Middletown Approves Tax Incentives For New Downtown Apartment Building

MIDDLETOWN The common council has approved a tax incentive plan to allow a developer to build a six-story, 89-unit apartment building at the corner of Broad and College streets.

Massachusetts-based Hajjar Management Co. has proposed a combination of market-rate studios, one- and two-bedroom apartments with commercial space on the first floor. The new apartments will be built on the vacant portion of the MiddleOak office tower property, which Hajjar owns.

The council Tuesday night unanimously approved the incentive plan, which freezes taxes at the current level for 7 years and caps building permit fees at $142,600.

In exchange, Hajjar will rent to the city 175 parking spaces in the office tower's garage for $20 each during the construction of a new parking garage behind the Superior Court building.

Officials said the parking agreement gives the city a place for employees to park to replace the several hundred parking spaces that will be unavailable while a new garage is being built.

Councilman Gerald Daley said the city has a duty to offer incentives when a project could bring huge benefits with it.

"That's just the reality of what we have to do and it's been a key to our success in the last 20 years," Daley said. "I can't overstate how excited I am about what this is going to do for the downtown."

Several business owners and other developers in the Main Street area spoke in favor of the project because of the new customers it would bring into the central core.

Peter Harding, the developer behind the Riverview Center and Liberty Commons projects, said having available residential units is vital to the success of the city.

"It is the need that has not been met yet," Harding said. "This project is a necessity."

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Middletown Approves Tax Incentives For New Downtown Apartment Building