New London ― Ongoing infrastructure improvements at State Pier have added $7.5 million to construction costs that now exceed $225 million.

The Connecticut Port Authority moved Tuesday to cover the shortfall by shifting available funds, including “a modest contingency” of about $2.5 million, savings on non-construction-related “soft costs” and $3.7 million the authority will remove from an escrow account containing 10 years’ worth of lease payments for the New England Central Railroad property next to the pier.

The authority will shift the last five years of lease payments ― the period from 2028 to 2033 ― to future operating budgets, David Kooris, chairman of the authority’s board of directors, said during a board meeting that was conducted remotely. He said the additional $7.5 million in expenditures does not increase the overall budget for the project.

“The bottom line impact is no additional money from the state,” he said.

The total funding available for the project remains $255.5 million, a sum that includes a $178 million commitment from the state and another $77.5 million from private partners. Over the last three years, the project’s original price tag has more than doubled.

During Tuesday’s meeting, Marlin Peterson, construction manager for AECOM, the consulting firm overseeing the project, described complications encountered during excavation work at State Pier, which is being turned into a staging site for the offshore wind industry. He said timber and concrete foundations believed to have supported warehouse structures had to be removed. Additional demolition, excavation and backfilling of material also were required.

During installation of a foundation wall, underwater obstructions have been discovered, causing delays, Peterson said. Supply-chain issues have caused late delivery of electrical equipment, contributing to adjustments in projected completion dates.

Final acceptance of the completed project is now set for Oct. 30, 2023.

Ulysses Hammond, the authority’s interim executive director, told board members construction activity progressed on each of the project’s major work fronts during October. On the Northeast Bulkhead, the last of four concrete slabs and curbs had been poured in September, completing a heavy-lift platform. Fill placement at the Central Wharf is 95% complete, Hammond reported.

Cashman Dredging & Marine Contracting began dredging on the project site during the first week of October.

“State Pier heavy-lift platform work continues to represent the critical path for completion of the project,” Hammond said.

Current plans for South Fork Wind, the first offshore wind project scheduled to use State Pier, call for vessels to start arriving in the summer of 2023.

“The Northeast Bulkhead’s substantial completion forecast of Feb. 28, 2023, and the Upland/Central Wharf’s substantial forecast of April 10, 2023 are on track to accommodate terminal operations,” Hammond said.

b.hallenbeck@theday.com