A lawsuit by a major New Jersey developer is illustrating the increasingly common pattern of suburban Connecticut communities eagerly seeking new retail while investors and builders hold out for more heavily residential projects — particularly market-rate apartments — instead.
The Silverman Group’s suit contends that Simsbury’s zoning commission wrongly rejected its plan to build 432 apartments on half of what was once The Hartford’s campus along Route 10 just west of the Farmington River.
Commissioners cited a series of reasons for the vote, but one significant part of the discussion centered on how the town wants more stores, restaurants, health care or technology centers or even offices on the property as a way to build vibrancy. Silverman contended that retail simply isn’t a good market right now, while the demand for office space since Covid has plummeted.
That split has hit many communities in the country as the brick-and-mortar retail industry suffers while housing shortages worsen.
Mixed-use developments, typically mid-rise buildings with ground-level shops beneath several floors of apartments, have been a popular way to create more retail and housing at the same time. That’s been particularly true near train stations as part of a walkable, transit-oriented development concept that’s less reliant on cars and highways.
But the burgeoning demand for apartments combined with the slump in traditional stores has been challenging that way of doing business. In Connecticut, large developers told both South Windsor and Portland last year that new retail or commercial space would have to play a smaller part in future developments, while additional apartments would be essential.
In Simsbury, at stake is what becomes of dozens of acres where The Hartford once employed 1,500 workers in nearly 700,000 square feet of offices. The campus provided about 2% of the town’s tax base before the insurer closed the operation in 2013.
Simsbury then established special zoning rules for the 172-acre property, the single biggest tract available for development at the time. A key goal was to foster mixed-use development, with a view toward recouping part of the job base as well as encouraging a village-style atmosphere and establishing a fresh flow of tax revenue.
The Silverman Group bought all 172 acres, demolished the buildings on the southern half and turned the mostly undeveloped northern side into The Ridge at Talcott Mountain. That project has just under 300 apartments and townhouses along with an assisted living center.
Both Silverman and the town acknowledge that the retail component was dicier. Silverman has said it couldn’t find tenants for the small commercial building it put up, and only recently signed a deal for the Goddard School to open a location there this year.
The property’s southern sector has been even more problematic. Silverman initially came in with an all-residential plan, asking to build a sprawling 580-unit apartment complex in a series of four-story buildings. It made extensive modifications after public pushback.
The company slashed the unit count to 432, cut the height of buildings to three stories, and pushed up the share of affordable housing from 10% to 15%. And it agreed to 27,500 square feet of commercial space with a 5,000-square-foot restaurant.
But Silverman held firm on not expanding the retail and commercial share of the acreage, and also refused something that numerous residents called for during a series of hearings: Make some of the housing for sale instead of for rent. At one point, the company told commissioners that building for-sale homes behind apartments would be a money-losing strategy.
Commissioners rejected Silverman’s suit 5-1, and the company sued.
Silverman contends the special zoning rules for the site are unreasonably vague and also says that requiring for-sale housing or additional retail development goes beyond the commission’s authority. But the town said that its expectation of truly mixed-use development is clearly explained in the rules, and emphasizes that they were in place before Silverman bought the land.
Silverman submitted a detailed brief on its position in January, and an attorney for Simsbury submitted its response two weeks ago. Hartford Superior Court Judge Edward O’Hanlan is handling the case.
Originally Published:
