With the third lowest tax rate in the region and a strong commitment from local businesses to staying in town, Farmington has weathered the economic downturn better than most Hartford-area communities. The town’s low commercial vacancy rate, coupled with higher-paying professional jobs and a sought-after quality of life, are all bolstering the town’s position as a leading hub for central Connecticut economic development.
The town’s ratio of 26 residential to 74 commercial has remained steady for the past three years, according to Courtney Hendricson, Farmington’s economic development director.
“That’s a very strong ratio, and we feel good about that,” Hendricson said. “We have lower vacancies than surrounding towns. We have space being filled regularly, or businesses staying put, and both of those things are good.”
The town’s mill rate recently surpassed 20 mills, but it was the first time it’s reached that level since the 1980s.
“The point is, we keep the tax rate really low, and part of that is our strong commercial space,” Hendricson said. “I’m able to recruit and retain. Incentives aside, you’re going to have a lower tax bill here in Farmington.”
One of those incentives is the bioscience zone surrounding the University of Connecticut Health Center, designated by the legislature last session. Bioscience businesses that move into the zone get tax breaks, both from the town and from the state.
Even without incentives, several businesses are moving to town from other nearby towns, or are planning renovations of their current space. Larger businesses include the banquet facility, Farmington Gardens; a Tractor Supply store; FIP Construction, which moved from Cheshire; the Pert Group, which moved from Bloomfield, and Nutmeg TV, which moved from Plainville.
Meantime, space formerly occupied by Hamilton Sunstrand at 1690 New Britain Ave. is being renovated for a possible new tenant, and the long vacant Parsons Chevrolet site has recently been purchased by McPhee Electric.
According to a 2010 Pert Group survey of 155 businesses in Farmington, businesses have a favorable view of the town as a whole. Eighty-six percent of businesses reported plans to stay in town for the next three- to five years. One-third of businesses expect to hire in the next three- to five years, and 56 percent expect employment levels to remain steady.
These findings are reflected in the Connecticut Economic Resource Center’s studies as well. CERC’s latest report, from 2009, ranked Farmington third in the state in employment growth, eighth in number of work sites and fifth in growth of retail establishments. The town has more jobs – 31,000 – than it does residents, at approximately 26,000.
Robert Santy, CERC’s president and CEO, said the actual numbers are not very indicative of major growth, but there has not been a lot of growth in the region as a whole. He said several factors contribute to Farmington’s relative success.
“The balance of the grand list is a big piece,” he said. “It does two things: it has jobs right in town and it keeps the residential tax base relatively low compared to the rest of the region.”
He said Farmington’s close proximity to the capital city and its direct access to Hartford and major highways also give it a boost.
“Farmington is on an established transportation corridor, and that doesn’t hurt,” he said. “Transportation infrastructure is really the driver of economic growth.”
The quality of the town’s education system, amenities and general quality of life are also considered factors in Farmington’s success.
According to the town’s business survey, 23 percent of businesses cited “quality of life” as being the best thing about being located in town. “Location” and “highway access” were also highly rated.
Bill Campbell, chairman of the town’s Economic Development Commission and vice president of Utility Power Supply Co. in Farmington, said all of the positives about Farmington are responsible for the town’s holding steady in the faltering economy.
Campbell said the future looks even brighter, with recent expansions at UConn Health Center and the establishment of the bioscience zone.
“I think that’s going to be a boon for the Farmington area, bringing in both public and private money,” Campbell said. “Greater Hartford is known as the insurance capital of the world. We’ve lost a little of that, but I’m hoping Farmington and other surrounding areas can grab on to bioscience and genome technology; we need something we can tout.”
Campbell said the trickle down from bringing new businesses and new jobs to the area will be impactful.
“You look at the infrastructure needed to support something of that size, just to support more people on the Farmington (UConn) campus and the surrounding medical office park,” Campbell said. “Right down to the mom and pop delis, the dry cleaners, restaurants, printing companies and other service-type companies – employees need places to go to do their day-to-day activities.”
Â
