Waterbury Amazon deal vote likely

HANNA SNYDER GAMBINI 

WATERBURY – Aldermen will hold a hearing Monday and likely vote on a proposed purchase and sale agreement involving the city, Naugatuck and Bluewater Property Group, which is looking to buy 157 acres and eventually build an Amazon facility.

Officials from the city and Bluewater said this hearing and vote is not for the Amazon plant application, nor does it grant or supersede any of the numerous steps, permits and approvals required to eventually build the facility.

Rather, Monday’s vote, if favorable, will allow both parties to execute the purchase and sale agreement, officially giving Bluewater access to the property to begin the feasibility phase – to “see if the project is viable,” Waterbury Development Corp. Interim Director Thomas Hyde said.

The development group is looking to buy the rocky, wooded lot straddling both municipalities for $2.5 million.

The process to eventually build an Amazon site is lengthy, and will require various local, state and federal permits and approvals.

At the last Board of Aldermen meeting, Hyde urged support of the purchase, stating the land has sat vacant for more than 35 years. Plans for a casino, dog track and manufacturing facility “have all fallen through given the challenges posed by this site,” he said.

Local officials and potential developers could never find an ideal way to access the site from main roads, Hyde said, and going through nearby neighborhoods was not an option.

Naugatuck Mayor N. Warren “Pete” Hess and Waterbury Mayor Neil M. O’Leary found that going through Naugatuck Industrial Park gave better access to the site. The agreement includes acreage in Waterbury and Naugatuck, as well as easements on adjoining parcels.

The group’s prospective tenant, Amazon, was announced earlier this year, followed by months of negotiating on the purchase and sale agreement, which officials stressed is a very early step in the process.

As a gesture of good faith, Bluewater has been granted access to the property over the past few months to begin the due diligence phase, and “a lot of preliminary work has been done already,” Hyde said.

Bluewater Vice President Christina Bernardin, in a recent presentation to aldermen, said her group is aware the site “is very challenged. There are a lot of topography ranges,” and getting it ready for development will take time, feasibility studies and “quite significant amounts of funds.”

Hyde said the agreement states those costs, from conducting environmental, light and traffic studies to geological testing, permits and other related expenses, all fall on Bluewater.

“The city is not expending any money,” he said.

Bluewater will not take ownership of the site upon executing the agreement, but some money likely will be exchanged, Hyde said.

The project has to reach multiple “milestones” before Bluewater closes on the property, and the agreement includes a provision for the sellers to pull out of the deal even after closing if certain deadlines or conditions aren’t met.

The project will need traffic studies, showing the state Department of Transportation where traffic would be affected and remedies for any predicted issues.

The site includes wetlands that need to be studied and protected, Bernardin said, and the development likely will require construction of retaining walls.

Bernardin said despite the challenges and a long list of early tasks to accomplish, the proposed e-commerce fulfillment center is one of Amazon’s premier centers and warehouses, and with that comes multiple benefits to the community.

Bluewater’s project, if seen to fruition, is expected to produce millions of dollars in potential tax revenue for both municipalities, and up to 1,000 full-time jobs and several hundred construction and part-time positions.

Terms of the agreement include an inspection period of up to six months; up to 12 months for the construction feasibility, approval and fixed assessments phase before closing; and construction starting no later than 12 months after closing. Construction could then take up to two years.

Hyde said the time frames outlined in the agreement are “worst-case scenario,” and officials on both teams expect progress to move quickly.

“Our goal is to commence construction immediately after (closing,) we are incentivized to do so and know it will provide benefit to the community,” Bernardin said.

Hyde said, “There is no doubt this deal is in the best ]interest of the city of Waterbury, borough of Naugatuck and its perspective residents.”

Bernardin said Bluewater is “very engaged and we pride ourselves on developing partnerships in the community and responding to community needs.”

In addition to numerous approval processes and hearings, Hyde said both municipalities plan to host several public information sessions to discuss the project with residents.

Monday’s hearing is scheduled to begin at 6:30 p.m. in the Aldermanic Chambers of City Hall before the regular Board of Aldermen meeting.

Eversource eyes potential big payday to back out of Conn. wind farm

Alexander Soule, The Hour

Eversource Energy is soliciting buyers for its share of the long-planned Revolution Wind offshore energy project.

Revolution Wind is one of two major wind farms planned off the southern New England coast that would generate electricity for Connecticut. The other project is the Park City Wind farm in the works by Orange-based Avangrid. Park City Wind construction will be staged primarily out of Bridgeport.

Connecticut is counting on both projects to meet statutory goals it has set to cut carbon emissions by 2040, amid continuing uncertainty over Dominion's long-term plans for its two nuclear reactors at Millstone Power Station in Waterford that supply a quarter of New England's electricity.

Eversource CEO Joe Nolan said the decision to divest its share in Revolution Wind was simple economics — a federal auction in February for lease rights off Long Island and New Jersey brought in a $4.4 billion haul. That has Eversource thinking it can generate a bigger profit by selling its share of the project to offshore wind investors, rather than staying in the Revolution Wind partnership with Orsted.

"Folks have always asked us these questions, about are we going to monetize our wind assets," Nolan said Thursday during a conference call with investment analysts. "If somebody backs up a Brink's truck, obviously we will look at that."

Gov. Ned Lamont addressed the decision briefly on Thursday during a news conference in Hartford, saying he planned to speak with Nolan.

"Orsted is a billions-of-dollars-a-year company — they've got the resources to do this," Lamont said. "I liked the fact that we had a local partner in Eversource there. I think there's probably a little bit of a trade — they're looking at the value of their leases today compared to what they paid."

The state Department of Energy and Environmental Protection did not immediately respond to questions about potential regulatory overview that might accompany an Eversource divestment. A spokesperson with the Connecticut Public Utilities Regulatory Commission referred questions to DEEP.

Eversource spokesperson Mitch Gross said the company believes "strongly" in the potential of offshore wind farms as a source of clean energy for New England, as well as a jobs generator. He said the company has hired Goldman Sachs to help it weigh any offers, with the possibility it might stick with the project in the end.

"Proceeds from any potential sale would be used for major investments to support clean energy development and strengthen our grid to support widespread electrification," Gross stated via email. "We'll see what kind of interest and offers we get and will go from there."

In February, the federal Bureau of Ocean Management held its first auction of off-shore leases for the New York Bight and Avangrid was among the bidders. Through its Avangrid Renewables subsidiary, the company is one of the largest operators of solar and wind farms in the United States.

In addition to Revolution Wind off the Rhode Island coast, Orsted and Eversource have been pursuing South Fork Wind, east of Montauk Point to provide power to New York's Long Island Power Authority; and Sunrise Wind, off the New Jersey coast. The companies own 273 square miles of additional lease rights off the Massachusetts coast.

In a conference call two weeks ago, Orsted executives said they reached a "final investment decision" with Eversource on Revolution Wind.

Orsted gave no indication on the April call that Eversource might be considering alternatives for its own 50-50 stake in the project. But CEO Mads Nipper said his company is bracing for what he called "bottlenecks and inflationary pressures" for its U.S. projects that could pressure timelines to complete them. He said Orsted has already locked in the vast majority of steel purchases required to build the Northeast wind farms.

"We are not seeing the value creation we had aimed for," Nipper said in April. "We continue to look for levers to help improve the business case."

Gross stated the inflationary pressure played no part in Eversource's decision to consider a sale.

Orsted owns the Block Island Wind Farm that was the first offshore array in the United States, with five turbines supplying power to some 1,800 houses on the island, many of them summer getaway homes.

Sited slightly south of the midway point between Block Island and Martha's Vineyard, Revolution Wind would be far larger, supplying Connecticut with just over 300 megawatts of electricity during optimal wind conditions — sufficient for about 150,000 homes — with 400 megawatts heading to Rhode Island.

DEEP's goal is for battery farms on shore to provide a steady flow of power during periods of lighter wind. Batteries could also be tapped to lessen the sting of any spikes in the cost of electricity produced by power plants fueled by natural gas. Prices have surged this year during the Russia-Ukraine conflict.

Dan Haar contributed to this report. Includes prior reporting by Luther Turmelle.

What comes next in Bridgeport’s plan to sell Sikorsky Airport?

Mike Mavredakis

BRIDGEPORT — While the Sikorsky Memorial Airport Commission has recommended the Connecticut Airport Authority as the next owner of the Bridgeport-owned, Stratford based airport, there are still some steps to go before the CAA takes over.

Namely, the Bridgeport City Council and the Federal Aviation Administration still have to approve the transfer and $10 million sale price.

A contract still needs to be drawn up and it has to pass through at least one Bridgeport council committee before being returned to the full council for a final vote, Council President Aidee Nieves said. The exact committees needed are still being determined.

Daniel Roach, aide to Bridgeport Mayor Joe Ganim, estimated the earliest the City Council could vote on a sale would be the its second meeting in June, which is slotted for June 21. Nieves asked about the timeline during Thursday’s airport commission meeting, but no answer was given, she said. She estimated a vote could come sometime in July or August.

“We’re very anxious to get it completed as soon as possible because we are aware of potential opportunities that we don’t want to miss,” CAA Executive Director Kevin Dillon said. “The sooner we can take ownership of the property and start some of the improvements that are going to be necessary to take advantage of those opportunities, certainly the better.”

Once the deal is done, Dillon said the CAA will begin work on the necessary improvements, which could cost around $62 million. These include runway and taxiway resurfacing and construction of “at least” a temporary terminal, should the CAA move to introduce commercial passenger service to the airport once again.

“I am very happy that we have come to a vote to sell to the CAA,” Ganim said in a release Thursday. “The City has been working diligently over the past few years to bring back passenger service to the airport and this transfer of ownership is expected to expedite that process.”

Roach said the main issues in the deal are “pretty much agreed” to and only the minor details on the term sheet — the guidelines for $10 million sale proposed by the CAA in February — are still to be hammered out. This includes decisions on who conducts environmental assessments and any possible environmental cleanups that could be necessary, Nieves said.

The cost of the airport sale is also still to be finalized, since it’s subject to FAA approval. This will be determined through a city audit, Dillon said. The city can only be paid back for what it has lost on the airport, he said.

The FAA could not be reached for comment on how long this process will take.

The FAA also has to grant the CAA airport sponsorship, which would allow them to take on existing grant obligations and open up federal grant money to the CAA, Dillon said. The authority is assuming all current obligations from the city in the sale agreement, he said. He said he feels “very confident” in a “quick transition of sponsorship.”

“The FAA wants to make sure whatever party takes ownership of the airport has the capability to carry out the management of the airport and to meet all of the requirements,” Dillon said.

Another piece of the negotiations are the current workers at Sikorsky. The term sheet for the sale says that all current Bridgeport employees and the airport manager, Michelle Muoio, will be offered continued employment. Dillon reiterated this sentiment again at the commission meeting Thursday.

“We are committed that every employee that’s currently employed will continue to be offered employment, if they want to continue on with the airport and we certainly hope they do,” Dillon said.

He said they have to sit down with the labor unions to discuss the nature of employment transfer, whether that be through a third party operator or a city reimbursement. There are four labor unions that the city and CAA would need to work with, totaling 10 workers, according to Muoio.

“We’re confident that the workers will be taken care of,” Roach said.

Muoio said the airport staff feels “really good about the decision that was made by the commission” and she is “pretty confident” that this is going to a benefit to airport employees.

“We're just very grateful for CAA’s commitment for retaining employees,” Muoio said. “Everybody’s happy to be part of the airport and the next chapter of its life.”

While the deal still needs council approval, Roach said the mayor’s office does not anticipate that it will be voted down. In this case though, the city will “weigh our options,” he said.

Bridgeport factored $4 million from the sale price into its 2022-23 budget. In the case it is voted down, Roach said there is “plenty of room” in the budget to make up for it.

Nieves, who was once opposed to the airport sale and preferred that the city keep Sikorsky and lease it out, voted in favor of the CAA’s proposal on Thursday. She said she thought the CAA’s proposal — which was chosen by the commission over a last-minute pitch presented by the town of Stratford — was more economically viable. She highlighted the CAA’s development capabilities and said it would be able to transition the airport “a lot faster.”

“We don’t have to go through two municipalities to get things done,” she said. “It could streamline it and be a booster to both Bridgeport and Stratford.”

CT provides $50 million more to fully fund Norwalk High project

Emily Morgan

NORWALK — Two years after it was announced, the state legislature has approved an additional $50 million to fully fund the Norwalk High School project.

Pending Gov. Ned Lamont’s signature, the state budget brings the total funding to $239 million for the new high school construction. The project was originally approved for $189 million in September 2020. The revised funding maintained the 80 percent reimbursement rate for the project.

“Based on rising costs and working with the city, ($50 million) seemed like a good number in order to get the project done,” said state Sen. Bob Duff, D-Norwalk. “I’ve been excited about this project. I really appreciate Gov. Lamont and his support, Senate President Pro Tempore Martin Looney, Sen. Doug McCrory, and that of my colleagues and their support. They realize this is a critical project for our city and our kids.”

The estimated construction cost for the new high school is $225 million. With the additional funds, the city can move forward with the construction of the pool as part of the overall project. The state previously also approved a 50 percent reimbursement rate for the construction of a natatorium.

“Working with the city is great. We’re all moving in same direction,” Duff said. “We want to have the project done and have the best high school in entire state of Connecticut. It’s going to be state of art high school. It was always designed to be that way and that’s what we’re going to get.”

In a joint statement, Mayor Harry Rilling and Superintendent of Schools Alexandra Estrella applauded Duff for his “remarkable efforts” to secure the additional funding as well as his and Lamont’s “tireless efforts and continued commitment” to the city.

“Sen. Duff continues to deliver and be a real champion for all Norwalk residents, especially our youth,” the statement said. “Not only does securing these funds save our residents money, but it invests in the future of our community by making sure our students have access to a 21st century world-class education.”

Moving forward with the recommendation to build the new school on the existing football field, the project is now in the schematic design phase. That process is expected to be finished by early July, according to Dan Phillips, the project manager with Construction Solutions Group.

Phillips told the Land Use and Building Management committee last week that his team also had meetings set up with multiple groups working in the high school to discuss science and general classrooms, special education spaces, administration, career and counseling, media, visual and performing arts, and music.

There are also ongoing meetings with Athletic Director Doug Marchetti and Norwalk Recreation and Parks to discuss the new athletic facilities to replace the existing fields and courts being displaced.

Jim Giuliano, president of Construction Solutions Group, and Alan Lo, Norwalk Building and Facilities Manager, plan to present more details on the building’s design, including its interior features, to the Land Use and Building Management committee at their next meeting on June 1.

Developer to break ground on Granby’s largest-ever, $50M apartment development

Andrew Larson

There will be a groundbreaking celebration for Station 280, a new luxury apartment rental community just north of downtown Granby, at 8:30 a.m. Saturday.

Burkentine Builders, a Hanover, Pennsylvania-based real estate developer, received approvals to build 235 garden-style apartments at 280 Salmon Brook St. (Route 10), with one-, two- and three-bedroom units that feature stainless steel appliances and granite countertops. The project is expected to cost about $50 million.

The architecture is designed to complement New England's colonial heritage and features an outdoor pool, club house, fitness center, fire pit seating, a dog park and community bike racks.

"We expect that Station 280 will be well-received and add to our signature Route 10/202 corridor promoted by the ongoing merger of the Granby and Simsbury chambers," said Bob Marx, president of the Granby Chamber of Commerce.

Station 280 will be Granby’s largest-ever apartment development. The town has recently become an apartment-development hotspot, with nearly 400 rental units that have either come online, or are in the planning pipeline.