Hartford Business Journal

4 Hartford Business Journal • September 18, 2017 • www.HartfordBusiness.com Briefs Hartford city councilors say they will oppose bankruptcy filing A group of Hartford city councilors held a press conference last week to declare their opposition to bankruptcy, and they called on the state to send more funding to the city to help it balance its budget. What was less clear was the position of Hartford City Council President Thomas "T.J." Clarke II. On Sept. 7 Clarke signed a letter with Mayor Like Bronin warning Gov. Dannel P. Malloy and legislative leaders that if the state fails to enact a budget and the city cannot meet its fiscal obligations in approximately 60 days, they "anticipate seeking authority to file Chapter 9." He followed that letter up a few days later, however, arguing he was against a bankruptcy filing. When asked to clarify his positon, Clarke said that in the absence of a state budget, "Hartford will have no choice but to move toward bankruptcy. Obviously, I do not want to go down that road unnecessarily, and I hope the state adopts a responsible budget as soon as possible. Regardless of what I believe, we have to remain focused on a true, long-term solution, and we can't rule anything out until we achieve that." At a Sept. 11 press conference Minority Leader Wildaliz Bermudez and council members Larry Deutsch, Cynthia Jennings, and rjo (Rosezina Joyce) Winch called on the legislature to help and urged the city administration to pursue any possible alternative options to bankruptcy. Several parents and city retirees also spoke against bankruptcy. Travelers suspends repurchasing program in wake of hurricanes The Travelers Cos., which has major Hartford operations, is suspending its share buyback program as it assesses the full breadth of losses for hurricanes Harvey and Irma. The suspension will be temporary, the company said. Travelers' estimated losses from Hurricane Harvey, including estimated recoveries from reinsurance, will range between $375 million and $740 million before taxes, it said. Estimates for Hurricane Irma were not available. Before halting share repurchases, the company said it had repurchased approximately 2.6 million shares for approximately $328 million in the current, third quarter. New Britain engine parts maker bought by India manufacturer Cyient, an engineering and manufacturing firm based in India, is acquiring New Britain manufacturer B&F Design Inc. for an undisclosed sum. B&F Design designs and makes precision engine assembly equipment, fixtures and gauges. The firm employs 47 and has revenue approaching $9 million, according to the two companies. Cyient, based in Hyderabad, India, said this is its sixth acquisition in the last three years. The company has nearly 14,000 employees in 21 countries. Simsbury apartment complex sells for $21M An 88-unit luxury apartment complex in Simsbury has sold for $20.9 million to a New York-based realty investment firm. Beachwold Partners LP bought the Mill Commons Apartments property for about $237,500 per condo-styled unit. Institutional Property Advisors (IPA) handled the sale. The property is located at 1 Millers Way in Simsbury within walking distance of Simsbury Center's dining, shopping and recreational attractions. The Shoppes at Farmington Valley, Bishops Corner, West Hartford Center/Blueback Square, Westfarms mall and Connecticut routes 10, 44 and 185 are nearby. Survey: CT Inc. hangs on despite budget dilemma Nearly half of Connecticut's businesses are holding steady despite the uncertainty of the state's budget impasse and challenging workforce issues, according to the latest Connecticut Business & Industry Association/ Blum Shapiro survey. About 49 percent of the 440 business executives responding to the CBIA survey are holding steady, meaning they aren't growing or contracting, compared to 51 percent in 2016, while 36 percent are growing (unchanged from last year) and 16 percent are contracting (up 3 Week in Review TOP STORY CT tells relocating Alexion to give back $26M in incentives I n the wake of Alexion Pharmaceuticals' announcement that it will move its New Haven headquarters to Boston, state officials said they want back more than $26 million in incentives Alexion received from Gov. Dannel P. Malloy's First Five Plus economic incentive program. The incentives included a $20 million loan and $6 million grant. The loan was used to establish the rare disease drugmaker's current location in New Haven, which relocated from Cheshire. The grant enabled lab construction there. "Alexion's decision to move its headquarters out of the state is very disappointing, especially in light of how supportive the state has been to the company over the years as it has grown into what it is today," said Catherine Smith, commissioner of the Department of Economic and Community Development. Even though Alexion will keep 450 employees in New Haven while moving 400 to Boston, Smith said the agreement calls for repayment of the loan and grant. She also reinforced the state's commitment to supporting business growth, saying, "Setbacks like this, though unfortunate, do not deter the department from pursuing smart policies and ventures with growing companies in our state." In an emailed response, Alexion said it will work with the state to repay its obligations. Alexion CEO Ludwig N. Hantson said during a conference call that the restructuring will include a 20 percent reduction in its global workforce, relocating to Boston by mid- 2018, and closing a site in Rhode Island that is limited to manufacturing only one drug at a time. He also said the move to Boston will put Alexion "in an ecosystem where biotech is front and center" and increase access to the talent pool needed to support the development and manufacture of applications for its drug Soliris and other new drugs. BY THE NUMBERS $26M The total amount of economic develop- ment loans and grants the state wants Alexion Pharmaceuticals to return after the rare disease drugmaker announced it's moving its headquarters to Boston. 81% The percentage of the 440 business executives recently surveyed by the Connecticut Business & Industry Asso- ciation who said they oppose raising the state's minimum wage to $15 an hour. 18 UConn's ranking in U.S. News & World Report's latest top national public uni- versities report, an improvement from No. 20 last year. $59,039 The average household income in the United States in 2016, which was up 3.2 percent from a year earlier, accord- ing to the Census Bureau. TOP 5 MOST READ On HartfordBusiness.com • CT tells relocating Alexion to give back $26M in incentives • Hartford city councilors say they will oppose bankruptcy filing • Hartford HealthCare reshuffles regional leadership • Simsbury apartment complex sells for $21M • CT rejects health insurers' revised exchange rates 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 Linkedln: 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 Ludwig N. Hantson, CEO, Alexion Pharmaceuticals Alexion Pharmaceuticals is moving its 100 College St., New Haven headquarters to Boston. PHOTO | HBJ FILE The Mill Commons Apartments property in Simsbury has 88 luxury apartments. PHOTO | CONTRIBUTED

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