Added workforce housing boosts Steelpointe development
Project ‘shouldn’t make this a waterfront enclave for the wealthy’
BRIDGEPORT —The 1,500 apartments proposed for the Steelpointe waterfront redevelopment have for some time been billed as high-end or luxury units in a class of their own, at least for Bridgeport.
“I’m looking to create a market here ... that does not exist today,” Robert Christoph Jr. who, with his father has spent a slow but steady several years transforming the East Side land situated between the harbor and Interstate 95, said in an interview over two years ago.
So when a ceremonial groundbreaking was held on the site Jan. 16 it came as a surprise that 160 of the 420 units planned for the first phase of construction would be lowerpriced workforce housing. Not low income, but aimed instead at teachers, police officers, nurses and others, and exceeding an affordable requirement in an earlier agreement with the city.
City Councilman Scott Burns, until recently the co-chairman of that legislative body’s economic development committee, called that a positive.
“I think it’s a good change/addition to the project,” he said. “(We) shouldn’t make this a waterfront enclave for the wealthy.”
According to state officials, the 160 apartments will be spread out among different sizes, from studios to three-bedroom units, and with rents starting around $2,000 per month. The average projected savings for tenants is $385 per month over market rate.
What led to the change in plans? The Christophs needed the state’s help wrapping up the financing for the already delayed $190 million project.
“There was a gap in the final financing package for the first housing phase,” Adam Wood, a spokesperson for the Christophs, said. “The developer met with state leaders . ... One of the financing options made available featured workforce housing, a shared goal of the state and the community.”
More specifically the Christophs are receiving a $20 million low interest loan from a $200 million, two-year pot of money Gov. Ned Lamont, who attended the Jan. groundbreaking, had proposed last year to help boost Connecticut’s housing
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State Housing Commissioner Seila Mosquera-Bruno in an interview blamed rising interest rates for the challenges breaking ground at Steelpointe.
“The goal for this program is to work with those projects that were delayed because of the high interest rates and to make sure the money is on the street and we are building units,” she said. “Do you have your lender? Your permits? Do you have that small gap that can make this work? Here we are, give us some affordability for these young professionals who are going to be working in the city and need housing.”
But during last month’s groundbreaking ceremony Ryan Cronk, a partner in the project, made candid comments about the overall challenges of putting the funds together for redevelopment in Bridgeport. Cronk is a principal with Indianapolis-based Flaherty & Collins Properties. In fall 2022 it was announced his company would help build and manage the Steelpointe housing complex.
“My first time in Bridgeport was three years ago . ... I came out here and thought, ‘Wow, this is awesome,’ ” Cronk said. But then, he said, “We started hearing back from all these lenders that didn’t want to come out to Bridgeport . ... We talked to, I don’t know, about 100 banks?”
After convincing four in-state banks and four from outside of Connecticut to participate at Steelpointe, the development team then turned to the state last fall, Cronk continued.
“And that was to get us to the top to start construction,” he said.
There was prior indication that putting together the entire $190 million would prove challenging. In late 2021 the Christophs successfully sought a local 12-year tax break. As reported at the time, there was some criticism that the subsidy was unnecessary and unwarranted for a mostly luxury complex. But Bridgeport Economic Development Director Thomas Gill had insisted that without that aid, “They would have a gap in their financing and their financing and lending institutions would not approve the project.”
Pasquale Guliano is managing director of multifamily programs with the Connecticut Housing Finance Authority, a quasi-public agency involved in helping Steelpointe. He in an interview said the challenge the Christophs faced was convincing people with money that luxury housing would work in Bridgeport.
“This is going to be transformational for the Bridgeport market,” he said. “You could say right now there is no other 420-unit project in Fairfield County going up on the water. This is very unique and it should have a major impact. (But) we’ve seen banks or lenders are a little apprehensive lending in unproven markets. Bridgeport really hasn’t had much in the lines of this type of development . ... So you have to sort of buy into the vision.”
As for how the state loan changes the development, initially under the deal with Bridgeport the Christophs were to have 10 percent of their total units set aside as workforce housing. So if all 1,500 apartments were eventually built, that meant 150 maximum would have cheaper rents than the higher-end ones.
But a significant number of that 10 percent could be constructed offsite. And, according to their data, the Christophs had already either helped construct or are building 75 total units in other neighborhoods to meet that original 10 percent requirement. Wood confirmed that the 160 now included in this first phase will be in addition to that 75 and actually be incorporated into Steelpointe.
Guliano and Mosquera-Bruno noted that the lower-priced apartments will blend right in.
“Nothing has changed in terms of the design or the level of finishes or that nature,” he said.
Citing local demand for more housing options, Bridgeport Mayor Joe Ganim said he does not believe the workforce component in any way diminishes the original intent to turn Steelpointe into a showpiece akin to similar projects like in Stamford. Not only have the Christophs built a new marina at Steelpointe but they have been holding luxury boat shows for the past few years.
“The takeaway is it adds what I think a lot of people were happy to see,” Ganim said.
City Council President Aidee Nieves, who represents Bridgeport’s East Side, said the Christophs informed her late last year they were hoping to obtain some state dollars for workforce units when she called them concerned construction had yet to begin.
“I didn’t know it was a whole 160,” Nieves said. She said she is happy because the need for housing is a major issue in town when she talks with constituents.
“Workforce housing speaks to young professionals who don’t want to own a home yet but want a nice place to live,” Nieves said.
Nieves said she was however disappointed to learn that M&T Bank, which acquired Bridgeport-based People’s in 2022, did not wind up being one of the financial partners when the Christophs needed help.
“This would have been a flagship development for them to invest in Bridgeport,” she said. “It leaves a little sour spot for me.”
In response, Frank Micalizzi, M&T’s Bridgeport Regional president and head of commercial banking for Connecticut, said in a statement, “M&T Bank remains fully committed to Bridgeport, our New England headquarters.”
He cited examples like committing to opening a branch in a new East End redevelopment, launching a multicultural small business lab to support Bridgeport entrepreneurs and sponsoring various community events.
“While we are not able to participate as partners in all local development projects, we did work cooperatively with the (Steelpointe) team to explore a potential role. We wish them the best in making this project a reality for the Bridgeport community,” Micalizzi concluded.
As for whether Steelpointe’s apartments might have an even larger affordably priced component as other sections are erected, Guliano said it is too soon to say.
“We’re just focused on the first phase,” he said. “This is a 48-month construction term and the (state loan) program is funded for two years. We’d be happy to talk to them and any developer on any market rate project going forward.”