Hartford Business Journal

8 Hartford Business Journal • April 9, 2018 • www.HartfordBusiness.com Reporter's Notebook Gregory Seay | gseay@HartfordBusiness.com Real Estate, Economic Development/Construction, Banking & Finance and Manufacturing MANUFACTURING Bristol manufacturer finds incentives begin at home N ot long after acquiring Novo Preci- sion LLC three years ago, owner Bill Hazard considered relocating the Bristol manufacturer closer to his Glastonbury home. Around the same time, Hazard got wind of Bristol's economic-development initiative aimed at enabling local businesses like his to stay and expand. In short order, Novo qualified for and re- ceived several grants, funded by Bristol taxpayers, that Hazard has used to acquire new machinery and tools to expand domestic and international sales, and, eventually, its 40-worker payroll. While the state of Connecticut offers manu- facturers grants and loans through its Depart- ment of Economic and Community Develop- ment, Bristol is among a number of statewide communities with their own basket of incen- tives to woo and retain employers like Novo. Bristol recently extended, through its economic- development arm, the Bristol Development Au- thority (BDA), to Novo a rebate of 5 percent of its 2017 capital investment in qualifying equipment, totaling $33,868, plus another $10,000 for addi- tional hires Novo expects this year, Hazard said. That money, Hazard said, is being plowed into more than $800,000 of new equipment and machinery for its machining and wire, tube and cable processing. Novo also designs, engineers and sells machine tools and systems to other manufacturers. Aside from new equipment, Novo recently ac- quired a defunct aeroparts manufacturer's build- ing next door to its cramped headquarters at 150 Dolphin Road, where it plans to expand following a thorough retrofit of the space. Hazard also plans to hire 10 more workers within the next 12 months. Currently, Novo runs two shifts. "That kind of locks us into Bristol … and that gives us plenty of room for expansion,'' said Hazard, who is Novo's president. According to the Connecticut Confer- ence of Municipalities, there are five com- munities comparable in size to Bristol — Hamden, Manchester, Middletown, Rocky Hill and Torrington — that offer tax incentives tied to business expansion and job creation. Bristol leaders say Novo is an example of what it wants to accomplish with its economic aid and incentives. It also recognizes, Mayor El- len Zoppo-Sassu says, that the state, wrangling with budget-funding issues of its own, is limited as to the level of sustainable financial support it can deliver to cities and towns for education and other public service, much less those towns' economic-devel- opment ambitions. "For several years, the city of Bristol has placed an emphasis on attracting new busi- nesses as well as encouraging existing orga- tions to expand,'' Zoppo-Sassu said. "This activity obviously grows the local grand list, which, in theory, helps protect Bristol from swings in state revenue assistance,'' the mayor said. "The city is certainly happy and apprecia- tive to utilize state-funded incentive programs when they fit a project and are available, but it is important to have a stable grant program that does not rely on state support." BDA Executive Director Justin Malley says the city's financial grants and other incentives "also send a clear message that the city supports all in- volved in the manufacturing community — from business owners to those enjoying careers within Bristol facilities." Checks and balances According Malley, he and his BDA staff follow up with grantees to ensure they live up to their commitments. Bristol does not remit its job- funding grants, he said, until recipients provide the city with payroll records and/or affidavits to prove they have met hiring requirements. Manufacturers receiving the city's equip- ment grants are limited to one equipment grant every 10 years, Malley said. Companies are awarded grant funds as they expand pay- roll, and have five years in which to do so. Since 2013, Bristol has approved 14 manufac- turers for grant funding totaling $788,350, he said. To date, at least 39 full-time positions have been created through these projects. DEAL WATCH Virtus office-space shopping in Hartford Hartford wealth-advisor Virtus Investment Partners, name tenant at 100 Pearl St. downtown, is prowling for office space ahead of the expiration of its current lease later this year. Virtus has been a tenant in the 18-story, blue-tinted- window skyscraper at the northeast corner of Pearl and Trumbull streets since late 2008, just ahead of its 2009 spinoff from Hartford insurer The Phoenix Cos. Previously, Virtus was housed at 56 Prospect St., a building that utility-operator Eversource now owns. Virtus' logo is visible atop the southern face of 100 Pearl. It has approximately 170 Hartford staffers spread over about 65,000 square feet on four floors of 100 Pearl, up from about 110 workers a decade ago, according to Virtus spokesman Joe Fazzino. CBRE/New England is assisting Virtus in its space quest. "We are considering our options, either continuing at 100 Pearl or at another location,'' Fazzino said. "We are fully committed to remaining in Hartford. It's important to be a part of the community.'' He declined to say what other city office-space sites Virtus is exploring. Virtus has another 440 workers spread among its other offices in New York City; Los Angeles; Chicago; Park Ridge, N.J.; Atlanta; and Orlando, Fla. — the latter pair added when Virtus acquired RidgeWorth Investments last June. Virtus Investments Inc. is a major occupant at 100 Pearl St., Hartford. PHOTO | MARK E. THOMAS PHOTO | HBJ FILE Novo Precision owner and President Bill Hazard (left) on the floor of the Bristol designer-maker of tools used in wire, tube and cable processing. REAL ESTATE What's it cost to operate a back office in Hartford? Princeton, N.J., corporate-location advisor The Boyd Co. answered that question recently with a new report that compares major U.S. cities' operating expenses to run a back office, which usually describes the administrative, data-processing, and other operational- and customer-support systems and services on which compa- nies rely. The costs, which include rents, electricity rates and labor, are based on a hypothetical company with 125 workers in 30,000 square feet of leased space. Rank City Total Costs 1 San Francisco, CA $13,648,000 2 New York, NY $13,306,052 3 London, UK $12,860,377 4 Jersey City, NJ $12,414,195 5 Boston, MA $12,333,832 6 Newark, NJ $12,272,264 7 Los Angeles, CA $12,000,968 8 Chicago, IL $11,786,333 13 Hartford, CT $11,725,681 Source: The Boyd Co.

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