New London ― A gathering at the construction site of new modular apartments at 174 Bank St. Friday was not the usual groundbreaking or ribbon-cutting ceremony.

Construction has started but is not finished. Three stories of elevated steel and dark gray metal walls at the site still appeared bare and hollow.

Mayor Michael Passero said it was a celebration of the construction’s halfway point. He said the developers, New-York based Vessel Technologies, started putting together what is to be a five-story modern apartment building four weeks ago.

As opposed to conventional construction, the energy-efficient development will be made of partially pre-fabricated materials allowing it to be built quicker. This is Vessel’s first residential building in Connecticut.

Neil Rubler, founder and CEO of Vessel Technologies, said he was honored to stand at the site Friday looking out at incredible views of the Thames River, surrounded by so much history. He said the development under construction will house the next generation of residents building ships and contributing to the higher education institutions in the area.

Rubler said the material for the building was pre-fabricated at a facility in York, Pa., and made in a way that makes the completed building and its construction more efficient. He said this method does not make it any less safer than other buildings and the material used, such as steel, is non-combustible and able to withstand major storms.

The building as of now will have up to 30 one-bedroom apartments although Rubler said the structural components of the building can be changed to create two-bedrooms if needed.

Passero said the “cutting edge” development is significant as the site has been vacant for nearly 30 years since the colonial-era building there burned to the ground.

The cost to develop the site, because of its small size and location in a flood plain, led to little interest from developers.

Vessel purchased the site for $225,000 in February 2022. The City Council in August approved a payment in lieu of taxes agreement with Vessel, providing the company an estimated 25.1% discount in tax payments to the city over 20 years.

Felix Reyes, director of the city’s office of development and planning, said the site has been the “missing tooth” of Bank Street and it is finally getting a crown -- quality new housing that’s affordable.

Rubler said the apartments would be affordable to those earning 80% of the area median income and likely priced between $1,600 to $1,700 for a one-bedroom apartment. He said the apartments would be for those earning $60,000 to $70,000 a year and who are being priced out of local quality housing.

In the Norwich-New London area, one person who earns 80% AMI is making $57,512 based on 2022 HUD Median Incomes.

Vessel’s rental prices align closely to The Docks apartments just down the street where a one-bedroom unit rents for between $1,600-$2,000. Rubler said competitive prices often do not include amenities or utilities costs and Vessel’s apartments would. He said this is made easier with electricity coming from a solar array on the roof.

Rubler said advertising for the units began two weeks ago and Vessel has already had 80 to 90 applicants. He said Vessel aims to complete the building by Labor Day.

The modern look of the building has been the subject of debate, with mixed reactions from the Historic District Commission and some members of the public.

“I don’t think it’ll be out of place,” Passero said. “New London has eclectic buildings appropriate to the age they were built ... this is a 21st century building so it’s appropriate.”

He said the building is better than having a blighted lot that was undeveloped for 30 years and was detrimental to the downtown.

j.vazquez@theday.com