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April 30, 2008
Fort Trumbull Housing Plan In Jeopardy
NLDC chief doubts developer will meet deadline for financing
The Day (New London, CT)
by Kevin Dale
Another eminent domain-reliant housing plan, this one at the center of the Kelo vs. New London Supreme Court case, is imperiled by the troubled credit market. This doesn't happen when neighborhoods are allowed to develop organically.
Citing “turmoil” in the national lending market, New London Development Corp. President Michael Joplin said he has “grave doubts” that the Corcoran Jennison company will meet a crucial May 29 deadline to secure financing for its long-delayed Fort Trumbull housing development.
”It's almost impossible, so we have to start dealing with reality,” said Joplin, who broached the “most difficult topic” at Tuesday night's annual meeting of NLDC's full membership in the Crocker House Ballroom.
If Corcoran Jennison doesn't meet the deadline, the Boston-based developer would violate a December extension document in which it agreed to secure a loan and enter a construction contract for an $18.7 million, 80-unit development of rental apartments and townhouses.
The project, whose uncertain groundbreaking could now be delayed months if not years, would represent the first new, ground-up construction since eminent domain cleared portions of the peninsula for redevelopment.
NoLandGrab: The irony is that there was housing on the site, before it was seized by eminent domain and bulldozed to make way for... housing. Which isn't being built any time soon. Did someone say "bait and switch?"
Posted by eric at April 30, 2008 3:14 PM