Hartford Business Journal

www.HartfordBusiness.com • November 25, 2019 • Hartford Business Journal 3 By Matt Pilon mpilon@hartfordbusiness.com C ommunities in Connecticut and across the country are working hard to differenti- ate themselves as wealthy investors kick the tires on major develop- ments made potentially more lucra- tive by the federal "Opportunity Zone" program. Nationwide, nearly 9,000 eligible zones, including 72 in Connecticut, have been approved, which means there are plenty of options for inves- tors wanting to reduce or even elimi- nate their capital-gains taxes over the coming decade. Just how many of those mostly low-income areas actually attract OZ investment remains to be seen. However, as a handful of Greater Hartford communities continue to seek the attention of OZ funds and investors, Manchester may be an early contender. The Silk City remains in nego- tiations with a development team it selected over the summer to redevelop the former Broad Street Parkade mall site, which was a long-vacant eyesore when the town acquired and demolished it in 2012. The site has sat empty since then. Broad Street is one of two Opportunity Zones in Man- chester, and the developer, Man- chester Parkade I LLC, has told town officials the emergence of OZs could be a key enabler for an envisioned mixed-use proj- ect that would include office space, market- rate housing, retail and enter- tainment components. The LLC is led by Milford-based developer and clean-energy finan- cier Michael Licamele and Harry Freeman, a real estate developer and longtime municipal economic- development official in Greater Hartford. The partners were se- lected after Manchester parted ways with a prior developer, Montreal- based Live Work Learn Play, which pursued a Parkade project for about five years before things fell apart. Manchester officials touted the area's OZ status when it was searching for a new developer earlier this year. "Obviously, I think it makes a difference," said Gary Anderson, Manchester's director of planning and economic development. The developers and town, which are still trying to finalize an agree- ment, pushed their deadline to Janu- ary, but Anderson said he remains optimistic about the talks and Man- chester's desirability to investors. After all, it's the closest the town has come to a viable project on the site, he said. Optimism is probably a good quality for local officials banking on Opportunity Zones. Besides the steep competition, there's additional uncertainty about the program because it has rolled out more slowly than anticipated. Some regulations aren't yet final, and OZ funds have fallen short of projections so far, the Wall Street Journal reported in October. Citing a Novogradac analysis of 103 funds, WSJ reported that they had raised just $3 billion of their combined goal of more than $27 billion. That may portend challenges ahead, but Anderson hopes the OZ program will be a deciding factor that leads to a Parkade redevelop- ment, following years of work to retool the property. "It's one of our major priorities and has been for the past 10 or 12 years," he said. Most recently, the town was able Up Front Continued on page 4 >> TOWN PROFILE: MANCHESTER In Opportunity Zone scrum, Manchester's persistence could pay off WE FOCUS ON YOUR FACILITIES— SO YOU CAN FOCUS ON YOUR BUSINESS. The company that builds and installs the critical systems in virtually every type of facility is the same company you can rely on to maintain them. For over over 50 years, our clients have trusted us to deliver end-to-end facilities solutions, so they can focus on their core business. We design, install, and maintain systems in: Industrial, Manufacturing, Commercial, Higher Education, Healthcare, and Pharmaceutical facilities. 860.871.1111 Toll Free: 800.741.6367 nemsi.com MECHANICAL | ELECTRICAL | PLUMBING | SHEET METAL | BUILDING AUTOMATION | FACILITIES SERVICES License #'s: E1-0125666 S1-302974 P1-203519 F1-10498 SM1-192 MC-1134 NEMSI HBJ_QtrPg Ads_191009.indd 4 10/9/19 4:20 PM HBJ PHOTO | MATT PILON Manchester Director of Planning and Economic Development Gary Anderson is trying to negotiate a redevelopment of the former Broad Street Parkade mall site.

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