Manchester Officials Cut Ties With Parkade Developer

Manchester CT

25 January, 2022

8:10 PM

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MANCHESTER, CT — Manchester officials said that, as of Tuesday, the town has ceased negotiations with Manchester Parkade I principals for the development of the Broad Street Parkade property. Over the past two years, the town, and its Redevelopment Agency worked side by side with the developer to achieve "a shared vision for the site," with parties investing "significant time and resources" into the project, Manchester Mayor Jay Moran said. "The past two years have presented unique challenges to all of us, including those in the developmentindustry," Moran said. "Unfortunately, while we have worked together in good faith, thedeveloper has struggled to move the project forward. We were hopeful we could work out a newagreement after the original development agreement expired, but it is now clear that the project asenvisioned was not progressing as we had hoped." Moran said he is confident that the Redevelopment Agency will "go back to work" and locate a new developer. "The Board of Directors, Redevelopment Agency, and town staff remain fully committed to developing the Parkade site in a way that benefits the Manchester community," he added. General Manager Steve Stephanou took the high road. "The town will take this as an opportunity to move forward in a new direction, balancing the town'sstrategic development goals for the Broad Street area, and existing market conditions," he said. "The Town and RDA recognize and share the community's frustration with these timing delays and are eager to move forward in delivering progress on the Parkade site." He saids he expects, over the next few weeks, to announce where the Parkade project is headed. "The RDA has decided that it's necessary to end discussions with the current developer," saidRedevelopment Agency Chairman Aaron Wlochowski. "While we are disappointed to end ourrelationship with Manchester Parkade I, the RDA has always worked in the best interest of the Town andits taxpayers. We have stayed true to the original Redevelopment Plan and bond fund approval. We thankManchester Parkade I for their work on this project and wish their development team well." Town officials and Manchester Parkade I principals signed a development agreement in April 2021, which wasextended twice. It then lapsed prior to the developer securing the necessary financing to closeon the property, town officials said. "The recent changes in market conditions and slow project pace required the town tocarefully consider its options," Stephanou said. "Ultimately, the Town and RDA feel that a change in direction on the project is the best way to achieve the desired development of the site." Redevelopment of the Broad Street Parkade is the last major piece of the Broad Street Redevelopment Plan yet to be completed. Since 2010 the town of Manchester has: Acquired the Parkade and demolished blighted retail buildings.Reconstructed Broad Street itself in partnership with the state of Connecticut.Negotiated and terminated cross-easements and purchased subsequent property to allow for redevelopment.Completed the Center Springs Park expansion, including installation of the Cheney Trail bridgePurchased the Nichols property, demolished the blighted buildings, and commenced with environmental remediation in partnership with the state.Town officials said they anticipate "renewed development interest" in the site. Staff will be working with the RDA to for a new development strategy to "take advantage" of the current market. "This is an attractive opportunity for a developer to create a signature project at an excellent location in an established market," said GaryAnderson, Manchester's director of planning and economic development. "While we regret that we are unable to proceed with the current development group, I'm confident that the hard work of the RDA and Town Staff will lead to a positive outcome for the community and Broad Street. Seeing renewed private development on Broad Street remains one of the town's very top economic development priorities."