Enfield subpoenaed as part of widening probe into school construction

Andrew Brown

Federal authorities subpoenaed the town of Enfield late last month as part of a widening investigation into school construction projects in Connecticut and the state’s former deputy budget director, Kosta Diamantis.

The subpoena, which was issued on Feb. 22, ordered local officials in Enfield to turn over seven years of records related to school building projects and any communications the town had with Diamantis, who ran Connecticut’s school grant program until October.

Enfield is not the first municipality to receive a summons from the federal grand jury, which is reviewing information regarding Diamantis and his relationship with construction contractors.

At least four other towns and cities, including Hartford, Bristol, Groton and Tolland, also received subpoenas in the past month ordering them to turn over a vast number of documents and communications involving Diamantis and local school projects.

Diamantis, as the former director of the Office of School Construction Grants and Review, had significant control over school construction throughout the state and the billions of dollars in state funding that went to those projects.

Nobody has yet been charged as part of the federal investigation.

The subpoena issued to Enfield shows that federal prosecutors are particularly interested in the ongoing renovation and expansion work at the town’s John F. Kennedy Middle School.

That $84 million project got its start in 2019 after state lawmakers and the Office of School Construction Grants and Review agreed to fund more than 70% of the costs for the construction.

Ellen Zoppo-Sassu, Enfield’s town manager, said local officials were advised by the town’s attorney not to speak about the subpoena or the middle school project.

It’s unclear why federal prosecutors focused on the ongoing middle school project in Enfield, which is set to be finished this summer.

In October, the federal grand jury subpoenaed Gov. Ned Lamont’s administration and ordered the state to run keyword searches to find any emails, texts or other documents involving “John F. Kennedy” or “JFK.”

Several of the contractors who were hired to oversee the renovations on the middle school were also named in that earlier subpoena, which was issued just before Diamantis was removed from his position overseeing the school grant program.

The federal prosecutors asked the state to turn over any documents or communications involving Gilbane Building Company and Construction Solutions Group.

Both of those firms were hired in 2019 to oversee the work on the middle school in Enfield.

Gilbane, which is headquartered in Rhode Island, was selected by Enfield’s school building committee as the construction manager for the project, and Construction Solutions Group, which is based in East Hartford, was hired as the owner’s representative, which is also known as the construction administrator.

It’s unclear how much money the two companies were paid for that work. Officials with Gilbane and Construction Solutions Group declined to comment for this story.

The subpoena that was issued to the state last fall, however, indicates that federal prosecutors were interested in any communication that took place between Diamantis and two of the top executives with Construction Solutions Group.

The grand jury ordered the state to prioritize a keyword search for “Giuliano” and “Cykley.” Those are the last names of Construction Solutions Group’s president, James Giuliano, and its vice president, Christopher Cykley.

Meeting minutes from Enfield show Cykley participated in the town’s school building committee meetings and testified about the project in front of the town council.

Cykley and Giuliano also declined to comment for this story.

Michael Puffer

The Capital Region Development Authority will shortly launch $20 million in repairs and upgrades to the XL Center, Hartford’s premier sports arena and convention center.

Michael Freimuth, executive director of the CRDA, told his board in a Thursday meeting the funding will come from a $40 million pool of state bond money the agency received “several years ago.”

The agency has already spent around $18 million of this, much of it on a costly replacement of the flooring system and chillers used to maintain ice for hockey games, Freimuth said. Other repairs included an elevator, escalators, technical upgrades, improved concession stands, replacement of basketball floors and upgraded lighting.

Now, the agency is preparing a new round of projects.

This could include the addition of a sports bar/sports betting lounge on the Ann Uccello Avenue side of the XL Center, as well as enlargements to the concourse, Freimuth said. The work contemplated also includes upgrades to kitchens, loading dock repairs, new audio-visual equipment, replacement of a freight elevator and a start to the replacement of retractable seating systems. This seating is pulled out for basketball and retracted for hockey.

Lockers used by University of Connecticut teams will be replaced, Freimuth said. Enough funding remains, the agency also hopes to replace the public announcement system at the arena, he said.

Freimuth told the CRDA board he hopes to leave something of a cash reserve “because the minute we get done with that something will break.”

Right now, CRDA estimates $15 million to $20 million for this work. Freimuth expects firmer numbers after the return of bids that will be released over the next few months.

The CRDA has hired Providence-based Dimeo Construction to manage the project.

Freimuth previously said he hopes to have the sports betting facility ready to open in September. The entire plan, however, hinges on ongoing negotiations with state officials over a split of betting proceeds, Freimuth said.

“We are working our way through distribution of revenue earned at the XL if it is licensed for sports betting,” Freimuth said. That decision will be made by the state budget office and the Connecticut Lottery, he said. It may require action by the General Assembly, he added.

“Assuming we can work our way through that piece, we will formally enter into an agreement with the lottery on how the license will operate at XL,” Freimuth said.

Meanwhile, CRDA might see an investment of cash in upgrades to the XL Center from Los Angeles-based Oak View Group LLC, the company currently managing operations at the center.

Oak View took over management of the arena following a merger with Spectra Venue Management.

Freimuth said Oak View has been in talks with CRDA about potentially investing in the XL Center to make it better suited for their business model, which involves music concerts. The company wants to know if the center can provide adequate seating and staging to make concerts profitable.

Also at issue is the fact XL is served by just one loading bay, making it costly and impractical to bring in and remove equipment needed for shows, Freimuth said in an interview after Thursday’s meeting.

Developer sought for mixed-use project on downtown Hartford lot south of Bushnell Park

Michael Puffer

The Capital Region Development Authority is poised to begin its hunt for a developer to transform a four-acre parking lot south of Bushnell Park into a mix of hundreds of apartments and thousands of square feet of retail space.

CRDA Executive Director Michael Freimuth said his agency will issue a “request for qualifications” in early April, seeking interested developers.

The lot sits just to the east of a state office building, sandwiched between Capitol Avenue and West and Buckingham streets one block south of Bushnell Park.

It occupies one of several blocks — a total of about 12 acres — the city aims to transform into a vibrant mix of apartments for 1,800 residents, along with retail, arts and cultural offerings.

That vision is spelled out in a “Bushnell South” master plan first issued last June and updated in November.

According to that plan, the four-acre lot controlled by CRDA would host 372 apartments and 28,000 square feet of retail space. The exact scope and schedule, however, would be subject to negotiations between whatever developer is selected and the CRDA, Freimuth said.

The larger Bushnell South redevelopment plan includes Spinnaker Real Estate Partners’ $63.3 million redevelopment of a former state office building at 55 Elm St., which sits near the eastern edge of the development zone. Spinnaker plans to create 278 apartments, as well as retail on that site, according to the master plan.

The master plan also shows Spinnaker eventually building another 456 housing units on parking lots just south of 55 Elm St.

Freimuth said development of the four-acre parking lot currently controlled by CRDA could come in two or more phases. He plans to issue an RFQ in early April, with responses due at some point in May. If all goes well, a preferred developer could be picked in late spring or early summer, he said.

Groton Council to vote on whether to cease negotiations with data center developer

Kimberly Drelich

Groton — A data center developer sent a memorandum Friday offering several changes and requesting that the Town Council withdraw the current agreement so the company can return with a fully revised proposal after conducting more outreach to neighbors and the public.

Town Mayor Juan Melendez Jr. said he received the memorandum, but the Town Council will proceed with holding a previously scheduled meeting on Tuesday to vote on whether or not to discontinue efforts to pursue a municipal host fee agreement with NE Edge. Melendez, who is one of nine councilors, said he personally plans to vote to discontinue pursuing the municipal host fee agreement.

Residents had raised concerns at recent public meetings about the proposal.

NE Edge has been seeking the agreement with the town to locate data centers on land, south of Interstate 95 and north of the Sheep Farm properties, between Flanders and Hazelnut Hill Roads. The proposed agreement outlines how much annual revenue the developer would pay to the town in lieu of taxes and the criteria for the data center proposal and would be the first step before the land use process.

In a memo from NE Edge to Town Manager John Burt and councilors on Friday, NE Edge stated that: "Over the course of the last week, we have reached out to all but one Town Councilor to review their concerns related to the Municipal Hosting agreement. To date, we have met four of the councilors in person." The company also said it is reaching out to Flanders and Hazelnut Hill neighbors individually and will include engineers to answer concerns.

NE Edge said it has agreed to make several changes to the current agreement. The company will eliminate the third, southernmost data center building and instead distribute the footprint of the eliminated building into the two remaining buildings in the plan, according to the memo. The developer also would add a deed restriction that no more buildings could be built on site.

NE Edge will pay the town an annual fee of $3.5 million, with escalation, according to the memo. This keeps the same fee structure that had been proposed for three buildings, NE Edge manager Thomas Quinn explained.

Starting in year five, NE Edge also will make an additional $250,000 annual payment with escalation, over 25 years, "specifically earmarked for" Ella T. Grasso Technical High School and Robert E. Fitch High School, the memo states.

NE Edge previously has said it would donate 50 acres of land to the town, and now proposes to increase that to 70 acres "based on final approval." It also has pledged to build a dog park and playground, which the memo specifies will be "on a two-acre area on land provided by the Town with appropriate parking and fencing, or on part of the donated land."

The company also said it will "extend the water and sewer (infrastructure) along Flanders Road." The company said the town manager, at its request, reached out to the municipal utility "to verify assertions by NE Edge representing the impact of the Data Center utility purchases on Municipal Utility ratepayers." NE Edge said the impact will reduce rates for ratepayers.

"The proposal modified here creates a substantial benefit to the town, utility ratepayers, schools, union jobs, ongoing technical jobs and training towards these jobs, town infrastructure upgrades, and indirect and induced jobs," the memo states. "Locating in Groton provides the opportunity for other types of businesses to locate near the Data Centers due to the benefit of fast connectivity. It is a fact that Data Centers have gravity, adding substantial economic opportunity, and additional tax base with support operations locating nearby."

Quinn said an informational public meeting is being planned for 6 p.m. April 19 in Groton, expected to be held at the Groton Shopping Plaza.

Meanwhile, a special Committee of the Whole and Town Council meeting are scheduled for 6:30 p.m. Tuesday at the Thrive 55+ Active Living Center, as well as virtually, on the topic of potentially discontinuing negotiations with NE Edge.

"The council has a difficult task of balancing the potential positives of having a data center while ensuring the safety and comfort of the surrounding neighborhood," Burt said. "The councilors have spent significant time studying the issues and will make the decision they think is best for the community."

"If the council turns down the agreement, it would take six council members to agree to bring it back to the council within the next year per council rules," he said.

"Whether or not they vote on Tuesday, we're still going to pursue our process with the town and come back with a new host fee agreement that may be better acceptable to them once we continue our diligence," Quinn said.

Town Councilor Aundré Bumgardner, who said he was not contacted by the developer, took issue with a developer reaching out to have a discussion with a councilor outside of public meetings. "The town code of ethics obviously needs revision to prohibit precisely these sorts of ex-parte communications between developers and decision-makers," he added. 

In a statement Friday, Town Councilor Portia Bordelon said that she reported at the March 22 Committee of the Whole meeting that "Quinn had reached out to her via text, but she declined to respond in an off-the-record manner. During the meeting on the 22nd, she stated her concerns with the appearance of impropriety, following due process and accountability via the Freedom of Information Act."

Burt said the communications between a developer and a councilor are allowed. He said staff at the FOI Commission has said that it is not an issue.

"It’s great to see the developer is finally engaging with the community and is planning on hosting a public informational session although it should have been done months ago," Town Councilor David McBride said in a statement. "As I mentioned in my last Council report I believe the Council should review the HCA (excluding the current data center location and the current developer) and make the necessary changes it deems appropriate."

"Groton has a significant comparative advantage to other municipalities regarding the hosting of data centers and if the town wants to explore such economic development opportunities it should make all developers aware of its requirements," he added. "Once such is completed the Council can review opportunities with all developers and the desired locations."

Meanwhile, the Planning and Zoning Commission discussed this week potentially having a moratorium on data centers to allow the commission time to update its regulations. This would require a public hearing. Groton's Assistant Director of Planning and Development Services Deb Jones said the next step would be to develop an application for the commission to review. The application has not been drafted yet, so no public hearing is scheduled at this point.

New London celebrates funding for National Coast Guard Museum

Greg Smith  

New London — In April 2006, former Connecticut Gov. M. Jodi Rell gathered with state and local officials on the waterfront of Fort Trumbull to announce a state contribution toward construction of a National Coast Guard Museum.

The location has since changed but the idea of situating a National Coast Guard Museum in New London has been around for more than two decades. It now appears that the series of starts and stops that have delayed the construction are nearing an end.

On Friday, the city hosted a celebration of the $50 million in federal funding now dedicated to the project as part of a federal funding bill signed by President Joe Biden last week. Members of the Coast Guard Museum Association, which leads the fundraising efforts for the museum, call it a game changer and the impetus for more private funds to flow to the project.

Sen. Chris Murphy, chairman of the U.S. Senate Appropriations Subcommittee on Homeland Security, is credited with leading the push for federal funds and was among dignitaries to express excitement over the prospect of construction finally starting.

Construction on City Pier could start as early as this summer if permits are secured for the project.

“This has been a 20-year dream to have a museum on this waterfront befitting of the sacrifices that thousands of men and women who have been part of the Coast Guard’s long story have made,” Murphy said. “This is the only service that does not have an institution to be able to tell the story of that service, of that bravery, of that legacy of heroism."

Friday’s event was held on City Pier, near the location of where the six-story, 80,000-square-foot museum will be constructed. “America’s Tall Ship,” the barque Eagle, which will have a dedicated spot near the future museum, was the backdrop for Friday’s event that featured comments from Sen. Richard Blumenthal, U.S. Rep. Joe Courtney, Mayor Michael Passero, Coast Guard Rear Admiral Mary Dean and others.

Officials say the museum is likely to attract several hundred thousand visitors to the city each year and comes at a time when Mayor Passero said the city is in the midst of “an economic renaissance ... the likes of which we have not seen since the whaling era when New London’s wealth was unrivaled in the state.”

“This museum will also introduce these new visitors to New London’s vibrant cultural and historic assets,” Passero said.

New London was secured as the future home for the museum thanks to federal legislation passed in 2014, an effort led by former U.S. Rep. Rob Simmons, with support from U.S. senators. The downtown location for the museum was codified with the donation of land from the city under former New London Mayor Daryl Justin Finizio later that same year. The downtown location, which continues to generate controversy locally, was seen as a better fit for the museum to attract visitors because of its proximity to the city’s transportation hub.

The state, as part of funding commitments to the project, has pledged $20 million toward construction of a 400-foot pedestrian bridge over Water Street and the railroad tracks, which will bring visitors directly to the museum and waterfront.

Brian Gioiele

SHELTON — The groundbreaking on extending Constitution Boulevard is planned for April 15, and it appears construction will be on the state’s dime.

A request for $5 million to cover the costs of extending the roadway — which is essential to the eventual development of the nearly 70-acre, city-owned Mas property — will be before the state Bond Commission on March 31.

“We get results, and that makes everyone look good,” said Mayor Mark Lauretti. “The goal is to keep Connecticut businesses in Connecticut. I’m grateful (Gov. Ned Lamont) recognizes that.

Lauretti said extending Constitution Boulevard was a smart business move.

“But the state is not just giving away money,” he said. “This will pay dividends not just for the city but for the state. (Lamont) recognizes what is going on in Shelton. He’s engaged in economic development, and I give him credit for that.”

Extending the roadway and use of the Mas property has been on the table for years, but Lauretti began the most recent push in April when he presented preliminary plans for creating the road leading into the city-owned land, which would be developed into a manufacturing corporate park.

“In my first conversation with (Lamont), I said four other governors have given me money, don’t get left out,” Lauretti said. “We do credible projects that benefit Shelton and the State of Connecticut. It really is a mutual relationship.”

The city has purchased 56 Blacks Hill Road but still needs to acquire property at 55 Blacks Hill Road to complete the road. The city and the owners of a property on Blacks Hill Road that is essential to extension of Constitution Boulevard remain far apart on sale terms and Lauretti is saying condemning the property is the next step.

Lauretti has so far declined to say what the city is offering but said the owners of 55 Blacks Hill Road have offered to sell the 5.1-acre property to the city for $1.7 million.

In recent weeks, the city has reached deals to sell pieces of the Mas land to two separate companies.

Shelton residents William and Nicole Charney, owners of Shelton-based Advanced Home Audio, which is presently located on Long Hill Cross Road, agreed to buy six acres. The couple agreed to pay the city $85,000 per acre, which comes to $510,000.

That sale came after Lauretti announced that Bigelow Tea was purchasing 25 acres of the property for an estimated $2.1 million for its future expansion.

The aldermen’s approval states the total acreage and payment amount will be determined after the final subdivision of the nearly 70-acre parcel near Constitution Boulevard.

Shelton state reps. Jason Perillo and Ben McGorty and state Sen. Kevin Kelly worked alongside Lauretti to help secure $5 million in funding for the road extension in the state’s 2021 bond package. The funding will be available once approved by the state Bond Commission, according to Perillo.

“This has been a great team effort that included (Lauretti), Rep. McGorty and Senator Kelly whose help was invaluable,” Perillo said. “We made our pitch to the governor’s office, and they agreed that this was a great economic development opportunity that could not be missed.

“This will keep a Connecticut business right here in Fairfield County (Bigelow Tea) and lead to additional business development,” Perillo added. “Additionally, these projects keep taxes on residents low while also providing more tax revenue to pay for city services.”

The Mas property is now vacant. It is mostly wooded with considerable stone ledges and several ponds, including one that is about 600 feet long and 250 to 300 feet wide, and lies between Bridgeport Ave., Cots Street, Tisi Drive, Sunwood Condos on Nells Rock Road, Regent Drive, Walnut Avenue, and Kings Highway. Part of the land abuts the back of the Perry Hill School property.

Norwalk set to break ground on first new school in 50 years

Emily Morgan

NORWALK — As construction at Jefferson Elementary wraps up, the city is preparing to break ground on its first new school building in over 50 years.

Newfield Construction is reviewing bid packages for the new Cranbury Elementary School and will then submit a maximum price for the project to Common Council. Construction is scheduled to start in April and be completed by fall 2023.

The 62,288-square-foot building will be built in the field directly west of the existing school. Cranbury Elementary will remain operational through construction and will be demolished when the new school is built to make room for vehicle drop-off areas. The budget for the project is $45 million.

A lawsuit filed by two neighbors whose properties are adjacent to the school lot remains pending. Residents Matt Bury and Matt Forte filed the suit in January against the Norwalk Board of Zoning Appeals and its decision to approve a special variance to allow the school to sit closer to the property line.

The last time the city built a new school was in 1971 when Norwalk High School, Jefferson Elementary, and Marvin Elementary were all constructed.

Much of the interior finish work is underway at Jefferson Elementary School, according to Michael Faenza, the project manager from Construction Solutions Group. The school is being renovated to new for about $33.4 million, adding a separate gymnasium, new classrooms and relocating the main entrance.

Crews are working from the third floor down as they finish painting rooms, installing cabinetry and electronic display boards, and putting in lighting and HVAC systems. Bill Hodel, director of facilities and maintenance for Norwalk Public Schools, and his team visited the site to see how the electric and plumbing runs through the school before the walls went up.

“That can be helpful to them from a maintenance standpoint, seeing where everything goes and the directions its running,” Faenza told the Board of Education Facilities Committee on Wednesday.

About 90 percent of the roof is in place, and the contractor is preparing to lay asphalt on the driveways and parking lots as well as start landscaping. Faenza said all the furniture vendors will be able to deliver their materials on time. Construction is expected to be completed in June, ready for students and staff to return this fall.

Naramake Elementary School completed most of its renovations at the end of 2021, but it still needs some electrical equipment installed for its new kitchen. The equipment is connected, and inspections will take place next week. Kitchen staff will also be trained on the new equipment and should be ready to cook and serve meals on April 4.

Jim Giuliano, president of Construction Solutions Group, was optimistic on Wednesday that the city would have an agreement on the property for the new South Norwalk school “in the near future.” The state has reviewed the proposed property, but its location has not been publicly revealed.

The city needs Common Council and the school board to approve several more resolutions to complete their grant application to the state.

“This is just so exciting to have so many schools getting renovated and face-lifts because they need them,” board member Sherelle Harris said during the facilities meeting. “I’m very excited and very proud that Norwalk is investing in its schools.”

A greater investment in the school facilities was one of the recommendations made by Evergreen Solutions in its efficiency study of Norwalk and the public schools, released on Tuesday. The study encouraged both entities to follow the assessment conducted by Newman + DLR Group last year to prioritize which facilities to renovate next.

The assessment identified $429 to $495 million in various repairs, replacements, and renovations needed across the district over the next 20 years. Naramake and South Norwalk were two schools identified in the first tier of facilities most in need along with Fox Run Elementary School and West Rocks Middle School.

Giuliano said Norwalk’s facilities plan “rivals that of larger cities that have gone through major overhauls of their schools.”

Board chair Colin Hosten said Norwalk is conducting its overhaul “at a much lower reimbursement rate” than the other cities.

New Britain will utilize millions of dollars from unused bonds for new city improvement projects

NEW BRITAIN – The City of New Britain will utilize millions of dollars for new city improvement projects, after reappropriating unused bond funding from completed projects.

In a special meeting Wednesday, the city’s Common Council voted to use the sum of $26,950,000 to be appropriated for the cost of various capital improvements for the city. The decision was made after the council voted to close out completed capital projects and de-authorize any related unused bond authorizations. The money from the unused bonds, in part, will be appropriated for new projects.

Proposed projects include the construction of a new public works yard, improvements at the Stanley Golf course, the purchase of various capital equipment, temporary and permanent financing costs, and the interest costs on the bonds authorized. 

According to the report, the New Public Works Yard would cost $20,000,000, Stanley Golf Course Improvements would cost $1,000,000, Various Capital Equipment would be $4,000,000, Financing Costs $450,000, and Capitalized Interest on Bonds would be $1,500,000.

Alderman Robert Smedley said several of the proposed projects are desperately needed to make essential repairs.

“Some of these projects are imperative to the daily function and operation of our city. Specifically our new public works yard,” Smedley said. “In addition the facility is just aging so poorly, not uncared for, just they’re aging and it’s time for new facilities.”  

Director of Parks, Recreation & Community Services Erik Barbieri said the funding would significantly help with improvements to the Stanley Golf Course. He said in the late 1980’s the golf course had a revolving fund in which the money made could be used to make improvements. However, Barbieri said the golf course is currently operating at a deficit and would require additional funding in order to make the much needed improvements. The renovation would add a reception pavilion to match existing buildings, which will be used for events. Barbieri said improvements to these facilities could mean an increase in revenue, because more people would want to visit the golf course and restaurant and event bookings.

“Since 2015 we’ve been able to not work in the red anymore but work in the black, and the golf course is doing exceptionally well, we’re still working on a net deficit over the lifetime of the golf course,” Barbieri said.

The decision was made after the council accepted a report of the Standing Bonding Subcommittee of the Common Council Committee on Administration, Finance and Law, which recommended the city use the funds remaining from closed out completed projects. Earlier in the meeting Wednesday night, the council voted to de-authorize any related unused bond authorizations from completed capital projects.

In a Facebook Live prior to the meeting, Stewart said the reallocation of funding would come from projects which have already been completed and no longer need the surplus of money.

“These are old bonds that still have money in them but the project that they were spent on but the money they were spent on and can only be spent on are completed,” Stewart said. “So this money is sitting there, the city is paying on this and we don’t need to be doing that. We need to save every dime we can so we’re defunding these projects.”

Smedley said the report sent to the council by the Standing Bonding Subcommittee outlines the completed capital projects and the remainder of the funding. According to the report, the projects included are the City Wide Facility project, New Britain High School remodel project (from 2007) and repairs to Badolato & Szczesny parking garages. The unused bonds de-authorized came out to $1,157,813 in total. The council was required to de-authorize the funds before they could appropriate because of how the original resolutions were written, which outlined that the funding could only be spent on these specific projects. 

The council also approved the reallocation of $49,500,000 be appropriated for the purpose of paying the city’s outstanding General Obligation Bonds and to pay related costs with such bonds from now through March 1, 2025. The approved resolution would result in a restructuring of the city’s debt profile and make room for the reallocation of the $26,950,000 for the new capital improvements.

The resolution to reallocate the sum of $26,950,000 for the new capital improvements passed with a 14 to 0 vote.