Committee postpones vote on sale of 17–21 Wells Street, seeks term sheet on tax-fixing deal

The City of Hartford Planning, Economic Development and Housing Committee on Monday postponed action on a mayoral resolution to authorize the sale of city-owned parcels at 17 and 21 Wells Street, described by staff as phase 2 of the 525 Main Street redevelopment.

The committee paused the measure after members said they did not have the tax-fixing term sheet or detailed community-benefit language that usually accompanies deals of this type. Wayne Diaz, a city development services staff member, told the committee the developer proposes 84 residential units, 58 on-site parking spaces and a roughly $20.8 million project budget funded by CRDA, a senior loan and a requested 20-year tax-fixing agreement under statute 12.65b. Diaz said the developer plans 20% workforce housing at 80–120% of area median income.

“We're proposing a 20-year tax fixing agreement,” Diaz said, explaining the deal would hold taxes flat the first three years and step up in later years. Joseph Kleinberg, representing the development team, said financing and investors are in place and that the group did not want to lose momentum: “We have all investors lined up to move forward.”

Committee members said they need to compare the term sheet for this phase with the earlier term sheet used when the city approved the original 525 Main Street transaction. “I would really like to have an opportunity to review the term sheet,” Councilman Josh Mickham said. Chair John Gale and other members agreed they could not responsibly approve the tax-fixing arrangement without the multi-page term sheet that typically spells out community benefits, timing and other conditions.

Councilwoman Molly Rosato moved to postpone the resolution to the committee’s next meeting; the motion carried. The committee did not vote on a purchase-and-sales agreement or the tax-fixing agreement at this meeting.

The proposal as described in committee documents and presentation calls for a connected building that ties into the previously approved 525 Main Street structure and reduces the original plan from six floors to four to improve financial feasibility. Diaz said the project team was seeking authorization to enter into a purchase-and-sales agreement and then finalize a tax-fixing agreement prior to closing.

Because members asked to compare the new term sheet to earlier approvals and requested the complete term sheet be included in the materials, staff said they would circulate the term sheet and attempt an expedited review; no final timetable was set by the committee.

The item will return to committee for further review once the term sheet and related materials are provided.