Hartford Business Journal

14 HARTFORDBUSINESS.COM | JULY 24, 2023 Hartford Mayor Luke Bronin said he would like state-owned, tax-exempt properties to be put back on the city's tax rolls. HBJ FILE PHOTO Bronin: Potential state office building consolidation could help grow Hartford's tax base By Andrew Larson alarson@hartfordbusiness.com T he state is planning an office consolidation in the salm- on-colored twin towers at 450 Columbus Blvd., a property that sits on the outskirts of downtown Hartford along the Connecticut River. In late June, the state Bond Commission approved $1 million as the initial seed money for the project. While the state has not yet listed any properties for sale in anticipation of the consolidation, Hartford Mayor Luke Bronin said he sees it as a chance to get state-owned buildings back on the city's tax rolls. "I think it's a positive thing," Bronin said. "I support trying to move some of that state-owned, tax-exempt property into private ownership, and to have the opportunity to re-imagine those buildings, whether as commer- cial office space or potentially residential opportunities." Occupying just 18 square miles, Hartford is a tiny city that houses many tax-exempt properties, signifi- cantly limiting the city's ability to grow its grand list and forcing commercial property owners to shoulder the highest tax burden in the state, at 68.95 mills. In fact, more than 50% of proper- ties in Hartford don't pay property taxes because they are owned by nonprofits, colleges, hospitals, religious institutions, or the state. Hartford, with a population of about 120,000, has a taxable property base that is barely larger than the tax base of small suburbs like Farmington (27,000 residents) and Glastonbury (35,054 residents), officials have said. One key way to address the issue is to get more properties on the tax rolls. The state Department of Admin- istrative Services is evaluating the footprint of state agencies, looking for cost savings and efficiencies, according to John McKay, a spokesman for the agency. "The state is constantly evaluating its property holdings, including leases, and after careful review will make decisions that are in the best interest of the taxpayers of Connecticut," McKay said. He emphasized that no decisions have been made, although the state is in the early stages of considering the possible closure of several offices in Greater Hartford: • 61 Woodland St., Hartford: home to the Connecticut State Colleges & Universities system; • 39 Woodland St., Hartford: home to the Connecticut Technical Educa- tion and Career System; • 505 Hudson St., Hartford: Depart- ment of Children and Families' headquarters; and • 60 State St., Wethersfield: Depart- ment of Motor Vehicles. McKay said no decisions about future uses for those sites have been made. With demand for commercial office space low following the COVID-19 pandemic and accompanying rise of remote work, there are questions about how the properties could be used. "The commercial real estate market is facing some significant challenges here, as it is everywhere," Bronin said. "And so, I imagine potential buyers will be looking at a full range of possibilities, including residential." Not all potential uses would yield tax-paying entities. The federal General Services Administration is looking for a site for a new federal courthouse to replace the aging Abraham A. Ribicoff United States Building and Courthouse at 450 Main St. One of three sites in contention is 61 Woodland St., which spans about 10 acres. The others are 154 Allyn St., currently a surface parking lot in downtown Hartford, and 201 Hudson St., a surface parking lot with an auto detailing shop on it. Remote work debate Tax revenue isn't the only consid- eration. Bronin said he'd like to see more state employees working in-person, and hopes the DAS study will result in bringing more state workers into the Capital City. "What matters is not whether employees are attached to any partic- ular building on paper," Bronin said. "What matters is whether they're actually in the building." The Lamont administration last year reached an agreement with state employee unions that gave thousands of state workers the ability to work remotely for as many as four days per week. "When considering the amount of office space available in the future, one of the primary considerations will be the future of telework by state employees," McKay said. The consolidation at 450 Columbus Blvd., could signal a renewed focus on increasing the concentration of state workers in downtown Hartford, which would help merchants who rely on patronage from foot traffic. "Even though this state is not currently in a full return-to-work mode, presumably it'll evolve in that direction," said Larry Levere, an office broker with Hartford-based Sentry Commercial. "The more people coming downtown, the better for the restaurants and the retailers in the downtown area." The consolidation could ultimately help state government operate more efficiently, while lowering mainte- nance and operational costs. "There's an efficiency in putting as many people under one roof as possible, rather than spreading them out over several buildings," Levere said. Sellers, not buyers DAS has issued a request for qualifications for consultant/architec- tural services to "assist in the devel- opment of a space utilization plan to maximize office space within 450 Columbus Blvd., and evaluate state Highest property tax rates in CT MUNICIPALITY MILL RATE HARTFORD 68.95 WATERBURY 60.21 HAMDEN 55.48 NEW BRITAIN 49.50 NAUGATUCK 47.75 TORRINGTON 47.14 WOODBRIDGE 43.77 BRIDGEPORT 43.45 NORWICH 41.83 WETHERSFIELD 41.08 EAST HARTFORD 41 WEST HARTFORD 40.68 BOLTON 39.99 Source: Office of Policy & Management

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