New Haven Independent

Shartenberg Cleanup Cost Doubles

by Allan Appel | July 17, 2008 9:56 AM | Permalink | Comments (2)

nhidover%20005.JPG If this dancer adorning the fence at 360 State St, aka the former Shartenberg site, aka the Becker and Becker development, were real, the dirt she’d be kicking up well might be contaminated.

At the regular Wednesday night meeting, City Plan commissioners noted that the overall cost of environmental clean-up on the site has now risen to an estimated $3.1 million. In the estimate that was part of the original deal, it was projected to be between $1 and $2 million.

The commissioners therefore were glad to accept an aldermanic recommendation to apply for a grant from the State Department of Economic and Community Development (DECD) for up to $750,000 to close that environmental clean-up gap.

The funds, should they be granted, would come from DECD’s Office of Brownfield Remediation and Development. These grants generally go to projects that are ready to go and provide economic benefits to the city.

Becker + Becker is building a block-long complex of apartments and stores and offices at the Chapel Street site between State and Orange, including a 30-plus-story tower.

In the original development deal, Becker + Becker agreed to do the remediation and the City’s role was to assist and support in the application for state and federal dollars. This application is such an assist.

In the grant summary, city economic development chief Kelly Murphy wrote, “Factors such as rising construction costs and the environmental conditions on the site have caused the construction budget to grow, creating a financial gap. The grant will offset the cost of remediation required… The developer and the City of New Haven are working hard to help close the budget gap as efficiently as possible so construction may begin.”

It was not clear whether the developer was going to pick up the balance of the gap for environmental remediation or whether other grants were being pursued.

The project, Murphy stated, is the largest single private investment, outside of Yale University, in the city’s history.

The commissioners voted quickly and unanimously to approve.

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Comments

Posted by: facChek | July 17, 2008 5:27 PM

According to the development agreement between the city and Becker Development Associates,LLC,

Environmental survey:Page 12 Section 4.1

The developer accepts the property in it's existing condition, and holds the city harmless from any and all liability.

Project schedule: page 41

(1)progress deadline one,
12 months after the date of execution(May 25, 2007) the developer shall deliver to the city a set of design development drawings.

(2) Progress deadline two Construction drawings:
(a)18 months after the date of execution the developer shall deliver a complete set of construction drawings. (By Nov. 25, 2008)

The increase in environmental remediation is the responsibility of the developer, not DECD or the state of Ct. taxpayer.

According to the agreement Becker is late on progress deadline one. The penalty for late filing is $20,000 per incident, paid by the developer to the city. Start the paying Becker.

Unless of course if this is more of the same ole, bid low and ask for changes after you get the contract.

Kelly Murphy oversees this development, we expect more vigilance on her part.

Posted by: Present | July 18, 2008 8:00 PM

Thank you Facheck, for pointing to where in the agreement the cost of remediation falls to those who, if their project is successful, will reap the rewards for decades to come.

You stirred my memory that at the Aldermanic meeting to approve this project, which I attended, the City being relieved of responsibility for unknown environmentals was a selling point from the Administration's supporters to our representatives. How quickly they forget.

Why does Kelly Murphy push for this project to receive any and all possible public subsidy, no matter how impractical or the loss to other projects?

Love the photo graphic fence cover. Gift to the City from Becker and Becker?... surely not public money when plywood would do in this year of fiscal crisis.

Shartenberg Cleanup Cost Doubles

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