As Northland deadline looms, extension seen as doubtful
NEW HAVEN - The former Veterans Memorial Coliseum site could remain a parking lot for quite a while.
The city's exclusivity agreement with Northland Investment Corp., the preferred developer for the 4.5-acre site, expires February 12, and may not be extended.
"This isn't about Northland; it's about the U.S. commercial market," insists New Haven Economic Development Director Kelly Murphy. "The world has changed dramatically, and we are overall bucking the trend with all the projects we have. Companies are having a hard time getting financing - and we don't want to force something on this site, or not build it correctly or get the mix of uses we want."
In September 2008, the city selected Northland over five other candidates for its "tenth square" plan for more than one million square feet of development on the site, including office, housing, retail space and a new 70,000-square-foot home for Long Wharf Theatre. The project was expected to cost more than $200 million.
City economic-development officials were meeting regularly with Northland until a few months ago, according to Murphy, who describes the project as "not really moving forward at the moment." The last discussions centered on constructing the project in phases, she says, and "a phased development" is the likely scenario "moving forward, given the economy."
Murphy also has concerns about funding for the new Long Wharf Theatre. She doubts the theater will be able to obtain the $30 million the state has promised.
Northland's financial situation could be another cause for concern. Over the past several months, two Northland-owned buildings in Hartford - the Metro Center building and CityPlace II - have gone into foreclosure.
"If we're going to renew with Northland on the site, we'd have to look deeper, and we'd have to ask them tough questions about their financing," Murphy says.
Northland officials did not respond to requests for comment for this story.
"We still have other projects going on," Murphy says. "Carter Winstanley is working on a plan for a 400,000-square-foot [office and laboratory] building downtown, and we're working with him on moving that project forward. And some folks [Hampshire Hotel and Resorts] want to put a hotel at 205 Church Street," the former Union Trust building.
"We're the oddballs," Murphy adds. "We're actually building stuff, so it may make sense for us not to push on the Coliseum site - and not do the wrong thing now and regret it later."
As the deadline for Northland's extension approaches, Murphy says, she and her team will make a recommendation to Mayor John DeStefano.
"Unless something dramatically happens with the economy in the next couple of months, I don't see an extension," she says. If Northland doesn't get the extension, Murphy adds, the project would likely remain on the back burner "until we're ready to pick this up again."
Whenever that happens, Murphy says, "I don't know whether we'll end up doing a new RFQ or talking to the other firms that were interested in it."
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