Apartment developer’s agreement lapses

NEW LONDON – A developer’s agreement between the city of New London and Breezewood Builders, LLC to construct two six-plex apartment complexes on the corner of Wyman Street and Wolf River Avenue has lapsed.
New London City Administrator Chad Hoerth informed the New London Economic Development Committee about the situation when it met June 23. After discussing the matter, the committee requested that the developer attend the July committee meeting to provide an update directly to the committee.
Hoerth said the construction for the development was supposed to start by the end of 2025, according to the developer’s agreement.
While the city did not previously own the property, the developer’s agreement called for the city to provide a tax incremental district (TID) incentive for the development, Hoerth said.
Hoerth said he asked the developer for a new timeline for the project. The reply the city received stated the construction start date would be pushed back to October of this year. The intention would be for the first building to be completed by the end of 2027. A change in the original plans would also call for one of the buildings to be reduced to three floors instead of the planned four floors. This would be for the building that would include retail space on the first floor.

“If they go three levels total, they can get away with not having an elevator,” Hoerth said. “If they go the fourth floor, you got to have an elevator, which substantially increases the cost.”
Hoerth recommended that the committee not make a decision on how to proceed until the developer can speak directly with the committee.
Committee Chairperson Ald. BaLynda Croy asked if the developer’s original plans were linked to the TID incentive, because if it was, a new TID agreement would need to be approved if there are new construction plans.
Hoerth said the city could either vacate the original agreement or do an amendment to the agreement.
“If all he’s doing is taking off one floor of his building, of the one four-story building, I don’t see that being much of an issue with the Plan Commission,” Hoerth said. “It’d be more so if the Economic Development Committee wants to incentivize it with a TID grant.”