Developers aiming to build a 402-unit apartment complex at the former Showcase Cinemas site in East Hartford are expected to secure financing and acquire the property from the town before May 28, or pay $30,000 to the municipality.
Under a 2022 agreement with the town, developers Avner Krohn and Brian Zelman – operating under Jasko-Zelman I LLC – were originally expected to close on the property at the end of September 2023, or start paying $30,000 monthly to maintain the right to buy the town-owned site.
The current development agreement requires Jasko-Zelman to build at least 300 apartments, although the developers say they plan to build 402 units. In return, the town agreed to sell the property for $1.
Former Mayor Michael Walsh, who was in office for the 2023 deadline, and his successor, current Mayor Connor Martin, have repeatedly waived the late fee, citing a keen desire to see the project through. The town has also acknowledged toughening economic conditions, including higher construction costs and interest rates, that created some roadblocks.
More recently, Martin has held the developers blameless for delays created as the town and the Capital Region Development Authority devised and negotiated safeguards for $10 million in public funds being invested in infrastructure to facilitate the project.
With that arrangement finalized, Martin felt it was time to enforce closing deadlines once more to nudge the project forward.
Eventually, a March 28, 2025, closing date was agreed upon, Martin said. When that deadline passed, the town required the developers to deposit $30,000 with the town as of April 28.
Now, if the developers do not take title by May 28, East Hartford will require another $30,000 payment to preserve the development agreement.
The initial $30,000 charge will be held in an escrow account, and applied toward building permit fees if the project moves forward, Martin said. Subsequent monthly charges will be kept by the town, Martin said.
“I have no intention of ending the agreement,” Martin said. “I am very confident about the closing and very much focused on the bigger picture, which is we need to get this development off the ground. This is just a little bit of a push.”
Krohn also expressed confidence in the project. He said he didn’t pull the trigger on financing earlier because of the need to finalize a complex agreement for infrastructure funding.
Now, Krohn said, he and Zelman are marshalling their capital stack and will close within weeks.
“It is a reimbursable fee, and we are committed to the closing,” Krohn said.
