Milford Mall May Not Survive Unless Apartments Allowed: Officials

MILFORD, CT — The owner of the Connecticut Post Mall has a blunt message for city officials who may be on the fence concerning the company's proposed $75 million luxury apartment complex plans.

"Failure to allow this first-class investment will prevent the mall from stabilizing and could be the end of the property as an enclosed mall," officials said in its plans to the city of Milford. "Failure to invest now could cause the property to be one of the malls that does not survive the shakeout."

"The mall is not doing ok," said Steven Levin, Founder and CEO of Centennial Real Estate, in an interview with Patch. "The reality is the mall cannot maintain itself. It cannot stay the status quo."

He said the Milford mall at 1201 Boston Post Road is in better shape than most because Centennial was able to add Boscov's and Dave & Busters over the past few years. But it's not nearly enough to save the mall.

Levin said there are no more big retailers to recruit to fill the ever-growing empty spaces.

"We can't keep doing that. Unfortunately the story is written," Levin said concerning the dire status of retail in this county.

He said that is why the company is deciding to be ambitious with its 300-unit apartment complex, which includes a gym and pool on the mall property.

"We have to do this in order for the mall to move forward and not move backwards," Levin said. "We want to be a viable economic amenity for the community. This is how it's done, and we're committed to work to make it happen, but we must have the city's support."

The last part of Levin's quote may be targeted directly at Milford City Hall. Mayor Ben Blake has spoken out against the apartment plans and asked the state's largest mall to come back with something different such as an office or medical complex.

Mall owners spent 90 minutes this week presenting its plans to the Planning and Zoning Board and another hour fielding questions from members. No vote was taken and the next meeting is scheduled for Oct. 6. There is no guarantee that a final vote will be held then either. The mall needs a regulation change in order to move forward with its plans.

After the meeting ended, Jon Meshel, Senior VP Development of Centennial Real Estate, said he knows his company needs to do more "homework" to convince city leaders that this is the "right project for the right time" to help stabilize the mall's seemingly precarious future.

The mall is Milford's largest taxpayer contributing $3.8 million annually and that would increase to $5.1 million if the residential plans are approved.

Levin said without this apartment project the value of the mall will continue to decline and that $3.8 million tax figure will continue to erode.

"That $3.8 million figure will continue to deteriorate substantially," Meshel said.

What are the plans?

The plan calls for luxury, market rate apartments in a five-story building with an anticipated mix of 135 one-bedroom units, 135 two-bedroom units and 30 three-bedroom units. Plans include a pool and fitness center on site for the residents. The residential complex would be located on the southeast corner of the mall's parking lot.

The mass exodus of retailers

Sears and J.C. Penney's, two iconic realtors, have closed in recent years along with numerous other smaller retailers and the taxable assessed value of the mall property has declined from $176 million in 2010 to $149 million now.

The Connecticut Post Mall has experienced a 20 percent drop in visitors over the past five years, officials said.

Other retailers that have left the mall recently include: Justice, Payless, Hallmark, Red Robin, Charlotte Russe, New York & Company, Bar Louie, Abercrombie & Fitch, Yankee Candle, and GNC.

Long-term future of the mall?

Officials said the mall won't have a long-term future until it stems the bleeding with its apartment complex project now. If that is approved more work lies ahead and mall owners said they want to work with the city on future plans.

"Other components of the property will need to be redeveloped in the future," mall officials said. "There are opportunities to partner with the city and other stakeholders to craft a shared vision, custom and unique to the property. In order to craft a shared vision for the long term future, Centennial must first stabilize the property in the near term."

Mall officials have said another potential phase in the redevelopment would be a new use for the vacant Sears building. No specifics have been mentioned for the Sears building.

National trends that paint a nightmare picture for retail

• 25% of malls across the country will close in the next three to five years, according to analysts.
• More than half of department stores in America’s malls are expected to permanently close by 2021
• In 2019, retailers closed more than 9,000 stores, a 59% increase from the previous year.
• Analysts estimate that 15,000 stores will close permanently in 2020, a number that could go even higher depending on the duration and impacts of COVID.

Financial impacts of the apartment plans to Milford and state of Connecticut

• An estimated $1.21 million in new combined real and personal property tax revenues, a 28% increase
• The community will generate an estimated $1.2 million increase in local consumer spending
• The residential community at Connecticut Post will generate an estimated $3.48 million in wages in the first year
• An estimated 372 new jobs will be generated/sustained during construction with approximately 117 permanent jobs generated/ sustained

Direct impacts to Milford of the proposed apartment development

If the apartments are built it may add up to 36 additional school-age children. In 2008, Milford schools had 7,400 pupils enrolled and that number is currently at 5,500.

Mall officials estimate that even with the additional use of city services, the development would generate an additional $251,000 to $640,000 annually for Milford. Levin said most importantly this development will stabilize the city's largest taxpayer for now and into the future.

"The economic impacts include approximately $34.8 million in wages and an estimated $4,950,000 in discretionary spending of which $1,237,500 will be within Milford," officials said.

If plans are approved?

Once final approvals are granted, mall officials estimate that construction will take approximately two years.