Hartford Business Journal

6 Hartford Business Journal • January 18, 2016 www.HartfordBusiness.com TOP STORY GE confirms corporate HQ move to Boston General Electric's announcement last week that it will leave Fairfield and move its corporate headquarters to Boston will have a major impact in Con- necticut as the state losses potentially thousands of jobs. GE said it plans to have 800 employees in Boston by 2018. The head- quarters will be located in Boston's Seaport District. GE said it will also sell its Fairfield offices. Massachusetts and Boston combined are offering grants and incentives up to $145 million for the move. GE said in a statement it has been considering the composition and lo- cation of its headquarters for more than three years. The company began its formal review in June 2015, with a list of 40 potential locations. At the time, its CEO said Connecticut's state finances were the major reason for the move. Boston was selected after a careful evaluation of the business eco- system, talent, long-term costs, quality of life for employees, connections with the world and proximity to other important company assets. GE spokesman Seth Watson said 200 corporate headquarter jobs will move to Boston. He said other positions will transfer to a GE location in Norwalk. David Cadden, a Quinnipiac University business professor, said he was surprised GE is moving to Boston because incentives for a move to New York City or Westchester County would have met top executives wouldn't have had to relocate. On the other hand, the professor said, "Massachusetts may reflect a shift in emphasis by Jeff Immelt, CEO of GE. He's emphasizing manufacturing and advanced technology for the future growth of GE." As Cadden observed, Massachusetts was recently ranked the top state for innovation by Bloom- berg. He also said the Boston area is home to a number of top universities and colleges, which will boost recruitment efforts. SPORTS & OUTDOORS Stadium delays force Yard Goats to start season on road No matter the pace of construction over the next few months, the lights at Hart- ford's minor league baseball stadium won't be turned on come opening day on April 7. The Yard Goats said last week the team will play its first 17 home games at opposing teams' venues through at least May 8. The announcement came one week after a contentious meeting of the Hartford Stadium Authority re- garding a potential $10 million cost overrun and construction delays to the team's new downtown Hartford stadium. Team owner Joshua Solomon and Eastern League President Joe McEacharn criticized stadium developer Cen- terplan Cos. for its past assurances that the park would be ready for April 7, despite design changes. Centerplan defended itself, arguing that it had been transparent about project milestones and unexpectedly higher materials costs. The Yard Goats said they would still play a full 142-game schedule, which kicks off in three months in Richmond, Va. Rangers extend Wolf Pack agreement The New York Rangers extended their contract with Spectra by Comcast Spectacor to keep the minor league hockey Hartford Wolf Pack playing at Hart- ford's XL Center through the 2016-17 season. Terms of the deal were not disclosed. The Wolf Pack franchise, which is the Rangers' American Hockey League affiliate, is currently in its 19th year of operation. That is the second-longest current continuous affiliation between an NHL club and a single AHL market in the league, surpassed only by the 24 season partnership between the Boston Bruins and Providence, R.I. The Wolf Pack won one league title, the 2000 Calder Cup, during its history. ENERGY & UTILITIES Record-breaking fuel cell park approved A proposed Beacon Falls fuel cell park, which would be the world's largest, took a big step forward recently as it received the blessing of the Connecticut Siting Council. Though the council expressed reservations over the 63.3-megawatt parks' projected carbon-dioxide emissions (265,000 tons per year), it ruled that the park fits with the state's renewable-energy goals and would not have a substan- tial adverse environmental impact. The park would contain fuel cells made by Danbury's FuelCell Energy. There would be 21 total units split among two different models, one with a higher efficiency rating. The developer, O&G Industries subsidiary Beacon Falls Energy Park LLC of Middletown, still needs to get air permits from the state Department of Energy and Environmental Protection. Eversource, UI get low customer-service rankings A new report shows United Illuminating and Eversource Energy ranking next to last in their respective segments for customer service among Eastern U.S. energy providers. They are ranked fifth and sixth lowest respectively among large and mid-sized energy providers nationally. United Illuminating has a score of 651 points out of a possible 1,000, accord- ing to the J.D. Power 2016 Electric Utility Business Customer Satisfaction Study. Eversource Energy scores 655 points in the study. The national average score is 704 in 2016. The study, now in its 17th year, measures satisfaction among business customers of 102 targeted U.S. electric utilities, each of which serves more than 25,000 business customers. Overall satisfaction is examined across six factors (listed in order of importance): power quality and reliability; corporate citizenship; price; billing and payment; com- munications; and customer service. GOVERNMENT, POLITICS & LAW State overtime could hit $238M; reforms sought State overtime spending has reached $119 million through the first half of the fiscal year, according to data released by the General Assembly's Office of Fiscal Analysis. That number is projected to grow to $238 million by June 30, according to the Connecticut Business and Industry Association. The Department of Correction is responsible for $37.6 million in overtime, which represents 31.6 percent of overtime spending. The Department of Mental Health and Addiction Services (DMHAS) is next at $26.2 million, or 22 percent. In a blog post on the CBIA website, its chief economist Peter Gioia wrote that overtime numbers should be "setting off alarm bells throughout the [State] Capitol." Gioia said in his post each DMHAS employee using overtime could build up $21,738 in overtime earnings on top of their regular pay. The CBIA, Gioia said in his post, has advocated reforming the state pension system by, among other things, not counting overtime pay as wages in the last three years prior to retire- ment — the years on which pension calculations are based. NONPROFITS CT's largest nonprofit advocacy group formed by merger The Connecticut Association of Nonprofits and the Connecticut Community Providers Association have agreed to a merger, creating a new 600-member association called Connecticut Community Nonprofit Alliance. The merger, under consideration for years, creates the largest advocacy or- ganization for nonprofits in Connecticut and is effective Feb. 1. The mission of the new organization, according to a statement, will be to advocate and build capacity for community-based nonprofits that advocate for and provide human services, health care, arts and culture, housing, recreation, education, and anti- poverty programs. The combined membership employs more than 100,000 individuals, and spends about $3 billion each year. MANUFACTURING Colt completes financial restructuring Colt Defense said last week it has completed its financial restructuring and emerged from its Chapter 11 bankruptcy. The West Hartford company concluded its restructuring after completing all required actions and satisfying all remaining closing conditions included in its court-approved reorganization plan. Under the plan, Colt said it has restructured and reduced its debt by $200 million, improved its capital structure, and enhanced its liquidity profile. It also raised $50 mil - lion of new capital in the restructuring process. In addition, the company said it has executed a long-term lease for its West Hart- ford headquarters and signed an agreement with the United Auto Workers union that represents its employees. BY THE NUMBERS $145M The total value of the incentives Boston and Massachusetts are offering General Electric to move its corporate headquarters from Fairfield to Boston. 17 The number of home games the Hartford Yard Goats will forgo this season as a result of its new Hartford baseball stadium not being ready for the start of play in April. 2,210 The number of Connecticut single-family home sales in November, which was up 16.4 percent from a year earlier. $5,000 The amount of annual scholarships UConn is pledging to all Hartford public school graduates who enroll in the school as participants in the Hartford Promise program. TOP 5 MOST READ on HartfordBusiness.com ■ Report: GE will move corporate HQ to Boston ■ United launches non-stop BDL to Denver flight ■ Stadium delays force Yard Goats to start season on road ■ RBS advises: sell everything! 2016 will be a 'cataclysmic year' ■ Record-breaking fuel cell park approved 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, CT Health Care Weekly www.HartfordBusiness.com/subscribe WEEK IN REVIEW P H O T O | C O N T R I B U T E D GE CEO Jeff Immelt is moving his company to Boston's technology hub.

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