In Hartford’s Parkville, a $92 million redevelopment wins key state funding approval

HARTFORD — A redevelopment of an abandoned factory that was once a cornerstone of Hartford’s Parkville neighborhood won a key, state funding approval Friday for a $92 million conversion into apartments and business incubator space — a project that could significantly boost the Parkville Arts & Innovation District.

The highly-ambitious conversion of the 3-story, former Whitney Manufacturing Co. would take its place among the largest and most complex redevelopment projects in the city in the last decade.

On Friday, a committee of the Capital Region Development Authority, the quasi-public agency that provides state taxpayer-backed loans for housing and other development projects in the city and surrounding suburbs, approved an $8.5 million loan for the factory conversion.

“This project I see, and the city sees, as a linchpin in the broader Parkville revitalization, redevelopment effort, which was accelerated by the creation of the Parkville Market and the expansion of the market which is now underway,” Hartford Mayor Luke Bronin, a member of the CRDA’s housing and neighborhood committee, said, at Friday’s meeting. “And to really build on that momentum, we want to create residential density and make sure that area around that market is a viable, walkable neighborhood and what achieves that is getting residential density in that vicinity.”

Creating a vibrant, energetic neighborhood is key to attracting — and keeping — workforce talent that will not only benefit Hartford but the rest of Connecticut, Bronin said.

Bronin also said the city’s strategic plan of development includes the Parkville Arts & Innovation District as one of the 10 projects that could transform Hartford by the time the city turns 400 in 2035.

Developer Carlos A. Mouta, a major force behind redevelopment in Parkville including the successful Parkville Market food hall plans 235 market-rate apartments on the upper floors of the factory, at the corner of Hamilton Street and Bartholomew Avenue, almost exclusively studios and one-bedroom units. The plans include 45,000 square feet of business incubator space on the ground floor to foster new start-ups.

Mouta told the committee he focused on studios and one-bedroom units because they are in demand in the neighborhood. Parkville’s existing three- and six-family houses accommodate larger families, Mouta said.

The planned rentals would include studios, one- and two-bedroom units ranging in size from 325 square feet to 975 square feet. About 60% of the units would be larger studios, at 450 square feet. Estimated monthly rents for the studios range between $1,089 and $1,281. One-bedrooms are estimated at $1,760, and two-bedrooms, $2,413. Rents include utilities and internet.

In addition, there would be 7 penthouses in existing space on top of the building. They would range in size from 775 square feet for a unit with one-bedroom to 1,225 square feet for two-bedroom units. Estimated monthly rents would range from $2,167 to $3,285.

CRDA’s full board must still approve the financing plan backed by its committee, and the State Bond Commission also must sign off. Construction — expected to start this year — is forecast to take about two years.

Mouta is nearing completion of an environmental clean-up at the property, funded by a $4 million city loan, included in the overall cost.

The conversion of the factory, built in 1906 with successive expansions until 1941, would help more sharply define the arts and innovation district. A major focus of the district is creating innovation space to form startups while providing space for them to grow and creating jobs at all skill levels. While the plan rests heavily on encouraging innovation, it also seeks to create new housing, after-hours dining and entertainment, and a thriving arts community —all aimed at revitalizing a long impoverished area of the city.

The district also seeks to tap into the roots of the Parkville neighborhood, once a hub of manufacturing turning out bicycles, typewriters and automobiles. Bartholomew Avenue is envisioned as the “spine” of the district.

The conversion of the Whitney Manufacturing plant would rival the stature of projects such as the $85 million conversion of the former bank headquarters at 777 Main Street into apartments, completed in 2015; the unfolding North Crossing development around Dunkin’ Park, the city’s minor league ballpark; and the planned Bushnell South project near The Bushnell Center for the Performing Arts.

In addition to $8.5 million CRDA loan, financing includes $12.8 million in developer equity, a $17 million bank loan, $26.4 million in historic tax credits, $5.75 million in deferred developer fees and a $17 million loan from the Connecticut Green Bank to improve the building’s energy efficiency.

Kenneth R. Gosselin can be reached at kgosselin@courant.com.