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    Saturday, May 04, 2024

    Progress? Controversy? Both? A new year for State Pier.

    The forecast that the revitalization of State Pier in New London will be largely complete by February, and ready by spring to support offshore wind-energy development, could either mark a positive turning point for the controversial project or just serve as a prelude to more disappointment and criticism.

    Connecticut Port Authority Executive Director Ulysses Hammond made the announcement at the authority’s December meeting that the project is on schedule and should be ready to accommodate the large vessels that will transport the components to build a dozen wind turbines for the South Fork Wind field.

    The South Fork project off Long Island by the Ørsted-Eversource partnership is just the start of what is expected to be extensive construction of wind fields off the Atlantic seaboard. New London’s prime location and lack of any bridges to interfere with floating the towering turbines out to sea, make it a preferred departure point. The city’s participation in offshore wind development should provide a significant economic boost to the region and diversify an economy overly dependent on the defense industry.

    But a lot could go wrong. Given the past handling of the project by the port authority and the state, the surprise would come if things went smoothly.

    For one thing, Hammond’s forecast could prove overly optimistic. If the pier is not ready by spring, Orsted and Eversource would turn to contingency plans. They must have them. It is not hard to imagine the criticism and legal entanglements that would generate.

    And hanging over the port authority are ongoing investigations.

    In March, the port authority received a subpoena from a federal grand jury in New Haven seeking records dating as far back as the authority’s origins in 2016. While the Department of Justice investigation appears focused on potential past misconduct, rather than the current authority administration, any resulting indictments would further damage the authority’s image and could raise questions about the legitimacy of contracts signed back then.

    Meanwhile, the State Contracting Standards Board — a watchdog group — is reviewing the authority’s decision to award the Kiewit Corporation, based out of Nebraska, the job of serving as the pier project construction manager while also allowing it to bid for subcontractor work. Kiewit recommended itself for five subcontracts, providing the bulk of the work in redeveloping the pier.

    If this were a state project being overseen by the Department of Administrative Services that cozy arrangement would be prohibited. As a quasi-public agency with greater leeway to move projects along,

    it appears the rule did not apply to the authority. The review by the contracting standards board is likely to result in recommendations to ban all such arrangements when state money is involved, including those projects pursued by quasi-public agencies.

    In fact, if the stink is strong enough as these probes reach conclusions in 2023, it could motivate the legislature to return administration of the State Pier and other ports to the Department of Transportation.

    Also unknown is whether Connecticut will see the large boost in job creation and business development Lamont has promised the new offshore wind industry will generate. An industry consultant, speaking to the Chamber of Commerce of Eastern Connecticut in October, warned Connecticut’s efforts to attract industry investors is disjointed.

    More hopeful was the recent three-day workshop held in December at the Hilton Mystic hotel. Sponsored by Revolution Wind, the Ørsted-Eversource partnership, and the state Department of Economic and Community Development, and hosted by Southeastern Connecticut Enterprise Region and AdvanceCT, it provided information on how local businesses can feed into the supply chain that will be necessary to serve the wind-power industry. Such continuing communication with the region’s business community is vital.

    The pier project is now estimated to cost $255.5 million, with Orsted and Eversource kicking in $77.5 million, about one-third. That price does not surprise me for such an undertaking. In addition to helping pay for the project, the Ørsted-Eversource partners signed a 10-year lease — $2 million annually — to use the pier for its offshore projects.

    Once redeveloped, the state will have a vastly improved port facility in New London that will be able to accommodate larger ships and heavier cargo.

    If the state and port authority had framed that as the deal from the start — a $250 million project with private partners kicking in one-third — the critics may not have been as numerous or as loud. Instead, the early estimate was $93 million, which in retrospect seems laughably low. The project expenses have steadily grown since, while the percentage shared by the private sector shrunk. Ørsted and Eversource contractually limited their exposure to overruns.

    If construction concludes and operations begin in 2023 and if, a decade from now, State Pier is bustling with activity in support of offshore wind and as a cargo destination, the sketchy origins of its redevelopment may be nothing more than a curious footnote.

    However, if controversy continues to plague the authority, if construction deadlines slip and costs keep rising, and if over time the level of activity and economic benefits fall short of expectations, boondoggle may become the moniker attached to the costly retrofitting of State Pier.

    The coming year could go a long way in determining which way this story ends.

    Paul Choiniere is the former editorial page editor of The Day, now retired. He can be reached at p.choiniere@yahoo.com.

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