🔒East Hartford seeks $15M state grant to spur Founders Plaza tower conversion

East Hartford is seeking a $15 million state grant to help developers convert an obsolete 19-story office tower overlooking the Connecticut River into apartments. In a Dec. 4 special meeting, the Town Council approved an application to the state’s Community Investment Fund, a program funded by state bonding. According to a memo from East Hartford’s Deputy Development Director Steve Hnatuk, the money would help replace the exterior envelope of the 270,106-square-foot tower at 111 Founders Plaza, built in 1971. Developers plan to transform the building into about 240 apartments. The tower is part of a 30-acre cluster of aging office properties recently acquired by a development group pursuing a large-scale redevelopment known as Port Eastside. The development team includes several high-profile regional players: brothers Harris and Bruce Simons of West Hartford-based Figure 8 Properties; Hartford developer Lexington Partners; investor and businessman Alan Lazowski; Hoffman Auto Group Co-Chairman Jeffrey S. Hoffman; Manafort Brothers Inc. President Jim Manafort; and Peter S. Roisman, head of Houston-based multifamily investor REV. Together, they’ve sketched out a long-term plan to remake the aging Founders Plaza office park into a mixed-use district featuring roughly 1,000 multifamily units — primarily apartments, with a possible small number of condominiums — alongside about 400,000 square feet of entertainment, restaurant and retail space. East Hartford has already committed $6.5 million to help demolish a 182,890-square-foot former Bank of America office building at 99 Founders Plaza (also known as 20 Hartland St.), as well as a 126,000-square-foot parking garage attached to 111 Founders Plaza. The town, with the authorization of the state legislature, is also negotiating a Tax Increment Financing District encompassing the development area. This would allow a portion of aPort Eastsideny new tax revenue generated by the development to be fed back into paying down construction costs. Separately, the town — with authorization from the state legislature — is negotiating a Tax Increment Financing District for the redevelopment area. The structure would allow a portion of future tax revenue generated by the project to be redirected toward covering construction costs. “So, we’ll have demo and development happening concurrently,” Martin said. “That development phase is so important because it lays the groundwork for generation of new tax revenue and tees up supporting the potential TIF district that we continue to explore.” Port Eastside Partner Bruce Simons, in a statement released Tuesday, called the redevelopment of the “distressed” 111 Founders Plaza tower into 240 apartments the “cornerstone” of the broader project. He said the undertaking is “profoundly expensive,” citing the extensive work needed to overhaul the building’s plumbing, electrical systems and exterior façade, as well as elevated borrowing and construction-material costs. “This dynamic new living community is the catalyst for revitalizing a dormant commercial district into a vibrant, mixed-use riverfront residential, business and entertainment community for East Hartford and the region, and this is the type of capital improvement that the Community Investment Fund was created to spark,” Simons said. “We thank Mayor Martin and the Town Council for recognizing these benefits and applying for the grant to help make it happen.” Simons described the effort as “upcycling at a meaningful scale,” giving new life to a building that might otherwise face demolition. “Adaptive reuse is one of the smartest environmental choices a community can make: it avoids massive demolition waste, protects the embodied carbon already in place, and sharply reduces the footprint of development when compared with starting from scratch,” Simons said. The Port Eastside team acquired the tower in late summer 2024 by purchasing its delinquent mortgage and moving through an uncontested foreclosure process. The grant application included a supporting memo from Hartford-based Tecton Architects, which said the tower is “well-suited for conversion.” In a letter, Tecton President and CEO Ted Cutler said the building’s upper floors — levels five through 19 — offer unobstructed views of the Hartford skyline and the Connecticut River Valley. “A significant opportunity exists for a high-quality amenities package, including a fitness center, clubroom, game rooms, community kitchen, and possibly a rooftop lounge – further enhancing the residential living experience,” Cutler wrote.