Hartford Business Journal

6 Hartford Business Journal • February 6, 2017 www.HartfordBusiness.com TOP STORY Aetna weighing merger options, Hartford presence Aetna CEO and Chairman Mark Bertolini said last week the Hartford health insurer still is unsure what its next steps will be after the federal government recently blocked its $37 billion proposed merger with Humana. In a conference call with investors, Bertolini said the insurer will take the next two weeks — up until its Feb. 15 merger deadline — to decide whether or not it will continue to pursue the merger or give up on it. If it abandons the deal, Aetna must pay Humana a $1 billion breakup fee. A federal judge recently rejected the proposed merger saying it would sub- stantially lessen competition in the Medicare Advantage market. Meantime, the future of Aetna's Hartford presence remains uncertain. The Boston Business Journal recently reported that Aetna is exploring the pos- sibility of setting up an office of up to 150,000 square feet in Boston to house a group of workers from Connecticut, according to real estate sources. The company declined to comment on the report directly, but its presence in Hartford has been a concern for some time. "We remain headquartered in Hartford, and we're committed to our em- ployees here, who continue to be an important part of our future," said Aetna spokesman Matthew Clyburn. Bertolini has been an outspoken critic of Connecticut's business climate and has made no secret the insurer that employs around 6,000 in Hartford has been rethinking its real estate footprint. Aetna was likely going to relo- cate some jobs to Louisville, if the Humana deal was completed. BANKING & FINANCE Report: Financial services sector key to CT's economy Connecticut's economy relies on the financial services industry more than any other New England state, with the sector's employment making up 14.1 percent of the state's overall workforce. That's one of several conclusions reached in a new study of the six New Eng- land states released last week by the New England Council, the nation's oldest regional business association. Using largely 2015 and 2014 data, the study finds that 14.1 percent of all em- ployment in Connecticut was based in this sector in 2015. Meantime, wages from Connecticut workers in banking, insurance and asset-management jobs totaled $35.1 billion, representing 22 percent of all wages paid in the state in 2015. The industry also contributed to about 20 percent of the state's overall GDP. Connecticut also is the national leader in insurance for payroll and employ- ment. Six of the top 20 health and life insurers are located here, the report states. ECONOMY & LABOR Yard Goats ticket surcharge approved late in game Hartford city council last week approved a surcharge on Yard Goats baseball tick- ets that is expected to yield about $105,000 to help pay for Dunkin' Donuts Park. The 10 percent surcharge, however, is not retroactive so it does not cover any tickets sold before Jan. 30, according to the state statute that enabled it and a letter to the council from Mayor Luke Bronin. The state legislature gave the city permission to levy a 10 percent admission surcharge to help pay debt service on the bonds for Dunkin' Donuts Park. The season starts April 13 and runs through Aug. 31. NONPROFITS Arena-DeRosa announces sudden departure as Foodshare CEO James Arena-DeRosa, president and CEO of Bloomfield-based Foodshare, has resigned for personal reasons and is returning to Boston, according to a brief announcement put out last week by the nonprofit. Board Chairman Jack Hackendorn will serve as interim president and CEO as the organization pursues a search for Arena-DeRosa's replacement. No further information was provided about Arena-DeRosa's departure. In a statement, Foodshare, which works to end hunger in Hartford and Tolland counties, said its work will continue uninterrupted under the existing senior leadership team and that the organization remains financially strong. Johnson named CEO of Capital Workforce Partners The Capital Workforce Partners board of directors has appointed Alex B. Johnson president and CEO of the organization. Since last September, Johnson served as acting president and CEO before the formal appointment on Jan. 25. Capital Workforce Partners (CWP) is one of five regional workforce develop- ment boards in Connecticut, and represents the 37 towns and their consortium of chief elected officials that comprise the north central Connecticut region. Johnson, who lives in Windsor, will be responsible for leading regional efforts to engage businesses, public agencies, labor unions and community organiza- tions to help job seekers build skills for in-demand occupations. ECONOMIC DEVELOPMENT Developer seeks $6M in loans for Hartford apartment conversion A developer is seeking $6 million in state loans to convert three vacant build- ings in Hartford into apartments and retail space. Initially submitted to the Capital Region Development Authority (CRDA) as a bond request in early 2016, the deal includes properties to be renovated by developer Paul Khakshouri, who owns downtown Hartford's Homewood Suites hotel. Those buildings are at 103-5 and 109-21 Allyn St. The project is expected to result in 66 apartments and 3,750 square feet of retail space, according to the CRDA, which requested the funds Feb. 1 from the state Bond Commission. The Bond Commission approved the funding, but the money still must be allocated by the state Office of Policy and Management. The $10.9 million project is in design and could enter construction later this year. Bond Commision OKs $12M in loans to aid business expansions The state Bond Commission last week approved more than $12 million in loans to fund five business expansion and retention projects, with the combined potential to create hundreds of jobs. The Department of Economic and Community Development sought a loan of $4.5 million with no interest for 15 years and payment deferred after six years for EDAC Technologies Corp., which is looking to acquire equipment and machinery at its Cheshire plant. Other approved borrowings included: $3.6 million to help Clinflow Technolo- gies LLC with construction of a new facility on Washington Street in Hartford. The firm is relocating from New York City and creating 195 jobs in the next five years; $3 million to help Four Season Farm LLC build and outfit a hydroponic tomato farm in Suffield, creating 40 jobs within two years; and $500,000 for Cyient Inc. of East Hartford to assist with machinery and equipment for expan- sion, retaining 456 jobs and creating 85 new jobs within three years. BY THE NUMBERS 8.7% The percentage increase in Connecticut's single-family home sales in 2016, when 32,235 homes traded hands, according to The Warren Group. $35.1B The total wages earned in 2015 by Connecticut workers employed in the financial services sector, according to the New England Council. $215M The after-tax charge Hartford health insurer Aetna took in the fourth quarter as a result of restructuring costs, which included early retirements. 200 The number of new workers that will be employed by 3PL Worldwide as the Milford fulfillment vendor opens a 300,000-square-foot distribution center in Southington. TOP 5 MOST READ on HartfordBusiness.com ■ Aetna weighing merger options, Hartford presence ■ Southington fulfillment center to employ 200 ■ Proposed bill closing tax loophole could net CT $520M a year ■ Pratt, NASA investing in efficient jet engine project ■ Report: Financial services sector key to CT's economy 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 Aetna's downtown Hartford headquarters could move to Boston. A view of downtown Hartford's Allyn Street, where new apartments are being proposed. P H O T O | H B J F I L E P H O T O | C O N T R I B U T E D

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