Connecticut is still struggling with the effects of the recession, while Norwalk appears not to have heard the news.
At a recent economic forum in the city, the state”™s slow growth was attributed to a lack of investment in infrastructure and information technology, creating challenges to attracting new businesses and generating taxable dollars.
- Elizabeth Stocker, Norwalk”™s economic development director, at a recent economic forum at the Continental Manor. Photo by Crystal Kang
University of Connecticut finance and economics professor Fred Carstensen addressed some of the state”™s biggest challenges to economic growth during the event, hosted by the Greater Norwalk Chamber of Commerce at the Continental Manor.
But a room of regional business leaders said they believe the number of projects that are shovel-ready in Norwalk will contribute to the state”™s economic growth.
Carstensen said that during the recovery period, the state has neglected to improve its basic infrastructure ”” roads and bridges ”” which serve a vital role in raising capital.
Even though Connecticut is experiencing steady employment growth, Carstensen said the state is producing more low-paying jobs and not enough mid- to high-paying ones. He added that job growth doesn”™t necessarily mean economic growth. There must be a structural base that keeps companies in Connecticut for the long run, he said.
On the topic of information technology, Carstensen said Connecticut”™s 16 data centers combined are smaller than the largest data center in Boston. Emphasizing the importance of investing in more data centers, he said information technology has “geographic and spatial power.”
Carstensen said he was optimistic about Connecticut”™s commitment to bioscience. He said The Jackson Laboratory for Genomic Medicine in Farmington is “winning the lottery” as the state”™s most important venture capital company. As a testament to the growing attractiveness of Connecticut as a bioscience hotbed, he said companies are looking to move near the laboratory.
Timothy Sheehan, executive director of the Norwalk Redevelopment Agency, offered an optimistic economic overview of the city, citing the many redevelopment projects in Norwalk”™s urban corridor.
“I”™m confident 2015 will contribute greatly to the long-term objective of connecting Norwalk”™s urban corridor into a series of cohesive neighborhoods within the larger urban community,” Sheehan said.
- An architect”™s sketch of Head of the Harbor South, a planned mixed-use development on Smith Street.
He said that more than 600 housing units would be introduced to the corridor, including about 400 units in the Waypointe development, more than 100 units at The Berkeley, 60 units at Head of the Harbor South and 102 units at Wall Street Place. F.D. Rich Co. has also started construction on the Sono Pearl Apartments, a 66-unit residential development at 99 Washington St., further adding to the multifamily investment market.
“All the multifamily projects on the books account for over 2,000 units across the city of Norwalk,” Sheehan said. “Norwalk”™s vacancy rate would increase to 9 percent in the short term. That inventory will be quickly absorbed and stabilized and the rate of vacancy will be reduced to 5 percent within 18 months.”
Sheehan said the city”™s redevelopment agency is working with General Growth Properties, a Chicago-based mall developer, to build 500,000 to 975,000 square feet of retail, including public space, a 80,000- to 175,000-square-foot hotel, 175,000 square feet of office space and a 2,500- to 7,500-square-foot educational space at the intersection of Route 7 and Interstate 95.
Elizabeth Stocker, Norwalk”™s economic development director, called attention to the Merritt 7 office park, with 95 percent of its 1.4 million square feet of Class A space fully leased, as well as ongoing construction in the city.
“We have had already over 2,600 building permit issues for the first six months of this fiscal year,” Stocker said. “That”™s close to $2.5 million collected in fees for those permits. The value of those building permits is greater than $142 million, compared to the $167 million value of building permits for the entire year of 2013 and 2014. That just points to the fact that we”™re growing, we”™re continuing to be attractive and it”™s my job and your job to keep us moving forward and working together to do that.”
“I”™m confident 2015 will contribute greatly to the long-term objective of connecting Norwalk”™s urban corridor into a series of cohesive neighborhoods within the larger urban community.”
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