Hartford Business Journal

6 Hartford Business Journal • February 20, 2017 www.HartfordBusiness.com TOP STORY Health insurer mega-mergers sidelined It was a wild week for two major health insurance mergers involving Con- necticut companies. First, Hartford health insurer Aetna announced that it was abandoning its proposed $37 billion merger with Humana, after the federal government re- cently blocked the deal citing antitrust concerns. As a result, Aetna, which spent nearly two years trying to orchestrate the deal, will pay Kentucky-based Humana a $1 billion breakup fee. Then, Bloomfield-based Cigna and Anthem filed two different lawsuits against each other, after Cigna tried to back out of their $54 billion merger, which was also blocked by the Justice Department. Cigna sued Anthem Feb. 14, claiming Anthem breached the merger agree- ment, which included an obligation to pay a breakup fee of $1.85 billion. Cigna is also seeking $13 billion in damages. Then, a day later, Anthem sued Cigna saying the insurer has waged a cam- paign to sabotage the deal and that Anthem won't accept the breakup. "There is still sufficient time and a viable path forward potentially to complete the transaction," Anthem said. BY THE NUMBERS 200 The number of employees United Bank is moving to downtown Hartford, where the bank will consolidate its headquarters. $24M The anticipated budget cut the Connecticut State Colleges and Universities system will face next year, which has forced a hiring freeze. 300 The number of jobs the Hartford Yard Goats baseball team has available for this season. More than 700 people applied for the positions. 3,752 The number of foreclosures completed in Connecticut in December, down 25 percent from 4,974 foreclosures in the year-ago period. TOP 5 MOST READ on HartfordBusiness.com ■ Webster Bank sues ex-ballpark developer, others for nearly $6M ■ Gun advocates criticize Malloy gun fee plan ■ United Bank moving 200 to downtown Hartford ■ Developer calls for tax hike on third casino to fund XL Center ■ Aetna abandons $37B merger bid 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 EDUCATION CT college system implements hiring freeze The Connecticut State Colleges and Universities (CSCU) system has imple- mented a hiring freeze across all 17 campuses amid the state's budget woes, officials announced. CSCU President Mark E. Ojakian said that the spending controls are necessary because CSCU is projected to face a $25 million budget cut for the next fiscal year. "We must be strategic given our limited resources," Ojakian said. In his first year on the job in 2016, Ojakian canceled raises for about 300 managers to address budget challenges. He also chose not to refill positions, offered unpaid leave and avoided layoffs. ECONOMIC DEVELOPMENT & CONSTRUCTION Developer calls for tax hike on third casino to fund XL Center, other projects Developer Anthony W. Ravosa Jr., who made an unsuccessful bid to rede- velop East Hartford's Showcase Cinemas into the state's third casino site, is urging the General Assembly to increase the gaming tax for any new casino authorized in the state and to use the proceeds to fund such major projects as the $250 million XL Center renovations. Ravosa Jr., head of Silver Lane Partners, is still trying to lobby for East Hart- ford to be considered as a third casino site, even though Mohegan Sun and Foxwoods, operating together as MMCT Venture, have already selected sites in East Windsor and Windsor Locks as finalists. Ravosa Jr. said the state should assess a 35 percent tax on the slots of a Hartford area casino, 10 percent higher than what the Mashantucket and Mohegan tribes currently pay to the state for operating their respective casinos. The plan also recom- mends a 15 percent tax on table games, which is lower than comparable rates in Massachusetts, Rhode Island, Maryland and Pennsylvania, Ravosa says. $6.9M in brownfield grants aid Hartford, others municipalities A small Hartford brownfield parcel is among 14 Connecticut sites being awarded state grants totaling $6.9 million for remediation. Hartford will get $605,000 to remediate a 0.4 acre site at 175 Mather St. that will be developed as a secured-parking facility supporting 220 units of housing. That and other projects comprise 424 acres of redevelopment as part of Gov. Dannel P. Malloy's ongoing efforts to restore and put blighted properties back into productive use and foster economic growth. About $5.6 million is being awarded for the remediation and redevelopment of five properties, totaling 32 acres. An additional $1.3 million is being awarded for assessments that will be completed toward the future revitalization of eight properties, covering a total of 392 acres. BANKING & FINANCE United Bank moving 200 to downtown Hartford United Bank, a community lender based in Glastonbury, is relocating its head- quarters and some 200 workers to downtown Hartford's Goodwin Square office tower before yearend, officials say. Administrative staff for United and its parent, United Financial Bancorp Inc., including CEO William H.W. (Bill) Crawford IV and his aides, the bank announced last week, will begin the move in late spring or early summer from space at 45 Glastonbury Blvd. and 95 Glastonbury Blvd. — a combined 46,000 square feet — into about 68,000 square feet of leased offices at Goodwin Square, 225 Asylum St. Also, United says it plans to open a downtown branch, but did not say exactly where. United, active in mortgage, consumer and commercial lending, said the im- pending move to four upper floors at Goodwin Square will allow the bank to con- solidate various offices, generating more efficiency and cost savings. In addition, relocating to the city center, officials said, will allow the bank's commercial-bank- ing and lending teams greater access to existing and potential customers. Webster Bank sues ex-ballpark developer, others for nearly $6M Waterbury-based Webster Bank is suing Centerplan Construction Co., the former builder of Dunkin' Donuts Park, for allegedly partially defaulting on three separate loans totaling more than $10.2 million. According to the affidavit accompanying the complaint filed in Superior Court, Middletown-based Centerplan owes more than $3.3 million on its $4.2 million term loan; more than $499,600 on its $2 million construction loan; and more than $2.1 million on a $4 million revolving loan associated with work at the ballpark. In total, the bank says it is owed about $5.7 million. The lawsuit also cites CC Haddam LLC and Centerplan CEO Robert Landino. Webster Bank is seeking money damages, legal fees, interest and other rem- edies the court may deem appropriate. On June 6, the city of Hartford fired Centerplan, saying it had lost confidence in the company's capacity to finish the ballpark in time for the 2016 baseball season. 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