Norwich to negotiate agreement with Connecticut Municipal Development Authority; CDBG and HUD updates reported

The city manager reported that Norwich will negotiate a memorandum of agreement (MOA) with the Connecticut Municipal Development Authority to support planning, design, contracting and other activities for the Chelsea District development.

City Manager John Salamone told the council the authority was established under Connecticut General Statutes “8 dash 1 65” and that the MOA will provide a framework for the authority and the city “to proceed with planning, design, contracting, and other activities necessary for the development of the district.” He listed types of assistance the authority may provide, including planning studies, stakeholder engagement, development regulations, marketing materials, permitting, infrastructure grants and infrastructure loans.

Salamone also reported that the Office of Community Development received approval for the 2025 CDBG consolidated plan and the 2024 substantial amendment, noting the 2024 amendment “recaptures 2018 through 2023 funds.” He said that per HUD’s contingency plan for a possible lapse in appropriations, the Office of Community Planning and Development and the Office of Lead Hazard Control and Healthy Homes would continue to make previously obligated funds available to grantees, and that, “as of October 2, all HUD reporting systems are fully operational, and all pending claims have been approved and paid.”

Mayor Peter Nystrom said the city has been notified that part of its Round 7 community investment application was accepted and that, when the state bond commission acts, "the city of Norwich will be receiving $2,500,000 to help with the development of the Fairhaven Building and/or Jubilee Park." He emphasized that the award is not the full funding package but moves those projects closer to realization.

Why it matters: The MOA with the state authority would open additional planning and funding tools for the Chelsea District; CDBG and HUD sign-offs affect current grant-funded programs and previously obligated claims. The reported $2.5 million pending bond commission action could support local redevelopment projects.

The manager’s report also included routine operational notes (public works brush collection completed, bagged leaf collection to begin Nov. 17, and paving activity in specified neighborhoods) and acknowledgments for recent flu clinics and community events.

Next steps: The council recorded the manager’s report and directed staff to negotiate the MOA and proceed with any follow-up planning and grant-related tasks; specific MOA terms and any funding commitments will be returned to the council for approval.