A future with choices
Mayor Perez makes an indelible
mark on city economic development efforts
Capital Ideas
By Philip
Moeller
Whether 40 or 14 or even just four developers
respond to the state’s RFQ (Request for Qualifications) for developing
Front Street, it’s clear that a seldom-used word is returning to
Hartford:
Choice.
People and companies are interested in investing
here. Real estate deals are percolating to boost downtown housing.
Mayor Eddie A. Perez wants more, and said in a lengthy interview this
week that he would even like to see if WFSB’s Broadcast House could be
part of an effort to have housing in Constitution Plaza, once the
station moves to its new home in 2007 and the city takes control of
the studios there.
The mayor also quashed rumors of any move out of
City Hall — a gorgeous building but not the most efficient digs for
office space in 2004. City Councilman Dr. Robert Painter, and others
in past years, have floated the idea of having the adjacent Wadsworth
Atheneum take over City Hall, in a deal that would allow construction
of a showplace facility elsewhere. “That’s a non-starter,” Perez said.
He thinks City Hall is already a showplace and that it oozes the sense
of stability and substance that he wants associated with the city.
And if choice is a new word, let’s hope
it replaces another word that has been overused in describing the
city’s office market: moribund. The recent sale of the
280 Trumbull St. office building for $65 million was a strong vote for
downtown real estate. The Goodwin Hotel and office complex is also on
the sales block. Rental activity has also picked up, although there
remains lots of space to absorb.
Having choices is a terrific, albeit
strange, concept for many in the city. Having an activist mayor who
understands the development process also has taken some people by
surprise.
Last winter, Perez bucked conventional
wisdom, and former Gov. Rowland, and rejected a state-brokered deal to
sell and renovate the downtown Hilton. “Everybody thought we were
crazy,” the mayor said last week.
But in a short time, Perez pulled in new
bidders for the Hilton project and wound up doing business with the
Waterford Group and its owners, Len and Mark Wolman, who also are the
master developers for Adriaen’s Landing. The deal was far more
favorable to the city, and to the Hilton’s employees, than the
original plan.
He also wound up looking very good in
working out a deal with WFSB to keep its headquarters in the city.
More than a symbolic victory, plans call for the station to invest $20
million in a new building that will help reduce the asphalt wasteland
that now sits at the northern edge of downtown.
"Adam Smith was
a good guy at the
end of the day."
–Eddie A. Perez,
Mayor,
Hartford
“I want people to make a long-term
commitment to the city . . . to own and occupy their buildings,” Perez
says in describing his development priorities.
The state’s efforts to develop the
Front Street component have also been in the mayor’s
sights. Capital Properties, which is redeveloping Constitution Plaza,
was recently removed as Front Street developer by the Capital City
Economic Development Authority (CCEDA).
There is likely to be an extended
debate, perhaps in court, over who did or didn’t live up to their end
of the deal. But with Front Street already seriously
behind the completion timetable for the adjacent convention center and
Marriott hotel, CCEDA needs to move quickly to find one or more
developers.
The city controls some small but key
subsidies for Front Street, and Perez is concerned about
the city’s lack of formal participation in selecting a developer.
“It’s not the same as the city driving the train,” he says. “We’re on
the caboose, along for the ride.”
Perez is specifically concerned that
CCEDA might chose multiple developers for Front Street,
greatly complicating the negotiating process for the city’s subsidies.
He met last week with CCEDA officials, and agency spokesman Dean
Pagani says the mayor’s concerns are well founded and that the city
will be brought into the deliberative process.
“We clearly recognize and agree with the
mayor that it would be better for him, and better for the city, to be
involved as early as possible in the process,” Pagani said.
Ironically, the state government’s new
push to avoid even the appearance of impropriety in granting contracts
limits how much the city can be included, he added, but there will be
regular CCEDA meetings with the city. Pagani agreed that having a
single developer for Front Street might be preferable,
but that CCEDA needs to maintain a flexible approach to getting the
project done as quickly as possible.
Perez emphasized last week that one of
the reasons he wanted to be mayor is because “the city began giving up
on itself” and often avoided taking responsibility for what happened
within its borders. This was certainly true with economic development,
but it’s no longer the case. The public-private Hartford Economic
Development Commission is moving back into the city’s fold under
development director John Palmieri.
While the mayor clearly seeks more
control over development, he also says City Hall has been working to
create more efficiency, clarity and accountability within city
government.
He’s had to oversee an austere budget
situation and has cut 300 people from city payrolls. “No one is going
to give us credit for what we’re doing in personnel,” Perez says, but
“we’re more efficient as a government.”
Now, with the city’s fortunes turning
up, the mayor wants to focus on managing the top line of the city’s
budgets — revenues — rather than just focusing on cutting expenses.
“We need to maximize our ability to grow the Grand List” and also
concentrate on economic developments that enhance
Hartford’s role as “the hub for economic development for the region.”
Perez, who has an economics degree from
Trinity, says his active involvement in economic development should
not be confused with wanting to control what businesses do. By giving
businesses clear development rules and regulations, and setting forth
the city’s needs, he says he is comfortable that businesses will know
what to do.
“I know that the market, left to its own
devices, does magical things,” Perez says. “Adam Smith was a good guy
at the end of the day.” |