Editors Note: This is the first of a Hartford Business Journal occasional series that examines the successes and challenges experienced by major development projects constructed in Greater Hartford in recent years.
After a two-year effort, a critical piece of the puzzle for the $2 billion development of 650-plus acres at Rentschler Field has fallen into place.
Dan Matos, developer of the East Hartford tract owned by United Technologies Corp., announced this week that the U.S. Army Corps of Engineers has issued a permit paving the way for additional development at Rentschler Field, including the construction of a new main road through the proposed mixed-use development site.
“It took us two years, but we finally got it,” Matos said. “Without the permit, we really couldn’t proceed. We couldn’t bring in more retail around Cabela’s and other components of the project until we built East Hartford Boulevard South. And we couldn’t go ahead with plans for that road until we got this permit. But now we can move forward.”
Matos said he is reviewing the terms of the permit and expects to sign and return it to the Corps soon. He hopes to begin work on the road in the spring.
In addition to East Hartford Boulevard South, issuance of the permit has enabled UTC to proceed with its plan to donate to the state an additional 70 acres for parking facilities to support the University of Connecticut football stadium. The state has put the project out for bid and clearing of the area will begin after a contract is awarded this month.
UTC donated 75 acres at Rentschler to the state in 1999 so it could build a new home for the UConn football team. The stadium opened in 2003.
“There are seven UConn home games a year and the state currently uses the former runways and grassy areas of Rentschler for parking,” Matos said. “We want to develop that land, but have been unable because the state needed it for parking. But now they’ll have land adjacent to the stadium and can build their own parking lots.”
Matos said the state will have in excess of 10,000 parking spaces when the project is done. The stadium seats about 40,000 people.
“They’re going to do it right. They’re going to keep a lot of areas green so it’s not going to be this big, ugly paved area,” he said. “The UConn parking was another part of the overall project that was being held back because we didn’t have the Army Corps permit.”
Main Road Is Critical
East Hartford Mayor Melody Currey said construction of the main road through Rentschler is crucial. The $2 billion proposal calls for a mixed-use development with approximately 5.6 million square feet of space consisting of research and technology companies, offices, hotels, retail, entertainment and housing.
“We’re very encouraged now that they’ve got the Army Corps permit,” Currey said. “The project has had its highs and lows. It’s taking longer than we’ve anticipated, but from the very beginning they said it was an 18-year project. Now that the economy is coming back, hopefully we’ll have the road in place and be able to attract businesses to Rentschler.”
Retail Deal
Matos said he has also signed an agreement with a retail development company, which is exploring possibilities for locating stores, restaurants and other facilities at Rentschler. Matos would not disclose the name of the retail developer. Matos previously had an agreement with a Wall Street development company to bring retailers to Rentschler, but the economic crisis brought on last year in part by the subprime lending disaster killed the plan.
When Matos unveiled the massive plan for Rentschler in 2005, he said it would take 18 years to complete. About a year after announcing the plan, Matos began negotiations with Cabela’s, the outdoors merchandise company. In October 2007, Cabela’s opened at Rentschler, becoming the first Cabela’s store in New England.
The store opening was expected to become the catalyst for further development, but the lack of infrastructure combined with the recession became a roadblock in developing Rentschler and attracting businesses.
Despite the challenges, the development is on track according to the 18-year plan.
“It all takes time,” Currey said. “These things all take longer than people expect.”
State and local officials have heralded the plan. A UConn study commissioned by the Matos Group estimated that the project, when it is completed, could draw 3 million to 4 million visitors each year to the site, create 6,000 to 8,000 jobs and generate $40 million in state revenue annually and $57 million in local taxes.
Cabela’s was the town’s second-biggest taxpayer last year and paid $196,000 in personal property taxes.
Under the current tax rate, the store’s annual property tax bill would climb to $750,000 once its tax abatement ends in about five years.
Currently, Cabela’s real estate is carried on the town’s books with an assessed value of $24 million and the personal property is valued at $6.2 million.
Fuel Cells
The project has already become a centerpiece for technological advances. Last year, UTC Power of South Windsor, a division of UTC, installed four fuel cells to provide two-thirds of the power needed to operate Cabela’s. A fuel cell is an electrochemical device that combines hydrogen fuel and oxygen from the air to produce electricity, heat and water. Fuel cells operate without combustion, so they are efficient, quiet and virtually pollution-free. UTC officials said the fuel cells would reduce Rentschler’s “carbon footprint”’ by 1,800 tons annually, while providing electricity and heat. To achieve the same benefits, 380 acres of forest would need to be planted. The fuel cells also will reduce nitrogen oxide emissions by 7 tons each year, which equates to the same environmental impact as removing 370 cars from the road, the officials said.
