Hartford-based Crosskey Architects is drawing up plans for an apartment complex development as part of the Bushnell South district near the Bushnell performing arts center. Image courtesy of Spinnaker Real Estate Partners

Ambitious plans to revitalize blocks next to Hartford’s Bushnell Performing Arts Center took a promising step forward this week when city leaders OK’d a key tax break necessary to the project’s financing.

Norwalk-based Spinnaker Real Estate Partners plans a $63 million conversion of two former state office buildings into apartments and the potential construction of more multifamily housing on adjacent parking lots on the 4.5-acre site

A master plan by Norwalk-based Beinfeld Architecture includes 164 apartments in the existing buildings and another 150 to 200 units of new construction.

The Hartford City Council approved a tax abatement deal that holds the property’s taxes steady at a fixed percentage of gross revenues which rises as over the life of the deal, the Hartford Courant reports.

The CRDA earlier approved a financing agreement that will provide Spinnaker with $13.5 million toward the $63.3 million project. CRDA funding would include a $7 million permanent construction loan and a $6.5 million historic bridge loan. Historic tax credits would contribute another $16.5 million, while the remainder would be provided by $7.3 million in Spinnaker equity and a $32.5 million conventional mortgage.

Material from a previous Commercial Record story was included in this report.