Hearing on $100M XL Center renovation pushed back after Northland Investment asks for briefing
Kenneth Gosselin HARTFORD — A hearing intended to outline a $100 million makeover of downtown Hartford’s aging XL Center has been pushed back, after the owner of the atrium and storefront space outside the arena asked for a meeting with the Capital Region Development Authority, which is overseeing the project.
The atrium and storefront space are seen as critical to expanding the existing concourse, adding more concessions and restrooms, plus providing more space for security screening, access for the disabled and, potentially, COVID screening.
Newton, Mass.-based Northland Investment Corp., the atrium’s owner, and CRDA have been negotiating for a potential sale of the space, but the two sides remain at odds. In 2018, CRDA threatened to commence an eminent domain action but backed off.
“We were contacted by Northland,” Michael W. Freimuth, CRDA’s executive director said. “They would like to sit down and discuss the plan. They wanted to understand what was going on.”
The virtual hearing had been scheduled for Tuesday, but will now be rescheduled for later this month or early in February. The hearing was intended to outline the $100 million state-taxpayer funded plan, which has been downsized from the $250 million proposed a few years ago.
Northland could not immediately be reached for comment.
The biggest difference between the two plans is the elimination of a second concourse that would have an upper half of the arena, providing a large chunk of the cost savings.
In the $100 million plan, the overall strategy also has shifted to focusing on the lower half of the arena. The renovation will include industry standards restrooms, concessions, premium seating and other systems for the average 12,000 seats that events typically draw rather than the arena’s full 16,000-seat capacity.
The premium seating includes bunker suites at center court, a club with seating for 100 or more — both on floor level close to the action. More loge seating would be added elsewhere in the arena.
State officials hope the renovation will increase revenue with more premium seating and amenities; push the venue to make a profit, which it traditionally has not done; and reduce expenses, eliminating costly repairs to outdated equipment for which parts are difficult to find.
CRDA is pushing ahead with the renovations now because the pandemic has closed theaters and sports venues. Construction could at least get started without having to work around events. Some initial demolition where bunker suites are planned has already gotten underway.
More premium seating in the lower half of the arena with its own food, drink and restrooms will take pressure off the often congested concourse. However, integral to the plan will be acquiring and expanding into the surrounding atrium, part of the so-called “Trumbull Block,” now owned by Northland.
The block is part of the Hartford 21 apartment tower and complex developed and completed by Northland in 2006.
Freimuth said CRDA believes the atrium, off Trumbull Street, is the only space for expansion because the arena has a garage on one side and roads on two other sides.
But just last month, Northland chairman and chief executive Larry Gottesdiener said he does not believe a substantial investment in the aging arena is a “wise use of public dollars” and that a “short-term renovation program” can be accomplished without the purchase of the atrium.
“We stand ready to work with the authority, the city and the state for the betterment of the facility and the city of Hartford,” Gottesdiener said in a statement. “However, we believe the necessary first step is a robust public discussion about the future of the XL and what kind of development is appropriate for the heart of the city.”
The last major renovation was in 2014 at a state taxpayer-funded cost of $35 million and intended to keep the arena going until its longer-term future could be determined. Three years later, the state legislature and bond commission backed another $40 million to make repairs, buy the Trumbull Block, and seek outside investors to essentially take over the arena, an effort that drew little interest.
Of the $40 million, $22 million remains after repairs to the venue, plus the funds to buy the atrium. In the last legislative session, another $65 million was approved for the $100 million plan, but the bond commission has yet to release that funding.
From ‘black eye’ to ‘economic boost,’ Danbury’s Summit shows promise with Nuvance move
Julia Perkins DANBURY — Nuvance Health’s move to the burgeoning Summit building is a sign the west side development could flourish and drive growth throughout the city, despite the struggling economy.
The seven-hospital system, which includes Danbury Hospital, plans to lease more than a third of the commercial space in the 1.2 million-square-foot former Union Carbide world headquarters.
This means the building could be filled within roughly five years—half the time project manager Michael Basile estimated just four months ago.
“It’s really great for the city because it takes this black eye that’s been sitting here for so long,” he said. “To be able to bring it back to life, it’s great for everybody.”
With offices, apartments, maybe a school, and various businesses and amenities, the plan is to create a “city within a city” at a building that has been mostly vacant for years.
Nuvance will bring office space occupancy up to 80 percent, with an option in the 12-year lease for the health system to expand up to 300,000 square feet, Summit Development said. That expansion would bring office occupancy to 100 percent.
“The partnership between the Summit and Nuvance Health is just a tremendous economic boost for the city of Danbury,” Mayor Joe Cavo said.
With more than 15,000 employees in western Connecticut and the Hudson Valley, Nuvance said it aims to continue to be an “economic driver” in the area.
Summit touted 500 jobs would move from New York to Danbury, but Nuvance said it does not have a final number. Some corporate and medical practice administrative departments will be in the building.
“Work is underway to determine which administrative departments will be centralized at The Summit, and the staff members who will move,” Forni said. “Many staff members will continue to reside at their current locations including in the hospitals and medical practices.”
The move will be phased throughout 2021 and will be “driven by many variables, including what is in the best interest of our staff and communities,” she said.
Construction on the apartments is expected to begin around February and last until the end of 2021, Basile said. The city approved 404 apartments, but would only construct 200 if the proposed Danbury Career Academy is built, he said.
Residents could potentially live and work in the building, send their children to the proposed school, and use the amenities.
“It’s kind of a micro city within a city,” Cavo said. “All the things that go along with that will available there and just lends itself to a one-stop living, education, shopping, eating type of venue.”
More people at the Summit could mean a boon to hotels, housing, restaurants and places like dry cleaners in the area, he said.
“All of these things get a little shot, a booster shot, so to speak, of having more personnel and clientele here that need their services,” Cavo said.
The move is notable because the coronavirus pandemic has hurt businesses and changed the way people work.
“During this time, with the COVID situation and so many people working from home and just so many different things, it’s great to see an expansion like this happen in the city of Danbury,” Cavo said.
Other than Nuvance, leasing in the building has been “quiet” during the pandemic, Basile said. But Summit is actively marketing the available space.
There is already a restaurant, with a convenience store and yoga studio expected in 2021. A barber shop opened a few months ago, while Planet Fitness has “prospered,” Basile said. A putting green is planned, while a pool will be available for the apartment tenants.
These features give the Summit an edge over other businesses during the pandemic, he said.
“If you can bring the amenities to a location where people work, it helps the experience,” Basile said. “Even though people can work from home, they like coming here. They like the atmosphere.”
The pandemic changed how Paul Rotello, minority leader on City Council, thought of the development. With COVID affecting growth in the city, he is no longer concerned the apartments could bring too many students into the overcrowded schools.
Increased traffic on the west side is the biggest challenge to be managed, he said.
“All in all, it’s certainly a positive development for Danbury,” Rotello said. “That’s beyond dispute.”
Nuvance provides a foundation for future development in the Summit, said Vinny DiGilio, majority leader on City Council.
“It’s a key to success on many fronts,” he said.
For years, the property has been an albatross on the city.
Union Carbide once had thousands of employees in its headquarters, but their numbers dwindled after a 1984 accident at the company’s plant in Bhopal, India killed at least 5,200 people.
It was 15 percent occupied by the time Summit Development purchased it in October 2018 for $17.8 million.
“It’s been hurting for long to get some tenants,” City Council member Roberto Alves said. “At the end of the day, this is excellent news.”
Under a deal reached in September, the Summit will pay $860,000 annually in property taxes for 10 years before being taxed based on fair market value.
Developers also pay an annual fee, starting at $550,000 but expected to grow to $750,000, that is meant to go to the school district to offset the costs of potential additional students.
DiGilio, who headed the council committee that reviewed the tax agreement, said the deal could have helped the developers to attract Nuvance, he said.
“It’s exactly what we would want and expect to see as a result of working with a developer on an incentive structure like that,” he said.
A few council members had objected due to concerns that the development would become successful sooner than expected and that Danbury could lose out on tax dollars.
But that would be a small price to pay if the Summit flourishes, DiGilio said.
“To have a stabilized building with long-term success, that to me is worth it,” he said.
Alves had been one of the council members with those concerns, but planning for future development is now chief on his mind.
He wants the city to compete with others like Norwalk and Stamford to attract corporations similar to Nuvance by emphasizing Danbury’s good location near New York and airports.
“Let’s highlight that and bring in high-paying jobs,” Alves said.
With the proposed career academy, the Summit would fill all but 120,000 square feet of the building.
“To accomplish this required a shared vision of all involved and a willingness to, quite literally, think outside the box,” Summit Development President Felix T. Charney said in a statement.
Early plans call for about 50 to 60 classrooms, as well as a gym, offices, media center, cafeteria space, and more.
In the new year, Cavo plans to form a committee to solidify plans, including the cost. The state approved a bill in the fall that would pave the way for Danbury to receive 80 percent reimbursement for up to $93 million.
“The whole idea of the career academy is going to be for our youth to explore different opportunities for employment and different job areas and different job,” Cavo said.
It would also address overcrowding in the schools due to enrollment growth.
“The sooner we can get the ball rolling on that to alleviate the overburdened schools will be great,” Alves said.
The academy could create a “feeder system” for local jobs, including with Nuvance, Alves said.
“The possibilities with that are endless,” he said.
DeLauro promises Biden will focus on infrastructure
Ken Dixon Veteran U.S. Rep. Rosa DeLauro, the new, powerful House Appropriations Committee chairwoman, promised Monday that once President-elect Joe Biden takes office, he will support major investments that should help Connecticut and the region.
“The new administration has a high priority on infrastructure, something that is very near and dear to my heart, having introduced legislation in 1994 for an infrastructure development bank” said DeLauro, who was Gov. Ned Lamont’s guest during a virtual news conference from the State Capitol.
“I think in addition to transportation, you’re looking at broadband, airports, water projects, et cetera,” she said. “It is roads and bridges and there is a heavy emphasis by the next administration on infrastructure. Why? Because it is a driver of the economy and it results in jobs, and in new technologies, for that matter, which helps to create jobs.”
DeLauro said that her staff and Lamont’s staff will be working cooperatively to make priorities for the state. DeLauro said that during a recent meeting with New York Gov. Andrew Cuomo, issues of regional infrastructure were discussed as well.
“We are interconnected here, and we want to make sure that there is a high priority on infrastructure,” she said. “I applaud the governor for saying that Connecticut is going to be ready for what direction that we go into, to take advantage of where this new administration” is headed.
DeLauro believes there is a likelihood of bipartisan support for infrastructure projects. The two special Senate elections in Georgia will determine whether Democrats can wrest control from the current Republican majority.
While President Donald Trump promised early in his term that infrastructure would be a priority, such an effort never came forth, then the coronavirus pandemic last year further sidetracked issues such as nationwide highway and bridge repairs and railroad improvements.
“I have a feeling that transportation and infrastructure is going to be a big piece of what you see in Washington over the course of the next, say, four years. and I want to make sure that Connecticut is ready,” Lamont said. “I want to make sure that we have our strategy in place. We have our design-and-build plans ready to go, and I can talk to my friends in Washington to tell us how Connecticut and our entire region can take advantage of transportation.”
Lamont said that the hiring of state Sen. Carlo Leone, in recent years co-chairman of the legislative Transportation Committee, as a special assistant to DOT Commissioner Joseph Giulietti should also help the state.
“We got to know him very well,” Lamont said of the Stamford Democrat. “We’ve got to prioritize, yet again, our transportation initiatives and other, broadly, infrastructure plans; make sure the designs’ numbers add up, ready-to-go, shovel-ready so that when Rosa gives us the green light we’re there, hopefully at the front of the line.”