East Hartford Withdraws Tax Incentive for Apartment Project
The cancellation of tax breaks for the Concourse Park project halts plans for 402 new units in the city.
Updated on Oct. 15, 2026 in Commercial
Live Poll
Should your local government offer tax incentives to private developers to encourage building new housing?
East Hartford has officially withdrawn a 27-year tax incentive for the proposed Concourse Park apartment complex, signaling the end of negotiations for the site. The development, which aimed to add 402 apartments, has stalled due to a dispute over rising construction costs.
Why it matters
This breakdown of the development agreement highlights how rising interest rates and construction inflation are impacting large-scale local housing projects. For the town, the decision shifts the status of the former Showcase Cinema site back to its current tax-generating state.
The town currently collects $128,000 in annual property taxes on the former Showcase Cinema site. The failed Concourse Park project was estimated to cost $120 million to build.
The players
Jasko Zelman 2
The private development firm that proposed the Concourse Park apartment complex.
Capital Region Development Authority
A state-linked agency that provides financial aid for regional development projects.
East Hartford Town Council
The local governing body responsible for setting tax policy and managing development agreements.
The details
The project reached an impasse after the developer and the town could not agree on who should bear the burden of several million dollars in unexpected expenses. Increased interest rates and construction inflation made the original financial plan untenable, leading the council to rescind the long-term tax break after granting prior construction deadline extensions. The developer, Jasko Zelman 2, had purchased the land for $1 and received $10 million in aid from the Capital Region Development Authority.
Timeline
June 2022: The development partnership first proposed the Concourse Park project.
2025: Jasko Zelman 2 purchased the former multiplex site from the town.
June 2026: The original deadline for the developer to begin construction on the site.
October 9, 2026: The mayor officially withdrew the tax incentive for the project.
Money Landscape
This project collapse follows a pattern where inflationary pressures challenge development viability even with state-backed financial aid. It marks a significant departure from the typical success of projects supported by the Capital Region Development Authority.
For residents watching local home inventory, this news suggests that new rental stock projected at $2,000 to $3,500 monthly is unlikely to arrive on this timeline. Future development or redevelopment of the Showcase Cinema site remains an open question for the local property tax base.
The takeaway
Large-scale commercial developments are highly sensitive to fluctuating interest rates and construction costs that can unravel years of planning. Readers should monitor future East Hartford town council agendas for official updates on the status and potential sale of the vacant land.
Further reading
Learn more about local business and development trends at Commercial.
Source note: This article includes information reported by Hartfort Courant.
Live Poll
Should your local government offer tax incentives to private developers to encourage building new housing?
