Hartford Business Journal

HBJ20230109_UF

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10 HARTFORDBUSINESS.COM | JANUARY 9, 2023 5 TO WATCH openings throughout 2022, and the state's high cost of living has contributed to stagnant population growth over the last decade-plus. "The Communities Challenge program is an example of DECD directly investing in housing proj- ects," Daum said. "We have the dollars and we have an opinion on where to build the housing in order to make sure that it helps serve our businesses and helps them to fill those positions." Rollout of another new initiative — the Innovation Corridor Program — was delayed in 2022 and could come to fruition in 2023, Daum said. It promised to grant up to $50 million for transformative projects mingling community development and job creation in urban centers. Only three "eligible" applications — from Stamford, New Haven and Hartford — were received last year, according to DECD. In Hartford, local officials requested $48.4 million, claiming the money would leverage another $242 million in private investment to cre- ate housing and advanced manufac- turing research and training centers in the city's Parkville neighborhood. Grant announcements have been delayed, Daum said, because the initiative had "ambitious require- ments," and DECD was "looking for a really high bar of applications." One of the program's biggest hurdles is a stringent 4-to-1 ratio of private sector to public money. That means 80% of the overall project's price tag must be secured from pri- vate investors before the state kicks in the remaining 20%. Daum said DECD is "still working with applicants … but no one has met that bar yet." "It's a high bar and we don't want to dramatically change criteria," she said. Meantime, brownfield remedia- tion funding, one of Daum's focus areas under Lehman, also allows her agency to support funding for clean- ups in areas where housing or mixed- use development is most needed. "We'd prefer a project that is going to create more units in an area that already has good infrastructure and good transit," she said. Incentives strategy Another focus area, Daum said, will be continuing to prioritize perfor- mance-based incentives for larger businesses. Lehman retooled the state's business incentives strategy, which eventually led to the creation of JobsCT, a new rebate program that offers tax breaks to companies that reach certain job-creation targets. JobsCT codifies the Lamont administration's earn-as-you-grow incentives strategy, which marks a significant change from policies under former Gov. Dannel P. Malloy, who focused on providing upfront grants to businesses that promise to add jobs. Under JobsCT, companies in specified industries may earn rebates against their insurance pre- miums and/or corporation business and pass-through entity taxes based on the number of new jobs they cre- ate. There are no upfront payments, and the tax breaks don't kick in until year three. Businesses in the finance, insur- ance, manufacturing, clean energy, bioscience, technology and digital media sectors are eligible for the rebates if they create and maintain at least 25 new positions. Daum said DECD will also focus on providing support to smaller compa- nies via the $150 million Small Busi- ness Boost fund, which was launched over the summer and provides low-interest loans of up to $500,000 to small businesses and nonprofits. The program will be equally funded by the state and private banks. As of December 2022, five banks had signed on to participate, and 118 loans totaling more than $16.5 million had been issued. That is on par with the expected demand, Daum said, and DECD will continue getting the word out about the program and helping applicants. A majority of the loans have gone to minority, women or veteran busi- ness owners, "which is a huge goal of the program," Daum said. A CT rebrand Daum said she also wants to realign the state's tourism approach. Highlighting Connecticut's shore- lines and more rural attractions is still a strategy, but Daum said there's just as much to see and do in bigger cities. "Whether you're visiting or whether you're thinking of somewhere to live, we have this extremely wide array of environments, including some of the best suburbs and small cities in the region," she said. Visitors or residents might want to hit the beach or an apple orchard, but the new Parkville Market might be a top destination for others, she said, so marketing and tourism campaigns must reflect the state's diverse offerings. Tourism in general is also seeing a major funding boost, from around $8 million in previous biennium bud- gets, to now closer to $24 million, with a statewide rebranding cam- paign on the horizon, Daum said. John J. Cafasso, CCIM SIOR Principal, Hartford Office 860 616 4013 john.cafasso@colliers.com Listing details or showing, please contact: Christian Dietz Senior Associate, Hartford Office 860 616 4028 christian.dietz@colliers.com • "Class-A" office building with beautifully manicured grounds • On-site ownership & management • Newly installed cold plasma generators for better indoor air quality • Easy access to major highways & a short walk to downtown amenities • Plenty of on-site, secure, free parking - surface lot and covered garage • Brand new, State-of-the-Art Media Center. CLASS A OFFICE SPACE Convenient to Every Central Connecticut City For Lease One Liberty Square, New Britain, CT Professional/Medical Office With Contiguous Spaces From 2,000 SF to 25,000 SF

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