Hartford Business Journal

22 HARTFORDBUSINESS.COM | DECEMBER 9, 2024 5 WE WATCHED IN 2024 Hartford Mayor Arunan Arulampalam in City Hall. HBJ PHOTO | STEVE LASCHEVER Setting The Table Hartford Mayor Arulampalam eyes state funding request for empty office space conversions ment, tourism and culture. This could ultimately lead to more efficient, effective and expanded services, as well as joint economic development efforts that buoy both communities. "I think if we are successful, it will be in many ways the most momen- tous thing we do in our time here in the city," Arulampalam said. Also in October, Arulampalam announced he had set aside $16.5 million — mostly from a fiscal year 2024 budget surplus — for new youth, housing and neighborhood business programs. While the mechanics of those initia- tives need to be fleshed out, Arulam- palam said he envisions spending $11.5 million on business and housing development along major commercial arteries in Hartford's neighborhoods. Big request Dealing with the city's high office vacancy rate — brought on by employers' pandemic-induced embrace of remote work — has been another big priority, Arulampalam said. Several of the city's largest office tenants have yielded hundreds of thousands of square feet of leased space, increasing vacancy rates and lowering property values. Real estate services firm CBRE esti- mated downtown Hartford's office vacancy rate for Class A buildings was 26.7% at the end of the third quarter, while Cushman & Wakefield calculated an overall downtown Hart- ford office vacancy rate of 35% at the end of the second quarter. Other landlords have said the true downtown office vacancy rate — espe- cially for larger, Class A buildings — is closer to 40%, when soon-to-expire leases are taken into consideration. The headwinds have caused several major Class A office towers — the Metro Center at 350 Church St. (293,639 square feet); the Stilts Building at 20 Church St. (419,600 square feet); and much of the Consti- tution Plaza office complex — to fall into foreclosure. The situation is a major concern for a city that has long depended on downtown office buildings for a significant chunk of its property tax base, and office workers to fuel downtown restaurants and shops. Arulampalam said he's preparing to make a "one-time" request for state funds to support the conversions of a large chunk of downtown office space into apartments. "It is clearly going to require the help of the state to address office vacan- cies," Arulampalam said. "It's important to the city because it has an impact on our downtown in terms of vibrancy, but most importantly because it has a huge impact on our tax base." Conversions, the mayor said, would create additional downtown housing, a win for a city striving for vibrancy and a state government eager to alleviate a broader housing shortage. It would, presumably, also funnel By Michael Puffer mpuffer@hartfordbusiness.com M ayor Arunan Arulam- palam launched his first term in office with a goal of making Hartford the easiest Connecticut community in which to run a business. Nearly a year later, Arulampalam isn't declaring "mission accomplished," but he is touting significant progress. "I think if you talk to people who started businesses in the last six months, and who started businesses prior to that, I think they'll tell you that it is getting quicker to get licenses in the city of Hartford," Arulampalam said. Key to this business-friendly push has been putting new staff in important positions. On Jan. 2, his second day in office, Arulampalam appointed former Wethersfield Town Council member Patrick Pentalow as economic development director. In that same month, Arulampalam named Don Chapman — a well-known former senior city planner — as head of the newly created Office of the Business One-Stop. The new city outpost — which now has a staff of two — was created to help small businesses navigate the sometimes-cumbersome bureau- cracy of City Hall. Arulampalam said the office fosters a "healthy tension," balancing necessary city oversight with practical business needs. Halfway through the year, Arulam- palam appointed former Infosys executive Jeff Auker as the city's new development services director. The position oversees Hartford's planning and economic development arms. Auker led tech giant Infosys' emerging technology and innovation efforts in Hartford since 2018. "I think it helps to have someone leading development services who has run a major business in the city," Arulampalam said. "Jeff, when he was head of the Infosys hub, navigated state and city government. Simple things like getting a sign up on a building can turn into a real ordeal. Having someone on the other side, who really understands where those businesses are coming from and wants to make it easier to do business here, has really made a big difference." Shared services The mayor has begun to confront other major challenges. Arulampalam and East Hartford Mayor Connor Martin, in October, announced a commitment to find ways to share services, including potentially common purchasing and even personnel, and develop a joint vision around economic develop- ARUNAN ARULAMPALAM Mayor City of Hartford Education: Law degree, Quin- nipiac University School of Law; bachelor's degree, international studies, Emory University Age: 39

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