Hartford Business Journal

6 Hartford Business Journal • October 26, 2015 www.HartfordBusiness.com TOP STORY CT backs Aer Lingus flight with $9M guarantee The state of Connecticut is providing Aer Lingus up to $9 million in revenue guarantees over two years, if the Irish airliner's newly announced flight from Bradley Airport to Dublin experiences revenue shortfalls, state officials said. Aer Lingus said last week it will start flights between Dublin and Bradley Inter- national Airport in Windsor Locks in September 2016. The state will provide up to $4.5 million during the flights first two years to offset revenue shortfalls, officials said. At the end of the first year, the state or the airline may also cancel the flight if ridership and revenues fall well below expectations, officials said. Service will be on a B757-200 aircraft. It has a maximum capacity of 239, depending on how the cabin is configured. The previous international service from Bradley to Amsterdam was operated by Northwest Airlines. The flight will include one evening departure from Bradley at 6:20 p.m. that arrives in Dublin at 5:20 a.m., and one afternoon departure from Dublin at 2:30 p.m. that arrives at Bradley at 4:40 p.m. Each flight will include 12 business class seats. ADVERTISING, MEDIA & MARKETING ESPN laying off 200 in CT, 300 companywide ESPN announced last week that it will lay off 300 employees, including 200 positions at its Bristol headquarters. The company did not divulge what depart- ments would be hit. In a memo to employees, ESPN President John Skipper said, "We will be en- acting a number of organizational changes at ESPN to better support our future goals — a process that will include the elimination of a number of positions." ESPN spokesman Mike Soltys said the sports broadcasting giant is in compli- ance with the terms of a $10 million incentive package the state provided when the company's Digital Center 2 opened 18 months ago. Those terms required spending $175 million and adding 200 jobs. Soltys said both goals were met before the center opened. Quinnipiac University journalism professor Rich Hanley said "ESPN is adjust- ing to the evolving structural realities of television that show the audience is leaking away toward cheaper, more selective alternatives to cable for the con- tent it wants to watch." AUTO Hoffman Auto expands by purchasing BMW franchise The Hoffman Auto Group has expanded into western Connecticut with the acquisition of BMW of Watertown. The new dealership will now be known as Hoffman BMW of Watertown. This will be Hoffman's first BMW franchise. It sells the luxury German brands of Audi and Porsche in other locations. Hoffman has dealerships in four Connecticut towns: East Hartford, West Simsbury, New London and Watertown. The company is comprised of 10 brands: Lexus, Audi, BMW, Porsche, Lincoln, Toyota, Honda, Nissan, Ford and Scion as well as a pre-owned vehicle dealership, Hoffman Used Car SuperStore. ECONOMY & LABOR CT lost 7,600 jobs in Sept.; unemployment rate falls Connecticut lost 7,600 jobs in September, the state's first jobs decline in five months, according to the state Department of Labor. Despite the job losses, however, Connecticut's unemployment rate fell to 5.2 percent, down from 5.3 percent a month earlier. A year prior, Connecticut's un- employment rate was 6.3 percent. Connecticut has added 27,000 jobs over the past year, DOL said. Connecticut has recovered 99,500 positions, or 83.6 percent, of the 119,000 jobs lost in the 2008-2010 Great Recession. SPORTS & ENTERTAINMENT Pro football league, again, eyes Hartford team Are you ready to invest in some football? Hartford, once again, is being discussed as a possible location for a professional football team. The United States Football League's CEO has indicated Hartford would be a desirable location for the nascent league but only if financing can be raised. "The type of cities we are interested in are those with a strong sense of com- munity, a deep appreciation of sports, and a forward-thinking business atmo- sphere," said Jim Bailey, CEO of the USFL, in a statement. "We believe markets such as Albuquerque, Hartford or Louisville can develop into football havens, much like Green Bay or Canton." Bailey added that the USFL would not identify team markets until all funding is in place. The league said it is seeking communities and investors that share the passion of the USFL to provide quality sports entertainment. He said second-phase financing now being raised calls for approximately $5 million in addition to the capital that has already been invested. The league is hoping to raise $500 million. A league spokesperson said no kick-off deadline has been set. No games will be played until the funds are raised. Pro football has been tried and failed before in Hartford, most recently in 2010 when the Hartford Colonials of the UFL folded after one season. ENERGY & UTILITIES Most third-party electric providers overcharged consumers The state Office of Consumer Counsel says consumers are paying inflated prices for the delivery of electricity. Collectively they paid $10 million more than the standard rate. Data provided to the Public Utilities Regulatory Authority shows 86 percent of Eversource customers and 77 percent of United Illuminating (UI) customers paid more than the standard service rate in August if they used a retail electric supplier, with some customers paying prices as high as 23.7 cents per kilowatt hour. Consumer Counsel Elin Swanson Katz identified 12 providers charging more than 20 percent of their customers 13.9 cents per kilowatt hour, which is 50 percent more than the CL&P standard rate. GOVERNMENT, POLITICS & LAW Audit commission to launch investigation of Dillon deal Hartford's three-member Internal Audit Commission voted last week to pro- ceed with an investigation of the now scuttled Dillon Stadium deal. IAC Com- missioner Bruce Rubenstein was openly critical during the meeting of the city's handling of the deal, and said the problems likely wouldn't have occurred if the city had listened to the IAC's 2013 recommendation to hire a professional asset manager to vet financing documents. The city has alleged that it was overbilled by Black Diamond Consulting Group for work related to the Colt Park soccer stadium — which Black Diamond wanted to overhaul in the hopes of getting a team into the North American Soc- cer League (NASL), where the New York Cosmos play. Malloy calls for bipartisan budget talks In a news conference where he didn't mince words, Gov. Dannel P. Malloy last week criticized legislative leaders on both sides of the aisle for not coming up with realistic alternatives to budget cuts he has made. "I'm calling their bluff. I'm expecting them to put something on the table," he said calling for bipartisan meetings on the state budget. The meetings could lead to a special session on the budget later this year, Malloy said. Malloy's announcement was prompted by new revenue projections from the Office of Policy and Management — sent to Comptroller Kevin Lembo — iden- tifying an approximately $120 million revenue shortfall. NONPROFITS CT business charitable giving steady in last 5 years About 96 percent of Connecticut businesses have maintained or increased their charitable levels over the past five years, according to the 2015 Connecti- cut Corporate Giving Survey, produced by the Connecticut Business & Industry Association and Liberty Bank. The survey found that 56 percent of businesses have maintained a steady level of giving while 40 percent said they increased it. The survey also deter- mined 22 percent of Connecticut employers provide incentives to do charitable work in the community. About one in 16 employees are mandated to do com- munity service as part of their employment. BY THE NUMBERS 13,285 The net number of residents Connecticut lost in 2014, representing 0.37 percent of the state's overall population, according to U.S. Census Bureau estimates. 10.28% The overall state, federal and international tax rate of Fairfield conglomerate General Electric, according to a new study by WalletHub. 2,400 The number of September jobs added in Connecticut's leisure and hospitality sector, which outpaced job gains in all other industries. $218,000 The median sales price for a Greater Hartford home sold in September, according to the Greater Hartford Association of Realtors. TOP 5 MOST READ on HartfordBusiness.com ■ CT developer Simon Konover, 93, dies ■ Hartford Dev. Dir. Deller quits amid collapsed stadium deal ■ Most third-party electric providers found to overcharge consumers ■ Pro football league, again, eyes Hartford team ■ Report: Aer Lingus coming to Bradley 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 Aer Lingus will fly next year from Bradley to Dublin. P H O T O | C O N T R I B U T E D

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