Council, public to weigh in on Wall Street
One of the most controversial aspects of the project has been the proposal to purchase the Garden Cinemas and tear it down in order to meet the parking requirements for the project.
NORWALK — The full Common Council, as well as members of the public, will get their chance to weigh in on the Wall Street Place development at 7:30 p.m. Tuesday.
The proposed project, which includes 101 workforce apartments, firstfloor retail and tearing down the Garden Cinemas to use for parking, has been controversial, with many community members voicing opposition to it.
Despite mixed public comments, including over a dozen against the project, the Council’s Planning Committee voted last week to advance it to the full council.
Council President Tom Livingston, (District E, D) was the lone no vote, while Councilman Doug Hempstead, the only Republican on the council, abstained from the vote.
The council will be voting to amend the 2007 land disposition and development agreement as well as the loan recognition that governs the property. The proposal will still have to go before the Zoning Commission for approval of its specifics.
The amendments are “necessary to allow for the proposed development
by Municipal Holdings LLC to complete the Phase 1 construction of the Wall Street Place Project,” the council agenda reads.
Municipal Holdings LLC, a subsidiary of Citibank took over ownership of the project from developer POKOIWSR Developers LLC in July 2017. The bank said in a letter to the city that its been working with developer JHM Financial Group LLC, to restart the project.
One of the most controversial aspects of the project has been the proposal to purchase the Garden Cinemas and tear it down in order to meet the parking requirements for the project. The Wall Street Neighborhood Association has launched a petition that’s gained over 940 signatures as of Monday, calling on the Council to save the cinema.
“The Garden Cinemas is one of the most unique, hallmark attractions in Downtown Norwalk, CT, as well as a cultural tourism destination that regularly attracts moviegoers from cities as far away as New York City, Westchester, and New Haven, as well as from cities and towns throughout Fairfield County,” the petition reads.
The association and neighboring business owners has called for turning the cinema into a nonprofit community theater.
“We believe rather than demolishing the Garden Cinemas, the city should be allowing investment into the infrastructure of the Downtown Norwalk Arts District, by allowing the Garden Cinema to be operated as a 501c3 nonprofit community theater,” the petition reads.
However, Richard Freeman, the current owner of the Garden Cinemas ,said in a June 2019 letter to John McClutchy of the JHM Group he intends to sell the property.
“I write regarding the proposed sale of the Garden Cinemas to an affiliated entity of yours,” Freedman wrote. “Should our transaction ultimately not be consummated, we will be selling the cinema regardless.”
Putting parking on the Garden Cinemas spot came to be after real estate broker Jason Milligan purchased the properties that were slated for phase two and three, city officials and JHM Group officials have said. There is current pending litigation over that sale, as well as two lawsuits Milligan has filed against the Redevelopment Agency and Municipal Holdings related to the property and surrounding areas.
According to the plans submitted by the developer, 34 of the units will be at 40 percent of the StamfordNorwalk Area Median Income, with income caps between $43,000$52,000. Thirtytwo units will be marketed at 60 percent AMI, with income caps between $65,000 to $78,000. Finally, 35 units will be at 80 percent AMI with income caps between $86,000 to $104,000, all depending on family size.
Those units will also allow the developer to take advantage of 4 percent Low Income Housing Tax Credits to finance the project. Citibank estimated that it’ll invest $27.6 million in equity over 10 years from 4 percent Low Income Housing Tax Credits for the project that is estimated to cost about $35.3 million in new construction financing, will require $16.9 million in term debt and $8 million in other loans. As a part of the initial Land Disposition Agreement from 2007, $4.4 million was slated to come from the Norwalk Redevelopment Agency.
Norwalk Corporation Council Mario Coppola said at the first presentation of the project in July that the JHM Group would pay 7.5 percent on expected gross profit over 15 years, totaling an estimated $195,000 in property taxes annually.
Opponents of the proposal have criticized the tax incentives.
“Everyone is asking why their taxes have gone up this year, despite all of our growth. And so I think this is really important to find out that this agreement caps the property taxes and gives a tax credit, and a very generous one, for 15 years,” Independent mayoral candidate Lisa Brinton said in July. “And voters are going to want to know why. Why does Citibank and Mr. McClutchy … why do they get a deal that the rest of us don’t get?”