Hartford Business Journal

35 HARTFORDBUSINESS.COM | NOVEMBER 1, 2021 Opinion & Commentary EDITOR'S TAKE Land-use policies weigh heavily on local economic development opportunities H otels and office buildings being converted to apartments. Mall space being transformed into healthcare and mixed-use facilities. Old manufacturing plants being re- imagined as modern e-commerce warehouse distribution centers. All these types of redevelopment projects are occurring around our state and country. As we move closer to a post-pandemic world, I believe we are headed toward a great period of redevelopment. The last year-and-a-half brought myriad challenges and accelerated shifts in many industries, forcing old-line companies and industries to close or shrink. Meantime, the future of office and hotel space — asset classes that were battered by the pandemic — remains uncertain. What is certain is that there is plenty of empty and underutilized commercial real estate in Connecticut, providing countless opportunities for developers and businesses looking to expand their portfolios or operations. The Hartford Business Journal in recent weeks has highlighted many redevelopment trends. In October, we published a story about developers snatching up shuttered hotels and converting them into apartments. There are at least a half-dozen such projects in the works across the state. In this week's issue we highlight the struggle of traditional malls and how some developers are converting empty storefront space into apartments, offices or even healthcare facilities. Reinvention is the name of the game. But as new uses for vacant properties are considered, countless challenges stand in the way, including municipal land-use regulations. Planning and zoning commissions are often overlooked bodies of local government but they are key gatekeepers in determining which development projects go forward, or get blocked. Connecticut, of course, does not have a great reputation when it comes to new development. Whether it's a penchant for NIMBYISM, high property taxes or construction costs, environmental concerns or other regulatory barriers, there are easier states in which to build or redevelop properties. As municipalities continue to face pressure to keep property tax rates in check and grow their grand lists, cities and towns with the most flexible zoning regulations and boards will have a competitive advantage in wooing new development in the months and years ahead. It's a topic that came up during a recent panel discussion I moderated for the virtual 2021 Greater Hartford Association of Realtors and UConn commercial real estate conference. The panel included the mayors of Hartford, West Hartford, Bristol, Manchester and Bloomfield — all communities with significant development projects in the works. Each of the mayors talked about the need to change, or at least consider changing, zoning policies as new opportunities arise. They also discussed how each of their communities use tax breaks and other incentives to help spur new development. Does that mean giving away the house to a developer? No, but it does mean being open and welcoming to new opportunities. Right now, the playing field is uneven. For example, in October, developers broke ground on 260 luxury apartments on the Westfield Trumbull Mall property, in hopes of transforming that struggling retail facility into a more mixed-use, live- play-work community. Conversely, Milford's town planners rejected a 300-unit, mixed-use apartment redevelopment at the site of the struggling Connecticut Post Mall. One zoning issue that's made headlines recently is cannabis regulations. Many communities have passed temporary moratoriums on the industry, waiting for more clarity on how best to regulate marijuana cultivation and retail sites. Other municipalities, including the city of Hartford, are ready to embrace the new industry and are setting up regulations that will allow dispensaries and grow facilities. Communities that are fast-moving will have the best chance to cash in on the economic development opportunities brought on by the recreational marijuana industry. Of course, planning and zoning commissions are made up of elected, volunteer and unpaid board members. It's a thankless job, but the work they do is important. While it may have flown under the radar, Nov. 2 is Election Day. There are no sexy national or statewide races this year, but municipalities across the state have local elections, including for positions on land-use boards. Voter turnout in off-year elections is often dismal, but as outlined above, who sits on municipal boards can have a major impact on local decision making. So make sure you go out and vote. Whether or not your community can benefit from the next major mixed- use development opportunity could depend on it. Greg Bordonaro EDITOR'S TAKE CT manufacturing can have a bright future By Scott Livingston My emotions have been running high during this 75th anniversary year at Horst Engineering. After just commemorating Manufacturing Month, it is important that I share the message that we need policymakers and other advocates to redouble their efforts so that manufacturers recover from the pandemic slowdown, and thrive again. The aerospace manufacturing supply chain is made of thousands of small businesses. Those that have been able to hang in there, are now poised for growth. Long lead times and deep backlogs are the main reason why aerospace and other advanced manufacturing businesses are often last into a recession. It also means they usually are the last out, as we have learned from past business cycles. In the mid-1990s, after the end of the Cold War, the defense aerospace sector struggled, but the commercial aerospace sector was beginning to take off. As the global economy recovered, and low-cost airlines emerged, air travel became more affordable and a travel boom ensued. Those that innovated, embraced the use of computer technology, and leveraged the beginning of the internet era, made the leap from old-school to advanced manufacturing. The cycles continued and the aerospace business rode the waves. Growth was interrupted in 2001 when the 9/11 terrorist attacks dealt another blow to the transportation sector. In the period that followed, passenger air travel struggled to recover, while defense industries returned to the fore. Security became paramount and with the necessary changes that were implemented, commercial aviation eventually soared again. The high cost of energy drove new aircraft programs geared toward fuel efficiency and improved reliability. As a supplier, if you kept pace with improving technology, you were rewarded with more business even as some high-precision work went offshore. In 2008, when the Great Recession hobbled the global economy, Horst Engineering faced another down cycle. We bottomed out in 2010 and started our rebound in 2013. We remained committed to our reinvestment plan, and in 2019, we launched the biggest project in company history with the acquisition of a large, but blighted building in our hometown, East Hartford. This was the start of a multimillion-dollar renovation and move that changed the way we operate. When we built our 2020 plan, "pandemic" wasn't one of the threats listed. Our first COVID-19 task force meeting was March 16. As a government-defined essential business and as a manufacturer, we had a built-in advantage because safety is part of our everyday habits. The speed of the downturn was quicker than past cycles and even as businesses that are part of the "stay- at-home" economy flourished, the transportation and hospitality sectors languished. Committing to an expansion plan in East Hartford in the midst of the doldrums was bold, but we are making it through and repositioning for an upturn. Today, we are a "75-year-old startup." We have the benefit of an incredible legacy and now our home is a state-of-the-art factory. Advanced manufacturing in Connecticut is here to stay. Yes, Connecticut has a lot of issues, but over the last two-and-a-half years, we have gotten much-appreciated support from our town and the state. Even the federal government stepped up. We are even more excited about the future and what that means for our workforce. The technical schools are regaining their footing. Goodwin University, Asnuntuck Community College, Manchester Community College, and the other institutions that help train the next generation of talented manufacturing workers, are making progress again. Skills have always been a competitive advantage for the people of Connecticut. Retirements and competition will require more investment in manufacturing skills-training programs. Doing business here doesn't have to cost so much. Policymakers still need to moderate regulations and ease up on taxes. I'm worried about healthcare costs and about the impact of the pandemic on business travel. I'm worried about a lot of things, but we stayed in Connecticut, we are investing, and are diversifying here. East Hartford and Connecticut may not entirely reclaim past industrial glory, but that doesn't mean we all can't be better. I probably won't be around in another 75 years, but my kids should be. By then, they may have kids and grandkids of their own. One of the benefits of being the steward of a family business is that you are guaranteed to have a long- term mindset. Scott Livingston is president and CEO of HORST Engineering in East Hartford.

• Cover