🔒Special tax district unlocks large, mixed-use development in Cheshire

Headline-grabbing proposals for a mall and outlets on an undeveloped, 107-acre piece of Cheshire’s north end came and went in recent decades.

This month, bulldozers, excavators and other equipment are pushing into the wooded area, preparing utilities that will unlock the land for a large development of housing, retail and commercial uses.

The key to the project finally getting off the ground is a series of agreements by the town to repay the developers of “Stone Bridge Crossing” up to $7 million in costs for sewer, water and other infrastructure investment.

The Stone Bridge Crossing property is part of a slice of Cheshire cut off from the bulk of town by Interstate 691. There was no direct access for water and sewer, making utilities installation a major impediment. A consultant working for the current property owners estimated $8.5 million in infrastructure costs.

A series of agreements secured in the past two years allow the town to reimburse developers for the infrastructure investment from new taxes generated by the project. It’s what’s known as a tax increment financing (TIF) deal.

That money comes with strings.

The development needs to add at least $50 million in value to the property before reimbursement can begin, and at least $15 million of that needs to come from commercial construction.

The property owners – Tri-Star Development and Miller Napolitano Wolff – have an approved master plan allowing development in three phases, including:

• Up to 140 homes

• 300 apartments or condos and a 5,500-square-foot gas station/convenience store

• 90 age-restricted multifamily units, 19,500 square feet of medical office, a 150-room hotel and three free-standing restaurants.

Cheshire Economic Development Director Andrew Martelli said these phases don’t need to come in any order. Tri-star and Miller Napolitano Wolff are close to securing a residential developer interested in building out the first phase, Martelli said. He has yet to hear of confirmed builders for other phases.

Attempts to reach representatives of the landowners were unsuccessful.

Matthew S. Gilchrist, co-owner of Southbury-based EG Homes, said he expects to shortly finalize the purchase of a 27-acre portion on the Stone Bridge Crossing property, then in April begin preparations for high-end duplexes and four-unit townhomes.

Gilchrist said dwellings will be built to order, likely 24 to 30 per year. He expects to begin selling sites in June or July. The homes would be ready for occupancy in early 2023.

“We are a conservative builder and don’t build a lot on spec,” Gilchrist said. “We build to customers’ wants and needs as they come through the door.”

With infrastructure work underway, Martelli said he is confident of the development’s prospects, despite the long history of failed proposals that stretch back to the 1980s, including for a mall and shopping outlets.

“It’s almost been a reality so many times, I’m almost holding my breath,” Martelli said.

Goman+York Property Advisors, which produced a feasibility study for the landowners, estimated the final proposal will add $167.8 million in market value, yielding about $3.9 million in annual property taxes.

Even after factoring in education costs for children of new residents, as well as other municipal services, the town will still gain $1.6 million in annual new taxes, as well as $251,972 from new motor vehicle taxes, Goman+York estimated.

New businesses on-site would create 468 jobs, according to the consultant.

Cheshire Town Council member Tim Slocum said the town needs new housing stock and development to remain vibrant.

“A place with growth is a positive place and Cheshire is a positive place in general,” Slocum said. “The bottom line is nothing would have happened without the infrastructure development.”