Hartford Business Journal

6 Hartford Business Journal • March 27, 2017 www.HartfordBusiness.com TOP STORY Mohegan Sun expanding with $80M convention center Mohegan Sun is planning to open a new, $80 million conference center next summer to cater to convention and meeting business. The Expo Center expansion has been authorized and is slated to open in the summer of 2018 — "just in time for the Barrett-Jackson Northeast 2018" car collector auction, leaders of the Mohegan Sun and the Mohegan tribe said in an announcement. The Mohegan tribe unveiled the expansion at a press conference last week. The total size of the expansion, including the 131,000-square-foot Expo Center, will be 240,000 gross square feet, Mohegan Sun said. The convention center will be located in a vacant area next to the casino's Winter Garage and link to the garage and the Earth casino and tower, a spokesman said. HEALTH CARE Clock ticking on Hartford HealthCare, UnitedHealthcare contract negotiations Hartford HealthCare posted a letter to patients on its website last week in- forming those with coverage from UnitedHealthcare and its subsidiary, Oxford Health Plans, that they could face higher out-of-pocket expenses if the parties can't come to terms on a new contract. The current deal expires April 15, which is when Hartford HealthCare's hos- pitals and ancillary facilities, physicians and medical professionals would be considered out of UnitedHealthcare's provider network. Both sides are haggling over rates and other issues. "We have been working for months with United/Oxford and are disappointed that we have not yet been able to reach an agreement," Hartford HealthCare said in a website post. "We are asking United/Oxford for rates that bring them closer to market levels and more in line with our other insurance partners." In an emailed statement, UnitedHealthcare said, "Our two organizations con- tinue to meet regularly and our focus remains on renewing our relationship with Hartford HealthCare." ECONOMY & LABOR Hartford relies on short-term debt to get through Oct. Hartford is issuing $20 million worth of short-term debt in light of weak bud- getary performance and deteriorating reserves and liquidity, according to S&P Global Ratings. The so-called tax anticipation notes (TANs), which use anticipated tax revenues that will start rolling in on July 1 as collateral, received S&P's highest short-term debt rating of "SP-1." That rating reflects the agency's view that Hartford's econo- my is adequate although management and budgetary conditions are weak. "The … rating reflects our view of the city's strong capacity to pay the short- term notes at the bonds' maturity," S&P Global's report states. S&P also affirmed its "BBB" long-term rating on the city's existing general ob- ligation (GO) debt, which totals approximately $770 million, and its "BBB-" long- term rating on lease revenue bonds issued by the Hartford Stadium Authority for Dunkin' Donuts Park. S&P's outlook on the city's GO debt is negative. "The negative outlook reflects the city's narrowing liquidity and the uncer- tainty regarding the timeframe of when it can return to structural balance," S&P Global credit analyst Victor Medeiros said. "The long-term rating reflects the city's ongoing structural imbalance and weak budgetary flexibility." More unemployed seek work as CT loses 1,600 jobs in Feb. Connecticut lost 1,600 net jobs in February, while the jobless rate ticked up for the second time this year, to 4.7 percent, the latest state labor survey shows. Despite this news, January's originally-released job gain of 5,700 was re- vised upward to a 6,500 gain, the state Labor Department (CTDOL) said, citing U.S. Bureau of Labor Statistics data. The state's nonfarm employment stood at 1,682,400 in February, CTDOL said. In addition, the number of Connecticut residents who were unemployed in February increased by 4,500, seasonally adjusted. The unemployment rate had been 4.5 percent in January. Now, at 4.7 per- cent, it is eight-tenths of a point lower than it was a year ago. While the unemployment rate moved up, the labor force also grew, indicating potential workers see opportunity in a low unemployment rate environment, said Andy Condon, director of the Office of Research. The job decline in February may be attributable to "very poor weather" during the week the labor survey was conducted, Condon added. Survey: CT biz willing to hire formerly imprisoned Ninety-seven percent of more than 300 Connecticut employers surveyed by the Malta Justice Initiative support the idea of giving formerly incarcerated indi- viduals a second chance, the organization reports. What's more, of the 55 percent of employers who said they have difficulty in finding qualified candidates to fill jobs, most of those — 76 percent — said they would consider hiring a person with a criminal record if that individual was qualified for the job. The survey of 311 employers, conducted by Harris Poll for Malta between June and October of 2016, also found that 95 percent of respondents agreed that hiring a previously incarcerated individual has the potential to turn that person into a productive member of society. 17 in CT make Forbes' top billionaires list Seventeen Connecticut billionaires populate Forbes' 31st Annual World Bil- lionaires List, which includes 2,043 individuals earning in the 10 figures, the magazine announced. In Connecticut, Ray Dalio, the founder, chairman and chief investment officer of Westport hedge fund Bridgewater Associates, is worth the most, with a net worth of $16.8 billion. Second on Connecticut's list is Steven Cohen, founder of Point72 Asset Man- agement and S.A.C. Capital Advisors, both based in Stamford. A Greenwich resi- dent, he is ranked 92nd globally with a net worth of $13 billion. Coming in at 17th on the Connecticut list and 1,940th on the global list is William Macaulay of Greenwich, with a net worth of $1 billion. He is CEO and chairman of First Reserve Corp., a private equity fund specializing in energy. All told, 12 of the 17 Connecticut billionaires live in Greenwich. Others reside in Branford, Darien, Danbury, Old Lyme and Southport. State worker union launches TV ad to fight layoffs Two days after Gov. Dannel P. Malloy threatened to lay off 4,200 unionized state workers unless concessions are granted, Connecticut's largest healthcare workers union launched a television ad urging viewers to keep its members on the job. The 30-second spot, funded by 1199 New England SEIU, also comes five months after the union went to court to block nearly 500 layoffs tied to an ad- ministration plan to privatize 40 group homes for the disabled. The ad, which opens on the empty halls of a state building, shifts to scenes of workers assisting a disabled child and an addiction recovery patient. "It's state workers that make these buildings homes for the disabled, a safe haven for children, recovery centers in an opioid crisis," the commercial narra- tor states. "Because state workers have dedicated their lives to a simple-yet- powerful philosophy: to help others." – Keith Phaneuf | CT Mirror BANKING & FINANCE CT's Savings Institute shedding trust division Windham's Savings Institute Bank & Trust is selling its trust and asset-man- agement division to a pair of Massachusetts banks. Savings Institute, headquartered in the town's Willimantic section, said Pli- moth Investment Advisors inked a definitive pact to acquire the division, created in 1990, which has about 300 customers and an estimated $120 million in assets under management. Financial terms and a transaction closing date weren't disclosed. Savings Institute Bank & Trust is a unit of SI Financial, a bank holding com- pany with $1.55 billion in assets. Based in Plymouth, Mass., Plimoth serves about 450 clients in southeastern Massachusetts and manages about $600 million in assets. Its joint owners are BayCoast Bank and Dedham Institution for Savings. As part of the transaction, Plimoth said it will open a Connecticut office in Stonington, initially staffed with veteran Savings Institute trust associates Te- resa Prue and Nicole (Hallisey) Dagle. BY THE NUMBERS 97% The percentage of the 311 Connecticut employers recently surveyed by the Malta Justice Initiative who said they support the idea of giving formerly incarcerated individuals a second chance. 17 The number of Connecticut residents who made it onto Forbes' Annual World Billionaires List. $80M The amount of money Mohegan Sun is investing to build a new convention center $39.27 The average hourly total compensation costs per employee in New England, which includes salary and benefits, according to the U.S. Bureau of Labor Statistics. TOP 5 MOST READ on HartfordBusiness.com ■ Mohegan Sun expanding with $80M convention center ■ Nix's Hartford faces new legal pressure for unpaid rent ■ 17 in CT make Forbes' top billionaires list ■ UTC creating 250 jobs with $300M N.Y. digital hub ■ N. England worker compensation costs second highest in U.S. 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 A rendering of Mohegan Sun's planned convention center. P H O T O | C O N T R I B U T E D

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