Hartford Business Journal

18 HARTFORDBUSINESS.COM | FEBRUARY 24, 2025 Daniel O'Keefe is the commissioner of the state Department of Economic and Community Development. HBJ PHOTO | STEVE LASCHEVER Return On Investment CT economic czar: $50M 'Greyfields Revitalization' initiative, $150M in manufacturing funding are 'down payments' on growth future, O'Keefe said. The $50 million Greyfields program and other newly launched economic initiatives are part of the strategy. "Connecticut really got its (fiscal) house back in order," O'Keefe said. "Now, I'm going to start pushing us forward, and I want to see more of a balance between continuing to pay down the mistakes of the past — we still have too much per-capita debt — and also fundamentally investing in our future in projects that have tangible, definable ROI (return on investment)." The Lamont administration will have to walk a tightrope with those investment decisions, given that pandemic-era federal aid has dried up, leaving some gaps in the state budget. In his recently proposed two-year, $55.2 billion spending plan, Lamont has proposed $348 million in corporate tax hikes over the next two fiscal years. Meanwhile, hospitals, public colleges and other groups have complained about a lack of funding in the budget. O'Keefe said he understands the state's belt has tightened, but programs being established now will set the framework for future invest- ments when more funding is available. Some of the state's key economic development programs include Quan- tumCT and Innovation Clusters. Launched in early 2024, Quan- tumCT is a public-partnership between Yale University, UConn, the state and private industry to advance Connecticut as a host for quantum technology research and companies. This field, which uses physics to create innovative tools and applications, is seen as an up-and-coming industry. The Innovation Clusters program, likewise, aims to promote growth in emerging industries by leveraging up to $100 million in state funding to advance partnerships between local governments, industry and others. The state, in January, announced that partnerships rooted in Hartford, New Haven and Stamford were invited to submit final proposals. Hartford and Stamford are looking to build artificial intelligence inno- vation centers, while New Haven By Michael Puffer mpuffer@hartfordbusiness.com S ome of Connecticut's struggling retail malls and vacant office towers could find new life, or be demolished to make room for new development, under a $50 million "Greyfields Revitalization" program in Gov. Ned Lamont's proposed two-year capital budget. The program would fund incen- tives to either convert dormant or struggling retail and office properties in key locations into multifamily housing, or bulldoze them to make room for more economically relevant uses, said Daniel O'Keefe, commissioner of the state Department of Economic and Community Development. "What Greyfields is meant to do is, first, incentivize conversion — so if we can convert, we will," O'Keefe said. "But, if we can't, get out your stick of dynamite and start over, rather than waiting 20 years and kicking ourselves for not starting sooner." The $50 million Lamont has proposed over the next two fiscal years could be absorbed quickly, given the struggles of the office market and some major mall proper- ties, O'Keefe acknowledged. He aims to show a few early successes to convince lawmakers to pump addi- tional funding into the program. "I view that as a down payment," O'Keefe said. "I don't think it's going to solve the problem, but I think it's going to start to solve the problem. You have to start these programs by identifying the problem, then you start pulling together constituents who can solve the problem. And then you start showing wins." Setting the table After six years of budget surpluses and deep investments in public pension obligations, the state must continue to invest in its economic $290B $280B $270B $260B $250B $240B 2006 2008 2010 2012 2014 2016 2018 2020 2022 2024 CT'S REAL GROSS DOMESTIC PRODUCT Source: U.S. Bureau of Economic Analysis REAL GDP $300B

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