Hartford Business Journal

22 Hartford Business Journal • September 28, 2015 www.HartfordBusiness.com CityPlace I's new owner envisions 'tweaks' B oston's Paradigm Properties, the recent buyer of Connecticut's tallest skyscraper in downtown Hartford, acquired more than just brick-and-mortar in the $113.3 million transaction. Paradigm also hired CityPlace I's entire management/operations staff from CB Rich- ard Ellis-New England, the tower's previous manager, said Kevin McCall, CEO of Para- digm Properties and affiliate Paradigm Capi- tal Advisors. Among them were CityPlace I's building superintendent and its engineer. He said Paradigm will bring "a differ- ent operating style to the building that is client-centric." The 38-story tower, however, needs little in the way of exterior-interior capital improvements, McCall said. Previous owner, Chicago realty mogul Sam Zell ensured one of the state's and Hartford's last major office towers erected in the late '80s was well maintained. "The building's in great shape,'' McCall said the day the deal was announced. "There are a lot of terrific components. There will be opportunities to tweak.'' One feature — it's soaring, multi-story atrium that links CityPlace I and its squat, next-door neighbor, CityPlace II — could be in for a makeover, "to make it more dynamic,'' McCall said, declining to elaborate. Tenants and pedestrians weekdays use the planter-lined atrium to enter or exit the building from Asylum, Pearl and Trumbull streets; to get to and from Max's Restaurant; or to Bank of America's branch and automat- ed teller machine, among other ground-floor tenants. He noted that CityPlace I's anchor tenant, UnitedHealth, regularly takes advantage of that indoor space. — Gregory Seay from page 1 like pension reform, and hopeful- ly rolling back tax hikes so more companies feel they can do busi- ness in Connecticut. "Everybody agreed that this is what we need to do. We need to have a more aggressive stance in the legislature," said James Albert, president and CEO of the Central Connecticut Chambers of Commerce. "This is more of an offensive approach than we have seen in many, many years." The gathering came after this year's legislative session ended with a $1 billion tax increase — including a new unitary reporting tax, stricter limits on tax credits, higher sales taxes on computer ser - vices and an increase in the hospital provider tax — that left the business community crying foul and warning of significant repercussions to the state's eco- nomic competitiveness. Even though Gov. Dannel P. Malloy rolled back the tax increases by $178 million during a special session, damage was done with major companies like Fairfield conglomerate General Elec- tric warning they were going to move out of the state. GE is expected to announce its new headquarters in December. Business lobbying groups plan to be more explicit with law- makers on the implications of any tax or fee increases and other regulatory changes, said Timothy Stewart, president of the Greater New Britain Chamber of Commerce. A firmer, more public stance seemed to work at the end of the most recent legislative session, as sharp criticisms and threats to leave the state by GE, Aetna and other Connecticut employers caused Malloy to re-think some tax increases. "It was a more defensive approach this year, unfortunately, and we want to be more proactive next year instead of reactive," Stew- art said. "We are trying to get on offense." Subtle shifts The shift in lobbying strategy started when the CBIA took a notice- ably more standoffish posi- tion in February after Malloy revealed his initial budget proposals that included sev- eral business tax hikes. CBIA's change in tone came in Joe Brennan's first year as the pres- ident and CEO of the associa- tion. It also came in the midst of CBIA's 20X17 marketing cam- paign, which urged lawmakers to adopt policy that would help Connecticut be ranked among the top 20 states in the nation for economic competitiveness. The legislature responded by passing one of the largest tax hikes in state history. Prior to the CBIA's more hard-charging attitude this year, the business lobby used a more cordial, obliging tone with the governor and legisla- tive leaders, Albert said, which didn't necessarily get business' voice heard when it came time to dictating policy. "[Brennan] is being more aggressive about raising the voice of the business community in the legislative process," Albert said. State Sen. Minority Leader Len Fasano (R-North Haven) said the attitude change and joint chorus of boos from vari- ous trade groups and chambers got the business lobby a seat at the proverbial negotiating table. "In our building, we have a saying, 'If you are not at the table, you become the meal,'" Fasano said. However, because the hard-charging approach didn't come until the end of the ses- sion, not much could be done except for the small rollback in tax increases, Fasano said. Looking ahead To be proactive in 2016, the business groups decided to meet in September to develop a legislative agenda, which will include a list of what the various groups collectively want along with tactics and research on issues to strengthen their negotiating position with lawmakers, Albert said. The overall message will be econom- ic competitiveness, Brennan said. The details of that message will include many of the recommendations from the Con- necticut Institute for the 21st Century — an organization of government and busi- ness officials — including pension reform and shifting more social services onto lower-cost nonprofits. Even though the legislature won't pass a new state budget until 2017, Brennan said it is important the business lobby remains on top of the state's fiscal condition, since there is already a $900 million deficit projected for the current two-year budget and businesses don't want further tax increases. "Hopefully, we can get them to roll back taxes," Brennan said. By pushing for incremental improve- ments, especially during off-budget legisla- tive sessions, the business lobby wants to build a stronger fiscal foundation for the state, which will eliminate the need for the constantly shifting tax policy and other gov- ernment revenue grabs, Brennan said. "If we don't see greater growth in our economy, we are all going to be in trouble," Brennan said. The last time the chambers and various trade associations got together before a legislative session was near the end of the 2000s, said Oz Griebel, president and CEO of the MetroHartford Alliance. It makes for a much stronger message when these groups can compare thoughts beforehand and come up with a common set of goals, Griebel said. One surprise at the Sept. 21 meeting was the attendance of several nonprofits, Albert said. Nonprofits and the business lobby some- times are at odds during the legislative session as nonprofits urge lawmakers to maintain or increase social service funding while businesses push the state to restrain spending and reduce taxes. "But the nonprofits understand that if the business community suffers in any way, they tend to see that reflected in the amount of philanthropic donations they receive," Albert said. "Economic development and community development go hand-in-hand, and you really can't have one without the other." n Biz lobbyists to step up fight Joe Brennan, president and CEO, CBIA State Sen. Minority Leader Len Fasano (R-North Haven) Oz Griebel, president and CEO, MetroHartford Alliance Various business lobbying groups are planning to take a more aggressive approach with state senators (shown above) and representatives who champion anti-business policy. P H O T O | H B J F I L E CityPlace I towers over its shorter downtown neighbor, CityPlace II. P H O T O | H B J F I L E

• Cover