Three Year
Comprehensive Economic Development Plan
FEBRUARY 1, 2005
I. Introduction: 1
1. Overview of Town and Regional Economic Data 2
2. Report Card – Evaluation of Previous Plan Results 6
II. Executive Summary: 10
Overview of Findings and Recommendations
III. General Plan Areas: Problems and Solutions13
- Business Development and Tax Incentives 14
- Infrastructure and Redevelopment 16
Brownfields, Neighborhood Revitalization, Technology
3. Small Business and Entrepreneur Assistance 18
Small Business Loans, Resource Development,
Workforce Development, Planning and Zoning Technical Assistance
- Planning, Marketing and Technology 20
Plan Administration
IV. Budget 22
Programs, Administration, Planning and Professional Services
Chapter I: Introduction
The Town of Hamden develops and implements programs that attract new commercial development and encourages the expansion of existing local businesses. The Town is also committed to maintaining the quality of life in its many neighborhoods as a way of encouraging investment into the commercial tax base.
In 1998, the Town Legislative Council approved a two-year economic development plan, which established many programs to assist any kind of business anywhere in Town. The plan included neighborhood revitalization and redevelopment initiatives that would support and enhance the desirability of the many areas of Hamden for business development.
In 1999, the Town made structural changes in the way these products and programs would be administered by merging the Economic and Community Development Departments into the Department of Economic and Community Development. The Town is now better prepared to respond to the needs of the business community as well as those of residential taxpayers.
In 2001, the Town’s Legislative Council approved a new Three-Year Economic Development Plan that improved the business incentives and the overall program developed during the 1998 plan.
Throughout 2004, the Mayor’s Office and the Economic Development Commission conducted several forums to solicit input from all economic development partners to develop this, Hamden’s next long-range plan.
To ensure that the Town’s proactive economic agenda has a comprehensive approach, the Economic Development Commission and the Mayor have developed a three-year, comprehensive economic development plan. This plan incorporates key strategic initiatives that will stimulate Hamden’s economic growth and ensure that the Town maintains its competitive edge in the region.
Over the next three years the Town’s will transform its current economic focus from service and retail in corridors, to one that is more based on community-based redevelopment. Creating jobs and destinations within each neighborhood are a major focus of the Towns long-range Economic and Community Development goals. This focus will encourage tools used to implement the Town’s Plan of Conservation and Development.
Neighborhoods must be supported by a strong infrastructure that is adequate to support existing and new businesses in the retail, service, manufacturing and technology industries. The focus on blight, infrastructure and brownfields provides the focus needed to increase the Town’s commercial tax base.
1. Overview of Town and Regional Economic Factors
To better prepare a strategy for economic development, the Town must have a basic understanding of current market conditions, including changes in demographic factors, which effect the economy. Some of the statistics are comparisons of census data (1990-2000), from other sources for the period between 1990-1998 and from the data incorporated in the Town Plan of Conservation & Development.
Population Growth and Income
There was population growth of 8.5% in Hamden between 1990 and 2000 as compared to 2.5% between 1980 and 1990. The growth in population came primarily from the development of 2000 +, units in the “Hamden Hills” project area. Roughly 70% of those units at Hamden Hills are considered unrestricted (vs. restricted, e.g. “elderly only”) housing, occupied by potential wage earners in the job market. It is anticipated that between 2000 and 2025 the Towns population will increase another 5,157 people.
Income in Hamden was at parity with the region and state. Hamden’s median household income (MHI) was $55,303 in 2000, which is slightly above the region ($51,303) and is on par with the State ($56,272) (note: MHI rose to $71,600 by February 2004). High-end earners in the Town (above $100,000) account for 17.7% of all households, which again is above the region’s 16.7% but somewhat below the state’s share of 20.8%. At the other end of the spectrum, an estimated 15.3% of all Hamden households earn below $20,000 as compared to 18.8% in the region and 15.9% in the state.
This growth of population and level of income indicates that there are more people that can financially support a growing economy through the consumption of goods and services. The Town can also provide an available and well-trained workforce to business owners.
Data Source: 2000 U.S. Census, Town of Hamden, Connecticut Department of
Transportation, Plan of Conservation and Development, HUD.
Labor Force and Unemployment Trends
Over the past decade, unemployment rates in the Town of Hamden have consistently registered below that of the State of Connecticut suggesting relative job stability of its labor force. For example in 1999, Hamden posted an annual average of 2.9% unemployment rate as compared to the State of Connecticut’s jobless rate of 3.2%. Lower unemployment rates for Hamden continued to be the trend in Year 2004, with the Town’s jobless rate in June 2004 at 4.1% while the State of CT. was at 4.6%. In the New Haven region the rate was 4.8% for the same period. The closest large City (New Haven) had an unemployment rate of over 7%.
There was a reduced jobless rate in 2000 that is attributed to a decline in the overall labor force in the past 14 years, which affected all of Connecticut. Between 1990 and 1999, Hamden saw a decline of 1,122 workers or 3.7%. Over the same period, the State saw a 4.5% decline. Much of Hamden’s labor market decline occurred between the years of 1990 and 1995 when the northeast was still in a major recession. However, even with the return of a positive economic climate, Hamden, like the State overall, is experiencing a reduction
in the size of its’ labor force. This suggests a need to focus attention on Workforce Development Issues such as job readiness, recruitment, transportation and daycare.
Data Sources: Connecticut Department of Labor, U.S. Census
Employment Trends
Hamden’s employment base is much more oriented to service producing jobs relative to the region and the state. (See table below for a list of “Service Producing Jobs”) Over 85% of the Hamden’s job base is service-related as compared to 80.6% for the region and 79.4% for the State. The major difference is noted in the percentage of retail jobs in Hamden calculated at 22%, while the region and the State indicate a 16% share. The types of jobs available are directly related to the large number of small businesses, 73+% of which had less then 10 employees and 85+% of which has less than 20 employees.
Meanwhile service jobs (as a sub-sector of service-producing jobs) showed the greatest growth in Hamden between 1990-1998 expanding from 5,530 in 1990 to 6,750 in 1998, representing a 22.1% increase. This emphasis on service jobs partly explains the Towns relatively low unemployment rate because these types of jobs are available to people with a wide variety of skills.
Data Source: Connecticut Labor Department
Job Growth Trends
According to the Connecticut Department of Labor, Hamden’s highest levels of employment were achieved in 1990 when it registered 20,730 jobs. Between 1990 and 1995 the town experienced a 12% loss in total jobs associated with the economic recession that crippled the Northeast. From 1995-2000, Hamden managed to regain 1460 jobs or nearly 60% of the total jobs lost between 1990-1995.
When comparing periods 1990-1998 to 1995-1998 in the following table, one can see the major improvements in job sectors.
TREND ANALYSIS
BY JOB SECTOR-HAMDEN
1990-1998 and 1995-1998
% Change % Change
1990-1998 1995-1998
Total Jobs (covered empl.) -8.5% 3.9%
Goods Producing -16.9% 13.4%
Construction -23.5% 31.9%
Manufacturing -13.3% 5.6%
Service Producing - 6.9% 2.5%
Transp., Comm., Utilities -24.8% -21.1%
Trade. -10.5% 9.0%
Wholesale -10.8% 28.6%
Retail Trade -10.6% 5.1%
Finance, Ins. Real Estate* -28.6% -18.8%
Services 22.1% 7.3%
Government -28.9% 0.0%
Data Source: Connecticut Labor Department
Hamden Retail Market
Due to changes in population and the restructuring of the retail industry, Hamden has lost a portion of its traditional retail base. From 1990 to 1998, the Town’s retail sales decreased from $654 million to $579 million or 11% according to the Connecticut Department of Revenue Services. The largest concentration of this retail is located along Hamden’s “Magic Mile” in four major retail strips from the Merritt Parkway to Skiff Street. However, Hamden’s neighborhoods will continue to support the usual mix of pedestrian/convenience–scale retail and services. Between 1998 and 2004 their retail sales increased by 8.6% to 629 million.
Subcategories posting the largest gains were automotive products (up by 45% in large part due to increase in numbers and cost of automobiles) home furnishings and appliances, which are both, fueled by a recent good real estate market. These types of products draw customers from a wide area.
Data Source: Connecticut Department of Revenue Services
Office Market
Due to gains in the service, communication and technological sectors of the region, the office market vacancy in New Haven County has dropped notably in the past several years from over 21% in the mid 1990s to 17.0% in 2003. In contrast the New Haven Central Business District recorded a vacancy rate of 13.6%, while the suburban sub-market, which includes Hamden, reported a 10.8% vacancy. The latter represented a drop from 19.7% in the previous year. This indicates that there is a soft office space market in Hamden.
Data Source: Various Real Estate Sources 1999 and 2003
Hamden Industrial and Manufacturing Market
Although, lacking the traditional industrial and manufacturing base of New Haven or Meriden or easy and direct access to the major corridors enjoyed by other towns in the region (or restricted in truck use as in the case of Route 15), Hamden’s industrial and manufacturing market is nevertheless well-established and relatively stable even with the diminishing inventory of industrial parcels. Historically, the Town has benefited from the industrial spillover from New Haven based firms looking to expand and grow their operations. More recently, Hamden has begun to attract from a wider area of the region as the market for industrial space and land in the region has tightened.
For the most part, the industrial and manufacturing market in Hamden is concentrated within three areas of the Town: lower Dixwell Avenue or “Highwood” (principally Hamden Business Park), Sherman Avenue, and State Street corridor. The Hamden Business Park, located off Dixwell Avenue is a Town developed park consisting of over 30 companies on roughly 30 acres.
Located on the site of a former airport used in the 1930’s, the last remaining parcel in the park sold in 1999. This area is a designated “Enterprise Zone”. Sherman Avenue industrial area stretches two miles from Shepard Avenue to Whitney Avenue. Largely developed, the Sherman Avenue industrial area does have a low land inventory because of the many recent overall industrial property sales, including new construction projects.
The State Street corridor and adjoining Welton Street area represents one of the older industrial areas in Hamden. Many of the industrial users in the area have operated their location for 20 years or more. A large mix of older and recently arrived manufacturing firms primarily associated with assemblage operations is also found in the corridor. Reportedly, these firms tout proximity to markets and access to I-91 as a major advantage of the area. Virtually all properties on State and Welton Streets have been or are being developed.
Industrial Lease Trends
Lease rates associated with industrial product in the Hamden area are slightly below rates achieved in suburban areas to the north because vacancies are more apt to be in older, style buildings that are often located in economically impacted and congested areas. Recent lease transactions range in rents from $5.00 gross in older buildings to $7.50 triple net in newer projects. Incubator space and less desirable industrial space is quoted at $3.00 to $4.00 triple net.
Because Hamden is a built out community, the vacancy rate for industrial space is extremely low, running at less than 5%. According to local brokers, vacancy rates have recently tightened considerably within the last year, with older inventory starting to fill-up and less fit-up concessions being offered by owners.
Data Source(s): State Street Municipal Development Plan, Real Estate Professionals, Town
Transaction Information.
2. Report Card: Evaluation of Previous Plan Results
The Town’s current Plan includes goals for business incentives and physical improvements to neighborhoods and commercial districts. These incentives and improvements have resulted in increases in the commercial tax base, create jobs, generate important infrastructure improvements and add to the general appearance of commercial and residential areas.
STRATEGIC INITIATIVE 1:
1a. Business Incentives:
Tax Deferrals, Grants and Permit Waivers. Since 1998, the Town has approved over 70 applications including 43 projects that have been completed, 22 are currently under construction or are awaiting approval at zoning, etc. Roughly 10 projects that were approved never went forward. Many of these projects are carried over from the previous plan and have been completed. The following table outlines the performance of this program. The total benefit of the previous plans is also outlined. See table 1 for information regarding the status of projects.
1b. Small Business Loan Program(s)*:
Since October 2001, the Town made 4 loans totaling nearly all of the available funds. Loans were made for the Down-Payment Assistance and Micro-loan Program(s) at the following addresses:
- 2600 State Street: $50,000 (Sound Stage/DJ World)
- 814 Dixwell Avenue: $36,250 (Hollywood Nails)
- 605 Benham Street: $55,000 (Alphabet Academy Day Care)
- 2415 Dixwell Avenue: $50,000 (Hamden Garden Center): Encumbered for January closing.
The Total amount loaned will generate income (revenue) back to the program (to be reloaned) in an amount up to $19,000 per year for the next 15 years.
*Prior to the beginning of the expiring Three-year Plan (beginning 10/4/01), the Town made one loan that defaulted in the amount of $22,000.
Impact on Grand List
Based on data provided in Exhibit 1 (Table 1), the commercial grand list may (assessed value) increase by as much as (over) $23,000,000 from projects/businesses that were directly or indirectly assisted through the program. Over 50% of this potential growth can be attributed to the most recent 3-year plan. This increase did not include personal property or other new tax revenue generated by other expansions encouraged by the success of these projects.
Jobs Created
Because of the general state of the economy, it is hard to pinpoint how many jobs were created by companies assisted by are program. Based on data accumulated in the summer of 2004, we estimated that over 300 jobs were directly created in Hamden because of our program. That number fluctuates by 10%-20%, based on seasonal or contractual work.
The Intangibles
The success of the incentive program isn’t only being measured by new taxes collected and jobs created but also by many other impacts.
For example as the Town has completed infrastructure improvements and promoted its business incentive program, many new stores have opened over the last three years. Stores like Bed, Bath & Beyond, Starbucks, Bennigan’s, Las Vega Golf & Tennis, a new CVS and Brooks and Modell’s Sporting Goods have been built. A Home Depot is under construction and upon completion, the former Pathmark Plaza will be renovated. The Town looks forward to a continuation of new investment.
Finally, the purchase and rehabilitation of blighted or run-down buildings improves the quality of neighborhoods, improves the confidence (and bottom line) of local businesses and encourages other investment. Recent examples of this kind of investment, includes the former National Filter Media Building and the Himmel Brothers site.
The following pages describe the of successfully completed projects under the expiring plan.
STRATEGIC INITIATIVE 2.1: Implement a Municipal Development Plan (MDP)
The Town was approved (March 2004) for a $1,350,000 grant from the CT Department of Economic & Community Development for Phase I of the MDP. The activities will include:
- Repair/Replacement of the Welton Street Pump Station
- Replacement of the (forced gravity) Sewer Main
- Reconstruction of Welton Street (Road, Storm Drainage, etc.)
These activities will:
· Resolve a standing DEP Order (since 1999).
· Will improve existing business opportunities for expansion.
· Will improve the Towns ability to attract more industry.
· Improve the quality of life for residential taxpayers.
· Be completed in the summer of 2005
STRATEGIC INITIATIVE 2.2: Establish a Municipal Development Plan in the Highwood Neighborhood.
Because of a lack of State funds, the State DECD has discouraged the Town to submit a request for matching funds for a new MDP in Highwood until the Town completes Phase I of the State Street MDP.
STRATEGIC INITIATIVE 2.3: Establish a Professional Services, Predevelopment Cost, Acquisition Cost Fund
This fund was a successful tool for redevelopment, providing funding for appraisals, survey, legal costs, etc. Examples of projects for which these funds were utilized included:
- Canal Line disposition expenses
- Highwood Square Redevelopment Costs
- Highwood Streetscape
- Environmental engineering costs for the Johnson Building demolition
STRATEGIC INITIATIVE 2.4: Install Signage in Hamden Business Park
This project was completed in 2003/2004, which included a new archway sign, two identification signs and landscaping for the 32 businesses located in the Park.
STRATEGIC INITIATIVE 2.5: Continue Streetscape Improvement Program
The Town has successfully completed three streetscape projects, one in the State Street & two in the Highwood neighborhoods. These two projects used very little funding from the Hamden Economic Development Fund, but rather mostly State and Federal grants.
STRATEGIC INITIATIVE 3.1: Revolving Loan Program (see Strategic Initiative 1.b).
STRATEGIC INITIATIVE 3.2: Technical Assistance
The Town has continued to provide most of the services at no cost. However, the changing economy has dramatically increased the number of people seeking a wide variety of technical assistance. More and more people are changing careers and considering opening new businesses. Most of these customers need more “hands-on” assistance. The new plan outlines the plan for a “Business Assistance Center”.
STRATEGIC INITIATIVE 3.3/3.4: Expand the Hamden Workforce Advisory Group/Job Readiness Program.
The Town has been very active in the area of Workforce Readiness and Development. The Town continues to set the pace in the region by having a full-time Workforce Coordinator. The recognition of this has been evident in the funding of two special “Welfare to Work” grants (totally $146,000) for (job search) skills training and job linkage. Most participants in this program were placed in full-time jobs.
STRATEGIC INITIATIVE 4.1: Improve the Hamden Economic Development Department Web site
In early 2004 the Town launched a new Web site that includes a professional design, recent photos of Hamden businesses, etc. This site will be further developed with a new promotion and interactive program that is currently being developed.
STRATEGIC INITIATIVE 4.2: Implement a Professional Marketing Conservation Plan
The Town utilized the Hamden Economic Development Fund to create several marketing tools and to provide technical assistance to Hamden “branded” events, activities.
- Lure Brochure (Development and Printing)
- Power Point Presentation on the Town for use at trade shows, etc.
- Planning for an Event on Innovation & Manufacturing
STRATEGIC INITIATIVE 4.3: Establish Town Data Base of Available Properties and Physical Resources
Funds under this goal were spent on specialized mapping and land use maps used in the technical analysis of development projects.
Further, funds were contributed for a new GIS program purchased by the Engineering Department for property specific data that will be important in future real estate development.
STRATEGIC INITIATIVE 4.4: Planning Linkages to study the Viability of Commercial Districts
The Town has become part of several new initiatives for planning the future of Commercial Districts.
- Completed a concept design plan for Highwood Square
- Received a grant from United Illuminating for two planning initiative for corridor planning for the State Street and Highwood neighborhoods.
- Active participation in several Hamden Chamber initiatives including Governmental Affairs, Retail, etc. Committees.
- Active in the economic impacts of projects on the Farmington Canal Line project area.
STRATEGIC INITIATIVE 4.5 Annual Evaluation of Three-year Plan (2001-2004)
The Hamden Economic Development Commission has conducted several ongoing evaluations of the current plan at their regularly scheduled meetings. The Director also submitted periodic reports to the Legislative Council about ongoing initiatives.
Chapter II: Executive Summary Of New Strategic Initiatives
To ensure that the Town has a relevant and proactive agenda, the Economic Development Commission has developed a new three-year, economic development plan. This plan incorporates many key strategic initiatives that will continue Hamden’s economic growth and ensure that the Town maintains its competitive edge in the region.
Some of the plan’s strategic initiatives include:
· To continue the Economic Development Incentive Program, which empowers the Town to offer tax incentives, grants and building permit waivers to businesses for real property improvements and personal property growth.
· Strategies for addressing the assessment and remediation of brownfield projects.
· A small business loan program to support small business expansion and growth.
· New Marketing & Web-site Strategies
· A new Business Assistance Center for small businesses.
· Workforce Development Strategies
1. Economic Development Incentives to Attract New Businesses and Encourage Expansion
To maintain its competitive edge in the region, the Town of Hamden must continue to offer incentives to businesses considering locating to Town or expanding at their current Hamden location.
· Strategic Initiative 1.1: Continue a Business Incentive Program to Attract New Businesses to Hamden and Encourage the Expansion of Existing Businesses.
This program will offer expanded benefits to businesses and will encourage Town economic development projects that produce new revenue for continuing our business incentive program.
2.Infrastructure and Redevelopment
The Town of Hamden has little developable land of any substantial size for commercial and manufacturing development.
- Strategic Initiative 2.1: Utilize a new Hamden Economic Development Corporation (HEDC) for the development of difficult or brownfield properties
The Town formed the Hamden Economic Development Corporation in 2004 as a tool to support redevelopment initiatives.
· Strategic Initiative 2.2 Continue a Predevelopment Cost Fund.
This “seed” fund will be helpful to provide funds for legal costs, appraisals, environmental assessments, etc. to secure parcels for site assemblage and redevelopment.
· Strategic Initiative 2.3 Utilize Funds Towards Maintenance of Commercial Areas
Funding would be set aside for cleaning, landscaping, etc. for commercial areas such as the Hamden Business Park, State Street, Leeder Hill Drive, etc.
3.Small Business and Entrepreneur Assistance
The Town will offer financial and technical assistance to people running a small, town-based, and startup businesses.
· Strategic Initiative 3.1: Continue the Revolving Small Business Loan Program to Support Small Business Growth and Expansion.
This program will be available to businesses in need of funds for property and fixed asset purchases (machinery and equipment), interior and/or exterior renovations and property
improvements.
- Strategic Initiative 3.2: Open a Business Assistance Center (BAC) to Help Small
Businesses with Business Planning, Raising Capital and other Technical Needs.
Small businesses, in particular start-ups, need technical help in developing business plans, as well as guidance with accounting, marketing and development issues.
· Strategic Initiative 3.3: Continue to Expand the Scope of the Hamden Workforce Advisory Group
The Job Resource Counselor will continue to administer programs that train people to find jobs. The Town will also utilize its Job Resource Counselor to develop and coordinate job training and readiness programs with members of the Advisory Board in specific industry fields.
4.Planning, Marketing and Communication
Hamden must market its unique strengths and positive climate for business development and investment. To do so, the Town has identified key target industries and companies, trade associations, realtors, and other organizations.
- Strategic Initiative 4.1: Make the Hamden Economic Development Web Site part of a Business Resource Center
The Town will continue to upgrade the economic development web site. This page will provide more frequently updated information on available development sites for major employers, outside users such as our realtor community and other State and Federal links.
· Strategic Initiative 4.2 General Marketing, Continue Recruitment of New Developers, Investors and Businesses
As part of the Town’s marketing efforts, the Town should network in regional, Statewide and national organizations, public and private to bring investment throughout Town. This effort will include attending trade shows, conferences and opportunities for continued education.
· Strategic Initiative 4.3: Continue a Town Database of Available Properties and Physical Resources.
Such an updated and accurate database would include:
a. Available locations of high technology infrastructure resources.
b. List of available Hamden properties by category (e.g. size, locations) etc.
c. List of Brownfield properties and including opportunities for finance.
· Strategic Initiative 4.4: Continue Planning Collaboration to Study The Viability of Commercial Districts
Such collaborations include:
a. “Magic Mile” and/or Retail committee
b. Study of Entertainment and Cultural Enhancement Districts
c. Quality Development along the Farmington Canal Line.
d. Continued Study & Planning for the State Street and Highwood
Commercial Corridor.
· Strategic Initiative 4.5: Market the Town for Media (film, etc.)
The Town will market itself through the CT Film Video & Media Office to prepare itself for the media industry.
Chapter III: General Plan Areas: Problems & Solutions
The goals of the following Plan Areas were derived through a series of meetings (see Exhibit 2) with all relevant economic development partners. These meetings provided an opportunity for these partners to provide input on how our programs have been working. The result will be more opportunities for participation in our incentive programs.
The accomplishments over the last few years are outlined in a Chapter I called the “Report Card”. As we discuss the following plan areas, we will summarize some of the results and identify some of the current conditions.
Long-Range Plan: Administration
The Department of Economic and Community Development is responsible for the implementation of the long-range economic development plan. To the greatest extent possible, the Department will seek programs and projects that generate income to recycle back into the Department for the purposes of programs, marketing and administrative costs. This will include writing and administration of grants to supplement the activities in the plan
The previous two plans (1998-2001 and 2001-2004) implemented by this department were capitalized by over $1,000,000 in funds. The good news is that to a large degree, most of the goals were accomplished according to the plan(s) objectives and a substantial amount of funds were expended. The challenging news is that the objectives set forth in this plan are less related to capital projects in favor of programs that help promote and train small businesses to succeed.
This office will be responsible for the programs listed in this plan (Incentive Plan, Loan Program, Business Assistance Center, Web-site etc), and other projects such as redevelopment and brownfield project management, streetscape projects funded by the State of CT and other sources such as the federal Economic Development Administration. The office will also continue to be active marketing the town through commercial real estate brokers and publications.
Plan Area #1: Business Development & Business Incentives
Both the Town and State’s (Enterprise Zone, Urban Jobs, Railroad Depot Zone) tax incentive programs are key strategies to expand and maintain Hamden's commercial tax base. These incentive programs will be marketed to the business, developer and realtor communities.
The Economic and Community Development Department has developed information packets on these programs, distributing information to qualifying businesses and offering assistance regarding the State’s application process. The Town’s Enterprise Zone (EZ), Railroad Depot Zone and Urban Jobs program also offers tax assessment deferrals on the increased value of real property improvements to any commercial properties in the EZ. Those deferrals are reimbursed a maximum of 50% by the State.
Since the program began (1998), the Town has approved over 60 applications for our various business incentives. Many of those approved businesses are either complete, under construction or soon be under construction. Over 70 % of these projects were existing businesses needing to expand. See Exhibit 1, Table 1 for a complete list of businesses approved for assistance by the Town.
1. Problem Identified: There is a lack of funds currently available for grant and other financial assistance from State and Federal Sources.
To maintain its competitive edge in the region, the Town of Hamden must continue incentives to businesses considering locating to Town, or expanding at their current Hamden location. Mindful that other Communities offer incentives to businesses, Hamden’s Economic Development Commission strongly supports opportunities for business incentives to keep the Town highly competitive in the region.
· Strategic Initiative 1.1: Continue a Comprehensive Business Incentive Program to Attract New Businesses to Hamden and Encourage the Expansion of Existing Businesses.
This program will continue to offer expanded benefits to businesses and will encourage Town economic development projects that produce revenue.
· Tax deferrals (abatements)
· Grants for site and building infrastructure improvements (limited to Highwood and State Street neighborhoods and for manufacturing projects)
· Building permit fee waivers
· Tax abatements and other financial assistance to owners who remediate environmentally hazardous sites.
In addition, Hamden currently offers tax abatements to manufacturing, warehousing and distribution and some service businesses through its State of Connecticut designation as a Targeted Investment Community (TIC) under the Urban Jobs program, under our certified Enterprise Zone (EZ) and our Railroad Depot Zone (RRDZ). These abatements are reimbursed to the Town by the State at a maximum of 50%.
Property Improvement (Grant) Incentives:
Property improvements include all site work including paving, curbing, landscaping, fencing, utilities and drainage. It also includes all improvements to buildings such a s structural (foundation, all sections, roof) and electrical, mechanical, HVAC, telecommunication improvements, etc., all of which will be fixed improvements, not removable by the occupant”
Plan Area #2:Infrastructure & Redevelopment
Problem Identified
The Town of Hamden has little vacant and developable land (for business expansion) of any major size. The majority of development opportunities lie in the redevelopment of existing properties that range from 5,000 to 25,000 S.F. There are only a few properties that exceed these sized properties. Among these sites are a few brownfield projects that require specialized professional services and financing to make them viable, tax-producing properties.
Additionally, in order to support the demand for developable space for any use, the Town must have an adequate infrastructure or a plan for developing one. For the purposes of this chapter, infrastructure is defined as roads, utilities (water and sewer capacity), technology, etc. Included in the infrastructure needs is a plan for addressing the Town’s brownfield sites. Those are sites that actually have or are perceived to have environmental problems.
This need is particularly great for business uses that generate higher numbers of employees and taxes. Finally the town must have a plan to support its neighborhoods, and small businesses; including addressing physical needs such as adequate sidewalks, quality streetscapes, roads, adequate utilities, parking areas, etc.
- Strategic Initiative 2.1: Utilize a new Hamden Economic Development Corporation (HEDC) for the development of difficult or brownfield properties
The Hamden Economic Development Corporation was formed in 2004 as a tool to support redevelopment initiative by the Town These are similar corporation in mostly larger, growing communities, where there are many older properties that present challenges and liabilities for the Town West Haven, Shelton, Orange, etc. are examples of Towns where Economic Development Corporation are utilized. Their independence from Town governments gives them flexibility to complete difficult projects while insulating the Town from liability. The funds will be used for start up and maintenance costs for stationary, insurance, legal fees, etc.
Its composition is seven members of the Hamden Economic Development Commission plus two outside members. It will be capable of raising funds, applying for grants and taking title to property. The Director of the Economic and Community Development Department will staff the Hamden Economic Development Corporation.
· Strategic Initiative 2.2: Continue a Pre-Development Cost Fund.
This seed fund will be helpful to provide funds for legal costs, appraisals, environmental assessments, etc. to secure parcels for site assemblage and redevelopment. This fund could also be used as a cash match for land acquisitions under State & Federal economic development programs. Examples of such projects completed under such a fund could be the expansion of the current or a new Hamden Business Park and for brownfield redevelopment projects.
· Strategic Initiative 2.3 Utilize Funds Towards Maintenance of Commercial Areas
Through the many business cluster meetings, many business owners requested better maintenance of commercial areas particularly where it is less visible and people are tempted to use them as dumping areas.
Funding would be set aside for cleaning, landscaping, etc. for commercial areas such as the Hamden Business Park, Leeder Hill Drive, etc.
Plan Area #3:Small Business and Entrepreneur Assistance
Tax incentives provide support to many out-of-town and expanding local businesses. However, Hamden must also offer financial and technical assistance to people running a local business, including those involved with start up ventures.
· Strategic Initiative 3.1: Continue a Revolving Small Business Loan Fund Program to Support Small Business Growth and Expansion.
Hamden is committed to help small businesses succeed and to foster a climate that supports the needs of small business. There has been a great upsurge in borrowing over the last 6-12 months as evident by the number of loans recently made. The Economic Development Commission proposes the continuation of its’ small business loan program.
Although area banks and the State of Connecticut offer several small business loan programs, interest rates and underwriting criteria are sometimes prohibitive for Hamden small businesses. To support its small business community, Hamden proposes to continue its small business loan program that will provide loans tailored to specific local business needs.
The funds from previous loan will be paid back over the next 5-15 years. Funds paid back (including previous loans) into the program will be recycled into the program. It is anticipated that this program will receive funds back from outstanding loans totaling approximately $19,000 each complete year. These funds will be added to those in the proposed three-year budget.
This program will be available to businesses for down-payment assistance, fixed asset purchases (machinery and equipment), interior and/or exterior renovations and property improvements. Offering loans to a maximum of $50,000 at Wall Street Journal Prime Rate for a maximum term of sixty months, financing may be used as a stand-alone source or may leverage other financing sources. Lending criteria are further specified in Exhibit 7. The fund will loan up to $50,000 towards the acquisition of commercial properties or for equipment purchases/rehabilitation/construction.
The Community Economic Development Fund (CEDF) manages Hamden’s program. Qualified in loan origination, underwriting, processing and servicing CEDF will continue to administer Hamden’s small business loan program. CEDF also provides financing and services to businesses throughout the state.
- Strategic Initiative 3.2: Implement a Business Assistance Center to Help Small Businesses with Business Planning and other Technical Needs.
The Economic and Community Development Office is the primary source of requests for a wide variety of service needs for small businesses.
In addition to the need for financing, Hamden’s small businesses also need help in developing business plans and its components that are required by most financing sources. Small businesses, in particular start-ups, need technical assistance in developing these plans as well as guidance with accounting, marketing and development issues. It has been suggested that there are already many sources of Technical Assistance existing & a local initiative would be repetitive and could be provided by i.e. classes attended by Hamden Adult Education. The program listed under Hamden Adult Education provides only a general overview of important categories on running a small business, not hands on training.
Although some regional programs provide assistance to businesses in these areas, there are waiting lists and, in most cases, businesses do not receive on-site one-on-one help or comprehensive services. Most importantly these services are needed on a one to one level, where the business could receive proper attention. This initiative can offer the type of “hands on” assistance needed to make a project successful.
There will be many partners that assistance will be offered from the Business Assistance Center:
a. Hamden Chamber of Commerce
b. Hamden Business Resource Center
c. Quinnipiac University Business School
d. National Minority Supplier Development Council (NMSDC)
e. Town ombudsman services to walk business through planning and zoning, engineering and building department(s) process. This service will be available through the Economic and Community Development Department.
The Economic Development Department will also refer businesses to the financing programs available through the Connecticut Development Authority (CDA), the Connecticut Department of Economic and Community Development (DECD), The Community Economic Development Fund (CEDF), CT Minority Supplier Development Council, the Small Business Administration (SBA), and Conn. Community Investment Fund (CCIF). The office will also utilize the resources of the Connecticut Economic Resource Council, Inc. (CERC) and Connecticut Innovations Inc. (CII).
(See Exhibit 3 for details of the Business Assistance Center)
· Strategic Initiative 3.3: Continue Workforce Development Initiatives and Expand the Scope of the Hamden Workforce Advisory Group
The Town has initiated a local Workforce Development Advisory Board. Board members include the Regional Workforce Development Board, Stone Academy, Easter Seals, Aces, the State Department of Labor, etc.
The Town originally formed this board, as an advisory group to examine general workforce needs (address hiring criteria, job fairs, etc.) This Strategic Initiative would expand the planning to include important issues such as linkages to transportation, quality childcare, and incorporation of people with disabilities into the workforce.
The Town will also utilize its Job Resource Counselor to develop and coordinate job training and readiness programs with members of the Advisory Board in the following fields:
a. Retail Services
b. Health Care
c. Manufacturing
d. ESL Assistance in various business clusters
Plan Area #4:Planning, Marketing and Technology
Hamden must market its unique strengths and take advantage of the positive climate for business development. To do so, the Town has identified key target industries and companies, trade associations, realtors, and other organizations. One strategic approach was the development of a Hamden web site. Other areas include maintaining an inventory of available development sites and vacant properties, strategic media campaigns, public relations and communications strategies.
To meet this challenge, the Town must engage the public and local professionals for the long range planning of the many business and shopping district in Town.
- Strategic Initiative 4.1: Make the Economic Development Hamden Web Site part of a Business Resource Center
As citizens, real estate professionals, developers and businesses owners increasingly use the internet to gain access to information on potential business development sites, Hamden must continue to become more & more accessible to this audience via the “net”. The Town will develop more timely and educational information such as “How to Start a Business” and other articles generated by the Business Assistance Center (see Strategic Initiative 3.3).
The Town will continue to upgrade the economic development web site link, will provide more frequently updated information on available development sites for major employers, outside users such as our realtor community and links from CT. Economic and Community Development Department web sites etc. It can also offer interactive and video features (e.g. “streaming”) to market neighborhoods or complete applications for our tax incentive and small business loan programs.
The Town also proposes to use its Economic Development Commission site to generate revenue for the continuation of the site.
Strategies employed for developing revenue include:
- Business Yellow Pages.
- Advertising (limited).
· Strategic Initiative 4.2: General Marketing, Continue Recruitment of New Developers, Investors and Businesses
As part of the Town’s marketing efforts, the Town should network in regional, Statewide and national organizations, public and private to bring investment throughout Town. This effort will include attending trade shows, conferences and opportunities for continued education.
The funding for Strategic Initiatives 4.2 – 4.4 are included in one budget line item to allow for flexibility to meet marketing needs.
· Strategic Initiative 4.3: Continue a Town Database of Available Properties and Physical Resources.
In a rapidly changing, dynamic process, the Town must be capable of providing valuable information that is essential for a business to consider developing a given site in Hamden. Information efficiently collected would be located on the Town web site and on a GIS system. Such an updated and accurate database would include:
a. Available locations of high technology infrastructure resources such as fiber optic cable sewer and water capacity, etc.
b. List of available Hamden properties by category (e.g. size, locations) etc.
c. List of Brownfield properties and including opportunities for finance.
· Strategic Initiative 4.4: Continue Planning Linkages to study the Viability of Commercial Districts
There are many areas of Town that have a rich history in terms of business location services to residents. There are also several areas that require a fresh “look” to see if we can use effective planning to change the image of an area to become positive.
This initiative is aimed at using assessment and collaboration with professionals and community-based groups to determine recommendations for the future. Such collaboration is born out of the Comprehensive Planning process that is currently underway.
This initiative will formally link the effort of the Economic and Community Development Department to those efforts and encourage the department to convene other advisory groups to assess other specific needs of business throughout town.
Such efforts include:
· “Magic Mile” retail committee
e. Study of Entertainment and Cultural Enhancement Districts
f. Quality Development of the Farmington Canal Line.
g. Continued Study and Planning for the State Street and Highwood commercial corridor.
h. Strategic Initiative 4.5: Market the Town for the Media (film, etc.)
With a small amount of financial resources the Town will be prepared to market itself through the CT Film, Video and Media Office to make itself film ready.
Exhibit 8 describes this marketing initiative that would make areas throughout Hamden film ready. Providing these opportunities have demonstrated a positive impact on local business as film crews, actors etc. frequent restaurants, gas stations, dry cleaners, retail stores, etc.
Budget Narrative
The Economic Development Commission is asking the Legislative Council to earmark $250,000* from the Hamden Economic Development Fund to support the implementation of this comprehensive plan including the following Strategic Initiatives. *The following numbers reflect new allocations (from the Hamden Economic Development Fund) of funds to be added to what is currently encumbered under the Plan.
Strategic Initiative 1.1: Economic Incentives Program - $50,000.
The Town will offer property improvement grants, tax deferrals and permit waivers for commercial projects that would increase the town’s tax base or be of significant benefit to the Town.
Strategic Initiative 2.1: Hamden Economic Development Corporation $15,000
Support the Corporation by funding start up costs such as legal costs and insurance.
Strategic Initiative 2.2: Predevelopment Fund – $15,000
For costs related to the predevelopment costs of projects for
commercial development.
Strategic Initiative 2.3: Commercial Property Maintenance - $15,000
Funds will be used for maintenance of commercial areas.
Strategic Initiative 3.1: Small Business Loan Program - $50,000
Funds would be used to operate revolving micro-loan and down-payment assistance programs. Loan payments (including previous loan payments) would be returned and fund additional loans at a future date.
Strategic Initiative 3.2: Business Assistance Center - $50,000
Up to $50,000 from the Hamden Economic Development Fund would support the development of the Business Assistance Center.
Strategic Initiative 3.3: Workforce Development -0-
The Job Resource Counselor will continue to administer programs that train people to find jobs through grants from State and Federal sources.
Strategic Initiative 4.1: Web-Site Update - $5,000
Funds would be used to continue the development of the website. Revenue generated from the site would pay for the upkeep.
Strategic Initiative 4.2: Marketing Expenses - $25,000 (also includes 4.3-4. 5)
For recruitment, education and other marketing initiates below.
Strategic Initiative 4.3: Data Base
To develop valuable information that is essential for a business that is considering a specific site.
Strategic Initiative 4.4: Planning
This initiative is aimed at using collaboration and needs assessment to determine recommendations for the future of commercial areas.
Strategic Initiative 4:5: Film Ready Strategy
The Town will be prepared to market itself through the CT Film Video & Media Office to make itself “film ready”.
Strategic Initiative 4.6: Administration - This line item would fund a portion of the Directors salary through the term of his current contract - $40,000.
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