Hartford’s future economic fortunes will rest largely with the successful completion of many small-to-midsize projects, rather than any one single development, according to Mayor Pedro Segarra.
Whether it’s the conversion of Coltsville into a National Park, the addition of 200 apartment units in the old Sonesta hotel, or getting Front Street fully occupied with a mix of restaurant and entertainment venues, creating synergy that boosts foot traffic and attracts businesses to the Capital City will require a coordinated effort.
“There is not going to be any one thing that sparks a rebound for the city,” said Segarra, who was recently sworn in to his first full term of office. “It’s going be a lot of different little things that happen together that will make for a more vibrant city.”
Segarra recently sat down with the Hartford Business Journal to discuss his top economic development priorities for the next four years. His challenges are many, and an ailing economy is chief among them.
Downtown office and retail vacancies are hovering near all-time highs putting further pressure on city budget revenues. Hartford’s unemployment rate stood at 15.1 percent at the end of November, matching the national figure.
But the soft-spoken Segarra remains optimistic.
Besides pushing forward and completing the dozens of economic development projects underway, Segarra said education and tax reform as well as improving public safety are also major issues that need to be addressed.
On the tax front, the city began making changes to its tax code in 2011 and those changes should bring some relief to commercial property owners who have long complained that the costs of doing business in Hartford have sapped the city’s economic vitality.
The reforms include the elimination of a special tax surcharge on commercial property and creating steps to more closely align the assessment ratio for residential and commercial property.
The city also slightly lowered its tax rate to 71.79 mills from 72.29 mills, a decline of less than 1 percent.
Segarra said the changes won’t have a major impact immediately, but they “send a very clear message for those that want to invest here,” that it is no longer business as usual in city hall. He said the days of automatic mill rate increases of five percent or more will no longer be commonplace as his administration takes on a more fiscally conservative approach to spending.
To try to buffer the city’s coffers, however, Segarra said the city is exploring a potential payment in lieu of taxes program aimed at larger nonprofits, an idea sure to stir controversy.
Non-profit organizations are exempt from paying property taxes. But some cities and towns use a payment in lieu of taxes program to require nonprofits to make some type of payment to the municipality to help cover the cost of providing essential city services.
Boston is one of the most recent cities to adopt such a system.
In Hartford, 51 percent of property is tax-exempt because it is owned by the state, educational or religious groups. Only the state reimburses the city for some of that lost revenue.
It’s not clear when or if such a program would be implemented.
Reducing blight, both large and small, is also a major issue, Segarra said. The city has set aside $4 million for a new sustainable communities initiative that will be used to repair run-down properties, improve decaying sidewalks and remove trees as part of an effort to raise the quality of living standards in all sections of the city.
In addition, demolition on the recently acquired Capitol West building could begin in March, removing an eyesore that greets travelers on Interstate 84 as they approach downtown Hartford.
Just over a year ago, the city leveled another eyesore under Segarra’s watch, the former H.B. Davis department store-office building on Main Street, derided by locals as the “Butt Ugly Building.’’
There are no plans for what will go into either space, Segarra said, but the city will ‘green’ the area and possibly add artwork or sculptures in the short-term.
Segarra said he also hopes to improve his office’s interactions with small businesses by retooling the economic development agency. He said the agency needs to be more visible and improve its outreach efforts.
On the housing front, Segarra said he expects construction on new apartments in the former Sonesta hotel to begin this year, providing a much needed boost to the downtown housing stock.
Other residential projects are slated for the former Capewell Horse Nails factory site and the Capitol Center property at 370 Asylum St.
Segarra said he also anticipates the Front Street movie theater opening this summer, and he is working aggressively with the congressional delegation to get National Park recognition for Coltsville, which would help bring in more money to further renovate the site and build a museum and visitors center.
“If the city can effectively manage all of these small projects, it will have a major impact,” Segarra said.
Hartford Mayor Pedro Segarra discusses his top economic development priorities.
