New York City to restart $17B of capital construction projects

Kim Slowey  

• New York City Mayor Bill de Blasio announced this week that the city is restarting $17 billion of capital construction projects as part of its pandemic recovery effort. During a press conference, De Blasio's recently appointed Senior Advisor for Recovery Lorraine Grillo said 1,700 construction projects will be given the green light by the end of March.
• Grillo said that the reboot will not only be an opportunity to put architects, engineers and construction professionals back to work after being sidelined by the pandemic but will also provide opportunities to the city's minority- and women-owned contractors and to small construction businesses that can now restaff their operations.
• After the COVID-19 pandemic arrived in the U.S., the city's water, sewer and infrastructure projects, deemed essential, continued but in late March 2020 the New York City Department of Design and Construction directed firms with contracts for design services for city-backed projects to halt work, according to The Architect's Newspaper. 

Applauding the de Blasio administration's decision was Carlo A. Scissura, president and CEO of the New York Building Congress.  Resuming work on the $17 billion initiative, he said in a press release, is an acknowledgment of the key role that the construction industry will have in New York City's recovery.

The work in the city's five boroughs includes:

• Building more school capacity in underserved and overcrowded districts.
• Affordable housing construction.
• Coastal resiliency and climate change-related projects.
• The Vision Zero initiative focused on roadway safety.
• Parks.
• Major library projects.
• Repairing, replacing and upgrading sewer and wastewater management infrastructure.

Grillo said the renewed construction efforts will be a shot in the arm for the city and its residents. "This is exactly what's needed to bring this city back and make this a recovery for all of us," she said.

De Blasio appointed Grillo, also referred to as the city's recovery czar, to the new position last month. She had been with the New York City School Construction Authority for almost 30 years, most recently as president and CEO, and was not only brought on to drive the capital construction program but the city's economic recovery in general.

"I build things. That’s what I do. And together, we are going to build a recovery that lifts up every New Yorker," she said at the time of her appointment.

During her career with the city, Grillo has coordinated almost 4,000 capital building projects and managed $28 billion in budgets. That work includes:

• Delivery of more than 89,000 K-12 and universal pre-K public school seats.
• Reopening 71 schools damaged by Hurricane Sandy.
• Opening 35 universal pre-K centers in less than six months.
• The development of public-private partnerships for school construction.

New legislation could help get more data centers built in eastern Connecticut 

Sten Spinella  Local and state leaders mostly praised legislation passed by the state Senate on Monday that would allow for tax breaks for Connecticut data centers.

H.B. 6514, An Act Concerning Incentives for Qualified Data Centers to Locate in the State, is important to eastern Connecticut, a potential landing spot for data centers. During a public hearing last week, Randy Collins from the Connecticut Conference of Municipalities said he’s had conversations with Groton, Montville and Norwich about considering such facilities in Connecticut.

Sen. Cathy Osten, D-Sprague, said an interested developer has "talked to" Norwich, Groton, Montville and Ledyard officials. She said the eastern Connecticut delegation and several others met with state Department of Economic and Community Development Commissioner David Lehman to ensure the towns weren’t left out of a deal.

On Monday, Lehman said that, beyond job creation, the two main benefits of developing data centers are growth in a town's grand list and income tax revenue.

"When you have state-of-the-art data centers, you generally are going to have financial and technology jobs that want to be proximate to those data centers,” he said, noting that this legislation will not impact existing data centers unless they decide to do a large enough renovation or new construction.

Groton Town Manager John Burt said there are no imminent plans for a data center but "I am very supportive of the bill that cleared the Senate and is expected to be signed by the Governor. The Town of Groton would be thrilled to host data centers presuming that we can arrive at a satisfactory host municipality fee agreement."

A qualified data center is defined in the legislation as a facility that houses networked computer servers in one location, centralizing the storage and dissemination of data.

Norwich Mayor Pete Nystrom said Tuesday that there are no immediate plans for a data center in the city, but he mentioned that city officials were approached by a real estate broker a few years ago about the potential to host a large data center. He said it was the same broker who was making the rounds among local towns.

Some legislators said they think the 30-year period is too long for the tax abatement program established by the legislation, though Sen. Heather Somers, R-Groton, another ardent supporter of the legislation, said without 30-year agreements, data centers likely won't come.

“There is an industry standard that you have to meet or data centers will not come here. It’s very simple,” she said.

Nystrom said he did not support the initial concept of offering any such development a 30-year free ride on property taxes without involving the host towns, calling it a bad deal for municipalities. He credited Osten, whose district includes Norwich, Ledyard and Montville, for working with the CCM to secure the interests of municipalities in the legislation passed by the Senate on Monday.

“The language in the bill is designed to put the cities and towns in the driver’s seat,” Nystrom said. “If they can’t come up with a host town agreement, they don’t get the tax break.”

Nystrom said the concept was presented by the broker as a $300-million construction project, with $300 million in high-tech computer equipment that would need to be upgraded about every three years. He said the host town initially was offered just $500,000 in compensation — 1/32nd of the potential tax value. “How do you accept that?” Nystrom said. “You don’t. It’s crazy. I don’t find it really workable.”

Nystrom was skeptical of the viability of a 30-year tax abatement on a project so reliant on technology, which could undergo dramatic changes over time that would make the facility obsolete.

Montville Mayor Ron McDaniel is more supportive of the bill.

“I believe that the passage of the bill will in fact encourage data center developers to take a hard look at Connecticut,” McDaniel said. “Montville is poised to be a good candidate for this development as we have put all the pieces in place from the regulatory and zoning side. I have long believed it could result in a domino effect in southeastern Connecticut due to the availability of land, geographic location between New York City and Boston and availability of fiber network.”

Montville has had plans for a data center in place since 2019, when the Planning and Zoning Commission unveiled and unanimously approved the site plan for the first phase of the project. Developer Verde Group LLC hopes to build two large data storage buildings — at 87,000 and 166,000 square feet, each with an office, electrical room and data hall with computer and networking equipment — on 65 acres, with room for potential expansion on a 300-acre site.

Town Director of Planning Marcia Vlaun said the Verde Group still is ready to develop the data center between Route 32 and the Thames River but hasn’t taken the next step.

“It’s just not been very active,” Vlaun said of the project. “They have their site plan approvals. If it gets off the ground, there’s some other specific things they’ll have to come in for. The permits they have are good for a number of years; they have until 2024 to stick a shovel in the ground.”

The Verde Group did not respond to requests for comment.

Osten said another change in the proposed legislation tightened language to ensure host towns could claim a place in line in any foreclosure or bankruptcy proceeding should the data center company “walk away.”

The change would treat the property “like any other property that’s being foreclosed or being in a bankruptcy proceeding,” Osten told senators during the floor debate on the bill Monday.

She spoke at length about other benefits of the bill.

“Data centers want to come to eastern Connecticut because we have cheap land and cheaper utility rates. The benefit to us is utility revenue,” Osten said. “With this legislation, developers have to negotiate with municipalities, and they won’t get anything unless they meet with the municipalities.”

Day Staff Writers Claire Bessette, Erica Moser and Kimberly Drelich contributed to this report.

Water main work to begin Monday in Stonington

Stonington — The Aquarion Water Company will start work Monday on a water main project on Dean’s Mill Road and Flanders Road. Work is expected to be completed by the end of June. 

The project will replace approximately 7,690 feet of water main. Aquarion said it is designed to improve its water distribution system and reduce leaks and water main breaks that can cause service interruptions.

"We greatly appreciate residents’ patience during this project,” said Bill Dwinells, Aquarion’s manager of utility programs. “We will work closely with our customers, contractor, and town officials to coordinate the work and minimize any disruptions.”

Residents should expect minor traffic delays and possible detours from 7 a.m. to 5 p.m.  

To keep customers informed about scheduled and unscheduled work, Aquarion utilizes an Everbridge notification system to call affected customers. Aquarion encourages customers to sign up for this free service at aquarionwater.com/alerts. 

Customers with project-related questions may contact John Farrell, Aquarion’s project manager, at (203) 362-3048. For service or water-related issues, please contact Aquarion Customer Service at 1 (800) 732-9678.

Developer proposes converting Manchester hotel to apartments

Skyler Frazer   developer hoping to convert Manchester's Hawthorn Suites hotel on Spencer Street into apartments met with the Planning and Zoning Commission on Monday to discuss the project, which could create more than 100 units at the site.

Paredim Partners, the developer, is planning to buy the hotel at 191 Spencer St. to convert it into a market-rate, multifamily units. Paredim Partners Managing Director David Parisier and the business’s lawyer, Dory Famiglietti, met with the Planning and Zoning Commission on Monday for a pre-application discussion about the plans and to receive feedback about any concerns.

The developers wanted to meet with the PZC before buying the properties because they will need to secure a special exception permit for the site, which is in a general business zone.
“We’re very excited about the prospect of doing something in Manchester,” Parisier said. “We’ve looked at Manchester for years and never been successful in finding the right mixture, and we think this is the right mixture.”

Famiglietti gave an overview of the project, which would overhaul parts of the seven-building site.

As it stands now, the hotel is comprised of 104 units in six buildings, with units ranging from 500 to 800 square feet. All units have a private kitchen area. A seventh building on the property houses a reception and lobby area, kitchen, bar, gym, laundry facilities, management offices, and two large conference rooms.

Moving outside, there’s a sports court and swimming pool on the property, and outdoor parking areas for guests.

Paredim Partners is planning to upgrade the existing 104 units into 84 studio or one-bedroom units and 24 two-bedroom units. The project would also create between four and six additional units in the areas used for management offices and conference rooms.

Other elements of the project would expand and upgrade the gym, refresh the pool area, replace the outdoor sports court with recreational areas including a common area fire pit and grill station, modify and maximize existing outdoor parking areas, and upgrade the landscaping in the site’s common areas.

For this project to be allowed Paredim needs a special exception for the General Business Zone regulations to allow the conversion of existing hotels and motels to multifamily developments.

Many members of the commission supported the idea of proposal as a unique way to reuse property in town from one industry or use to another. Commissioner Michael Stebe called it an out-of-the-box idea, though he and others expressed some concerns about potential traffic and parking conflicts in the area with added occupancy.

“A lot of towns are at this point where there isn’t a lot of open space left to expand out for anything really, whether it’s retail, housing, industrial, or manufacturing,” Stebe said. “Repurposing and reusing existing development is at the core of a number of the conservation and development points that we have.”

Commissioner Bonnie Potacki said she was hoping the plan would have some transit-oriented development elements to it to reduce the need for parking rather than increase it. She was also disappointed that the planned apartments weren’t age-restricted or specifically for the disabled or elderly, which she feels the town needs.

An age-restricted complex is under construction near the site. Calamar Inc., a real estate developer, is building a 128-unit apartment building at 188 Spencer St. for residents age 55 and older.

The area also is near several businesses, including the Shop Rite supermarket plaza, Manchester Community College, and entrances to Interstates 84 and 384.

With billions in federal relief on the way to CT, legislators assert their role in deciding how to spend it

Keith M. Phaneuf and Mark Pazniokas   After ceding unprecedented authority to Gov. Ned Lamont during the first year of the coronavirus pandemic, the General Assembly is reasserting itself — just as Washington is poised to send more than $4 billion in new aid to Connecticut.

With a bill emphasizing its authority to appropriate discretionary federal COVID-19 relief, the budget-writing Appropriations Committee signaled the governor that legislators will play a significant role in deciding how this money is spent.

“This is about the legislature placing a marker in their role as a co-equal branch of government,” said Sen. Cathy Osten, D-Sprague, co-chair of the Appropriations Committee. “We hear directly from the people, and we want to make sure their voices are heard.”

The $4.2 billion that Connecticut could receive under the latest federal stimulus plan — and more specifically $2.7 billion in funds that come with few strings attached — would be a game-changer for the next two-year state budget.

Lamont said he had little discretion over how the initial pandemic relief was spent, but he did not challenge the authority of lawmakers to set spending priorities in the state budget, including discretionary federal aid.

“If I have a lot of discretion over that, my feeling is the Appropriations Committee should be involved in that,” Lamont said. “I say that with some trepidation, because it’s going to be a grab bag. But let’s see how much discretion we have, and then absolutely get the legislative leadership and the key committees involved in that. But right now, we have no idea.”

Like previous rounds of federal pandemic relief enacted last year, the package passed by the H0use and awaiting action in the Senate includes unemployment relief and funds to cover coronavirus-related expenses.

But unlike past federal efforts, this one includes billions that Connecticut can use to support the state budget, and another $1.5 billion earmarked for school districts, municipalities and regional government entities.

Coupled with Connecticut’s $3 billion rainy day fund, that would enable state officials to wipe out any deficit, avert major tax hikes and make additional investments to help the state recover from the coronavirus.

Operating under emergency powers granted by the legislature, Lamont has managed state finances with less-than-usual lawmaker oversight since the coronavirus was detected in Connecticut a year ago.

That has created tension with lawmakers at either end of the political spectrum: conservative Republicans chafe at ceding power to the governor, and progressive Democrats grumble that Lamont has been too parsimonious, especially with aid to non-profits facing increased demands for services

The existence of the bill, and leaders’ intent to pass it, carries considerable significance, while the specifics may be redundant: The governor does not challenge the legislature’s power of the purse.

With federal relief potentially coming before Lamont’s emergency powers expire on April 20, the governor’s fellow Democrats in the legislature’s majority felt it necessary to clarify matters.

“My caucus wants to make sure,” said House Speaker Matt Ritter, D-Hartford. “It would not be the first time the legislature clarified existing law.”

“One of the General Assembly’s primary responsibilities is to appropriate funding including any federal funding where discretion is provided,” said Senate President Pro Tem Martin M. Looney, D-New Haven, who called the relief package pending on Capitol Hill “an issue of major concern to Democratic senators.”

The legislators’ concerns stem, in part, from Lamont’s handling of state finances since the pandemic began.The Appropriations Committee has clashed with Lamont’s budget director, Melissa McCaw, over how previous rounds of federal relief funds have been spent.

McCaw’s office posts monthly summaries online of funding assigned for various COVID-19-related priorities, involving health care, education, workforce development and municipal aid. The budget director also told lawmakers last month that her office was compiling a more detailed report for the committee.

“We’ve gotten generalities, we haven’t gotten specifics,” said Rep. Toni E. Walker, D-New Haven, the appropriations panel’s other co-chair. 

Walker, Osten and others on the committee have pressed Lamont to utilize more federal and, if necessary, state resources to expand Medicaid eligibility and bolster resources for social services.

The pandemic “has pushed people more into areas of desperation,” Walker said. “We’ve seen kids stealing cars just so they have an area to sleep.”

Connecticut’s two U.S. senators, Democrats Richard Blumenthal and Christopher Murphy, both anticipate another wave of federal pandemic relief is likely coming very soon.

“I’m very hopeful, even optimistic, about a rescue plan, very much like the House package, will pass in the Senate,” Blumenthal said.

The goal is to have a bill on President Joe Biden’s desk in 10 days, before enhanced federal unemployment benefits expire on March 14.

Murphy added he expects the U.S. Senate to pass a relief plan “without delay.” 

Lamont pledged earlier this year when his emergency authority was extended that he would work collaboratively with the General Assembly to decide how to use any new federal relief.

Ritter said that the legislation wasn’t raised for a public hearing next week simply to trigger that conversation and that he expects the full legislature will adopt the measure, likely with bipartisan support.

The top Republicans in the state legislature agreed.

“It took the Democrats a little bit longer, but I’m pleased they’re finally joining Republicans in the cry to assert ourselves as a co-equal branch of government, and I think this bill will have broad support,” said House Minority Leader Vincent J. Candelora of North Branford.

The House GOP leader had objected in early January when Lamont’s emergency powers were kept in place through April 20, instead calling for an extension only through March 1. He also wants a detailed legislative analysis of all the governor’s executive orders since the pandemic began.

“The General Assembly is a separate but equal branch of government and therefore must have a voice in what’s going on,” said Senate Minority Leader Kevin Kelly, R-Stratford.

CTfastrak bus ridership down 39%, Hartford Line train ridership down 75%; no plans in CT to curb public transit

Sean Teehan   Despite significant declines in ridership, Connecticut's Department of Transportation will remain committed to public transportation as the COVID-19 pandemic recedes, a top DOT official said Tuesday.

During a Tuesday afternoon webinar sponsored by the state’s ride-sharing program CTrides and the Hartford Business Journal, DOT Bureau Chief of Public Transportation Rich Andreski touted the state's decision to maintain full service on bus lines throughout the pandemic. He said curbing public transportation would have negative effects on equity, environmental protection and economic development.

"Many places in the country were curtailing service levels, and we felt it was important to continue to offer full service, even though ridership was down," he said.

National transportation expert Sam Schwartz, who also participated in the event, said Connecticut's public transportation ridership appears to be in line with the rest of the country in some areas, and better in others.

Ridership on the Hartford Line commuter rail is currently down about 75% from the same period a year earlier; it was down as much as 95% last spring, Schwartz said. Those numbers are similar to national trends.

But bus ridership in Connecticut is better than what Schwartz is seeing nationally, he said. Ridership on the CTfastrak rapid bus line between Hartford and New Britain was a particular bright spot; it's down about 39% from this time last year. Last spring bus ridership was down more than 50%.

"Buses are doing better, and Connecticut fastrak buses are doing better -- still heavy hits -- but much better than even the national averages or even the New York Metro area," Schwartz said.

Andreski said DOT does not plan to curtail public transportation service despite lower ridership, because people who take public transportation often have no other way of getting to their jobs or anywhere else.

"Although ridership is down, the people who are still riding our buses and trains are doing it because they absolutely have to," Andreski said. "They have no other way of getting around."