Hartford Business Journal

8 Hartford Business Journal • March 28, 2016 www.HartfordBusiness.com OPINION & COMMENTARY EDITORIAL Let Hartford keep admissions tax revenues A proposal has resurfaced at the General Assembly that would divert to the city of Hartford state admissions tax revenues generated by Dunkin' Donuts Park. The city would use those funds to help pay down the debt incurred for build- ing the minor-league baseball stadium, which is set to debut May 31. Opposition to the proposal, which was pitched last year but failed to gain traction, has come from residents around the state, Republican legislators and others. We under- stand how the diversion of any state revenues to support athletic teams/stadiums might be offensive to the public, particularly as funding for many state programs is likely to be axed in the weeks ahead. However, we support this proposal and think Hartford should receive the revenues generated by its own development. While we've been opposed to, or skeptical of, many state subsidies to private enter- prises, this measure doesn't quite fit that bill. The admissions tax revenues — spawned by a 10 percent tax on tickets — will be generated by the stadium itself; the city is simply asking to keep that money instead of sending it to the state. Last year it was estimated Hartford could receive around $426,000 annually from the admissions tax to offset the cost of constructing the stadium, which will force the city to make millions of dollars in annual debt-service payments. Those extra funds will help shield Hartford taxpayers, particularly businesses, which already shoulder the highest tax burden in Connecticut and could face even higher costs as the city deals with its own structural budget deficits. Additionally, the XL Center and Webster Arena in Bridgeport are already exempt from the state admissions tax, so there is precedent in creating some leeway. There is no sound logic behind the current inequity in the law; all sports venues should be treated the same. Therefore, we also think the city of New Britain should be allowed to keep admis- sions tax revenues from its minor-league stadium, which will be hosting the New Britain Bees this summer. Frankly, a better model would be for the state to eliminate the admissions tax alto- gether and give municipalities the ability to levy it, particularly if the state didn't help fund the venue's development. It would be an easier way for cities in particular to get more revenue without having to increase property taxes. In written testimony, Republican Sen. Minority Leader Len Fasano opposed the bill, arguing promises were made that the state wouldn't help pay for the Hartford baseball stadium. He said diverting the admissions tax revenue would break that promise. But that's not entirely true. Hartford is not asking for the state for a bond allocation to help underwrite the stadium's construction costs. Indeed, even when the project went over budget by $10 million, Mayor Luke Bronin agreed to have city taxpayers — not the state — shoulder about a third of that cost overrun. The team and stadium developer shouldered the rest of the burden, and rightfully so. Opening Day is around the corner and there is still as much uncertainty and angst surrounding the stadium as there was a year ago. The Yard Goats' (formerly the New Britain Rock Cats) move to Hartford from the Hardware City was controversial and rubbed many people the wrong way. The fact that the team's stadium will likely add to the city's deficit for at least the next few years is unconscionable in many ways. But the stadium is here to stay, and will add a new sense of vibrancy to downtown. We should all hope it succeeds because if it doesn't, admissions tax revenues will be the least of Hartford's concerns. n OTHER VOICES Collaboration key to solving community problems By Ted Carroll O ur democracy is in trouble. We know that there are times in our local communities, and increasing examples at the national level, when gridlock sets in. As is painfully obvi- ous in our national presidential campaigns, we do not always appreciate, respect or even listen to another's perspec- tive. We seem more interested in proving that our positions are right than in find- ing mutually agree- able solutions to our problems. We seem to forget how essential it is to find common ground. Long after elections are settled, we are still engaged in what has been termed "hyper-partisanship." So what can we do to change this? How do we engage in respectful, inclusive and col- laborative conversations, at least at the local level? For the past 40 years Leadership Great- er Hartford (LGH) has been at the helm of bringing people together from different parts of the community, to foster their leader- ship skills, and help them apply those skills to tackle these tough civic and civil challenges. There is a grow- ing understanding, among our 6,000 pro- gram graduates and other leaders of area business, govern- ment and nonprofit organizations, that Greater Hartford is ONE region. We rise and fall together. And the better we are at recognizing our shared interests and in forging common solutions, the stronger we become. In recent years, the region has seen count- less examples of effective collaboration. With- in the past several years alone, LGH has col- laborated with the Hartford Police Department to hold tough conversations about community policing — involving citizens in discussions with police officials to build the awareness and mutual trust needed to create construc- tive partnerships and to avoid the social unrest experienced in other communities. When the city was entertaining a proposal to build a baseball stadium two years ago, LGH mediated a forum that allowed disparate voices to listen to each other to ensure that the public investment was affordable and would spur greater economic development benefits to Hartford's downtown north neighborhood. LGH is proud of our partnership with hun- dreds of Hartford stakeholders who were engaged six years ago to create "One City/One Plan," a guide still used to advance the city's top priorities. When the Hartford Public Schools initiated school governance councils to bring together parents, teachers, community mem- bers and school principals to help them share essential decision-making for their schools, LGH was asked to provide the support and training to help these councils work together effectively, a role we continue to play. And right now LGH is front and center in partnering on an unprecedented civic initia- tive, Hartford Decide$, where thousands of city residents, 14 years and older, are making decisions about how to spend $1.25 million on community development projects they have determined will improve life in their city. The net result of these and other collab- orative efforts is that our communities are healthier and more inclusive. As a con- sequence of engag- ing multiple parties, we're making better decisions in our pub- lic safety, education and overall planning efforts — and those decisions are get- ting broader support. Mutual trust, respect and understanding — essential ingredients for any democracy — are on the rise. Unlike the many physical changes being made along our riverfront or to our skyline, however, improvements to the civic culture may not be readily visible to the eye. Still, they con- tribute mightily to the ability of our com- munities to solve problems and to chart a future course that reflects the best think- ing and interests of all. n Ted Carroll is the president of Leadership Greater Hartford. HARTFORDBUSINESS.COM POLL Should municipalities or the state receive event admissions tax revenues? ● State ● Municipalities ● Neither — Eliminate the tax To vote, go online to HartfordBusiness.com. Last week's poll results: Should Hartford ask the city's largest nonprofits for PILOT contributions? 56.7% Yes 43.3% No Ted Carroll ▶ ▶ … Greater Hartford is ONE region. We rise and fall together. And the better we are at recognizing our shared interests and in forging common solutions, the stronger we become. 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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