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Connecticut Municipal Development Authority offers Middletown a $90 million downtown funding tool
Summary
The Connecticut Municipal Development Authority told Middletown’s Economic Development Committee it can provide gap financing and infrastructure support from a $90 million state bond authorization, but any funding for riverfront projects must show a direct nexus to housing or economic development.
David Kouras, executive director of the Connecticut Municipal Development Authority, told the Middletown Economic Development Committee on Tuesday that the authority has a $90,000,000 state bond authorization to support downtown and transit-oriented development and can provide technical assistance and gap financing to member municipalities.
Kouras said the authority — established by state legislation and operating since July 2024 — requires a three-step local engagement: the local legislative body first adopts a nonbinding resolution to join, CMDA reviews and may certify downtown zoning, and the municipality signs an MOU with its chief elected official to set the development district boundaries. "We have a $90,000,000 bond authorization," Kouras said, adding that the authority can fund projects that fall into several categories including housing, building rehabilitation or demolition, and public infrastructure that unlocks private development.
Why it matters: Middletown officials said they are exploring options to accelerate downtown housing and redevelopment. Kouras emphasized the program is voluntary and that certified zoning remains under local control: CMDA can recommend zoning changes but cannot require them. He noted early rounds will likely prioritize housing but that the authority will consider other downtown infrastructure where there is a clear nexus to development.
Committee members asked about local outreach, comparable member cities and timelines. Kouras said 18 municipalities have already taken the initial resolution step and CMDA is working with the first dozen on zoning certification and MOUs; he said the current authorization runs to June 2027 and the authority expects to continue seeking reauthorization thereafter. Kouras also said CMDA’s transit-oriented tools are tied to rail or bus rapid transit, not local bus service, though housing within downtowns remains eligible.
Stacy Marks, Middletown’s director of economic and community development, told the committee staff would request the CMDA template resolution for legal review and next steps. The committee agreed to carry the item forward so staff can examine the template and return a recommendation for council consideration.
What’s next: Staff will obtain the CMDA template resolution, review it with legal counsel and report back to the committee for a potential referral to the full council.
