🔒Private investment in state assets? CT should explore it

Connecticut residents and business people who fly out of New York got welcome news recently with the announcement that JFK Airport will undergo a planned $13 billion renovation.

The proposed makeover will transform one of the nation's busiest and most crowded airports into a modern 21st-century travel hub, with two new terminals that will increase JFK's capacity by at least 15 million passengers a year.

That will likely create added competition for Windsor Locks' Bradley International Airport, which competes for travelers in southern Connecticut.

However, that's not the most important takeaway from the JFK renovation plan. The biggest headline, in my mind, is that the project will be primarily funded by private investment. In fact, $12 billion of the $13 billion price tag will be picked up by the private sector, including airlines, developers and other investment groups.

During this election cycle, we've heard all three major Connecticut gubernatorial candidates mention the need for more private investment in the state, including on projects or assets traditionally financed by the public.

In fact, “public-private partnership” has become one of the buzzwords on the campaign trail as candidates espouse the need for better private-sector engagement on projects ranging from renovating the XL Center to rebuilding our roads and bridges.

Of course, this isn't a new concept, but Connecticut's short- and long-term fiscal challenges are making it harder to finance major investments in key public assets that are wearing down or in need of modernization. Even still, there is a healthy dose of skepticism in the Land of Steady Habits about private investment, for fear investors will demand to high of a return or that state unions will lose control over their stranglehold of state government.

To be clear, I'm not advocating selling off all of Connecticut's assets to the highest bidder. Indeed, state and local governments must carefully vet entities wanting to invest in public amenities to ensure residents don't end up getting hosed in the long run.

What I am saying is that state government must consider engaging private-sector investors in a much more meaningful way, to see if there are viable alternatives to racking up more debt on the state's beleaguered credit card.

We saw one recent example, when the General Assembly required the Capital Region Development Authority to go out to bid for a potential buyer of Hartford's XL Center, which is in need to tens of millions of dollars in renovations.

The response wasn't overwhelming — Chicago private-equity firm Oak Street Real Estate Capital was the lone bidder — but it's crucial for the state to explore all potential financing options before asking taxpayers to pick up the tab on a money-losing building that is seeing fewer events year after year in an increasingly competitive market.

Meantime, several candidates have talked about the need for more private investment at Bradley Airport. Earlier this year, Bradley's overseers — the quasi-public Connecticut Airport Authority — unveiled an ambitious $1.4 billion master plan that would prepare the state's largest airfield for millions of additional passengers over the next two decades. Plans include opening a new terminal, but financing remains a big question.

Yes, JFK is a much bigger and more attractive investment option — it serves about 60 million passengers a year vs. Bradley's 6 million — but why shouldn't Bradley, which is considered one of this region's most important assets, be able to attract private investment of its own?

I don't have the answer but we ought to find out.

Private-sector investment in state assets won't solve all of our problems, but it could be part of the solution.