Hartford and Bridgeport top list of metro areas with Highest GDP's

I just came across the Brookings Institution’s report Global Metro Monitor 2011 which ranks the highest and lowest per-capita GDP’s from 200 metropolitan areas around the world.

Which city tops the list with the highest GDP? A small city called Hartford, Connecticut (shocking, I know). The list was generated using data from Oxford Economics, Moody’s Analytics and the U.S. Census Bureau. Hartford came out as number one and Bridgeport number 5. This puts these two locales ahead of cities like New York, Paris and Zurich.

Before I go any further you must understand that this ranking is not solely for Hartford. It’s for the metropolitan statistical areas (MSA) which means these results are reflective of the metro Hartford area which is made up of 57 towns in Hartford, Tolland and Middlesex counties. The Bridgeport-Norwalk-Stamford MSA includes all of Fairfield County aka the Gold Coast.

What does this ranking mean exactly? I’ll leave that to George Hladky’s article Why are Hartford and Bridgeport on a Brookings Institute list of the wealthiest metropolitan areas? He says that “if you take all the money and the value of the products those companies [see below] are making and divide it by the number of people living in that region, you end up with a figure for the per capita gross domestic product.” Those companies he’s referring to include names synonymous with Connecticut – Aetna, Travelers, UTC, Hamilton Sunstrand, Cigna, The Hartford and Pratt & Whitney.” It is crucial to understand that these rankings reflect the entire metro area because some of the companies that contribute to this GDP figure have relocated (or are located) outside of Hartford and Bridgeport.

The Brookings Institute list puts the Hartford area’s GDP at $75,086 and Bridgeport’s at $63,555.

Anyone who knows Hartford and Bridgeport must have a horribly puzzled look on their face.

I want to now leave everyone with some food for thought from 2010 census.

In 2010 the City of Hartford’s population was 124,775
67.9% of residents age 25+ are high school graduates in Hartford (statewide it’s 88.4%)
13.3% of residents 25+ have a bachelor’s degree or higher in Hartford (statewide 35.2%)
Home ownership rate in Hartford is 25.8% (statewide 69.2%)
Median value of owner occupied units is $188,000 (statewide $296,500)
Per capita income in 2010 dollars was $16,798 (statewide $36,775)
Median household income $28,970 (statewide $67,740)
32.1% of residents live below poverty level (statewide 9.2%)

As a point of comparison the statistics just over the border in West Hartford are:
Population: 63, 268
93.4% of residents age 25+ are high school graduates
58.1% of residents 25+ have a bachelor’s degree or higher
73.3% Home ownership rate
Median value of owner occupied units is $317,400
Per capita income in 2010 dollars was $43,534
Median household income $78,530
6.1% of residents live below poverty level

In 2010 the City of Bridgeport’s population was 144,229
73.5% of residents age 25+ are high school graduates in Bridgeport (statewide it’s 88.4%)
15.8% of residents 25+ have a bachelor’s degree or higher in Bridgeport (statewide 35.2%)
Home ownership rate in Bridgeport is 45.2% (statewide 69.2%)
Median value of owner occupied units is $236,000 (statewide $296,500)
Per capita income in 2010 dollars was $19,854 (statewide $36,775)
Median household income $41,047 (statewide $67,740)
20.8% of residents live below poverty level (statewide 9.2%)

A report by the CT Conference of Municipalities entitled A Disproportionate Burden: The special needs of Connecticut’s poor looks at the state’s four largest cities: Bridgeport, New Haven, Hartford and Waterbury and finds the following startling figures:
• The 4 cities have more than half of state’s homeless population
• The unemployment rate in Hartford is 16.9% and Bridgeport in 14.0%, while the state average was 9.3%
• The crime rate for the state as a whole is 2,981 per 100,000 residents. That figure is 10,114 in Hartford and 5,435 in Bridgeport.
• 39.2% of children in Hartford and 25.8% of children in Bridgeport under age 18 live in poverty

According to The Commission on Educational Achievement the achievement gap in Connecticut between low-income students and non-low-income students is the largest in the country.

CB Richard Ellis reported that greater Hartford had a 21.9 percent office vacancy rate at the end of the fourth quarter in 2011. In Hartford alone, the office vacancy rate stood at 25.5 percent, including a 30 percent vacancy rate in the central business district (downtown).

Here are some photo contrasts...

About half of the units at the Westbrook Village housing project in Hartford sit vacant awaiting demolition. Plans to demolish the complex and rebuild, as has been done in other parts of the city, have been stalled.

About 1/2 mile from Westbrook Village is the West End of Hartford - the city's premier neighborhood. This property sits in Hartford near the West Hartford border. Property values within city lines are much lower than those in West Hartford.

West Hartford's upscale Balfour Drive

Blue Back Square in West Hartford is a mixed use development project that offers office space, residential units and upscale shopping. The project is near full occupancy. Major retailers include REI, Crate and Barrel, Whole Foods, Barnes & Noble, The Cheesecake Factory and Fleming's Prime Steakhouse & Wine Bar.

After years of delay Front Street in downtown Hartford is finally rising adjacent to the CT Convention Center, Marriott Hartford Hotel Downtown and CT Science Center. The project was conceived in the late 1990s and is on third developer. Only the first phase (a 60,000 retail/entertainment district) is under construction. Apartments have been delayed due to the recession. Leasing has been hard however an upscale movie theater is expected to open on sit. No word about other tenants.

Just some things to think about.

Feluccio's pushes Brooklyn's 7th Ave restaurant scene down to Prospect Avenue

By now hopefully you already know that I currently live in Park Slope, Brooklyn and have been there for about 1.5 years. It is my experience that everyone in Brooklyn blogs in addition to tweeting. I have a solid Twitter following but have always been intimidated by how fast information and photos can be uploaded onto blogs by Brooklynites.

This is my first attempt to enter that field however I will still be posting about urban concerns in other cities.

Here we go -

I have announced it on my Facebook page (which must make it official, right?) and I will announce it here: the South Slope restaurant scene is bourgeoning.

The most recent opening was last Thursday at Feluccio (364 Prospect Avenue at 7th Avenue) - this is the former 7th Avenue Video. The restaurant isn't anything exotic especially for the Slope/Greenwood Heights. Feluccio has traditional Italian food and pizza plus a large wine list. The location will prove difficult for the venue. It’s a hike from any train station and most pedestrians will hit a ton of closer restaurants by the time they get to Feluccio. Any restaurant is welcomed by me and is much better than a vacant storefront. Over time restaurants have been pushing farther south in the Slope and Feluccio is certainly doing that. I wish them the best of luck and hope business picks up. I strolled by last night and they didn't seem too busy. They definitely need to do some outreach and marketing. A boost in business might come when Greenwood Park the large Greenwood Heights beer garden opens just down the street at 7th Avenue at 19th Street. For the record I realize some might consider this Greenwood Heights if not the South Slope.

BRAC is BACK

Alright everyone here is another blog post. Two posts in 6 months, this is big! Enjoy and thanks for reading.

Founded in 1646, New London is a small historic waterfront city located in southeastern Connecticut. The city’s population is a mere 27,500 however there was a time when New London was well known because it had the second busiest port in the world after New Bedford, MA. Today, New London is known for submarines and the coast guard. The city is home to the Naval Submarine Base at New London, the US Coast Guard Academy, and Electric Boat which is the nation’s primary producer of submarines. The city is home to a charming and historic downtown full of shops, restaurants, and galleries, a cruise ship terminal, and has a train station serviced by Amtrak and Shore Line East.

The defense industry is the true economic force in southeastern Connecticut. A 2005 study by the CT Department of Economic and Community Development determined that the Naval Base and Electric Boat contributed approximately $3.3 billion dollars to the state’s Gross State Product and are responsible for 31,500 direct and indirect jobs in the state. If you live in the area more likely than not you know someone who is associated with the navy base.

Every couple of years the dreaded words Base Realignment and Closure (BRAC) are brought up and southeastern Connecticut residents sit on edge. This year Pentagon chief Leon Lanetta and President Obama are working to shrink the Army, push off several equipment purchases, and possibly close bases and that could include New London. My Connecticut readers must surely remember the fight to get base off the list in 2005. Last week US Senators Joseph Lieberman (I-CT) and Richard Blumenthal (D-CT) as well as US Representative Joe Courtney (D-CT, 02) released a statement calling any plan to close the base “dead on arrival” in Congress.

New London on a BRAC list is nothing new and it will probably happen again. It’s time for the region to start planning on what to do if the base is closed. New London survived after its demise as a whaling city and even though the loss of the base would be catastrophic the city will keep on chugging. New London is centrally located between New York and Boston and is only 30 minutes from Providence and 40 minutes from Hartford. Besides its location, charming quaint streets, and small town feel the city of New London is extremely affordable and has an unemployment rate just below the national average (8.2% in November, 2011). The potential for the continued revitalization of New London with or without the base is great. There is no reason why New London cannot become a hub for starts ups similar to the way in which Providence is working to become a technology hub with their new Knowledge District.

With the proper incentives and marketing New London, Groton, and nearby Norwich could all become home to a plethora of small and mid-sized start-ups. The Connecticut General Assembly passed a bipartisan jobs bill in 2011 that creates tax credits for employers who create new jobs which can help attract new businesses and help current ones expand.

For far too long eastern Connecticut has put all of its eggs into one basket and this has been a recipe for failure and will continue to result in failure unless their economy is diversified. The nation’s two largest casinos (Foxwoods and Mohegan Sun) were built in southeastern Connecticut and now due to the economy revenue is down significantly. In the small town of Preston a developer promised to turn the vacant Norwich Hospital site into a movie studio theme park with 4000+ hotel rooms, a performing arts school, and a movie studio. The site along the Thames River still sits completely abandoned within eyesight of the 34 story Mohegan Sun Sky Tower. In New London itself drug giant Pfizer threw a punch to the city in 2009 when the company announced it would take 1400 jobs out of the city and move them to neighboring Groton to cut costs. They will leave behind the city’s largest office complex and an adjacent swath of open land that was cleared of homes to make room for development. Pfizer was lured to New London with tax incentives to build a headquarters for its research division. Pfizer spent $294 million on a 750,000-square-foot complex that opened in 2001.

As an example for New London I am now going to turn to Brooklyn, NY. The Brooklyn Navy Yard was decommissioned by the government in 1966 and although it has taken a number of years the navy yard has been transformed into a bustling industrial park that has brought much needed jobs to the community and serves as an economic catalyst for the entire city. According to the Brooklyn Navy Yard Corporation, Mayor Bloomberg and BNYDC “have announced an eight-building expansion including over 1.7 million square feet of new industrial space, 2,000 new jobs and $250 million in private investment. Plans to develop an additional 40 acres are under way.” The yard is home to Steiner Studios which opened 2004 on a 15-acre site at the yard. The 310,000- square-foot complex provides New York City with its first Hollywood-style production and support facility. The navy yard can serve as a blueprint for how to reinvigorate the economy in southeastern Connecticut and how to reuse large abandoned spaces. Connecticut has a set of film tax credits that have already drawn some major shows to relocate to the state.

If New London avoids closure this year the state of Connecticut as well as neighboring Rhode Island cannot ignore the base until the next BRAC list comes out. Unfortunately, this is what happened in 2005. Ways to diversify the economy must be examined and implemented. I’ll continue to monitor the BRAC discussions and decisions. It will be interesting to see what leverage the current Congressional delegation from CT as well as the Executive Branch in CT will be able to pull in these talks.

And if you don't believe me about how cool New London is take a look at some pictures I took back in the fall.

What's New in Downtown Hartford?

I have been back to Hartford many times since I moved to Brooklyn, NY in June of 2010. This past week I was in town for Thanksgiving. I wanted to take a moment to upload a few pictures and discuss some of the new (or fairly new) downtown businesses.

Burger Baby at 283 Asylum will be opening soon (or recently opened) at the former home of Mayor Mike's. An advertisement on Craigslist for hiring purposes called the restaurant a "modern American burger bar." This is a great addition to downtown since the region's burger joints are not located downtown (Max Burger, Plan B, The Burger Joint, Red Robin, etc.). Great to see that the former Mayor Mike's (which I still miss) is no longer sitting vacant – hopefully guests of the Homewood Suites at the Bond will be frequenting this place.

Rio Grill & Bar will be opening at 77 Pratt Street in the former Cugino's space. The Brazilian restaurant is being opened by the owners of Brazil Grill on Park Street in Hartford.

Zula (901 Main St) finally opened back in February of 2011 in the former America Airlines building (aka One American Plaza) which has now been converted into apartments and ground level retail space. The Zula space on the corner of Main & Pratt was originally supposed to be Kyoto Sushi & Wine Bar. Zula offers American and Mediterranean cuisine, an awesome bar, live music in the evenings and happy hour from 4 to 7, Monday through Friday.

The Russian Lady has reopened at 191 Ann Uccello Street. The former Russian Lady closed in 1997. The new Russian Lady has a Vodka Lounge with 100 different types of vodka, a rooftop Cigar Lounge and a bar menu. I can tell you that that on Thanksgiving Eve there was a huge line to get in. I can also tell you the blaring music on Thanksgiving Eve could be heard loud and clear on the corner of Ann & Asylum.

Pietro's Pizza Restaurant has opened at 942 Main Street (Richardson Building/Residence Inn by Marriott). This is the second location of Pietro's which has been on Wolcott Hill Road in Wethersfield for 9 years. Next door is Bocca Rossa Wine Bar and Lounge with paninis, salads, pastas and bruscette complimented by a great wine list. They do a happy hour and also have DJ's. Lively addition to Main Street that seems to be doing well.

Over at Hartford 21 a First Niagara Bank opened and on September 15th the Saint Joseph College's School of Pharmacy was dedicated. The school has 35,000 square feet of renovated office space and the first class of students started this fall.

Last year the 1700 square foot Al's Market and Deli opened at 241 Asylum Street in the former Niro's clothing boutique. This may seem like an insignificant opening but the market offers downtown residents a place to grab affordable and quality groceries. The market carries fresh meats, dairy, produce, baked goods and canned foods.

In addition let’s not forget some other great business happenings -

- The new Tea Hunt Canvas on Trumbull Street is an art gallery and tea house.

- Salute at 100 Trumbull Street (formerly Dulce) and the new Hot Tomato’s at 1 Union Place seem to be doing quite well. Salute has quickly become my favorite downtown restaurant (as of today).

- The owners of the popular Churrascaria Braza on Farmington Avenue in the West End will be opening another location in the former Spris space on Constitution Plaza. This would be the third Braza in CT (the second is in Waterbury). This is great news for Constitution Plaza which is now home to an office of the Brazilian consulate. XL Americas recently added space at 100 Constitution Plaza, so that it is now occupying a little less than 100,000 square feet in the building. Plans also are proceeding for studio and one-bedroom apartments in the former Clarion hotel on the plaza.

- Metro PCS will be opening at 915 Main Street

And in the South End I can’t confirm these openings or what the names are but...

A new restaurant/bar seems to have opened in the former Capriccio Ristorante space at 626 Franklin Ave

A little bit farther up Franklin it looks like something will be opening in the former Restaurant Europa at 438 Franklin Avenue.

ANYONE WHO HAS MORE INFORMATION ON ANY OF THIS, FEEL FREE TO SHARE!

A Tale of Two Cities

The Hartford Courant recently published two great articles on the city. One was entitled “Hartford’s Front Street Rises, Empty” and the other “Park Street Life: Hartford’s Hispanic Thoroughfare Has Retail Vibrancy Downtown Longs For.” Front Street is representative of the Hartford many outsiders see. Unfortunately, many see no reason to come to Hartford because there is nothing to do. Park Street on the hand is representative of the Hartford many are unfamiliar with and one in which our city’s revitalization must be modeled from.

Downtown property owners must use the model Park Street property owners are using to help their neighborhood thrive. Park Street is filled with locally owned and operated shops and restaurants. There are small retail spaces with low rents and there is a sense of community. On the other hand downtown’s older retail spaces are small but their rents are high and the newer retail spaces are large and come with hefty rents. Simply put many small businesses owners cannot afford to take a risk and do business downtown. Every new downtown development over the last 10 years that features retail space has at least one vacant storefront (as of this posting).

Downtown property owners are in a pickle. Most are faced with high property taxes and mortgage payments and thus are looking for high rent tenants. However, those high rent tenants have not come through which is why for now downtown property owners must cut their losses and lower rents to renew attraction to the neighborhood. This will not solve everything and there are still other major issues to address downtown (parking and safety) however, I am confident that cutting rents will still make downtown a much bigger draw. Hartford must jump on new business ventures that form as the economy starts to recover before they open up in the suburbs.

This small business approach is already drawing new businesses to Pratt Street while vacant space sits at Front Street. I believe attracting national retailers is nearly impossible at this time. Hartford does not have the proper demographics to attract a big name supermarket, bookstore or clothing store – especially at a time when many retailers have closed stores and cut staff. Why turn our backs on those who want to do business here for those who don’t?

Salute: a new urban treasure

I have never written a restaurant review but I felt the urge to after finally getting the pleasure of trying out downtown Hartford’s newest restaurant: Salute. This chic new urban hotspot has quickly become known as the new Hot Tomato’s. The restaurant is owned in part by Jimmy Cosgrove who is formerly of Hot Tomato’s. Despite the multiple references overheard by staff (including Cosgrove himself) comparing Hot Tomato’s to Salute this new venture is much different and that’s not a bad thing!

For starters Salute is much livelier then the Hot Tomato’s I was used to seeing. I had a 7:00pm reservation for last Friday night and arrived to see the restaurant bustling with every table filled and the bar packed. This happily defeats the notion of Hartford as a 9-5 type city. The clientele was definitely the young professional type with a few empty nesters mixed in as well as Jim Calhoun who I spotted leaving around 8:00. After a brief wait and a greeting from Cosgrove, a longtime family friend we were lead to our table.

Salute occupies every nook and cranny of the space formerly occupied by Dulce creating a very cozy atmosphere. There are tons of little spaces which is a nice reprieve from the huge open spaces many chain restaurants have. There is also still a great little outside seating area that overlooks Bushnell Park.

Despite the busy atmosphere the service was great. We started off with the garlic cheese bread, an old Hot Tomato’s favorite that is an extra $5.00 as opposed to regular (and free) bread rolls. They had a great wine selection most of which were very reasonably priced. Next up was salad. Mine had spinach, cheddar cheese, almonds, bacon and was covered in balsamic vinaigrette. For the main course I had the pasta Bolognese. There were so many great things I wanted to try that I had a hard time picking. There was a traditional gnocchi dish as well as the Pasta Rose that I believe were both carried over from Hot Tomato’s. Someone in the group next to us ordered the Chicken Parmesan which looked awesome. Topped it all off with dessert. I chose a cappuccino and a huge slice of cheesecake that was covered with fresh fruit. Everything was great.

Salute has become the new place to see and be seen in Hartford and I wish the restaurant the best of luck because it is a great place that I highly recommend everyone try! I know I will definitely be back very soon.

Another devastating city budget proposal

Hartford Mayor Eddie Perez recently proposed his budget for the upcoming fiscal year. I fully understand the difficulties associated with preparing a budget for a city like Hartford however the current budget will only worsen the vitality of the city. This budget is disastrous for property owners citywide. The $554.3 million dollar budget increases spending and property taxes. Another year of increased property taxes will continue to kill businesses in Hartford. Businesses across the city may be forced to close or relocate to the suburbs because of increased property taxes and the recession.

The tax increase will equal 3.85 mills (5 percent) which would bring the city’s mill rate to 76.64. This equals $76.64 for each $1,000 of assessed property value. Looking back at 2008 the city’s 72.79 mill rate was the highest in the state. As a point of comparison with the suburbs Avon had a mill rate of 23.41, Bloomfield 35.53, Rocky Hill 22.90, Windsor 28.34 and Wethersfield 30.68. In comparison to other urban areas Waterbury had a mill rate of 39.9202, New Haven 42.21 and Bridgeport 38.74. All of these figures are from the State of Connecticut’s Office of Policy and Management.

The major issue Hartford has every year when it prepares the budget that is never talked about is the amount of tax exempt property there is. I believe that one of the main reasons the city can’t properly balance its budget and maintain low property taxes is because so much property is tax exempt. On the upside Hartford is the capital and thus it houses numerous state agencies as well as the State Capital and Legislative Office Building which all together employ thousands. On the downside all state property is tax exempt. Since Hartford is the center of the greater Hartford region it houses most of the area’s major hospitals, places of worship, theaters and to some extent institutes of higher education. All of these places are tax exempt. Additionally, many new development projects were made possible by tax incentives. In return this leaves very little to tax and what is left to tax must be taxed to death (for lack of a better term) to keep the city afloat.

Tax increases are bad for property owners as well as renters. A majority of Hartford residents are renters. Increased property taxes could lead to more foreclosures. Downtown has already seen a massive wave of foreclosures and loan defaults. If a property owner loses their property and it is turned over to the bank it is my understanding that there is no law in place to force the bank to maintain the property while it is in foreclosure. This leaves renters residing in deteriorating buildings. Businesses who rent space could face the same fate.

Despite being hallmarks of the city there is really nothing keeping businesses in the city. In 2007 Paul Mozzicato one of the owners of Mozzicato-DePasquale Bakery on Franklin Avenue strongly came out against tax increases. Soon Mozzicato will be opening their first suburban bakery in Plainville. There was talk a few years ago that they would be opening a bakery in Wethersfield but that fell through. What is to keep Mozzicato from moving? What is to keep every business on Franklin Avenue or Albany Avenue or Farmington Avenue from moving over the border? Hartford is holding onto these businesses by threads when it should be holding onto them for dear life.

All of that being said I do not have many answers for Hartford. Overall the city must spend less. Some services must be cut and that will not be an easy process. Some city departments and agencies may need restructuring. I know big strides have already been made but more will have to be done.

I believe that all city employees should be mandated to live in the city. However I believe residency requirements are against the law in Connecticut and thus a state law would have to be overturned for the city to implement such requirements. In any case residency requirements would keep the salaries paid to city employees in the city. City employees who live in Hartford will be reinvesting their money here. If residency requirements can’t be overturned on the state level then their could be an incentive program for city employees to live in the city, however during these difficult economic times I do not think the city can afford any such incentive program.

And finally to wrap things up on somewhat of a different note I believe the city needs new young blood. Its needs young, involved, determined and dedicated individuals to work for it. How the city goes about doing that is a long and strenuous process and will have to wait for another post.