Major Development Initiatives in New Haven

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1 X. Major (Recent) Economic Development Initiatives In recent years, New Haven witnessed several major developments which are either complete or undergoing construction such as the Smilow Cancel Hospital, Science Park, 360 State Street, 2 Howe Street, 55 Park Street, 904 Howard Avenue, and 100 College Street properties. These developments help in job creation, enhance quality of life for residents and businesses, and lead to a broader tax base that funds important public services such as police and fire. By focusing efforts on key target areas, private development builds momentum, as surface parking lots, brownfields and vacant land are converted into higher and better taxable uses. In particular the City has sought to increase density of construction in the central business district and is actively encouraging similar efforts in the long underutilized Long Wharf area. These efforts have produced real and tangible results. In 2011, the City s grand list increased $861 million (16.7%), and while most of this is attributable to increases in property values, $139 million is the result of new construction projects. New Haven witnessed several major developments in recent years which help in creating new jobs in the city, enhancing quality of life, and lead to a broader tax base that funds important public services such as police and fire. In 2011, the City s grand list increased $861 million (16.7%), of which, $139 million is the result of new construction projects. Recently Completed Developments Smilow Cancer Center In 2009, Yale-New Haven Hospital completed construction on its new Smilow Cancer Hospital, which was fully occupied by April The hospital provides individualized cancer treatment regimens in twelve oncology disciplines, and integrates treatment and research with the Yale Cancer Center, an acknowledged leader in cancer care. The facility is one of just 41 designated cancer centers recognized by the National Cancer Institute, and is transforming the City and its medical district into a destination for researchers, medical professionals and patients from around the nation. 55 Park Street Completed in 2010, 55 Park Street provides complimentary support space for Smilow Cancer Hospital and Yale New Haven Hospital. Because the building is owned by Fusco Corporation, unlike most Yale buildings, it will remain taxable for 30 years per an agreement with the City. From an urban design perspective, the building is an important part of the overall conversion of Route 34 from a limited access expressway into an integrated part of the City s broader fabric. Medical Laboratory & Office: 150,000sf Project Cost: $80 million Hospital Beds: 168 Hospital Size: 497,000sf Permanent Jobs: 500 Project Cost: $467 million 10.1

2 2 Howe Street Mixed-Use Development Boston-based Intercontinental Real Estate Corporation completed 2 Howe in November This is the third element of the Smilow Cancer Hospital project. The 2 Howe Street project also helps reconnect the Hill, West River and Dwight neighborhoods through its wrap design. Image 1. Lot E, 2 Howe Street Office Space: 57,000sf Ground Floor Retail: 15,560sf Residential Units: 24 Parking Spaces: 845 Project Cost: $70 million Image Science Park Source: New Haven City Plan Department, 2013 Science Park Science Park is an urban reuse project located at the former site of the Winchester Repeating Arms Company that is owned and managed by a nonprofit that has successfully redeveloped several of the buildings on the 80-acre campus, and is now home to many innovative corporations, including Higher One, Clinical Data Inc., Vion Pharmaceuticals Inc., Ikonisys, Inc., PhytoCeutica Inc., Carestream Health Inc., Pepsi Research Lab, and Yale University 25 Science Park: In late 2008, Winstanley Enterprises completed the transformation of 25 Science Park into premier class A office space. Yale University s Information Technology and Human Resources departments lease space in the building along with two lab incubators managed by Connecticut Innovations, Inc., and a Pepsi research lab. Source: New Haven City Plan Department, Winchester: In 2009, Winstanley Enterprises expanded its commitment to Science Park by investing $20 million in the shuttered US Repeating Arms. The facility now houses additional Yale University offices and personnel, and like 55 Park Street and 2 Howe, although these buildings are leased to not-for profit institutional users, they are owned by for-profit commercial enterprises and thus remain on the City s tax roles. Office Space: 245,000 sf Project Cost: $20 million Office Space: 25,000 sf 10.2

3 Science Park Winchester Garage/Retail Facility: To support the parking needs of both 25 Science Park and 344 Winchester, in 2010 Winstanley Enterprises constructed a new 1,186 space parking garage with ground level retail space on Winchester Avenue. The project also resulted in significant streetscape improvements including a raised median, planters, street trees, and pedestrian lighting. Retail Space: 15,000 sf Parking Spaces: 1,186 Project Cost: $30 million Science Park at Tract A/Higher One: The Science Park Development Corporation selected Winstanley Enterprises and Forest City to develop Tract A; the largest vacant brownfield building in the City. The first phase project was completed in Q and includes a new headquarters for Higher One, a leading provider of customized financial services for the higher education market. The new headquarters is home to 350 Higher One employees (200 net new employees). Image 3. Science Park Tract A/Higher One 360 State Street Located on former city-owned parking lot and developed by Becker and Becker, this is a 32 story mixed-use tower funded with both public and private money. This building is LEED certified and is the largest private investment in Downtown New Haven in the past two decades. The first residential tenants arrived in August 2010 and the building is currently 85% occupied, ahead of developer s rent-up schedule. Residential Units: 500-units, of which, 50 are affordable units Retail Space: 20,000 sq. ft of floor retail with an urban grocery store (Elm City Market) Parking: 500 spaces of structured parking Project Cost: $190 million Image State Street Source: New Haven City Plan Department, 2013 Source: New Haven City Plan Department,

4 Gateway Community College Gateway Community College s new campus opened in September 2012 and brings 11,000 students, 440 dedicated full and part-time members, and 122 committed staff members to Downtown every weekday. This development is funded with a State of Connecticut Department of Economic and Community Development including the demolition of the former Macy s department store, the transfer of that parcel and of the adjacent parcel to the State of Connecticut for the construction of the college. Total Floor Area: 358,000 Square Feet Parking: 600-space parking garage & 700 leased spaces Image 5. Gateway Community College New Haven Harbor Crossing Corridor (I-95) Improvement Project New Haven is at the center of interstate traffic between New York City and Boston, and as a result Interstate 95 carries approximately 130,000 vehicles per day. To accommodate this traffic, the Connecticut Department of Transportation (CT DOT) is reconstructing and expanding 7.2 miles of I-95, between Exit 45 in New Haven and Exit 54 in Branford. The new Pearl Harbor Memorial Bridge, the centerpiece of this effort, will be a signature ten-lane extra dosed cable-stayed bridge, the first of its kind in the United States. The corridor project also includes improvements to the I-91/I-95 Interchange, such as the new I-95 flyover, which improves access into the City for eastbound traffic. Project Duration: Project Cost: $2.2 billion River Street Municipal Development Project Source: New Haven City Plan Department, 2013 The River Street Municipal Development Project was established in 2002 to ensure the responsible development of the 53-acre industrial district bordered by James, Ferry and Chapel Streets and the Quinnipiac River on the southern end of Fair Haven. The goals of the plan are to generate quality jobs and investment through industrial and commercial development, preservation of historic buildings, enhancement of pedestrian access to the waterfront and improvement of the area s infrastructure. Successes to date include: Four new businesses: Suraci Metal Finishing, Capasso Restoration, New Haven Awning and HER Design 100 total new jobs $2.5 million in building renovation investments Roadway and bulkhead improvements 10.4

5 Housing Authority of New Haven (HANH) HANH is one of 32 designated moving-to-work communities by the US Department of Housing and Urban Development. As such, HANH is implementing innovative approaches to housing assistance programs and has actively engaged the City and community with new social programs for tenants and capital facility improvements. HANH s portfolio includes 2,542 units in a variety of public family and elderly facilities. Monterey Place: Among the earliest HOPE VI projects in the country, Monterey Place leveraged federal and city dollars with substantial contributions from the City and private equity partners. This project created a 392-unit mixedincome neighborhood that follows a traditional New England street pattern. This project cost $89 million and has been fully completed and occupied since June Eastview Terrace: Renovation of Eastview Terrace apartments was completed in May The $48 million project produced 90 rehabilitated units, 112 newly constructed units and a new community center. Quinnipiac Terrace: The reconstruction of Quinnipiac Terrace, situated on the Quinnipiac River in the historic Fair Haven neighborhood, is a $20 million program providing 229 new affordable rental and homeownership units. The first two of three planned phases have been completed. Phase I, included 81 rental units, of which 23 are Section 8 units and 58 are ACC units and was completed in Phase II comprised 79 rental units of which 23 are Section 8 units and 56 are ACC units. Phase II also included construction of 16 affordable homeownership units. Quinnipiac Terrace Phase III (North and South) is projected at $15 million to develop 33 rental units (17 LIPH and 16 Housing Choice Vouchers). New Rowe Residences: In late 2009, the City of New Haven, HANH and Boston-based Trinity Financial finalized the Cooperation Agreement for the new William T. Rowe Development. The innovative $38 million project will be constructed on land acquired in a land swap with Yale New Haven Hospital and will replace the dilapidated and underused building at 904 Howard Avenue. The new apartment building includes 104 units of affordable housing 38 subsidized units for low income persons, 40 Section 8 units, and 26 units for working families. The building also includes 26 unrestricted market rate units and has integrated 2,000 s.f. on-site supportive services and 2,000 s.f. of ground floor retail space. West Rock Redevelopment: HANH is undertaking the $190 million redevelopment of the West Rock area. The current redevelopment plan provides for 545 total units, as well as the following programs and projects: 455 rental: 198 public housing units; 197 project based units; and 60 market rate rental units 90 homeownership: 55 assisted units and 35 market rate units Expansion of existing community to between 8,000 and 12,000 square feet Homeownership training for potential homebuyers Comprehensive Community Service Program to help promote economic selfsufficiency of the residents Development of mixed used facility at 122 Wilmot 10.5

6 Upcoming New Developments Science Park at Tract A-Phase 2 Phase 2 of this project is anticipated to start in 2013 and will include residential housing and ground floor retail space. Office Space: 140,000sf Residential Units (Phase 2): Permanent Jobs: 350 Project Cost (Phase 1): $45 million Downtown Crossing This is a planning project that connects Route 34 between Union Avenue and York Street with two urban Boulevards, and new or rebuilt crossings at Orange Street, Temple Street, and College Street. In 2000, a fully designed project to extend Route 34 was cancelled by New Haven and CONNDOT between York Street and Ella T. Grasso Blvd. As part of a physical design framework of infill and redevelopment, the final plan will connect Yale- New Haven Hospital, Union Station, the Hill and Downtown in a mixed-use, transit oriented fashion. The land is city-owned and the plan is designed to create a more livable city with multimodal transit system. Image 6. Downtown Crossing Image College Street Source of both images: Downtowncrossignewhaven.com,

7 Phase I/Tiger II Grant Phase I partially funded by a $16 million federally competitive Transportation Investment Generating Economic Recovery (TIGER) II US DOT grant. Phase I includes: conversion of North South Frontage Roads to urban boulevards with various road, streetscape, bicycle and pedestrian enhancements, reconfiguration of local street connections in the study area, and removal of the existing College Street Bridge to be replaced with a fill structure. The construction for this has already begun in spring All of these changes are done to facilitate development in its surrounding parcels, including the development of 100 College Street. 100 College Street Winstanley Enterprise's proposed building will be the first developed in the City s Downtown Crossing project. The 100 College Street site is located in the existing Route 34 right-of-way and takes full advantage of proximity to Yale New Haven Hospital and the Yale School of Medicine. Winstanley expects construction to begin in Medical / Lab Space: 400,000sf Construction Jobs: 2,000 Permanent Jobs: 960 Project Cost: $140 million Economic Impact: $73 million (direct) and $152 million (indirect) Phase One Cost: $32 million Resulting Developable Land: 10.5 acres Infrastructure funding: TIGER II ($16 million), CT DECD ($3.95 million), CT DOT ($4.9 million), City of New Haven ($7.0 million) In June 2012, Alexion Pharmaceuticals announced it will be 100 College Street s first tenant and will occupy 300,000 square feet of the building, initially with 300 employees and with plans to add 300 more over the next five years. Alexion has a market cap of $17.5 billion and operations in 30 countries. 10 Wall Street City acquired the 1.07 acre lot in In 2012, the City won a $200,000 grant from the US EPA to assist in the environmental cleanup of the lot. This is planned to be a mixed-use commercial development. Once remediation is completed the site will be redeveloped for development. 10.7

8 205 Church Street Redevelopment 205 Church Street, located at the corner of Elm and Church Streets, across the New Haven Green is a building that underwent a $7 million renovation in It was recently sold to residential developers Cooper Square Realty, a NY based developer for $13.5 million ($89/sf). The Seller was Hamsphire Hotels, who formerly purchased the property in a failed attempt to redevelop the property into a hotel. Cooper Square Realty will try to redevelop the property for multifamily use for 145 units ($93k per unit). Total Floor Area: 175,000 gross sq/ft Project Renovation Cost: $93K per unit Image 8. Proposed New Haven Coliseum Site Former New Haven Coliseum Site In September 2011, the City of New Haven entered into a Memorandum of Understanding with Live, Work, Learn, Play (LWLP) and Newman Architects as the development plan for the current Coliseum Site. The current objective is to develop the 4.5 acre former Coliseum site into a vibrant mixed-use neighborhood that helps connect and grow sections of the city. The preliminary concept plan shared by the developers indicate that they plan to construct 524 residences in five-to-six story mixed income buildings with retail all along the landscaped streets; a distinctive hotel rising on the corner of MLK Boulevard and Orange Street that would run along Orange across the Connector into the Hill; an office tower on State Street; a fitness center; a public square vibrant with community-planned events; and a laneway with spots for 35 best of the best entrepreneurial, unique, carefully screened New Haven businesses. Source: Conceptual Rendering by LWLP Developers,

9 Dwight Gardens The City of New Haven Office of Livable Cities Initiative is working with First National Development, a national recipient of NSP II funding for the renovation and rededication of Dwight Gardens, a cooperative with low- and moderate-income members consisting of 80 housing units of which approximately 55 were occupied; the co-op had fallen into foreclosure in The development represents a mix of public and private financing with an aggressive rehabilitation schedule that will transform the structures into a healthy and livable complex. The new Dwight Gardens development will consist of Eighty (80) fully renovated housing units -- forty (40) project based Section 8 public housing units, 20 units for individuals with income not to exceed 80% of Area Median Income (AMI), and 20 units for individuals with income not to exceed 120 percent of AMI. Planning Opportunities Medical District Planning The Office of Economic Development is partnered with the Economic Development Corporation of New Haven, Yale University and Yale New Haven Hospital for comprehensive planning for the Medical District south of the Route 34 Expressway and from Union Station in the east to the new Smilow Cancer Hospital in the west. The strategic plan for the area will include a framework for managing the expansion of Yale s Medical School, Nursing School and School of Public Health; Yale New Haven Hospital; and the ancillary office and laboratory space to support these economic drivers. Medical District planning includes major infrastructure improvements including rationalizing the street grid and increasing connections to ensure greater accessibility both to Downtown north of Route 34 and to Union Station at the eastern edge of the planning area. Planning also includes efforts to improve residential areas at the periphery of the planning area, including Church Street South, a 301-unit low-income housing development, adjacent to Union Station. Mill River Planning and Economic Development Study The City s Office of Economic Development, in partnership with the Economic Development Corporation of New Haven, is undertaking a comprehensive planning and economic development study of the Mill River industrial district. The district is home to a small DECDapproved municipal development plan area, which may be expanded to address deteriorating and vacant properties along the river and to take advantage of emerging growth opportunities in advanced manufacturing and food processing. The final study will help guide development in Mill River to maximize job creation and private investment, while enhancing the district s physical appearance. 10.9

10 Route 34 West Municipal Development Plan The City is also actively seeking to develop the vacant Route 34 highway corridor, west of Dwight Street. Between 1966 and 1970, the State of Connecticut acquired 26 acres of land, clearing all buildings within the right-of-way in preparation for the extension of the Route 34 Expressway to connect Downtown New Haven with Woodbridge and eventually with Route 8 in Derby. However, the project created only the two one way frontage roads. The State of Connecticut abandoned plans to extend the expressway in The median strip between these two roads remains largely vacant and acts to separate the Dwight and West River neighborhoods north of the median from the eastern portion of the medical district and the Hill neighborhood south of the median. The eastern-most portions of the project have already resulted in the development of two ancillary buildings associated with the Smilow Cancer Hospital at 2 Howe Street and 55 Park Street, as well as the earlier development of the Pfizer Clinical Research Unit, all tax generating properties. Future development will focus on the area from Dwight Street westward to Ella Grasso Boulevard The project will evolve in phases over the next 20 years. Current planning envisions a comprehensive revitalization of the area which includes 45 parcels totaling approximately 37 acres. The development of these parcels is expected to produce new housing units, 60,000 to 80,000 square feet of retail and commercial space and approximately 200,000 to 250,000 square feet of additional office and bio-medical space. Hill to Downtown Planning Initiative The City of New Haven in partnership with the Economic Development Corporation (EDC) embarked on the Hill to Downtown Planning Initiative in September 2012 in an effort to connect the new and current projects across the stretch from Union Station to Yale New Haven Hospital. The goal is to increase connectivity and density while minimizing the impacts to the existing neighborhoods. The Yale New Haven Hospital s Nursing School site, City s Police Station site, and Church Street South apartment complex have been identified as the potential opportunity sites for development within the study area. Church Street South Redevelopment The City of New Haven is in partnership with HANH and North Development Company to plan the redevelopment of the Church Street South housing complex. In 2010, the City received a $ 1 million Challenge Grant from HUD to plan for the redevelopment of Church Street South. The 310-unit housing complex is privately owned and currently reserved exclusively for low-income residents. The complex is located on a strategic triangle of property at the intersection of Church Street South and Union Avenue, directly across from Union Station. Planning is underway to provide a framework for redevelopment at the site and in the surrounding district

11 Image 9. Hill to Downtown Planning Initiative Source: Hill to Downtown Planning Initiative s September 2012 PowerPoint Presentation; EDC