CT Construction Digest Thursday February 24, 2022
Construction faces over half-a-million-worker shortage
Construction needs more than half a million workers above its current pace of hiring in order to meet demand in 2022, according to an analysis released Wednesday by Associated Builders and Contractors. Predictive models from ABC indicate the industry needs 650,000 additional workers.
For every $1 billion in additional construction spending, construction gains 3,900 jobs, ABC found. As massive infrastructure spending enters the pipeline, the industry will have a lot of hardhats to fill.
Anirban Basu, chief economist for ABC, described the workforce shortage as the "most acute challenge" the industry faces, even in the face of sluggish spending growth.
"After accounting for inflation, construction spending has likely fallen over the past 12 months," Basu said in a release. "As outlays from the infrastructure bill increase, construction spending will expand, exacerbating the chasm between supply and demand for labor."
An estimated 1.2 million construction workers will leave for other industries in 2022, ABC found, but an anticipated 1.3 million will offset that departure — leaving other industries for construction. Nevertheless, the age of the workforce raises concerns, as fewer young workers join and stay on jobsites, and veterans of the industry retire.
The number of workers ages 25-54 dropped 8% over the last decade, while the number of older workers has increased proportionally.
"According to the Centers for Disease Control and Prevention, the industry's average age of retirement is 61, and more than one in five construction workers are currently older than 55," Basu said.
The number of entry-level laborers has increased 72.8% since 2011, Basu said, while the total number of workers has grown by less than 25%.
"The roughly 650,000 workers needed must quickly acquire specialized skills," Basu said. "With many industries outside of construction also competing for increasingly scarce labor, the industry must take drastic steps to ensure future workforce demands are met."
ABC CEO Michael Bellaman emphasized how construction workers will be essential to fulfill the projects associated with the $1.2 trillion Infrastructure Investment and Jobs Act. He railed against regulations attached by the Biden administration.
Some of those regulations include President Joe Biden’s recent executive order mandating the use of project labor agreements on federally funded construction projects over $35 million.
"More regulations and less worker freedom make it harder to fill these jobs," Bellaman said in a statement.
Correction: The headline of this story been updated to reflect that the industry needs half a million new workers this year.
Shelton land buy paves way for Mas property access
SHELTON — After decades on the drawing board, construction of Constitution Boulevard is only weeks away from getting underway, according to Mayor Mark Lauretti.
The Board of Aldermen, at its meeting Tuesday, approved the city’s purchase of 56 Blacks Hill Road for $590,000, with the cost being covered through use of American Rescue Plan funds.
“This gets us one step closer to an April 15 construction date for the beginning of Constitution Boulevard,” Lauretti said.
Lauretti has stated that he expects the cost to be some $5 million for the road work, which would allow for access into the 70-acre, city-owned Mas property.
Earlier this year, the city agreed to sell 25 acres of the city-owned Mas property to Fairfield-based RC Bigelow Inc. — known worldwide as Bigelow Tea. Lauretti has stated he remains in negotiations with other “good sized” manufacturers interested, and more deals could be struck soon.
According to the mayor, state leadership has agreed to cover $5 million.
Shelton state Rep. Jason Perillo helped 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 latest move comes as the city awaits a decision from the Planning and Zoning Commission on its application for a zone change on the 70-acre piece of property.
Plans on the city website show an extended roadway with seven separate lots, one of which is 10.6 acres of designated open space. In all, there is a 276,250-square-foot building, two 105,000-square-foot buildings, and two 34,250-square-foot buildings, along with related parking for each structure.
The 70-acre parcel — known as the Mas property — sits near Bridgeport Avenue, and the roadway plans include extending Constitution Boulevard to reach Shelton Avenue/Route 108. Lauretti stated that a zone change would be needed, requiring plans to go before the Planning and Zoning Commission at some point.
The Mas property is now vacant. It is mostly wooded with considerable stone ledges and several ponds, including one about 600 feet long and up to 300 feet wide, and lies between Bridgeport Avenue, 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.
New Canaan Library construction going ‘incredibly well’ as $1 million in steel delivered to site
NEW CANAAN — A total of $1 million in steel was delivered on Tuesday for the new library project as sections of the $39.5 million structure begin to rise adjacent to the old library between Main Street and South Avenue.
Concrete brick walls have been built for the future elevator shaft as the building makes major strides for a March 2023 opening, according to Executive Director Lisa Oldham.
“Getting the steel - it’s really a big deal,” Oldham said Wednesday. The construction project, with two floors and a mezzanine, “is going phenomenally,” as the organization works to “deliver on the promises of a fabulous library.” The steel will create the frame of the 42,000 square-foot building, which will have nine meeting rooms, an independent “cave” for tweens and a children’s library triple the size of the current one with a garden wrapping around the southwest corner.
The new library project was approved by the Planning and Zoning Commission in July 2021, received building permits from the town in October and started construction on Nov. 12. Plans for rebuilding sections of the original 1913 building were approved in December. The building, which had major renovations in 1936 and 1979, will remain in place until the new building is finished.
Per Oldham, the library staff is already hard at work brainstorming programs for next spring that will be held in the new auditorium that will accommodate up to 300 people. The large room will have the ability to be divided into a 200-seat auditorium and a 100-seat community room, directly adjacent to a demo kitchen.
Oldham expects the facility will be “flexible,” and could possibly be reconfigured nearly daily “to meet all the demand that the community has for the space.”
There will also be an “airy,” quiet space where people conducting business remotely can work, a habit that has become even more popular during the pandemic, Oldham said. In the new facility, the quiet work space will be next to a business area with copying and faxing machines.
The meeting rooms include one 35-person conference room, four 4-person rooms, two 8-person meeting rooms and one 15-person meeting room.
The director said that there have been a few surprises during the the early construction of the project. Some ground had to be removed for a residential property that the library purchased for the project because pollution, confined to the property, was created by out-of-date practices, such as “people changing their oil,” Oldham said. Clean dirt from other areas of the construction were moved to near the Lakeside Cemetery.
Once the steel frame is constructed and erected, concrete slabs will be poured. Once the concrete is poured and dried, “then we can get a roof,” the director said.
Global supply-chain challenges have not currently presented problems that Turner Construction, the lead firm on the project, “was not able to work around” to prevent delays, Oldham said.
There were challenges along the way, as the Planning and Zoning Commission discussed the project over eight meetings, often focusing on future of the 1913 building. Preservationists are still fighting to keep the walls remaining from 1913 library in situ.
The library is privately owned, but receives operating expenses from the town and the municipality is contributing $10 million to the project and helping with a low-interest credit line. The majority of the funding is coming from contributions, such $3 million from the Barlett Family.
The “project is going so incredibly well,” and “it is all exciting,” Oldham said.
New Haven apartment plan debated over height, affordability
Mary E. O’Leary
NEW HAVEN — The options were clear: a tall tower with 136 apartments and some lower-cost rental units; 44 apartments in a smaller building with no affordable housing; or zero development.
With more than 40 people on a Zoom call to discuss the future of 78 Olive St., more spoke in favor than opposing the 14-story apartment complex that also would being infrastructure gains.
What has to happen first, however, is a proposed zone change from BA to BD-1, with the particulars of a site plan submitted by the owners, PMC Property Group, only kicking in if the Board of Alders approves that change.
The 2.48-acre location is bound by Olive, Chapel and Court streets and the railroad tracks that run behind the State Street Rail Station. The site plan refers to a smaller carveout of that property.
Some during the two-hour discussion asked that the city get professionals at the Yale School of Architecture to weigh in on a regular basis to advise it on growth and to avoid spot zoning.
There also was debate about the precedent of a tall building on that side of State Street, and criticism of the architecture of the nearly complete housing along Olive Street as well the proposed PMC tower.
The community meeting of mainly Wooster Square residents was organized by its alder, Eli Sabin, D-7, who said he is working with other downtown Alders Ellen Cupo, D-8, Alex Guzhnay, D-1, and Carmen Rodriguez, D-6.
Sabin said the proposals may not be what everyone would like to see, but he feels PMC has “moved a pretty long way” from its original plan thanks to the noise residents made at the first community meeting Jan. 31.
As the city heads toward a March 1 public hearing set by the Legislative Committee of the Board of Alders, Sabin said he continues to have “a very open mind about what is on the table here and about what our options are.”
He said PMC characterized its compromise as “unfair,” but he disagreed with that.
Attorney Chris McKeon, who represents PMC, was not at the hearing and had no comment except to say they put a lot of time into updating the proposal.
Sabin told the group that while the 44-unit smaller building was discussed in his talks with PMC, if the zone change does not happen, it is more likely PMC will not move ahead with any development plan there.
If it does decide to pursue the smaller development, it may be able to build market-rate apartments without complying with the new Inclusionary Zoning law that mandates some affordable units, Sabin said.
Main proposal by PMC Property Group
The proposed apartment building would be 14 stories, about twice as tall as apartments being built nearby, something that unites the opposition.
The ground floor would have 68 spaces for vehicles, as well as accommodation for bicycles. Space would be leased at 270 State St. for an additional 29 cars.
There would be 11 levels of apartments with 12 units each. The 13th level would have 4 units and common amenity space. The 14th level roof deck also would contain common amenity space.
The developers said they would redesign the facade on Chapel Street with more glass and a mural to make it more inviting, in response to criticism.
PMC would deed restrict (for 25 years) 10 percent of the units — 14 apartments — with half for renters earning less than 60 percent of area median income and half for those making less than 80 percent of AMI. This would put them in compliance with the Inclusionary Zoning rules.
PMC refused to lower the height of the building unless it could drop the affordable housing apartments, Sabin said.
No tax abatement would be offered by the city with the building generating some $920,000 a year in taxes; building permit fees would be $1,785,000. It estimates the state will get $3.2 million in sales tax.
Response to traffic concerns
The proposed site plan calls for a number of updates on traffic and pedestrian safety, a major concern voiced at previous meetings.
It plans to provide ADA-compliant ramps at the Chapel and Union and Artisan and Court street intersections, as well as sidewalk improvements in front of its property.
PMC will fund a traffic study to determine whether a lane drop is possible on Chapel Street between State and Olive streets to allow for bike lanes in both directions.
It is offering a $150,000 donation toward local improvements, such as pedestrian signal heads at Union and Chapel streets and bike lanes on both sides of Chapel between State and Olive streets.
It could also be used for possible expansion of the sidewalk on the north side of Chapel and/or the planting of new trees on one or both sides to create a buffer between pedestrians and traffic.
Also on the list is installation of pedestrian-scale lighting on Chapel Street between Olive and Union streets and funding for a lighting project for the Court Street and Chapel Street bridges spearheaded by the Town Green Special Services District.
PMC also promised to cooperate with government officials in future plans to provide access to the State Street Rail Station from its property.
Discussion covers a range of opinions
Patrick Holland’s comments were representative of a number of residents who want the parcel rezoned. The land also is home to the Strouse-Adler building owned by PMC, which has 146 apartments and 148 parking spaces.
Holland said rents are skyrocketing in the region and the city is not going to solve that by blocking development.
“We are only going to solve it if we build more housing,” Holland said. He added that 10 percent deed-restricted affordable housing “is very significant.” Building next to a train station advances transit-oriented development.
Also, he said he lives next to the large Corsair development on State Street where commerce has blossomed, something he predicted would happen in Wooster Square.
Anstress Farwell, head of the Urban Design League, said a lot of the new developments are turning out low-quality structures that all look alike and miss the mark by not building the two- and three-bedrooms needed by families.
“We are not creating a stable neighborhood where people come to stay,” Farwell said. She also said 60 percent and 80 percent AMI does not serve the low-income families who need the subsidies.
Sabin also commented on concerns the alders would be setting a precedent in the area if they were to approve the zone change.
He said alders should not approve zone changes for the seven parcels surrounding 78 Olive St. as recommended by the City Plan Commission, as each should be considered individually.
Farwell said this “comes so close to spot zoning,” and didn’t see how it could be kept off the table for others once it’s granted for one.
Eli Pales said the environmental impacts of traveling to and from work daily are huge and building next to a transit center is vital. He also said having some affordable units is better than not having any.
Ian Miller, Lisa Sawin and Sam Greenberg all want to see the new building go up.
“We are so under-housed as a country, as a state and as a city. ... We need so much more housing to fit all the humans into places they want to live,” Sawin said.
Jeff Wolcheski, a member of the carpenters union, which represents almost 175 people in the city, was in favor of the construction with union wages.
Arthur Nacht said he would favor the 44-unit possibility as a 14-story building would overwhelm Chapel Street.
Nacht brought up the idea of getting Yale experts to weigh in on the city’s direction in land use, versus “a bunch of laymen, sort of feeling their way in the dark about what to do about a project like this.”
The full Board of Alders likely will vote on the proposed zone change April 4 with a hearing and vote on the site plan after that by the City Plan Commission.
NEW BRITAIN – The Board of Education terminated a contract with Construction Advocacy Professionals, LLC during a special meeting in the wake of recent controversy surrounding the company.
In a letter to the board, Chief Financial Officer Kevin Kane recommended they terminate its Owner’s Representative Agreement with Construction Advocacy Professionals (CAP) for the ADA project. The ADA project was set to correct building code violations at New Britain High School to make the facility more accessible to people with disabilities.
After a near hour long executive session, the BOE returned to the regular meeting and voted for the first agenda item, which was to hire a new director of facilities. The second item on the agenda discussed was the contract with CAP, which the board voted to terminate. There were no opposing votes or abstentions to the vote.
“I think we’re all familiar that a lot of things have been happening in the state since November, the state’s school construction with the firm we have, as it's been mentioned in many articles,” Kane said at the meeting. “Right now we have a clause in the contract that allows us to terminate without any cause. With everything going on, it does make sense.”
Former deputy secretary of the Office of Policy and Management for the state Konstantinos “Kosta” Diamantis is being investigated by the FBI for the state-financed reconstruction of the State Pier in New London and school construction projects, including in New Britain. Diamantis, who was also the director of the Office of School Construction Grants and Review, has been subpoenaed by a federal grand jury for documents related to a broad range of construction projects. The Connecticut Division of Criminal Justice has placed Anastasia Diamantis, the daughter of Kosta Diamantis, on administrative leave following an investigation into her hiring at the division, according to the CT Mirror. A federal grand jury is currently investigating Anastasia Diamantis, who was hired by a construction management firm that received contracts in a process overseen by her father.
Board of Education President Gayle Sanders-Connolly told the Herald in a previous interview the school district agreed to move forward with the company because it needed assistance and it was recommended by Diamantis to work with CAP, the same company his daughter worked for.
The school board considered hiring the company again for its next project, which was to upgrade the high school to meet federal Americans with Disabilities Act codes and standards. Instead, the school board agreed to go out to bid for the services. Later, it instead approved a preliminary bid from Newfield Construction Group for the construction, but retained CAP as an “owner’s rep,” or project consultant.
Kane said “in light of what has been reported both statewide and local,” the board should terminate the agreement.
According to Section 16-A of the agreement, the school board “may terminate this agreement at any time and for any or no reason upon seven days prior written notice to CAP.” The termination of the contract severs all agreements the school has with the company.
Now that the school board voted to terminate the contract, they have the right to request from CAP copies of all records in the company’s possession related to the project. Kane said any outstanding paperwork or interaction with the company would be to pay outstanding balances of work they have already done.
Data center agreement proposed for land south of I-95 in Groton
Groton — A proposed data center agreement for land south of Interstate 95 between Hazelnut Hill and Flanders roads, which has been met with opposition and questions, will be presented to the public Thursday.
NE Edge LLC, under manager Thomas Quinn, is requesting a data center host municipality fee agreement with the town, which is the first step in the process of developing data centers.
According to the agreement, NE Edge seeks to develop one or more data centers on contiguous properties, which are south of I-95 and north of the Groton Open Space Association's Sheep Farm and Sheep Farm South properties. The properties listed in the agreement include about 56 acres at 327 Hazelnut Hill Road, about 92 acres at 351 Flanders Road, and about 1 acre at 449 Hazelnut Hill Road, as well as several properties with the address 0 Flanders Road that overall comprise about 19 acres.
A host municipality fee agreement sets conditions to potentially allow data centers "on particular properties under certain conditions and sets the revenue that would be provided to the Town, since the State has made data centers tax exempt," Town Manager John Burt said. "These agreements are required before anything could be built."
Any proposed building project then would have to go through all standard requirements, including through the Planning and Zoning and Inland Wetlands Commissions, Burt said.
The General Assembly passed legislation last year to provide tax incentives for data centers, defined as facilities to house computer servers "to centralize the storage, management, and dissemination of data and information pertaining to a particular business or classification or body of knowledge." To be eligible, the developer must make at least a $200 million investment, or a $50 million investment if the data center is located in an enterprise or opportunity zone.
Quinn said at a Feb. 8 meeting that his team was instrumental in getting the data center legislation passed in Hartford.
The act provides tax exemptions for 20- or 30-year periods "based on the size and location of the data center investment" and requires state approvals and for the company to sign a host municipality fee agreement before the center facility can be built, according to a town document.
Burt said the town is considering the agreement because having a data center can help spur ancillary businesses and hopefully continue putting the town on the radar as being a tech hub, which has started with the town's blue tech economy. He also said the proposed agreement allows the Town Council to put conditions on the industrial zoned properties, whereas other industrial uses don't afford the same opportunity.
But before any decisions are made, he said, the Town Council wants to hear from constituents.
"I've done extensive research on the project and I think as a whole it's great for Groton," said Town Mayor Juan Melendez Jr., who is one of nine members of the Town Council. "However, we are being careful to make sure concerns from the community are answered before the council votes on approving the agreement. On the 24th we have a presentation from the developer and we encourage residents to come out and give us their thoughts."
The Town Council was slated to do its first review of the proposed host municipality fee agreement at its Committee of the Whole meeting on Tuesday. The council had not yet begun its review as of print deadline and was discussing other matters on the agenda.
Burt said the council is expected to continue to discuss at its March 1 meeting the agreement and digest the information from the public meeting; there will also be an opportunity for public comment during the March 1 meeting.
He said the council may vote on March 8, but is taking it step by step and will see where to go from its discussions on March 1.
Groton Conservation Advocates Co-Chairs Elizabeth Raisbeck and Eugenia Villagra wrote a letter to the Town Council in which they raised questions and concerns about the proposal, including calling for an annual economic analysis and for an environmental impact study to assess the data center's potential impact on streams and wetlands and the impact of noise and air pollution.
They requested that the council postpone a vote until the town has more information about the project, its leader and site-specific plans. They said the proposal should first go through Planning and Zoning and Inland Wetlands, and if permits are received, then to the Town Council.
Melendez said the council still is gathering information and input and expects to learn a lot at this week's presentation. "After that we'll be in a better position to evaluate how to move forward," he said.
When asked at the Town Council's Feb. 8 Committee of the Whole meeting about environmental concerns that people have raised, Quinn said it would be an electrically run facility with efficient cooling and efficient back-up diesel generators. Burt said language related to environmental protection and noise was added to the proposed agreement.
Burt said the water resource district touches the corner of the land, but not where the development would be, though no specific plan has been filed yet.
The agreement calls for NE Edge to donate at least 50 acres from the properties to the town, "with at least one accessway to and from Hazelnut Hill Road. A portion of the donated land shall directly abut the conservation land to the south" of the properties.
The developer plans to pursue the purchase of a 17-acre town-owned parcel along Flanders Road, to the east of 351 Flanders Road, though it is not being considered as part of the agreement, Burt said.
Burt said specifics, such as the number of data centers, size, specific location on the properties and value, are not yet available.
At the Feb. 8 meeting, Quinn said NE Edge would bring in a construction entity and an operating entity for the data center, but NE Edge would stay on as a joint venture partner throughout the project. The Groton Conservation Commission and the Groton Economic Development Commission will host the public presentation on the proposed agreement, followed by a period for questions or comments, at 5:30 p.m. Thursday at the Thrive 55+ Active Living Center, formerly called the Groton Senior Center, at 102 Newtown Road. People also can view the meeting via Zoom, with a link available on the town's website, or on Groton Municipal Television.
Other projects in the region
Burt said the proposed agreement for the properties south of I-95 is similar to a data center host municipality fee agreement with Gotspace Data Partners LLC the town approved last year for properties off Route 117. Quinn was a former Gotspace partner, according to the town.
At the Feb. 8 meeting, Quinn told the council that an investor "contracted to fund, partially funded, defaulted, and, when we called the default, attempted a hostile takeover." He said it took some time to "straighten out."
"We have straightened out," he said. "We have our whole team with us."
When asked for comment on Tuesday, Gotspace Data Partners Chief Operating Officer Mike Grella, who spent seven years at Amazon, said in an emailed statement that "Gotspace Data Partners is on a trajectory to become one of the leading developers for the Connecticut data center/high technology corridor."
He added that "Gotspace was ahead of the marketplace in seeing the potential for big data in Connecticut before the State passed one of the most aggressive tax incentive programs in the country and is well positioned to seize upon the momentum created by the proliferation of 5G, Internet of Things, Streaming, AI, and cloud computing. Partners and customers we speak with every day share our enthusiasm and are aligned with the Company's strategy to build out data infrastructure throughout Connecticut."
"I am fully supportive of the Gotspace's ownership and leadership team as well as the actions taken to preserve the Company's business interests," Grella said.
In 2019, Quinn was quoted by The Day as the CEO of Verde Group LLC in an article about the company's plans for a data center campus in Montville.
Joel Greene, the founder of the company, who died last summer, and Verde Group were subject to litigation related to the proposed data center, The Day reported.
A lawsuit, brought in June 2020 by Vineyard Meadows Investment and Bruno Blanchet and scheduled for trial in July, against Greene, Verde JG LLC and Verde Group LLC, accuses the defendants of breach of fiduciary duty, breach of contract, breach of duty of good faith and dealing, and unjust enrichment, among other counts. Blanchet was working on the data center project, the lawsuit said.
There also was litigation brought in September 2020 by All of Us at North LLC against Mohegan Hill Montville LLC, Kleeman Farms, LLC, Verde Group LLC and Joel and Donna Greene, according to court documents.
Quinn, who was not named in the litigation, could not immediately be reached to comment.
Burt said the town did a background check and its due diligence on Quinn and did not find any issues, but will continue its research.
Eversource eyes 2023 siting approval for CT-linked wind farm
Eversource Energy says it is moving full steam ahead on its offshore wind power projects, including turbine farms that are expected to one day feed into Connecticut’s power grid.
During a conference call with analysts to discuss the utility’s fourth-quarter and full-year 2021 earnings, Eversource CEO Joe Nolan said the company has made more progress in offshore wind in the last 13 months than in the previous three years.
Nolan cited the recent groundbreaking for the South Fork wind farm, which will connect to Long Island’s power grid. The site is expected to become operational in late 2023.
Revolution Wind, which is expected to channel renewable energy to Connecticut and Rhode Island, is “well into” the state and federal siting process, according to Nolan. Final siting approval is expected in the second half of 2023, and if that timeline is met, the project could be up and running sometime in 2025.
Nolan also highlighted what he described as an improving relationship between Eversource and its Connecticut customer base, pointing to the regulator-approved October settlement in which the company agreed to provide bill credits for electric customers as part of a penalty for its handling of Tropical Storm Isaias in 2020.
“Compared with a year ago, I believe we are in a much better place,” he said.
Eversource reported full-year 2021 earnings of $1.22 billion, or $3.54 per share, up slightly from $1.2 billion, or $3.55 per share, in the year before. Fourth-quarter earnings came in at $306.7 million, or 89 cents per share, up from $271.9 million, or 79 cents per share, in 2020.