More than two years after picking the developer to revitalize a section of Broad Street, Manchester officials announced this week they have ceased its partnership with Manchester Parkade 1.
The massive project on the former parkade site was expected to break ground on initial construction this spring, but town officials will now go back to the drawing board after citing numerous delays and an unclear timeline as reasons for moving on from the Easton-based developer.
Redevelopment Agency Chair Aaron Wlochowski thanked Manchester Parkade 1 developers for their work but said it was time to move on.
“The RDA has decided that it’s necessary to end discussions with the current developer,” Wlochowski said. “While we are disappointed to end our relationship with Manchester Parkade I, the RDA has always worked in the best interest of the Town and its taxpayers. We have stayed true to the original Redevelopment Plan and bond fund approval.”
Harry Freeman, one of the principals at Parkade 1, said the news from Manchester town officials came as a surprise to him and his business partner, Michael Licamele.
“We’ve been working in good faith,” Freeman said. “We were very surprised that the town took this action.”
The town first bought the multi-parcel property in 2011 after Manchester voters approved an $8 million bond to revitalize the Broad Street area. In 2019 the town named Manchester Parkade I LLC as the preferred developer for the site.
The planned $140 million project, called Silk City Green, would convert the vacant Broad Street site into a mixed-use development with housing, retail space, and a hotel.
The Town and Manchester Parkade I signed a development agreement in April 2021, which was subsequently twice extended as the developer grappled with financing issues related to Department of Housing and Urban Development funding.
Those funding issues have since been resolved, Freeman said, and the developers planned to add a new partner to the project. Freeman said they were still planning to break ground on initial site work in the spring, with vertical construction expected to begin in the late fall.
“We thought we had all the ducks in order,” Freeman said. “In our mind we still have an agreement and we still have rights to the property and we’re going to proceed as such.”
The developer said Parkade 1 has already pumped $1.3 million of its own money into the project, so they’d be consulting with their legal team about what options they have.
“The Town and RDA recognize and share the community’s frustration with these timing delays and are eager to move forward in delivering progress on the Parkade site,” General Manager Steve Stephanou said in a statement. “In the coming weeks, we expect to announce next steps for the development of the site.”
Now, the RDA and town officials will go back to the drawing board and work on a new development strategy for potential developers.
“This is an attractive opportunity for a developer to create a signature project at an excellent location in an established market,” Manchester Director of Planning & Economic Development Gary Anderson said. “While we regret that we are unable to proceed with the current development group, I’m confident that the hard work of the RDA and town staff will lead to a positive outcome for the community and Broad Street.”
