Final State Pier cost remains unknown

Greg Smith

The final cost of the State Pier construction project is likely to go up again but by how much and how it will be funded remain a lingering question.

Connecticut Port Authority Executive Director Ulysses Hammond, at a board meeting on Tuesday, signaled that the answers should come within “the next few weeks,” as negotiations with the key involved players near an end.

“We have been engaged in a series of complex negotiations with multiple parties regarding the development of a fair final path forward to the project completion this fall,” Hammond said.

He said he expects to call a special meeting of the port authority’s board later this month regarding the price tag of the project, which now stands at $255.5 million. Negotiations on the final cost of construction at State Pier, which have steadily risen from a $93 million estimate in 2019, involve construction project manager Kiewit and offshore wind partners Orsted and Eversource, among others.

The state has already committed at least $180 million towards the project that has been redesigned and faced permitting delays, supply chain issues and construction obstacles. The Port Authority, a quasi-public agency, has also faced increased scrutiny by the state and been the subject of investigations related to ethics, financial management and contracts.

Negotiations on costs are nearing the final stages even as Gateway prepares to begin its run as terminal operator at State Pier, which will be used initially as a staging, assembly and delivery site for Orsted and Eversource’s offshore wind projects.

About 60% of State Pier will switch from construction site to terminal in time for the expected arrival next month of vessels associated with Orsted and Eversource’s South Fork Wind offshore wind project under construction off Long Island.

Last month, Gateway parent company Enstructure said it was finalizing contractual agreements with the International Longshoremen’s Association, whose members will load and unload vessels at the pier. Gateway said it estimates in total there will be 60 to 80 employees from various companies at State Pier working on South Fork Wind.

Gateway is expected to arrive at State Pier by the end of the month.

Hammond said the obstacles that have slowed construction and pile driving at State Pier are expected to continue into the summer with dredging resuming at the end of the year.

Orsted and Eversource jointly issued a statement in response to questions about South Fork Wind, saying in part that “State Pier is expected to begin to see activity associated with South Fork Wind next month, beginning with the arrival of the first vessel carrying prep packages to support wind turbine staging and assembly at the site. In June, we expect the blades and nacelles to arrive at State Pier, which will lead to further activity supporting the project.”

Meanwhile, Hammond said there have been behind-the-scenes activities in advance of the arrival of offshore wind vessels in May. Licensed marine pilots and tugboat operators from Thames Towboat Company were trained earlier this month at the U.S. Maritime Resource Center in Newport, R.I. Those pilots will guide the incoming vessels to the pier.

The changeover to Gateway as terminal operator triggers lease payments to the port authority of $2 million per year from Orsted and Eversource and additional funds from Gateway that are based on revenues and expected to amount to hundreds of thousands of dollars per year.

The city of New London is receiving a minimum of $750,000 per year for at least seven years from a host community agreement with Orsted and Eversource. The city received an initial $500,000 payment in June and expects a second payment next month.

Hammond said he remains encouraged by the progress at State Pier.

“While we still have about 40% to complete before the champagne celebration, the current momentum and commitment is promising,” Hammond said.

West Haven residents, officials prepare for long-awaited Beach Street raising

Brian Zahn

WEST HAVEN — City officials are prepared to initiate work on the long-awaited project to raise Beach Street 11 feet above sea level  —  a project expected to make way for more development along that stretch of the city's beach — following the approval of a $4.8 million construction contract by a state oversight board.

The approval of the contract by the Municipal Accountability Review Board, which maintains approval authority on all of the city's non-labor contracts greater than $50,000, comes about three years after state Rep. Dorinda Borer, D-West Haven, secured about $5 million in state and federal funds to support the raising of the road in May 2020.

The raising of the road initially was projected to be finished in fall 2022, but lagging response times between the city and the state Department of Energy and Environmental Protection delayed the start of the project. During the permitting process, DEEP officials found a protected species of grass in the area that required a protection and relocation plan, further pushing back the road raising start date.

Following the MARB's approval of the city's contract with construction company Laydon Industries LLC, the city received permission to execute a 240-day contract.

“I'm thrilled. This was the last hurdle to overcome in order to move forward, and this project has been a rough road,” Borer said. “It's been a few years and there's been many obstacles, and with determination and commitment we’ve been able to work through a lot of the challenges.”

In a email, City Engineer Abdul Quadir did not commit to a specific timeline for the beginning of construction, saying the contractor will sign the contract after arranging for bonds and insurance, and after the signing of the contract the contractor will submit its schedule.

"I expect that project will be done by December depending on if no adverse events happen," he said.

Borer said she also was happy to see a "contingency cushion" as the construction contract is roughly $500,000 below the funds that had been obtained.

Michelle Coletti, president of the Sandy Point Neighborhood Association, a nonprofit community organization representing neighbors in the area of the Sandy Point Bird Sanctuary, said she and others feel content with the city's collaboration with the neighborhood association on the project's design.

"I think the dialogue opened up and we were able to really partner with the city in bringing forward some refinements to the form and function and design," she said. 

Neighbors' concerns that were addressed included beach access from the road, the infill materials, landscape design and the slope and grading of the bird sanctuary's parking lot.

Despite the waiting, Coletti said she's content with the current pace of construction and development.

"I feel like the southeast section of West Haven has gained a lot of positive momentum in a short period of time," she said.

City Council member Meli Garthwait, R-2, resides in a home that will see impacts from the road raising. She said her home has not yet flooded, and now she hopes it never will. She said she is hoping there will be enough drainage, because although the road raising is intended to protect against flooding coming from the beach, it also will create sloping toward the residential area on the other side of Beach Street.

Garthwait said she was "thankful" that city officials altered the design to avoid creating stairs leading onto her property because of her accessibility concerns.

"I think the majority of the neighborhood is ready to get this project completed since it has been pending for a few years now," she said. "In addition, a lot of residents in the area are looking forward to the road closure as it will bring a peaceful summer without all the beach traffic."

City officials did not respond to questions about how the city would direct drivers to the beach during construction this summer or what measures might be taken to preserve the conservation of protected species in the bird sanctuary..

Borer said the initial purpose behind seeking to raise the road was because of the devastating flooding from Superstorm Sandy and Tropical Storm Irene, but now she expects there to be economic development benefits, as well.

“I think we’ve seen that, since the announcement of the road raising, even though it took a little longer than I expected, we saw the Chick's property purchased, we saw Audubon decide to make it [the shoreline] their home, we procured $2 million for the pump station to install bathrooms for more expected activity down there. I think it was a springboard for positive transformation,” she said. "It would also be a good time for the city to bring the owners of the Debonair back to the table to better understand their plans."

Danbury brothers approved to build $2.3M multifamily apartment building in New Milford

Kaitlin Lyle

NEW MILFORD — New housing options are coming to town in the form of a multi-family apartment building on Church Street.

Danbury brothers Scott and David Benincasa’s site plan application to construct a four-story, $2.3 million apartment building on the property at 25 Church St. was approved at the Zoning Commission’s April 11 meeting.

In addition to providing modern housing options in New Milford, David Benincasa said the building will draw more people to the downtown area and contribute “to the liveability of downtown, which is vital to the future prosperity of the town.”

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Scott Benincasa, who owns the construction business GoodHouse in Danbury with his brother David, said the next step is to apply for the building permit for the project.

The proposed apartment building will have 18 units — six of which will be designated as affordable housing units, according to the site plan application. The Benincasas applied through the state statute 8-30g, which allows developers to bypass local zoning laws — with certain exceptions — if they promise to build a certain percentage of affordable housing.

The first and second floors will each have seven, one-bedroom apartments and the third floor will have four, two-bedroom apartments. The three floors of residential apartments will be above the parking on the ground level. The ground floor will offer covered parking for the tenants’ vehicles and there will be an elevator from the ground floor to all floors.

David Benincasa said the apartment rents will be “typical market rent in New Milford with the exception of deemed affordable units by state law.” He said typical market rent in the area is $1,500 a month for a one-bedroom apartment and $1,800 for a two-bedroom apartment.

The property at 25 Church St. previously had a two-story mixed used building with a retail paint store on the first floor, an apartment upstairs and two large barns, according to Zoning Enforcement Officer Laura Regan’s memo to the Zoning Commission.  

The town acquired the property in 2001, but Regan’s memo said it is unclear what the town’s intended use was for the property “because aside from the continued use of the barns for storage, it appears that the main building, for the most part, sat vacant until 2013 when the New Milford Commission on the Arts opened Gallery 25.”

The town put the property at 25 Church St. up for sale in 2017 after Gallery 25 relocated to Railroad Street. No acceptable bids were received for the property, so the property was taken off the market, according to Regan’s memo. The property was later put back on the market and the Benincasa brothers purchased the property in April 2021.

The property has an existing 2,340 square foot, two-story building that will be demolished and removed, according to the site plan application. The Benincasas have contracted J. Dasilva Services LLC in Danbury for the demolition, which is anticipated to start April 24 and be completed May 5, according to the demolition notification form.

The demolition's estimated cost is $10,000 while the estimated cost of the apartment building’s construction is $2.3 million.

For sale in CT: Huge company headquarter that could be a senior living campus

Alexander Soule

After a court fight over a proposal to convert a Trumbull business headquarters into a senior living community, the property has been put up for sale by its owners as a shovel-ready deal for another developer to take on.

The campus at 48 Monroe Turnpike in Trumbull was once the headquarters of Oxford Health Plans, owned today by UnitedHealthcare which moved the administrative office operation to Shelton in 2015.

The property has been owned since 2018 under a limited liability company controlled by Senior Living Development, whose principal runs KindCare Assisted Living based in Fairfield. Senior Living Development acquired the property for just under $3.3 million, with the city's most recent appraisal calculating a value of $3.9 million.

"We continue to have current residents call inquiring about when this development will begin construction and how to get on a list for the future," stated Rina Bakalar, Trumbull's head of economic development, in an email response to a CT Insider query. "In our recent housing survey where over 1,300 residents responded, the need for all sorts of senior housing options (market rate and affordable) came out strongly as something residents feel is needed in Trumbull."

The proposed Rivers Edge facility would have nearly 200 apartments with access to assisted living services and living quarters for dementia patients, and the ability to rebuild a garage structure as a second building with nearly more 150 units as an "active adult" community.

In a document posted on the LoopNet commercial real estate website, Senior Living Development projects a 23.4 percent return on investment for any would-be buyers. At the time Senior Living Development aired its plans in 2018, the town estimated the cost of the conversion at $100 million.

Mark De Pecol, a Senior Living Development principal who is CEO of KindCare Assisted Living, could not be reached immediately Tuesday for details on any decision to sell the property to another developer. KindCare is opening a newly constructed community this spring in Bristol.

A legal challenge to the project had been filed in state court by Old Mine Associates, the limited liability company that owns a retail complex next door anchored by Home Depot, with both properties abutting Old Mine Park. A judge ruled last September in favor of Senior Living Development, with Old Mine Associates appealing the decision without success.

In filings with the Connecticut Secretary of State, Old Mine Associates lists as its main point of contact a principal of Bridgeport-based Peter Dinardo Enterprises, which has a dozen properties in Trumbull and a number more throughout Fairfield and New Haven counties. Peter DiNardo Enterprises could not be reached immediately Tuesday for comment on any current stance on the Senior Living Development project.

Trumbull has added several senior living communities in recent years as part of a larger apartment boom, with facilities including Bridges by Epoch at Trumbull, Middlebrook Farms at Trumbull, River Valley Retirement Community and Spring Meadows by Monarch. In January, the town renewed a moratorium on new apartments to analyze any impact by the Residences on Main nearing completion next to the Westfield Trumbull mall.

Hartford developer takes on transformation of antique Litchfield courthouse into boutique hotel

Michael Puffer

Over the past 133 years, people have visited the granite-block courthouse just south of Litchfield’s Town Green for everything from murder cases to child-custody disputes.

In less than two years, however, the roughly 18,000-square-foot historic building could become a mecca for leaf peepers, wedding guests and tourists seeking an escape to the tranquil Litchfield hills.

A planned $14-million redevelopment spearheaded by Hartford-based Lexington Partners will transform the building into a 20-room boutique hotel.

Under the plan, the main second-floor courtroom will be converted into an upscale restaurant, accentuated by a rooftop lounge overlooking a portion of the town center and wooded hills beyond.

With all needed approvals in hand, Lexington anticipates finalizing the purchase this month and beginning a 15-month renovation in May.

The firm specializes in developing and managing large-scale multifamily properties, but opted for a hospitality development after hearing from locals, including the Litchfield Preservation Trust Inc.

The nonprofit acquired the property after the court relocated to Torrington in 2017.

“We listened to the townsfolk and did our own due diligence,” said Martin Kenny, owner of Lexington Partners. “If we did apartments or condos, it wouldn’t generate the traffic to help support the rest of that beautiful center. To me, it’s one of the most iconic architectural buildings in the state, particularly in the area.”

Proud history

The Romanesque Revival-style courthouse — adorned with a Seth Thomas clock tower — dates back to 1889, and was designed by noted Waterbury architect Robert Wakeman Hill, according to state historical records.

The exterior was remodeled in 1913 and 1914 to more closely reflect the town’s colonial style.

Kenny said he initially saw the courthouse conversion as a relatively modest effort, something that his younger staff, including his sons Kevin and Patrick, could lead from design through construction.

However, challenges have crept up.

Patrick Kenny, Lexington’s vice president of development, said federal historic preservation guidelines and state and local desires haven’t always perfectly meshed.

For example, there were disagreements over the design of a planned tower addition that’s needed to make room for stairs, a dumbwaiter and elevator that will carry people and food from the basement to the rooftop lounge.

Lexington and Hartford-based Tecton Architects proposed cedar-board siding to complement the town’s colonial-style buildings; town officials and the National Park Service preferred brick.

The brick design won out.

“That’s an example of getting every board and committee on the same page, and why it was so time-consuming,” Patrick Kenny said.

The courthouse interior currently has cracks in plaster, loose and threadbare carpeting and at least one broken window covered with plywood. Patrick Kenny said the planned renovation will transform the deteriorating building while maintaining its historic character.

Eight fireplaces will remain. A judge’s bench from a first-floor courtroom will be repurposed and used in the reception area, as will a scrolled wooden rail from the jury box.

Other courtroom furnishings will be incorporated into the restaurant. A massive safe will be redesigned as a bathroom for one suite.

“We are used to doing projects of $50 million and up,” Martin Kenny said. “This deal has been just as complicated as some of the larger projects we have done. But it’s a labor of love. I’ve told people that this little project is probably going to be one of the most significant things we have done in our body of work.”

Development costs pencil out to about $700,000 per hotel room. The restaurant will be an important source of additional revenue.

The project is relying on $3 million worth of state and federal historic tax credits, in addition to $2 million in Connecticut Green Bank C-PACE financing for energy efficient building technology. Massachusetts-based PeoplesBank is loaning $7.5 million.

Parking magnate Alan Lazowski, a longtime business partner to Martin Kenny, is among a group of friends and family also investing in the hotel.

Patrick Kenny said Lexington is working to fill a small gap in the private equity portion of financing.

Eagerly anticipated, much needed

The new hotel will complement fashion boutiques, antique stores, restaurants and other Litchfield center shops far better than what came before, said Andrew Goldstein, who runs a jewelry shop a few doors down from the shuttered courthouse.

Goldstein moved his Ideal Jewelers business from downtown Waterbury to Litchfield shortly before the court closed in 2017.

The consensus among retailers was that the court didn’t generate much business for merchants along the stone-brick sidewalks of the commercial core, Goldstein said. Most staff seemed to bring their lunches and head right home after work.

The planned hotel, however, will provide much-needed lodging for an area that springs to life with tourists Thursdays through Sundays, Goldstein said.

“It’s a great addition,” he said. “I know everybody on the street is very excited about it. It is going to bring in people. You can’t imagine how much business we do from people who want to escape the city on the weekend.”

JoAnn M. Ryan, president and CEO of the Northwest Connecticut Chamber of Commerce, said the area will greatly benefit from another hotel, especially one that is more moderately priced than some existing options.

“I’m a resident of Litchfield and live not too far from the Green, and the weekends are filled with New York cars,” Ryan said. “You have to make reservations at the restaurants to get a meal.”

Ryan said it can be hard to find an available hotel room, and existing options can run above the average visitor’s budget.

For example, the 113-acre Winvian Farm resort and spa in nearby Morris rents luxury cottages starting at $799 per weeknight during the off season; daily rates jump to $1,599 for weekend nights during the September and October peak foliage season, according to its website.

The 35-room Mayflower Inn in Washington costs $520 to $708 for a weekday night stay in mid-May, in addition to a $40-per-night resort charge, according to its website.

The 32-room Litchfield Inn on Bantam Road has more affordable rates — $236 to $289 per weeknight in May — but fills up quickly.

“There are bed and breakfasts, but you really have to search,” Ryan said. “If you have a larger party, it’s really kind of hard to find a place. There is no question there should be more places that could accommodate a number of people.”

Patrick Kenny said he anticipates rooms will rent somewhere between $200 to $300 during off-season months, and $400 to $450 during peak season.

Unique offering

Provincetown, Massachusetts-based Salt Hotels will have a 10% stake in the courthouse redevelopment and manage the day-to-day functions of the restaurant and hotel – neither of which yet have a name.

Salt currently operates boutique hotels in Provincetown, Nantucket, Miami Beach, Minneapolis, Los Angeles and Mexico.

David Bowd, who co-founded and owns Salt Hotels with Kevin O’Shea, anticipates opening in late 2024 or early 2025.

O’Shea said Salt is still working on concepts for the restaurant, which will be accessible to the public. Special attention will be paid to complement, rather than compete with, existing eateries, he said.

The courthouse represents the unique and niche offering Salt Hotels prizes for its boutique destinations, O’Shea said.

“Obviously, this building is really iconic and just an incredible piece of architecture,” O’Shea said. “As a courthouse, this building was open to the public but not necessarily a place you would want to be in. I think this is such a wonderful opportunity as a hotel to be able to invite people in and have them experience this incredible piece of architecture in the center of Litchfield.”