Hartford Business Journal

6 Hartford Business Journal • June 26, 2017 www.HartfordBusiness.com TOP STORY Fla. gov. makes pitch to CT companies Florida Gov. Rick Scott's visit to Connecticut last week and his attempts to woo companies to the Sunshine State had more to do with this state's heavy regulations, taxation and overhead than the low-interest loans and other incentives Florida offers, Scott said. "A lot of businesses up here are frustrated,'' Scott said last week after a day spent crisscrossing Fairfield County, meeting with Connecticut entrepre- neurs, business leaders and policymakers. "They're tired of wrestling with taxes and heavy regulations.'' The loss of General Electric's corporate headquarters from Fairfield to Boston and Hartford insurance giant Aetna Inc.'s rumblings about moving its base to New York City has heightened tensions over Connecticut's econom- ic-development model to attract and retain well-paid, private-sector jobs. Scott, a Republican who won the governorship in Nov. 2010 — the same year as Democratic Gov. Dannel P. Malloy's first term — said that since he took office, Florida's economy has risen while Connecticut's has flatlined. Joe Brennan, CEO of the Connecticut Business and Industry Association, said he saw nothing wrong with Scott's business-recruiting mission to Connecticut. "It's not unusual that our companies get recruited all the time — and they stay here,'' Brennan said, adding that it is the quality of firms in Connecticut and their products that makes them so attractive. Still, recruiting visits to Connecticut from economic-development officials from other states "highlights the intense competitive pressure on Connecti- cut'' to right its fiscal ship and implement policies more conducive to busi- ness interests at home, Brennan said. REAL ESTATE Hartford's 101-111 Pearl office buildings sold Two of downtown Hartford's last vacant office buildings finally have a new owner who says it's eager to press ahead with a $50 million conversion of both to 258 apartments, its latest offices-to-housing development in the center city. New York City developer Girona Ventures confirmed its June 13 purchase of 101 Pearl St. and its taller, 11-story neighbor, 111 Pearl St., from a partnership involving Hartford landlord-developers Martin J. Kenny and Sanford Cloud, and city parking magnate Alan Lazowski. According to Doscas, Girona plans to get underway by mid-July remediating the buildings' interior-exterior of any hazardous material. After a few months of remediation work, renovation will start to create 154 units (143 studio, 11 one- bedrooms) at 111 Pearl; and 101 units (74 studio, 21 one-bedroom, 6 two-bed- rooms) at 101 Pearl. Occupancy likely would take place in 2018, at the earliest. "We have the keys. We're raring to go,'' Doscas said. The Capital Region Development Authority, the quasi-public state entity fi- nancing redevelopment of Hartford and neighboring communities, has commit- ted $15.2 million in low-interest loans to 101-111 Pearl. The state also has pledged $4 million in brownfield-cleanup loans to Girona to remediate the properties. In all, Girona has pledged another $31 million in bank financing, tax credits and equity to the project, according to CRDA. Hartford home sales got spring bounce in May Hartford area home and condominium sales rose in May, but their median prices were mixed, new data shows. There were 1,515 single-family houses sold last month vs. 1,431 sold in May 2016, the Greater Hartford Association of Realtors (GHAR) said. Median price rose 2.9 percent to $228,900 last month vs. $222,500 the same month last year, Realtors said. Condo sales rose 28.8 percent to 270 units vs. 210 a year ago, while their median price dipped 1.4 percent to $145,500 vs. $147,500. "The increase in closed sales is customary for the late spring market," said GHAR CEO Jeff Arakelian. ENERGY CT energy industry facing workforce shortages Connecticut's aging workforce is causing another industry headaches: Energy. The state's graying workforce and a lack of technical skills are the biggest barriers to meeting increased demand for energy workers in the state, ac- cording to a new survey published by the Connecticut Business and Industry Association. With rising national attention on energy efficiency and renewable energy, businesses in Connecticut are seeing increased demand for qualified workers in the energy sector, the survey said. Currently, there are 63,000 jobs in the energy industry at 5,600 businesses in Connecticut. Of the 62 businesses surveyed, 56 percent plan to hire in the next 12 months, 82 percent in the next three years, and 61 percent within five years. But more than half of respondents (57 percent) said they have difficulties acquiring entry- level workers for jobs related to energy and energy efficiency activities — in particular, HVAC and plumbing. The biggest barriers related to hiring include lack of required technical skills/ certifications (73 percent) and basic career competencies such as teamwork, communication, and problem-solving (45 percent). The survey was commissioned by the Connecticut Department of Energy and Environmental Protection in collaboration with the CBIA. STARTUPS & ENTREPRENEURS Edible Arrangements plots overseas expansion Wallingford franchisor Edible Arrangements says it will expand internation- ally, opening more than 100 franchise outlets over the next three years that produce and deliver its creative fresh-cut fruit arrangements and treats. Founder-CEO Tariq Farid said the company has chosen Britain's World Fran- chise Associates to help identify prospective development partners specifically in the Gulf Cooperation Council member states — United Arab Emirates, Bah- rain, Saudi Arabia, Oman, Qatar, Kuwait and Yemen — along with other markets in the Middle East, North Africa and Southeast Asia. CTNext awards $44,000 to five entrepreneurs CTNext awarded $44,000 to top startups at its recent Entrepreneur Innova- tion Awards. The winners include West Hartford manufacturer Obvia, Fjord Weather Sys- tems of Wilton, Egghead of Danbury and Lucca Ventures of Southington, which won $10,000 each. Obvia also won a $2,000 "judges' favorite" award. Finalist Deo2go won the $2,000 "crowd favorite" award. Obvia is manufacturing dual-winglet blades and power upgrades for Sun- force Wind Turbines that will improve efficiency and scalability for the turbines. Egghead has developed a new way to package and sell ice cream that brings new revenue to a mature market. Fjord is developing a way to turn every boat on the water into a weather-monitoring system. Lucca is creating a Bluetooth-enabled microphone attachment to a full-face oxygen mask, allowing patients to communicate clearly while wearing it. GOVERNMENT & POLITICS Malloy preps blueprint to manage gov't without state budget Gov. Dannel P. Malloy told legislative leaders last week he is developing a plan for managing state government without a two-year budget in place. The General Assembly completed this year's legislative session earlier this month without passing a two-year budget plan, which faces a combined $5 billion deficit over the next two years. Malloy said he has informed the General Assembly in writing and met with legislative leaders to outline five principles on which to base the plan, which will be completed by June 30. The principles include: Not increasing the projected deficit; allocating funds first for essential services; considering the impact on cities and towns; comply- ing with any and all court orders or mandates; and honoring tentative state employee union agreements. N. Britain adds first brewery in decades New Britain formally introduced last week the Alvarium Beer Co., its first brewery in more than a half century. Mayor Erin Stewart and other city leaders joined Alvarium co-founders Mike Larson, Chris DeGasero and Brian Bugnacki at their 5,000-square-foot brewing space and tap room at 365 John Downey Drive, suite B. Founded in 2016, Alvarium — Latin for "beehive,'' which is part of the city's official seal — is the city's first brewery since the closing of the Cremo Brewing Co. in the 1950s, officials said. "We have been anxiously awaiting the opening of Alvarium ever since the brewers first announced their plans last year. This will be the first commercially brewed beer in New Britain since 1955," Stewart said in a statement. BY THE NUMBERS $50M The amount developers will spend to convert the vacant 101-111 Pearl St. office towers in downtown Hartford into apartments. 4.9% Connecticut's unemployment rate at the end of May, which was down from 5.3 percent in May 2016, according to the state Department of Labor. $85M The amount East Hartford-based Pratt & Whitney is spending to build a manufacturing plant in Singapore that will serve as a maintenance, repair and overall provider for its geared turbofan engine. 1,515 The number of Hartford area homes and condominiums that sold in May, up from 1,431 sold in the year-ago period, according to the Greater Hartford Association of Realtors. TOP 5 MOST READ on HartfordBusiness.com ■ Hartford's 101-111 Pearl office bldgs. sold ■ Fla. Gov. Scott visiting CT to poach businesses ■ Yard Goats Double-A home ballpark named best in U.S. ■ CT energy industry facing workforce shortages ■ CT firms at Paris Air Show 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 Florida Gov. Rick Scott says Connecticut's onerous regulatory and tax climate make the state a prime poaching target. P H O T O | C O N T R I B U T E D

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