Hartford Business Journal

www.HartfordBusiness.com • October 8, 2018 • Hartford Business Journal 15 MAHONEYSABOL.COM TAX | ASSURANCE | BUSINESS ADVISING ACCELERATE YOUR PERFORMANCE ACCELERATE YOUR ACCELERATE YOUR PERFORMANCE ACCELERATE YOUR Behind every successful business is a partner propelling you forward. MahoneySabol combines the responsiveness of a local firm with the resources of a global one. So in a fast-paced world, you get the smart and timely insights you need to stay out ahead. region on steroids,'' Leclerc said, "and everyone should be watching and eager to see what is next." CRDA is the successor to another development agency, CCEDA, spawned under former Gov. John Rowland to develop Hartford's Adriaen's Landing and Front Street mixed-use projects. With the final stage of Front Street, construction of new apartments along Arch Street, nearing completion, Freimuth said CRDA is finally close to "stitching together'' downtown back to the riverfront. CRDA also is in talks with representa- tives of landlord Larry Gottesdiener and his Northland Investment Corp. about tying in his Hartford 21 atrium to the XL Center, to improve visitors' access and experiences there. An eminent domain seizure of Northland's atrium space, too, remains on the table, Freimuth said. Gottesdiener confirmed talks with CRDA about a potential sale of the Hartford 21 atrium to the agency. "As a long-term, committed Hartford investor and developer," Gottesdiener said via email, "we are seeking an amica- ble resolution that is in the best interests of Hartford and the Capital Region." Indeed, Freimuth says most of CRDA's time and energy are centered around ongoing electrical, mechanical and other problems with the aging building's in- frastructure. He said CRDA considered relocating XL Center elsewhere down- town, but the time and cost to assemble buildable parcels was problematic. One alternative under review would scrap plans for a massive $250 million XL Center rebuild, to one in which the upper and lower seating "bowls'' are reconfigured to modern standards, a move Freimuth says could cut the price tag in half, to $125 million. Funding the project will likely be the decision of the next governor. Looking to create a custom publication? Let us take care of it for you. ADVERTISING@ HARTFORDBUSINESS.COM WWW.HARTFORDBUSINESS.COM/ CUSTOMPUBLISHING 860.236.9998 Whether it's the celebration of a major anniversary or the opening of a new headquarters, Hartford Business Journal's Custom Publishing Division can help you create a custom magazine for your business. Our division's top fl ight team of writers and designers can help you tell your story – and make your business look great! Based on our unique publishing model, it's surprisingly affordable. CALL TODAY! Where gubernatorial candidates stand on CRDA By Greg Bordonaro gbordonaro@hartfordbusiness.com Hartford Business Journal asked the three major gubernatorial candidates about their views of the Capital Region Development Authority and some of the key assets it oversees, including the XL Center. Democratic candidate Ned Lamont said CRDA is an important entity and he favors its public-private approach to Hartford development. "We've got to keep investing in the city," he said, while also acknowl- edging that funding will be tight. "I mean, this city is really on the cusp of something important and I've got to make sure you have housing here, that you have quality schools here." In terms of the XL Center, Lamont said the aging Hartford arena should be overhauled by private investors, with state oversight, rather than investing hundreds of millions of taxpayer dollars in the venue. GOP gubernatorial candidate Bob Stefanoskwi agreed that the state needs to look at private-sector op- tions for refurbishing XL Center. He also acknowledged CRDA's role in revitalizing the city. "The CRDA has a vital role to play to ensure it attracts private investment into Hartford and they have had some success in doing that," he said. "However, any time tax- payer dollars are used, we must ensure that they are fully ac- counted for and spent wisely." Unaffiliated candidate Oz Griebel is most familiar with CRDA having been the former head of the MetroHartford Alliance. He said he's a big fan of the agency and the work it's done in the city, but is uncertain how much state money should go into XL Center. He said he'd bring together major employers in the Hartford region and ask how important the facility is to them and their workforce. "If it's impor- tant to talent retention we should get em- ployers to invest in it," said Griebel, who added he'd like to see more private-sector investment in CRDA deals. Before the state puts more money into entertainment facilities, there needs to be a strategy to increase attendance at them, he said, including long-term commitments for more UConn games at XL Center. "I'm a fan of CRDA," Griebel said. "It's not the structure of the agency that is the issue, it's the assets they manage." Financial woes In fiscal 2018, the XL Center had an operat- ing loss of $2.9 million, attributed to seven cancelled/unsuccessful events and the addition of a state event admissions tax halfway through the fiscal year, according to CRDA. During the 2017-18 year, the building required a $600,000 operating subsidy from the state. Connecticut Convention Center's attendance (363,279) and operating revenues ($3.7 million) both fell in fiscal 2018 by 1.2 percent and 13.1 percent, respectively, CRDA's latest annual report shows.

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