Hartford dealt stunning blow in redevelopment around Dunkin’ Park

HARTFORD — The city’s efforts to build around Dunkin’ Park could be set back months — even years — now that a court ruling blocks further development until a new trial determines whether the original developers were wrongfully terminated from the project in 2017.

The ruling, filed Tuesday, is a stunning blow to the city’s plans to push forward with the next phases of North Crossing. Plans for the massive redevelopment, expected to cost $200 million or more, is expected to eventually include as many as 1,000 apartments, parking garages, retail and entertainment space.

A new trial, ordered by the state Supreme Court last year, isn’t set to begin until April 2024.

The redevelopment project is intended to transform a jumble of city-owned parking lots into a new block and reconnect the area to downtown, just to the south. The area was effectively severed from downtown decades ago by interstate highway construction.

But the development also has high stakes for city taxpayers. The redevelopment was aimed at generating taxes to pay for the $70 million, city-financed ballpark.

The ruling by Superior Court Judge Cesar A. Noble came as the city sought to put to rest claims by the original developers — Centerplan Construction Co. and DoNo Hartford LLC — that it still had rights to develop around Dunkin’ Park. The city’s argument was in advance of the new trial, in an effort to move ahead with the next phase of North Crossing.

But Noble disagreed, dismissing the city’s motion Tuesday.

Long-running legal battle

Noble’s ruling is part of a larger, long-running legal battle between the city and its former developer. Centerplan and DoNo Hartford, stretching back to 2016. The developer filed a civil lawsuit claiming they were wrongly fired by the city from the ballpark construction project in 2016; and then, a year later, the mixed-use development around the 6,100-seat stadium.

In 2019, a Superior Court jury sided with the city’s decision to terminate the developers. But last year, the Supreme Court ordered a new trial because the critical question of who had legal control over the stadium architect and its design was ambiguous.

The developers have argued it was the city, that the designs were flawed, resulting in cost overruns and delays in the ballpark’s construction. That all culminated in the termination of the developers by Hartford Mayor Luke Bronin. A new contractor subsequently completed the stadium, pushing back its opening a year.

With a new trial ordered, Centerplan and DoNo Hartford last year also moved to essentially take back control of the development around Dunkin’ Park.

After its 2019 court victory in the wrongful termination lawsuit, the city chose a new developer, RMS Cos. of Stamford, to take over the redevelopment. The first phase of 270 apartments has been completed, but litigation over who has the right to develop, prevented RMS from breaking ground on the second of four planned phases.

“When we learned back in 2019 that the city had retained another developer, we put the city on notice that DoNo Hartford was appealing the trial court’s decision,” Louis R. Pepe, a partner in the law firm McElroy, Deutsch, Mulvaney & Carpenter in Hartford, said Wednesday. “Not withstanding that warning, the city will have to deal with consequences of that decision.”

Pepe said his client were pleased with Noble’s ruling, noting it had successfully competed for the development rights for the parcels around the park.

“And they are just as willing, ready and able to develop them today as they were then,” Pepe said.

‘Here for the long haul’

While RMS is “extremely disappointed” by Noble’s ruling, the prospect of a delay has not dampened the company’s enthusiasm for building more housing in Hartford, according to its chief executive Randy Salvatore.

The first phase, named The Pennant, is now 95% occupied.

“Obviously I’m here for the long haul,” Salvatore said Wednesday. “It’s no different from when the original litigation was there. Once it’s settled, we’re going to build. It’s no different now. We’re ready to go. I’m more optimistic now because of the success we’re had on the first building.”

Salvatore is embarking on another project in the city: the conversion of the top floors of the nearby Hilton Hartford in 147 apartments in an $18 million project.

Salvatore also has been mentioned as a possible buyer and developer of the former Rensselaer Polytechnic Institute campus, which is adjacent to North Crossing. Development attention is likely to shift to the 13-acre campus if North Crossing remain stalled. Salvatore has declined to comment on the speculation.

Bronin made the decision to fire Centerplan and DoNo Hartford, but the developers were hired by his predecessor, Pedro E. Segarra.

The redevelopment has now spanned two mayoral administration and promises to cross into a third.

On Wednesday, Bronin, who is not seeking a third term in November, issued a statement calling the court’s decision “very disappointing.”

“We are carefully reviewing the decision and will determine if there are immediate steps that we can take to allow the development of the parcels to go forward while we prepare for a new trial in 2024,” Bronin said. “While this is clearly a setback to our effort to further develop the parcels surrounding the stadium, we are confident that, in the end, the city will prevail in the litigation with Centerplan and DoNo.”

Kenneth R. Gosselin can be reached at kgosselin@courant.com.