Milford Mall Is In Trouble: Here's How Owners Want To Save It

MILFORD, CT — It's no secret that the retail industry is dying a fast-death and the coronavirus pandemic has only accelerated that process. So what to do if you own the state's largest mall with more than 1 million square-feet of retail space that is increasingly going vacant.

Centennial, which owns the Connecticut Post Mall at 1201 Boston Post Road, said they've spent considerable time on this problem and believe they have a solution to the problem. However, that solution isn't currently supported by the city of Milford, and so we will see what happens once the project comes before the Planning and Zoning Board on Sept. 15.

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 entire value of the project is about $75 million, according to Jon Meshel, Centennial’s SVP of Development.

Mall officials said the situation is serious and without a major change to the site the city's No. 1 taxpayer is in jeopardy.

"Centennial is confident that the addition of a residential community will serve as a catalyst, advancing the property towards its mixed-use future," Meshel said. "This will in turn ensure the long-term viability of the Connecticut Post Mall, sustaining its role as an economic engine and the city’s top taxpayer.

"The proposed residences at the Connecticut Post Mall will be a vibrant addition to the community that will attract new residents while also providing new housing options for current residents who would like to live in Milford but may not want or need a single-family home," Meshel said. "Additionally, the project will create hundreds of new jobs and once completed, will generate an additional $1.25 million in real and personal property tax revenues every year."

What's the problem?

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 mall despite its shrinking assets is still the city's largest taxpayer contributing $3.8 million in tax revenues in 2019. That number would increase to just over $5 million if the apartment plans are approved.

The Connecticut Post Mall has experienced a steady decline in shopping resulting in growing vacancy rates and store closures including anchor and smaller tenants and a 20 percent drop in visitors over the past five years, officials said.

If approved?

Once final approvals are granted, mall officials estimate that construction will take approximately two years. During construction, RCP will be a significant job creator, generating and sustaining an estimated 372 new jobs and $34.8 million in wages in the first year, officials said. Starting in the second year, they estimate the residential community will create and/or sustain 117 jobs, Meshel said.

Increasing consumer spending

The 300 households in the residential community at Connecticut Post Mall will generate an estimated $4.95 million in total discretionary spending, officials said.

"We conservatively estimate that 25% of household discretionary spending takes place in the local community, resulting in $1,237,500 in consumer spending at local Milford businesses," officials said.

Why not something different?

Meshel said officials considered a number of other options include general office, hotel, commercial and industrial uses but a mixed-use development makes the most sense for economic viability.

He said if they don't do anything then the asset will continue to erode.

What is the second phase of redevelopment at the mall?

If the residential project is approved, the next phase would focus on the former Sears building and it's still under consideration concerning what would be the best use.

"It won't be a traditional box retailer, not a Boscov's," Meshel said. "....It will be something different than what is there today."

More residential uses at the mall?

Meshel said mall officials are only seeking to construct residential on an 8-acre parcel at the former Sears Auto Body Center site and don't have plans for more residential uses on the remaining site.