Middletown approves $43 million O&W redevelopment plan; council OKs RECAP lease and improvement agreement

The Middletown Common Council voted unanimously to advance the long-stalled O&W rehabilitation project, approving bid awards for the $43 million redevelopment and simultaneously authorizing a lease and improvement agreement with the Regional Economic Community Action Program (RECAP).

The project will restore the historic O&W building and turn much of the space over to RECAP for Head Start and child-care services, Mayor said during discussion. "This is truly a game changer for our city," the Mayor said, calling the project a way to "preserve a beautiful piece of Middletown's history" while delivering services to families in the city's lowest-income census tract.

Council members and staff described the project as a diversified financing structure that blends grants, tax-credit equity, municipal borrowing and RECAP investment. The council was presented with a financing summary showing a total project cost of $43 million; about $10 million attributed to RECAP-related interior improvements; roughly $13 million from various grants and tax-credit equity; a $3.6 million city fund-balance appropriation; and a $6.6 million planned city bond issuance. To provide early-stage funding while grant reimbursements arrive, the city will issue roughly $19.9 million in bond anticipation notes.

The council heard additional details on repayment and revenue: $6.6 million of the…