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14 Hartford Business Journal • December 11, 2017 • www.HartfordBusiness.com EDITOR'S TAKE Hartford is at a crossroads T wo major events happened last week that will have potentially significant ramifica- tions for the city of Hartford and its future. First, Hartford health insurer Aetna announced it was going to be acquired for $69 billion by pharmacy retail giant CVS, in a move many have proclaimed will reshape the healthcare landscape. What's unknown is how the deal will impact Aetna's large presence in Hartford where it employs thousands of workers. In a separate announcement, Stanley Black & Decker said it will open a 23,000-square- foot advanced manufacturing center downtown, giving the global tools maker its first presence in the Capital City. Both developments signal that Hartford, despite its financial struggles and economic decline in more recent years, can still be at the center of major business decisions and activ- ity by national and global companies. In fact, Aetna CEO Mark Bertolini said during a CNBC interview that the first conversations about his company's mega-deal occurred in 2015 at a downtown Hartford restaurant — Peppercorn's — between him and CVS Health President and CEO Larry J. Merlo. That's a nice plug for Hartford (especially coming from an executive who's been critical of the state), which has a storied history of innovation and as a center of corporate activity. But the city is also at a major crossroads in terms of being able to preserve that deep-rooted past. On the one hand, there are many positive vibes in Hartford, with the addition of more than 1,000 new housing units, the opening of Dunkin' Donuts Park and UConn's move to the old Hartford Times building. Stanley's decision to invest in downtown is another major step forward for the city as it aims to attract top technology and other companies and talent. More importantly, Stanley's investment was not subsidized by government assistance; its risking its own capital, albeit a very tiny amount for a company that had $11.4 billion in revenue in 2016, to be in Hartford. There are also many landlords, from inside and outside the state, who are bullish about Hartford and its future. Corporate engagement is also on the rise, with insurers investing in a new InsurTech accelerator downtown. Those are all good signs. But let's be honest, online retail giant Amazon, which is looking for a home for its second headquarters, likely won't be walking through that door next. (Hartford and East Hartford teamed up in a bid to lure Amazon's HQ2, which supposedly will bring 50,000 high-paying jobs to the winning location.) While the city of Hartford has made significant strides in recent years, it still has a long way to go before it rebuilds its reputation as a commercial epicenter. Because for every positive development in the city, investors and companies also see red flags like a still unre- solved fiscal crisis (that nearly led to a bank- ruptcy filing) and a commercial property tax rate (74.29 mills) that chokes off private investment. (Let's not forget about the city's high poverty rate as well.) Remember, it was just months ago that Aetna said it was moving its corporate head- quarters to New York City to be closer to a larger pool of technology talent. Bertolini also took a swipe at the state's fiscal issues. (With Aetna's CVS deal now in play, how- ever, Hartford has a chance to showcase itself to a new management team, which currently calls Woonsocket, R.I., home. It would be nice to convince CVS officials that Hartford ought to remain Aetna's headquarters.) While I've always considered Connecti- cut's play for Amazon to be a pipe dream, the economic-development exercise of trying to woo the company and meet its needs is actu- ally a healthy one. It's reminding city and state leaders of the cold hard facts of what many companies are looking for in a potential home. Amazon, for example, is taking into consid- eration various factors like tech labor force, fiscal health, cost of living, college population, culture fit, and state tax rank. By those measures alone, you can see why Hartford and Connecticut, which has its own fiscal issues, might not be on Amazon's radar. Regardless, the opportunity for Hartford to flourish is there. As Millennials fully enter the workforce and Baby Boomers retire, companies want to be in cities attractive to younger workers. It's no longer just a trend, but a fact. Hartford has a highly educated workforce, great cultural assets and strong base of corporate, midsize and small employers. If we can once and for all put the city and state on sustainable fiscal paths with competitive tax rates, while still making needed investments in transportation and education, both will flourish. But we are not there yet. OTHER VOICES Immigration reform critical to continued economic growth By James T. Brett M elting pot. Land of opportunity. The Ameri- can dream. Each of these concepts is in- grained in our nation's history and our identity. At its core, America is a nation of immigrants. For many of us, that is something to be proud of. Something to celebrate. But our nation's current immigration system and recent changes to our immigration policies simply do not reflect that. The time has come for our leaders in Washington D.C., to take action to ensure that America continues to build upon our proud history as a nation that em- braces newcomers for the potential they hold as valu- able members of our society. Few would argue that our immigration system and poli- cies are in need of reform and mod- ernization. And here in New England, our economy and the strength and diversity of our communities depend upon it. In the near term, it is critical that Con- gress take action to protect the thousands of young men and women known as "Dream- ers." The New England region alone is home to some 15,000 individuals who are currently protected against deportation under the Deferred Action for Childhood Arrivals pro- gram, or DACA. They were brought to this country by their families as children; they did not have a choice. For most Dream- ers, America is the only home they have ever known and they have spent their lives growing-up here, learning here, and pursuing the American dream here. A report from FWD.us recently found that 91 percent of DACA recipients are employed. They are valued members of our region's workforce, where they are contrib- uting their skills in the industries that drive New England's economy — health care, technology, financial services, and others. In fact, according to the Center for American Progress, the loss of DACA workers would reduce the U.S. gross domestic product by $433 billion over the next 10 years. Despite this, in September, President Trump announced he would end DACA but allowed a six-month grace period for Con- gress to enact a long-term solution. As that deadline fast approaches, we implore our leaders on Capitol Hill to set aside partisan differences and move swiftly to ensure that these valuable members of our communities are able to remain in the U.S. In the longer term — but we hope in the year ahead — the time has come for Congress to make much-needed updates to our immigration system to ensure con- tinued growth in our region's thriving in- novation economy. New England is home to thousands of in- novative businesses across a range of indus- tries. The one thing all these companies have in common? They all rely on a highly skilled workforce with advanced training in the STEM (science, technology, engineering and math) fields to continue to grow and inno- vate. But time and again we hear that there simply are not enough American workers to fill the new jobs being created, and employers must turn to highly trained men and women who come to the U.S. on H-1B visas. While we certainly must continue invest- ing in STEM education to develop the talent pipeline for the future, it is also critical that we ensure that talented individuals from around the globe can join the American workforce. The New England Council has long advocated for an increase in the cap on H-1B visas for highly skilled immigrant workers. In recent years, H-1B visa applica- tions consistently have hit the cap of 85,000 within days of the application period opening — it took just four days in 2017 — which has triggered strong bipartisan support for increasing the cap on H-1B visas. The New England Council once again calls on Congress to increase the cap and en- sure that our region's innovative businesses have access to the workforce they need. There are certainly other immigration policies that are in need of reform and mod- ernization, and we are hopeful that Congress will take a comprehensive and bipartisan approach to any such reform. But address- ing these two particular policies — DACA and H-1B visas — is of critical importance to our economy and to preserving our nation's proud history as a place that welcomes those who wish to come here to make a contribu- tion and pursue the American dream. James T. Brett is the president and CEO of The New England Council, a nonpartisan alliance of businesses, academic and health institutions, and public and private organizations throughout New England formed to promote economic growth. James T. Brett Greg Bordonaro Editor At its core, America is a nation of immigrants. Stanley's decision to invest in downtown is another major step forward for the city as it aims to attract top technology and other companies and talent. Opinion & Commentary