Horizon Group Properties, Inc. announced on Monday that it is canceling the development of The Outlet Shoppes at Rentschler Field. They cited a tough retail environment and dramatic declines in valuations of retail-REIT stock.
The developer has already informed state and city officials, as well as retailers who had committed to the project, that they will not be moving forward.
Gary J. Skoien, chief executive officer of Horizon Group Properties, released the following statement:
This was an extremely difficult decision for us, because we believe that the project would be a success, but unfortunately circumstances beyond our control affected our ability to move forward. When the project was delayed last November, we needed all the retailers to re-commit to the project with no changes in the economic terms of their leases, and that didn’t happen. We are also aware that some local contractors took advantage of the situation, and while this alone didn’t cause us to stop the project, it added to the high construction costs that exist in Connecticut. This is sad news, not only for us, but for United Technologies, the residents of East Hartford and the state of Connecticut.”