Hartford Business Journal

cant," Cherolis said. "I think there's definitely an awareness that those surface lots especially are not pay- ing into the grand list to the level they should." Hartford has faced significant challenges growing its grand list over the last few decades, which has contributed to its budget struggles. Hartford's $4.1 billion grand list is valued nearly 30% below what it was near the turn of the 21st century, and 37% below its 1990 peak of $6.5 billion. By comparison, neighboring West Hartford — one of the region's wealthier communities with half the population of Hartford — has a $6.4 billion grand list. No panacea However, even if the ordinance change has the intended effect of freeing up space downtown, there's no guarantee developers will come calling, said Michael Freimuth, executive director of the Capital Re- gion Development Authority (CRDA), a quasi-public development agency. Hartford's high property tax rate — 74.29 mills, by far the highest in the state, and among one of the highest in the nation — is a major impediment to ground-up develop- ment, and most newly built projects in the city require public subsidies and/or tax breaks, in addition to oth- er funding sources like tax credits. Some realty experts have argued efforts to force development — like taxing parking lots at a higher rate to make it less appealing to sit on vacant properties — could backfire on the city, leading developers to simply avoid Hartford. The largest ongoing construction project in Hartford — the Down- town North mixed-use develop- ment — wouldn't be possible with- out funding from CRDA, which has invested more than $100 million of bonded state taxpayer money in recent years to help finance con- struction of nearly 2,000 apartment units downtown. "I think, at best, this would have a marginal, if any real impact on the decision to move forward with 'vertical' development by prop- erty owners," Freimuth said of the permit fee hikes. "Market demand will drive the decision more than an increased cost." Hartford city councilor Josh Mich- tom said the higher fees wouldn't be a panacea to reducing Hartford's glut of downtown parking lots, but it's a step in the right direction. "I think this is a piece of that puz- zle," Michtom said. "I hope that it's part of a larger project that reorients us toward more walkable, denser Hartford." Your causes. Our expertise. A greater impact. Amplify your giving. Start a fund today: hfpg.org/yourfund www.HartfordBusiness.com • December 14, 2020 • Hartford Business Journal 23 Michael Freimuth Parking? Lots! This chart shows how similarly sized cities changed parking distribution over a half-century. Attribute Arlington Berkeley Cambridge Hartford Lowell New Haven 1950s parking land (ft 2 per acre) 2,255 2,589 960 2,857 3,884 1,871 2000s parking land (ft 2 per acre) 2,901 2,437 1,334 7,373 7,312 6,590 Percentage change +29 -6 +39 +158 +88 +252 1950s surface parking as percentage of downtown 5.2 5.8 2.2 6.4 8.9 4.3 2000s surface parking as percentage of downtown 6.5 5.2 2.8 14.8 15.4 12.7 1950s structured parking as percentage of downtown 0 0.2 0 0.1 0 0 2000s structured parking as percentage of CBD 0.2 0.4 0.3 2.2 1.4 2.5 Source: UConn study "Effects of Urban Fabric Changes on Real Estate Property Tax Revenue."

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