CT Construction Digest Wednesday December 22, 2021
CT to borrow over $1.3 billion to fund a long list of state, local projects
Andrew Brown
Gov. Ned Lamont helped to hand out more than $1.3 billion on Tuesday by voting to have the state borrow money to pay for various infrastructure projects, state grant programs, improvements at a mental health center in Bridgeport and a new train station in Enfield.
In total, the State Bond Commission, which Lamont leads, agreed to fund more than 50 different projects, programs and initiatives — some of which were championed by state lawmakers who are heading into a campaign season next year and are eager to bring home financial wins to their district.
As an example, Gov. Lamont, Senate Majority Leader Bob Duff and a number of other lawmakers representing the Norwalk area gathered on Monday to celebrate the state’s plans to contribute more than $1.2 million to the local YMCA and to spend another $5 million on renovations at the Gallaher Mansion, which is part of a city park.
“It gives me great satisfaction to see the work of our legislative delegation delivering this critical funding for the Norwalk YMCA and the Gallaher Mansion,” Rep. Chris Perone, D-Norwalk, said in a statement.
Bipartisan groups of lawmakers sent out similar press releases on Tuesday lauding the state money that would soon pour into their districts. The legislative delegation in Milford, for instance, noted the $600,000 that would go to a local community health center in their area. And several state lawmakers from Stamford thanked the bond commission for the $2 million their city will receive for a science center.
The more than $1 billion in spending that was approved Tuesday will be financed through state revenue and general obligation bonds, which Connecticut officials market to Wall Street investors and will eventually need to repay with interest.
Connecticut frequently relies on that type of borrowing capacity to finance school construction efforts, capital projects at state universities, transportation upgrades, building maintenance projects, land preservation deals and the smaller community projects that often benefit state legislators. This week’s meeting marked the third bond commission gathering this year.
State legislators largely control the first step in the borrowing process by adopting a two-year bond package, but after that, the governor and the executive branch get to decide what gets funded and when.
That gives governors in Connecticut a lot of power, and some, including Lamont, have used that influence as leverage when negotiating with legislative leaders in the past.
Gov. Lamont, who is also preparing for his own reelection campaign next year, kicked off the meeting on Tuesday by recognizing the long list of projects that the 10-member commission considered and approved.
“We have a very full agenda today,” Lamont said. “One of the reasons is because the state is in a pretty good financial position.”
Connecticut, Lamont said, is also benefiting from recent improvements in the state’s bond rating, which helps to determine what interest rate the state can borrow money at.
“All of that means the state of Connecticut can borrow more at less cost,” Lamont said
There were a wide array of spending priorities approved by the bond commission on Tuesday, including state matching funds for upgrades at Connecticut’s armories, cash grants to financially strapped municipalities, a long list of repairs at state offices and buildings and a number of line items meant to combat affordable housing and environmental issues.
The governor’s office, however, placed an emphasis Tuesday on more than $124 million that is intended to help small businesses, workforce training initiatives and community revitalization projects.
That spending includes tens of millions of dollars that will be distributed to businesses through the state Department of Economic and Community Development and millions more for local redevelopment efforts in Middletown, New Haven, Bridgeport and Hartford. One of the more high-profile projects included on that list was $11 million to help renovate a Hilton hotel in downtown Hartford and to transform part of that property into 147 apartment units.
The Lamont administration also showcased roughly $839 million in transportation spending that will go toward state highway interchanges, traffic safety studies, local paving projects and rail improvements.
“Investing in our communities through revitalization projects, workforce development training and small business support is a key part of our plan to accelerate long-lasting and equitable economic development in Connecticut,” Lamont said.
“These investments are aimed at creating thousands of new jobs, improving the vibrancy and quality of life in our communities and making all corners of the state even more attractive for investment and opportunity,” he said.
Bridgeport residents support Steelpointe apartment plan, but raise concerns about gentrification
BRIDGEPORT — Residents and officials overwhelmingly agreed Monday that the development of apartments at Steelpointe Harbor would benefit the city. But some raised concerns about the potential gentrification of the neighborhood if the affordable housing units the developers must build as part of their contract are not constructed on site.
The City Council held a public hearing Monday night on a proposed tax incentive deal for the development of luxury apartments at Steelpointe. At month’s end the council will consider authorizing the tax break the developers are seeking to help finance the 400 “high-end market-rate” apartments, which will be located off of East Main Street south of Stratford Avenue and cost about $100 million to build.
Many people spoke positively of the father-son team whose Bridgeport Landing Development organization has spent a slow but steady several years transforming the East Side land situated between the waterfront and Interstate 95.
They said the development has taken a once blighted neighborhood and made it a destination, paving the way for further opportunities. The first tenants — Bass Pro Shops, Chipotle restaurant and a Starbucks coffee shop — opened in late 2015, followed by a marina and then, in 2019, Boca Oyster Bar.
“Steelpointe is a major development and has provided local jobs and real opportunities to minority-owned businesses,” said Diana Washington, vice president of the Southern Connecticut Black Chamber of Commerce. “The project has really improved our image and reputation statewide. People now come to Bridgeport and enjoy our many attractions and restaurants.”
Committed developers
Others lauded the generosity and character of Robert Christoph and Robert Christoph Jr.
Robert Dzurenda, executive director of Hall Neighborhood House, said that “Steelpointe has been very active in our community on the East Side.”
“They’ve really stepped up during COVID and actually reached out to us and the community around our facility to help out and they contribute a lot,” Dzurenda said. “They have done a great job in re-branding that area. I’m not from Bridgeport but it’s definitely added to Bridgeport and surrounding towns.”
“The Christoph family, from my point of view, represents all that is good about who we are and what we believe in as a society,” said John Torres, executive director of Bridgeport Caribe Youth Leaders. “They invest in people and they invest in our future.”
“For years we have wondered what could be of the beautiful waterfront property off I-95,” Torres said. “Now we have the chance to add to the vibrant waterfront by supporting this project.”
A handful of people who opposed or raised questions about the possible deal said they didn’t doubt the Christophs are generous or good developers — but said the city should take a closer look at the tax break they’re seeking.
Callie Heilmann, president and co-founder of the Bridegport Generation Now, said everyone in her group wants housing and development at Steelpointe — but also wants the City Council to negotiate an “equitable and inclusive deal.”
“It’s not about good people vs. bad people,” Heilmann said. “It’s about good vs. bad policies. And Bridgeport has its share of housing discrimination, racial and ethnic segregation and wealth inequality.”
Those opposed to the deal included two members of the City Council, Maria Pereira and Michele Small. Other council members, like Ernest Newton, pledged support.
Although the Steelpointe redevelopment was proposed a few decades ago, visitors and passersby will still find plenty of vacant land.
Two years ago the Christophs stated they wanted to break ground on the market-rate housing in 2020, but then the COVID-19 pandemic struck.
This month Christoph Jr. said, “I think the time is now (for the housing). Bridgeport has a real opportunity and it’s moment to really shine.”
The agreement
The proposed tax agreement before the council calls for a two-year construction period and an additional year to occupy the units. Under that deal, Bridgeport would receive $23,900 in taxes for those three years the apartments are being built/leased, then $1.26 million in year four, and then, in years five through 10, the payments would increase by 2 percent, reaching $1.47 million.
The Christophs’ initial contract with Bridgeport for Steelpointe required they also either build or help finance affordable and so-called workforce housing representing 10 percent of their total market-rate units. And most of it can be around town rather than all at Steelpointe.
Heilmann and Generation Now co-founder Gemeem Davis said that number should be at least 20 percent — and that the affordable units should be fully integrated into the Steelpointe development, not elsewhere.
“The lack of guaranteed affordable units at Steelpointe is a segregationist policy, and one that will ensure that Steelpointe is and forever will be economically and racially segregated,” Heilmann said.
Davis said the developers “should be ashamed of themselves for even proposing having a deal set up in such a way that would leave predominantly black and brown people out of that area.” She pointed to other development deals across the country that mandated more on-site affordable units.
“This is not something that’s out of the ordinary. It’s not unreasonable to ask for,” she said. “It’s about what we want our city to look like and who our city is for.”
Newton and state Rep. Antonio Felipe were among those who said it could be insulting to ethnic minorities to suggest they can’t afford housing, and said many already occupy luxury homes in the city.
“Yes, we need affordable housing, but we need people that have got money to come into this city,” Newton said. “Why? Because they will spend money in those neighborhoods.”
Davis later pointed out those living in so-called “affordable” housing include people with modest incomes. “No one is saying we’re talking about poor people who can’t afford anything. That is not the issue,” she said.
Council member Jeanette Herron said the deal isn’t etched in stone.
“We’ll go back to the table and we’ll consider a lot of what’s been said,” she said. “So people have to understand the work is still going to be done. But let’s give ourselves a little more credit than we have here. Absolutely, we need more affordable housing in this city. But we also need development. We also need tax base.”
Another council member, Wanda Simmons, echoed the sentiment, but also said those who spoke out against the deal raised legitimate points.
“Development is good in the city of Bridgeport,” she said. “We definitely need development over here on the East End. But we also need to look at the structural, systemic issues that do segregate and gentrify our neighborhoods.”
Byram River often causes flooding in Greenwich. Will a $35M bridge replacement fix the issue?
GREENWICH — A major construction project could be coming to the Greenwich/Port Chester border in an effort to mitigate the possibility of flooding.
The U.S. Army Corps of Engineers presented a $35 million plan to replace the two bridges along Route 1 into Port Chester, N.Y., to improve water flow in the Byram River.
“Our analysis showed that the Route 1 bridges as they are currently configured, with large central abutments and low roadway profiles, constrict the river at that point,” Karen Baumert, who is working as plan formulator on the project, said at the meeting Monday night. “That creates a bottleneck ... because the abutments catch debris, they catch sediment and they restrict the flow of water.”
The area near the river was hit hard by flooding, particularly in Pemberwick, after Hurricane Ida this past summer.
The cost of the project covers $5 million for continued design work and $30 million for the bridge replacement. Greenwich and the federal government would pay about half the cost of each bridge replacement, although since the bridge goes into Port Chester, the town may end up splitting its end of the bill with New York, officials said.
Nothing has been finalized, but officials were optimistic about the project.
“We have had initial conversations with New York State and there has been positive feedback that there is going to be cooperation on sharing the funding of that 50 percent,” said James Michel, the town’s deputy commissioner of public works. “Exactly what those numbers are is still to be determined, but we’ve had those conversations and there is definitely a commitment to work with the town.”
The project has received authorization from the Army Corps and only lacks Congressional funding. U.S. Rep. Jim Himes, D-4th District, said could be provided as a result of the recently passed federal infrastructure package and other emergency appropriations that have been set aside for resiliency measures.
“It’s not a done deal, but the project should be ready to start once we get the money committed to that project,” Himes said at the meeting.
“This is something that has been a known problem for a long time,” he said. “I’m happy to say for the first time in decades of knowing that it is a serious challenge, we have a plan.”
Approvals from Greenwich’s local government would also be necessary.
The construction, if approved, would take about two years to complete. Work would be done on one bridge at a time. And the bridges, which are currently one way, would be temporarily converted for two-way traffic during the construction.
More than 50 residents attended Monday’s meeting at Glenville School, with several residents pushing for the town to dredge the Byram River and nearby ponds. The condition of those bodies of water leads to flooding during storms, they said.
“If the ponds are shallow and the narrow strait (in the Byram River) and we get a lot of rain, it doesn’t take very long for all of that to just blow up,” town resident Carl Griffasi said. “Time and time again, this happens and those homes get trashed.”
Griffasi has been outspoken about the need for additional dredging and draining improvements. He has been circulating an online petition at www.pemberwickfloodpetition.com.
“Ida hit us pretty hard,” town resident JoAnne Carlucci said. “My daughter and granddaughter lost everything. You need to dredge the river. When I was a kid, there was so much water in there you could take a boat out. You could go ice skating. Now it’s all full.”
There will be some dredging done in the river with the bridge project, Baumert said. But just dredging the river would not do enough to lower the water surface elevation enough to be worth the cost of doing it as a solo project, she said.
Further dredging would likely have to be a town project, not involving the Army Corps, town officials said.
Residents also expressed frustration that flooding has become a long-term problem in the area. First Selectman Fred Camillo, who helped lead the meeting, said he has had floods in his home five times.
“This is not going to be settled tonight, tomorrow or next week,” Camillo said. “I’ve been talking to other first selectmen in Fairfield County and they’re having ... problems with infrastructure that was built 80, 90 years ago. It’s a bigger picture — but in Pemberwick and Byram, we think there are things we can do with help on the federal level. We’re working on it.”
Town resident Matthew Tyson also raised concerns about the bridge project’s possible impact on traffic in the busy traffic circle at the border of Port Chester, particularly with redevelopment projects underway in the area.
Officials stressed that the bridge work, if it were done, would only mitigate potential flooding, not remove the risk entirely. The Army Corps explained that they chose this option after an analysis showed it was the most “economically justifiable.”
“It provides mitigation to future storms, but it does not solve all flood challenge problems,” Col. Matthew Luzzatto of the Army Corps of Engineers said. “We basically work out an analysis of what is the optimum balance of engineering solutions associated with cost necessary to provide that level of protection. No project will ever mitigate the risk of flooding completely.”
Connecticut Port Authority retains confidence in cost of upgraded State Pier project
A delay in permitting has pushed some of the construction work at State Pier into late 2022, but the Connecticut Port Authority reported on Tuesday that the project remains on its projected $235 million budget.
The port authority’s Board of Commissioners met by teleconference Tuesday, five days after receiving a key federal permit from the U.S. Army Corps of Engineers that authorizes in-water work. Projects like dredging deeper berths, installation of bulkheads and filling in the 7.4 acres of water between the two piers are now allowed to move forward.
The bulk of the dredging, which is a crucial part of the planned upgrades to accommodate ships carrying massive offshore wind turbines, won’t happen until late in 2022. Part of the reason for the delay is that the permit that allows work in the Thames River prohibits any in-water construction work between Feb. 1 and May 31 to protect fish habitats.
Some limited dredging work between the two piers is expected to start in January. Marlin Peterson, a project coordinator with AECOM, said the dredging is a precursor to depositing the material between the two piers.
AECOM serves as the construction administrator for the Connecticut Port Authority.
Design for the modernized State Pier calls for one large Central Wharf area spanning the existing pier and the older Central Vermont Railroad Pier. The work is funded by the state and offshore wind partners Ørsted and Eversource, and State Pier will be used as a staging area for offshore wind projects.
Marlin said the total estimated costs for the construction is $171.7 million, with an additional $32.1 million for the final dredging.
The total remains under the $204 million “Targeted Guaranteed Maximum Price” for the project set by construction manager Kiewitt in April. That figure includes $193 million for construction and $11 million for contingency. There is an additional $31 million for project soft costs that include construction administrator fees, design, permitting, environmental mitigation and a railroad property lease.
Port authority board Chairman David Kooris indicated that work is being done to finalize the timeline for the project. The “substantial completion date” is Jan. 31, 2023. While costs of construction remain on track, Kooris said there may be cost implications of having workers on the project for longer than anticipated.
“We remain diligent and confident in our ability to deliver the project in a timely and cost-effective way,” Kooris said.
Port authority critic Kevin Blacker during Tuesday’s meeting continued to question projected costs of the project, which have risen from initial estimates of $93 million.
Kooris on Tuesday introduced Noel Petra, deputy commissioner of the state Department of Administrative Services, who is taking the lead on state oversight of the project. The port authority has a memorandum of understanding in place with both DAS and the state Office of Policy and Management for management and support services related to construction and procurement activities on the project. Petra replaces Kosta Diamantis, former deputy secretary of OPM, who was removed from his post by the governor’s office and retired in October.
Petra, in a statement, said work is being done to finalize the completion schedule. “We look forward to embarking on the final phases of construction on one of the most significant infrastructure projects underway in New England.”
While obtaining a permit is considered good news, board member Felix Reyes, director of New London's Office of Development and Planning, suggested that the port authority do more to give the public confidence.
New London has been celebrating the project and is reaping some financial benefits from a host community agreement with Ørsted and Eversource. But Reyes said the port authority continues to struggle with public perception.
“With any municipal government or state project, there are always going to be people that are unsure or questioning,” Reyes said. “What are the marketing efforts in regard to educating the public? Getting them excited, giving them some ownership.”
The port authority has updates on the State Pier project available on its website, statepiernewlondon.com.
Funding announced for Connecticut’s airports, highways and bridges under infrastructure law
Federal legislators announced funding under the new federal infrastructure law to benefit airports across the state, including the Groton-New London Airport, and for roads and bridges.
Connecticut will see more than $665 million in highway funding and almost $12.5 million for airports this fiscal year under the Infrastructure Investment and Jobs Act for projects, with additional funding expected over a five-year period, according to news releases.
“This first round of funding will significantly improve Connecticut’s roads and bridges, reducing congestion, cutting costs for drivers, and creating and sustaining quality jobs across our state," Sen. Richard Blumenthal, D-Conn., said in a statement.
U.S. Rep. Joe Courtney, D-2nd District, said the prior federal transportation funding stream, Fixing America's Surface Transportation Act, also known as the FAST Act, signed by former President Barack Obama in 2015, had expired on Oct. 1.
The new infrastructure law broadens funding to include items such as airports and investment in broadband also provides certainty in funding projects on the state Department of Transportation's priority list, such as the Haddam Swing Bridge and the Gold Star Memorial Bridge, he said.
State Department of Transportation Director of Communications Kafi Rouse said the state DOT has been planning since August to ensure the DOT is prepared for an influx of federal infrastructure money.
"The infrastructure bill will increase our traditional base funding programs, providing us with an opportunity to go beyond current planned projects and ensure we can put equity, safety, and sustainability at the forefront of our efforts," she said by email. "As required by federal law, the agency's capital planning process will involve the public, the legislature, and the local Metropolitan Planning Organizations in determining which programs and projects advance. As with everything we do, the safety of Connecticut residents, workers, and commuters, is at the center of our efforts."
The Gold Star Bridge is listed as a major project called for under the DOT's existing base capital program, according to a document she provided.
Sen. Chris Murphy, D-Conn., said in a statement that the new law "made the biggest, one-time investment in infrastructure in our nation’s history," and the first round of funding for roads and highways will provide "much-needed upgrades to our infrastructure while also cutting commute times, making traveling safer, and creating lots of good-paying jobs."
Airport funding
The Connecticut Airport Authority Executive Director Kevin A. Dillon said in a statement that the funding, through the Federal Aviation Administration's Airport Infrastructure grants, represents a "historic investment in Connecticut's airports."
“This is great news for our regional airports in Willimantic, Danielson, and Groton, and for all the local businesses and workers who utilize them," Courtney said in a statement. "Our regional airports are responsible for helping eastern Connecticut businesses from the Quiet Corner to the Shoreline produce millions of dollars in economic output each year, and now funding through our bipartisan infrastructure bill is going to help them grow and become even more efficient — that means increased economic activity, more output, and more jobs."
Courtney said the funding will help local airports begin a list of projects, from "increased runway capacity to overdue tarmac upgrades."
The $295,000 for Groton-New London Airport will help with purchases for new snow-removal equipment, "improving safety and increasing efficiency," according to a release from Courtney.
The funding, including $9,012,737 for Bradley International Airport, will help Bradley with "building capacity for airline growth so we can continue offering service to new nonstop destinations across the country and globe," Dillon added. Bradley is expected to receive $45 million over the five years, according to a release from legislators.
The other funds will "provide for important safety and airfield investments in airports across the state," Dillon added.
In a statement, Blumenthal said the funding will "help to increase flights to destinations around the world while improving safety and security and enhancing the overall customer experience."
Murphy noted in a statement that the money will help airports "increase their capacity, making travel much more convenient."
Gov. Ned Lamont said in a statement that Connecticut's share of the Infrastructure Investment and Jobs Act will "turbo-charge the ongoing Connecticut Comeback," and the funding for the airport "will accelerate much-needed safety, capacity, and airfield improvements."
Tweed-New Haven will receive $1,031,683 "for incredibly important projects that will help create jobs, enhance safety, protect our environment and improve the overall passenger experience,” Sean Scanlon, executive director of the Tweed-New Haven Airport Authority, said in a statement.
The Igor I. Sikorsky Memorial Airport in Bridgeport will receive $763,000 to fund "coastal flooding resiliency efforts as well as opportunities to expand safety measures and optimize airport services for new and existing users," according to a statement from Michelle Muoio, the airport's director.
Danbury Municipal and Waterbury-Oxford each will receive $295,000; and Danielson, Hartford-Brainard, Meriden Markham Municipal, Robertson Field and Windham each will receive $159,000, according to the announcement.
According to the news release from legislators, the grant for Bradley specifically will help fund a project to "streamline the current baggage detection system, which inconveniences passengers by forcing them to carry their own checked luggage and constrains available ticket counter space," and "add additional gate and concession space." The federal inspection services facility may potentially be relocated in the future.
The funding also will help with a second project to reconfigure passenger circulation, the release states.
Pet products retailer Chewy proposes massive Windsor warehouse as part of $175M expansion
E-commerce pet products retailer Chewy Inc. has proposed building a massive, 750,000-square-foot fulfillment center in a Windsor industrial park to help serve its growing customer base in the Northeast.
According to documents submitted to the Windsor Town Council, Chewy would work with a landlord to purchase 93 acres of land at 2000 Day Hill Road, with the property owner later building and leasing the finished facility to the company.
Between construction and equipment, town planners anticipate a total investment of around $175 million in the site.
A prospective timeline for the project, should everything move forward, expects the facility to be operational by the third or fourth quarter of 2023. Chewy plans to create between 800 and 1,000 full-time jobs there within three years, with total annual payroll in year one estimated at $31 million.
According to its application for the project, Chewy is requesting tax abatement and permit fee waivers totaling $3.9 million. It is also in talks with the state for incentives.
Chewy said it had considered sites in the Boston and Baltimore areas, and in Enfield and Windsor Locks, before settling on the Day Hill Road location.
Apprenticeships only work when there’s a commitment to the apprentice
Keith Brothers
On December 6, State Rep. Tim Ackert, (R – Coventry), published an opinion piece in the Hartford Courant titled, “We have skilled apprentices ready to join the workforce, but state regulations are preventing them from being hired in Connecticut.” Rep. Ackert claims that weakening or repealing the state’s apprentice hiring ratio would resolve a labor shortage in the licensed construction trades. He’s wrong.
Rep. Ackert is a member of the General Law Committee, which has cognizance over the Department of Consumer Protection, the agency that administers occupational licenses. The General Law Committee created a working group to study apprentice ratios. The non-union contractors on the working group – the loudest opposition to apprentice ratios – are represented by the Associated Builders and Contractors (ABC), an anti-union association that lobbies the legislature against good workplace standards, including licensing. It’s worth noting that ABC presented Rep. Ackert with their 2021 Legislator of the Year award. It’s also worth noting that Rep. Ackert owns his own nonunion electrical company.
Construction apprenticeships generally take between three to five years to complete. Union programs are robust, with on-the-job training and classroom instruction. Apprentices are paid on a scale, depending on what year of their apprenticeship program they’re in. Each year, the apprentice’s pay moves up until they complete the program, wherein they earn the full journeyperson rate.
In Connecticut, the Building Trade unions and their contractor partners invest over $25 million into their apprenticeship programs annually. This is an example of a partnership between labor and management that has resulted in successful careers throughout our state.
The word “apprenticeship” has been widely adopted by legislators and state and municipal officials, and we welcome this renewed focus on apprenticeship programs. But apprenticeship programs are only successful when apprentices are given the opportunity to complete them and graduate to a journeyperson status.
The completion rates among the nonunion construction sector are abysmal. Whereas the union completion rates are over 50%, and in some trades around 80%, the nonunion completion rates are well below the national average, hovering below 40%. It’s an embarrassment. It’s also why one contractor on the Working Group suggested that apprentices leaving his company for higher paying jobs not be calculated against his completion rate. That’s outrageous. If a nonunion company offers such low pay that they cannot attract and retain a workforce, that’s on them.
Our apprenticeship programs will be undermined and rendered moot if they are simply used as a ploy to hire cheap labor. Connecticut’s construction workforce represents some of the best trained workers in the nation. We want to hire and train more apprentices and create more opportunities to face the ever-changing needs of our industry. But hiring an apprentice cheaply and then laying them off before they have an opportunity to complete a program is wrong and unethical.
We agree with Rep. Ackert that the construction industry is aging and we need to attract a younger, more diverse workforce. Construction Dive published an article on October 27, 2021 titled, “Construction’s career crisis: Can the industry attract millennials and Gen Z?”, offering that, “”If you’re a drywall contractor and looking for people, drywall finishing is a skill … you can’t just take someone from off the street,” said Brent MacDonald, an instructor in construction management at Indiana State. “You have to train them to be a drywall finisher and pay them accordingly. And now that we have this competitive talent market, you can no longer pay someone $13 an hour.”
Apprentice ratios are not a hindrance to hiring construction workers. Wages and benefits are. And yet, Rep. Ackert, and some of his colleagues, have submitted countless bills seeking to weaken or repeal our state’s prevailing wage law, which protects construction workers from exploitation and poverty.
So, what’s this really about? The nonunion sector wants to be able to hire apprentices at a lesser rate. They don’t want to be held to any standard to ensure that apprentices complete their program. And they want to repeal prevailing wage protections. What Rep. Ackert is really suggesting is a race-to-the-bottom and workers are the ones who will lose the most. This is not a framework for how to respond to a worker shortage. It’s a blueprint for how contractors can more easily enrich themselves.
If you’re a construction worker who has an employer advocating for cheap labor, we have a solution – unionize!
Connecticut OKs $839 million in transportation projects. See what projects made the list
HARTFORD — Even without highway tolls to provide the funding, Connecticut is moving ahead with $839 million in transportation projects across the state.
The 10-member State Bond Commission approved all 58 items on a detailed, 76-page agenda Tuesday afternoon at the final meeting of the year.
The projects will be constructed in addition to others that will be funded through Connecticut’s share of the $1.25 trillion bipartisan infrastructure package that was recently signed into law by President Joe Biden.
The state and federal projects, Lamont said, will allow Connecticut to “enter a new era of transportation upgrades that will finally address some of our state’s most congested areas and transform our roads, bridges, rail, buses, ports, and airports into an efficient network that supports the needs of businesses and the people who live here.’'
Lamont noted that the Wall Street bond agencies have upgraded their ratings, allowing the state to borrow money at a lower cost. Part of the reason is the state has generated operating surpluses over the past three years and the state’s rainy day fund for fiscal emergencies is growing. The fund is powered mainly by the continuing boom in capital gains taxes from stocks on Wall Street.
The items that were approved included:
New locomotives
$280 million for new locomotives to replace older models in an effort to speed trains to New York City — one of Lamont’s goals since taking office. The plan is designed to improve service on the Metro-North Commuter Railroad, where commuters have complained about service for years.
New train stations
$35 million for a new Enfield Train Station that would be matched by federal money under a pending application.
$12 million for the Derby-Shelton train station that will be matched by a federal grant that has already been approved by federal officials.
New electric buses
$2.5 million, with $10 million in federal incentives, to purchase new battery electric buses in an effort to retire the aging, diesel-powered buses in the CT Transit fleet. The state has an estimated 6,000 diesel-powered school buses, which cost about $110,000, and did not unveil its first electric school bus until this year. A full-sized electric school bus could cost $350,000, officials said.
Buying new vehicles and starting to develop a new transit facility in Middletown, among other towns.
Highway projects
Reconfiguring the complicated interchange where I-91, I-691 and Route 15 come together in Meriden as travelers are seeking to head south to Fairfield County. The congestion at this spot has led to multiple accidents through the years.
Studying the highly congested area of Interstate 95 between exit 19 in Fairfield and exit 27A in Bridgeport in an attempt to make safety improvements as drivers head to and from the busy Route 8 corridor in Bridgeport.
The transportation items did not generate any controversy and were approved unanimously by the bipartisan commission.
Local projects
Tuesday’s agenda also included approval for $52 million for various improvement projects in a program that is coordinated with local officials, including:
Hartford: Boce Barlow Bridge and Main Street pavement project
Meriden: downtown paving
Trumbull: traffic signal improvements on Route 111
Another $30 million to municipalities for projects that included the following projects:
Canton: bridge on Washburn Road over Jim Brook
Durham: bridge on Picket Lane over Hersig Brook
Madison: bridge on Garnet Park Road over Bailey Creek
Norfolk: bridge on Mountain Road over Norfolk Brook
State transportation commissioner Joseph Giulietti said the projects would create jobs and allow the state to compete for more federal money.
“The federal infrastructure bill is a game-changer, and the governor is making sure the cards are stacked in Connecticut’s favor,” he said.
The meeting, which lasted more than 90 minutes, was among the longest of the year for the bond commission as officials finished their work for the calendar year.
Besides transportation, the commission voted in favor of $124 million in business-related projects.
Downtown Crossing project in Hartford
The commission awarded $13.6 million for the high-profile 228-unit residential project next to Dunkin’ Donuts Park. The proposal also includes a new, oversized, 541-space parking garage that will cost $9.7 million in an overall $53 million project overseen by the Capital Region Development Authority. Another 240 units could be constructed in another phase in the future, and those residents would also use the parking garage.
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Studios would be about 400 to 600 square feet, while two-bedroom apartments could be 1,000 square feet.
“It seems like an obscene amount of money,” said Sen. Henri Martin, a Bristol Republican who calculated the costs at $188,000 per unit and voted against funding. “It just seems like a lot of money. ... I think we need to start looking at some of these costs. We should not be paying $200,000 a unit.”
Hartford Hilton renovation
The famed Hartford Hilton on Trumbull Street in downtown Hartford will be partially converted into 147 apartments, with 166 rooms retained for the existing hotel next to the XL Center. The proposal calls for $11 million in state loans, and about 20% of the apartments will be set aside as lower-priced, affordable units.
State treasurer Shawn Wooden, the former city council president, said he wants to make sure that as many as possible of the hotel’s 122 unionized workers, including many Hartford residents with at least 15 years on the job, are able to keep their jobs at the to-be-named Doubletree hotel. Wooden and Rep. Sean Scanlon, a fellow Democrat, are pushing for any displaced workers to be reassigned to other hotels.
The hotel has been operating largely on federal Paycheck Protection Program money to keep the doors open, and officials said it is important to keep the hotel open for events nearby at the XL Center and Convention Center.
“We’re going to try to make this work,” said Michael Freimuth, the CRDA executive director who oversees the project.
Brownfield cleanup
An ongoing brownfield cleanup program will continue with $25 million for grants and low-interest loans so that contaminated properties can be restored for redevelopment. In spring 2022, the competitive program will start taking applications for the next round of funding.
Small Business Express
The state will set aside $21 million to help upstart small businesses in an effort to create jobs in the private sector as the state has had sluggish job growth for the past three decades.
(HARTFORD, CT) – Governor Ned Lamont, Congressman Joe Courtney, and Mayor Michael Passero today are applauding the Connecticut Port Authority Board of Directors for issuing a notice to proceed to its construction manager to begin permitted dredging activities as part of the State Pier Improvement Project in New London.
“This project positions New London to become the premier commercial east coast hub for the offshore wind sector,” Governor Lamont said. “Connecticut remains a leader in the transition to renewable energy and the fight against climate change. This exciting opportunity was enabled by the efforts of the Connecticut Port Authority and remains supported by a project management team composed of leadership and staff from our administration. The local investment, job growth, and development opportunities associated with this project are real, as evidenced by the Economic Development Administration’s recent announcement of a competitive grant award supporting the offshore wind supply chain to the South Eastern Connecticut Enterprise Region. I am proud to see this project advancing, and I am especially proud of our private sector partners working with us to make this project a reality.”
“Today’s milestone will start the physical transformation of State Pier that will connect New London to our nation’s burgeoning new green economy, which will be at the center of growth in the 21st Century,” Congressman Joe Courtney said. “Today’s announcement is the result of years of work and collaboration to modify and improve the configuration of the pier, as well as its financial contribution to the City of New London, so that it will now co-exist with the city, the maritime economy, and rail infrastructure in a fair and equitable manner. At the national level, this project is a posterchild example of how the federal renewable energy tax credits – which were extended in December 2020 – can stimulate private investment in the offshore wind energy sector. That incentive, along with Governor Lamont’s stalwart involvement and Mayor Passero’s tenacious efforts to make sure New London will share in this new opportunity, is what’s helped bring us to this point today.”
“The recent decision by the U.S. Army Corps of Engineers represents an exciting step forward to finally getting this State Pier project off the ground and creating a significant economic development opportunity for New London,” Mayor Passero said. “Our city may not be large, but it has always played a major role in Connecticut, punching above its weight, and now the eyes of the world will be on our city as we become a hub for the production of technology to support renewable energy. I thank Governor Ned Lamont and Congressman Joe Courtney for their partnership and ensuring New London had a seat at the table throughout this entire process.”
Contractors Brace for Boom in Renewable Energy Projects
LUCY PERRY
The outlook for energy-related construction is a positive one. The renewable energy sector is preparing for a boom over the next five years and the fossil fuels industry is fighting hard to hold its place in the battle for power. That all bodes well for the construction industry, which will greatly benefit from the expansion, if longstanding pricing and materials acquisition challenges can be overcome.
Noting 2021 has been another banner year for wind and solar construction, the International Energy Agency (IEA) is forecasting a five-year sector boom even in the face of supply chain issues, materials costs and COVID-19 restrictions.
According to MIT Technology Review, renewables will make up 95 percent of overall capacity growth in the power sector over the next five years.
Demand for energy is growing in general, so fossil fuels cannot be counted out of the mix.
"It still remains to be seen how quickly carbon-free sources will become the dominant source of electricity globally and begin rapidly supplanting coal, natural gas and other polluting sources," according to MIT.
The decline in electricity generation from coal has opened up opportunities for other power sources. BloombergNEF reports that solar, hydro and wind generation accounted for all the growth in power generation last year. This while coal, natural gas and nuclear output declined.
Citing improved economics, increased national emissions reduction commitments and domestic policy, the IEA revised its renewables estimates for 2026 upward more than 40 percent higher than 2020 numbers.
"China, Europe, the U.S. and India will account for nearly 80 percent of the added renewable capacity," reported the IEA.
To meet the global 2050 goal of a net-zero energy sector build, average annual renewables additions will need to double over the IEA's five-year expectations. More aggressive climate policies and goals; cheaper carbon-free sources; and fast-happening technologies to balance out fluctuating renewables on the grid will all be necessary, said MIT.
The industry must overcome several "policy uncertainties and implementation challenges," noted the energy agency. Everything from permitting and financing to grid integration and social acceptance could create challenges.
"Current increases in commodity prices have put upward pressure on investment costs, while the availability of raw materials and rising electricity prices in some markets pose additional challenges," said the IEA, adding it expects those challenges will not be impossible to overcome.
Feds Are Here to Help
The Infrastructure Investment and Jobs Act (IIJA) includes major programs that bode well for construction contractors working in the energy sector, from support for electrification of the transportation system to building out the transmission grid and renewable power.
"The IIJA creates major new investments programs, touching nearly every aspect of the energy industry," wrote Beveridge & Diamond environmental law firm.
"Companies should pay close attention to these programs, both as a potential source of grants or other financial support, and for the systemic impacts programs of this size are likely to have on the industry."
Contractors should take notice, too.
"The IIJA's energy and climate-related provisions are numerous, and the details for implementation will be important going forward," wrote the law firm in detailing those provisions.
The bill appropriates $7.5 billion to support construction of electric vehicle charging infrastructure, hydrogen and natural gas fueling infrastructure and propane fueling infrastructure for medium- and heavy-duty trucks.
The IIJA aims to address climate change by improving infrastructure resiliency or mitigating the adverse effects of climate change. The act promotes construction of new electric transmission and easing regulatory barriers to transmission development, earmarking $65 billion for these purposes.
Specific provisions include a $5 billion grant program to support hardening the grid against extreme weather, wildfires and similar hazards. Grants may be used for a variety of measures, such as undergrounding or relocating electric lines and constructing microgrids and electricity storage systems.
The legislation clarifies that federal disaster assistance can be used to fund repairs to wildfire-damaged electric systems and that repairs may include undergrounding or adding fire-resistant equipment, according to Beveridge & Diamond. It also authorizes the construction of transmission facilities to increase the transfer of renewable power between Canada and the United States under the Columbia River Treaty.
The IIJA includes a grant program to support utilization of captured carbon in new products, loan guarantees and grants to expand pipelines that transport captured carbon to sites where it can be utilized, a new program aimed at supporting large-scale commercialization of carbon capture technologies, and amendments to the permitting process for carbon sequestration projects.
The legislation expands federal support for the use of hydrogen as an energy source, said Beveridge & Diamond. It also includes federal support for developing at least four clean hydrogen hubs that would promote new technology and commercialization of that technology.
Hydroelectric power, chiefly the installation of new generation on existing dams or improving the safety and environmental performance of existing dams, is included in the legislation.
The new bill revives a DOE program that encourages new small hydro generation on existing dams and conduits such as irrigation canals. It includes the addition of new generators to an existing dam or conduit or the addition of a small generator to a FERC-licensed dams in areas that lacks grid access, has frequent outages or high electricity prices.
The new bill extends an existing DOE program providing incentives for improvements to hydro facilities that increase their efficiency by at least 3 percent.
Incentives for improvements to existing hydroelectric facilities that would support capital improvements also are included.
Programs designed to reduce the economic effects of shuttered and abandoned fossil fuel facilities are a part of the IIJA. One specifically targets demonstration projects for construction of renewable energy facilities on abandoned mine sites.
In addition to expanded energy construction included in the IIJA, President Biden's proposed federal tax credits extension in the Build Back Better bill and national and corporate efforts to meet EU emissions targets are factors in the IEA forecast revision.
The law firm of McDermott Will & Emery (MWE) noted that with the federal government's procurement power the executive order to meet the 2050 carbon-neutral target could "transform clean energy markets while achieving ambitious climate goals."
Those goals include 100 percent carbon pollution-free electricity by 2030; zero-emission vehicle acquisitions by 2035; net zero emissions from federal procurement no later than 2050; and a similar building portfolio by 2045.
"The executive order and the administration's procurement plans are a potential bonanza for clean energy and electric vehicle companies," said MWE. "The federal government buys $650 billion in goods and services annually in addition to a real estate portfolio of more than 300,000 buildings and a fleet of more than 600,000 cars and trucks."
To achieve the 100-percent carbon pollution-free electricity goal, MWE said the federal government will buy power directly from utilities, enter into power purchase agreements with generators and develop onsite generation on federal real property.
"Meeting this goal will spur the development of more than 10 gigawatts of new clean electricity production by 2030."
The executive order directs that at least 50 percent of that power must come from locally sourced 24/7 carbon pollution-free electricity. The sourced electricity must match actual consumption on an hourly basis and be produced within the same regional grid where the energy is consumed.
"The McDermott energy team has seen such calls for around-the-clock clean power supply grow in recent years — particularly from large corporate energy buyers — including a number of leading technology companies. Those same technology companies have urged the federal government to procure clean energy on a 24/7 basis," said the law firm.
Though a boost in construction work natural follows all of this policy implementation, it comes with business operations challenges for construction contractors.
According to MWE, the fed will expand its consideration of embodied emissions in construction materials and launch a Buy Clean policy for acquisition of materials with lower embodied emissions.
The federal government also will require its major contractors to publicly report their greenhouse gas emissions, plans to reduce emissions and risks faced by climate change, said MWE.