Construction of 180 apartments and a new $33 million train station on the Metro-North’s Danbury line are starting a long-envisioned transformation of Naugatuck’s downtown. Image courtesy of WRT
Naugatuck’s industrial past is reflected in street names such as Rubber Avenue that evoke its heyday as a manufacturing hub.
On vacant land formerly home to Uniroyal’s footwear division – once the manufacturer of Keds sneakers – a housing developer, state and borough officials are looking forward with a new vision for the downtown and long-derelict real estate.
Philadelphia-based Pennrose broke ground this month on the first phase of a 180-unit rental housing project. The three-building complex is located steps from a new passenger rail station under construction on the Metro-North railroad’s Danbury line and is scheduled to open in mid-2027. Another vacant property on the edge of downtown is being built out as a new industrial park, following upgrades to infrastructure.
A Pennrose executive said the company immediately recognized an opportunity when Naugatuck officials sought proposals to develop a 7-acre parcel on Firehouse Avenue in 2022.
“Consistently, the state’s priority for creating and supporting mixed-income projects like this has been near train stations,” Pennrose Regional Vice President Karmen Cheung said. “Anything that’s transit-oriented development is a focus for us, and we’ve seen that model work very well.”
Pennrose has a track record building mixed-income multifamily housing near new train stations in Connecticut, including its $50 million Meriden Commons project completed in 2019.
For Pennrose’s $25 million Naugatuck project, state officials chipped in with a wide range of subsidies that are typically needed to help mixed-income developments complete their financing packages: low-income tax credits, gap funding from the state Department of Housing, and financing from Connecticut Housing Finance Agency Opportunity Funds.
Naugatuck and state officials have been partnering in recent years on infrastructure and environmental remediation projects to prepare the site for developers, Naugatuck Mayor Pete Hess said. Approximately $3 million was spent on preparing “Parcel B” on Old Firehouse Road, which was awarded to Pennrose following a request for proposals.
“With this site being in the downtown next to a train station and the plans for upgrading the water and sewer and sidewalks, all of those improvements signaled to us this was a site that we wanted to be a part of,” Pennrose’s Cheung said.
Completion of a new Metro-North passenger rail station in downtown Naugatuck is scheduled for mid-2027. Image courtesy of Connecticut Department of Transportation
New Industrial Park Planned at Former Factory
Naugatuck’s industrial heyday began in the mid-19th century. Local entrepreneur Charles Goodyear patented the vulcanization process that stabilized rubber in 1844, and founded the Naugatuck India-Rubber Co. Other manufacturers of gloves, firefighter gear and sneakers clustered in Naugatuck and consolidated in the early 20th century, but manufacturing declined after World War II. Stride Rite acquired Keds in 1979 and the Uniroyal plant closed shortly thereafter, bringing an end to major manufacturing.
Naugatuck’s current economic development strategy includes a new industrial park on 86 acres formerly occupied by Uniroyal on Elm Street, also owned by the borough.
The borough installed new water, sewer, stormwater, electric and natural gas lines, Hess said, and subdivided the property into 13 development parcels. A Connecticut Community Investment Fund awarded a grant in 2024 for road construction.
The property sits within a new Tax Increment Financing district that could provide tax breaks for developers. Hess said the borough will negotiate with developers on a parcel-by-parcel basis. One parcel has been sold to International Lumber Supply, which opened a retail store last month.
“Every project is different. Some could get no benefits, some could get tax incentives, or it could be reduced prices for the land,” Hess said. “The secret to success in my opinion for a municipality is to control your destiny, which means owning the land and having the financial ability to qualify for grants. We have a pretty established record of getting things approved and built.”
The vision is to revitalize the town center by preparing sites for multifamily and commercial development near the relocated train station, Hess said.
“The state is all-in on transit-oriented development,” he said. “Without question, we are the best site in Connecticut and getting complete support from the governor and state agencies.
