CT Construction Digest Wednesday July 13, 2022
Montville commission approves Gateway Project salt facility plan
Montville — The Planning and Zoning Commission unanimously approved a proposed salt storage and distribution facility at a special meeting Tuesday night.
The commission voted 7-0 in favor of the plan at Town Hall; Commissioners Bruce Duchesneau and Anthony Siragusa were absent. The decision, with few members of the public in the audience, comes seven weeks after the commission first heard the preliminary plan for the Gateway Project proposed on May 24.
"It's a step in the right direction," attorney Harry Heller, who represents Gateway Montville LLC, said Tuesday. "And it's an important project for the town, the redevelopment of a major industrial site."
Town Planner Liz Burdick made a motion to approve the application so long as a list of 13 conditions was met prior to project's launch. The conditions include assigning the new street number "131" on all documents and limiting truck traffic to Depot Road only. The developer is required to get an approved zoning permit before starting any work and must pay soil erosion and sediment control fees.
Additionally, the developer will have to install a retaining wall at 55 Dock Road, use the existing pier for marine vessels and put up signs. Future activity at the site shall require new review and approval by the commission and will be required to comply with all local, state or federal permitting requirements. The memo also noted proposed work on train tracks and drainage structures, as well as proposed uses for a small structure referred to as a “guard shack” on the property.
Final plans must be submitted to the Planning Department, and any signage not shown in the plan would require a separate application. The zoning enforcement officer would have to inspect soil erosion and sediment controls at least 24 hours before the start of any work.
Once those conditions are met, work can begin. After construction has started, any major changes would have to be reviewed and approved by the planning director or commission. Burdick added that all comments from the town officials — including the town engineer and Water Pollution Control Authority — were addressed prior to Tuesday's meeting.
"I would reiterate that this is a use permitted as of right in the industrial zoning district so the applicant's obligation is to comply with the site plan requirements under regulations," Heller said after presenting the plan to the commission.
Gateway Montville LLC of New Haven plans to redevelop two former industrial sites on 125 Depot Road, 133 Depot Road and 55 Docks Road, the former locations of AES Thames Cogeneration Facility and WestRock Papermill and Packaging plant. The facility will use the pier already in place to receive shipments via barge and the former coal storage area will be expanded to an approximately 2.3-acre concrete pad that will hold up to 120,000 tons of road salt for sale to municipalities via trucks in southeastern Connecticut, according to documents submitted to the town.
The new facility will fill the void left in the absence of DRVN Enterprises, which previously distributed road salt from State Pier in New London but was forced to leave to make way for an offshore wind-turbine hub.
The first phase of the two-phase Gateway project will include the concrete storage pad and machinery for use in moving the road salt, such as conveyers, as well as a temporary ramp providing access to the pier, scales and a portable building. Water runoff collection and treatment improvements will be made to protect the Thames River from the excess salt.
Phase 2 of the project will raise the grade of a portion of the property at 125 Depot Road to 11 feet above mean sea level using fill. Additionally, the plan includes putting in low-speed railroad tracks used to load and offload freight cars, construction of a new access driveway at 125 Depot Road, installation of a security fence and stormwater management improvements, some of which are required due to potential preexisting contamination in the soil.
F.A. Hesketh & Associates Inc. of East Granby conducted a traffic impact analysis and projected a typical increase of 10 trips per hour to and from the site to 25 per hour in the winter, with occasional pre-storm spikes of up to 65 trips per hour. The report concluded that the roads have the capacity to handle the increase in traffic.
"You have three significant modes of transportation that are accessible and immediately available to this site," Heller said in regards to the nearby interstate, the Thames River and the railway system, "which lends the site perfectly for an intermodal facility."
Scott F. Hesketh — the author of the original May 6 traffic report — was on hand to give a detailed presentation of the study his firm conducted. He was able to answer questions from Commissioner John Poole regarding the increased levels of traffic and its impact on the current flow of traffic. Commissioner Chuck Longton was concerned about the timing of the traffic light on Route 32 and Route 163, though Hesketh assured him it would not need to be changed. He also was able to clarify the number of trucks per hour entering the property, clearing up a misunderstanding by commission Vice Chairman Wills Pike.
David McKay, an engineer with Boundaries LLC who is responsible for overseeing the project, was also on-hand to answer questions from the commission. He addressed all concerns regarding the fill needed in Phase II, among other concerns.
Mark Augur from Gateway assured the commission that the salt will be the same as the salt Montville currently uses and said the size of the salt pile will be similar to the one that once sat at State Pier.
Extended stay hotel planned for Route 2 in Pawcatuck
Stonington — The owner of the La Quinta Inn and Suites hotel on Route 2 in Pawcatuck is now proposing to build an 80-room extended stay hotel just down the street.
Mystic Sahajanand LLC, whose principal is Mukesh Patel, appeared Monday before the Architectural Design Review Board for a preliminary review of its plans for the five-story Extended Stay America hotel on a vacant 8.8-acre site at 321 Liberty St.
It would be located on a lot that borders the Tractor Supply store to the south. The two businesses would share a driveway.
The Architectural Design Review Board asked Mystic Sahajanand to rework some of the exterior materials of the hotel and the return to the board, which then will submit comments to the Planning and Zoning Commission.
The project also would have to be reviewed by the Board of Police Commissioners, obtain permission to hook up to the sewer system from the Water Pollution Control Authority and then receive a special use permit with the Planning and Zoning Commission, which would hold a public hearing on the application. Mystic Sahajanand has not yet filed an application for the special use permit.
Extended Stay America is a Charlotte, N.C.-based firm with 650 locations across the country, according to its website. Its hotels provide apartment-style units with kitchens for longer stays.
The 75-room La Quinta, which borders the Tractor Supply store to the north, opened in 2009. The Tractor Supply store opened in 2010.
HARTFORD — Two of the four developers submitting visions for a major redevelopment near the Bushnell Center for the Performing Arts in Hartford on the largest of a jumble of parking lots have built a total of hundreds of apartments in the downtown area in the last decade.
The two developers are Spinnaker Real Estate Partners LLC of Norwalk and Spectra Construction and Development of New York, associated with Wonder Works Construction Corp., the Capital Region Development Authority said Tuesday.
The field of developers is rounded out by Lennar Multifamily Communities (LMC) of Charlotte, North Carolina, which has an office in Stamford and its architect has worked on the North Crossing project near Dunkin’ Donuts Park; and Michaels Organization of New Jersey, which has an office in Boston, CRDA said.
Michael W. Freimuth, CRDA’s executive director, said the plans submitted by the four developers for the 3-acre lot just east of the renovated State Office Building at 165 Capitol Ave, would cost an average of $110 million to build.
The lot is part of the larger, Bushnell South redevelopment that could eventually have as many as 1,200 residential units — both rented and owned — restaurant, shops and entertainment venues.
The 3 acres is part of a larger swath of parking lots — both state- and privately-owned — and would include a broad, pedestrian promenade with restaurants and space for outdoor events. The promenade would be between a new park adjacent to the State Office Building and a block of apartments and townhouses.
Freimuth said he could not give specific details about each proposal because the quasi-public agency is still reviewing the proposals.
Freimuth did say they are all consistent with a consultant’s vision outlined last year. The focus of the review now underway is to find a partner that can be flexible as the development unfolds, particularly if market conditions change, rather than the project details, he said.
CRDA hopes to have a preferred developer selected this fall, Freimuth said.
Spinnaker Real Estate Partners LLC of Norwalk is already a partner in the Bushnell South redevelopment area with a $63 million conversion of the historic, 55 Elm St. into apartments. Spinnaker also has plans for new buildings on parking lots surrounding 55 Elm that are diagonally across from the 3-acre parking lot.
Spinnaker also is completing the $26 million apartment project at Park and Main streets.
Wonder Works Construction Corp of New York, a partner in the development of 560 rentals in the city beginning with the old Sonesta Hotel on Constitution Plaza in 2011. Wonder Works is now embarking on mixed-use conversions of downtown’s Pearl Street firehouse and the former municipal office building on Main Street across from city hall.
Lennar Communities is a developer of mixed-used properties across 19 states, including Connecticut, according to its website. In Connecticut, Lennar expects to complete a mixed-use, apartment high-rise in downtown Stamford for occupancy this winter.
The Michaels Organization is a developer of mixed-use projects in 35 states, including Connecticut, and the District of Columbia. In Connecticut, Michaels has developed 6 Solomon’s Crossing in New Haven and 11 Crown Street in Meriden.
Some downtown housing developers, including Martin J. Kenny, have been wary of adding another major housing project like Bushnell South before it’s clear how quickly new apartments at North Crossing and along Pratt Street are leased. Kenny is part of the Pratt Street project.
Freimuth said he disagrees.
“You don’t hit a button and development happens,” Freimuth said. “Development is an 18, 24, 36 month process. Realistically for us to get something done and get it launched, we need to start. It’s conceivable that we are 2, 3 years out from brick and mortar.”
Freimuth said the rental market in and around downtown has shown, so far, that it can lease new apartments. CRDA is keeping a close watch on leasing trends and projects could be slowed or quickened depending on those trends.
“This land has been laying fallow for 50 years,” Freimuth said. “Why do we have to keep on waiting?”
Dodge construction index rebuffs recession fears, hits 14-year high
The Dodge Momentum Index (DMI) inched up 0.3% in June to hit a 14-year high for the benchmark that measures nonresidential building planning.
Manufacturing construction starts led the group and reached a record $41.6 billion over the last 12 months ending May 2022. That’s 161% more than the 12 months ending May 2021, according to Dodge data.
This peak is largely due to U.S. onshoring efforts, as more American companies move their manufacturing facilities back to the U.S.
Though the slight increase wasn’t dramatic, Dodge chief economist Richard Branch said it’s another data point that shows a sign of strength in the construction industry.
A total of 27 projects with a value of $100 million or more entered planning in June, according to the release. Year-over-year, the DMI was 9% higher than in June 2021. The commercial component was 11% higher, while the institutional component was 5% higher than one year ago.
Branch added, however, this positive sentiment will soon come under fire, especially as the Federal Reserve’s tightening policy to fight inflation has increased the possibility of driving the economy into recession either later this year or at some point in 2023.
“A new cyclical high in the Momentum Index is a sign that developers feel that projects still have hope of moving forward, despite concerns of an impending economic slowdown,” said Branch in the Dodge press release. “However, this sentiment will be tested in the months to come as higher interest rates eat away at business and consumer confidence.”
Associated General Contractors of America reported a drop in nonresidential projects in May, a third consecutive month of decline. Total nonresidential spending fell 0.6% to $832.5 billion, though it was still up 1% in the last year.
But the jump in the DMI, which leads construction spending for nonresidential buildings by a full year, is largely due to efforts from American companies to bring manufacturing facilities back to the U.S. That includes projects related to electric vehicle factories, chip plants and food related production facilities.
Major manufacturing hubs include the West and South regions, namely states such as Arizona, and Texas, according to Dodge. Major projects include the $9.98 billion Intel chip factory and the $5.98 billion Taiwan Semiconductor factory, both in Arizona.
Dodge forecasts South manufacturing starts to reach $12.82 billion in 2022, a 3% increase from a year ago. In the West region, Dodge expects manufacturing starts to reach $14.39 billion in 2022, about a 47% increase from a year ago.
Gilbane sees slivers of hope for material, supply chain woes
There may be a sliver of good news for contractors as supply chain woes, material price escalations and long lead times for key construction components have begun to improve.
Jay Pendergrass, director of supply chain management and equipment at top 11 contractor Gilbane, issued some upbeat notes in his latest Market Conditions Report looking ahead to the second half of 2022.
“We have seen measures of supplier performance, delivery times, backlogs and shortages are showing some improvement,” Pendergrass wrote in a report issued July 6, highlighting a softening of commodity prices, including for copper, steel and lumber.
Dive Insight:
While not universally positive, Pendergrass’s outlook for 2H 2022 pointed to key areas displaying better conditions for contractors.
“As we move into the back half of 2022, tighter financial markets, slower growth and a continued improvement of supply bottlenecks could lead to a further retreat in commodity prices and an easing in goods price inflation for many equipment and materials,” Pendergrass wrote. “The rate of increase for commodities is slowing and may be peaking in some commodities as we move to the back half of 2022.”
Pendergrass’s outlook comes as the Federal Reserve has promised to raise interest rates even more, on top of the total 1.5 percentage point increase it’s already instituted this year. It’s set to announce its next rate decision July 27.
Meanwhile, some market observers and economists have argued that inflation has already peaked, due to demand softening and some supply side issues being straightened out.
Pendergrass’s market measures provided at least some more data points to support that perspective.
For instance, while deliveries are still delayed across the board, prices have stabilized for copper, glass, steel and stainless steel pipe and fittings. Inventories of plumbing fixtures, notoriously difficult to procure earlier in the pandemic, have also improved.
Q2 2022 Building Materials Update
| Material | Price | Inventories | Deliveries |
| Copper | Stabilizing | Contracting | Delayed |
| Drywall | Increasing | Contracting | Delayed |
| Electrical Equipment | Increasing | Contracting | Delayed |
| Glass | Stabilizing | Contracting | Delayed |
| HVAC Equipment | Increasing | Contracting | Delayed |
| Plumbing Fixtures | Increasing | Stabilizing | Delayed |
| PVC | Increasing | Contracting | Delayed |
| Steel | Stabilizing | Contracting | Delayed |
| Stainless Steel Pipe & Fittings | Stabilizing | Contracting | Delayed |
| Transportation/Shipping/Freight | Increasing | Contracting | Delayed |
SOURCE: Manufacturing & Services PMI Institute for Supply Management Gilbane Supplier Network
At the same time, he noted there were still plenty of headwinds hitting the construction market. Major electrical and mechanical equipment, curtainwall and roofing materials still show lead times of more than six months, for instance.
Material Lead Times
| Material | Lead Time (Months) |
| Major Electrical Equipment | 10-18+ |
| Curtainwall | 9-12 |
| Major Mechanical Equipment | 8-10 |
| Generators | 8-12 |
| Roofing | 6-9 |
| International Fabricated Millwork | 6+ |
| Small Electrical Equipment | 5-7 |
| Small Mechanical Equipment | 4-7 |
| Food Service Equipment | 4-7 |
| Elevators | 4-6 |
| Fire Pumps | 4-6 |
| Entertainment/Recreation Equipment | 3-5 |
| Steel | 3-5 |
| Metal Panels | 3-4 |
| Specialty Door Hardware | 3-4 |
| Lockers | 3-4 |
| Plumbing Specialties | 3-4 |
| Imported Tile and Stone | 3 |
| Ceiling Baffles | 3 |
SOURCE: Gilbane
The war in Ukraine has also intensified shortages of oil, natural gas, fertilizer, aluminum, palladium and titanium. And the impacts of COVID-19 lockdowns in Asia during the first half of 2022 will still play out during the last six months of the year.
Meanwhile, surging demand in the U.S. has led to contractors having to pay workers more.
“Rising inflation poses an additional risk, especially to labor costs where workers have the upper hand in negotiating their position during the balance of 2022,” Pendergrass wrote.
Ridgefield’s Main Street project continues on schedule, night work begins
RIDGEFIELD — The second phase of the realignment of Main Street is progressing well, according to the town.
Work continues without delays at the CVS parking lot near the Main and Prospect streets intersection. During the week of July 11, Richards Construction will dig three test pits along Main Street for fire hydrant relocation and verification of existing water main conditions.
This work will begin at 7 p.m. in the following locations:
1) the entrance to the CVS parking lot, 2) the intersection of Catoonah and Main Street, and 3) the intersection of Bailey and Main Street.
There will be no significant traffic disruption due to this necessary work, according to the town.
The $4 million project is intended to improve traffic flow on Main Street.
For more information, refer to the Main Street Project Fact Sheet at https://www.ridgefieldct.org/office-first-selectman/pages/main-street-project.