CT: Massive CT redevelopment to unfold slower than hoped. Federal transportation funding could be issue

Plans for a prominent downtown corner that envision a new development anchored by a regional bus transit center could unfold far more slowly that city officials had hoped, now that the latest round of a state grant program does not include funds to tear down a vacant, decaying structure on the site.

The city had sought $22.3 million from the state’s Community Investment Fund to demolish the One Talcott Plaza office and parking garage complex between Capital Community College — the former G. Fox & Co. department store — and the burgeoning North Crossing project around Dunkin’ Park, the city’s minor league ballpark.

Instead, at this week’s CIF board meeting, the redevelopment project — estimated to cost $200 million — received a planning grant of $250,000.

“It’s not anti- the Talcott project,”  Speaker of the House Matt Ritter, a Hartford Democrat, who co-chairs the CIF board, said, after the meeting. “I don’t think people thought we were ready for a larger portion yet, so these planning grants are a tried-and-true starting point to get people up-and-running. The demolition and some of that stuff might have been a little fast.”

CIF, which seeks to foster economic development in traditionally underserved communities, approves grants on a competitive basis. This week, 35 projects and programs were approved for funding, totaling $77 million. The projects included $10 million for the redevelopment of the languishing Enfield Square mall.

The next round of grants will be voted on Sept. 30.

“There are no overnight solutions to any of the challenges that we face in the city of Hartford,” Hartford Mayor Arunan Arulampalam said. “This project continues to move forward, even if a little slower than initially hoped for.”

The city had hoped to tear down the blighted structure later this year, but that now appears less likely.

The state Department of Economic and Community Development, which administers the CIF program, said, in a statement Tuesday: “ One Talcott Plaza is an ambitious redevelopment project that will require careful planning to secure the necessary funding and fully realize the economic development potential of the site.  This is a critical first step in revitalizing this underutilized property.”

Ritter said there also were some concerns about the funding that would come through the state Department of Transportation for the project.

The redevelopment would be structured as a public-private partnership. The site is owned by Hartford-based LAZ Investments, an arm of parking giant LAZ Parking, and Shelbourne Global Solutions LLC, of Brooklyn, N.Y., downtown Hartford’s largest commercial landlord.

About half the overall redevelopment cost — approximately $100 million — is likely to be devoted to the regional bus center. The new transit center is expected to serve 46 municipalities and vastly improve the bus system in the city, heavily relied on by Hartford residents, 40% of whom do not own a car.

The new transit hub is expected to be financed, at least partially, by low-cost loans or grants through the federal government that seek to encourage transit-oriented development.

But federal transportation funding faces an uncertain future in the administration of President Trump who has wanted to tie the funding to policies on masks, vaccines, tolls and immigration enforcement. Half of Connecticut’s funding for transportation comes from the federal government.

Initially, it was expected that LAZ would build the new transit center and lease it to the state. But uncertainty in federal transportation funding could alter those plans, Arulampalam said.

DOT officials on Tuesday said the department is not seeing delays to projects right now.

“However, if there are sustained interruptions in federal approvals, permitting, and funding, it could have an impact and delay essential construction projects and planning activities,” the DOT said in a statement. “With nearly 600 active projects happening across the state, it’s critical that federal transportation funding and approvals go uninterrupted. We are hopeful for continued and stable federal transportation investments as we work to make our state’s infrastructure and transit systems safer for everyone.”

In addition to One Talcott Plaza, at the corner of Market Street and the eastern end of Talcott Street, the redevelopment area also includes a parking lot at the western end of Talcott Street at the corner with Main Street. The bus terminal would be on the Market Street side.

The plans also call for as many as 400 apartments above parking, plus storefront space bordering Main Street.

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