Stalled no more
Council approves Wall Street Place, at standstill since 2015
NORWALK — The Wall Street Place project is back on.
The Common Council approved an agreement with Municipal Holdings LLC, an affiliate of Citibank N.A., for the group to complete Phase I of construction on the project, which has been at a standstill since 2015.
The plan includes two adjacent buildings, which will offer a total of 151 units. About 50 units will be offered at market value, and the rest will be classified as affordable housing for those making 40 to 80 percent of the area median income. The developer has also offered a 900-square-foot office space to the Norwalk Arts Commission, which can use the space as it sees fit for the first five years.
Fourteen Common Council members voted to approve the project, despite concerns raised by some in the community. Many said the deal would help move forward the stalled project, which Common Council President Barbara Smyth described as an “albatross.”
“It not only dragged down Wall Street, but the whole community,”
Smyth said.
But others were pleased with the developer’s effort in the past year to revise the project’s plans to address community concerns.
“Where the parking lot will be now is a better location than previously planned,” Common Council member John Kydes said. “Norwalk has a lot of problems with our parking not being visible from major roadways. Having those visible from Wall Street will ultimately benefit the city overall. It’s been a long road to get to this point. I’m happy to be here now . ... I really truly think we have a solid project here that deserves to move forward.”
The plan moved forward, despite opposition from some in the community.
Hearst Connecticut Media was copied on emails from about a half dozen people who asked the Common Council during the meeting to not take action until the public had a chance to review the proposal and voice their opinions.
Real estate developer Jason Milligan, who is in litigation with the city over his purchase of a lot once part of the agreement, called the plan “the worst tax deal ever by a municipality.” He criticized the $4.4 million in city subsidy earmarked for infrastructure work related to the project, the $10 million developer fee and the amount of affordable units.
Milligan also criticized the developer for what he considered to be a lack of investment in the area and the city’s transparency over the deal.
“This was not made public,” he said. “It was deliberately kept secret and then uploaded 24 hours ago . ... POKO 2020 is a bad deal for Norwalk.”
Several residents also emailed members of the Common Council before the meeting, asking them to oppose the deal. Only one resident wrote in favor of the project, saying it could draw new investors to the area.
William Hennessey, an attorney representing JHM Financial Group, which is developing the project on behalf of Municipal Holdings, said the group is driven to bring affordable housing to the area and has focused on addressing concerns about the plan such as who the units will attract and what will be done for the arts in the area given the loss of the Garden Cinemas.
In January, Richard Freedman, president of Garden Homes Management, which owned and operated the theater, announced Garden Cinemas would be closing. Freedman declining interest in movies along with the loss of the Isaacs Street parking lot contributed to the demise of the business. At the time, the Garden Cinemas was under option to be purchase by JHM.
The space the cinema once occupied will now be replaced by a parking garage with some apartment units on the top floor.
The group is discussing adding an art or maker space to the ground floor of the development and Mayor Harry Rilling said showing independent films is being considered for the Wall Street Theater, addressing concerns about the loss of independent cinema in the area.
The facade of the POKO building has also been redesigned to stone and brick to reflect the style of the neighborhood.
“We feel we got less than an A-plus on first time and got pretty close this time,” Hennessey said.
“We see a great demand or need for this type of housing. We feel like we’ve tried to create a mixture as broad as possible not being met by other developers.”