Greenwich officials spar over new Central Middle School price during budget talks

Andy Blye

GREENWICH — The debate over spending priorities between members of Greenwich’s Board of Estimate and Taxation Wednesday devolved into some heated exchanges on the process and price tag for building a new Central Middle School.

The four-member BET Budget Committee is currently split on how much to spend on the new school; the question became divisive Tuesday morning after new design information was provided to the CMS Building Committee.

The architect on the project said a new school would need to be about 20,000 square feet larger than first estimated to accommodate the number of students the Board of Education wants to place there.

In light of the new information, the budget committee said it wants updated guidance and more dialogue with the BOE on the project. BET Chair Dan Ozizmir suggested running joint meetings between the BET and BOE to ensure the project gets done.

Wednesday was the second day of the Budget Committee’s “consolidation day” where the four members discussed potential adjustments to the $480.9 million budget proposal for Fiscal Year 2023-24. 

The committee will bring its revisions to the full BET, which will vote on April 4. The BET will also hold a public hearing on March 29 to gather input from residents. The Representative Town Meeting will vote on budget approval in May.

Wednesday, the committee outlined potential cuts for the police department, public works, road paving, library renovations and other projects around town.

The biggest point of discussion Wednesday was the construction of a new Central Middle School and its multi-million-dollar price tag, which is the largest capital project proposed in the coming fiscal year.

The committee agrees that a new school is needed, but is split on how much to spend building it. 

The Budget Committee projected spending $70 million for the new school last year, including $2.5 million for planning in FY23 and $67.5 million for construction in FY24. The $70 million price was set before the Board of Education created its requirements for the school, known as the educational specifications.

With the specifications in hand, the BOE then asked for $85.5 million and First Selectman Fred Camillo ultimately asked for $72.5 million when he presented his budget in January.

Democrats on the Budget Committee want to proceed with $72.5 million in funding, while Republicans want to stick with $67.5 million, but all four members agreed that they need new guidance from the school board in light of the expanded footprint projections.

Budget Committee Chair Leslie Tarkington said they had agreed to accelerate the CMS project at $70 million, but that the BOE is not cooperating now that the price projection has changed.

“There was an understanding between all of us that we, the BET, are going to accelerate this project, bypass feasibility, which we always require, and move towards a deal,” Tarkington said. “Accelerate it, move ahead, let's get it done fast, let's not follow our process. But I've learned my lesson.”

The BOE’s ed specs require enough space for 660 students. The BOE projected the school would be 115,000 square feet, but architect firm SLAM Collaborative told the CMS Building Committee on Tuesday that the school would need to be 135,000 or 140,000 square feet to accommodate that many students.

BET Chair Dan Ozizmir said they expected to be in contact with the BOE about the project, but that has not happened in the past year.

“We always knew when we accelerated this project…we needed to have a continuous two way dialogue (between the) BET and Board of Ed,” he said. “Ultimately, that dialogue certainly did not develop in a way I would have liked in terms of being two way.”

Ozizmir said that he expects the communication between the BET and BOE will improve before decision day on April 4.

Budget Committee member Nisha Arora, who has been raising price tag and building size concerns for months, said that withholding money now is the only way to get the school board back to the table.

“The only way we can help control this project, to go in the direction we need it, is the budget,” Arora said. “That's the only tool we have at our disposal. I would love to sit in a room with the Board of Ed and figure this out and hack it out, but they're not there.”

The CMS Building Committee said it expects to get a full cost estimate from its project partner, Turner Construction, in the next four to six weeks, ideally before the BET budget vote on April 4.

There are currently no funds set aside for renovating Old Greenwich School in FY24 because the town decided to prioritize spending on Central Middle School. The committee is projecting $24.5 million to renovate the aging school in FY25.

On Wednesday, Leslie Moriarty, head of the BET’s Democratic caucus, asked that the committee consider moving OGS spending up a year into FY24. She also asked that the committee increase the OGS budget and fund $1.1 million for planning and $35.9 million for construction.

“I am proposing that we fund both in the fiscal '24 budget so that we can more quickly address the needs of that building,” Moriarty said. “The continuing delay costs us money, costs us proper environments for our citizens, our students, our kids.”

Budget Committee chair Tarkington took issue with the late addition.

“This is getting to be ridiculous that the budget committee is redesigning the whole BOE budget,” Tarkington said.

Ozizmir reminded the committee that this budget, even without adding any OGS funding, is the highest capital spending in town history.

In addition to the extensive school discussions, the committee also talked about cutting money to replace parking meters on Greenwich Avenue, deferring roof repairs at the Nathaniel Witherell and cutting some maintenance at Griffith E. Harris Golf Course.

Tarkington also floated the idea of cutting $1 million out of the $10 million earmark to remediate the fields at Western Middle School, though nothing is finalized until April 4.

ThayerMahan cancels plan to redevelop Groton Heights School

Kimberly Drelich

Groton ― ThayerMahan, a Groton-based marine technology company, no longer plans to redevelop the Groton Heights School property, located in the city near the Bill Memorial Library and Fort Griswold, as its headquarters and research and development center.

The growing company, which is located at 120 Leonard Drive in Groton and has more than 100 employees, was looking for additional space and had planned to redevelop the town-owned Groton Heights property.

ThayerMahan Chairman and CEO Michael Connor told the town last week that it is free to offer the Groton Heights property to another party.

In a Feb. 21 letter to Town Manager John Burt, Connor cited three factors for the company’s decision: the environmental clean-up required for the property, an opportunity to buy the space ThayerMahan currently rents on Leonard Drive and expand as other tenants’ leases expire, and not having “the management bandwidth” to redevelop the Groton Heights property “while attending to the needs of our rapidly expanding business.”

A town and city committee had selected ThayerMahan as the preferred developer for the roughly 2-acre former elementary school property, located at 244 Monument St., which has been vacant since 2007. The town approved a letter of intent for the sale and redevelopment of the property in 2019. ThayerMahan said in 2021 that the company hit a lull during the pandemic, but was re-initiating contract negotiations with the town.

Connor wrote in his Feb. 21 letter that the environmental status of the property is unknown.

“We appreciate the many offers we had to provide financial assistance with the mitigation of environmental conditions, but we still feel that the potential liability could have exceeded the resources of our company,” he wrote.

Jon Reiner, the town’s planning and development director, said the Groton Heights School, like many older buildings, faces issues, such as lead, PCBs, asbestos and mold, and also has to be brought up to building and fire codes. As ThayerMahan was doing its due diligence on the property, the company realized the extent of the environmental remediation on the property was more than anyone originally thought.

The town received a brownfield grant from the state Department of Economic and Community Development for the property, but it was not enough to cover clean-up costs, Reiner said. The town looked into applying for another type of grant, but ThayerMahan decided not to move forward, which then prompted the town to ask what the company’s intent was for the property, he said. The town then received the letter from ThayerMahan.

Connor said in his letter that the company’s existing space on Leonard Drive “is ideally suited to the light industrial nature of our business, has room for expansion of ThayerMahan spaces as other tenants’ leases expire, has easy access for trucks, and has sufficient room outdoors to test our equipment prior to preparing for operations at sea.”

Connor added that he lives and works in Groton.

“I believe that the best thing for ThayerMahan and the Town of Groton is for ThayerMahan to continue to focus on expanding our company and providing quality employment opportunities in Groton,” he said.

“I’m disappointed that a company of that caliber and of that technology was not able to establish themselves in the City of Groton,” said City of Groton Mayor Keith Hedrick. “They would be a great asset to the city.”

Burt said the most important thing is that ThayerMahan is thriving and continues to grow in the community, as the company is an important part of the town’s future.

“I would have loved to have had ThayerMahan buy Groton Heights, but there will be other uses that come along,” Burt added. “One use that comes to mind is the possibility of apartments to help with the increasing number of employees at Electric Boat.”

The future use of the property has not been decided. Burt said the next step would be to go before the Town Council to discuss how it would like to proceed.

Reiner said the Town Council is working on revising its process for how the town disposes of excess property.

The letter of intent also envisions that the town would help the Bill Memorial Library and ThayerMahan exchange two small land parcels, so Reiner said town staff plans to talk to both the library and the Town Council about what the best next steps would be.

Divided Southington leaders approve tax break for Texas developer

Jesse Buchanan

SOUTHINGTON — Town officials approved a tax break for developers looking to build a major housing and commercial development on West Street.

Texas-based Anthony Properties seeks town approval for eight residential buildings, two commercial buildings and a clubhouse off West Street. The 41-acre property is in an enterprise zone, making the development eligible for a seven-year tax abatement.

Concerns about the project’s impact on traffic prompted opposition from residents at recent Planning and Zoning Commission meetings. Those concerns carried over to Monday’s Town Council meeting where a majority of members approved the tax abatement but not without opposition from council leaders and debate.

The final vote was six to two in favor of the abatement.

Up to $1.8 millionin tax breaks

If the project is approved by the planning commission, Anthony Properties will get a 100 percent tax break on improvements to the land in the first two years of the program. That percentage drops in the subsequent five years when the program ends.

Economic Development Coordinator Lou Perillo estimated the project will result in about $2.5 million in new taxes for Southington. In the first two years of the program, the abatement will save Anthony Properties $1.8 million in taxes annually with the savings gradually declining afterward.

The tax abatement program is open to developers in areas designated as enterprise zones, a state program set up in the wake of Pratt & Whitney’s departure from Southington. The company’s closure of its Aircraft Road plant reduced the town’s tax revenues by 10% and left a huge building vacant in addition to other economic damage.

Credibility at stake

Perillo recommended the council approve the abatement, saying the land off West Street was a difficult one to develop.

Tax savings help offset the increased cost of infrastructure improvement, which include site work as well as road improvements to the West Street and Curtiss Street intersections.

Those improvements, which could include a dedicated turning lane for southbound drivers on West Street, are pending approval by the state.

The entrance to Anthony Properties’ development will be off Curtiss Street.

Perillo said denying the abatement to a developer building in the enterprise zone also sent a discouraging signal to other companies considering Southington.

“This is about credibility,” he said.

Increased housing

The 41 acres, owned by the Tolles family, is in the mixed-use transition zone on West Street.

The zone regulations set a ratio of residential to commercial square footage.

Anthony Properties convinced town planners to allow more residential, saying demand for commercial and retail space had declined since the pandemic.

The change prompted opposition from some Town Council members.

Paul Chaplinsky, council vice chairman, said the developers now want a tax abatement after changing how the land could be used.

“This was not just taking the existing zone and asking for an abatement. We changed the zone to suit the use,” he said.

Chaplinsky believed tax abatements are more appropriate for contaminated sites or other locations where developers are financially unable to build.

“I hear time after time from residents in our community, increasing residential density is something that they don’t want,” Chaplinsky said.

He and Victoria Triano, council chairwoman, voted against the tax abatement. Both are Republicans. The other Republicans and the council’s Democrats present at Monday’s meeting voted in support for the tax abatement.

Council support

Other councilors said the time to remove the tax incentive was before a developer had spent money on engineering and years going through town processes. Mike DelSanto, a council member, was reluctant to turn down a project that would increase tax revenues.

He was also worried what effect a denial might have on other developers.

“I don’t want to see future projects walk away thinking, ‘There was already a big project before and it wasn’t attractive enough for the Town Council,’” he said.

The Planning and Zoning Commission could take up Anthony Properties’ plan at its March 7 meeting.

18 months behind schedule: Why the Plainfield Amazon distribution center isn't open

John Penney

There is still no set timeline on when a nearly completed Amazon distribution center will open in Plainfield, though town officials don't expect the facility to begin operations before the winter – more than 18 months after it was first set to begin operations.

The 202,000-square-foot building sitting quiet on Lathrop Road was initially expected to begin receiving and delivering packages in May 2022, though that opening date was pushed out twice, first to December before a February was tentatively floated.

“We were told recently Amazon was waiting to see their fourth quarter financial numbers for this year, the months of October, November and December,” First Selectman Kevin Cunningham said on Tuesday. “Then they’ll come in and finish the construction work.” 

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Exterior work on the massive “last-mile” warehouse has been finished for months, though interior build-out tasks, including the addition of conveyor belts, hasn’t been accomplished. 

Town Planner Mary Ann Chinetti said in late 2022 she expected to get an opening update from Amazon representatives this month. 

“I’ve been playing a little bit of phone tag with them and we haven’t yet been able to hook up,” she said this week. 

Supply chain issues part of the delay

Chinatti said she was told supply chain issues that arose during the COVID-19 pandemic are still causing construction headaches.  

“It’s an issue of getting the materials,” she said. “From everything I’ve heard, (Amazon) is still fully committed to move forward here. I haven’t heard anything otherwise. The rumors are for a 2024 opening.”

Cunningham said it’s possible the center could start operations in time for the busy Christmas season. 

More:Plainfield has made $500K off its Amazon warehouse. It hasn't even opened yet.

“Though we haven’t heard full details on that,” he said. 

Amazon delayed the openings of several similar distribution centers across the state and country citing pandemic-related hiring challenges, high gas prices and the overdevelopment of labor and facilities, according to a Hartford Business Journal article in June. 

Once the Plainfield fulfillment center goes live, workers will sort received packages dropped off from tractor-trailers before sending them out to customers via a fleet of third-party contractors trained by Amazon.

100 employees in warehouse; up to 400 drivers

Company representatives previously said roughly 300 to 400 drivers are expected to work at the Plainfield site and arrive in waves of 160 vehicles during the morning hours and depart in vans. During a typical 10-hour shift, the drivers will deliver within a 45-minute delivery area. Another 100 Amazon associates are expected to work inside the warehouse. 

The facility project, led by the Exeter Property Group, a Pennsylvania-based real estate investment and development firm, received a certificate of occupancy in September and has paid between $350,000 and $400,000 in building permit fees. More permitting fees are expected to be collected as part of the interior work. 

“On average, we’re getting about $34,000 a month in taxes from that building - $410,000 a year,” Cunningham said. “We expect that figure to go up once the build-out is finished.” 

Amazon and Exeter representatives could not be reached for comment this week. 

Formerly Connecticut Yankee Greyhound site, sold three times since dog track's closure

The Lathrop Road location was once home to the Connecticut Yankee Greyhound, a dog-racing park that opened in 1976, rapidly becoming one of the most profitable tracks in the nation by attracting gamblers from across the state and beyond. Competition from the region’s two Native American-owned casinos in the 1990s, however, proved too much for the park. 

The racetrack shuttered in May 2005 and the property was bought the next year for $7.5 million by the BVS company, a subsidiary of the Fairfield-based Starwood Ceruzzi firm. Winstanley Enterprises, a Concord, Massachusetts, investment and development company that serves as landlord for several office spaces and warehouses in New England, bought the track in November 2017 from BVS Plainfield Investors LLC for $3.37 million. 

The Exeter group paid $7 million for the property in July 2021. 

Developer planning 172-unit luxury apartment project in West Hartford buys former Children’s Museum property

Michael Puffer

The New York developer planning to build 172 apartments on the former site of the Children’s Museum in West Hartford recently paid $10.57 million for the property, as well as a small portion of the neighboring Kingswood Oxford School site.

Developer Continental Properties bought the 3.96 acres from the Kingswood Oxford School – which has owned the museum property at 950 Trout Brook Drive since 2001 -- in a deal recorded by the town on Feb. 2.

Kingswood carved off an additional half-acre to make a more efficient building site for the new owner.

Colliers, which announced the sale Wednesday, said it was the result of a years-long process led by the firm.

“The school and their leadership couldn’t have been better partners throughout this complicated process, and we are excited that this sale will allow them to invest in the school’s long-term strategic goals,” said Ian Hunt, of Colliers. John Cafasso, of Colliers, also worked on this project.

The Children’s Museum leased its site from Kingswood Oxford from 2001 until last year, when it moved into temporary space in West Hartford’s Emanuel Synagogue.

"Kingswood Oxford benefited greatly from the expertise and partnership with Colliers in helping us to identify the right buyer for the Trout Brook property,” said Mary S. Martin, Kingswood Oxford board chair, according to Wednesday’s release. “This transaction will allow (Kingswood Oxford) to invest in our people, programming and facilities and we welcome Continental to the West Hartford community.”

Continental has local land-use approvals for a mix of luxury one-, two- and three-bedroom apartments on the site, with amenities including a pool with cabanas, a dog park, coworking space and a rooftop lounge.

"We commend Colliers for successfully shepherding this process through each step, culminating in a closing of the transaction last month,” said Howard S. Rappaport, a principal of Continental Properties, according to the release. “We are extremely gratified to have worked closely with Colliers, Kingswood Oxford and the Town of West Hartford on the redevelopment of this high-profile site in West Hartford Center. Continental is committed to building and operating an iconic, first-class rental community that the Town of West Hartford and its stakeholders can be proud of at this important location in the center of West Hartford."

Continental Properties is among the largest developers of Class A rental communities in the Tri-State area, according to Colliers.  In Connecticut, Continental has developed communities in Rocky Hill, Glastonbury, South Windsor, Milford, Shelton and Trumbull. 

The bidding process for the site in 2021 was extremely competitive, according to Cafasso and Hunt.

“Continental and its principals differentiated themselves from the start,” said Hunt. “We immediately knew they would be an ideal partner for Kingswood Oxford.”

The 3.96-acre site traded hands for $10.57 million or $2.67 million per acre, setting a new benchmark for development sites in central Connecticut, Colliers asserted.

“We’re seeing tremendous demand for desirable sites throughout the Hartford area,” added Cafasso. “We expect to see more new multifamily development over the next 12-18 months.”

IIJA money starting to flow to projects

Funding from the Infrastructure Investment and Jobs Act is finally making it to projects, according to the CEOs of several major public construction companies. Additional federal money from the Inflation Reduction Act and CHIPS Act is also boosting the civil construction outlook, they said.

“I think that’s really encouraging to see … the federal money coming out in the system, the different states are really investing a lot,” Skanska CEO Anders Danielsson said during a recent earnings call.

Amid a shaky economic climate, civil work remains a bright spot. Skanska, for example, reported the non residential U.S. construction sector as the sole market where its expectations have improved compared to the previous quarter, buoyed by federal infrastructure spending.

President Joe Biden signed the IIJA in November 2021, and despite excitement about the five-year, $1.2 trillion law, construction companies said late last year they haven’t yet seen much benefit. That’s starting to change as the money makes its way from state and local budgets down to the project level.

“I am very encouraged by the tailwinds we are seeing not only in our construction segment, but also throughout the entire civil construction industry,” Kyle Larkin, CEO of Watsonville, California-based Granite Construction, said during a recent earnings call. “While it’s taken longer than hoped for, IIJA funds have reached the states, money has been allocated to projects, and states are working to get the projects out to bid.”

For example, during the first year of the IIJA, California’s federal transportation funding from formula grants increased 42%, or approximately $1.5 billion, with funding expected to remain at this level for the next several years, Larkin said.

AECOM CEO Troy Rudd said during a recent earnings call that getting IIJA and other federal funding into place has been slow, but “we’re starting to see the impact in the marketplace today.” However, he expects to see more benefits going forward since state and local governments are well-funded and have set aside money for large infrastructure investments.

“We think we’ll see the more significant impact of the funding from IIJA, when matched with state and local funding, in 2024, but we see that going well through ’26 and ’27. In fact, what we’re forecasting is the peak of that money being in the market and infrastructure projects is probably in 2026 and 2027,” Rudd said. “I think this is an opportunity that will extend for a long period of time we’re looking to take advantage of.”

In Texas, for example, Gov. Greg Abbott last week announced a record 10-year, $100 billion statewide roadway construction plan, which is bolstered by money from the IIJA. The bulk of the funding is directed to roads and highways, but Texas’ Unified Transportation Program also identifies public transportation, maritime, aviation and rail projects as priority.

Jacobs CEO Bob Pragada said during a recent earnings call that energy and environment, critical infrastructure and other growth sectors are getting a boost from government stimulus from the IIJA, Inflation Reduction Act and the CHIPS Act. Pragada added the company has helped its clients secure over $1 billion in IIJA competitive grants for projects such as subway station accessibility in New York City, a major port development in Alaska and the design of a sustainable battery recycling facility. 

“Before the end of the calendar year, we fully expect to have all three bills firing at full strength and funding critical projects sponsored by local governments, the federal government and semiconductor industry,” said Pragada. “This overlap of spending will continue for four or five consecutive fiscal quarters and drive growth across the infrastructure and energy markets.”