Policies at the state”™s Department of Economic and Community Development are likely to continue for at least the foreseeable future. After all, DECD Commissioner David Lehman told the Business Journal, why argue with success?
He has enjoyed an impressive run of successes since being confirmed as commissioner in March 2019. This year alone has brought news of relocations to Fairfield County from Philip Morris International (New York City to Stamford), ITT (White Plains to Stamford), and Webster Bank, which after its $10.3 billion merger with Sterling Bancorp is creating a new corporate headquarters in ”” that”™s right ”” Stamford.
In addition, companies like Sema4, Tomo Networks and Digital Currency Group are expanding their Stamford presence, while fintech iCapital Network is opening a Greenwich location.
Lehman said the strategy of selling such companies has “remained steady even pre-Covid. We”™ve been able to make the case for what makes Connecticut great ”” the education, health care, quality of life and the fact that we have a combination of small and mid-size cities and more rural areas that have proven to be attractive during the pandemic.”
He said that the state”™s value proposition is proven by the numbers: 40,000 new businesses were registered in Connecticut last year, and over 20,000 new residents moved in.
“All of this is due to the efforts being made across the state government,” Lehman said. “That includes AdvanceCT” — the state government”™s economic development entity ”” “and (Gov. Ned) Lamont, who”™s the first businessperson to run this state in three decades. He”™s very business-focused.”
Lehman said the state continues to have a “robust pipeline” of companies looking to move to or expand in Connecticut, though he declined to provide specifics. “There could be one or two announcements after the Thanksgiving holiday,” he said.
Lehman also touted the fact that under Lamont, the state has passed two consecutive budgets with no tax increases, has finally begun paying down its pension debt and has a “best-in-class” rainy day fund.
Still, he said, “Is what we”™re seeing right now going to be the trend for the next generation? It”™s too early to tell. One or two years don”™t make a trend.”
Under Lamont, the state rolled out in October an “economic action plan” that includes a package of initiatives totaling more than $750 million over five years, matched approximately dollar-for-dollar by private and other nonstate funding that will result in a projected 80,000 new jobs.
Contained within the plan are the Innovation Corridor Program, wherein DECD will select two or more proposals for major urban areas or regional economic centers. The projects are designed to facilitate the creation of at least 15,000 new jobs in data science, advanced manufacturing, insurance technology or other high-growth industries; the department expects to grant up to $100 million in total over five years.
Knowledge-harvesting is also at the core of the Connecticut Communities Challenge program, where DECD will provide grants of between $1 and $10 million to fund a range of projects that “improve livability, vibrancy and appeal of communities throughout the state while aiming to create approximately 3,000 new jobs.” Lehman said the department is aiming at allocating up to 50% of the funds to projects in distressed municipalities.
Stamford could well end up being a part of both initiatives, the commissioner acknowledged. “We need places that have a certain concentration of companies and people,” he said. “Something that”™s analogous to Cambridge in England or, more obviously, Silicon Valley.”
Meanwhile, Lehman said he did not foresee the DECD offering another round of loans or grants to small businesses, as it did at the height of the pandemic.
“We ”” the Department of Labor, myself and my team — look very closely at the weekly and monthly unemployment numbers,” he said. “And we”™re seeing people returning to work. We don”™t think that, with the federal money that”™s been coming in and inflation, that we”™ll need to do something like that again.”
He allowed that the restaurant and related hospitality industries are still hurting, with business travel and conventions yet to return to pre-Covid levels.
“We work closely with (Connecticut Restaurant Association President and CEO) Scott (Dolch) and his team,” Lehman said. “We”™ve helped them with outdoor dining, flexibility with delivery. And, by and large, a lot of restaurants right now are very well populated.
“Could that change in January and February? Yes,” he continued. “But we have an excellent communications system between the state and the restaurants.”
As for the tourism sector, which also falls under DECD”™s remit, Lehman said that $24 million in marketing dollars has been set aside for the terminally underfunded state office of tourism, and expressed confidence that Noelle Stevenson, who began earlier this month as its new director, is the right person moving forward.
“It”™s a matter of new leadership and bringing fresh eyes” to the office, Lehman said. “Randy (Fiveash, the longtime director who retired in April) was phenomenal, but Noelle will bring a new perspective.”
All told, Lehman said, “I remain very, very positive about where things are and where they”™re going.”
