Housing will be boost for Milford mall
Before COVID-19 turned the world upside down, malls were facing an unprecedented challenge as more and more people shopped online. In the past year, the closure of apparel stores, department stores, bookstores and electronics retailers that were once the lifeblood of malls has accelerated dramatically. In 2019, more than 9,000 stores closed, a 59 percent increase from 2018. Analysts estimate that 15,000 stores will close permanently in 2020 and 50 percent of department stores in malls will close by 2021, numbers that may go even higher depending COVID’s impacts. Unfortunately, Connecticut Post Mall and, by extension, the city of Milford are not immune from the effects of the “retail apocalypse.”
Centennial Real Estate invested in Milford because it’s a great community; however, the mall is now facing very serious challenges. Since buying Connecticut Post Mall in 2015, we have continued to invest to keep the mall’s offerings fresh. When JCPenney and Buy Buy Baby left, we recruited Boscov’s and Dave & Busters to take their place to provide new choices for visitors.
Despite these investments, Connecticut Post Mall has experienced a 20 percent decrease in visitors over the past five years and a drop in taxable assessed value from $176 million in 2010 to $149 million in 2019. Adjusted for inflation, in the past 10 years the mall has lost 28 percent of its tax value. This means that the mall is paying $1.59 million less in inflation-adjusted taxes than we paid in 2010. The mall is continuing to deteriorate as a taxpayer, a trend that will accelerate if we are not allowed to make an immediate and meaningful investment in the property.
While malls face unprecedented headwinds, these challenges are made significantly worse by COVID. In the past year, more than 20 mall tenants, including Red Robin, Abercrombie and Fitch, Bar Louie, Yankee Candle, and GNC have left, creating vacancies that will be tough, if not impossible, to fill. Nationwide, retail employs one person per 400 square feet of space and as stores leave malls, so do jobs. Continued job losses at Connecticut Post Mall hurt not only our business, but also the broader Milford community.
Through it all, Centennial has worked to ensure the mall’s long-term future. That is why we are proposing to invest $70 million to build a luxury residential community on the southeast corner of the mall’s parking lot. While residential development is currently permitted, we have requested a regulation amendment through Milford’s Planning and Zoning Board to facilitate a 300-unit residential community. The goal of this investment is to both ensure the near-term viability of the property and begin the process of transforming the mall from an enclosed retail project to a modern, mixed-use destination.
In addition to offering new quality housing options for residents, our proposal would bring significant positive economic benefits to Milford. When completed, the project will pay an additional $1.2 million in new combined real and personal property taxes to Milford every year, a 28 percent increase. Approximately 372 jobs, many construction-related, will be created or sustained in the first year and 117 permanent jobs will be created or sustained starting in year two. The project would generate approximately $34.8 million in new wages and an estimated $4.9 million in new discretionary spending, $1.2 million of which will be in Milford.
While our near-term objective is to stabilize the property, our goal is to ensure the mall thrives for the long term. We look forward to exploring new creative uses as the mall continues to evolve. However, in order to craft a shared vision for the future, Centennial must first be allowed to stabilize the mall through the addition of a vibrant, luxury residential community.
As a supporter of local nonprofits, a major hub for jobs and the city’s largest taxpayer, we are a good neighbor. However, we now need Milford’s support. If you value the stores and restaurants the mall offers, the jobs it hosts, or the millions in taxes the mall pays to Milford, please let the Planning and Zoning Board know in advance of its Oct. 6 meeting. The same challenges facing Connecticut Post Mall have unfortunately led to the closing of hundreds of properties just like ours, both around the country and here in Connecticut. With your support and the support of the Milford Planning and Zoning Board, we can avoid that outcome and continue to thrive in a community that we’re proud to call home.