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March 2, 2023

Manchester seeks bids for Tong building, new home for bank

By Joseph Villanova, Journal Inquirer

The town of Manchester began seeking bids Wednesday for a mixed-use development on 2.38 acres along the south end of Main Street to provide commercial and residential space, as well as a new location for Webster Bank.

The project packages together 942 Main St., a 0.79-acre property known as the Tong building, and the adjacent 1050 Main St., a 1.59-acre town-owned parcel with 116 parking spaces known as the Forest Street parking lot.

Objectives for development of the parcels include increasing residential and commercial density in downtown Manchester, providing new housing and employment opportunities, and driving pedestrian traffic for existing businesses and a new library to be built across the street at 1041 Main St. where Webster Bank now sits.

Town Manager Steve Stephanou said projected tax revenue from the project is expected to generate significantly more than the existing uses of the site and increase economic conditions and activity for downtown.

The town closed on its $1.75 million purchase of the Tong building this week, following a 5-2 vote by the Board of Directors in early February.

Stephanou said the purchase was financed using a fund that leverages fees on commercial vendors who dispose of waste at the town’s Olcott Street landfill.

According to town assessor documents, the property had an assessed value of $513,200 during the 2021 revaluation and was appraised at $733,200.

Stephanou said the town acquired an appraisal from R.F. Hagearty & Associates in May 2022, which valued the Tong building property at up to $1.15 million in its current condition.

Stephanou said the town has a list of on-call appraisers that were chosen through a public, competitive bidding process. This latest appraisal cost the town $3,000, he said.

Town officials plan to demolish the Tong building by February 2024, and tenants have until the end of 2023 to vacate.

The Forest Street parking lot was assessed at $175,200 during the 2021 revaluation and appraised at $250,300, according to town assessor documents. Officials have said deed restrictions allowed the owner of 942 Main St. to veto development of the parking lot prior to the town’s purchase of the Tong building.

The town is seeking bids on the project until April 26. After a bid is awarded, the selected developer will enter an agreement to purchase or lease the land. An agreement would include transfer of development rights and reversion of the land titles for failure to perform, as well as a scheduled timeline for the project.

Though the town is open to a lease agreement, selling the parcels is preferred, according to the request for proposals.

Director of Planning and Economic Development Gary Anderson said the chosen developer would finance its own project. The town does not plan to offer specific financial incentives, but respondents are asked to include in their bids any assistance they would desire.

The RFP requirements say the town is looking for a plan that accommodates a mix of traditional downtown uses, including retail, residential, and office space.

Bids are expected to have at least one multi-use building, with retail on the ground floor and residential or offices above.

The town also requires space for a bank branch of 2,000 square feet, either as part of a multi-use building or a standalone. Webster Bank would lease the new space, after a planned sale to the town of its 1041 Main St. branch for an as yet undisclosed price.

Voters in a November 2022 referendum authorized the town to bond up to $39 million for construction of a new main library at 1041 Main St. The funds include site acquisition costs, but does not specify a dollar amount.

Stephanou said the town is negotiating with Webster to take ownership of 1041 Main St. and would not comment on a sale price.

Stephanou said Webster continues to be a supportive partner, and a purchase and sale agreement should be ready in the coming months. Officials expect construction on the library to begin some time in 2024.

Requirements in the RFP also include a minimum of 50 off-street public parking spaces available during daytime hours. The requirements leave open whether the parking could be privately owned, with an agreement for its use, or kept by the town.

Proposed designs also must blend in with and complement existing buildings in the area, the RFP states.

Space for Webster Bank must be included in the first phase of any proposal in order to fit the timing of the library project. Plans could provide a temporary bank location, if necessary.

Favorable elements that are not required include accommodations for existing tenants, a bus stop or rideshare pickup and drop-off point, and affordable housing units.

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