Hartford Business Journal

20 Hartford Business Journal • November 2, 2015 www.HartfordBusiness.com OPINION & COMMENTARY EDITORIAL Off-year elections still hold importance I t's difficult for many voters to get excited during an off-year election, when no major statewide offices are up for grabs. More attention is already being paid to next year's presidential race, which seems to dominate the airwaves on a nightly basis even though voters won't cast bal- lots for the U.S.'s next chief executive for another 365-plus days. Therefore, it won't be surprising to hear about dismal turnouts at election booths across the state Nov. 3. That will be unfortunate because municipal elections do matter, particularly to businesses, which fund large portions town and city budgets. Municipal elections, for example, provide the best opportunity for businesses to influence and potentially shape how local tax dollars are spent. That, of course, has a direct impact on property taxes, one of the biggest burdens businesses complain about. Municipal elections also give voters the ability to choose competent leadership, whose policies and management ability will, in many ways, shape the economic for- tunes of the community. Anyone who downplays the influence municipal leadership has on where companies or developers choose to do business fails to understand Con- necticut's business landscape. In an Oct. 19 Hartford Business Journal article ("West Hartford's latest building boom leads to new offices, apartments") developer Dan Matos, who is erecting a lux- ury hotel in West Hartford, said one of the town's most attractive attributes is stable leadership. "They're a town that's blessed with good governance,'' Matos, who is a West Hartford resident, told HBJ News Editor Gregory Seay. Its current mayor has served the longest in its history, Matos said, while its town manager is a long-time town employee and resident. In contrast, the recent collapse of the Dillon Stadium deal combined with news of significant cost overruns related to the Downtown North baseball stadium, has cast mistrust and doubt over Hartford's leadership. We don't endorse political candidates, but it's clear strong mayors, town managers or first selectman give developers and executives confidence that the investments they make in a community will rise in value or provide a return over time. This election season provides another opportunity to shape the business landscape in your city and town. Take advantage of the privilege and cast your votes Nov. 3. Pro-growth policies a positive step The Malloy administration wants to roll back some business tax hikes as part of its renegotiation of the state budget, which virtually fell out of balance as fast as it was passed into law last spring. It's welcome news to CT Inc., which has absorbed various tax increases under Gov. Malloy since he was sworn into office in 2011. The latest wave of tax hikes, $1.3 billion worth, sent Malloy's approval ratings into a tailspin, sending a clear message to the governor that his budget policies aren't favored by a majority of the electorate. Among the changes Malloy hopes to implement is restoring the 70 percent limit on R&D tax credits and tweaking some corporate taxes. Just as important as tax cuts, however, should be a focus on adopting a budget that provides Connecticut long-term fiscal stability. Any tax reductions will need corre- sponding spending cuts at a time when the budget is hundreds of millions of dollars in deficit. Malloy has proposed cutting the state workforce by 500 positions among other money-saving initiatives. We're glad the Democratic governor is refocusing on policies that grow the private sector. We hope he can garner bipartisan support to back some of these ideas. n OTHER VOICES Diversification, adaptability keys to business survival By Jeanette Ziegler T he economy of Connecticut, and indeed the country, has fundamentally changed since the economic recession of 2008. And every business needs to rethink how it operates if it is going to continue to thrive and expand. While some eco- nomic indicators show the economy has improved, with more jobs and more people back at work, income remains stagnant. The impact is evident in Connecticut's state budget, which relies heavily on income tax revenues that have never recovered to their pre-recession levels. In short, consumers have less disposable income to spend. And businesses need to be more creative in what they produce, and in how they market it. The Mohegan Tribe has a long history with change in the region. Though we have operated the Mohegan Sun resort for 20 years, Connecticut has been our home for more than 300, and in that time the Tribe has seen or played a role in countless shifts in political and economic power. One transformational change came in 1994, when the federal government recog- nized the Mohegan Tribe as a sovereign nation, and the Tribe gained the ability to influence our own economy on the Uncasville reservation. When we opened our world-class gaming site in 1996, the Tribe did so with the full real- ization that gaming could not be the Tribe's sole business. We knew then that to truly suc- ceed in providing for our Tribal members we needed multiple business interests. With Mohegan Sun's success, the Tribe began diversification efforts in 2003 with an aquaculture business, and a year later with an information technology company. For a variety of reasons those ventures were closed, but we learned a lot about non-gam- ing opportunities. In 2010, the Mohegan Tribe established a strategic initiative department. For the first time the Tribe committed a full-time profes- sional to build on our experience, identify potential business opportunities and bring them to the Tribe. We began to consider businesses already working with Mohegan Sun, to see if we could acquire or start a venture and capture a mar- gin that was not being paid to a third party. We considered a fish farm in Washington State, a fresh salmon company in Maine, a buffalo meat processor and a cigarette and candy distributor. We looked at hydroponics for tomatoes, vertical farming for herbs, and a pasta and lasagna manufacturer. We even considered a company that made plates and utensils from recycled materials, and another that produced movies. While we worked to find the right fit, we made smaller investments in companies that produced biometric identification, heating and cooling controls and artificial intelli- gence services. We even developed an elec- tronic scoring system for boxing and mixed martial arts that is now being used by boxing commissioners in the U.S. and Mexico. In 2012, we turned our attention to the franchise business, and through a lengthy process of investigating a number of com- panies, we became convinced that franchise food was the right market for the Tribe given our core business. Since 2013, we have entered agreements with Arooga's Grille House and Sports Bar Smashburger and Jersey Mike's Subs, and opened restaurants in Uncasville, Meriden and Waterford, with plans for more sites across the region in the coming years. And building on a popular gourmet-to-go concept, we joined with Pasta Vita in Old Saybrook with plans to expand to locations in Fairfield County and the Hartford area. But we've also remained committed to diversity in business, and invested in an office machine distributor and a company that cre- ates wood pellets for residential heating. It may be years before we see the kind of economic booms of the 1980s and '90s. And diversification takes time and commitment. Some ventures will be successful, while oth- ers will test resolve. The Mohegan Tribe has shown its resil- ience and adaptability for more than three centuries, and we will meet today's challenge to generate non-gaming jobs and economic growth. The alternative is to do nothing, and to let the market dictate our financial future, and that is unacceptable. n Jeanette Ziegler is the chief operating officer of Mohegan Holding Company. HARTFORDBUSINESS.COM POLL Where is the best location for a third CT casino? ● East Hartford ● Hartford ● East Windsor ● Bradley Airport To vote, go online to HartfordBusiness.com. Last week's poll results: Should CT subsidize a transatlantic flight out of Bradley Airport? 29.5% Yes 70.5% No Jeanette Ziegler Send Us Your Letters The Hartford Business Journal welcomes letters to the editor and guest commentaries for our opinion pages. Electronic submissions are preferred and welcome at: editor@ HartfordBusiness.com. Or you may fax submissions to Editor, Hartford Business Journal, at (860) 570-2493.

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