Union Targets Steel Point Deal

By Bill Cummings, Connecticut Post, Bridgeport

Oct. 30–BRIDGEPORT — A national union is blitzing City Council members with e-mails, and using an electronic billboard on Interstate 95, to urge rejection of the $1.5 billion Steel Point deal.

A growing campaign by opponents will come to a head tonight when council members hold the only public hearing on a land disposition agreement between the city and Midtown Equities, the New York City-based Steel Point developer. The hearing will begin at 6 p.m. at City Hall on Lyon Terrace. Union members and other opponents plan to hold a rally before the hearing at 5:15 p.m. on the City Hall steps.

A variety of groups are expected to speak against the LDA as now written because they believe the agreement does not call for enough affordable housing, fails to guarantee minority jobs, fails to mandate prevailing union wages for thousands of workers and does not adequately protect the city if the developer later pulls out.

The agreement covers the thousands of apartments, stores and other features to be built on Steel Point. Once the pact is ratified by the council, Midtown would purchase Steel Point.

City officials say they struck the best deal they could with Midtown and further amendments would prompt the developer to walk away.

“People have the right to express their opinions and lobby. But this project is the largest and greatest project to face Bridgeport, and will determine Bridgeport’s future,” said Mayor John M. Fabrizi.

Over the weekend, the Service Employees International Union turned on a flashing billboard near exit 25 and Railroad Avenue on the southbound side of I-95 that asks residents to tell the council to vote against the Steel Point LDA.

“Tell the Bridgeport City Council: Don’t give away $190 million of our tax money to Steel Point Developers,” the billboard says, referring to the amount of public financing. “We want to call attention to the fact that the developer should include good jobs and affordable housing,” said Kate Ferranti, a SEUI spokesperson based in Washington.

The union, which represents hotel workers and service industry workers, also began sending more than 9,000 bilingual e-mails to registered Democratic voters. The council consists of 18 Democrats, one Republican and one independent member.

Under the agreement, 300 units of affordable housing would be built, but only 50 of those would be on Steel Point. The rest would be scattered across the city.

The Steel Point plan seeks to turn the 52-acre waterfront peninsula into a new community of 3,500 condos and townhouses, shops, restaurants, nightclubs, hotel rooms, a conference center, marina slips and offices. Rounding out the more than $1.3 billion in private investment is $190 million in tax incremental financing intended to pay for infrastructure, parking and environmental cleanup on the property, which once housed a steel mill and an electrical power substation. Bonds sold to provide the money would be repaid by diverting more than $377 million in new real estate taxes generated on the site during the next 30 years. The project is estimated to generate $1.4 billion in taxes over the period.

The United Front, which represents groups such as the National Associated for the Advancement of Colored People, ABCD and the Bridgeport Child Advocacy Coalition, is asking Gov. M. Jodi Rell to negotiate a “better deal” for Bridgeport residents.

“You can help us by requiring significant amendments that would bring the agreement into alignment with both the sprit and the letter of state and local law in exchange for continued state financial investment,” the group wrote in an Oct. 25 letter to Rell.

United Front told the governor the Steel Point property was taken from private owners, displacing 273 families. The group asked Rell to make sure minority-owned firms receive a reasonable share of the promised construction work.

The United Front also pointed out that the LDA requires Midtown to build only 500 of the planned 3,500 housing units. After that point, the developer can sell the remaining property. Midtown will purchase the entire site for $4.5 million, far below market value.

Most of the issues raised by opponents have been considered by the council, which is poised to vote on the LDA Monday night. Most expect the pact will pass the council.

A “peace wage” provision, requiring union wages be paid as the multi-phase, nine-year Steel Point project is built, was opposed by the developer. The provision was changed to require a “good faith” effort to pay prevailing wages.

City Council member James Holloway, D-139th, was not impressed with the union’s campaign.

“I didn’t even know there was a billboard,” Holloway said when told of the flashing message.

“I guess they have the right to do what they want. But the council does not negotiate a contract. All we do is review it and vote on it,” Holloway said.

Holloway said under state law workers paid from the public pool of money must receive a prevailing wage, and hiring must follow minority-hiring ordinances. The remaining investment is private and not subject to those laws, he said

“I don’t understand where they are coming from. You can’t make someone hire a union,” Holloway said.

City Council member Robert Walsh, D-132nd, said he plans to continue pushing for amendments, and said he believes all of the Steel Point project falls under the city’s procurement ordinances. “The developer and the city do not believe that’s the case. This watered down version says they must make a ‘best effort.’ That means nothing,” Walsh said.

The councilman plans to offer amendments requiring the city to divert a portion of guaranteed initial tax payments to affordable housing, and divert half of any profits Midtown earns if it sells property.

Bill Cummings, who covers regional issues, can be reached at 330-6230.

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