Norwich Community Development Corporation has been tasked by the Norwich City Council to develop a municipal development plan for the partially-completed hotel at 152 Salem Turnpike at the Interstate 395 interchange. The Hampton Project Municipal Development Plan has been drafted to satisfy this request and will be subject to public comment at a hearing scheduled for March 26, 2014. The hearing will be held in Council Chambers in City Hall, and will begin at 6:30 pm.


• Blight elimination / economic reuse opportunity
• Located along Interstate 395 and Connecticut Route 82 – a high traffic / high visibility area in the city
• Public Hearing scheduled for March 26, 2014 6:30 pm, Norwich City Hall Council Chambers, 100 Broadway, Norwich, Connecticut
• Project website: askncdc.com/programs-incentives/hampton

About the Hampton Project
In September 2006 PRA Norwich received approval from the City of Norwich Commission on the City Plan to construct a 74,000 square foot 113-room Hampton Inn (Hilton Hotel brand). Construction began in 2007 and ceased in 2009. The property was abandoned in 2010, and foreclosure process commenced.

CT Norwich, LLC (“CTN”), an affiliate of Winston Hospitality, Inc., owns the property located at 154 Salem Turnpike (Connecticut Route 82) in Norwich. They acquired the property in May 2013, when they secured a Certificate of Foreclosure. It is estimated that about $350,000 worth of vandalism has occurred on the property including theft of copper pipes, wire, transformers and other materials.

CTN has invested over $3 million, including $2,750,000 in property acquisition. They plan to invest another $10.146 million in the property to complete the project. Since the time of acquisition, market conditions have eroded:
• lower room rental rates + higher regional vacancy = lower hotel income; plus
• higher development cost = unreasonable low return for developers; results in
• lack of willinessness for financiers due to additional risk and exposure.
CTN is seeking a Tax Increment Financing (TIF) agreement from the City of Norwich in the amount of $2.8 million ($140,000 per year for 20 years), which would provide an estimated $1.3 million in upfront capital for their project (representing 9 percent of the total investment).
Tax Increment Financing is permitted in Connecticut and the tool is only authorized after a Municipal Development Plan process has been completed. The TIF process is described in the Tax Incremental Financing Analysis report prepared by Josh Pothier, City Comptroller, and issued December 17, 2013.

The TIF will not be authorized until the MDP process has been completed, and the completion of the MDP process requires City Council approval. Authorization to begin the MDP process does not bind the City Council to approve the TIF.
Information about the Hampton Project MDP, or the Tax Incremental Financing Analysis report can be found at the NCDC website:
The Site

Aerial view of the unfinished hotel site; Image source: bing.com

For more information, please contact:
Robert Mills – President
Norwich Community Development Corporation
77 Main Street
Norwich, Connecticut 06360
rmills@askncdc.com Jay Davies – Project Manager

Winston Hospitality, Inc.
3701 National Drive Suite – 120
Raleigh, North Carolina 27612