Facing rising challenges in the economy, developers Brian Zelman and Avner Krohn are seeking an option to significantly trim an approved 477-apartment development at the former Showcase Cinema site in East Hartford.
But by how much depends on how one counts.
The development agreement with the town that outlines financial backing, tax relief and other conditions calls for a minimum of 360 units. The town’s Planning and Zoning Board signed off on 477 units.
Zelman and Krohn aim to amend the land-use approval and the development agreement, reducing the minimum allowable units to 300. The partners say they intend to build more than 400 units in their amenity-rich, market rate “Concourse Park” development. But they also want flexibility to build less should economic conditions further deteriorate.
“We have every intention of building more than 400 units simultaneously, but we need to have some versatility based on the interest rates,” Krohn said. “We are completely committed to building this.”
Zelman is principal of Zelman Real Estate. Krohn is principal of Jasko Development. The town has agreed to sell the 25-acre Showcase Cinema site for $1 to the joint venture of Jasko Zelman 1 LLC. Zelman said he hopes to achieve necessary modifications to prior town approvals in the next 60 to 90 days.
East Hartford Mayor Michael Walsh has expressed tentative support but said town staff are still vetting proposed changes.
“The market has become less friendly than it was in February of ’22 when we announced this,” Walsh told a subcommittee of the Capital Region Development Authority last week. “So, I think the project will be a little smaller. Instead of upwards of 480 apartments, we will be closer to 300 to 390. It’s still a substantial project for us … .”
Under the initial development agreement approved last year, East Hartford is to supply $10 million in grant funding to offset development costs, which are currently estimated in excess of $100 million.
