The mile-long stretch of commercial real estate along Route 1 East in Old Saybrook has seen better days, but studies have highlighted the potential for multifamily and mixed-use development that could bolster economic development in this coastal town of 10,000.

First Selectman Carl Fortuna Jr. made a priority of revitalizing the Route 1 East corridor shortly after his election in 2011. Dubbed “Mariner’s Way” in a pair of land-use studies, it stretches from the Saybrook Junction town center to the marina district on the Connecticut River.

Near the heart of the corridor sits the nearly 20-acre former Custom Marine Inc. property that’s sat vacant for over two decades but is considered the prime development site.

“It’s a mish-mash of businesses and residences and empty buildings,” Fortuna said. “It’s eclectic and it’s underutilized, to say the least.”

Rezoning Wait Put Off Developers

The town has adopted a mechanism to offer property tax breaks to developers. But it’s held off on rezoning the entire area, pending more specific expressions of interest from developers.

A local real estate broker said the hesitation has scared off potential buyers, particularly for retail development.

“I’ve got four developers interested in Mariner’s Way, but the problem has been the zoning,” said Penny Parker, a broker with Westbrook-based Lyman Real Estate Brokerage & Development. “The current zoning prohibits any retail, and retail is what I had interest in doing there.”

The zoning commission rejected a set of proposed bylaw changes two years ago, Fortuna said.

“The commission was receptive but said it was premature. They said, ‘Why don’t you wait until a developer comes along and find out what they want to do?’” he said.

The initial study completed in 2014 recommended a mix of uses including marine-based businesses, water recreation, retail and multifamily housing. Market analysis ruled out other uses, such as hotels, Fortuna said.

“A lot of people said it would be nice to have a Courtyard by Marriott, but they said the market doesn’t support it,” he noted.

Focus on Boston Post Road

Attempts to remake the section of Route 1, known locally as Boston Post Road, took shape in 2012 as the town formed a committee to study its potential to attract new development and reduce the residential property tax burden.

Prospects for large-scale commercial development are limited by the lack of town sewers, Fortuna said, although multifamily projects as big as 187 units have been built with private treatment systems.

The town adopted a framework called the Mariner’s Way Plan in 2014. Addressing the “disconnected and depressed” section of Route 1, it recommended better wayfinding, public art and a “signature event” to draw new visitors to the area. Using part of a $200,000 state brownfields area grant, Old Saybrook hired consultants Civic Moxie of Brookline, Massachusetts to put together an action plan.

The 2017 final report recommended a high-density, mixed-use district closest to the town center with up to 200 multifamily units and ground-floor dining and retail space. In the central district, the consultants suggested a Connecticut-themed food and wine center showcasing the products from local farms and breweries. In the eastern end, they saw potential for retirement housing.

Price, the broker for Lymon, said the plan is unrealistic given the nature of the existing uses and property owners. Equipment vendors and warehouses surrounded by large parking lots make up the bulk of the existing businesses.

“[Civic Moxie] were looking at Boston and transplanting ideas that would work in the Boston area to Route 1 in Old Saybrook, a town of 10,000 people,” she said. “That whole road is nothing but mom-and-pop businesses that are not going to leave. That’s their livelihood.”

Marketing Campaign Underway

In the meantime, the town is using approximately $15,000 in surplus money from the brownfields grant for a marketing campaign, including a billboard and advertisements in real estate publications.

Working with the Connecticut Main Street Center, a Hartford-based nonprofit that assists member communities with downtown revitalization efforts, Old Saybrook drew up a tax increment financing zone that offers developers up to 50 percent property tax abatements.

Agreements are negotiated separately for individual properties, and the town has not yet received any applications since adopting the TIF mechanism in January, Fortuna said.

“I said in 2012 it’s going to take us a decade to really lift this off the ground, and we’re seven or eight years into it,” Fortuna said. “We’ve made a lot of progress and we’re waiting for a shoe to drop.”