NEW HAVEN — City officials say Connecticut experience and secure finances led them to choose Northland Investment Corp. to develop the former Veterans Memorial Coliseum site over finalist Archstone, partially owned by troubled investment bank Lehman Brothers.

"Both had really quality projects," said Economic Development Administrator Kelly Murphy. "Financial stability is very important, also experience in an urban environment," she said.

While both firms had presented conceptual plans, Northland was selected based on qualifications, not its proposal.

Northland board chairman Lawrence Gottesdiener said his firm will open permanent offices in New Haven with an eye towards a 20-year investment in the city. "When we come into a community we generally are looking at a series of initiatives, not just one. We look at a community holistically," Gottesdiener said.

Northland recently acquired the Church Street South housing development across the street from Union Station. While the firm has no current plans beyond upgrades there, Gottesdiener said "in the long run it may make an exciting redevelopment opportunity."

The Massachusetts-based developer has led many of Hartford’s prominent projects, including the mixed-use Hartford 21, which houses the XL center. Northland will partner with Yale School of Architecture Dean Robert A.M. Stern for the Coliseum project.

"We had such a difficult decision because both groups were so fantastic, they were very equal," said review committee member Alderwoman Frances "Bitsie" Clark, D-7. "One of the major things that was important with Northland was the fact they worked closely with the state," she said.

"Whenever you are involved in something this big, you don’t have any idea where at some point you might be wanting certain permits, changes in laws," she said. The city hopes to revive the former coliseum site bounded by South Orange Street, North Frontage Road, State Street and George Street through new housing, commercial and retail development. Long Wharf Theatre will be relocated from the Sargent Drive food terminal to the site.

Northland’s preliminary proposal calls for pedestrian access through the site to the train station, with 9-story apartment buildings on three sides, a 9-story elliptical residential tower and an 8-story office building.

Those plans are expected to change significantly and there will be opportunities for public input. While the site has yet to be designed, Gottesdiener said his firm intends to create a "neighborhood of offices, retail and art with residences, knit downtown back to Union Station."

"We’re going back to a more pedestrian-style experience, pedestrian and bikes," he said. "Everything we’re doing we have been targeting urban, mixed-use development," he said.

Streetscapes and lighting will be coordinated with nearby development on the former Macy’s and Malley’s site. Construction is expected to begin there in early spring for the new Gateway Community College, according to Deputy Director of Economic Development Tony Bialecki.

It will likely be late 2009-2010 before construction begins on the Coliseum site, Bialecki said. Long Wharf expects to open at its new downtown location in 2012.

"I expected several months of intense analysis and negotiation now that we know who is who," said Joan Channick, managing director of Long Wharf Theatre.

The theater has already begun fundraising for the $65 million project, which will be partially state funded.

"The fact (Northland’s) ideas include office and residential space, retail, store and restaurants, that’s exactly the kind of activity we want to have around the theater," Channick said.

Northland’s selection appeared to appease a New York City union who had lobbied against selection of Archstone, claiming the developer had undercut wage standards on jobs.

"We commend the city’s decision to prevent Archstone, a developer known to undercut workers’ wages and benefits, from coming into New Haven. In order for the redevelopment of the Coliseum site to be a true success for the community, Northland and the city must make commitments to creating new permanent jobs that provide the wages and benefits workers need to support their families," SEIU Local 32BJ spokesman Matt Nerzig said in a statement.