Hartford Mayor Proposes Tax Break For Main Street Tower Developer

My colleague Jenna Carlesso reports:

Hartford Mayor Pedro Segarra has proposed an agreement with the developer of  the former Bank of America tower on Main Street that calls for a fixed tax assessment during and after construction.

The developer of the former Bank of America tower on Main Street in Hartford could get a tax break from the city. Photo by Stephen Dunn/The Hartford Courant.

Becker and Becker Associates, Inc., which plans to convert the tower at 777 Main St. into residential and commercial space, would have its real estate assessment fixed at $2.17 million beginning when the developer buys the property and starts construction.

Once the certificates of occupancy are issued, the company would pay 4.5 percent of the gross anticipated rent for up to 15 years, Thomas Deller, the city’s development director, said.

The $80 million project would convert 350,000 square feet of vacant office space into a “mixed-use residential tower” that includes 286 residential units and 35,000 square feet of retail space, Segarra wrote in a letter to Hartford City Council President Shawn Wooden.

Fifty-one percent of the units would be low- to moderate income units, while 49 percent would be market rate.

The council must approve the plan. Segarra noted in the letter that the Capital Region Development Authority has set aside $17.7 million for the project. Other sources of funding would come from the state Department of Economic and Community Development, the U.S. Department of Housing & Urban Development, state bond financing and state and federal tax credits.

The proposed agreement also calls for a fixed assessment on property at 45 Asylum St., where Becker and Becker plans make improvements to a garage and commercial space. The assessment would be fixed at various rates for seven years: $1.4 million for the first two years; $1.9 million for the third year; $2.4 million for the fourth year; $2.9 million for the fifth year; $3.4 million for the sixth year; and $3.9 million for the seventh year.

“I believe that the development of 777 Main Street and 45 Asylum Street will promote the revitalization of the city and, in particular, promote downtown housing,” Segarra said.