Corporate Headquarters Headed Back to Cities, But Shrinking, Report Says

The departure of GE’s corporate headquarters for Boston reflects a growing trend for headquarters of major corporations to relocate back to cities, but a recent study indicates they not only move, but shrink, becoming a “reconstituted, smaller version”of their former corporate selves. Analyst Saskia Sassen, author of The Global City, describes such moves, which often consist of “only the most senior people” in the firm as “executive headquarters.”  A feature this month by Crain’s Business Chicago investigates the trend, as it has been evolving in Chicago.  Their report points out that “these headquarters make for great headlines, but they don’t necessarily result in that many jobs,” according to the website newgeography.

“The notion of the corporate headquarters in the ‘Mad Men’ world when there were hundreds or thousands of people in a building with the company logo . . . those days are gone,” says David Collis, a professor at Harvard Business School who studies corporate headquarters.

The Crain’s article points out that “when Chicago landed ADM in 2013, it got 70 executives and white-collar employees, plus a promise of 100 technology jobs that never arrived. Two years later, Decatur still has 4,200 ADM workers.”

The story points to good news and bad news for Chicago.  The bad news, is that a “headquarters ain’t what it used to be. On the other hand, Chicago is winning the battle for them,” and the ripple effect they provide.  These smaller executive headquarters, particularly for major global businesses, benefit from being in a global city, the article explains. Chicago has lured a number of these from out of town, noting that agro-industrial firms are increasingly choosing Chicago: ADM, Con Agra, Mead Johnson Nutrionals, and Oscar Mayer in recent years.

The same may be said for GE and Boston, and the city’s technology-intensive environment. Some fear that Chicago's technology startups, the article reports, are particularly vulnerable to leaving for Silicon Valley, attracted by venture capital and a deep talent pool.  Boston may be in the running for similar relocations.

A similar phenomenon is occurring in Pittsburgh.  After 70 years in a suburban location, Kennametal announced plans last fall to relocate its world headquarters to an urban location. “We’re a global business that’s making changes to stay competitive in a new industrial era,” said the company.  “We have more than 13,000 employees in 40 countries serving customers in more than 60 countries every day. An urban location puts us in closer proximity to major universities and the airport and will enable us to recruit more talent.”

The Wall Street Journal reported last year that online travel agency Expedia Inc. announced plans to relocate its headquarters from a Seattle suburb that it called home for nearly 20 years to the city’s downtown.

“In the late 60s and early 70s, CEOs in places like New York City fled the city and moved to the suburbs, leading to the growth of Westchester County, Stamford and Greenwich, Connecticut,” Ed McMahon, a senior resident fellow for the Urban Land Institute, told the newspaper. “In those days, the determining factor was where the CEO of the company wanted to live.”

Now, the Journal reported, “large companies are moving back into the city in an attempt to attract and retain workers—particularly younger workers who are postponing homeownership and favor renting in walkable neighborhoods with easy access to restaurants, shopping and cultural opportunities.”

“Connecticut has really been hammered by the trend away from suburban campuses,” writes Michael Brendan Dougherty in The Week. “Aetna demolished a 1.3 million-square-foot campus in Middletown in 2011. That site is vacant. Pfizer dumped a research campus in Groton after that. The suburbs around Chicago, which once gladly received Sears' corporate headquarters, may be hit next.”  It seems that they are.

The Crain’s article reports that headquarters began shrinking a decade ago, but the trend has accelerated in the past three years, according to Vinay Couto, a consultant in the Chicago office of Strategy&. In recent years, 16 companies have relocated their main headquarters to the city from the suburbs. Seventeen came from outside the metro area. The phenomenon, he points out, is driven by the outsourcing of shared services such as IT, accounting and human resources, as well as by a mindset borrowed from private equity to cut overhead and make every part of a business count toward profitability.

The website Investopedia defines “corporate headquarters” as “a business' most prestigious location,” adding that it may “bring prestige to the city it is located in and help attract other businesses to the area.”

Moving headquarters can also be a way for companies to break from the past and shed employees and positions, Couto says.  And the loss of a major headquarters doesn't necessarily stifle job gains. When Boeing moved to Chicago, Seattle's economy kept growing, Kevin Hively, founder of Ninigret Partners, a business and economic development strategy consulting firm in Providence, R.I., told Crain’s. In that case, however, the presence of Microsoft and Amazon helped.

Eight CT Companies Among the Fastest Growing Tech Companies in North America

The Technology Fast 500 is a closely watched annual listing of the fast-growing tech companies, businesses that are releasing new, emerging technologies from the U.S. and Canada worldwide.  The latest ranking includes eight Connecticut companies, including one, operating in Stamford, that reached the top 100. Combining technological innovation, entrepreneurship, and rapid growth, Fast 500 companies—large and small, public and private—are located in cities all across North America and are “disrupting the technology industry,” according to consulting firm Deloitte, which has compiled the annual list for two decades.

Fast 500 award winners on the current list were selected based on percentage fiscal year revenue growth during the period from 2011 to 2014.  Companies must own proprietary intellectual property or technology that is sold to customers in products that contribute to a majority of the company’s operating revenues in order to be considered for inclusion on the list, according to Deloitte.

The lone Connecticut company to crack the top 100 was Milford medical device manufacturer SurgiQuest, which was number 100.  The company’s growth was pegged at 877 percent.  It was incorporated in 2006, with a focus on laproscopy technology.

Not far behind, at number 119, was Revolution Lighting Technologies, a manufacturer based in Stamford.  The analysis placed the company’s growth at 755 percent.  Revolution Lighting Technologies Inc. engages in the design, manufacture, marketing, and sale of light emitting diode (LED) lighting solutions in the United States, Canada, and internationally.  The company’s customers include the U.S. military.

Madison-based Clarity Software Solutions, Inc., with 298 percent growth, placed at number 247 on the top 500 fastest growing technology companies in North America.  Clarity Software Solutions, Inc. helps health insurance clients optimize customer relationships-and save time and money-by enhancing flexibility and control over document management and communications delivery, according to the company’s website.

Also making the list were Evariant of Farmington, a software developer, at number 272, and HP One, a software company in Trumbull at number 307.  Biopharmaceutical company Alexion, in the midst of moving its headquarters from Cheshire to New Haven, was ranked at number 349, and etouches, a Norwalk software company ranked at number 357.  Rounding out the Connecticut companies on the list is Wallingford oil extraction technology company APS Tecnhology, at number 466.

“Amid a fierce business climate, there seems to be no shortage of new and established companies that are unlocking a seemingly unlimited potential for growth and advancement through technology’s continued disruption and proliferation across industries,” said Sandra Shirai, principal, Deloitte Consulting LLP and US technology, media, and telecommunications leader.

“It is inspiring to witness the innovative ways companies are incorporating emerging technologies for business gains, be it cognitive computing, or the Internet of Things. We congratulate all those ranked on the Fast 500 and look forward to seeing their continued growth into 2016.”

Revolution Lighting Technologies ranked eighth among energy tech companies, and SurgiQuest Inc. ranked sixth among medical device companies.

Overall, 283 of the 500 companies were in the software sector, and 67 percent of the 500 companies have received venture capital funding at some point in their company’s history.  Topping the list was StartApp, with a growth rate of 21,984 percent from 2011 to 2014. Based in New York and founded in 2010, StartApp provides a free monetization and distribution platform that integrates with applications on mobile devices.

Two-thirds of the companies are private, and 33 percent are public.  The average growth rate of the top 500 companies was 850 percent, with individual company growth on the list ranging from 21,984 percent to 109 percent.  Broken down by region, 20 percent of the companies are based in the San Francisco Bay Area, 14 percent in the New York Metro Area, 7 percent in New England, and 6 percent in Los Angeles and Washington, D.C.

New Casey Foundation Initiative Aims to Improve Job Prospects for Young Adults in Hartford

A total of up to $900,000 will be awarded over the next four years to a Hartford collaborative initiative to strengthen the next generation of workers and meet employer demand.  The Annie E. Casey Foundation has announced plans to award $6 million in grants to increase job opportunities for young adults from low income families in Hartford and four other communities - Cleveland, Indianapolis, Philadelphia, and Seattle. Hartford expects to receive up to $900,000 over the grant period for planning and implementation.

Through Generation Work, the Foundation aims to combine building relationships with businesses, factoring in their needs in the local economy, with youth development strategies to prepare young people for work, such as mentoring and on-the-job learning opportunities. Ultimately, the Casey Foundation hopes to help establish local networks of workforce development organizations that serve young job seekers and have strong connections with businesses.

The Hartford Generation Work initiative is led by United Way of Central and Northeastern Connecticut, working with five other community partners:

• Capital Workforce Partners,
• Hartford Foundation for Public Giving,
• Hartford Opportunity Youth Collaborative,
• Our Piece of the Pie, and
• Workforce Solutions Collaborative of Metro Hartford.

Hartford’s initiative will connect young adults, including those out-of-school or work or underemployed, with education, training and employment for careers in manufacturing and healthcare, officials said. The initiative also intends to improve coordination and collaboration among partners and youth initiatives.

“The strength of our future workforce is one of our nation’s greatest assets and is critical to our ability to compete globally,” said Allison Gerber, a senior associate who oversees the Casey Foundation’s investments in improving job opportunities for low-income individuals and families. “The next generation is eager to work, but we must create more avenues for young adults to develop the knowledge and experience they need to succeed in the job market.”

While the Great Recession hit many hard, teens and young adults have experienced the most drastic drop in employment, data show. Millions of young people — particularly young people of color, justice-system involved, or aging out of foster care and from low-income families — face obstacles to employment or education, and the percentage of young people ages 18 to 29 in the job market nationwide has steadily declined in recent years. At the same time, employers often struggle to find workers with the right set of skills for available positions, Foundation officials point out.

Patent Trolls Target Nearly 50 Connecticut Businesses, Filing Suits in Friendly Texas Court

“I know firsthand how detrimental patent trolls can be to small businesses, as my Connecticut small business was recently the victim of abusive patent litigation in which bad patents were used as weapons of financial intimidation against my small business. $100,000 in legal fees and ten months of litigation later, we successfully defended against these frivolous lawsuits, explained Michael Skelps, General Manager of Middlefield-based Capstone Photography recently in a published report. The New York Times has described patent trolls as “people who sue companies for infringement, often using patents of dubious value or questionable relevance, and then hold on like a terrier until they get license fees. In recent years, patent trolls — they prefer “patent assertion entities,” or P.A.E.’s — have gone from low-profile corporate migraine to mainstream scourge.”

Skelps said that “a year later, my small company is still recovering from exorbitant legal fees, none of which we were able to recoup from the legal system.  As a result of the lawsuit, my mom-and-pop photography shop had to downsize from five full-time employees to three part-time. We spent the equivalent of a year’s worth of profit to defend ourselves, with no budget allocated before to legal defense.”

While action to combat the rapidly escalating challenge to businesses of every size has been unable to navigate through a divided Congress, the problem is growing.  One jurisdiction in particular is a hospitable home for the legal attacks.  Federal court in the Eastern District of Texas is the epicenter of patent troll litigation, and nearly 50 Connecticut companies are among those hauled into court there under dubious circumstances.

The Dallas Business Journal printed what read very much like a warning to American businesses, when a commentary noted that “the Eastern District of Texas’ misguided judicial system makes the towns of Tyler, Marshall, Beaumont and Texarkana the biggest patent-troll nest in the United States, filling the coffers of these tiny towns with money legally extorted from innovators that could otherwise be used to support business growth and create new jobs.”

The Connecticut businesses range from well-known names such as Xerox, UTC, Pitney Bowes, Aetna, Starwood, Priceline, WWE, Frontier Communications and Stanley Black & Decker to dozens of lesser known names lacking the deep pockets to fight what are usually unfounded allegations.  Small and medium-sized businesses – many in the tech fields - are frequently sued in East Texas even if they operate outside the state.  The goal appears to be either to force them to travel to the Lone Star State to defend their business practices, or to extract exorbitant settlements as the only way to avoid the travel and legal costs.

It is those out-of-court settlements that the trolls depend on, and which are bleeding some unsuspecting businesses virtually dry. The median compensatory-damage award by East Texas judges and juries in patent cases was $8.25 million, according to the article, written by the president and CEO of the Consumer Electronics Association, a U.S. trade association representing more than 2,000 consumer electronics companies.

Six months ago, in an effort to put an end to such activities, the Judiciary Committee in Congress approved legislation that would overhaul the nation’s patent laws.  That effort, however, has slowed, and ultimate passage in Congress is in doubt, according to published reports.

In Connecticut, associations and organizations including The Credit Union League of Connecticut, Connecticut Food Association and the Connecticut Retail Merchant Association have called for federal action to end patent trolling.  The National Retail Federation has said that the cost of defending companies against the claims is so high — the average case costs $2 million and can take 18 months — that many victims settle out of court. The cases cost legitimate businesses close to $30 billion a year in direct costs and $80 billion indirectly, amounting to $943 a year for the average household when passed on to consumers.”

Small businesses bear the brunt of the litigation, but larger businesses are not immune.  About a year ago, it was reported that “Apple must pay a shell company $532.9 million because iTunes infringes upon three patents related to online patents, a jury in East Texas ruled.  The company in question … is also based in Texas and doesn’t make or do anything besides file patent lawsuits, as an Apple spokesperson pointed out, noting that the company “makes no products, has no employees, creates no jobs, has no U.S. presence, and is exploiting our patent system to seek royalties for technology Apple invented.”

By mid-2015, the U.S. District Court for the Eastern District of Texas was headed to a record year. An astonishing 1,387 patent cases were filed there in the first half of the year, according to published reports. This was 44.4 percent of all patent cases nationwide, and almost all of the growth is being “fueled by patent trolls.”  Reports indicate that in 1999, only fourteen patent cases were filed there. By 2003, the number of filings had grown to fifty-five. Ten years later, in 2013, it was 1,495.

Overall, patent disputes hit an all-time high of about 7,500 cases in 2015, largely driven by patent trolls who filed two-thirds of the lawsuits, according to a report from Unified Patents. The number of lawsuits filed by non-practicing entities (NPEs), known as “patent trolls,” increased by 25 percent.  Last year, patent troll filings made up 95 percent of the cases in the Eastern District of Texas.

While Congress is mired in inaction, at least one state is stepping into the fray.  Virginia Attorney General Mark Herring, a Democrat who took office in 2014, announced last week a new initiative to support Virginia businesses by combating patent trolling through a newly formed Attorney General’s Patent Troll Unit.

Herring’s announcement explained that “in recent years high-tech businesses, Main Street businesses, and everything in between have become frequent targets of “patent trolls” who send bad faith demand letters, request unjustified licensing fees, and threaten baseless lawsuits. Unchecked, patent trolls and their bad faith practices stifle innovation in the Commonwealth, have a negative impact on our innovation-driven economy, and tie up the courts.” Businesses are forced to “choose between paying unjustified licensing fees and engaging in costly litigation,” the  announcement stressed.

The federal Government Accountability Office (GAO), according to a Washington Post report, found that a disproportionate share of patent litigation concerns software patents. The non-partisan government agency found that the number of defendants in patent lawsuits more than doubling from 2007 through 2011. Notably, this increase is specifically related to software patents — software patents account for 89% of the increase, according to the GAO's calculations.

Said Skelps: “our current patent system is ripe for exploitation. Like the abusive patent litigation we endured, malicious actors are abusing the system and using it as a weapon against legitimate businesses, harming innovation, driving small companies out of business, and overtaxing our already overburdened litigation system.”

CT Ranks 20th in Dependence on Gun Industry, But 3rd in Firearms Output, 2nd in Industry Wages

Connecticut’s place in the ongoing national debate about guns is reflected in a new analysis which ranks the state 20^th in the nation in overall dependence on the gun industry, but also ranks the state 3^rd in total firearms industry output per capita and 2^nd in highest average wages & benefits in the firearms industry. With the gun debate center-stage in the presidential primaries and in Washington, D.C., the website WalletHub analyzed which states depend most on the arms and ammunitions industry both directly for jobs and political contributions and indirectly through firearm ownership. WalletHub’s analysts compared the 50 states and the District of Columbia across three key dimensions: 1) Firearms Industry, 2) Gun Prevalence and 3) Gun Politics and eight metrics.

Connecticut also came in 41st in its "firearms prevalence rank" and 47th in "gun politics rank."

The states Most Dependent on the Gun Industry were Idaho, Alaska, Montana, South Dakota, Arkansas, Wyoming, New Hampshire, Minnesota, Kentucky and Alabama.

Officials point out that the gun industry plays an important role in the U.S. economy, and Connecticut is no exception. By one estimate, firearms and ammunitions contributed a total of nearly $43 billion to the national economy in 2014. That figure accounts for more than 263,000 jobs that paid $13.7 billion in total wages, according to the report from the Connecticut-based National Shooting Sports Foundation. In the same year, federal and state governments collected from the industry more than $5.79 billion in business taxes, plus an additional $863.7 million in federal excise duties, the WalletHub report indicated.

In the overall rankings, the states determined to be least dependent on the gun industry are Maryland, New York, New Jersey, Rhode Island and Delaware.

The analysis also found:

• The number of firearms-industry jobs per capita is highest in New Hampshire, which is seven times greater than in the District of Columbia, where it is lowest.
• The average wages & benefits in the firearms industry is highest in the District of Columbia, which is three times greater than in New Mexico, where it is lowest.
• The total firearms industry output per capita is highest in New Hampshire, which is 18 times greater than in Hawaii, where it is lowest.
• The total taxes paid by the firearms industry per capita is highest in Montana, which is six times greater than in Delaware, where it is lowest.
• Gun ownership is highest in Alaska, which is 12 times greater than in Delaware, where it is lowest.

The eight relevant metrics utilized in the analysis and their corresponding weights were as follows:

Firearms Industry – Total Points: 35

• Number of Firearms-Industry Jobs per 10,000 Residents: (~14 Points)
• Average Wages & Benefits in the Firearms Industry: (~7 Points)
• Total Firearms Industry Output per Capita: (~7 Points)
• Total Taxes Paid by the Firearms Industry per Capita: (~7 Points)

Gun Prevalence – Total Points: 35

• Gun Ownership: (~17.5 Points)
• Gun Sales per 1,000 Residents (approximated by using National Instant Criminal Background Check System data): (~17.5 Points)

Gun Politics – Total Points: 30

• Gun-Control Contributions to Congressional Members per 100,000 Residents: (~15 Points)
• Gun-Rights Contributions to Congressional Members per 100,000 Residents: (~15 Points)

Data used to create these rankings were collected from the U.S. Census Bureau, the National Shooting Sports Foundation, the Federal Bureau of Investigation, the BMJ Publishing Group and the Center for Responsive Politics, according to WalletHub.

Insurance Department Recovers $6 Million for Policyholders, Taxpayers in 2015; Recoveries, Fines Both At 4-Year Low

The Connecticut Insurance Department recovered approximately $6 million for policyholders and taxpayers in 2015, helping individuals and families with their claims and complaints.  The total dollar amount of the recoveries declined for the third consecutive year, down from a high of $8.7 million in 2012, $7.4 million in 2013 and $6.3 million in 2014. Officials indicated that the Department’s Consumer Affairs Unit (CAU) fielded more than 6,100 complaints and inquiries and helped policyholders recoup more than $4 million from January 1 to December 31, 2015.  The number of complaints and inquiries dropped slightly from the previous year, when 6,500 were handled, recouping $4.3 million for policy owners.  In 2013, policyholders saw $4.7 million returned.  In 2012, the numbers were virtually identical to 2015.

“Behind these statistics are the individuals and families the Department was able to help through our intervention,” Commissioner Katharine L. Wade said. “In many cases we were able to make a real difference in their lives and I encourage anyone with questions or concerns about their insurance to contact the Department. We are here to help consumers.”

The department, in announcing the annual totals for 2015, also highlighted some individual recoveries, including:

• $27,000 for home health care services for a senior citizen under her long-term care policy
• $13,000 to pay for speech therapy for an autistic child
• $16,000 paid to a policyholder for an inpatient stay at a skilled nursing facility
• $37,000 in an additional payment to a homeowner to settle a claim

“Our staff makes certain that companies and agents comply with all state insurance laws and regulation and have extensive knowledge to answer a wide range of insurance questions,” the Commissioner said.

In addition to recoveries for policyholders, the Department’s Market Conduct division levied approximately $1.7 million in fines against carriers and returned that money to the state General Fund in 2015. The fines resulted from a variety of violations and settlements ranging from untimely claim payments to improper licensing. That was the lowest total for fines in recent years, perhaps signifying greater compliance.  In 2014, fines totaled $2.03 million, in 2013 the total was $2.7 million and in 2012 fines levied totaled $4.6 million.

The majority of the funds recovered for policyholders stemmed from complaints over health, accident, homeowners and life and annuities policies.

The following is the breakdown of funds recovered in 2015:

• Accident, Health - $2.7 million, compared with $2.5 million in 2014
• Auto - $430,000, compared with $381,000 in 2014
• General Liability - $17,200, compared with $65,000 in 2014
• Homeowners - $530,000, compared with $65,000 in 2014
• Life, Annuities - $294,000, compared with $330,000 in 2014

Recoveries in 2013 were largely focused on homeowners, as a result of Superstorm Sandy-related claims. Department recoveries in 2012 reflect the impact of claims from 2011 Storm Irene and the late October snow-filled Nor’easter that landed in Connecticut.

The Department calculates its consumer recoveries based on what the policyholder received as a result of the Department’s intervention. The inquiries and complaints also help the Department identify industry trends that may adversely affect consumers and trigger investigation by the Market Conduct division, officials said.

In addition, complaint data also help determine topics for consumer education and serve as tools to help the Department monitor the industry.  The Market Conduct enforcement actions are posted on the Department’s web site at www.ct.gov/cid

Rockies, Yard Goats Extend Relationship; Among Top 10 Farm Systems in MLB

When the Hartford Yard Goats take up residence at the new Dunkin’ Donuts Park later this spring, they will continue to be a Double-A farm team of the National League’s Colorado Rockies, which run one of major league baseball’s top 10 farm systems, according to a pre-season analysis  by the website minorleagueball.com. At the top of the rankings – the “elite” organizations – are the Chicago Cubs, Boston Red Sox, Minnesota Twins, Los Angeles Dodgers and Texas Rangers.  The next five, described as organizations that “should be considered very productive with a chance to move into the top group soon,” include the New York Mets, Pittsburgh Pirates, Toronto Blue Jays, Colorado Rockies and Houston Astros.  The New York Yankees farm system was ranked at #13. 

The Hartford Yard Goats Double-A baseball club will launch its inaugural season at home in Hartford on May 31, a delayed opening due to stadium-construction delays.  The team will begin its season playing on the road in April and May.  The Yard Goats will play the Boston Red Sox affiliate Portland Seadogs in June and July of 2016, the New York Yankees affiliate Trenton Thunder in August, and the Binghamton Mets in July and August.

When they finally arrive home, it appears that the Rockies-Yard Goats relationship will not be short-lived.  This week, the Colorado Rockies announced a player-development contract extension for another two years with the Hartford Yard Goats. It will keep the two teams together through the 2018 season.  The original agreement signed in the fall of 2014 was set to expire at the conclusion of this season.

The Yard Goats recently announced the addition of a third founding sponsor.  Stamford's Frontier Communications, which has expanded its Connecticut telecom offerings through its $2 billion acquisition of AT&T landline assets last year, will pay an undisclosed sum for the right to display its signage inside and outside the $66 million stadium under construction in the Downtown North neighborhood.

The company's name will also be on the Frontier Communications Stadium Club, and the deal includes provision of free Wi-Fi for fans at home games.  Frontier joins founding sponsors Travelers and The Hartford Financial Services Group. In addition, Dunkin' Donuts owns the naming rights to the stadium.

Playing last season as the New Britain Rock Cats, the team finished with a record of 69-71, a fourth place spot in the six-team Eastern League’s Eastern Division.

The Hartford Yard Goats have also announced that all 142 games (home and away) will be broadcast live on News Talk 1410AM (WPOP) and will be available for fans to listen on iHeartRadio. News Talk 1410AM will serve as the Yard Goats flagship station over the next three seasons, through 2018. Veteran broadcaster Jeff Dooley will be the "Voice of the Yard Goats" and lead play-by-play announcer for the games.

$80,000 in Grants Boost Preservation Initiatives in 7 CT Communities

Connecticut Main Street Center (CMSC), the downtown revitalization and economic development non-profit, has selected seven organizations and municipalities to receive a share of $80,400 in 2016 Preservation of Place grants. The grants will be used to provide communities in Bridgeport, Canton, Haddam, Fairfield, New Britain, New Haven (Westville Village) and Simsbury with targeted resources to increase their capacity to plan for preservation and revitalization initiatives in their downtowns and neighborhood commercial districts. 

This year's awards are notable because two applicants, Canton and New Britain, sought the grant funds to pursue the creation of tax increment financing (TIF) districts, made possible through the passage of legislation in 2015 that was proposed by a coalition led by CMSC. TIF is a financing mechanism in which an investment in a specified area is repaid over time using the increased tax revenue generated by the investment.

"The projects funded through this year's Preservation of Place round have the potential to be transformative for these communities," said John Simone, CMSC's President & CEO.  "Canton and New Britain may very well become the models for creating successful TIF districts, while Haddam's award can help set the foundation for a unified, mixed-use commercial area that marries their historic charm with a modern, connected design. Certainly, all of the communities represented are as diverse in location as in their unique character, but each has something wonderful to offer, which will only be enhanced through the use of these grant funds."

The Preservation of Place grant program provides a source of funding for new initiatives that can be integrated into, and leverage, comprehensive Main Street preservation and revitalization programs.  The funds are meant to be flexible to meet individual community need.

The 2016 recipients of Preservation of Place grant funds are:

• Bridgeport Downtown Special Services District - Awarded $10,400 for Bridgeport CREATES, Phase II, to assist in the pre-development activities associated with the creation of a Maker Space/ Innovation Center.
• Town of Canton - Awarded $10,000 for a Tax Increment Financing Master Plan for Collinsville Center & the Collins Company Complex to develop a viable TIF agreement, master plan and district to help develop the historic complex.
• Town of Haddam - Awarded $10,000 for a Market Analysis & Village District Zoning Regulations for Tylerville in order to assess viable businesses and draft zoning regulations that will allow for and promote such businesses, as well as mixed-use development, in this historic area.
• Town of Fairfield - Awarded $10,000 for a Signage & Wayfinding Program for Downtown & Neighboring Commercial Districts to help visitors and residents navigate their way around downtown Fairfield's many prominent cultural, tourist and academic attractions.
• New Britain Downtown District - Awarded $10,000 to work in conjunction with the City on the Creation of a Tax Increment Financing District for transit oriented development around the CTfastrak terminus.
• Westville Village Renaissance Alliance (New Haven) - Awarded $20,000 for the Westville Village Comprehensive Plan: The Visioning Phase, a comprehensive plan to guide a sustainable and place-based approach to long-term economic and physical development.
• Simsbury Main Street Partnership - Awarded $10,000 for a Comprehensive Parking Study of Downtown to develop specific parking recommendations, including short- and long-term solutions.

Since 2008, the Preservation of Place grant program has leveraged over $1 million of investment in local Main Street initiatives. Connecticut Main Street Center and the Preservation of Place grant program receive support from the State Historic Preservation Office, with funds from the State of Connecticut through the Community Investment Act.

CT Ranked 14th Among Smaller States for Small Business Activity; MA Is 2nd Among Large States

Small business activity is on the rise in 49 of the 50 U.S. states, according to a new report from the Kauffman Foundation. The report provides a broad index measure of small local business activity, analyzing the states in peer groups of the 25 largest states by population and the 25 smallest states by population.  Connecticut ranked 14^th among the smaller 25 states, for the second consecutive year, and was the lowest-ranked New England state. The density of established small businesses per 100,000 residents increased slightly from the previous year, from 1,147.3 to 1,167.4 in 2015.  Established small businesses are defined in the study as businesses over the age of five employing at least one, but less than fifty, employees.  The rate of small business ownership also grew slightly in Connecticut, from 6.14 percent to 6.34 percent.

Demographic trends for Connecticut noted in the report indicate an increase in native-born small business ownership, and upticks in the percentage of small businesses led by Latinos, 55 to 64 year-olds, 35-44 year-olds, high school graduates and college graduates.  More small businesses are run by men than women.

Overall, what the report describes as “Main Street entrepreneurial activity – an indicator of the number of established small businesses and the number of business owners in a location – experienced a large increase in 2015, reversing a six-year downward and stagnant trend in the U.S.”

"Following a post-recession downward and stagnant trend in small business activity, we're now seeing Main Street Entrepreneurship begin to rise," said E.J. Reedy, director in Research and Policy at the Kauffman Foundation. "This obviously is good news given that these small businesses make up 63 percent of all employer firms nationally."

The Kauffman Index: Main Street Entrepreneurship State Trends report includes these findings:

Among the 25 largest states, the five states with the highest activity were Minnesota, Colorado, Massachusetts, New York and New Jersey. Among the 25 smallest states, the states with the highest activity were Vermont, Montana, North Dakota, South Dakota, Wyoming, Maine, Nebraska, New Hampshire, Rhode Island, Iowa, Oregon, Idaho, and Kansas.

Insights on business owner demographics for the 25 smallest states, including Connecticut:

• States with the highest rates of female business owners were Vermont, Montana, Wyoming, Oregon, and South Dakota.
• States with the highest rates of older adult business owners (ages 55-64) were South Dakota, Vermont, North Dakota, Montana and Nebraska.
• States with the highest rates of young adult business owners (ages 20-34) were South Dakota, North Dakota, Montana, Wyoming and Vermont.

Tennessee is the only state that did not show an increase in established small business activity in 2015 compared with 2014.

The new Main Street Entrepreneurship Index is an indicator of small business activity, presenting trends over the past two decades, focusing on established small businesses (firms older than five years with less than 50 employees) and trends in ownership rates. The Index measures business activity along two distinct and complementary dimensions: the rate of business owners in the economy – the percentage of adults owning a business in a given month, and established small business density – the ratio of established small employer businesses compared to population.

The Kauffman Index of Entrepreneurship is the first and largest index tracking entrepreneurship across city, state and national levels for the United States, and also presents demographic characteristics of the business owners.

In a companion study and report, focusing on the nation’s largest metropolitan areas, Small business activity is on the rise 38 of the top 40 largest metropolitan areas, the top five metropolitan areas for small business activity as measured by the Index were New York, Boston, Providence, San Francisco and Portland.  The report on metropolitan areas noted that “the one to experience the biggest increase in rankings was Providence, which moved up three spots to tie with Boston for second place in the 2015 Index.”

Whalers Departing Attendance, Carolina's Recent Attendance, Among NHL's Lowest (Hartford Higher)

During the 2014-15 National Hockey League season, the teams with the lowest average home attendance were the Arizona (13,345), Carolina Hurricanes (12,594) and Florida Panthers (11,265). So far in the current season, through 23 home games, the attendance for Hurricanes games has sunk even lower, averaging 11,390, lowest in the league.  They are the only team in the league to draw less than 13,000 fans per game.

Fifteen years ago, during the 2000-01 season, the attendance numbers weren’t much better.  Carolina had the league’s second lowest attendance, drawing an average of 13,355 per game for 41 home games.  That ranked 29^th in a 30-team league.

That was also only a handful of seasons after the teams’ move South, ending their 18-year history as the Whalers in Hartford, moving to Greensboro, North Carolina and becoming the Carolina Hurricanes for the start of the 1997-98 season.

In the 30-team league, during the past 15 years, Carolina has been among the league’s bottom-third in  average attendance eight times, and the bottom-half every season but one.  In 2006-07, the team ranked 15^th in the league, their high-water mark.  It was the season after the team won the league’s Stanley Cup.   (The 2004–05 NHL season was not played due to a labor dispute.)

Those attendance number aren’t significantly different that the attendance levels when the team abruptly departed Hartford, nearly two decades ago.  In early 1996, a 45-day “Save the Whale” season-ticket drive resulted in 8,300 season tickets sold, about 3,000 more than the previous year.  In the aftermath of the season ticket drive, and heading into the 1996-97 season, the Whalers management said they would remain in Hartford for two more years, in accordance with their lease.

In the Whalers' final season in Hartford, 1996-97, attendance at the Hartford Civic Center had grown to 87 percent of capacity, with an average attendance of 13,680 per game.  Published reports suggest that the average attendance was, in reality, higher than 14,000 per game by 1996-97, but Whalers ownership did not count the skyboxes and coliseum club seating because the revenue streams went to the state, rather than the team.  Attendance increased for four consecutive years before management moved the team from Hartford. (To 10,407 in 1993-94, 11,835 in 1994-95, 11,983 in 1995-96 and 13,680 in 1996-97.)

During the team’s tenure in Hartford, average attendance exceeded 14,000 twice – in 1987-88 and 1986-87, when the team ranked 13^th in the league in attendance in both seasons.

Last season’s top attendance averages were in Chicago (21,769), Montreal (21.286), Detroit (20,027), Philadelphia (19,270), Washington (19.099), Calgary (19,097), Toronto (19.062), Minnesota (190230 Tampa Bay (188230 and Vancouver (18,710).  The New York Rangers drew an average of 18,006, ranking 17^th in the league in average attendance.

Florida’s attendance last year was a league-low 11,265; Arizona was 13,345 per game. The previous season, the New York Islanders, Columbus Blue Jackets, Dallas Stars, Florida Panthers and Arizona Coyotes all drew less than 15,000 fans to home games across the season.  So far this season, with about half the home games played, five teams continue average 14,000 fans per game or less.

On March 26, 1997, Connecticut Gov. John G. Rowland and Whalers owner Peter Karmanos Jr., who had purchased the team in 1994, announced that the Whalers would leave Hartford after the season because they remain far apart on several issues, with the main sticking points linked to construction of a new arena. The team agreed to pay a $20.5 million penalty to leave at the end of the season, a year before its commitment was to expire.

The final Whalers game in Hartford was on April 13.  Less than a month later, the Carolina Hurricanes were born, beginning play that fall in Greensboro while a new facility was built in Raleigh.  Efforts to bring the NHL back to Hartford since that day have been unsuccessful.