State Funding for Shelton Housing Development Allows Region to ‘Reclaim Its Heritage’

SHELTON, CT — The addition of housing in downtown Shelton is more than just transit-oriented development, according to Naugatuck Valley Council of Governments Executive Director Rick Dunne. It’s a region reclaiming its heritage.

“Thirty years ago, we didn’t think we could ever build housing on a site like this,” Dunne said standing near a former industrial site that is planned for 120 units of housing. “This is incredible. Twenty years ago I don’t think we had 100 units (downtown). Now we have almost 1,000 and more on the way.”

Dunne, Gov. Ned Lamont, Shelton Mayor Mark Lauretti and state Department of Economic and Community Development Deputy Commissioner Matt Pugliese were in Shelton Monday morning to announce a $2.97 million grant for the remediation of 113 and 125 Canal St. The two sites had formerly been home to electroplating and other industrial uses along the Housatonic River.

Lauretti praised the grant as part of a “wonderful era” of government partnership with private business. He said the effort would pay big dividends in terms of increased housing and a vibrant downtown neighborhood.

“As we benefit, the state benefits,” he said.

Lauretti also praised developer John Guedes, whose Primrose Companies Inc. has developed numerous downtown lots.

“They invested in a place where no one wanted to invest,” Lauretti said.

Pugliese said the grant funding would allow construction of two mixed-use complexes with a total of 120 housing units. He said 10% of the units would be classified as affordable at 50% of the area median income, currently calculated at $110,000 by the Federal National Mortgage Association (Fannie Mae).

In addition to the housing, there is a mix of retail and restaurants planned for the developments, plus a parking garage and pedestrian access to the downtown Riverwalk, Pugliese said.

“We’re putting polluted, blighted properties back into productive use,” he said.

Lamont said the Shelton development would lead to regional growth. The apartments in downtown Shelton, combined with the improvements to the Derby-Shelton bridge and the apartments opening just across the river in downtown Derby, would lead to increased demand for rail service on the Waterbury Line and a domino effect of local and regional development.

“What we’re trying to do is just speed things up,” he said.According to Sheila O’Malley, president of the Shelton Economic Development Corp., the project has an aggressive timeline. Pointing to work already underway in the area, O’Malley said the plan is for remediation work to be complete by the end of the summer, with construction to begin immediately after that and take about six months.