Hartford Business Journal

6 Hartford Business Journal • November 21, 2016 www.HartfordBusiness.com ECONOMIC DEVELOPMENT Transformation of XL Center on tap at Nov. 29 hearing A $250-million improvement plan for the XL Center goes before the public at a hearing scheduled for Nov. 29. The hearing, held by the Capital Region Development Authority, is set for 6 p.m. in Room 21 of the Connecticut Convention Center, 100 Columbus Blvd., Hartford. Originally opened as the Hartford Civic Center in 1975, the 16,500-seat arena is home to sporting events that include the UConn basketball and hockey teams and the Hartford Wolf Pack, as well as concerts, trade shows and community events. Michael Freimuth, executive director of the CRDA, has argued for the im- provements, which the state needs to approve in the next legislative session. A 2015 study by SCI Architects concluded that at least 100,000 square feet of additional space is necessary to bring the XL Center up to modern venue standards, improve circulation, meet certain ADA and building-code require- ments and enhance the fan experience. Sufficient space to meet these needs is available in the large atrium, unused retail space and a portion of the parking garage adjacent to the center, the study found. LAW Law firm with Hartford offices boosting first-year lawyers' pay Law firm McCarter & English plans to increase its starting salary for first-year lawyers in Hartford from $135,000 to $150,000. The increase, which applies to all nine offices in the Northeast and mid- Atlantic, becomes effective Jan. 1, 2017, the firm announced, and applies to associates who graduated law school in 2016. McCarter & English is based in Newark, N.J., with offices in Hartford, Boston, and other cities. Salaries for associates who graduated law school in 2015 will be $155,000. All other associates at the firm will continue to be considered for merit-based increases or bonuses. This past summer, HBJ reported on a lawyer pay-hike trend hitting Connecti- cut, as firms compete for talent. HEALTH CARE Cigna touts HQs as 'innovation lab for workforce health' Cigna's workplace health centers and programming are providing a full-scale approach to wellbeing and patient-centered design, the company says, and en- sure health in the workplace. "By completely renovating, re-equipping and relocating our on-site health center to its premier location at the main entrance, we're sending a message to our employees that health and wellness are front and center to Cigna's culture," says Cigna Director of Global Health and Wellness Jill Vaslow. The Bloomfield-based company provides employees telehealth options and coaching, virtual reality-guided meditation pods, fitness centers and jogging paths, as well as standard EKGs, biometric screenings and acute, episodic and primary-care services to its workers. The company's health-forward emphasis pays off in greater employee engage- ment, said Michele Paige, vice president and general manager of Cigna Onsite Health, Consumer Health Engagement at Cigna. For example, in 2015 nine out of 10 of Cigna's U.S. employees reported getting an annual checkup; with the new and improved clinic, Cigna is on track to improve that number for 2016. TELECOMMUNICATIONS Indiana retailer acquires Rocky Hill-based Wireless Zone An Indianapolis-based Verizon retailer has purchased the Rocky-Hill based Wireless Zone franchise of 357 stores for an undisclosed sum. The retailer, Round Room LLC, is the nation's largest Verizon authorized retailer. The agreement, whose terms were not disclosed, marks Round Room's first ac- quisition as it expands its footprint across 41 states. In the past year, Round Room has grown its store footprint 33 percent — from 776 to 1,160 locations. Headquartered in Rocky Hill, Wireless Zone is the largest independent Verizon Wireless franchise in the U.S. The company will continue operating under the Wireless Zone banner. BANKING & FINANCE Analysis: Metro Hartford banking complaints among highest in U.S. The metro Hartford area ranks 11th in the nation for the highest number of banking complaints over the past 12 months, according to NerdWallet, an online finance website. NerdWallet examined Consumer Financial Protection Bureau complaint data, comprising almost 64,200 complaints, from July 1, 2012, to Sept. 30, 2016. The analysis found that the opening, closing or management of accounts was the most widespread issue, representing 44.1 percent of all banking complaints during the four-year period. "In their complaints, which encompassed more than 400 financial institutions, consumers described banks that opened, blocked or closed accounts without notice or explanation; imposed high service fees on inactive accounts; provided misleading information about new accounts; added new charges without warn- ing; and failed to close existing accounts upon request," NerdWallet reports. The Hartford metro area had 11.31 complaints per 100,000 residents, compared to the national median of 3.82 complaints per 100,000 residents. GOVERNMENT & POLITICS Healthcare issues top $50M lobbying effort in 2015 The largest amount of money spent lobbying state lawmakers in 2015 was focused on healthcare issues, according to the Connecticut Office of State Eth- ics, which released a report Wednesday that showed businesses, hospitals and other special interests spent $50.1 million a year ago to influence legislation. In 2015, special interest groups spent $50.1 million to hire 949 registered cli- ent lobbyists, 574 in-house communicators and 182 individual communicators to lobby on their behalf. BY THE NUMBERS $1.3B Connecticut's latest projected fiscal 2018 deficit, which is being driven by higher pension and retiree healthcare costs. 28% The expected percentage increase in Connecticut's contribution to its teachers' pension fund next fiscal year, which will add $282 million in spending to the state budget, according to the CT Mirror. $150,000 The new starting salary for first-year Hartford lawyers working at law firm McCarter & English, up from $135,000 previously. 7 The number of Connecticut companies that made it onto Deloitte's 2016 Technology Fast 500 list, which recognizes U.S. technology firms with the fastest- growing revenues. TOP 5 MOST READ on HartfordBusiness.com ■ Hartford's Vito's by the Park leaving 20-year home ■ Historic West Hartford estate on auction block ■ State agency relocations to downtown Hartford under way ■ Judge: Trade groups can intervene in Total Wine lawsuit ■ Sneak peek today of Hartford's new $150M orthopedic institute 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 | H B J F I L E TOP STORY Budget woes intensify as government projections emerge Two state government reports put Connecticut's budget deficit as high as $1.3 billion, citing increased pen- sion and retiree healthcare costs as primary drivers. The Fiscal Accountability Report for fiscal 2017-2020, prepared by the state Office of Policy and Man- agement, projects a shortfall of $67.7 million in the fiscal 2017 Gen- eral Fund and a nearly $1.3 billion deficit for fiscal 2018, largely due to "fixed cost growth." The Office of Fiscal Analysis' re- port, which has the same title, mir- rors those findings, with a $77.7 million 2017 General Fund shortfall and a nearly $900 million shortfall from fixed cost obligations. Following a bond commission meeting last week, Gov. Dannel P. Malloy laid the blame for the shortfalls at the feet of past admin- istrations, which he said failed to adequately fund pensions and retir- ees' healthcare costs while increas- ing spending. He also said he doesn't antici- pate major tax hikes to address the shortfalls, though he did allude to possible "tax changes that could benefit the business climate." In an email, Sen. Len Fasano (R- North Haven), countered, "Our state is facing a death spiral, and we must start talking about fixing it today. Con- necticut cannot even keep up with its most basic everyday expenses."

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