CT Communities Look to Propel Post-Pandemic Economic Growth

As Connecticut communities look to rebound from an economy that has, in many ways, slowed for the better part of a year, Julie Nash, Director of Economic and Community Development for the city of Milford, is among those looking forward to “seeing what’s coming next and being in the forefront of making those policy decisions.”

Surprisingly, it’s been “a pretty decent economic story,” through the pandemic, as new businesses have started amidst the restrictive protocols and safety precautions.  Milford, for example, had more business starts in 2020 than in any year for the decade prior, Nash explained, appearing this month on the Connecticut-based podcast Win the Future.  “Who would have thought that would happen?”

Milford, with a downtown, MetroNorth rail line, and harbor within sight of each other, is poised to continue taking advantage of the mix.  Transit oriented development, for example, is slated for an expansion later this year as new apartments come on line, which “will help our business development,” at a time when more people, particularly from New York, are moving to Connecticut. 

Nash notes, however, that changes in where people work, and how they get there (if they even need to leave their homes) “it will be interesting to see” what happens with the home-commute-work dynamic. 

“I do think that the 9 to 5 at a desk is dead,” Nash commented. “The pandemic pushed us right over the edge,” to increased use of digital communication during the workday, she observed. 

Local retailers, Nash suggested, will need to stand out from online competitors by providing “unique experiences” for shoppers, and she has already seen evidence that those changes are happening, spurred by the pandemic, as a means of reconnecting with customers.   

There may also be existing office space being turned into housing, as less office space is needed by businesses of every variety, and shared work spaces, such as District in New Haven, may prove to be even more attractive in the coming years as people continue to work from home, but need office-style space at times. 

Other communities around the state have been innovative to respond to the challenges of the pandemic, and those changes may continue to help spur local economic development. 

In Berlin, they’ve come up with a novel solution to help residents help local restaurants, the Connecticut Conference of Municipalities recently reported. Located on the Economic Devel­opment webpage for the town is a PDF document called Eat, Drink and Stay Local. On this list is every restaurant and coffee shop in Ber­lin, along with their phone number, hours, and whether or not they of­fer dining in, take-out, delivery, and gift cards, along with a link to their website or menu.

In West Haven, an Enterprise Zone has been established that aims to entice businesses and real estate to town.  Although new to West Haven, the approach is not new to Connecticut the first state in the country to establish a state­wide Enterprise Zone in 1982, according to the state’s website. 

The site says that there are currently 43 participating communities. The town or city property must meet certain criteria in order to be considered for the Enterprise Zone pro­gram; there are two key incentives according to the state: a five-year, 80% abatement of local property taxes on qualifying real estate and personal property; or a 10-year 25% credit on the portion of the corporate business tax that is directly attributable to a business expansion or renovation project, as determined by the Connecticut Department of Revenue Services. Only one tract in West Haven met those criteria, but Mayor Nancy Rossi has pointed out that businesses are already interested in the area as the initiative moves forward. 

More recent has been the introduction of Opportunity Zones, based on 2017 federal legislation.  An Opportunity Zone is an economically-distressed community where private investments, under certain conditions, may be eligible for capital gain tax incentives.  In Connecticut, there have been 72 urban and suburban areas federally designated as Opportunity Zones.  The Zones provide substantial tax benefits to investors who move any realized capital gains into a qualified Opportunity Zone Fund within 180 days of the asset sale. In turn, these Opportunity Zone Funds may invest in qualifying businesses, real estate or infrastructure substantially located within a federally designated Opportunity Zone.

Nash believes that there are great opportunities ahead – for her community, and Connecticut.  People, she observes, are “starting those businesses that they’ve always dreamed about, and decided just to take a leap.”  She often hears “It’s a chance in a lifetime chance, and I’m going to jump on it.”