CT Construction Digest Friday April 12, 2024
Architect chosen for $335 million Hartford federal courthouse project
HARTFORD — The U.S. General Services Administration awarded a $32.2 million contract for architectural and engineering services for a federal courthouse planned for Hartford, the agency announced Thursday.
In 2020, the Federal Judiciary announced that replacing the courthouse in Hartford was one of its top priorities. In total, the project is estimated to cost $334,970,000 for the site acquisition, design and construction of a new 281,000-square-foot federal courthouse. This phase of funding will contract Los Angeles-based Michael Maltzan Architecture as the lead design architect for the project.
"The selection of the lead designer was completed under GSA Design Excellence policy," said Paul Hughes, a GSA spokesperson. "The procedures deliver exceptional value to our partner agencies and local communities and are a proven method for producing high-quality, sustainable facilities. The policies and procedures inform GSA’s selection of the most qualified architects and integrated design teams for commissions, and they guide GSA project teams’ management of the assessment processes that ensure enduring value in design and construction."
The proposed courthouse will provide 11 courtrooms, 18 judge chambers and offices for court-related agencies, along with 66 secured parking spaces. It is supposed to replace the existing courthouse on Main Street, which was constructed in 1963.
A press release from GSA says the existing courthouse, the Abraham A. Ribicoff Federal Building and Courthouse, "does not have the space, functionality, security, and building systems to meet the current and projected needs of the Court."
In accordance with the National Environmental Policy Act, the GSA is working on an Environmental Impact Statement for the site. According to a 2023 presentation from GSA, the EIS was expected to consider three separate sites in the city of Hartford as possible locations. The presentation proposes locations on Woodland Street, Allyn Street and Hudson Street.
The site on Woodland is a state office building in Asylum Hill, while the site on Allyn Street is a surface parking lot downtown. The final possibility on Hudson Street is also a surface parking lot, coincidentally the same one slated for development in the Bushnell South project.
Hughes said at this point GSA is just analyzing two locations, the one on Woodland and the one on Allyn.
Maltzan will work with Glastonbury-based SLAM Collaborative, which will provide architectural supports. Neither Maltzan nor SLAM responded to requests for comment.
Construction is targeted to start in 2027, with the new court ready for occupancy in 2030, according to Hughes.
New offices approved for Pratt & Whitney campus in East Hartford, but no set date for construction
EAST HARTFORD — The town's Planning and Zoning Commission Wednesday approved a proposal by the Raytheon Technologies Group to build a new, five-story, 313,000-square-foot office building on 16.6 acres of the Pratt & Whitney campus off of Silver Lane.
The new building, according to the applicants, would replace the OBB (office building B) which currently houses the company's design and engineering staff — as would the new building.
The new building would not change staffing levels or increase parking at the site, a Pratt & Whitney spokeswoman said Thursday.
In a statement from the company, the official also said the proposal presented Wednesday did not signal that demolition of the OBB was imminent, and indicated it wasn't even certain that construction would take place.
"We continually assess our Connecticut campus and options to improve on our current footprint to meet the needs of our business. This site plan review in no way signals a commitment to build," the Pratt & Whitney statement said. "Pratt & Whitney and RTX remain committed to Connecticut. Any plans and investments in our East Hartford campus will make Pratt & Whitney more competitive for recruiting and retention, ultimately benefiting Connecticut."
East Hartford Deputy Director of Development Steve Hnatuck said Thursday that no specific timeline was given during Wednesday's presentation to the commission but representatives for RTX said that they expected a 30-month window for construction when the project is launched.
Hnatuck said the commissioners did not have many questions about the proposal, but mostly expressed appreciation that the company is committed to investing in the Pratt & Whitney campus.
East Hartford Director of Development Eileen Buckheit echoed that sentiment in a statement.
"Pratt and Whitney has been a mainstay of the East Hartford business community," she said. "It's a positive thing when building stock is updated."
East Hartford Mayor Connor Martin was not available for comment Thursday.
The Pratt & Whitney campus stands at 260 acres, but the company in recent years sold a 300-acre former airfield on which National Development built two warehouses for Lowe's and Wayfair. The company announced in March that the buildings were approved for occupancy and that hiring would begin soon.
Quarry operation in Gales Ferry back on the table
Lee Howard
Ledyard ― A controversial plan to create a quarry operation at Mount Decatur has been resubmitted by Gales Ferry Intermodal LLC, this time offering some financial incentives to the town while claiming the operation wouldn’t create “any objectionable impacts either from noise or dust.”
The application for a special use permit at the former Dow Chemical plant off Route 12 also claims that local regulations that allow the Planning and Zoning Commission to consider the project’s effects on the character of the immediate neighborhood are superseded by a new state law. That law essentially nullifies such language unless “clear and explicit physical standards for site work and structures” are specified.
Harry B. Heller, the lead attorney for Gales Ferry Intermodal’s parent company Cashman Dredging & Marine Contracting Co. of Quincy, Mass., downplayed the potential for increased truck traffic in the resubmitted application, saying aggregate from the site will be shipped “primarily via barge,” while also playing up the creation of “30 well-paying construction jobs” during the property’s development phase.
Heller also is offering the town 25 cents per cubic yard of material extracted from the site as “payment in lieu of taxes,” though no estimate of how much money that would produce for the town was submitted.
David Harned, a member of the community group Citizens Alliance for Land Use, which opposes the quarry proposal, characterized the payment proposal as inappropriate.
“Money is completely irrelevant when it comes to compliance with regulations,” he said Thursday.
Harned listed a variety of problems with the updated proposal, which he said has not significantly changed from the one that dozens of residents opposed during hearings that started late last year and extended into January.
The issues of silica dust being released into the air, as well as concerns over quality of life, the slope of the regraded property, loss of property value and stormwater runoff were among those he is most concerned about, while others have issues with the significant effects on Mount Decatur where the remnants of a War of 1812 fort still stand, as well as noise and the impact on wildlife habitat.
“There are many regulations that will clearly be violated,” Harned said. “All we need is one that they violate, and they shouldn’t get their permit.”
Town Planner Julie Hodge said the Planning and Zoning Commission would formally accept the application Thursday night but won’t likely schedule a public hearing until June.
She added one issue will be whether this is a quarrying operation, which is not allowed under town regulations, or excavation work, which is permitted. Also, she said, a new proposal for using water to control silica dust could trigger a reconsideration of whether a wetlands permit is required.
As for the 2021 state statute that Heller now claims supersedes the town’s “neighborhood character” consideration, Hodge pointed out that the law was passed to ensure that municipalities weren’t discriminating against affordable housing projects. She was unsure how that would apply to an industrial site.
“He’s stretching that one,” Hodge said.
In addition to receiving the Gales Ferry Intermodal proposal Thursday, the Planning and Zoning Commission agenda included an application by Avery Brooks Homes LLC of Gales Ferry for an 18-lot subdivision on Stoddards Wharf Road. The resubdivision proposal, totaling 6.38 acres in a residential zone, calls for six affordable homes on site, with the rest to be sold at market value.
Principals in the project were listed as Peter C. Gardner of Gales Ferry, Conrad C. Gardner Jr. of East Lyme and Anthony Bonafine of North Windham. The development would involve the creation of a new street called Avery Court. A May public hearing on the application is expected.
Also on the agenda is a proposal from Don Co LLC of Gales Ferry to create a 10-unit mobile home park at 59 Kings Highway near Christy Hill Road. Three of these two-bedroom homes would be deemed affordable, while seven would be sold at market rate. Hodge said mobile home parks are not supported by zoning regulations, so the plans will have to be amended to create individual lots for the residences.
Proposed 1.25 million-square-foot warehouse in Plainfield approved by commission
The proposed Uline warehouse in Plainfield was approved by the Plainfield Planning and Zoning Commission at its meeting Tuesday night.
This project was approved with conditions that Uline needs to handle before beginning construction. The project calls for the construction of a 1.25 million-square-foot commercial warehouse as well as associated parking and drainage on property located at 143-151 Plainfield Pike Road. Uline is a company that distributes shipping, industrial and packaging materials throughout North America.
Tony Ferro, senior construction project manager at Uline, said the warehouse would bring 200 jobs to the area on the day it opens, with about 170 of them being filled locally. He said the facility would provide 400 full-time positions long-term.
“We bring good-paying jobs with full benefits, tuition reimbursement, full medical,” Ferro said at the Plainfield Planning and Zoning Commission meeting on March 12.
Conditions of approval
The applicant must work with the sewer department on finalized design and connection requirements prior to receiving a permit to construct.
Property lines must be modified and recorded in the land records prior to receiving a zoning permit to construct the site.
All engineering review fees are to be paid within 30 days of billing or prior to the filing of the blueprints, whichever comes first.
Blueprints of the project are to be filed with the town clerk prior to receiving the zoning permit to construct.
Approvals from the Office of the State Traffic Administration and the Department of Transportation must be submitted to receive a zoning permit to construct.
Project is to be approved for a timeframe of five years from the date of approval.
Illicit Discharge Certificate is to be submitted.
Revised landscaping sheets are to be submitted.
A note is to be added to the site plans stating that advertising signage will require a zoning permit.
A detail must be added for the wall packs showing that they are dark sky compliant.
The applicant must work with staff to address items stemming from the town engineer’s comments.
Construction timeline
Plainfield Town Planner Ryan Brais said that Uline would like to begin construction this year and finish in one or two years. He added that the town has not been notified of the construction cost at this point.
Nighttime I-95, Merritt lane closures planned in Norwalk, Darien, New Haven for pavement upgrades
To extend the lifespan of the pavement on the Merritt Parkway and Interstate 95, the state Department of Transportation is conducting an $18.8 million preservation project on those roadways in Norwalk, Darien and other municipalities.
“The Connecticut Department of Transportation is announcing the start of a pavement preservation program to improve the existing wearing surface and extend the life of the pavement on Route 15 and Interstate 95 in Orange, Woodbridge, New Haven, Darien and Norwalk starting on April 8, 2024,” a DOT statement said.
Between Exits 10 and 16 on I-95, lanes will be closed at night on weekdays from 8 p.m. to 6 a.m. Daytime lane closures will be limited to between 9 a.m. and 3 p.m.
“Traffic signal detection systems will be upgraded at two intersections in Darien and one intersection in Norwalk” as a result, DOT said.
In Orange, Woodbridge and New Haven, lane closures along the Merritt Parkway will also occur between exits 56 and 59 from 8 p.m. to 6 a.m.
“Construction will require various ramp closures on I-95 and Route 15" and traffic detours overnight, the DOT statement said. “Traffic control personnel and signing patterns will be utilized when needed to guide motorists through the work zone. Motorists should be aware that modifications or extensions to this schedule may become necessary due to weather delays or other unforeseen conditions and seek alternate routes.”
The project began on April 8, and will last until December.
Tilcon Connecticut Inc. of New Britain was awarded an $18,861,960 contract for the project, which is administered by the Bureau of Engineering and Construction.
Offshore Sector Gathers Second Wind After Several Setbacks
Let’s call it a reset in real time.
Players in and observers of U.S. offshore wind energy say the sector is showing encouraging signs of recovery and progress after in the past year producing a series of headlines about investment write-downs, project exits and attempts to secure higher future prices.
Among the recent happenings:
Four development teams, including Avangrid Inc. and Ørsted A/S, responded to a solicitation from New England states with proposals to build up to 5.5 gigawatts of capacity
The Federal Energy Regulatory Commission approved a large generator interconnection agreement between Equinor’s Empire Wind 1 project, New York ISO and Consolidated Edison, the first time the agency gave the nod for an offshore wind project to connect directly into New York City’s transmission system
National Grid Ventures and a Con Ed subsidiary submitted a proposal to build transmission infrastructure to carry offshore wind power to New Jersey’s electric grid
Lots of work remains to be done to complete those plans but it appears unlikely they’ll face the same buffeting that projects started a few years ago have had to endure. Those developments—which include the Empire Wind 2 plan, whose contract Equinor and bp canceled early this year—faced something of a perfect storm: After developers penciled out business models and secured power purchase contracts before the arrival of COVID-19, supply-chain snarls caused by the pandemic jacked up prices for the materials and equipment they needed and the Federal Reserve’s interest-rate hikes added immensely to their financing costs.
On top of that, Enverus Vice President of Commercial Product Sarp Ozkan said, the costs of interconnection infrastructure also have climbed, putting more pressure on wind farms’ financial models. In all, S&P Global analysts recently projected that project costs have risen nearly 50% from their pre-pandemic starting points. That’s more than enough for some serious soul-searching and spreadsheet revamps.
Some policy support—but not yet from interest rates
Few people are questioning the long-term growth prospects of offshore wind. Analysts at Intelatus Global Partners early this year stuck to their forecast that developers will build more than 65 projects with a combined capacity of 94 GW by 2040. Technologies are becoming more powerful and efficient and the supply chains needed to support the sector’s growth are growing.
In addition, government agencies and regulators at the federal and state levels haven’t wavered in their support of long-term goals. A recent case in point for the latter is a U.S. Department of Energy evaluation of transmission needs off the Atlantic Coast that recommended connecting projects’ transmission networks offshore and creating shared transmission corridors. Such a strategy, researchers said, could be at least twice as cost-effective as individual transmission connection projects.
Add to the federal regulatory momentum FERC’s Order No. 2023, which was announced last November and aims to speed up work on interconnection projects. That will help, Ozkan said, but it is only in the early stages of being implemented.
While there is some potential risk that federal support could wane if Donald Trump is again elected president in November, it’s important to remember that many of the key decisions made about these projects come from state officials, said Kevin Beicke, vice president of asset finance at credit ratings agency Morningstar DBRS.
“There’s a lot going on at state levels,” Beicke said. “I don’t really see that changing. They have their own climate mandates and they want to realize those.”
Even if that means upsizing power purchase agreements for offshore wind energy from their ranges of just a few years ago. In a recent report, Beicke wrote that offshore wind development should be successful over the long term as inflation recedes further and the sector’s supply chain matures. What will also contribute, he wrote, is “a fresh view from all stakeholders that incorporates the current economic environment”—i.e., one where regulators acknowledge developers’ and operators’ higher costs and are willing to approve payment for many of those.
In the short term, however, the biggest factor driving development will be a retreat in interest rates. With budgets in the billions—by way of benchmarking, Dominion Energy’s 2.6-gigawatt Coastal Virginia Offshore Wind project is on track to meet its budgeted cost of $9.8 billion—even a small Fed cut can add up to big savings on construction financing. That, Biecke said, makes it easier for project backers to then ask for power prices amenable to both regulators and the consumers they represent.
“You don’t want to risk a spike right before construction starts,” Biecke added.
A deepening pool of financing options
That renewable-energy ventures are particularly sensitive to interest rates was made apparent April 4 after Neel Kashkari, president of the Federal Reserve Bank of Minneapolis, said there’s a possibility the central bank’s Federal Open Market Committee won’t cut its benchmark rates at all this year. Shares of renewables firms were among the hardest hit in the afternoon sell-off that followed Kashkari’s comments.
Dec. 4 – Startup EnergyRe Raises $1.2 Billion for Transmission Development, Renewables
The pool of financing options isn’t yet as deep for offshore wind work specifically and renewables more generally. For many investors—including some infrastructure specialists—the risks are still too opaque and the economics not as predictable as those of other investment classes. Indicative of that dynamic are comments made last September by Connor Teskey, CEO of Brookfield Renewable Partners, at the company’s investor day.
“The only reason we don't have greater exposure to offshore today is because of our discipline to adhering to that principle of, ‘We don’t take on basis risk,’” Teskey said. “Historically, you had to commit huge sums of capital upfront many years before you knew the cost of building the project or the revenue that project would attract.”
And yet: Here, too, progress is apparent. Immediately after those comments, Teskey said:
“Increasingly around the world, projects are closer to development. They're closer to construction and it's going to create opportunities for us to invest without taking on that basis risk that we've historically been averse to.”
Infrastructure-focused funds such as the one run by Teskey and his team have become big players in the investing world. Despite a slower 2023, they have put to work an average of $391 billion each year since 2019, according to investment data company Preqin, and they finished 2023 with nearly $330 billion on hand.
Energy-transition projects will get a large share of those dollars, particularly as the list of completed and transacted projects grows. For example: Vineyard Wind, one of the teams responding to the recent New England solicitation, is a partnership between Avangrid and 12-year-old Copenhagen Infrastructure Partners.
Alex Ellis, a co-founder and partner of Excelsior Energy Capital, said a more diverse set of investors is looking for deals over the range of renewable assets’ lifespans. Excelsior is investing from its second fund, which has a target of $750 million, and typically steps into projects as they near completion to hold them through what Ellis calls “the teething process.” The team in March sold a portfolio of 38 solar and solar-plus-storage assets to BlackRock’s Evergreen Infrastructure Partners Fund, a deal he said is indicative of the sector’s maturation.
“The market is better understanding development risk. The rules of the road have been better defined, whether that’s for permitting or interconnection,” he said, comparing today to when Excelsior was founded in 2017. “The average investor is better informed, more aware of the risk profiles and knows which questions to ask.”
Offshore wind developers will need those backers and others to continue to step up. Biecke said that, while the focus of the U.S. sector has so far been primarily on East Coast projects, the potential for massive floating wind projects off the West Coast is becoming clearer. And with that big potential will, over time, come many more big-dollar asks.