Bijou Square at crossroads

By BILL CUMMINGS

10/31/2008

BRIDGEPORT ­-- A crisp autumn wind swirls through the windowless windows and open doorways of the city's first all-new downtown construction in decades.

The small army of workers who earlier this year were busy erecting the 84-unit condominium complex with ground-floor retail shops at the corner of Lafayette Boulevard and Fairfield Avenue disappeared months ago, leaving behind the shell of an $18 million, five-story building.

The "Shops and Residences at Bijou Square" is again beset by financial trouble.

Construction had stopped about 10 months ago after Citibank pulled its financing in one of the first signs of the subprime mortgage crisis that has since mushroomed into a national financial disaster. The City Council then approved a lucrative tax break for the project and the construction crews returned. But by summer, the money had apparently run out and work again stopped.

A solution, however, appears to be on the horizon -- perhaps just in time to save the city from the indignity of having a large, unfinished structure in the middle of its struggling downtown.

Developer Phil Kuchma, who is also rebuilding the block around the condo complex, says the Connecticut Housing Finance Authority is expected to provide most of the $15 million needed to complete the condos.

The CHFA package relies on $10 million from a $25 million revolving loan fund established by General Electric Co. to help fuel a downtown resurgence. CHFA has

approved the loan and officials say the money will be available within the next few months.

Kuchma's main lender, the Community Preservation and Development Corp., will provide the remaining financing of about $5 million.

"We have received board approval and we are now putting together the details," said Tom Coppage, CHFA's vice president for housing development.

"We look at this way. This guy [Kuchma] put a lot of his own money into this thing. This is an opportunity to participate and make sure this important project gets done. It's way too important for the city. You don't want a half-built building," Coppage said.

Kuchma said he's confident the financing will come through.

"I'm thrilled things are going as well as they are. We set a high goal of what we wanted to bring downtown and I think we have achieved that goal. People will come here if you provide the types of things they want," he said.

The developer, however, is enjoying success with other portions of his Bijou Square project, named for an old theater on Fairfield Avenue that's being renovated. The project encompasses the block between Lafayette Boulevard and Broad Street.

Two restaurants -- Two Boots and Cafe Roma -- are doing well in two Kuchma storefronts, and another restaurant, Epernay, a French bistro, has just opened.

Las Vetas, a coffeehouse planned next to Epernay, is tentatively scheduled to open around the first of the year.

Kuchma said the Clearlight Group, a firm that makes films, music videos, video games, commercials and live TV, is set to occupy upper floors of the old theater building. Clearlight also is building a studio production facility off Seaview Avenue.

Clearlight recently agreed to lease 2,000 square feet for offices in the Fairfield Avenue building that once housed the theater, joining Antinozzi Associates, an architectural firm leasing nearly 22,000 square feet there.

Although the original plan for the building called for three movie screens, Kuchma said his partner, Phil Hartman, a New York City entrepreneur, has now scaled back to plans for a single, ground-floor screen in the structure.

"All of the businesses are doing well," Kuchma said of his tenants. "The four apartments we created across the street [from the ex-theater] are rented. Two Boots and (Cafe) Roma are doing well."

Under the tax break approved earlier this year by the city, the assessed value of the condo units will be calculated on the basis of $50 per square foot of space. That means an 850-square-foot condo selling for $250,000 would carry an assessed value of $42,500 for the first seven years, far less than if there were no tax break.

The City Council also required that nine of the 84 units be sold in conformance with the state's "affordable" criteria. The developer envisions market rate units selling for around $250,000, with space on the upper floors drawing higher prices.

Over the last year or so, there has been a mini-boom of new downtown restaurants. Joining the Fairfield Avenue grouping of Two Boots, Cafe Roma and Murphy's Law, are the Metric Bar and Grill near the Bridgeport Superior Court complex, the State Street Bistro next to the Playhouse on the Green and Krazy Joe's, a Fairfield Avenue deli across the street from Kuchma's condo building.

Peter Wroe, owner of the new Epernay Bistro, said he's optimistic about downtown, but said more residential development is crucial to long-term success.

"It's turning into a nice little block. But business has to be supported by housing. We hope that takes place soon, especially the one down the street," Wroe said, referring to Kuchma's mixed-use condo project.

New apartments are being rented in the old Citytrust bank building on Main Street, and other units are nearly ready at the former Arcade Mall on Main Street and a building at the corner of Main and Golden Hill streets.

Long-range plans call for hundreds of additional apartments in old buildings along Main Street.

Andrew Servetas, owner of the Las Vetas Lounge in downtown Fairfield, said he plans to open a similar coffeehouse in a Kuchma storefront next to Epernay.

"We have been renovating the space and it's pretty close to being done," said Servetas, who also said he hopes to open after the first of the new year.

Las Vetas would offer speciality coffees and food, but not alcoholic drinks. The owner envisions a place where people can gather, drink coffee, milk shakes and smoothies and have a bite to eat. There also would likely be entertainment at night.

"We will do it whether the housing happens or not," Servetas said.

"People are already there, those that park in the garage [off Fairfield Avenue] and work at the court house. There is an architectural firm. I think it will be great," he said