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Bond Commission Backs Financing For State Office Building Purchases

by KENNETH R. GOSSELIN

March 13, 2013

The State Bond Commission approved nearly $90 million today for financing the state’s purchase and renovation of two Hartford office buildings targeted for consolidating thousands of the state employees in the next few years.

The commission also backed borrowing $21.6 million to finance the conversion of the former Bank of America tower in downtown Hartford into 286 apartments.

In voting today, the commission approved borrowing $34.5 million for the purchase of twin-towered Connecticut River Plaza on Columbus Boulevard, just east of Constitution Plaza. In addition, $15 million for renovations and $995,000 for closing costs was also approved, bringing the total to $50.5 million.

Another $18 million was backed for the purchase of 55 Farmington Ave., a 12-story tower at the corner of Farmington Ave. and Flower Street. In addition, $19.5 million was approved for renovations, bringing the total to $38.1 million.

Last week, Gov. Dannel P. Malloy announced the purchases that will allow the state to consolidate 3,300 workers in nearly 20 locations, the majority of them leased in and around Hartford. The state expects to save $100 million over 20 years by making the consolidation.

The funds approved today for Connecticut River Plaza will only partially pay for renovations. Another $33 million will be needed in the future.

The state expects to move into 55 Farmington Ave., now owned by The Hartford Financial Services Group, first, beginning next year.

The funds approved for the Bank of America tower project, expected to get underway this summer, includes $7.5 million in equity and second mortgage or $10.2 million from the Capital Region Development Authority. In addition, another $3.9 million loan is coming from the state Department of Economic and Community Development.