Hartford Business Journal

6 Hartford Business Journal • April 20, 2015 www.HartfordBusiness.com TOP STORY Hartford apt. market competition intensifies Leasing has begun on another batch of downtown Hartford apartment units in a converted, former hotel overlooking Constitution Plaza slated to open in May. Spectra Boutique Apartments, rather than the developers' earlier name choice of On The Plaza, has 193 units available within the $26 million recon- figured interior of the concrete shell at 5 Constitution Plaza that once was the American/Sonesta/Clarion Hotel. Girona Ventures and Wonder Works Construction, both in New York, are co- developers of the housing conversion. Wonder Works is the contractor. Glastonbury property-manager/broker TRIO Properties LLC is overseeing Spectra's leasing. At last count, Spectra's owners were anticipating rents of about $25 per square foot, making the monthly rent on a studio apartment around $1,600. Spectra joins a half-dozen completed or nearly finished office-to-apart- ment conversions that will add more than 700 units in the city's central business district. ECONOMY & LABOR Report: CT has lowest proportion of sub-$15 earners Connecticut has a lower percentage of workers earning less than $15 per hour than any other state, according to a report released last week by the Na- tional Employment Labor Project. Using U.S. Census Bureau data from 2012 to 2014, NELP calculated that 33.4 percent of Connecticut workers earn less than $15. NELP is part of a national "Fight for 15" campaign to raise the national mini- mum wage to $15. Across the country, 42 percent of workers make less than $15 per hour. Those workers are disproportionately minorities and women, the report said. And they are most heavily concentrated in food preparation and service jobs, while the retail sector has the highest number of those workers. Connecticut has the highest median wage of any state, at $20.40 per hour. Its $9.15 minimum wage is scheduled to increase to $10.10 in 2017. HOSPITALITY & TOURISM State study: Visitors to CT spent $8.3B in 2013 The economic impact of Connecticut tourism in 2013 continued to creep back toward its pre-recession high, according to a state-commissioned report. Visitors to the state increased their spending to $8.3 billion in 2013, up from $8 billion in 2012 and $8.1 billion in 2011, according to the report, which was authored by Pennsylvania-based Tourism Economics. The spending by those 58.1 million visitors created an additional $14 billion in indirect economic activity, the report said. And it also generated direct state and local taxes of $504.6 million and 80,645 direct jobs with a payroll of $5 billion. The 2012-2013 spending increase was driven by the food and beverage and retail sectors. GOVERNMENT & POLITICS OFA: Most of April budget rescissions cut deficit Much of Gov. Dannel P. Malloy's third round of fiscal 2015 budget rescissions will reduce the deficit, but won't come close to wiping out all the red ink, the Office of Fiscal Analysis said last week. OFA said the $13.7 million in mid-year cuts across various state agencies, announced April 1, will reduce the deficit by $12.1 million, to $178.9 million. That's down from OFA's March deficit estimate of $191 million. Malloy has issued just shy of $100 million in current-year rescissions. But only about $65 million of those cuts will reduce the deficit, OFA said. Bronin's 1Q fundraising outpaces Segarra Hartford mayoral challenger Luke Bronin has taken the early fundraising lead against incumbent and fellow Democrat Pedro Segarra. Bronin reported campaign donations of $381,087 for the quarter ended March 31, while Segarra reported raising $202,941. Meanwhile, Democrat and attorney John Q. Gale raised $63,455 in the first quarter. Bronin is a partner at the law firm Hinckley Allen, and was recently general counsel for Gov. Dannel P. Malloy. Segarra, also an attorney, is seeking his second full term in office. HEALTH CARE Hartford Healthcare reaches accord with United Healthcare Hartford Healthcare and insurer United Healthcare last week came to terms on a multi-year contract, just in time to keep two of the system's hospitals from falling out of the insurer's network. The contract covers services at all five of Hartford Healthcare's hospitals, as well as ancillary facilities and physicians. It also includes an accountable care plan, which will reward providers for managing medical costs and improving health outcomes. If the agreement was not reached by April 15, Hartford Hospital and the Hospital of Central Connecticut in New Britain would have fallen out of United Healthcare's network, meaning higher costs for some patients. Approximately 13,500 United Healthcare customers visited one of those hospitals in the past year, according to United Healthcare spokeswoman Maria Gordon-Shydlo. The contract also includes United Healthcare's Oxford-branded plans. GAMING Mohegans sign onto food-to-go venture The Mohegan Tribe's non-gaming subsidiary has signed an agreement with an Old Saybrook gourmet food-to-go business to open new locations, including at Mohegan Sun. The first new Pasta Vita location will open this summer at the casino. Rich Cersosimo and Lou Castanho will continue to own and operate the flagship location in Old Saybrook. It's the fifth business venture Mohegan Holding Co. has launched since last year. The tribe has invested in several restaurants, wood pellet plants, and an office software and equipment distributor. Foxwoods sees steeper March revenue decline than Mohegan Connecticut's two casinos both reported March slot revenue declines, with Foxwoods recording a larger drop. Foxwoods said its slot revenues for the month fell 9.3 percent, which was its third consecutive year-over-year decline. Foxwoods booked revenue of $40.4 million, down from $44.6 million in March 2013. Meanwhile, Mohegan recorded a $700,000 decline over the year, or 1.3 per- cent, to $51.2 million. Foxwoods' handle fell from $566 million to $507.5 million, while its state contri- bution declined by $1.5 million, to $10.7 million. Mohegan's handle fell from $625.6 million to $611.7 million, while its state contribution fell $200,000, to $12.8 million. ARTS Hartford Symphony Orchestra signs director to new contract The Hartford Symphony Orchestra said it has signed a six-year contract with its music director, Carolyn Kuan. HSO's board signed a three-year contract with Kuan in 2011, and last year extended it through this year. The six-year contract begins in 2016. Financial terms were not disclosed. Kuan earned $177,000 in compensation and benefits during the fiscal year ended Aug. 31, 2013. In a statement, HSO credited Kuan's artistic excellence and her introduction of mul - timedia and traditional Asian instruments in some of the performances she has con- ducted. Kuan has also collaborated on concerts and exhibits with other Hartford arts institutions, including Hartford Stage and the Wadsworth Atheneum. HSO also held its first composition competition this year. Symphony President and CEO David Fay said in a statement that HSO will benefit from Kuan's talent and leadership. BY THE NUMBERS 5.4% The serious delinquency rate of Connecticut mortgagees in February, down from 6.5 percent a year ago. 175,140 The number of family households in Connecticut headed by women, according to the U.S. Census Bureau. $2 billion The approximate amount of income tax revenues Connecticut needs to collect this tax season for its current-year deficit not to worsen, according to the Connecticut Mirror. 1,953 The number of middle-market firms ($10M-$999M in revenue) in Connecticut, making up less than 1 percent of all companies, according to American Express and Dun & Bradstreet. TOP 5 MOST READ on HartfordBusiness.com ■ Lubitski Consulting's $10K ethics fine ■ Mohegans sign onto food-to-go venture ■ OFA: Most of April budget rescissions cut deficit ■ Report: CT has lowest proportion of sub-$15 earners ■ DRS: We'll work with taxpayers 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 WEEK IN REVIEW Owners of Hartford's Spectra Boutique Apartments are now leasing the building. H B J P H O T O | G R E G S E A Y

• Cover