New developer’s agreement to be negotiated

NEW LONDON – A developer’s agreement with Breezewood Builders, LLC for the construction of two six-plex apartments at the corner of Wolf River Avenue and Wyman Street that had lapsed will be renegotiated so the project can move forward.
At its July 28 New London Economic Development Committee meeting, the committee directed city staff to update the developer’s agreement with Breezewood Builders. The renegotiated developer’s agreement would then to be brought back to the committee for approval before it moves to the New London Common Council for approval.
The committee was informed by New London City Administrator Chad Hoerth at its June 23 meeting that the developer’s agreement had lapsed. At that meeting, the committee requested that the developer attend the committee’s July meeting to provide the committee with its intentions for the project.
Ben Leary, of Breezewood Builders, told the committee at the July meeting that construction for the project did not start as anticipated because of “uncertainty” with the “elevator situation” for the project. He said he had originally secured a bid for an elevator in each building for $120,000 for each elevator.
“That bid unfortunately fell through and all of the bids I’ve gathered since then were well over double that in the $300,000 range,” Leary said. “And that just makes, essentially the project financially unviable.”

Because of that, the proposed development has been changed by removing the top story of one of the buildings. The development would now include two three-story buildings. The commercial aspect on the first floor of one of the buildings would remain in the plan.
“This way, we are able to just put in staircases instead of needing the elevators,” Leary said. “This will also allow us to ask for a substantially lower rent.”
Under the old plan, Leary said the rent was going to be around $2,000, but under the new proposal plan, rent would be $1,695.
“It will be a little bit more economical,” Leary said.
Currently, Leary said he is working with engineers to revise the plans without an elevator in each building. He added that he doesn’t have an exact timeline as to when construction would begin on the proposed development, but said he’d like it to start this year.
Hoerth reminded the committee that the parcel of land for the development is not owned by the city. It is a privately owned parcel.
The TID ask from the developer was a 50% pay-go incentive, Hoerth said.
Hoerth reminded the committee that the original developer’s agreement called for two six-plex apartment complexes, with one having a retail component on the first floor. According to the developer’s agreement, construction was to begin Dec. 1, 2025, which did not happen.
The new proposal would be for one six-plex building and one four-plex building, Hoerth said. The start date for construction would be by Dec. 31, 2026. Construction of the first building would be estimated to take 9-10 months to construct. The first building would be constructed first, and then the second building would be constructed, which would be estimated to take 6-7 months to construct.