Issue link: https://nebusinessmedia.uberflip.com/i/539611
6 Hartford Business Journal • July 13, 2015 www.HartfordBusiness.com TOP STORY $100M OK'd to spur more Hartford development Lawmakers recently approved a $100 million bonding authorization to the Capital Region Development Authority to expand the agency's downtown Hartford development initiatives into city neighborhoods. CRDA Executive Director Michael Freimuth said the total authorization was $40 million more than the quasi-public redevelopment agency originally had sought. Half that authorization — $50 million — is allocated by the state legis- lature for fiscal 2016, which began July 1, with the rest accruing in fiscal 2017, CRDA and city officials said. About $30 million in each fiscal year, Freimuth said, can be earmarked for traditional CRDA projects such as housing within downtown Hartford. An- other $20 million can be allocated each fiscal year for city projects that are outside CRDA core downtown-district boundaries, with at least $10 million going to the North Hartford Promise Zone. This represents the first significant financial investment made to the Promise Zone since North Hartford received its designation in April. The Promise Zone is a White House initiative designed to support high need/high capacity communities across the country with implementing neighborhood revitalization strategies focused on job creation, increased access to qual- ity, affordable housing, expanded educational opportunities, improved public safety and improved health outcomes. With CRDA's board of directors on summer hiatus, Freimuth said he and his staff will assess and analyze which downtown and neighborhood proj- ects and sectors could benefit most from state investment in time for the board's September return. He noted that bonding authorization can be used to build structures, infrastructure, or to invest in economic development. SPORTS Hartford Yard Goats unveil logo The Hartford Yard Goats minor league baseball team unveiled its new logo and team colors last week. The team is relocating from New Britain — where it is known as the Rock Cats — for the 2016 season. The Yard Goats name was the result of a fan-naming contest. The logo features a horned goat angrily chewing a wooden stick. The logo's font pays homage to the for- mer New York/New Haven/Hartford Railroad Co. The team colors are kelley green and royal blue, like the former NHL Hartford Whalers. The logo design was created by San Diego mar- keting firm Brandiose, which designed the minor league logos for the El Paso Chihuahuas, Richmond Flying Squirrels and Lehigh Valley Iron Pigs. The firm also redesigned the major league Cincinnati Reds logo. The Yard Goats are a Double-A Eastern League affiliate of the Colorado Rockies. BIOSCIENCE Branford biotech startup lands $18M investment Branford medical software provider Core Informatics last week closed on a $17.5 million funding round with investors, enabling the company to nearly double in size. The Series B funding round was led by Greenwich equity fund Oak HC/FT, which liked the company's ability to provide software to researchers doing drug discoveries, molecular diagnostics and other scientific endeavors. This is Core Informatics' second round of funding; it raised $5 million last year. The money will allow the company to grow from 65 employees today to more than 100 by yearend, said Core CEO Josh Geballe. The company had 15 employ- ees a year and a half ago. "We will continue rapidly growing for years to come," Geballe said. Core Informatics provides a software platform for the medical community — particularly bioscience researchers — to analyze data, automate laboratory workflows and collaborate with external partners. With the new employees, Core will expand all areas of its business, including supporting clients, accelerating the build out of its platform, and scaling up the various applications offered to provide specific solutions for individual clients, Geballe said. ECONOMY & LABOR Hallmark closing Enfield distribution center Kansas City greeting card giant Hallmark announced last week that it will close its distribution center in Enfield by the end of June 2016, impacting 570 employees and ending its 63-year relationship with the community. Hallmark is consolidating its operations into its Liberty, Mo. Distribution center, and the Enfield closure will add about 400 new full-time positions in Missouri. The 570 Enfield employees may apply for one of the 400 new positions in Missouri with some relocation assistance available. The remaining Enfield em- ployees will receive severance packages. Hallmark first began operating a distribution center out of Enfield in 1952. Its current facility at 25 Bacon Road opened in 1980 and is 1 million square feet in size. CT among 10 worst states to make a living Connecticut is among the 10 worst states to earn a healthy living, according to a new report by MoneyRates.com. The national survey evaluated several factors to determine where workers had the best shot at a healthy paycheck, a decent cost of living and safe workplaces. The five factors that were evaluated were: average wages, state tax rates, cost of living, the unemployment rate, and incidents of workplace illness, injuries and fatalities. Connecticut ranked No. 41 out of 50 states. Hawaii ranked dead last, while Texas ranked No. 1. According to MoneyRates.com, Connecticut's ranking was negatively impact- ed by a high unemployment rate and cost of living. Workplace safety was also a concern in the state, the report said. The one bright spot: Connecticut improved by five spots this year compared to 2014. ENERGY & UTILITIES UIL withdraws $3B merger application Rather than face an out-right denial, New Haven utility parent UIL Holdings last week withdrew its application to Connecticut regulators for the company's proposed $3 billion acquisition by Spain utility giant Iberdrola. The move gives UIL and Iberdrola the opportunity to start the regulatory pro- ceeding over from scratch, although it significantly delays their plans to com- plete the transaction by the end of the year. The new company would have control over Connecticut utilities United Illuminating, Connecticut Natural Gas and Southern Connecticut Gas. The Connecticut Public Utilities Regulatory Authority already indicated in its draft decision last week it planned to deny the proposed $3 billion takeover on the grounds that there are no guarantees or indication it will be beneficial for ratepayers. UIL and Iberdrola had asked for an extension of the case so that it could adequately prove the transaction's worth, but PURA quickly denied that. Instead, by withdrawing, UIL and Iberdrola have the opportunity to make their case before PURA anew, with better knowledge of what the agency wants be- fore granting its approval. The two utility companies had planned on completing the acquisition by the end of the year. However, starting the Connecticut regulatory process over again will slow that down, as it is subject to a 120-day waiting period, and the first case took nearly six months before getting to a draft decision. MANUFACTURING UTC building customer center in Florida Hartford conglomerate United Technologies has decided Florida is the best state to build a new customer showcase center for its building systems tech- nologies. The new UTC Center for Intelligent Buildings in Palm Beach Gardens, Fla. will feature products from both air conditioning company Carrier and Otis Eleva- tor Co., both of which are based in Farmington. The center also will showcase technologies from other UTC Building & Industrial Systems subsidiaries: Chubb, Kiddie and Automated Logic. UTC did not disclose the cost of the new facility, but it will buy 30 acres of land surrounding the site. The conglomerate is receiving incentives from the state of Florida, Palm Beach County and the city of Palm Beach Gardens. UTC said it chose the Florida location because it is on the I-95 corridor and near three major airports, providing easy access for visiting global customers. It also is near other UTC locations, such as the Pratt & Whitney facility in Palm Beach. BY THE NUMBERS $2.1 million The amount of money Connecticut is receiving as part of a $136 million legal settlement with Chase Bank USA to resolve charges the bank engaged in deceptive practices, including robo-signing. 570 The number of employees who will lose their job when Hallmark closes its Enfield distribution center next June. $8M The value of the final piece of financing secured by The Corporation For Independent Living to redevelop Hartford's long-dormant Capewell Horsenail Factory site into 72 apartments. 111 The number of Connecticut companies since 2007 that secured financing or other financial support from the Export-Import Bank, which Congress recently failed to reauthorize. TOP 5 MOST READ on HartfordBusiness.com ■ CT among 10 worst states to make a living ■ $100M OK's to spur for Hartford development ■ UTC building customer center in Florida ■ Branford biotech startup lands $18M investment ■ UIL withdraws $3B merger application 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 Developers received CRDA funding to convert the former Sonesta Hotel in downtown Hartford into apartments. P H O T O | H B J F I L E