Hartford Business Journal

6 Hartford Business Journal • February 23, 2015 www.HartfordBusiness.com By the NumBers $1.54B The price of maintenance work performed by Pratt & Whitney on C-17 aircraft engines, which the Pentagon is now challenging, according to Bloomberg. 8.1% An optimistic rate of real GDP growth Connecticut could experience in 2015 — calculated by UConn economists using a model based on an assumption of rising interest rates. $9M The amount of money Hartford is projected to save by using an authority to borrow money to build a $56 million ballpark, rather than a lease-buy arrangement with a private developer, according to the city. 2 The number of Rock Cats lifetime season tickets to be won by whoever creates the team's new name. top 5 most read on HartfordBusiness.com ■ Former Hartford Financial CEO McGee dies of cancer ■ Wayback franchisor inks deal with bbq purveyor ■ Malloy pitches wholesale changes to CT's sales tax ■ Vendor problems top list of reasons for wedding insurance claims ■ Rock Cats renaming contest begins stay CoNNeCted For breaking and daily Greater Hartford business news go to www.HartfordBusiness.com. HBJ on Twitter: @HartfordBiz HBJ on Facebook: www.facebook.com/HartfordBiz HBJ on LinkedIn: www.linkedin.com/company/ the-Hartford-Business-Journal Daily e-newsletters: HBJ Today, CT Morning Blend www.HartfordBusiness.com/subscribe Weekly e-newsletters: CT Green Guide Weekly www.HartfordBusiness.com/subscribe top story Former Hartford Financial CEO McGee leaves legacy Liam E. McGee, the former CEO and chairman of The Hartford, only spent about five years in Connecticut, but it was clear last week that he left his mark. The announcement of his sudden death from brain cancer stoked reac- tion from city and state leaders, who praised McGee for helping turnaround one of the region's largest employers and con- tributing to the community as well. "He and his wife Lori, were both extremely passionate about our community and, as a re- sult, personally supported several nonprofit or- ganizations, including Hartford Public Library, Grace Academy and The Wadsworth Museum of Art," said Hartford Mayor Pedro Segarra. U.S. Rep. John Larson said McGee "raised the bar for Connecticut industry through hard work and innovation matched by few." "His professional judgment and ability to reach new potentials in the private sector will long be dis- cussed and celebrated by colleagues while our community will always be thank- ful for his efforts and generosity towards the people of Connecticut," Larson said. McGee most recently served as executive chairman of The Hartford, a position he stepped down from Jan. 5. He previously held the additional roles of chairman, president and CEO of The Hartford from Oct. 1, 2009, through July 1, 2014. McGee was credited with helping turnaround the company following its struggles after the Great Recession. During his tenure, The Hartford shed much of its legacy annuities and life insurance businesses to return to a focus on its core property-casualty and mutual-fund operations. McGee unexpectedly resigned as CEO more than a year after it was revealed he underwent surgery to remove a brain tumor. He died in California Feb. 13. Before joining The Hartford, McGee spent more than three decades as a fi- nancial services business leader, including as president of the Consumer and Small Business Bank for Bank of America. Chris Swift, The Hartford's current chairman and CEO, said, "Thanks to Liam's leadership and tireless efforts, the company has completed a strategic and fi- nancial transformation and is well positioned for future success and prosperity." eCoNomy & LaBor UConn economists: Invest in public sector, infrastructure A team of UConn economists and researchers said last week that state gov- ernment must invest in education, transportation and high-speed Internet net- works to ensure long-term economic job growth. The Connecticut Center for Economic Analysis released its report in advance of Gov. Dannel P. Malloy's budget speech and warned against major funding cuts. "Serious government belt tightening could severely damage Connecticut's robust recovery and thwart its opportunity to finally experience sustained em- ployment growth," CCEA said. CCEA issued two outlooks for the state's real gross domestic product for 2014 (which the federal government has not yet calculated), 2015 and 2016. In a model based on housing permits, Connecticut's GDP would grow 2.4 per- cent last year, followed by 4.85 percent growth in both 2015 and 2016. Under that "least spectacular" outlook, the state's employment base would grow to 1.73 million by the end of 2016. Employment stood at 1.69 million in December, according to labor officials. A second model, based on gradually accelerating interest rates, produces more optimistic results, with GDP growth of 4.8 percent in 2014, 8.1 percent in 2015 and 3.2 percent in 2016. CCEA's researchers said it's the most optimistic result the model has pro- duced for them to date, but they are skeptical the state has enough excess economic capacity to achieve it. eCoNomiC deveLopmeNt & CoNstruCtioN Rock Cats renaming contest begins Last week's groundbreaking ceremony for a minor league baseball stadium in Hartford's Downtown North section also marked the beginning of the end of the moniker for the team that will play there. The owners of the New Britain Rock Cats, which has been the team's name since 1997, are holding a contest to choose a new name. The person who submits the winning name will get two lifetime season tick- ets, team gear, and their photo in the game program. Four runners up will get a pair of season tickets for the team's inaugural season in Hartford. The entry deadline is Feb. 27. The team will list five finalist names on March 11. LegaL Covanta to be fined $80K for Bristol safety violations The U.S. Occupational Safety & Health Administration has proposed fining the owner of Bristol's trash-to-energy plant $80,100 for 16 workplace safety violations. OSHA wants to fine New Jersey-based Covanta Energy for failing to determine its employees' exposure to ash containing toxic materials at the Bristol plant where garbage is burned for energy. OSHA also cited Covanta for letting dust accumulate on walkways, not having proper protective clothing for workers performing electric tests, not having safeguards for employees working in confined spaces, not having an emergency eyewash station, and various fall and mechanical hazards. Covanta spokesman James Regan said the company had not been informed by OSHA of the violations and heard about them only through the media. "The health and safety of employees is our first priority at Covanta so we take the assertions in the OSHA press release very seriously," Regan said. "We look forward to working cooperatively with OSHA to gain a thorough understanding of the concerns." reaL estate CT's '14 home sales, prices dip from '13 Connecticut house sales rose the final month of 2014, but 12-month sales wound up slightly below those of the previous year, The Warren Group says. Statewide single-family home sales grew 1.7 percent to 2,196 units sold in De- cember from 2,160 units a year earlier — the fourth straight month of higher year- over-year sales, according to the Boston-based publisher of The Commercial Record. However, January to December 2014 sales were down 1 percent, to 25,660 units vs. 25,919 the same period a year earlier. The median price of a single-family home fell 2.1 percent to $240,000 in Decem- ber, down from $245,000 a year earlier. Year-to-date, the median price for homes sold was $251,500, falling 3.3 percent from $260,000 in the same timeframe last year. Condominium sales statewide posted a 4.9 percent increase in December, climbing to 603 condos sold up from 575 the same time a year ago, The Warren Group said. Year-to-date, condo sales were up 3.1 percent, increasing to 6,961 from 6,753 during the same period last year. The median sales price for condos in December fell by 4.8 percent, decreas- ing to $160,000 from $168,000 in December 2013. The year-to-date median selling price of condos in Connecticut was $168,500, down 1.4 percent from $170,800 a year ago. hospitaLity Wayback franchisor inks deal with bbq purveyor Cheshire's Jake's Franchising LLC, which franchises the Jake's Wayback Burgers chain, said it will begin franchising a barbecue restaurant brand this spring. Under an agreement with Uncle Willie's BBQ — which has two restaurants in North Haven and Seymour — Jake's will seek to grow the brand in the North- east and beyond. "The Uncle Willie's brand is a fan-favorite in the region and we see it seam- lessly converting to a franchise model," Wayback President John Eucalitto said in a statement. Patricia Verderame, who is a multi-unit Wayback franchisee, will be president of Uncle Willie's International LLC. The new franchising entity will operate independently of Wayback, and Wil- lie's founders Bill and Diane Lombardi will continue to own their two locations, the company said. Week iN review Liam E. McGee, former CEO and chairman, The Hartford P H O T O | C N N

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