Connecticut Main Street Center

Connecticut Main Street Center

For Immediate Release

November 12, 2013

Contact: Christine Schilke


New Report Frames Obstacles, Opportunities for Developing Downtown Housing Above Commercial Space


(Hartford, CT - November 12, 2013) - Connecticut's downtowns have a wealth of potential to redevelop under-utilized buildings into housing above commercial space - if mixed-use development can be encouraged through financing and favorable regulations, a new report from the Connecticut Main Street Center (CMSC) finds.


CMSC's Come Home to Downtown report frames the challenges facing mixed-use development in the State. 

The report culminates the first year of Come Home to Downtown, a pilot program CMSC created to facilitate viable, interesting housing opportunities while revitalizing downtown neighborhoods after it was contracted by the Connecticut Housing Finance Authority (CHFA) in 2012 to promote housing in Connecticut's downtowns.


"You see it on an almost daily basis - news articles and reports showing the demand, especially among Millennials and Baby Boomers who want to live in walkable, interesting places. It doesn't seem to matter if the downtown is large or small, as long as they can live there and get around without a car to go to the movies, grocery store or coffee shop, that's where people want to be these days," said John Simone, CMSC President & CEO. "Come Home to Downtown aims to create this type of mixed-use development, but the first thing we had to do - what we spent the first year on - was really framing the issues and identifying the challenges and opportunities surrounding mixed-use development in Connecticut."


Over the course of the first year CMSC chose three communities - Middletown, Torrington and Waterbury - as well as three property owners and their buildings as the focus of the program. Engaging an expert team of consultants, CMSC worked with municipal officials and the building owners to develop viable redevelopment options including: determining what financing would likely be needed for redevelopment; performing an assessment of zoning and regulatory requirements; reviewing the downtown management function; and measuring the downtown's walkability. Specific recommendations for improving the buildings, including a recommended floor plan designed to attract new residents and bring market rate housing downtown, was also provided to each property owner. Once rehabilitated, these buildings will create 60 new units of rental housing in downtown Middletown, Torrington and Waterbury, as well as make approximately 25,000 square feet of commercial and retail space available. The total development cost to renovate all three buildings is estimated to be $11.4 million.


CMSC also purposely chose buildings typically found throughout Connecticut so they could serve as models for other towns. As a result, most of the findings expressed in the report apply to any Connecticut downtown wishing to maximize the potential of its existing infrastructure.


The report's seven key findings are:

  • There is a huge amount of potential for accommodating mixed-use development - which both saves and generates monies - in Connecticut's downtowns. According to the U.S. Environmental Protection Agency, the infrastructure costs to service compact, dense development like that found in mixed-use neighborhoods are one-third to one-half lower than in suburban areas. Unfortunately, almost every downtown in Connecticut has at least one building that is under-utilized, containing a store or restaurant on the first floor, but with upper floors that are vacant or used for storage that could instead generate income if converted to apartment homes. A study recently completed for Main Street Iowa by economist Donovan Rypkema calculated that every new unit of downtown housing spent $20,000-$39,000 in the downtown annually.
  • Mixed-use development is one of the hardest types to accomplish. There are several reasons why this is the case: these buildings are usually older and in need of greater rehabilitation; they are in need of complex financing from multiple sources; combine several uses in one building (such as housing and retail space); and are often owned by people with little to no redevelopment experience.
  • A severe lack of financing impedes the growth of mixed-use development. Because these deals are so intricate and multi-faceted, financing for the total development costs rarely exists from traditional sources.
  • Education and outreach to owners of possible mixed-use property is needed. Property owners are often unprepared for the complex process of redeveloping their building and unaware of the potential benefit in doing so. Very often, they also need assistance learning how to become landlords and attract good tenants. With the Come Home to Downtown program, "There is now a better understanding of what the next steps need to be, and a greater appreciation of the importance of the public-private partnership that is necessary to overcome the challenges and achieve reuse of these properties," said Rose Ponte, Torrington's former Director of Economic Development.
  • Private-owners are in a catch-22 when it comes to obtaining financing. With regard to apartment homes located in mixed-use buildings, private owners can either apply for subsidies if they place income/affordability restrictions on the apartments, or the units are not restricted, but there is no subsidy for apartments at the same rental rate.
  • Even when zoning regulations promote redevelopment, they are often not enough to enable mixed-use growth. Favorable zoning regulations are important, but they cannot create mixed-use development by themselves. Each of the pilot communities had zoning policies that allowed for buildings with a mix of uses - a practice which should be commended and encouraged - but there were still significant impediments to promoting this type of growth. In addition, lessening current on-site parking requirements as a whole will also help promote housing in our downtowns.
  • Downtown Management capacity is critical to the success of mixed-use development. Any community interested in promoting revitalization of its downtown should consider enhancing its management function by becoming a resource center for mixed-use development, including convening key stakeholders, collecting data, offering education and information and coordinating development incentives.

"CMSC's report provides insights that will guide future housing development on Main Streets across Connecticut. The first year of the Come Home to Downtown program is not only creating opportunities to establish new rental housing in downtown neighborhoods, it's creating a model for other communities to follow,"   said Eric Chatman, President & Executive Director of CHFA.    


CMSC is also pleased to announce that CHFA recently contracted with CMSC for Year 2 of the pilot program. While the goal of the first year of Come Home to Downtown was to frame the challenges to mixed-use development, the second year will focus on finding and creating financing for this important development. As a result, CMSC will choose two new communities while continuing to work with the property owners and municipal officials in Middletown, Torrington and Waterbury to further the progress gained during the first year and secure financing.


"We couldn't be more pleased CHFA recognizes how important this work is and what CMSC brings to the table," said Mr. Simone. "We're looking forward to working even more closely with CHFA in the coming year to develop solutions that enable mixed-use development which is just so critical to Connecticut's future, especially with its investment in CTfastrak and the New Haven-Hartford-Springfield rail line. Creating more walkable, sustainable and profitable downtowns is in all our best interests."


To view the full report and executive summary, visit CMSC's website at  





About Connecticut Main Street Center 

Connecticut Main Street Center is a statewide nonprofit that inspires great Connecticut downtowns, Main Street by Main Street. Its mission is to be the champion and leading resource for vibrant and sustainable Main Streets as foundations for healthy communities.


Connecticut Main Street Center's network of member communities reaches across the State. Since the Connecticut Main Street program began in 1995, Designated Main Street programs have generated over $1 billion in public and private reinvestment in their downtowns. Over the same time, 425 net new businesses have opened and 2,538 net new jobs have been created. For every $1 spent on a local Main Street program, $71.33 has been reinvested in CT Main Street designated downtowns, making the Main Street initiative one of the most successful economic development programs in the country.


CT Main Street Center is supported by Founding Sponsors, the State of Connecticut Department of Economic & Community Development and The Connecticut Light and Power Company, and by Growth Sponsors, The United Illuminating Company and the Connecticut State Historic Preservation Office. For more information, visit 


Christine Schilke




Connecticut Main Street Center
c/o CL&P, PO Box 270

Hartford CT 06141 

Inspiring great Connecticut downtowns, Main Street by Main Street.