UConn’s decision to move its West Hartford campus to downtown Hartford should be a boost to the Capital City. The arrival of 3,000 students and faculty will undoubtedly inject new life and energy into downtown and create a new customer base for local businesses.
But the way the deal is coming together has gotten ugly, and raises questions about the best way to develop Hartford to create long-term economic growth.
UConn publicly acknowledged last week it has chosen the old Hartford Times building as its preferred location for its campus. Hartford city officials, however, voiced opposition to UConn’s choice, arguing that an education institution would divide the Front Street area and prevent it from developing further into an entertainment district.
Harford Mayor Pedro Segarra and City Council President Shawn Wooden are right to raise concerns about dividing Front Street, which is finally gaining steam with the addition of several new tenants, including Spotlight Theatres, Capital Grille, Infinity Hall, and Ted’s Montana Grill.
But dividing Front Street shouldn’t be the top concern. What Hartford really needs is to expand its tax base, and UConn’s move into Hartford Times wouldn’t do that. As the state’s flagship public university, UConn would be exempt from paying city property taxes.
What’s more The Thomas Hooker Brewing Co. of Bloomfield also expressed interest in moving its operations to the Hartford Times building, which is currently owned by the state. That would add another unique tenant to Front Street and potentially expand the city’s tax rolls.
Hartford’s oppressive commercial tax rate — over 70 mills — creates difficulty attracting new businesses. In fact, few private developments occur in Hartford without some type of tax or incentive deal from the city or state. That’s why the addition of Thomas Hooker Brewing Co. is so attractive.
Of course, it’s not clear if the Bloomfield brewer is asking for its own incentive deal to move downtown. And, there is no guarantee the state would sell the building to Thomas Hooker.
Still, the debate over UConn’s campus relocation raises larger questions about how best to develop Hartford.
Since taking office in 2011, Gov. Dannel P. Malloy has made it a priority to help revitalize the Capital City. He created the Capital Region Development Authority, which is now playing a leading role in economic development decisions in downtown Hartford. Malloy has also poured tens of millions of dollars into the city with the state’s purchase of two major office buildings and investments in housing projects.
No doubt, Malloy is being kept in the loop about UConn’s downtown Hartford move as well.
The Democratic governor should be applauded for his pro-Hartford mantra.
But Malloy, CRDA, city officials, state lawmakers, and business leaders need to develop an economic strategy that goes beyond simply adding more state government and tax-exempt organizations in Hartford.
Already, 51 percent of the property in the city is tax-exempt because it is owned by the state, educational, nonprofit or religious groups. That has shifted the tax burden onto businesses, which have increasingly fled Hartford over the years to find lower cost environments.
UConn’s tax exempt status shouldn’t preclude it from coming downtown. They will be a welcome addition.
But Hartford’s long-term well-being is best served by growing the private sector. And that should be top of mind when deciding where to locate UConn’s new Hartford home.
