Hartford neighborhood project faces financing withdrawal setback

A significant setback has occurred in the redevelopment of a key area in downtown Hartford, Connecticut. The Michaels Organization, the preferred developer for this project, is withdrawing due to financial challenges. Michaels was chosen in late 2022 to transform a large parking lot near The Bushnell Center for the Performing Arts into apartments and storefronts. However, high interest rates and rising construction costs made it hard to secure financing. The Capital Region Development Authority (CRDA), overseeing the project, has agreed to let Michaels step away after they couldn't find viable solutions. Michael W. Freimuth, CRDA's executive director, expressed frustration over the difficulties faced during the project. He said, "There were more questions than answers." Plans for the Bushnell South neighborhood have been in discussion for years, aiming to include up to 1,000 apartments and various amenities to connect Bushnell Park with downtown. With Michaels' departure, the future of the nearly 3-acre site is uncertain. CRDA must now decide whether to seek new developers or consider changes to the project, possibly including more homeownership options. Geoffrey S. Lewis, from Michaels, noted that the project became increasingly complex due to economic conditions. Though Michaels had previously planned around 360 rental units and commercial space, the project faced multiple revisions that made it hard to proceed. Other developments in the Bushnell South area are moving forward, with a focus on new apartments and improving local infrastructure. However, the departure of Michaels has put the larger vision for the neighborhood on hold. Further decisions will likely wait until a new CRDA executive director is appointed later this year.