Why Electric Boat could get $25 million from Connecticut to redevelop mall in Waterford
Submarine builder General Dynamics Electric Boat could
receive up to $25 million in state funding to support its redevelopment
of Crystal Mall in Waterford, CT Insider has learned.
The new funding for the Groton-headquartered Electric
Boat consists of up to $20 million in tax credits for urban and industrial
re-investment from the state Department of Economic and Community Development
(DECD) and a sales-tax exemption potentially worth $5 million from the state-chartered
venture-capital organization Connecticut Innovations, according to officials
with those agencies. DECD and Connecticut Innovations disclosed their
agreements with Electric Boat in response to inquiries from CT Insider.
Electric Boat acquired the languishing mall last year, and
it plans to open a company campus there next year. While Electric Boat recently
secured federal contracts for 14 new ships that are worth
a record-breaking total of about $77 billion, state officials said that the
company’s expansion to Waterford also deserves public funding.
“We’re growing jobs significantly, and we’re putting a
failed commercial property back onto the town’s tax rolls as a really strong,
robust asset. That’s good for the local community,” DECD Deputy
Commissioner Matthew Pugliese said in an interview. “And then we’re creating
that activation. We’re adding thousands of workers into the area that are going
to take part in going to restaurants, running errands at lunch and going
shopping.”
State funding to support new company campus, more jobs
To earn the full $20 million in tax credits from DECD,
Electric Boat would need to meet several requirements. Among them, it would
need to spend $255 million on Crystal Mall’s redevelopment by the end of 2028.
It would also need to hit targets for retaining and adding jobs, including
reaching 16,646 positions in Connecticut by the end of 2030 and then
maintaining at least that many jobs in the state through 2035. It would
receive the full $5 million sales-tax exemption from Connecticut Innovations if
it reaches 16,625 jobs in the state at any point by 2031.
Electric Boat already has about 17,000 employees in
Connecticut, part of a companywide total of approximately 28,000. In the past
few months, it has added hundreds of people in Connecticut, reflecting
an initiative to
hire about 8,000 this year across its facilities in Connecticut and Rhode
Island.
“Re-purposing the mall supports Electric Boat's job growth
and revitalizes the surrounding area,” Lauren Carmody, Connecticut Innovations’
chief marketing officer, said in a written statement. “Job creation is central
to CI's mission, and this is a clear opportunity to support both the company
and the state.”
In response to an inquiry from CT Insider, Electric Boat
provided a written statement that spoke generally about the company’s
partnerships with local and state governments.
“As a matter of policy, Electric Boat does not discuss
specific financial arrangements or negotiations,” the statement said. “We have
a long history of working closely with our state and local partners to support
economic development, and the revitalization of Crystal Mall represents another
major step forward for EB, our employees the town of Waterford and
southeastern Connecticut.”
Electric Boat did not demand state funding for the mall’s
redevelopment, according to Pugliese.
“It felt like a very collaborative
conversation,” Pugliese said. “They didn’t come to the state and say,
‘This is a prerequisite. Here’s our project, and what’s the best number you can
give us?’ It was an iterative conversation, trying to understand the
opportunity and the challenges on delivering on that opportunity.”
Gov. Ned
Lamont, a Democrat who has held his current position since 2019 and is
running for a third term, supports the new funding.
“Crystal Mall is one of the most important adaptive re-use
projects in the state’s history,” Cathryn Vaulman, a spokesperson for
Lamont, said in a written statement. “This property is turning from a nearly
empty mall to a source of more jobs for our residents and more investments in
our towns. Companies are choosing to stay and grow in Connecticut, and that’s
something Gov. Lamont will continue to support.”
State
Sen. Ryan Fazio, the Republican nominee for governor, was more
circumspect about the state’s financial support for the project.
“Sometimes, one-off deals can pay for themselves. But
oftentimes and probably more times than not, they do not pay for
themselves,” Fazio, who has served in the state Senate since
2021, said in an interview. “I hope this is one that is beneficial and
pays itself back many times over. And that certainly is a possibility. But the
broader point about economic policy in Connecticut is if we have lower taxes
for everybody, special deals for big companies would not even be necessary.”
It is possible that the state might have financially
supported other options for Crystal Mall's redevelopment, such as multi-family
housing.
“DECD’s brownfield redevelopment grant was discussed (with
Town of Waterford officials), but there were no specific details on project
scope or eligible activities under this program,” Pugliese said of talks before
Electric Boat acquired the mall. “The brownfield redevelopment grant has a
maximum of $6 million, but that is to fund remediation, abatement and
demolition activities.”
Among similar projects, the state has awarded $14 million in
grants to support the redevelopment of Enfield Square. But the
mall’s future is uncertain again, as town officials recently said that an
agreement between the mall’s owner and a Nebraska-based developer had
lapsed.
Major demand for more submarines
Electric Boat became
the owner of Crystal Mall through three acquisitions last year: $6.4
million for the 121,000-square-foot wing that housed Macy’s, $11 million
for the 151,000-square-foot section that hosted Sears and $25 million for the
542,000-square-foot main section of the mall.
At that point, the mall was mostly empty. Crystal Mall’s
last anchor tenant, JCPenney,
closed in May 2024. Its exit was preceded by the exits in recent years of
Bed Bath & Beyond, Christmas Tree Shops, Macy’s and Sears.
Training and testing areas, as well as offices, will be
housed at the new campus. Company officials estimate that most of the 4,000 to
5,000 employees who will work at the hub will be on site by the middle of next
year. The new facility will support the company’s “decompression plan” to
reduce people and materials at the shipyard in Groton to facilitate faster and
more efficient shipbuilding. That initiative has taken on even greater urgency,
as the company pursues its plan to hire 8,000 people this year.
“The innovation part is what I think we’re looking forward
to most at this property,” Electric Boat President Mark Rayha said at a
groundbreaking ceremony on Aug. 21. “There’s an opportunity to reset labs,
reset our ability to do advanced engineering and automation — to do things in
different ways than we’ve ever done them, so that we do things smarter, do
things faster and deliver more submarines to the nation.”
Electric Boat’s growth is driven by the U.S. Navy’s demand
for new ships. In July, the company was awarded
contracts worth a total of about $77 billion. The allotment includes about
$42 billion for nine more Virginia-class, fast-attack submarines and nearly $30
billion for five more Columbia-class, ballistic-missile submarines. Those are
company-record contracts for both programs.
Before acquiring Crystal Mall, Electric Boat was already
receiving state funding to support its workforce in Connecticut. Through First
Five Plus, a DECD program focused on job retention and creation at large
companies that was launched in 2011, it has received a $35 million loan and
about $3 million in grant funding. About $17 million of the loan has
already been forgiven, or essentially written off. It could get the remainder
forgiven, if it meets certain job targets. It could also receive nearly $5
million in additional grant funding.
In addition, Connecticut Innovations awarded the company a
$20 million sales-tax exemption in 2018. CI officials said that funding
supported Electric Boat’s “expansion and job growth.”
$1B vision is taking shape for Stratford’s 77-acre waterfront site. Here’s what’s planned next
STRATFORD — Developers planning a $1 billion redevelopment
of Stratford's former
Army Engine Plant expect to submit a master plan by December after
unveiling the first comprehensive vision for transforming the 77-acre
waterfront property into a mixed-use
district with housing, parks, shops and public gathering spaces.
Point Stratford Renewal presented the concept during a Sept.
28 joint meeting of the Town Council, Traffic Authority, the Planning and
Zoning Commissions and the Inland Wetlands and Watercourses Commission for
the brownfield at 550 Main St. The project team said it expects to spend
the coming months refining the plan through additional public
input before filing its development proposal.
Once fully built over the next 15 to 20 years, the
public-private project is expected to exceed $1 billion in investment, create
roughly 500 jobs and eventually generate more than $15 million annually in
property tax revenue, said economic development consultant Mike Freimuth.
Officials said new development generating tax revenue is
still likely two to three years away. Site preparation remains underway, with
asbestos abatement complete and roughly 1.1 million square feet of former
industrial buildings demolished. Crews are expected to finish most remaining
demolition and flood-resiliency work by year's end, leaving the property ready
for vertical construction by the end of 2027.
"This is a very creative, exciting undertaking for the
town of Stratford," Freimuth said. "Over the next few months, we'll
start sorting more of this out and putting it on the table for people to digest
and react to."
Planners said the development would combine housing with
restaurants, retail, hospitality, entertainment and public gathering spaces
while also exploring opportunities for research and development, manufacturing,
recreation and wellness.
Mayor David Chess said the development represents a
once-in-a-generation opportunity for Stratford.
“I don’t want (Point Stratford Renewal) thinking about this
as just another project,” Chess said. “I need them thinking about this as if
it’s their home and they are trying to create a place that they can be
incredibly proud of, that they’ll want to bring people to.”
Project planners said community feedback has consistently
emphasized that the redevelopment must do more than add housing. While
residential development will provide the financial foundation for the project,
they said the site also needs destinations that attract residents and visitors
year-round.
"Great communities don't rely on a single use,"
said Elizabeth Stoel, a vice president with planning and design firm
Corgan. "They thrive because many uses reinforce one another.”
The preliminary concept also calls for reconnecting
Stratford with its waterfront through a continuous greenway linking parks,
wetlands and trails along the Housatonic River. Proposed amenities include
overlooks, open space, bicycle connections and recreational areas for
activities such as kayaking.
Restoring public access to the Housatonic River has become
one of the project's defining goals, said Tatiana Choulika, a partner with
landscape architecture firm Field Operations.
Developers said public feedback over the past year helped
shape six guiding principles: improving waterfront access, creating an
authentic Stratford identity, expanding recreational opportunities, honoring
the site's manufacturing legacy, strengthening the local economy and investing
in resilient infrastructure.
The redevelopment also builds on changes the town has
already made to encourage redevelopment of the property.
Attorney William Hennessey said Stratford's 2023 Plan
of Conservation and Development singled out the former Army Engine Plant as a
redevelopment priority. The Planning and Zoning Commission later revised zoning
regulations to allow a broader mix of uses through the special permit process
while requiring permanent public waterfront access and high architectural
standards.
Hennessey said the zoning changes came with conditions,
including permanent public access along the waterfront and higher architectural
standards for new buildings.
The former Army Engine Plant, which closed in the late
1990s, is the focus of one of Connecticut's largest waterfront brownfield
redevelopment efforts. Developers say the goal is to transform the long-vacant
brownfield into a resilient mixed-use neighborhood that reconnects Stratford to
its waterfront while creating new places to live, work and gather.
Amazon's eastern CT warehouse plans draw scrutiny from Save the Sound
Amazon’s latest effort to bring facilities to eastern
Connecticut has caught the attention of an environmental group.
Save the Sound’s legal team will be filing a comment to the
Killingly Inland Wetlands Commission related to
the proposed warehouse In Killingly. The organization is also having
“internal discussions” about the
proposed facility in Norwich, Save the Sound Legal Fellow Gabriel Slaughter
said.
“We’re concerned about the increase in the number of
impervious surfaces will have on the local and regional watershed,” he said.
Save the Sound will need to submit a comment by Oct. 19 for
the Killingly project. Save the Sound still wants to learn more about the
details of the Norwich proposal before taking further action, Slaughter said.
“It’s important to think about how proposals can minimize
their impact to the watershed through low impact development,” he said.
Save the Sound's mission extends inland
Save the Sound’s mission statement is “to protect and
improve the land, air, and water of the whole Long Island Sound region.
“Even though the organization’s name is “Save the Sound,” matters concerning
inland sites have been a part of the organization’s preview for some time now,
Slaughter said.
“The organization focuses on matters within the Long Island
Watershed, so (the Killingly) facility, for example, could have impacts on the
waterways that make their way into the Long Island Sound,” he said.
Amazon in Killingly
The
proposed Killingly Amazon location is being developed by Ryan Companies
U.S. It would be a 1.288 million square foot facility on 556 acres of land,
located between I-395, Westcott Road and Mashentuck Road. The
proposal was originally denied in July, then reintroduced in August.
The Killingly Inland Wetlands Commission last met on
Oct. 5, and the public hearing was continued to Nov. 2.
Amazon in Norwich
The Norwich Amazon proposal is being led by the Bluewater
Property Group. It is a 1.066 million square foot facility located in the
Norwich Community Development Corporation’s Occum Industrial Park, at the
addresses formerly known as 432 Canterbury Turnpike and 189 Lawler Lane.
The Norwich Inland Wetlands, Watercourses & Conservation
Commission last met on Oct. 2 and the public hearing was continued to Nov. 5.
Developer details plans for historic ‘Day’ headquarters in New London
The developer currently converting the former headquarters
of The Day newspaper in downtown New London says the $28 million housing
venture will be completed by early 2028.
High Tide Capital says the historic building at 47 Eugene
O’Neill Drive will become 68 market-rate apartments, and include a museum
dedicated to the newspaper’s history as well as two ground-floor commercial
spaces.
The apartments will total about 52,600 square feet across
five floors, and include 17 studios, 32 one-bedroom apartments, 18 two-bedroom
units and one three-bedroom apartment.
Eastern Bank is the project’s senior lender. The financing also includes a $5 million loan from the Connecticut Municipal Development Authority, a quasi-public state agency that helps communities develop housing in downtowns and near transit hubs, along with additional support from JPMorgan Chase and Eversource.
“Downtowns thrive when people live in them,” said Dash
Davidson, principal at High Tide Capital. “The Day redevelopment puts residents
within walking distance of train, ferry and bus transit and every one of those
residents is a customer for the local cafes, shops and restaurants.”
The newspaper moved out of the building in June 2025 after
118 years at the location. It moved into premises on State St formerly owned by
Frontier Communications.
New London is currently experiencing an upswing in interest
from housing developers as submarine builder Electric Boat continues a historic
hiring spree, aiming to add 8,000 employees by the end of the year.
The city has greenlit several large new build apartment
projects, but has also emphasized re-use of historic buildings in its downtown
area.