January 27, 2025

CT Construction Digest Monday January 27, 2025

No Easy Fix For Three Stamford Bridges

 Angela Carella

STAMFORD – Three small bridges in the city are proving to be big headaches.

All are coming to critical junctures at the same time.

City officials have been discussing the 125-foot West Main Street bridge, built in 1888 and listed on the National Register of Historic Places, for a quarter century – most intensely in the last half-dozen years. 

The bridge is so deteriorated that it has been closed even to foot traffic. The city engineer said last week that the historic bridge “is in a state of failure.” A temporary bridge has been installed alongside it for the many West Side pedestrians who need to cross Mill River to get downtown. 

The other two bridges are caught in a construction conundrum in North Stamford. Work on the 32-foot Cedar Heights Road bridge over Rippowam River must be finished before work can begin on the nearby 25-foot Wire Mill Road bridge. Both cannot be closed at the same time because each road serves as a detour route for the other.

But the Cedar Heights project ran into snags, and completion is significantly delayed. That’s a problem for the Wire Mill project because, if it doesn’t start on time, it won’t finish on time. That would jeopardize the federal funds that will pay for replacing the Wire Mill bridge.

Members of the Board of Representatives’ Operations Committee discussed the three projects last week.

‘This bridge is toast’

They began with the iconic West Main Street bridge, which was failing long before the state Department of Transportation closed it to car traffic 23 years ago for safety reasons. 

After decades of neglect, funding gained and lost, political clashes, and debate about whether to reopen the bridge to car traffic, last week it appeared, again, on the Board of Representatives agenda.

There was a common refrain.

“It’s time we reach a conclusion,” city Rep. David Watkins told the committee. “There has been impassioned talk before, but it’s clear – this bridge is toast.”

City Rep. Annie Summerville, a board member since 1977, said the West Main Street bridge has been a subject of debate for most of those years. She remembers when it was called “the purple bridge” for the leftover paint a city crew slapped on it to slow the rusting, Summerville said.

“It’s time, Board of Representatives,” she told her colleagues. “Let’s take a shot at it. I pray we will make the right decision.” 

City Rep. Jeff Stella of the West Side district has been at the center of the bridge debate during his eight years on the board.

“I’m tired of us dragging our feet. We need to make a decision, like, yesterday,” Stella said. “We had funding before and we lost it simply because of our inability to move forward. It’s going to collapse if we don’t do something.”

A rare, if rickety, gem

The double-span, wrought-iron lenticular truss bridge was built by a Connecticut company, Berlin Iron, that was known nationwide for the design. The Stamford bridge is one of only eight left in Connecticut, and one of the last historic structures in the downtown.

Representatives have said they want to preserve history. Many are concerned that the economy and people of the West Side, a lower-income neighborhood, are hurt by the loss of vehicular traffic over the bridge. 

But the original structure is so deteriorated that the city installed a temporary prefabricated bridge, which opened a year ago, so West Siders could continue to walk to the downtown.

The questions for the board now are what they have been – should the historic bridge be rebuilt? If so, should it handle foot traffic only, or also vehicles? Should the bridge be removed and the iron arches salvaged and incorporated into the temporary bridge or some other structure in Mill River Park? What will it cost and where will the funding be found?

City Engineer Lou Casolo reminded board members that they have a detailed report from a firm hired by his office. The report lays out four options “and the pluses and minuses behind each” one, Casolo said.

“We can always want more, but when does it end?” he said. 

It’s up to the board “to determine how to move forward,” Casolo told city representatives. “I recommend that the board work with each other to reach consensus and do that through a resolution.” 

City Rep. Nina Sherwood, the board’s Democratic majority leader, asked that a resolution be drafted and added to the Operations Committee’s February agenda. Representatives agreed.

“Every time this item is on the agenda I think … ‘Is anything ever going to change?’” Sherwood said. “Let’s do something about it … I hope we will have a resolution next month.”

A bridge too low

The committee then discussed the Cedar Heights Road bridge replacement project, which began in April 2023 and was supposed to be completed by the end of that year. 

The contractor ran into problems with the weather, diverting the river, and moving utility lines that run above and below the bridge, according to information from the city. The completion date was moved to May 2024 and then June 2024 before it was discovered that the rebuilt bridge was too low. The contractor, Tony Vitti of A. Vitti Excavators, said it was a surveyor’s error. 

Vitti now is working through the winter to raise the bridge to the proper height, Casolo told city representatives.

“The contractor is maintaining tented enclosures that are heated,” Casolo said. “They are fully cooperating with the city to fix it and pay for it.”

Tony Vitti said the Cedar Heights bridge will be open by May 15, the day the Wire Mill bridge must close so work can begin there.

“We’re ahead of schedule,” Vitti told the committee.

“Opening the Cedar Heights bridge has to coincide with closing the Wire Mill bridge or there will be a lot of trouble,” Casolo said. 

Wire Mill and Cedar Heights roads are main arteries in woodsy North Stamford, the city’s most rural neighborhood. Both roads cannot be closed at the same time, Casolo said.

“There are not many options there,” he said.

Dependent deadlines

The federal government will cover 80 percent of the $1.9 million cost to replace the Wire Mill Road bridge. But the project must be completed by the end of this year. Otherwise, government officials can pull back some of the funding or cut it altogether.

Work on the Wire Mill Road bridge must begin by May 15 because the project is expected to take 244 days, which brings it to the end of the year, Casolo said.

“It’s tight, and this is construction, so anything can happen,” Casolo said. “But we think the plan we’re on now is the one that will get us there.”

If things go wrong, a possible contingency plan is for Vitti to work around the clock once spring arrives, Casolo said. 

“It’s something you typically see on I-95, not on a city street,” he said.

According to the city’s website, the state Department of Transportation rated the 1957 Wire Mill Road bridge in “poor” condition. It will be rebuilt to withstand forces that would be brought on by a 100-year flood.


Developer's plan to build 112 unit housing development in West Hartford set for public hearing

Michael Walsh

WEST HARTFORD — Plans to build 112 units of housing at the site of a former health and rehabilitation center will be the subject of a Town Council public hearing on Tuesday.

In December, Vessel Technologies filed plans with West Hartford outlining their desire to build the housing development, which would offer 30% of its residences as affordable housing.

It's the latest housing development proposal to come West Hartford's way, which has so far been amenable to making zoning changes to allow for multifamily housing to be built across town, including facilitating the recent groundbreaking of a synagogue that will be converted into affordable housing. Other communities have been less agreeable to doing so, leading to thousands of homes being denied across the state in 2024.

Vessel is seeking a similar zoning change at 29 Highland St., which formerly was Hughes Health and Rehabilitation until it closed in 2023. The developers would need the Town Council to rezone the property from single family to multifamily housing. The application is being filed under the state's 8-30g application guidelines.

In December, Vessel's executive vice president, Josh Levy, told CT Insider that they felt that the site, which is surrounded by other multifamily housing developments, would be perfect for one of their unique build outs, which uses prefabricated building model and parts, shortening construction time.

"One of things we always find really compelling is when there is a property that is underutilized or has sort of fallen into disrepair and it can have a second life," Levy said at the time. "Single-family homes always have second, third and fourth lives. But a lot of times, commercial buildings end up sort of sitting there and collecting dust because there's not an economic way of restoring them and there isn't a way of continuing the current use. There's nothing that ends up getting done that's positive. We think it's a great opportunity to fit within the community."

Levy said the development's 112 units of housing would be spread between 98 one-bedroom units, six two-bedroom units and eight three-bedroom units. Because of their construction process, Levy said the market rate units would be "attainable" in price compared to other developments in town.

"That's always our goal, to have units that are less expensive than typical class A units," Levy said in December. "We want to offer class A units at a discount. We try to provide a better value for people. That way we can provide better housing for more people in the community who need it."

The public hearing on the proposal is set for Tuesday, Jan. 28 at 6:30 p.m. at the town hall. A Town Council vote on the development could potentially following at the group's meeting later that night.


Shelton developer adds housing to hotel, restaurants plan on Bridgeport Avenue

Brian Gioiele

SHELTON — A proposed development with a hotel, restaurants and retail at the corner of Bridgeport Avenue and Long Hill Cross Road now includes housing. 

Crown Point Associates — owned by Jim Botti, Jr. and his brothers Travis and Trevor Botti — presented the updated plans to the Planning and Zoning Commission Wednesday during a public hearing on the application for a Planned Development District for the 18-acre lot. The public hearing was continued to a future date. 

The site is comprised of the 48 Long Hill Cross Road parcel — on which now sits a house — and the abutting 15 acres of vacant land. 

The revised plans include two structures, each with four townhouses, with access off Long Hill Cross Road. It calls for only five structures on the main portion of the property, down one from the original plan. 

“The townhouses were the result of removing the far south pad and addressing the issue of what would go on the upper level of the property,” said Dominick Thomas, who represents the developer. “Hawks Ridge liked it because it was a residential use, provided a buffer and included a substantial conservation easement.” 

The new plans resulted from discussions between the developer and representatives of Hawks Ridge, a nearby housing development off Long Hill Cross Road, where homeowners voiced concerns about the impacts of the development. 

Thomas said another key is the developers making the construction entrance from neighboring Crown Point Center. 

Attorney Brian McCann, representing the Hawks Ridge Association, told the commission that the plans presented at the public hearing were a result of extensive talks between the developer and the homeowners. 

The plans show that Woodspring Suites, a 123-room hotel, will anchor the site, which will also feature Texas Roadhouse and the DQ, which would have a drive thru. In all, the project calls for 640 parking spaces with three access points off Bridgeport Avenue.  

Woodspring Suites has dozens of hotels in 40 states and the District of Columbia. There is one other one in Connecticut, in Newington.  

Botti’s Crown Point Associates owns the neighboring Crown Point Center which has six buildings and 60,000 square feet of space total off Bridgeport Avenue. Tenants include Wendy’s, Dunkin', Common Grounds, The UPS Store, a Subway sandwich shop, a T-Mobile store, a nail salon and a pizza restaurant. 

Botti was also the developer behind many other Bridgeport Avenue projects, such as the King Point shopping plaza and a restaurant and bank complex at 828 Bridgeport Ave., as well as founder of nearby Fountain Square, which is now under new ownership. 


United Rentals to Acquire H&E Equipment Services Inc.


United Rentals Inc.
 and H&E Equipment Services Inc. d/b/a H&E Rentals announced their entry into a definitive agreement under which United Rentals will acquire H&E for $92 per share in cash, reflecting a total enterprise value of approximately $4.8 billion, including approximately $1.4 billion of net debt.

Founded in 1961, H&E provides its customers with a comprehensive mix of high-quality general rental fleet including aerial work platforms, earthmoving equipment, material handling equipment, and other general and specialty lines of equipment.

With approximately 2,900 employees and $2.9 billion of rental fleet at original cost, the company serves a diverse mix of customers across both construction and industrial markets through its network of approximately 160 branches in over 30 U.S. states.

On a trailing 12-month basis through Sept. 30, 2024, H&E generated $696 million of adjusted EBITDA on total revenues of $1,518 million, translating to an adjusted EBITDA margin of approximately 45.8 percent.

Strong Strategic Rationale

The transaction is consistent with United Rentals' "grow the core" strategy, and legacy H&E customers will benefit from one-stop access to United Rentals' specialty rental offerings across Fluid Solutions, Matting Solutions, Onsite Services, Portable Storage & Modular Space, Power & HVAC, Tool Solutions and Trench Safety.

H&E's fleet, experienced employees and customer service footprint of branches across over 30 strategic U.S. states are complementary with United Rentals' existing network. Importantly, the combination will increase capacity for United Rentals in key U.S. geographies.

The combination will expand United Rentals' rental fleet by almost 64,000 units with an original cost of over $2.9 billion and an average age of under 41 months, as well as roughly $230 million of non-rental fleet.

United Rentals and H&E share many cultural attributes, including a strong focus on safety, a customer-first business philosophy and best practices for talent development and retention. Critically, H&E employees will bring a wealth of experience to United Rentals, and will have greater opportunities for career development within the larger combined organization.

Strong Financial Rationale

The purchase price of approximately $4.8 billion represents a multiple of 6.9x adjusted EBITDA for the trailing 12 months ended Sept. 30, 2024, or 5.8x adjusted EBITDA including $130 million of targeted cost synergies and the net present value of tax attributes estimated at approximately $54 million.

The combination is expected to generate approximately $130 million of annualized cost synergies within 24 months of closing, primarily in the areas of corporate overhead and operations. Additionally, United Rentals expects to realize procurement savings of approximately 5 percent as compared to historical H&E pricing.

United Rentals expects to realize approximately $120 million of annual revenue cross-sell synergies by year three, as legacy H&E customers take advantage of United Rentals' specialty rental offerings.

The acquisition is expected to be accretive to United Rentals' adjusted earnings per share and free cash flow generation in its first year post-close.

Return on invested capital (ROIC) is expected to reach the company's cost of capital by the end of year three on a run-rate basis, with compelling IRR and NPV across multiple macro scenarios.

The transaction is projected to result in a pro forma net leverage ratio at closing of approximately 2.3x, well within the company's target range of 1.5-2.5x. Upon closing, the company intends to reduce its leverage with a goal of reaching net-debt to EBITDA of approximately 2.0x within 12 months after acquisition close. Accordingly, the company has paused its share repurchase plan in anticipation of driving towards this goal.

The integration of H&E into United Rentals' operations presents opportunities to improve efficiency, productivity and new business development with the adoption of United Rentals' operational excellence, including its technology offerings.

The transaction is not conditioned on the availability of financing. United Rentals has obtained bridge commitments to ensure its ability to close the transaction as soon as possible, with the expectation that it will use a combination of newly issued debt and/or borrowings and existing capacity under its ABL facility to fund the transaction and related expenses at close.

Notably, the transaction will not impact the company's current dividend program.

Matthew Flannery, chief executive officer of United Rentals, said, "In H&E we're acquiring a well-run operation that's primed to benefit from our technology, operations and broad value proposition. Most importantly, we're gaining a great team that shares our intense focus on safety and customer service.

"We'll be working side-by-side throughout the integration to capitalize on best-in-class expertise from both sides. We will use our well-honed integration playbook as we prepare the acquired branches to take full advantage of our systems and operational capabilities, and gain from our employee and customer-centric culture.

"I look forward to welcoming our new team members upon the closing of the acquisition.

"This purchase of H&E supports our strategy to deploy capital to grow the core business and drive shareholder value. This acquisition allows us to better serve our customers with expanded capacity in key markets while also providing the opportunity to further drive revenue through our proven cross-selling strategy. Not only does the agreement satisfy the rigorous strategic, financial and cultural standards we set for acquisitions, but it also drives attractive returns for our shareholders."

Bradley W. Barber, chief executive officer of H&E, said, "I'm extremely proud of what we've built at H&E over the last 60 years and am confident that our combination with United Rentals will take the business to new heights going forward."

John M. Engquist, executive chairman of H&E, added, "I couldn't be more pleased with this win-win outcome for both organizations, our customers and our shareholders. Importantly, I want to thank our employees for driving the results that made this transaction possible. I am confident that we've found an excellent landing spot for them and I am excited for the new opportunities they will have as part of United Rentals."

Transaction Details

The boards of directors of United Rentals and H&E unanimously approved the transaction, which is subject to customary closing conditions, including a minimum tender of at least a majority of then-outstanding H&E common shares and the expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976. United Rentals intends to commence a tender offer by Jan. 28, 2025 to acquire all of the outstanding shares of H&E common stock for $92 per share in cash.

Following completion of the tender offer, United Rentals will acquire all remaining shares not tendered in the offer through a second-step merger at the same price as in the tender offer. The transaction is expected to close in the first quarter of 2025. The company plans to update its 2025 financial outlook to reflect the combined operations following the completion of the transaction.

The merger agreement includes a 35-day "go-shop" period which runs through Feb. 17, 2025, during which H&E — with the assistance of BofA Securities, its exclusive financial advisor — will actively solicit, evaluate and potentially enter into negotiations with, and provide due diligence access to, parties that submit alternative proposals.

H&E will have the right to terminate the merger agreement to accept a superior proposal subject to the conditions and procedures specified in the merger agreement, which H&E will file with a Current Report on Form 8-K. There can be no assurance that this 35-day "go shop" will result in a superior proposal, and H&E does not intend to disclose developments with respect to the solicitation process unless and until its board of directors makes a determination requiring further disclosure.


Despite Trump’s orders, DBE not dead yet

Joe Bousquin

Programs that carve out participation goals for traditionally underrepresented workers on federal construction contracts may be under fire, but they’re not dead yet. 

That was the take from an attorney who focuses on these kinds of government initiatives after President Donald Trump issued several executive orders this week to eliminate diversity, equity and inclusion efforts in the federal government and revoked a ban on discrimination in federal contracting. 

Chris Slottee, an attorney at Schwabe in Anchorage, Alaska, who specializes in federal contracting, said because the programs were created by Congress, it will take congressional action to eliminate them. 

“The executive orders certainly indicate a certain hostility to disadvantaged business programs, and the agencies will take their lead from the President,” Slottee said in an email. “But, the programs have not been, and cannot be, as they have been enacted by Congress, ended by executive order.” 

A slew of orders

Slottee’s comments came after Trump on Tuesday rescinded an executive order issued by President Lyndon Johnson in 1965 during the Civil Rights Movement to ban discrimination in federal contracts. 

That move followed several other executive orders signed Monday aimed at eliminating the DEI priorities of the federal government set by former President Joe Biden. On Tuesday, Trump extended that focus to include private businesses, directing agencies to create plans to “encourage the private sector to end illegal discrimination and preferences, including DEI.”

On Wednesday, the White House issued a memo saying that Trump’s action “protects the civil rights of all Americans and expands individual opportunity by terminating radical DEI preferencing in federal contracting and directing federal agencies to relentlessly combat private sector discrimination.” 

The Small Business Administration’s 8a program and the Department of Transportation’s Disadvantaged Business Enterprise program set aspirational goals for women and other traditionally underrepresented groups to receive portions of government construction contracts. 

Those programs have faced legal challenges since the Supreme Court banned affirmative action in university admission practices in 2023. While the challenges put the programs under fire, they also prompted changes that could give them stronger legal footing. 

Bottom of Form

For example, the SBA’s 8a program, and to some degree, DOT’s DBE program, no longer presume individuals are disadvantaged based on their sex or race, Slottee said. By eliminating race and sex as a basis for automatic participation, the programs could be shielded from Trump’s orders. 

“Accordingly, the current small business contracting programs for disadvantaged businesses no longer involve race as a factor, and therefore may not be directly impacted,” Slottee said. 

Diminished support

Although the changes may give the targeted programs cover, in general, Slottee said they will likely be weakened under the new administration. 

“We can potentially see second order impacts on those programs, based on changing leadership at the SBA and the DOT, with a potential change in focus or lessening of support for these programs,” Slottee said. 

There could be other impacts for contractors that work on federally funded projects from Trump’s actions this week as well, Slottee said.

“Presidents have historically used their ability to issue executive orders to attach strings to federal contracts, be it the obligation to have an affirmative action plan for employment, to mandated sick leave for Service Contract Act employees,” Slottee said. “President Trump’s executive orders may have the result of doing away with some of those regulatory requirements, thereby lessening the administrative burden on government contractors.”