Image courtesy of Spinnaker Real Estate Partners

A Spinnaker Real Estate Partners proposal for waterfront apartments in New London faces over $14 million in “extraordinary costs.” Luckily for the developer, city leaders are sympathetic.

The New London City Council approved a 20-year tax assessment schedule for the company’s 150-162 Howard St. project earlier this week.

The mixed-use, three-building development is planned for a blighted, former industrial site on the side of Shaw Cove, a sheltered marina next to the city’s Fort Trumbull development area. That site’s projected demolition, environmental remediation and site prep needs total $8.88 million, a letter from Spinnaker to the City Council states. Building a public boardwalk and including 23 additional workforce housing units on top of the 24 being funded with help from the Connecticut Housing Finance Agency would add another $5.8 million to what the letter termed “extraordinary costs.”

Even with what amounts to a $6.1 million tax abatement over 20 years, the project is expected to add $37 million to the city’s Grand List, plus $70,000 to $100,000 a year in motor vehicle taxes from residents’ cars, and between $2 million and $3 million a year in resident spending at New London restaurants, shops, and services.

The 235-unit development will include 14,810 square feet of amenity space, including a pool, filings show.