystrom (R) said the architects would have recommended bonding for a higher amount had it been known a Project Labor Agreement would be involved. He was also concerned about how the agreement would impact costs and reimbursements from the state.

“Nobody told the state we’re changing the terms of the bond the voters approved until I called (Tuesday morning),” he said.

City Council President Pro-Tempore Joe DeLucia (D) said he understands the city needs to stay on budget, and is OK with value engineering to keep the entire project on budget.

The new Greenville School will likely be the most expensive due to topographical challenges on the site, but costs for the rest of the schools can be adjusted on the back end, City Council member and School Building Committee Chair Mark Bettencourt (D) said.

Another concern Nystrom mentioned is whether or not the council is following the city charter. The 2022 referendum language did not mention a Project Labor Agreement, so the voters haven't approved a Project Labor Agreement. The city council is also limited to bonding only $800,000 before needing to go to referendum. As far as Nystrom knows, Norwich is the only municipality in the state with this rule, he said.

Unions and mayors voiced support

Workers from multiple local unions and their supporters filled City Council Chambers on Monday night, clearly distinguished with a simple “Yes” sticker on their shirts. Multiple union members shared why they support a Project Labor Agreement.

The various union workers pointed to guaranteed union pay increases and benefits to help support a family, opportunities for high school graduates not going to college, and working closer to home.

Nickolas Stolaronek is a union member who lives in Norwich, but is working on a job in Bristol. A tenth of his pay is spent on gas, he said.

“It’d be nice to see a Project Labor Agreement in Norwich so union members don’t have to drive so far to go to work,” Stolaronek said.

Former Bridgeport Mayor Bill Finch (D) also attended the council meeting to support project labor agreements, calling his $500 million in total project labor agreements the best decision during his time in office, he said.

“I’ve never had a project late, I’ve never had a project over budget, and I’ve never had a worker seriously injured,” Finch said.

Project labor agreements give the city advantages in using union labor, including no strikes, set wages, and dispute resolution in the contract, while protecting both union and non-union workers, Finch said after the meeting.

DeLucia also read a letter of support for project labor agreements from New Britan Mayor Erin Stewart (R). Even though DeLucia showed there is a Republican mayor in the state supportive of project labor agreements, New Britian can hypothetically bond the money it needs to finish a project going over cost, unlike Norwich, Nystrom said.

“They don’t need voter approval,” he said. “We’re required to have it.”

While Finch said project labor agreements aren’t usually a partisan issue, David Jarvis, council representative of the North Atlantic States Regional Council of Carpenters, said after the vote that voting for the project labor agreement protects opportunities for Norwich residents in the future.

“When they look at the drastic increase in the quality of life, they’ll say it's worth it,” he said.

What’s next?

The School Building Committee is waiting on costs related to the schematic design, and the committee will try to find ways to reduce the Greenville School cost. The committee will soon look for an architect for the new Moriarty School, Bettencourt said.


Stamford developer BLT proposes 354-unit residential complex on Long Ridge Road

 Ignacio Laguarda

STAMFORD — About three months after the city rejected the residential conversion of an office park on Long Ridge Road, a new proposal has emerged for the property next door.

Developer Building and Land Technology is proposing to convert a four-story office building on a 25-acre site into a 354-unit residential complex at 800 Long Ridge Road that will include 618 total parking spaces, spread out over existing surface lots and an underground garage. The project also includes about 9,400 square feet of commercial space.

The project is expected to be formally presented to the city's Planning Board next week, which could lead to a public hearing with the city's Zoning Board.

It will likely draw comparisons to the proposed development of 900 Long Ridge Road, which was rejected by the Zoning Board in November of last year.

That project was the first to test Stamford's regulations allowing residential conversions of office parks. It called for the creation of 508 apartments and commercial space to replace two four-story office buildings.

The board voted unanimously against it. Zoning Board Chair David Stein told the Stamford Advocate in December that board members support housing in underused office parks, but felt the proposal wasn't right for the area.

"Our zoning regulations require ‘excellence of overall design,’ " Stein said in December. "The board believed that this project did not meet that requirement due to the proposed size, scale and arrangement of the buildings. It’s too large for this site. This site should have smaller buildings and a more suburban feel.”

It's unclear if members will have similar feelings about the BLT-led development for 800 Long Ridge Road, but some residents have already voiced their displeasure through emails to officials.

"You cannot deny 900 Long Ridge (Road) and then even consider 800 Long Ridge (Road)," wrote resident Paul Arvoy, adding that "Apartment buildings do not belong here."

The current building at 800 Long Ridge Road is a four-story, 300,000-square-foot structure that was built in 1978 and served as the corporate headquarters for the Xerox Corporation from 1996 until 2006.

The entire building is leased to GE Capital’s Energy Financial Services division, which vacated the building at the end of 2023, according to a letter from Lisa L. Feinberg, partner for law firm Carmody Torrance Sandak & Hennessey, representing BLT.

"The property, like many suburban office parks in Stamford constructed in the 1970s, has been underutilized for the past several years," reads Feinberg's letter. "The demand for suburban office space has dwindled as companies opt for more urban locations close to major public transportation hubs."

The proposed development would be spread across two main structures that would have parking underneath. One building will include an outdoor pool. In total, the complex would contain 186 one-bedroom units, 148 two-bedroom units and 20 three-bedroom units.

The below-market-rate requirement is 10 percent, so the developer proposed providing 35 of the units at 50 percent of the area median income. 

According to Feinberg's letter, some potential commercial tenants for the property include a day care center or a medical office.


Wilton begins work to replace 'overcrowded' police station with new 'modern' home for department

Kalleen Rose Ozanic

WILTON — With construction now underway on Wilton’s new police station, Chief Thomas Conlan said the new facility will be a “morale boost” to the department’s 41 officers.

Beyond bolstering the force with the new and improved facilities, Conlan said Tuesday, Feb. 27, the new station will also appeal to new recruits as the town looks to bring on an additional four officers to meet the department’s 45-officer maximum.

Branford-based A. Secondino & Son Inc., Wilton’s contractor for the new building, began working on the project two weeks ago, said Jeff Pardo, facilities manager and assistant director of public works.

“They've cut down trees, and right now we're in the process of installing storm structures,” Pardo said Tuesday, Feb. 27.

The contractor’s work on the "modern" new station started Feb. 14, just shy of four months after the town’s ceremonial groundbreaking on Oct. 26, according to Pardo.

“I can't tell you how excited the officers are to see work starting here,” Conlan said.

The town appointed a study commission for the project in 2016, which determined in 2019 that replacing the station built in 1974 was the best option, rather than renovating it.

“It's obviously well overcrowded,” Pardo said of the current police station. “They needed a bigger building, and you just couldn't renovate this building and keep them in the building at the same time.”

The police department's building was constructed in 1974 to accommodate only 24 male officers. Over the years, accommodating female officers with restrooms and showers has proven difficult, Conlan said.

The new station, designed by Tecton Architects, will be about double the size of its predecessor. The nearly 19,000-square-foot new station is under construction on an 11.17-acre site at 238-240 Danbury Road, near the current station.

At a Planning and Zoning Commission meeting last year, Conlan said he had seen the need for a new station increase over the years since he joined the police department.

“The new building will be almost twice the size of the old one and will bring the department up to current policing and building code standards,” he said. “A new police facility will have a tremendous benefit to the department, as well as the town.” 

The new station will add appropriate female restrooms and showers, a gym for officers to use off-duty, more offices, locker rooms and a dispatch center, Conlan said.

More holding cells will be installed with doors instead of bars to reduce harm that detained individuals can do to themselves, Pardo said.

The new build also budgets the potential for more environmentally friendly practices in the future. 

The new station will also have an adjacent emergency response garage and carport, with electric charging and rooftop solar panels, to secure the Emergency Response Team vehicle and patrol cruisers.

The garage is funded by a $500,000 state grant and matched by $150,838 in town funds.

These updates will appeal to prospective officers and recruits as the police department looks to fill in vacant positions, Conlan said.

“We try to sell ourselves, now, as well,” the police chief said.

Recruits can “see the investment that the town has made in the new police department,” Conlan said.

For the next four weeks, Pardo said contractors will continue to install storm drainage infrastructure. After that, contractors will clear out remaining asphalt and sidewalks in the footprint of the building and begin excavation.

The project will take 14 to 18 months to finish, Pardo said, which slates the new police station for completion at some point in April to October 2025.


Stamford-based United Rentals to acquire construction company for $1.1 billion

Paul Schott

STAMFORD — United Rentals, the world’s largest equipment-rental company, announced this week that it agreed to acquire construction company Yak Access for about $1.1 billion from private equity firm Platinum Equity.

Through the deal, Stamford-based United is set to gain one of the leading companies in the North American matting industry. The products and services of Hattiesburg, Mississippi-based Yak include approximately 600,000 hardwood, softwood and composite mats; temporary and permanent access roads; site evaluation; design and installation of access plans; and mat removal and logistics.

“Our acquisition of Yak further diversifies and differentiates United Rentals’ Specialty business offerings while also driving shareholder returns,” United CEO and President Matt Flannery said in a written statement. “This newly created ‘Matting Solutions’ business will create another adjacency for our company with scale in a large and growing market segment. In addition to its attractive profile across growth, margins and returns, this combination builds upon our Power vertical strategy, where significant investment in generation, transmission and distribution is expected over the next several decades.”

The transaction is expected to be completed in the first quarter of 2024; the first quarter ends on March 31.

“Over the past six years, we worked with the Yak team to transform the business and are proud that it is now a stronger and more resilient company ready for the next chapter,” Platinum Equity Co-President Jacob Kotzubei and Platinum Equity Managing Director Matthew Louie said in a joint statement. “United Rentals is an outstanding partner and a great long-term fit for Yak going forward.”

Yak’s name is inspired by the animal. 

“Like the yak, our products are stable, our services are dependable, and our company is strong,” says an excerpt on Yak’s website. “For those reasons, we believe our name is both memorable and shows the strength and endurance of our team.”

Acquisitions have fueled United’s growth since its founding in 1997. Among other large deals, United acquired Ahern Rentals, for $2 billion in December 2022.
 
United has approximately 1,500 rental locations in North America, including several in Connecticut, while its main offices are in the First Stamford Place complex. The company’s more than 26,000 employees serve a customer base that includes construction and industrial businesses, utilities, municipal governments and homeowners.

For 2023, United’s rentals totaled about $14.3 billion, up 23 percent from 2022. Its profit of about $2.4 billion in 2023 compared with a bottom line of around $2.1 billion in 2022. 

Based on its 2022 revenues, United ranked No. 355 on the 2023 Fortune 500 list of the largest U.S. corporations


Bay Crane Companies Makes Strategic Entry Into Baltimore, Washington, D.C., Area Market

The Bay Crane Companies Inc., one of the 10 largest providers of crane services in the North America, announced the acquisition of two leading crane service companies in the Mid Atlantic region from ML Holdings: United Crane & Rigging and Crane Rental Company Inc.

This acquisition adds to Bay Crane two full-service locations — Baltimore, Md., and Capital Heights, Md. — along with a fleet of 88 cranes and hoists and almost 200 trucks, trailers and other support equipment.

"Both these companies have over 50 years of proud history serving the Mid Atlantic market. We are pleased that they will be joining the Bay Crane Companies and welcome everyone on the team," said Kenneth Bernardo, president and CEO of the Bay Crane Companies.

"The Mid Atlantic market is very strategic to Bay Crane, being located just south of our New Jersey operations. These platform businesses will help to expand Bay Crane as a premier crane service provider in the northeast corridor from New Hampshire to Virginia.

"The team at United Crane and Crane Rental will now have access to one of the largest and most comprehensive crane fleets on the east coast along with all the specialty rigging and trucking equipment. This will uniquely position Bay Crane to substantially increase the scope of services provided to customers in the Mid-Atlantic region."

"We are already seeing immediate benefits from this combination," said Joe Mirabile Jr., regional vice president of the Mid Atlantic region. "We are moving larger crawler cranes and other high-capacity and specialized equipment into the market and are very confident our loyal customers will see a significant benefit from this combination in the years ahead."

"When ML decided to focus its crane business exclusively in the Mid/Southwest markets we knew we needed to find the right buyer for United Crane and Rigging and Crane Rental Company. While we're sad to part ways with all the great people at these companies, we can't think of a better partnership for them than The Bay Crane Companies," said David Matz, president of ML Crane and ML Holdings Company.

"We look forward to the continued success of the expanded Bay Crane and redeploying capital in our core businesses."

For more information, visit www.baycrane.com.


Monroe Tractor Hires Susan Donis as Parts Manager of Connecticut Location

Susan Donis

Monroe Tractor has hired Susan Donis as parts manager of its South Windsor, Conn., location.

Donis brings several years of experience managing the parts department at a local manufacturing company, where she handled hundreds of dealers internationally, nationwide and directly to the consumer.

"I am a people pleaser 'mother hen,' if you will. My goal will always be to assist my service team and our customers as quickly and efficiently as possible. If I don't know the answer, I will find it, or find someone that does," said Donis.

"Susan comes to us with direct experience as a parts manager and possesses the skill to serve her well at Monroe Tractor. Susan is passionate about her department, extremely organized, and interested in doing things right for her customers and coworkers. She's a bright beacon of light to head up our parts team," said Rick Bisesto, branch manager.