CT Construction Digest Monday May 18, 2020
Cromwell town projects move forward despite pandemic
Jeff Mill
CROMWELL - One bright spot for town officials during the pandemic has been the continuing work being done on infra-structure projects.
“All our major infrastructure projects are still going on,” Town Engineer/Deputy Highway Superintendent Jon C. Harriman said.
Work is essentially complete on the new 95-stall public parking lot off Community Field Road, and crews are pushing ahead with the reconstruction and repair of a portion of Coles Road. Among the most significant dramatic project of the moment is the on-going construction of the new combination highway department /Water Pollution Control Authority office and garage building.
The 38,700-square-foot structure is being built on town-owned land off County Line Road.
“The work is on schedule,” Harriman said in a telephone conversation.
“We’re still hoping for a December to January deadline,” he added.
The construction is being done by D’Amato Construction Co., of Bristol, on 13.5 acres in the Northern Tier Industrial Park.
To build the building, it was necessary to move the town’s transfer station, Harriman said.
“With the exception of some concrete work, the town staff [the highway department] took over and completed 100 percent of that move,” Harriman said.
Doing so resulted in a savings of $50,000 to the town, Harriman said.
Harriman, who is overseeing the construction, said, “I’m pleased with the both the quality of the work and the rate of construction.”
The building will provide space to store the various vehicles used by the several divisions that make up the Public Works Department.
It will take the place of the narrow and cramped space of the existing garage, which sits at the south end of Pierson park.
The existing garage complex is made up of four buildings and a salt shed.
Two of the buildings — a more-than-century-old wooden building and a World War II-era Quonset hut — are slated for demolition once the highway department relocates to the new facility.
“The salt shed will be moved to the new site and have a new ‘skin’ put on it,” Town Manager Anthony J. Salvatore said in a telephone conversation Friday afternoon.
Salvatore intends to have an analysis made of the current site with recommendations for its potential future uses.
However, funding for that project has been deferred until the pandemic eases.
The future of the WPCA garage, which is located behind police headquarters, is uncertain at this point.
Speaking about the new garage, Director of Public Works Louis J. Spina said, “It looks fantastic.”“It exceeded my expectations, Spina said.
“I’m very pleased with the progress that is being made up there,” he said, adding that the structure “will take care of our current needs and provide space for the future as well.”
DEEP rejects Candlewood Solar permit in New Milford
Katrina Koerting
NEW MILFORD — The state has rejected a crucial part of a controversial solar project, delaying its construction again.
The state Department of Energy and Environmental Protection rejected the stormwater management plan for Candlewood Solar’s project on Candlewood Mountain under the general permit. The department is also now requiring any new plan be submitted under the stricter individual permit, fulfilling the town’s request from earlier this year. “The DEEP’s decision is an affirmation of the town’s significant and justified concerns about this invasive project,” Mayor Pete Bass said in a statement.
The project calls for Candlewood Solar’s parent company, Ameresco, to install and operate about 60,000 solar panels on Candlewood Mountain to generate 20 megawatts of power.
“While we are disappointed with this unexpected decision, our goal is to keep moving forward on this project that will create more than 100 good-paying jobs for the local economy and produce clean, zero carbon energy, an oft-stated goal of the Lamont administration and the DEEP,” Robert Jackson, Candlewood Solar’s director for solar development, said in a statement.
DEEP’s approval is the last step before the project can be built. The Connecticut Siting Council approved the project in December 2017 and the management plan last June, just three months after DEEP rejected the initial stormwater management plan because it didn’t meet the permit requirements.
“While I have doubts, given the three prior attempts under the general permit, that even an individual permit can be issued for the project, I have determined that if a permit is to be issued, an individual permit will better protect the waters of the state from pollution,” Oswald Inglese Jr., DEEP’s director for the Bureau of Materials Management and Compliance Assurance, wrote in the department’s rejection.
He also said the department’s technical judgements have differed from those provided by Candlewood Solar, and the general permit doesn’t have a process well-suited to resolve these issues. The individual permit also allows for a hearing, which Inglese said was justified given the project’s complexity.
Inglese said the project doesn’t meet adequate buffer requirements, lacks sufficient justification for certain parameters, and lacks justification and documentation for the ability to phase construction and add erosion and sediment controls along certain slopes.
The application also doesn’t comply with post-construction stormwater management measures or guidelines for erosion, sediment control and site stabilization. It additionally lacks documentation on the project’s ability to protect outlets and prevent adverse downstream impacts, Inglese wrote.
“We are still in the process of reviewing the DEEP’s decision and assessing our path forward, and we will have more to say in the coming weeks about this important environmental and economic project,” Jackson said.
Town officials are calling DEEP’s decision a victory. Bass said it not only affirms the damaging nature of the project outlined by attorney Dan Casagrande, who is representing the town on the project, but Casagrande’s petition also seems to have been a catalyst for DEEP to find further flaws.
“While we value clean and renewable energy, we don’t support the Candlewood Solar project because it would mean the clear-cutting of mature forestland, threaten or destroy wildlife habitats and cause other environmental harm,” Bass said.
New assisted living complex coming to Bristol
MATT HORNICK
A new assisted living complex is coming to Bristol, after the city’s zoning commission unanimously approved plans.
Jeff Mill
CROMWELL - One bright spot for town officials during the pandemic has been the continuing work being done on infra-structure projects.
“All our major infrastructure projects are still going on,” Town Engineer/Deputy Highway Superintendent Jon C. Harriman said.
Work is essentially complete on the new 95-stall public parking lot off Community Field Road, and crews are pushing ahead with the reconstruction and repair of a portion of Coles Road. Among the most significant dramatic project of the moment is the on-going construction of the new combination highway department /Water Pollution Control Authority office and garage building.
The 38,700-square-foot structure is being built on town-owned land off County Line Road.
“The work is on schedule,” Harriman said in a telephone conversation.
“We’re still hoping for a December to January deadline,” he added.
The construction is being done by D’Amato Construction Co., of Bristol, on 13.5 acres in the Northern Tier Industrial Park.
To build the building, it was necessary to move the town’s transfer station, Harriman said.
“With the exception of some concrete work, the town staff [the highway department] took over and completed 100 percent of that move,” Harriman said.
Doing so resulted in a savings of $50,000 to the town, Harriman said.
Harriman, who is overseeing the construction, said, “I’m pleased with the both the quality of the work and the rate of construction.”
The building will provide space to store the various vehicles used by the several divisions that make up the Public Works Department.
It will take the place of the narrow and cramped space of the existing garage, which sits at the south end of Pierson park.
The existing garage complex is made up of four buildings and a salt shed.
Two of the buildings — a more-than-century-old wooden building and a World War II-era Quonset hut — are slated for demolition once the highway department relocates to the new facility.
“The salt shed will be moved to the new site and have a new ‘skin’ put on it,” Town Manager Anthony J. Salvatore said in a telephone conversation Friday afternoon.
Salvatore intends to have an analysis made of the current site with recommendations for its potential future uses.
However, funding for that project has been deferred until the pandemic eases.
The future of the WPCA garage, which is located behind police headquarters, is uncertain at this point.
Speaking about the new garage, Director of Public Works Louis J. Spina said, “It looks fantastic.”“It exceeded my expectations, Spina said.
“I’m very pleased with the progress that is being made up there,” he said, adding that the structure “will take care of our current needs and provide space for the future as well.”
DEEP rejects Candlewood Solar permit in New Milford
Katrina Koerting
NEW MILFORD — The state has rejected a crucial part of a controversial solar project, delaying its construction again.
The state Department of Energy and Environmental Protection rejected the stormwater management plan for Candlewood Solar’s project on Candlewood Mountain under the general permit. The department is also now requiring any new plan be submitted under the stricter individual permit, fulfilling the town’s request from earlier this year. “The DEEP’s decision is an affirmation of the town’s significant and justified concerns about this invasive project,” Mayor Pete Bass said in a statement.
The project calls for Candlewood Solar’s parent company, Ameresco, to install and operate about 60,000 solar panels on Candlewood Mountain to generate 20 megawatts of power.
“While we are disappointed with this unexpected decision, our goal is to keep moving forward on this project that will create more than 100 good-paying jobs for the local economy and produce clean, zero carbon energy, an oft-stated goal of the Lamont administration and the DEEP,” Robert Jackson, Candlewood Solar’s director for solar development, said in a statement.
DEEP’s approval is the last step before the project can be built. The Connecticut Siting Council approved the project in December 2017 and the management plan last June, just three months after DEEP rejected the initial stormwater management plan because it didn’t meet the permit requirements.
“While I have doubts, given the three prior attempts under the general permit, that even an individual permit can be issued for the project, I have determined that if a permit is to be issued, an individual permit will better protect the waters of the state from pollution,” Oswald Inglese Jr., DEEP’s director for the Bureau of Materials Management and Compliance Assurance, wrote in the department’s rejection.
He also said the department’s technical judgements have differed from those provided by Candlewood Solar, and the general permit doesn’t have a process well-suited to resolve these issues. The individual permit also allows for a hearing, which Inglese said was justified given the project’s complexity.
Inglese said the project doesn’t meet adequate buffer requirements, lacks sufficient justification for certain parameters, and lacks justification and documentation for the ability to phase construction and add erosion and sediment controls along certain slopes.
The application also doesn’t comply with post-construction stormwater management measures or guidelines for erosion, sediment control and site stabilization. It additionally lacks documentation on the project’s ability to protect outlets and prevent adverse downstream impacts, Inglese wrote.
“We are still in the process of reviewing the DEEP’s decision and assessing our path forward, and we will have more to say in the coming weeks about this important environmental and economic project,” Jackson said.
Town officials are calling DEEP’s decision a victory. Bass said it not only affirms the damaging nature of the project outlined by attorney Dan Casagrande, who is representing the town on the project, but Casagrande’s petition also seems to have been a catalyst for DEEP to find further flaws.
“While we value clean and renewable energy, we don’t support the Candlewood Solar project because it would mean the clear-cutting of mature forestland, threaten or destroy wildlife habitats and cause other environmental harm,” Bass said.
New assisted living complex coming to Bristol
MATT HORNICK
A new assisted living complex is coming to Bristol, after the city’s zoning commission unanimously approved plans.
The new 60,000 square-foot building will go up on the corner of Route 6 and North Main Street.
“This is a major addition to the downtown revitalization that we have been working toward, parcel by parcel,” Mayor Ellen Zoppo-Sassu said in a press release. “We like the look of it, and the presence it will have on that gateway.”
Senior Living Advisors is the company at the head of this project that plans on erecting a five-story building with 60 units, 14 of which will be dedicated to specialized memory care all will feature the company’s proprietary “KindCare” approach.
“The KindCare community is an innovative model that features rates that are 30 percent less than most assisted living communities with cutting edge technology to keep its residents safe, well and happy,” Senior Living Advisors C.E.O. Mark De Pecol said. “Our design includes features such as Remote Visitation, Telemedicine, and Ultraviolet air handlers that eliminate 99% of viruses and bacteria in the airspace. A wellness center, restaurant, bistro, media room, walking gardens and many social activities all contribute to the residents’ well-being. A staff of 50-75 employees are trained in elderly care and the protocols to sanitize prior to entering the resident area for work.”
Councilman Peter Kelley said he was very pleased to see development on a space that has been empty for 10 years and Councilwoman Mary Fortier said she is excited by the new jobs the project will bring to Bristol.
“With the emphasis that the Board of Education is putting on a healthcare pathway for high school students, as well as the work of Tunxis Community College and Bristol Adult Education, we are going to be able to supply a well-trained workforce,” Fortier said.
Construction on the new building is slated to begin in September.
$108 million New London High School project poised to start this month
Greg Smith
New London — Project and construction managers overseeing the $108 million reconstruction of New London High School are pushing for a May start date for major construction work.
And while bids on the project came in at more than $4 million over budget, closer scrutiny and revisions to the plans over the past several weeks have nearly closed the budget gap. Diana McNeil, project manager for Capitol Region Education Council, said the value engineering work is still ongoing and some numbers remain fluid, but the construction manager for the project, Newfield + Downes, has "no other choice" but to bring the project within budget.
The state, which is reimbursing the city 80% of the costs for much of the project, will not consider any reimbursement to the city for items outside the $108 million budget, McNeil said.
Tom DiMauro, project executive for Newfield + Downes, said last week during a meeting of the School Building and Maintenance Committee, that changes in the scope of work have reduced costs by an estimated $3.8 million, though an estimated $708,890 of those cuts are still pending approval.
A subcommittee that includes city and school district representatives have spent the past several weeks examining more than a hundred line items to find cost reductions. Materials were changed, costs of fixtures revised, allowances for contractors lowered and numerous individual line items that included labor costs were scrutinized, McNeil said, in order to fit into the budget.
Newfield + Downes now awaits approval from the City Council to award contracts to eight trade contractors involved in the early construction phase. The contracts would total $48.2 million and include things like electrical, concrete, plumbing and site work. The council also will have a chance to look over a list of proposed changes made during the value engineering process.
The council on Monday also will be asked to approve $4.3 million to cover abatement and demolition costs. Money for the high school project and for reconstruction of Bennie Dover Jackson Middle School — a total of $168 million — was approved at a referendum in 2014 to complete the facilities portion of the state’s first all-magnet school district.
The project has faced a list of setbacks, major changes, funding shortfalls and delays. But two smaller phases of the project, an outdoor track rehabilitation and asbestos abatement, have been completed.
McNeil said the award of early bid packages are a critical part of the timeline for the project, since they allow for construction of an addition at the high school that needs to be done by the summer of 2021 in time to accommodate students that fall.
The addition will be crucial swing space when work gets underway in other portions of the school, which will remain occupied during the phased construction over the next several years. Students will be moved into the new addition when work starts on other sections of the school that are vacated.
A delay in approving these early contracts jeopardizes the entire construction schedule and there are 18 more bid packages waiting to go out later this year. Because of the speed at which changes are being made, some members of the school building committee hadn’t even seen the proposed changes before voting to approve them.
“I just want to make sure in all the cuts we do make, they’re not taking anything away from the students as far as programs or things that they need to have for their curriculum,” school building committee member Martha Bauduccio said. “That’s always my concern when we’re subtracting numbers.”
McNeil said program space was not considered in the cuts. “You cannot take away a classroom, a toilet or reduce the square footage of the building,” she said.
The district has been assured that none of the changes would impact programming at the school, though some of the proposed elements simply never made it into the final plans because of costs.
Kate McCoy, the school district’s executive director of strategic planning, voiced her displeasure during a recent school building committee meeting that some of the so-called “alternates” for the project were not part of the final design.
Those items included a stair tower for easier flow of students within the school and an enclosed connection between the STEM Magnet High School and the New London High School. Students travel between the two schools for classes.
“The school district has never felt these were alternates,” she said.
Bryan Doughty, a member of the subcommittee examining potential places to save money, said he personally argued against removal of any furniture, fixtures or related equipment, which he said are important aspects of running successful magnet schools.
Doughty said his hope is some portions of the project will be rebid and additional savings can be gained to go toward the alternates.
Plans for the school include updated classrooms and more room to accommodate a grades 6-12 visual and performing arts magnet school. Those students will be joined by high school students in STEM and International Baccalaureate programs.
Bennie Dover Jackson Middle School will house middle school students in the STEM and International Baccalaureate programs.
Plans for the Connecticut River rail bridge replacement go before Old Lyme commission
Mary Biekert
Old Lyme — Nearly six years after first announcing a proposal to replace the more than century-old railroad bridge spanning the Connecticut River between Old Lyme and Old Saybrook, the estimated $400 million project appears to be moving forward.
Contracted engineers for The National Railroad Passenger Corporation, or Amtrak, recently submitted documents outlining the project to Old Lyme's Harbor Management Commission for review. The step is required to ensure the project is consistent with the town’s Harbor Management Plan — drafted in 1999 but last revised and digitized in 2012 — before the railroad service can proceed with obtaining a “Structures, Dredging & Fill” license from the state Department of Energy and Environmental Protection, wrote a contracted project manager from Martinez Couch & Associates, or MCA, of Rocky Hill.
Obtaining the license from DEEP is one of many regulatory steps the rail service must take with both the state and federal governments — which include permits from the U.S. Coast Guard, the Army Corps of Engineers and the state's Historic Preservation Office — before it can proceed with building the new bridge.
Amtrak spokesperson Jason Abrams wrote by email Wednesday the rail service is in the process of obtaining those permits and according to Amtrak's website, the state’s Department of Transportation is a partner in the project. Abrams wrote that Amtrak and DOT are beginning to discuss how to coordinate the project and secure future funding options, as Amtrak has not yet lined up committed funding for the project, nor an exact timeline for when construction may begin.
Construction is expected to take about four years to complete, Abrams wrote Wednesday.
According to information published in October 2019 by the Northeast Corridor Commission, construction was estimated to begin in 2024.
Amtrak has completed 60% of its final designs for the project, which have been temporarily halted due to the COVID-19 pandemic, Abrams wrote. Design work is expected to pick up again in October and be complete by September 2021.
After reviewing submitted documents at a virtual meeting Tuesday evening, commission Chairman Steven Ross said while the commission was in favor of the concept for a bridge replacement, additional information was needed from Amtrak before the commission would sign a determination form with the railroad service. The commission unanimously voted to delay approval.
Namely, the commission still is missing information about the project’s timeline, its impacts to the river’s water quality and health, as well as any navigational changes that may take place during construction, Ross said by phone Wednesday. Ross, who is also vice chairman of the Planning Commission, said he believes the Harbor Management Commission is the only regulatory body in town that will review the project before Amtrak can proceed with the state.
Amtrak also recently went before Old Saybrook's Harbor Management Commission seeking the same permission, where according to minutes from an April 20 meeting there, the commission determined the project to be consistent with that town's Harbor Management Plan.
In documents submitted to the Old Lyme commission, MCA said the existing Connecticut River Bridge is more than 1,500 feet long and has been operational since 1907, is “nearing the end of its useful life” and is due to be replaced with an entirely new two-track bascule bridge. The new bridge is proposed to be built 52 feet south of the existing bridge.
A 2006 inspection of the current structure, which is also known as the “oldest moveable bridge between New Haven and Boston,” according to Amtrak’s website, found "particularly problematic" concerns with the mechanical operating system and the bascule span's rolling tread plates.
“The frequent opening and closing of the bridge — over 3,000 times per year — puts high demands on its aging components, increasing maintenance costs for Amtrak and reducing reliability for both railway and marine traffic,” Amtrak wrote on its website. “A century of operation in a marine environment, coupled with (the) age of the structure has taken its toll and speeds are restricted to 45 mph. Many key elements of the bridge have reached the end of their design life and require extensive maintenance to remain in operable condition.”
MCA stated the new structure will create a slightly wider channel for vessels to pass underneath — increasing its width from 148 feet to 150 feet — and slightly shift the channel 14.5 feet west toward the center of the river.
Rail service will not be interrupted while the new bridge is being constructed, MCA wrote, but the navigation channel under the bridge will be required to close for up to 10 days. The submitted project documents did not state which time of year the closure would take place, but according to Amtrak’s website, the bridge's channel must remain open, by law, from May through September for recreational boats to pass and closes only when trains approach.
The existing bridge is situated on nine piers and sits 18 feet above the river, while the new bridge is proposed to be built 24 feet above the water’s surface on a new “substructure and foundations,” which will require dredging.
Upon completion of the new bridge, the old one will be decommissioned. “It is anticipated that approach spans would be lifted off their piers with a crane and placed on a barge for removal,” project documents state. “The existing moveable span would likely be floated out on barges." The contractor then would use an "expansion demolition agent" to break the piers into more manageable parts, which would be removed with a barge-mounted crane. The process will not require the use of explosives, the documents state.
According to project documents, because "the project site lacks any convenient, direct connections to local roadways for construction equipment and materials to access the site," Amtrak is planning to install a temporary trestle bridge across the nearby Lieutenant River and is coordinating that element with the U.S. Coast Guard.
Because part of the proposed worksite also extends into regulated tidal wetlands and open waterfront on the Connecticut River, project documents state that "Best Management Practices" will be used to "the maximum extent practicable to minimize impacts to the Connecticut River, tidal wetlands, and aquatic resources, and to minimize turbidity form water-based construction operations."
Amtrak and the Federal Railroad Administration have prepared an environmental assessment of the project in accordance with the National Environmental Policy Act of 1969, MCA wrote. Based on the study, the FRA found the project would have “no significant impact” in 2016. The environmental assessment was available for public review and comment in 2014 at the Phoebe Griffin Noyes Library.
It is not yet clear whether Amtrak is required to complete an environmental assessment with the state under its Connecticut Environmental Protection Act and, if so, whether that has been completed. Amtrak did not immediately respond to requests inquiring about such requirements this week.
Despite COVID-19 impact, developer Winstanley still bullish on CT's bioscience, industrial markets
Michael C. Bingham
One of southern New England’s most successful developers and property managers is weathering the same unprecedented economic headwinds as the rest of the business world. But his company’s diversified commercial real estate portfolio affords him an uncommon perspective on what developing and managing major industrial, bioscience and retail projects may look like in the post-COVID “new normal.”
Adam Winstanley, co-principal of Winstanley Enterprises, sat down this week for a (virtual) “armchair conversation” with the Connecticut/western Massachusetts chapter of the Society of Industrial & Office Realtors (SIOR).
With his brother Carter, Adam Winstanley runs the Concord, Mass.-headquartered company his father David founded in 1973. Winstanley Enterprises LLC also has offices in New Haven and Hartford and employs about 60 workers in the three locations.
SIOR chapter president Art Ross, senior managing director of the industrial practice group for Newmark Knight Frank in Avon, introduced Winstanley as “one of the most active developer/investors in New England, owners and operators of several million square feet of space in most asset classes” of commercial real estate. (Specifically, that’s 27 buildings totaling some 13 million square feet.)
Winstanley’s portfolio is built primarily on a three-legged base of life sciences/medical, warehousing/logistics and retail. Besides shopping centers in Manchester, Chelmsford, Mass. and Florida, the retail portfolio includes 23 freestanding Stop & Shop supermarkets totaling 1.5 million square feet in Connecticut, Massachusetts and Rhode Island that Winstanley closed on in December.
That acquisition “has turned out to be a pretty good investment,” Winstanley said, as the supermarket sector has surged during the COVID pandemic selling essential supplies to homebound consumers. He added that Stop & Shop just recorded its all-time monthly sales high in March.
Retail gets wrecked
“We have made a business decision to extend the [payment] plank out to our retailers with the hopes that we can keep them as a viable tenant by giving them free rent [in March and April], and then half-rent for some period of time until they can start generating sales again,” Winstanley said. Grocery stores and pharmacies are the lone bright spots in retail for now. “It’s tough going because landlords have expenses and mortgages to pay, so not everybody has the ability to defer rent” for tenants, he added.
The picture is brighter in Winstanley’s industrial and life science/medical portfolio, which totals a combined 8.5 million square feet, mostly in Connecticut.
“As of now [May 13] we have not missed any rents in the industrial portfolio across the board,” Winstanley said. He acknowledges that, industry-wide, “Some tenants are trying to pile into bad news to beat up landlords” for deferrals or outright rent forgiveness.
Pending final city approvals, construction will begin this August on a new structure across the street from 100 College, bearing an address that doesn’t yet exist: 101 College Street.
While the $250 million project is still navigating through the city and state permitting process, Winstanley said the 500,000-square-foot 101 College Street “is approximately 65% pre-leased, we have arranged our financing on the project, and it’s slated to start construction in August,” he said.
Also scheduled to begin construction in August is a 500,000-square-foot $45 million warehouse project in Enfield with an anchor tenant already lined up, he added.
So what will smart money gravitate in the post-pandemic world?
“Industrial without a doubt is the star performing asset class,” said Winstanley. “As retail contracts I think you’re getting a proportionate growth in industrial.” He especially sees smaller industrial buildings close to population hubs being in very high demand in the near future.
Construction Starts Show Sharp Contraction in April
Total construction starts declined 25% from March to April to a seasonally adjusted annual rate of $572.2 billion as COVID-19 and economic recession hit the construction sector. In April, nonresidential building starts fell 37% from March, while residential dropped 25%. The decline in nonbuilding construction starts was more tepid, falling just 5% due to strong activity in streets and bridges.
On a year-to-date basis through four months of 2020, total construction starts were 8% lower than the same period in 2019. Nonresidential building starts were off 14%, while nonbuilding starts were down 15%. Residential starts, meanwhile, were up 2% on a year-to-date basis. Looking at starts from a slightly different perspective, total construction starts were 1% higher in the 12 months ending in April 2020 than they were for the same period ending in April 2019. Residential building starts were 2% higher, while nonbuilding starts were up 5% for the 12 months ending in April 2020. Nonresidential building starts, however, were down 3%. The Dodge Index tumbled to 121 (2000=100) in April from the 161 posted in March. This is the lowest reading of the Dodge Index since May 2014.
“The April starts data is definitely sobering, but also very much expected,” stated Richard Branch, Chief Economist for Dodge Data & Analytics. “The near shuttering of the economy during April had a significant negative effect on the construction industry, leading to delays in both ongoing projects as well as those about to break ground. Even though parts of the country are beginning to reopen, and some areas that had paused construction are now restarting, it will be a very long road back to normalcy for the construction industry. Continued fear of a resurgence in the virus will lead to a continued reduction in economic activity over the coming months, affecting construction projects across the country. The economic and construction recoveries will remain sluggish until a vaccine or viable treatment becomes available.”
Nonbuilding construction fell 5% in April to a seasonally adjusted annual rate of $156.6 billion. The utility/gas plant category dropped 52% during the month, but much of that decline was the result of very strong starts in March as several large projects broke ground. Environmental public works also fell in April, losing 3%. On the plus side, the miscellaneous nonbuilding category rose 9% and highway and bridge starts increased 26%. The largest nonbuilding projects to break ground in April were the $673 million I-10 project in San Bernardino CA, the $410 million US Route 101 project in Santa Barbara CA, and a $369 million road resurfacing project in Tallahassee FL.
Year-to-date through April, nonbuilding construction starts were 15% down versus the first four months of 2019. Starts in the highway and bridge category were up 5% through April but were down sharply for other nonbuilding categories. For the twelve months ending in April 2020, total nonbuilding starts were 5% higher when compared to the same period a year earlier. Starts in the utility/gas plant category were 60% higher, while environmental public works were down 5%. Street and bridge starts were 3% lower for the twelve months ending in April, while miscellaneous nonbuilding were down 14%.
Nonresidential building starts crashed 37% from March to April reaching a seasonally adjusted annual rate of $170.2 billion – the lowest monthly reading since early 2014. April’s decline was much sharper than any single month-to-month drop seen during the Great Recession. The severity of the decline was widespread. Commercial starts fell 47%, manufacturing starts dropped 56%, while institutional construction starts lost 26%. The largest nonresidential building project to start in April was the $950 million expansion of Portland International Airport. Also starting during the month were the $253 million Wildcreek High School/Procter Hug High School in Sparks NV and the $140 million Waddell & Reed headquarters tower in Kansas City MO.
As a result of the April data, nonresidential building starts were down 14% year-to-date. Commercial starts were down 18% year-to-date, while manufacturing starts were 34% lower and institutional starts dropped 6%. In the past twelve months, nonresidential building starts were down 3% from the previous twelve months. Commercial starts were down 1%, while institutional building starts were 3% lower, and manufacturing starts slid 5%.
Residential building starts moved 25% lower in April to a seasonally adjusted annual rate of $245.4 billion. Over the month, single family starts dropped 21%, while multifamily starts lost 36%.
The largest multifamily structure to break ground during April was the $217 million Hanover Square & Bayou Apartments in Houston TX. Also starting during the month were the $140 million Modera New Rochelle Mixed Use project in New Rochelle NY and the $115 million Miami Urban Village Apartments in Homestead FL.
Through the first four months of 2020, residential construction starts were up 2% versus the same period of 2019. Single family starts were 8% higher, while multifamily starts were down 12% through four months. For the twelve months ending in April, total residential starts were 2% higher than a year earlier. Single family starts were up 4%, while multifamily building starts were down 2%.
“This is a major addition to the downtown revitalization that we have been working toward, parcel by parcel,” Mayor Ellen Zoppo-Sassu said in a press release. “We like the look of it, and the presence it will have on that gateway.”
Senior Living Advisors is the company at the head of this project that plans on erecting a five-story building with 60 units, 14 of which will be dedicated to specialized memory care all will feature the company’s proprietary “KindCare” approach.
“The KindCare community is an innovative model that features rates that are 30 percent less than most assisted living communities with cutting edge technology to keep its residents safe, well and happy,” Senior Living Advisors C.E.O. Mark De Pecol said. “Our design includes features such as Remote Visitation, Telemedicine, and Ultraviolet air handlers that eliminate 99% of viruses and bacteria in the airspace. A wellness center, restaurant, bistro, media room, walking gardens and many social activities all contribute to the residents’ well-being. A staff of 50-75 employees are trained in elderly care and the protocols to sanitize prior to entering the resident area for work.”
Councilman Peter Kelley said he was very pleased to see development on a space that has been empty for 10 years and Councilwoman Mary Fortier said she is excited by the new jobs the project will bring to Bristol.
“With the emphasis that the Board of Education is putting on a healthcare pathway for high school students, as well as the work of Tunxis Community College and Bristol Adult Education, we are going to be able to supply a well-trained workforce,” Fortier said.
Construction on the new building is slated to begin in September.
$108 million New London High School project poised to start this month
Greg Smith
New London — Project and construction managers overseeing the $108 million reconstruction of New London High School are pushing for a May start date for major construction work.
And while bids on the project came in at more than $4 million over budget, closer scrutiny and revisions to the plans over the past several weeks have nearly closed the budget gap. Diana McNeil, project manager for Capitol Region Education Council, said the value engineering work is still ongoing and some numbers remain fluid, but the construction manager for the project, Newfield + Downes, has "no other choice" but to bring the project within budget.
The state, which is reimbursing the city 80% of the costs for much of the project, will not consider any reimbursement to the city for items outside the $108 million budget, McNeil said.
Tom DiMauro, project executive for Newfield + Downes, said last week during a meeting of the School Building and Maintenance Committee, that changes in the scope of work have reduced costs by an estimated $3.8 million, though an estimated $708,890 of those cuts are still pending approval.
A subcommittee that includes city and school district representatives have spent the past several weeks examining more than a hundred line items to find cost reductions. Materials were changed, costs of fixtures revised, allowances for contractors lowered and numerous individual line items that included labor costs were scrutinized, McNeil said, in order to fit into the budget.
Newfield + Downes now awaits approval from the City Council to award contracts to eight trade contractors involved in the early construction phase. The contracts would total $48.2 million and include things like electrical, concrete, plumbing and site work. The council also will have a chance to look over a list of proposed changes made during the value engineering process.
The council on Monday also will be asked to approve $4.3 million to cover abatement and demolition costs. Money for the high school project and for reconstruction of Bennie Dover Jackson Middle School — a total of $168 million — was approved at a referendum in 2014 to complete the facilities portion of the state’s first all-magnet school district.
The project has faced a list of setbacks, major changes, funding shortfalls and delays. But two smaller phases of the project, an outdoor track rehabilitation and asbestos abatement, have been completed.
McNeil said the award of early bid packages are a critical part of the timeline for the project, since they allow for construction of an addition at the high school that needs to be done by the summer of 2021 in time to accommodate students that fall.
The addition will be crucial swing space when work gets underway in other portions of the school, which will remain occupied during the phased construction over the next several years. Students will be moved into the new addition when work starts on other sections of the school that are vacated.
A delay in approving these early contracts jeopardizes the entire construction schedule and there are 18 more bid packages waiting to go out later this year. Because of the speed at which changes are being made, some members of the school building committee hadn’t even seen the proposed changes before voting to approve them.
“I just want to make sure in all the cuts we do make, they’re not taking anything away from the students as far as programs or things that they need to have for their curriculum,” school building committee member Martha Bauduccio said. “That’s always my concern when we’re subtracting numbers.”
McNeil said program space was not considered in the cuts. “You cannot take away a classroom, a toilet or reduce the square footage of the building,” she said.
The district has been assured that none of the changes would impact programming at the school, though some of the proposed elements simply never made it into the final plans because of costs.
Kate McCoy, the school district’s executive director of strategic planning, voiced her displeasure during a recent school building committee meeting that some of the so-called “alternates” for the project were not part of the final design.
Those items included a stair tower for easier flow of students within the school and an enclosed connection between the STEM Magnet High School and the New London High School. Students travel between the two schools for classes.
“The school district has never felt these were alternates,” she said.
Bryan Doughty, a member of the subcommittee examining potential places to save money, said he personally argued against removal of any furniture, fixtures or related equipment, which he said are important aspects of running successful magnet schools.
Doughty said his hope is some portions of the project will be rebid and additional savings can be gained to go toward the alternates.
Plans for the school include updated classrooms and more room to accommodate a grades 6-12 visual and performing arts magnet school. Those students will be joined by high school students in STEM and International Baccalaureate programs.
Bennie Dover Jackson Middle School will house middle school students in the STEM and International Baccalaureate programs.
Plans for the Connecticut River rail bridge replacement go before Old Lyme commission
Mary Biekert
Old Lyme — Nearly six years after first announcing a proposal to replace the more than century-old railroad bridge spanning the Connecticut River between Old Lyme and Old Saybrook, the estimated $400 million project appears to be moving forward.
Contracted engineers for The National Railroad Passenger Corporation, or Amtrak, recently submitted documents outlining the project to Old Lyme's Harbor Management Commission for review. The step is required to ensure the project is consistent with the town’s Harbor Management Plan — drafted in 1999 but last revised and digitized in 2012 — before the railroad service can proceed with obtaining a “Structures, Dredging & Fill” license from the state Department of Energy and Environmental Protection, wrote a contracted project manager from Martinez Couch & Associates, or MCA, of Rocky Hill.
Obtaining the license from DEEP is one of many regulatory steps the rail service must take with both the state and federal governments — which include permits from the U.S. Coast Guard, the Army Corps of Engineers and the state's Historic Preservation Office — before it can proceed with building the new bridge.
Amtrak spokesperson Jason Abrams wrote by email Wednesday the rail service is in the process of obtaining those permits and according to Amtrak's website, the state’s Department of Transportation is a partner in the project. Abrams wrote that Amtrak and DOT are beginning to discuss how to coordinate the project and secure future funding options, as Amtrak has not yet lined up committed funding for the project, nor an exact timeline for when construction may begin.
Construction is expected to take about four years to complete, Abrams wrote Wednesday.
According to information published in October 2019 by the Northeast Corridor Commission, construction was estimated to begin in 2024.
Amtrak has completed 60% of its final designs for the project, which have been temporarily halted due to the COVID-19 pandemic, Abrams wrote. Design work is expected to pick up again in October and be complete by September 2021.
After reviewing submitted documents at a virtual meeting Tuesday evening, commission Chairman Steven Ross said while the commission was in favor of the concept for a bridge replacement, additional information was needed from Amtrak before the commission would sign a determination form with the railroad service. The commission unanimously voted to delay approval.
Namely, the commission still is missing information about the project’s timeline, its impacts to the river’s water quality and health, as well as any navigational changes that may take place during construction, Ross said by phone Wednesday. Ross, who is also vice chairman of the Planning Commission, said he believes the Harbor Management Commission is the only regulatory body in town that will review the project before Amtrak can proceed with the state.
Amtrak also recently went before Old Saybrook's Harbor Management Commission seeking the same permission, where according to minutes from an April 20 meeting there, the commission determined the project to be consistent with that town's Harbor Management Plan.
In documents submitted to the Old Lyme commission, MCA said the existing Connecticut River Bridge is more than 1,500 feet long and has been operational since 1907, is “nearing the end of its useful life” and is due to be replaced with an entirely new two-track bascule bridge. The new bridge is proposed to be built 52 feet south of the existing bridge.
A 2006 inspection of the current structure, which is also known as the “oldest moveable bridge between New Haven and Boston,” according to Amtrak’s website, found "particularly problematic" concerns with the mechanical operating system and the bascule span's rolling tread plates.
“The frequent opening and closing of the bridge — over 3,000 times per year — puts high demands on its aging components, increasing maintenance costs for Amtrak and reducing reliability for both railway and marine traffic,” Amtrak wrote on its website. “A century of operation in a marine environment, coupled with (the) age of the structure has taken its toll and speeds are restricted to 45 mph. Many key elements of the bridge have reached the end of their design life and require extensive maintenance to remain in operable condition.”
MCA stated the new structure will create a slightly wider channel for vessels to pass underneath — increasing its width from 148 feet to 150 feet — and slightly shift the channel 14.5 feet west toward the center of the river.
Rail service will not be interrupted while the new bridge is being constructed, MCA wrote, but the navigation channel under the bridge will be required to close for up to 10 days. The submitted project documents did not state which time of year the closure would take place, but according to Amtrak’s website, the bridge's channel must remain open, by law, from May through September for recreational boats to pass and closes only when trains approach.
The existing bridge is situated on nine piers and sits 18 feet above the river, while the new bridge is proposed to be built 24 feet above the water’s surface on a new “substructure and foundations,” which will require dredging.
Upon completion of the new bridge, the old one will be decommissioned. “It is anticipated that approach spans would be lifted off their piers with a crane and placed on a barge for removal,” project documents state. “The existing moveable span would likely be floated out on barges." The contractor then would use an "expansion demolition agent" to break the piers into more manageable parts, which would be removed with a barge-mounted crane. The process will not require the use of explosives, the documents state.
According to project documents, because "the project site lacks any convenient, direct connections to local roadways for construction equipment and materials to access the site," Amtrak is planning to install a temporary trestle bridge across the nearby Lieutenant River and is coordinating that element with the U.S. Coast Guard.
Because part of the proposed worksite also extends into regulated tidal wetlands and open waterfront on the Connecticut River, project documents state that "Best Management Practices" will be used to "the maximum extent practicable to minimize impacts to the Connecticut River, tidal wetlands, and aquatic resources, and to minimize turbidity form water-based construction operations."
Amtrak and the Federal Railroad Administration have prepared an environmental assessment of the project in accordance with the National Environmental Policy Act of 1969, MCA wrote. Based on the study, the FRA found the project would have “no significant impact” in 2016. The environmental assessment was available for public review and comment in 2014 at the Phoebe Griffin Noyes Library.
It is not yet clear whether Amtrak is required to complete an environmental assessment with the state under its Connecticut Environmental Protection Act and, if so, whether that has been completed. Amtrak did not immediately respond to requests inquiring about such requirements this week.
Despite COVID-19 impact, developer Winstanley still bullish on CT's bioscience, industrial markets
Michael C. Bingham
One of southern New England’s most successful developers and property managers is weathering the same unprecedented economic headwinds as the rest of the business world. But his company’s diversified commercial real estate portfolio affords him an uncommon perspective on what developing and managing major industrial, bioscience and retail projects may look like in the post-COVID “new normal.”
Adam Winstanley, co-principal of Winstanley Enterprises, sat down this week for a (virtual) “armchair conversation” with the Connecticut/western Massachusetts chapter of the Society of Industrial & Office Realtors (SIOR).
With his brother Carter, Adam Winstanley runs the Concord, Mass.-headquartered company his father David founded in 1973. Winstanley Enterprises LLC also has offices in New Haven and Hartford and employs about 60 workers in the three locations.
SIOR chapter president Art Ross, senior managing director of the industrial practice group for Newmark Knight Frank in Avon, introduced Winstanley as “one of the most active developer/investors in New England, owners and operators of several million square feet of space in most asset classes” of commercial real estate. (Specifically, that’s 27 buildings totaling some 13 million square feet.)
Winstanley has become a transformative figure in New Haven, responsible for the $200 million 100 College Street bioscience development (informally known as “the Alexion Building” although its anchor tenant relocated its corporate headquarters to Boston almost two years ago). It represents the first phase of the city’s multi-year Downtown Crossing redevelopment project that aims to revitalize and reconnect the center-city commercial district with the medical district and Hill neighborhood.
Winstanley’s portfolio is built primarily on a three-legged base of life sciences/medical, warehousing/logistics and retail. Besides shopping centers in Manchester, Chelmsford, Mass. and Florida, the retail portfolio includes 23 freestanding Stop & Shop supermarkets totaling 1.5 million square feet in Connecticut, Massachusetts and Rhode Island that Winstanley closed on in December.
That acquisition “has turned out to be a pretty good investment,” Winstanley said, as the supermarket sector has surged during the COVID pandemic selling essential supplies to homebound consumers. He added that Stop & Shop just recorded its all-time monthly sales high in March.
Retail gets wrecked
“The approach on retail for us has been looking at each situation individually,” Winstanley explained. For example, Marshall’s, whose stores in the Northeast have been closed, is not paying rent in May, and paying half rent for June and July, he said, while Dick’s Sporting Goods is paying half rent in Florida for the time being. “Each tenant has approached the workout separately, trying to understand what their needs are,” Winstanley said.
“We have made a business decision to extend the [payment] plank out to our retailers with the hopes that we can keep them as a viable tenant by giving them free rent [in March and April], and then half-rent for some period of time until they can start generating sales again,” Winstanley said. Grocery stores and pharmacies are the lone bright spots in retail for now. “It’s tough going because landlords have expenses and mortgages to pay, so not everybody has the ability to defer rent” for tenants, he added.
The picture is brighter in Winstanley’s industrial and life science/medical portfolio, which totals a combined 8.5 million square feet, mostly in Connecticut.
“As of now [May 13] we have not missed any rents in the industrial portfolio across the board,” Winstanley said. He acknowledges that, industry-wide, “Some tenants are trying to pile into bad news to beat up landlords” for deferrals or outright rent forgiveness.
And in Winstanley’s bioscience/medical portfolio of about 1.1 million square feet, “We have not missed any rents, either,” he said.
Pending final city approvals, construction will begin this August on a new structure across the street from 100 College, bearing an address that doesn’t yet exist: 101 College Street.
While the $250 million project is still navigating through the city and state permitting process, Winstanley said the 500,000-square-foot 101 College Street “is approximately 65% pre-leased, we have arranged our financing on the project, and it’s slated to start construction in August,” he said.
Also scheduled to begin construction in August is a 500,000-square-foot $45 million warehouse project in Enfield with an anchor tenant already lined up, he added.
Big picture, “I think retail is going through a structural change,” Winstanley said. “Amazon is accelerating the demise of retail. Amazon is going to wipe out [grade] B and B-minus [retail] centers in this country, but every market will still have a top-performing retail asset. I don’t believe that people are just going to be hanging out at home buying things online.”
So what will smart money gravitate in the post-pandemic world?
“Industrial without a doubt is the star performing asset class,” said Winstanley. “As retail contracts I think you’re getting a proportionate growth in industrial.” He especially sees smaller industrial buildings close to population hubs being in very high demand in the near future.
Construction Starts Show Sharp Contraction in April
Total construction starts declined 25% from March to April to a seasonally adjusted annual rate of $572.2 billion as COVID-19 and economic recession hit the construction sector. In April, nonresidential building starts fell 37% from March, while residential dropped 25%. The decline in nonbuilding construction starts was more tepid, falling just 5% due to strong activity in streets and bridges.
On a year-to-date basis through four months of 2020, total construction starts were 8% lower than the same period in 2019. Nonresidential building starts were off 14%, while nonbuilding starts were down 15%. Residential starts, meanwhile, were up 2% on a year-to-date basis. Looking at starts from a slightly different perspective, total construction starts were 1% higher in the 12 months ending in April 2020 than they were for the same period ending in April 2019. Residential building starts were 2% higher, while nonbuilding starts were up 5% for the 12 months ending in April 2020. Nonresidential building starts, however, were down 3%. The Dodge Index tumbled to 121 (2000=100) in April from the 161 posted in March. This is the lowest reading of the Dodge Index since May 2014.
“The April starts data is definitely sobering, but also very much expected,” stated Richard Branch, Chief Economist for Dodge Data & Analytics. “The near shuttering of the economy during April had a significant negative effect on the construction industry, leading to delays in both ongoing projects as well as those about to break ground. Even though parts of the country are beginning to reopen, and some areas that had paused construction are now restarting, it will be a very long road back to normalcy for the construction industry. Continued fear of a resurgence in the virus will lead to a continued reduction in economic activity over the coming months, affecting construction projects across the country. The economic and construction recoveries will remain sluggish until a vaccine or viable treatment becomes available.”
Nonbuilding construction fell 5% in April to a seasonally adjusted annual rate of $156.6 billion. The utility/gas plant category dropped 52% during the month, but much of that decline was the result of very strong starts in March as several large projects broke ground. Environmental public works also fell in April, losing 3%. On the plus side, the miscellaneous nonbuilding category rose 9% and highway and bridge starts increased 26%. The largest nonbuilding projects to break ground in April were the $673 million I-10 project in San Bernardino CA, the $410 million US Route 101 project in Santa Barbara CA, and a $369 million road resurfacing project in Tallahassee FL.
Year-to-date through April, nonbuilding construction starts were 15% down versus the first four months of 2019. Starts in the highway and bridge category were up 5% through April but were down sharply for other nonbuilding categories. For the twelve months ending in April 2020, total nonbuilding starts were 5% higher when compared to the same period a year earlier. Starts in the utility/gas plant category were 60% higher, while environmental public works were down 5%. Street and bridge starts were 3% lower for the twelve months ending in April, while miscellaneous nonbuilding were down 14%.
Nonresidential building starts crashed 37% from March to April reaching a seasonally adjusted annual rate of $170.2 billion – the lowest monthly reading since early 2014. April’s decline was much sharper than any single month-to-month drop seen during the Great Recession. The severity of the decline was widespread. Commercial starts fell 47%, manufacturing starts dropped 56%, while institutional construction starts lost 26%. The largest nonresidential building project to start in April was the $950 million expansion of Portland International Airport. Also starting during the month were the $253 million Wildcreek High School/Procter Hug High School in Sparks NV and the $140 million Waddell & Reed headquarters tower in Kansas City MO.
As a result of the April data, nonresidential building starts were down 14% year-to-date. Commercial starts were down 18% year-to-date, while manufacturing starts were 34% lower and institutional starts dropped 6%. In the past twelve months, nonresidential building starts were down 3% from the previous twelve months. Commercial starts were down 1%, while institutional building starts were 3% lower, and manufacturing starts slid 5%.
Residential building starts moved 25% lower in April to a seasonally adjusted annual rate of $245.4 billion. Over the month, single family starts dropped 21%, while multifamily starts lost 36%.
The largest multifamily structure to break ground during April was the $217 million Hanover Square & Bayou Apartments in Houston TX. Also starting during the month were the $140 million Modera New Rochelle Mixed Use project in New Rochelle NY and the $115 million Miami Urban Village Apartments in Homestead FL.
Through the first four months of 2020, residential construction starts were up 2% versus the same period of 2019. Single family starts were 8% higher, while multifamily starts were down 12% through four months. For the twelve months ending in April, total residential starts were 2% higher than a year earlier. Single family starts were up 4%, while multifamily building starts were down 2%.
April 2020 Construction Starts
April 2020 Construction Starts
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