Connecticut

Gun Maker Relocations Limited by Region

A few days ago, Fort Collins, Colorado-based HiViz Shooting Systems announced that it was relocating to Laramie, Wyoming. This is actually one of the first relocations announced in what is likely to be a major gun manufacturing industry realignment, but still provides a pretty clear picture of what’s going to happen.

HiViz Shooting Systems

HiViz Shooting Systems (photo – hivizsights.com)

Colorado is one of the few states that has passed new gun control legislation after the Newtown shootings, along with Maryland and Connecticut itself.

HiViz CEO Phil Howe said the company selected Laramie because of Wyoming’s strong support for gun manufacturers and Laramie’s close proximity to their current facility in Fort Collins, which is just across the state line in Colorado.

Howe added that the fine people at the Laramie Economic Development Corporation (LEDC) and the Wyoming Business Council had worked hard to accommodate their needs and made them feel welcome.

In Maryland, Beretta USA is a major employer with 400 employees and a factory in Accokeek. The company warned state legislators they would relocate if proposed gun control legislation was approved.

Beretta is now being actively wooed by many economic development agencies and state officials. Maine Gov. Paul LePage even wrote an op-ed exhorting Beretta to “Come to Maine.” But it’s Virginia that has the best chance to secure the Beretta relocation because of its proximity to their existing plant and favorable policies for gun makers, same as the CO to WY relocation of HiViz.

In fact, Jeffrey Reh, general counsel for Beretta, specifically mentioned Virginia when he warned MD lawmakers that the last time Maryland had passed tougher gun control laws, the company had moved its warehouse to Fredericksburg, VA, which is again only an hour away from Beretta’s plant in Accokeek, MD.

Texas has scored a couple of gun company relocations including California-based Shield Tactical and Oregon-based Colt Competition, a licensee of Colt which makes competition shooting rifles. But these relocations are more about Texas’ general ability to draw companies from other states, rather than a strategic move by a gun-maker due to adverse legislation.

The main relocation battle, so to speak, is raging in Connecticut where gun makers have a combined impact of $1.3 billion on the state economy and are being heavily courted by many states.

Bristol, CT-based PTR Industries has announced its intention to relocate outside the state, while Southport, CT-based Sturm Ruger has indicated that it will not be relocating.

Michael Fifer, president and CEO of Sturm Ruger, told stockholders the company had a good setup in the state and there was no reason to disrupt it. He even announced an expansion of their facilities to add 18 new jobs.

The Hartford, CT-based Colt Manufacturing Company has not issued any public statements or comments recently about relocating, although they did threaten to do so during a gun control legislation hearing last year before Newtown.

North Haven, CT-based Mossberg & Sons has likewise not made any public statements recently about moving out.

One of the possible reasons that the relocation buzz for gun-makers in Connecticut has been so muted so far is that unlike HiViz and Beretta, they have no easy option a short stroll away that will allow their business and supplier network to continue undisrupted.

Newoak Capital to Establish Subsidiary in Danbury, CT With 100 Jobs

New York City-based financial services firm Newoak Capital announced that they are establishing a subsidiary in Danbury, Connecticut.

Matrix Corporate Center in Danbury, CT

Matrix Corporate Center in Danbury, CT(photo – matrixcorpcenter.com)

The subsidiary, NewOak Credit Services, LLC, will be spending $16 million for the project, which is expected to create 50 jobs in the next one year and up to a total of 100 new jobs over a period of three years.

The company’s Danbury operations will be housed in 10,000 square feet of leased space in the Matrix Corporate Center.

The company will be investing $13 million of its own money, with the remaining $3 million coming from the Connecticut Department of Economic and Community Development (DECD).

This $3 million is being given by DECD as a 10-year loan with a 2 percent interest rate, to be used for leasehold improvements, furnishings, equipment and as working capital. It is a forgivable loan contingent on the company fulfilling its job creation commitments.

Danbury and Connecticut successfully competed for this project against other sites in Arizona, Florida and North Carolina.

James Frischling, president and co-founder of NewOak, said the state government’s commitment to attracting new businesses combined with a strong pool finance and mortgage professionals made Connecticut the ideal choice for the launch of their credit services platform.

Employees working and living in Danbury would not be subjected to the long commutes required to get to and from Manhattan, while still being close enough to catch a train into the City whenever needed.  Not to mention the advantages of cheaper electricity and lower real estate taxes for the company in the Matrix Corporate Center.

DECD Commissioner Catherine Smith said they had put a lot of emphasis on the insurance and financial services sectors in their economic development strategy, because it was an important economic driver in Connecticut.

Smith added that their success in attracting companies such as Newoak would strengthen the state’s global reputation in the financial services industry.

NewOak Capital Markets LLC is a five-year old company founded in 2008, and has advised on assets exceeding $3 trillion for more than 100 clients.

Norwalk Kicks Off Innovative Energy Efficiency Program in Connecticut

A shopping plaza in Norwalk, Connecticut announcing a $285,000 lighting upgrade to improve energy efficiency is good news, but not really that big a deal to attract Governor Dannel P. Malloy, his Department of Energy and Environmental Protection (DEEP) Commissioner Daniel C. Esty, and the State Senator for Norwalk Bob Duff.

C-PACE

C-PACE (photo – c-pace.com)

What makes this particular project special is that it is the first one to be financed under the state’s new C-PACE program. That stands for Commercial & Industrial Property Assessed Clean Energy.

The concept is simple – A business can get financing for qualified renewable energy and energy efficiency improvement projects, and get the project done with little or no upfront investment from their own pockets.

They can pay it back over time through a voluntary assessment on their property tax. After factoring in the utility bill savings from the energy efficiency project, it’s safe to say that most businesses will end up with a net savings.

For example, the Norwalk shopping plaza which has undertaken a $285,000 lighting upgrade will be saving $17,500 per year in reduced electricity costs. The company that manages the property is also planning to get additional C-PACE financing for a 100KW solar project for the site.

They estimate the reduction in their energy bill and the tax credit from the solar project will combine to reduce their total lighting cost by 60 percent. The aforementioned lighting upgrade accounts for another 30 percent reduction, for a total 90 percent reduction in the company’s lighting costs for the building’s exterior.

Gov. Malloy said use of tools such as C-PACE can make energy cheaper, cleaner and more reliable. DEEP Commissioner Esty said that financing innovations were just as critical as technological innovations.

C-PACE is administered by the Clean Energy Finance and Investment Authority (CEFIA), which is supposedly the nation’s first “Green Bank” and was established as a quasi-public agency in July 2011 with a mandate to leverage public and private funds for clean energy deployment projects in Connecticut.

Since the financing it provides to businesses is secured by a property lien, CEFIA is able to raise low-interest funding from the private sector, and does not need government funding.

Apart from Norwalk, 16 other towns and cities in Connecticut have already authorized C-PACE financing. Find out more at c-pace.com.

Navigators Group to Relocate Corporate HQ from NY to CT

Connecticut Governor Dannel P. Malloy today announced that The Navigators Group, Inc. (NASDAQ:NAVG) will move its corporate headquarters and additional operations from New York to Stamford, CT.

The Navigators Group

The Navigators Group (photo – navg.com)

Navigators Group is an international specialty insurance holding company with more than $1.2 billion in annual revenue.

The $25 million relocation project will create 200 jobs in Connecticut over the next five years.

“Navigators’ relocation to Connecticut is great news, not only because it will create hundreds of jobs, but it will also strengthen Connecticut’s global reputation as a leader in the insurance industry,” said Governor Malloy. “Connecticut is looking to attract more companies with this kind of track record for growth and success.”

The company anticipates moving its corporate headquarters from Rye Brook, New York, to Stamford by the fourth quarter of 2013. In addition, Navigators anticipates taking additional space in other Connecticut locations to support other operations.

The company is the latest to reach an agreement with the state under the “Next Five” program administered by Department of Economic and Community Development (DECD).

“When we began to evaluate our options and entered into discussion with the State of Connecticut, we were very impressed not only with the financial package that was offered to us, but by the personal involvement of Connecticut Governor Dan Malloy, Insurance Commissioner Tom Leonardi and Economic Development Commissioner Catherine Smith,” said Stanley A. Galanski, President and CEO of The Navigators Group, Inc.

DECD will provide the company with a ten-year, forgivable loan of up to $8 million at no interest, as well as a grant of up to $3.5 million. All assistance and loan forgiveness is contingent on the company reaching certain job milestones.

This assistance is supposed to help the company purchase needed equipment, make facility upgrades, train employees and offset relocation expenses and other eligible project-related costs.

“Our insurance and financial services sectors are as strong as ever, and companies like The Navigators Group, Inc. realize that Connecticut is the state that offers them many competitive advantages — a productive and talented workforce, access to capital, a responsive and forward-thinking insurance department, and state leaders truly committed to developing a pro-business environment,” said DECD Commissioner Catherine Smith.

Univ. of Connecticut gets Revamped Small Business Development Center

Connecticut’s newest economic development tool is the all-new Small Business Development Center (SBDC) at the University of Connecticut.

Connecticut SBDC

Connecticut SBDC (photo – ctsbdc.org)

The SBDC is a partnership between state and federal government, the MetroChambers of Commerce, and higher education institutions that will provide financial and technical assistance to businesses with 500 or fewer employees.

The revamped SBDC launch was announced by Gov. Dannel P. Malloy, accompanied by U.S. Small Business Administration (SBA) Associate Administrator for the Office of Capital Access Jeanne A. Hulit, along with Connecticut Department of Economic and Community Development (DECD) Commissioner Catherine Smith, and University of Connecticut Vice President of Economic Development Mary Holz–Clause.

“The reinvigorated Small Business Development Center takes our economic development strategy to a new level, combining the academic strength and resources of our flagship university with the knowledge and reach of our chambers of commerce, to bring technical and financial assistance to the sector responsible for the overwhelming majority of our jobs: small businesses,” said Governor Malloy. “When we talk about building a new partnership between state government and the business community, this is exactly what we mean.”

Funding for the five-year $11.6 million program is split between a federal SBA grant and a matching state grant from DECD, with additional financial and technical resources coming from UConn and the MetroChambers of Commerce.

Chris Bruhl, Business Council of Fairfield County president and CEO was also present at the launch announcement.

“The new SBDC will offer a slate of innovative services, increase our interconnectedness with state businesses, and, like many private sector businesses, do more with less,” Bruhl said. “With a statewide network of 11 local SBDC offices, the Center strives to build the local ecosystem, recognizing that small business begins at the local level.”

The expansion will create 16 full-time positions and two part-time positions at the 11 SBDC service centers, which include seven chambers of commerce, five regional UConn campuses, and the Department of Commerce Export Assistance Center in Middletown.

“I am delighted by the generous commitment that the State of Connecticut has made to support the Small Business Development Center at the University of Connecticut,” said SBA Associate Administrator Hulit. “In this critical time, when job creation is on everyone’s mind, the partnership between the SBA and its state partners is more important than ever.”

Amazon to Invest $50M for Distribution Center in Connecticut

Connecticut Governor Dannel P. Malloy and Amazon.com, Inc. (NASDAQ:AMZN) today announced that over the next two years, the company will invest $50 million in Connecticut and create hundreds of new full-time jobs.

Amazon

Amazon (photo – amazon.com)

The Governor also announced that an agreement had been reached under which Amazon will begin collecting sales tax revenue for online sales originating from Connecticut.

“All in all, this is a win for our state’s taxpayers, our main street retailers, and our workforce,” said Governor Malloy. “Amazon’s multi-million dollar investment and the hundreds of jobs that will come with both the construction and operation of their future facility will unquestionably boost our local economy. Their agreement to begin collecting revenue is a great step, but federal action on this issue is still necessary.”

Under current federal law, out-of-state retailers cannot be required to collect tax on sales to Connecticut . The state forced the issue by making local Amazon affiliates pay the tax. Amazon responded by cutting off all business relations with their CT-based affiliates.

Amazon is now prepared to set up a physical presence in the state in the form of a distribution center, and start collecting and remitting state sales tax starting November 1, 2013 – prior to the holiday season.

“We thank Governor Malloy for his strong commitment to Connecticut jobs and investment,” said Paul Misener, Amazon vice president, global public policy. “These are good paying jobs with good benefits that will contribute to the fabric of Connecticut communities. We are delighted to make this announcement today, and look forward to working with Governor Malloy toward passage of the legislation now being considered by Congress that would finally resolve the sales tax issue, level the playing field for all retailers, protect states’ rights and allow states to collect the revenue owed.”

Connecticut is expected to receive $15 million in additional annual tax revenues from Amazon. Also, the state did not have to offer any incentives to Amazon for the $50 million investment to set up a distribution center, and the 300 jobs the company is expected to create over the next two years.

“It’s a great result for our consumers and businesses, state and local revenue, new investment and new jobs,” said Connecticut Department of Revenue Services (DRS) Commissioner Kevin Sullivan. “Amazon is a great company. Good tax policy can be good business policy too.”

National Governors Association Report on Advanced Manufacturing

A new report published by the National Governors Association (NGA) chronicles the progress of eight states in preparing new strategies intended to build a foundation for success in advanced manufacturing.

NGA advanced manufacturing report - Making Our Future

NGA advanced manufacturing report – Making Our Future (photo – nga.org)

The report is titled “Making” Our Future: What States Are Doing to Encourage Growth in Manufacturing through Innovation, Entrepreneurship, and Investment.

It was prepared by the NGA Center for Best Practices, with support and collaboration from the U.S. Commerce Department’s Economic Development Administration (EDA) and National Institute of Standards and Technology (NIST) Manufacturing Extension Partnership Program.

“We are committed to supporting American businesses and workers in advanced manufacturing, which will help create jobs and strengthen our economy while boosting our global competitiveness,” said Acting U.S. Commerce Secretary Rebecca Blank. “The Commerce Department is proud to have partnered with the National Governors Association to produce a report that will undoubtedly prove valuable in helping our nation’s governors grow their local economies.”

The eight states whose strategies are outlined in the report include California, Colorado, Connecticut, Illinois, Kansas, Massachusetts, New York and Pennsylvania. Together, these states represent 30 percent of total manufacturing gross domestic product, one-third of U.S. manufacturing jobs and more than 25 percent of U.S. exports of manufactured goods.

Teams from these states participated in an intensive, year-long strategic planning process under the NGA Policy Academy to support advanced manufacturing. The interesting policy aspects developed by each state, and how it fits into an overall pattern of best practices for other states, are described in detail starting from page 21 in the report.

Excerpts below:-

Although the eight states arrived at their agendas independently of one another, their agendas are remarkably similar in key issues and priorities… Four objectives rose to the top across all states as the focus for their strategies:

- Pursue an integrated approach to developing an advanced manufacturing strategy, connecting large and small manufacturers, as well as state, federal, and regional partners;

- Develop and implement industry-driven priorities and partnerships;

- Boost the innovation and commercialization capacities of manufacturers, particularly small and midsized firms, by connecting them to partners, consortia, and a whole system of supports; and

- Provide talent both to fill the immediate specialized needs of employers and to deliver lifelong, industry relevant training for workers at all levels.

Broadly, there were three approaches to strategy development:

- Using statewide councils comprising large, midsized, and small manufacturers(Pennsylvania and Massachusetts);

- Emphasizing a regional, bottom-up process, involving a series of meetings of local public and private stakeholders (Colorado, New York, and California); or

- Assembling, improving, and coordinating activities that are already in progress (Kansas and Connecticut).

“Manufacturing in the U.S. is changing,” said Pennsylvania Gov. Tom Corbett. “It is important that governors continue to learn so they are able to determine the best way forward, ensuring good businesses and jobs for our citizens.”

Read the full “Making” Our Future report – Download (pdf)

Univ. of Connecticut $1.5B STEM Expansion to Create 4050 Jobs

Connecticut Governor Dannel P. Malloy was joined by University of Connecticut (UConn) President Susan Herbst and others to announce a $1.54 billion investment on a Science, Technology, Engineering, and Mathematics (STEM) expansion for UConn.

Next Generation Connecticut

UConn President Susan Herbst with Ct Gov. Dannel Malloy for Next Generation Connecticut initiative. (Peter Morenus/UConn Photo)

Over the next ten years, the curricular expansion and focus on STEM is expected to attract $270 million in research dollars and $527 million in business activity.

The proposal will create 30,000 construction jobs and support 4,050 permanent jobs.

“Connecticut used to lead the world when it came to innovation—we had more patents, more groundbreaking discoveries than anywhere else in the world. Somewhere along the way the world caught up. This is about to change,” said Gov. Malloy. “By targeting state resources to our flagship university we ensure that our young people have the skills they need to fill the jobs we are so aggressively pursuing. Make no mistake, we are making Connecticut competitive again.”

Highlights from the “Next Generation Connecticut” proposal:-

-          $137 million in state funds to support a 30 percent increase in enrollment at UConn—adding 6580 students and 259 faculty to the UConn Storrs and UConn Stamford campuses;

-          Expansion of the School of Engineering by increasing enrollment by 70 percent;

-          A 47 percent expansion in the total number of Science, Technology, Engineering, and Mathematics (STEM) graduates; and

-          $1.54 billion in bonding to construct new STEM facilities, build out teaching and research labs, upgrade information technology, and renovate and build additional housing and parking.

“This initiative will create and support the very jobs we need to be an economically vibrant and successful state in the future,” said UConn President Herbst. “In this era, more than ever, states must rely on their public research universities to be the backbone and the driver of economic success – and that is exactly what this proposal would accomplish.”

The plan also calls for the addition of 50 STEM doctoral fellowships and creation of the premier STEM honors program in the U.S.

“This is an investment in attracting and retaining some of Connecticut’s most talented students and setting them on path to compete for jobs in science, technology and engineering,” said Senate President Donald E. Williams, Jr. “Over the last two years, Connecticut and its flagship university have partnered to position the state as leader in fostering the biomedical and technology driven jobs of a new economy.”

Part of the investment will be used for relocating the Hartford campus to improve accessibility, strengthen collaboration with regional business, and addition of real-world internships to help students launch careers.

“This initiative will fuel Connecticut’s economy with new technologies and companies, patents, licenses, and high-wage STEM jobs,” said Lt. Governor Nancy Wyman. “UConn will be not just a great place to get an education, but will be a driver of job creation and economic growth now and for generations to come.”

Read more about the Next Generation Connecticut plan – Download (pdf)

CT Bioscience Innovation Act Would Establish $200M Fund

Connecticut Governor Dannel P. Malloy proposed the Bioscience Innovation Act which, over ten years, will establish a $200 million fund to strengthen Connecticut’s bioscience sector.

Jackson Laboratory for Genomic Medicine rendering

Jackson Laboratory for Genomic Medicine rendering (photo – jax.org)

The Governor made the announcement at the Farmington groundbreaking ceremony for the Jackson Laboratory for Genomic Medicine (JAX).

Also present was Dr. Edison Liu, president and CEO of Jackson Lab. JAX Genomic Medicine, once fully developed over 20 years, is expected to support 6,800 permanent jobs.

The state has approved $291 million in bond funding to partially cover the project’s $1.1 billion research and capital budget.

“Eighteen months after proposing the Jackson Lab project, we already have construction crews at work, JAX has hired staff, and we are breaking ground on a cutting-edge scientific facility that will establish innovative new partnerships with our universities, medical centers, and state businesses,” said Governor Malloy. “Building on this momentum, I am proposing the Bioscience Innovation Act.”

Gov. Malloy added that the $200 million fund investment, made over ten years, “will ramp up our bioscience industry statewide, allow us to attract and invest in more companies in this sector and create good paying jobs with good benefits for our residents.”

The fund will be administered by Connecticut Innovations, the state quasi-public economic development entity. The state will invest $10 million annually for the first two years, $15 million annually for the 3rd and 4th years, and then $25 million annually for the remaining six years.

Investments will be subject to a rigorous vetting process, supported by the creation of an advisory board to provide oversight and strategic guidance.

“Ongoing investment in bioscience will result in high-value job growth,” said Claire Leonardi, executive director of Connecticut Innovations. “This plan ensures we continue to build a strong base in the short term, and in the long term it allows us to leverage additional investment to increase overall economic growth.”

The Bioscience Innovation Act is part of the legislative package scheduled to be announced by Connecticut on February 6, 2013.

$7.3M EDA Grants for Economic Recovery – WEDC NY Gets $500K

Acting U.S. Commerce Secretary Rebecca Blank announced $7.3 million in Economic Development Administration (EDA) grants to Connecticut, New York, Rhode Island, Vermont, and Wyoming, to help communities in those states recover economically from recent natural disasters.

EDA Recovery

EDA Recovery (photo – eda.gov)

“The EDA grants announced today will help several communities that suffered extensive flood and other damage to rebuild infrastructure that is crucial for strengthening their local economies,” said Secretary Blank.

These grants are beings sourced from the $200 million appropriation made by Congress to EDA to help communities that received a major disaster designation in between October 1, 2010 and September 30, 2011 with long-term economic recovery and infrastructure support.

One of the grants announced is a $488,000 EDA investment in the much-lobbied for Women’s Enterprise Development Center (WEDC) to fund the establishment of a Hudson Valley satellite office of the WEDC at the Hancock Technology Center at Marist College in Poughkeepsie.

“This is an incredibly important investment to attract new businesses and jumpstart economic development in Hudson Valley communities that are struggling to recover from natural disasters,” said U.S. Senator Kirsten Gillibrand, who advocated for this funding in October at OXYVITA in New Windsor. “We need to do more than just get back to where we were before these storms. We need a long-term strategy to strengthen our economy, open more businesses and create more jobs so the Hudson Valley can thrive for years to come. This targeted investment can help us – by equipping more entrepreneurs with the resources they need to turn their good ideas into growing businesses.”

The new WEDC satellite center at Marist College plans to offer dislocated workers — unemployed due either to natural disasters or a challenging economy — viable economic livelihoods as entrepreneurs.

“Our primary focus has been in Westchester County and we now are eager to set up a Mid-Hudson Valley satellite office at Marist College where we can reach the growing number of small business owners in that area to help them grow successful enterprises,” said WEDC executive director Anne Janiak.

The Central Connecticut Regional Planning Agency is getting $170,742 for the development of a disaster resiliency plan for central Connecticut, which was severely affected by Hurricane Irene in 2011.

The CT study will identify vulnerabilities in the region’s power generation and transmission systems, transportation network, and flood control improvements, and will develop a plan for a prioritized, coordinated response to future disasters.

In Rhode Island, a $6 million EDA grant to the Quonset Development Corp. and the Rhode Island Department of Transportation will fund reconstruction of the Zarbo Avenue Bulkhead at the Quonset Business Park in North Kingston. According to grantee estimates, the EDA investment will retain or create more than 100 jobs and generate $4 million in private investment.

1 2 3  Scroll to top