Norwalk project worth the investment, officials say

By Nancy Guenther Chapman

NORWALK, Conn. – The giveaway of a valuable property owned by the City of Norwalk to a developer is a matter of having “skin in the game,” according to a veteran Common Council member.

Selling the Day Street property, which is reportedly worth about $2 million, to Trinity Financial for a mere $1 will kick start a renewal for South Norwalk, said Doug Hempstead (R, At-Large) and other people at last week’s meeting of the planning committee. Trinity Financial will use the property to help get a federal grant to construct a mixed-residency project to replace the aging Washington Village, a project that is already spurring interest in the area from commercial developers, officials said.

“As part of this project, to get federal funding, the city has to have some skin in the game,” Hempstead said. “That’s why the value of the piece of property. It’s not like we’re giving it away for a $1.”

Carvin Hilliard (D-District B) agreed. “I support this development because it’s an improvement for the area,” he said. “For the property that we’re giving up, there’s going to be revenue for the city, in terms of taxes.”

Eva Erlich of Trinity Financial said that nothing has happened yet other than the drawing of plans, but already Spinnaker Real Estate Partners has acquired an option on the L&L Evergreen property at the corner of Raymond and Day streets, adjacent to the proposed redevelopment. Other developers are looking in the area, she said.

“Just as a result, knowing that it might be in the pipeline is already inspiring private developers to come in and do market rate development,” she said.

Plans at present include a new street connecting Day Street to Water Street to increase safety in the area. There will be 3- to 4-story buildings, with larger apartments on the lower levels featuring stoops opening out to front yards. There will be smaller quiet play areas behind buildings for smaller children to play in, as well as a community center and a resource center.

The plans include 136 public housing units, the same number that are in Washington Village now. There will be 137 other apartments; half will be workforce and half will be at market rate.

“Market rate houses, that’s taxes,” Hilliard said. “There’s something for everybody even for the residents there, it’s all thought out. They’re going to have transportation to get jobs, to get education so they can get jobs. All of this is included in this plan.”

David Watts (D, District A) asked about the projects’s effect on the grand list.

Redevelopment Agency Executive Director Tim Sheehan replied, “If you took this project and put it out as market rate development you’d be looking at huge windfall for the city in terms of investment. But the issue here is you’re trying to incorporate mixed income. Therefore the yield is less.”

But, the city will get the money back when other developments come in, he said.

“There is no question that if this development does occur it’s transformational for the entire neighborhood,” he said.

Committee members unanimously supported the plan.

“I think it a beautiful thing that we are doing this in our downtown area,” said Warren Peña (D, At Large), adding that he had done research on Trinity and been impressed.

David McCarthy (R, District E) said, “I think it’s a little regrettable that people don’t look at the bigger picture and consider the city is putting in something to something better, and be putting in mixed income housing that will be turning what is right now depressing it into something that people will be happy to live in, excited to live in, be able to learn and grow in there.”