Higher Ed Panel on Innovation and Entrepreneurship Seeks to Map Statewide Plan

The charge of the state's Higher Education Innovation and Entrepreneurship Initiative is to strengthen innovation and entrepreneurship within Connecticut’s public and private higher education institutions while fostering collaboration and providing economic value to Connecticut. The Higher Education Innovation & Entrepreneurship Working Group, in accordance with Public Act 16-3, met in December, and again in mid-February, and aims to complete its work in May to develop a plan to support innovation and entrepreneurship.  Joanne Berger-Sweeney, Trinity College president and professor of neuroscience, and Mark E. Ojakian, president of the Connecticut State Colleges and Universities system (CSCU), were selected in December to co-chair the working group that includes public and independent institutions of higher education from throughout the state.

The group, which is staffed by CTNext, will send its strategic roadmap to CTNext’s board of directors for approval. Once the plan is approved, the board will elect an advisory committee made up of public and private school officials and student representatives. This new committee will advise the CTNext board of directors as it deploys $2 million each year for the next five years to projects and initiatives that fit the priorities identified in the strategic road map, according to the CTNext website.

The working group is tasked with developing a master plan for fostering innovation and entrepreneurship at in-state public and independent colleges and universities. The master plan will:

1. address opportunities and risks to innovation and entrepreneurship resulting from existing and emergent conditions affecting entrepreneurial programs and initiatives at institutions of higher education;
2. assess the scope and scale of existing entrepreneurial programs and initiatives at such institutions in the context of best practices at state and national institutions of higher education that are leaders in innovation and entrepreneurship;
3. recommend initiatives that facilitate collaboration and cooperation among institutions of higher education on projects that address and strengthen innovation and entrepreneurship at such institutions;
4. provide for the establishment of a state-wide intercollegiate business plan competition; and
5. identify funding priorities for higher education entrepreneurship grants-in-aid pursuant for projects that expand and enhance entrepreneurial programs and initiatives or projects involving partnerships among institutions of higher education.

“As co-chair, I look forward to working closely with colleagues from across Connecticut,” said Berger-Sweeney. “Our strategic planning to support entrepreneurship and innovation is critical to the economic vitality and future of the state.”

“I’m excited to work with all our presidents, both public and private, to find ways to nurture innovation and entrepreneurship at our institutions,” said CSCU President Ojakian. “Our mission is help our students turn their creative ideas into businesses that will grow and thrive in Connecticut.”

During the working group’s December meeting, which ran just over an hour, participants from 27 colleges and universities, including the presidents of most of the institutions, discussed the challenges and opportunities to advance innovation and entrepreneurship on their campuses and in the state.

According to the meeting minutes, there was discussion on how best to allocate $10 million ($2 million/year for 5 years), centered on determining a strategy to leverage the funds.  Participants suggested a focus on partnerships, and urged efforts to “think from the beginning about how to connect people (broadly) to the jobs that will be created,” along with a “commitment to creating a whole that is greater than the sum of the parts.”  Education leaders also noted that Connecticut “is relatively more highly regulated than other states in public education,” which could make the effort “more difficult.”

The college and university leaders also listed an array of assets that exist in Connecticut which could spur their efforts.  Among those cited were:

• Strong medical/bio-science institutions
• Long standing leader in advanced manufacturing
• Lower cost of real estate relative to Cambridge and Silicon Valley
• Leadership in aerospace
• International linkages/partnerships
• Prime location between NYC and Boston

Also mentioned was the fact that Connecticut has “a lot of empty buildings” in “legacy cities ripe for redevelopment.”  Connecticut’s status as a financial capital, and the potential collective political force of higher education leadership were also noted as potential pluses.

Late last year, CTNext issued an RFP for “qualified independent higher education institutions, policy institutes, or research organizations to conduct certain analyses of innovation and entrepreneurship in the state.”  The assignment proposed included: “a baseline assessment of the state’s innovation and entrepreneurship based on certain program measures,” including:

1. the increase or decrease in the state’s (a) start-up businesses, including growth stage start-ups; (b) software developers; and (c) serial entrepreneurs (i.e. those having brought at least one start-up business to venture capital funding by an institutional investor);
2.  job growth within growth-stage businesses;
3. the amount of private venture capital invested in start-up and growth-stage businesses;
4. employee turnover at start-up and growth-stage businesses;
5. the amount of entrepreneurship and innovation research funded by higher education institutions in the state;
6.  the rate at which businesses enter and leave the state; and
7. the degree to which the state’s (a) hiring rate exceeds its job creation rate and (b) employment separation rate exceeds its job loss rate.

CTNext is Connecticut’s innovation ecosystem designed to build a more robust community of entrepreneurs and to accelerate early-stage growth by providing access to talent, space, industry expertise, services, skill development, and capital to foster innovation and create jobs in Connecticut.  CTNext is a wholly-owned subsidiary of Connecticut Innovations.

Photos:  Trinity College President  Joanne Berger-Sweeney, CSCU President Mark Ojakian; February meeting of working group.  

Disparities Evident As Fairfield County Considers Its Community Wellbeing

Fairfield County’s sizeable immigrant population - twenty percent of Connecticut’s most populous county - grew 89 percent from 1990 to 2014. In some municipalities, foreign-born residents make up as much as a third of the population. That is among the findings in the Fairfield County Community Wellbeing Index 2016, which examined regional demographics, economic opportunity, education, health, quality of life, and happiness.  The report includes analysis of the communities, populations, and neighborhoods of Fairfield County, as well as opportunities available and issues facing the area.

Since 1980, the size of the population living in neighborhoods that are considered most affluent – defined as those with an average family income more than 2.5 times higher than the state level - has tripled within Fairfield County. Meanwhile, the number of people living in poor neighborhoods is 3.5 times its 1980 size. The number of people in middle-income neighborhoods has decreased by sixteen percent.

Fairfield County’s Community Foundation, a major funder of the report, partnered with DataHaven, area hospitals, and government agencies to help launch a more robust and comprehensive resource that could serve as a part of the hospitals’ and health departments’ Community Health Needs Assessments as well as a broader county-wide indicators program.

“Fairfield County’s Community Foundation is committed to addressing the most pressing issues facing Fairfield County, but to do that we first need to be able to identify and understand those issues,” stated Nancy M. von Euler, Vice President, Programs, Fairfield County’s Community Foundation. “The data in the Fairfield County Community Wellbeing Index 2016 will help us to develop priorities for collective action to build a stronger, healthier Fairfield County where everyone has the opportunity to thrive, regardless of their zip code.”

The report states that "Despite its overall affluence, Fairfield County is among the nation’s most unequal metropolitan areas. Inequities in well-being appear when evidence is stratified by income, age, race, gender, and zip code. These differences are often most apparent after considering data that were collected specifically for the age groups and neighborhoods that are most impacted."

Among the findings, between 2014 and 2025, adults ages 65 and over are Fairfield County’s only age group projected to grow significantly, with a thirty-seven percent increase. Disparities in the County were also evident:

• High and rising childcare costs are often prohibitively expensive for low and middle-income families. While Fairfield County has nearly enough spaces for all 3- to 4-year-olds to attend preschool, there are only enough regulated childcare slots for fifteen percent of the county’s children ages 0 to 2, and enough subsidized slots to cover only twenty-two percent of these youngest children in low-income households.

• The issue of dental care arose as an indicator of well-being, particularly among younger adults and families. The Index shows that for every 10,000 residents living in Fairfield County, 12 residents visit an emergency room to receive treatment for preventable dental conditions in any given year, whereas on the East Side of Bridgeport, 178 residents do.

• Fairfield County residents are healthy when compared to national benchmarks. However, many conditions and risk factors—such as asthma, food insecurity, exposure to community violence, and the early onset of diabetes—are disproportionately prevalent in lower-income neighborhoods and communities of color. Sections of Bridgeport in particular fall very far behind the surrounding area in many of these measures.

• Disparities in access to reliable transportation persist between racial and income groups. A majority of Fairfield County workers, regardless of income, commute to another town for work. Many low-income (annual wages under $40,000) workers leave Bridgeport for work, while large shares of high-income workers commute to New York City.

“The process of developing this report allowed local partners and community members to identify links between the well-being of residents and the places where they live. Looking beyond typical measures like income levels or unemployment rates, the Community Wellbeing Index reveals a much more uneven distribution of opportunities in areas such as neighborhood walkability, economic development, public health, and education,” said Mark Abraham, Executive Director of DataHaven and a lead author of the report. “The impact that these barriers to opportunity have on overall well-being and happiness will serve as a call to action for many groups working to improve Fairfield County’s diverse neighborhoods and towns.”

The Fairfield County Community Wellbeing Index 2016 was based on a variety of federal and statewide data sources. Partners of DataHaven’s Fairfield County Community Wellbeing Index 2016 include Fairfield County’s Community Foundation; Bridgeport Hospital; Danbury Hospital; Greenwich Hospital; Norwalk Hospital; St. Vincent’s Medical Center; and Stamford Hospital.

10 CT Companies Are Finalists at Entrepreneur Innovation Awards, Three Receive Funds to Boost Growth

Fledgling entrepreneurial businesses in West Hartford, New Haven and Marlborough will be getting a financial boost in their efforts to gain a foothold in their respective industries. CTNext, Connecticut’s go-to resource for entrepreneurial support, announced the three winners of the most recent Entrepreneur Innovation Awards (EIA), held this month at the Connecticut Historical Society in Hartford.

The finalists, Connecticut-based companies and entrepreneurs, presented their innovative project ideas to a panel of entrepreneurial experts for an opportunity to secure $10,000 awards to help support business growth. The top winners, to receive $10,000 awards, were:

• GinzVelo Hybrid Electric Cycles (West Hartford): A personal transportation solution powered by pedaling or the electric motor to effortlessly travel up to 100 miles to and from your destination.
• Sweetflexx (Marlborough): Resistance technology active wear enables muscles to work more efficiently, resulting in a higher rate of calorie burn.  McCullough Shriver founded Sweetflexx. (see video below)
• Verb Energy Manufacturing (New Haven): A healthy, caffeinated, energy bar that combines your cup of coffee and an energy bar for less cost. Verb Energy  was founded in 2016 by four Yale students.

The “judges’ favorite” went to Sweetflexx, and the “crowd favorite” was awarded to Verb Energy.  Each business will receive an additional $2,000.

The other finalists included:

• Global Hydro Pneumatic High Tech Inventions (Shelton) Developing an all-wheel hydraulic power jack system that is safer and less damaging to cars.
• Loki (Woodbridge) Creating an app that gives users control over their own multi-perspective visual experience.
• Mobile Sense Technologies (Farmington) Engineering an “off-the-chest” ECG monitor for 24/7 management of cardiac arrhythmias.
• Obvia (West Hartford) Creating a lightweight, dual-winglet blade for small to mid-sized wind turbines that is both energy- and cost-efficient.
• Olie Robotics (Manchester) Building a professional robotic vacuum that cleans offices at a third of the cost with no labor hassles.
• PennSMART (North Branford) Producing a universal retrofit for lighting fixtures that allows surveillance and sends alert notifications.
• Trekeffect (Niantic) Creating an app that allows individuals to sell their travel itineraries.

“The Entrepreneur Innovation Awards seek to give new and growing companies the support they need to thrive,” said Glendowlyn Thames, executive director of CTNext. “Through these events, we have seen a number of incredible companies that are changing their respective industries and creating a positive economic impact in our state. These grants continue to support companies at the earliest stages of growth and to drive them to the next level of development.”

To be eligible for an EIA, startups must be Connecticut-based, registered as CTNext members, and looking to conduct growth-related activities to help advance their business. Project examples include but are not limited to prototyping, performance testing, compliance testing, product or service development, market research, licensing and more.

A full list of criteria can be found on the application page. For more information on the program or to apply, please visit: http://ctnext.com/entrepreneur-innovation-awards/.  CTNext launched in 2012 and has more than 1,500 members in its network, since initiating the awards program in February 2014 CTNext has awarded $544,000 to 52 companies.

The goal of CTNext is to build a more robust community of entrepreneurs and to accelerate startup growth by providing access to talent, space, industry expertise, services, skill development and capital to foster innovation and create jobs for people in Connecticut.

https://youtu.be/f7AxJz-KsUA

Bridgeport, Stamford, New Haven, Hartford, New Britain Among Most Culturally Diverse Cities in USA

Five Connecticut cities are among the nation’s most culturally diverse, according to a new analysis.  Bridgeport is the 15^th most culturally diverse city in the U.S., according to the analysis by the financial website WalletHub, which also ranked Stamford at number 22.   New Haven, Hartford and New Britain were back-to-back-to-back, ranking  at number 30, 31 and 32 on the list of more than 500 cities across the country. Bridgeport’s cultural diversity score was 86.34, and the city ranked 28^th in ethno-racial diversity, 17^th in linguistic diversity and at number 150 in birthplace diversity.  Stamford’s cultural diversity score was 84.29, and the city ranked 63th in ethno-racial diversity, 20th in linguistic diversity and at number 103 in birthplace diversity.

New Haven’s scores and rankings were similar, with a 83.02 cultural diversity score, and ranking at number 76 in linguistic diversity and number 132 in birthplace diversity.  New Haven was the only Connecticut city to rank in the top 10 in any category, finishing ranked at number 10 in ethno-racial diversity.

When the analysis broke metropolitan areas down by size, among medium sized cities Bridgeport, Stamford, New Haven and Hartford all ranked in the top 15 most culturally diverse.  Waterbury ranked at number 19.  Among small cities, New Britain ranked 8^th, Danbury 10^th, Norwalk 15^th and West Hartford 76^th.  Large cities in the analysis were those with more than 300,000 people; midsize cities with 100,000 to 300,000 people, and small cities with fewer than 100,000 people.

The most culturally diverse city in the U.S. is Jersey City, New Jersey, with a score of 95.88.  New York City ranked sixth; Providence was at number 12.

“The country as a whole is becoming increasingly ethnically diverse, and living in an ethically diverse city today is good exposure to the opportunities and challenges all cities will be facing sooner or later,” said Mario Luis Small, Grafstein Family Professor of Sociology at Harvard University.  “Ethnic diversity in neighborhoods is associated with a strong preponderance of businesses and local organizations that generate economic activity and sustain community.  Children exposed to ethnic and language diversity early on, develop a broader and more sophisticated understanding of the diversity of the world.”

In determining the cultural diversity scores, the three categories were weighted, with racial and ethnic diversity making up 50 percent of the score, language diversity 33 percent and U.S. region of birth diversity consisting of 17 percent of the score.  The regions were in-state, Northeast, Midwest, South, West, U.S. territories, and foreign-born.

Survey Says: Hartford Is Among Nation’s Top Up-and-Coming Cities

What do Milwaukee, Syracuse and Hartford have in common? They are all – believe it or not – the nation’s most notable “up-can-coming place to live,” according to a new national analysis of the top places to live in the U.S.

In calculating the second-annual ranking of the Best Places to Live in the U.S., which evaluates the 100 most populous metro areas in the country based on qualities that Americans care about most, U.S. News looked at affordability, employment opportunities and the overall quality of life in each place.  Hartford’s ranking jumped from number 59 a year ago to number 31 this year, among the largest leaps of any city in the nation.

The leading reason cited by the publication is the increase in jobs.

"The Hartford region has seen some strong employment growth in a number of high-productivity sectors, including professional, technical services, education and health services," said Alissa DeJonge, vice president of research at the Connecticut Economic Resource Center.

The types of job opportunities that are available in the Hartford area tend to pay well, the publication points out, “with residents earning nearly $57,000 per year on average, which is significantly more than the average American's salary of $48,320 per year. United Technologies Corp. provides employment to residents in the manufacturing and engineering sectors, and the region is home to some of the country's largest financial institutions, including Aetna Inc. and the Hartford Financial Services Group.”

"Hartford is known as the 'insurance capital' of the U.S., a title substantiated with Connecticut ranking No. 1 in the U.S. for insurance employment per capita, with many of those employers located in the Hartford region," added Susan Winkler, executive director of Connecticut Insurance and Financial Services. "Connecticut is also home to the highest concentration of actuaries – many located in the Hartford region."

The U.S. News review also notes that the region features a diverse selection of restaurants and cultural attractions. Paul Pita, CEO and executive creative director of Hartford-based digital marketing firm The Pita Group, told U.S. News "Hartford is a great place to live because residents have access to what they need: great options for housing, great educational options and a wide variety of lifestyle options for food, arts, culture, entertainment and outdoor activities."

Syracuse moved from #53 to #28, and Milwaukee climbed from #72 to #47.  The top 10 places to live in the U.S., according to the rankings, are Austin, Denver, San Jose, Washington D.C., Fayetteville, Seattle, Raleigh/Durham, Boston, Des Moines, Salt Lake City and Colorado Springs.  Portland, Maine ranked #26 and Albany ranked #30, just ahead of Hartford.  New Haven ranked #81 in the top 100.

The metro areas included in the rankings were evaluated by U.S. News using data from sources including the United States Census Bureau, the Federal Bureau of Investigation, the Department of Labor and U.S. News' own internal resources. This data was categorized into five indexes – Job Market (including salary and unemployment rates), Value Index (including cost of living), Quality of Life Index (including education, crime, commuting, and health care), Desirability Index, and Net Migration - and then evaluated using a methodology determined by Americans' preferences. The percent weighting for each index was determined by the answers to a public survey in which people from across the country voted for what they believed was the most important thing to consider when thinking about moving, according to U.S. News.

Changing Leadership Atop Leading Philanthropy Organizations

Two leading organizations in Connecticut’s philanthropic community are at the crossroads of leadership changes.  The Connecticut Council for Philanthropy (CCP) has announced the end of its national search for a new leader with the selection of Karla Fortunato to be its new president, effective May 1.  The Hartford Foundation for Public Giving, one of the nation’s largest community foundations, has embarked on its own national search, and announced that Yvette Meléndez has been appointed interim president, effective March 20, as that search process continues. Fortunato comes to CCP after 13 years at the Health and Environmental Funders Network (HEFN), a national alliance of 60 philanthropic organizations based in Rockville, MD.

As director of HEFN, she has managed its programming, outreach, and operations, promoting collaboration on shared goals among its members.  Fortunato previously served as associate director of policy for Health Care for All in Boston, engaging in policy research, communications, and campaigns, and as a consultant for The Public Policy Institute, also in Boston.

"Karla's experience in building alliances among funders and engaging in public policy outreach make her ideally suited to lead our organization," said Judith Meyers, chair of CCP's Board of Directors. "She is a proven leader with a strong vision of how to mobilize the power of philanthropy to effect positive change--and she has a true passion for the work."

Fortunato graduated magna cum laude from the Randolph-Macon Woman's College in Virginia and earned an MBA (also magna cum laude) from George Washington University. She serves on the Health Leadership Circle of MomentUs, a campaign for climate change solutions. She served as a member of the Serving Communities Committee of the National Conversation on Public Health and Chemical Exposures and as a citizen representative on the Montgomery County Citizen's Advisory Board. A native of Connecticut, she and her family look forward to relocating here from their current home in Jacksonville, Florida.

The Connecticut Council for Philanthropy (CCP) is an association of grantmakers committed to promoting and supporting effective philanthropy for the public good. CCP's 114 members are foundations (private, corporate, community), business and corporate giving programs, bank trusts, donor-advised funds, individual philanthropists and those serving the philanthropic sector. CCP members annually grant more than $858 million from assets of more than $7.6 billion.

Meléndez has served on the Hartford Foundation's board for close to 12 years, the last three as chair. She has more than 30 years of successful managerial experience in state government, higher education and at Hartford Healthcare, from which she is recently retired. She will take a leave of absence from the board during this time, and will serve as interim until a new president is named. Meléndez is not a candidate for the position. Linda J. Kelly announced her retirement as president of the Hartford Foundation for Public Giving, last March, effective next month, after 10 years leading the organization.

The Hartford Foundation for Public Giving is the community foundation for Hartford and 28 surrounding communities.  In 2015, the Foundation celebrated ninety years of grantmaking in the Greater Hartford region, made possible by the gifts of generous individuals, families and organizations.  It has awarded grants of more than $680 million since its founding in 1925.

PHOTO:  Karla Fortunato (left), Yvette Meléndez (right)

Whalers Hartford Attendance 20 Years Ago Exceeds Islanders in Brooklyn

For Hartford hockey fans of the Whalers vintage, a peek at this year’s National Hockey League (NHL) attendance figures are either demoralizing or encouraging – or both.  It has been two decades since the Whalers were uprooted by ownership, replanted in North Carolina and renamed the Hurricanes, and two weeks since Gov. Dannel Malloy and Hartford Mayor Luke Bronin took their first shot at the now Brooklyn-based New York Islanders. Lowest attendance in the NHL this year belongs to the Carolina Hurricanes, at 12,025 through 24 home games, followed at the bottom of the league by the Islanders, averaging 12,829 through 32 home games, as of this week.

Last year, the 2015-16 season, the Hurricanes averaged 12,203 for their 41 home games, last in the league, while the Islanders were third lowest in the NHL at 13,626.  Both are lower than the Whalers average attendance in their final season in Hartford, nearly two decades ago.

In comparison, the top teams in the league this year for home attendance are the Chicago Black Hawks, averaging 21,669 and Montreal Canadians, seeing 21,288 per game thus far this year.

In their final season on Long Island at the Nassau Coliseum in 2015-16, the Islanders average home attendance was 15,189, an increase from the immediate previous seasons.  The Carolina Hurricanes had the second lowest attendance in the league that year, at 12,594.  During the 2012-13 season, the Islanders attendance was the lowest in the 30-team league, at 13,306.

With more than 1,000 obstructed seats in the Barclay Center arena that the Islanders share with the New York Nets in Brooklyn, rumors have circulated since last year of a possible move to a new arena in Queens built for hockey, unlike the Islanders current home, first and foremost a basketball arena.  There has been local opposition to that possibility.  Recent published reports have also indicated that the Barclay Center and Islanders could part company after the 2018-19 season or a year earlier if the team decides to relocate.

With no official word one way or the other, Connecticut officials are taking their shot, with a possible assist from a $250 million makeover of the XL Center, former home of the Whalers.  That proposal must be approved by the state legislature, a tall order at a time when the state budget deficit is approaching $2 billion.

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 13th in the league in attendance in both seasons.

In recent years, the Islanders have been at or near the bottom of the league in home attendance:

• 2015-16       28^th
• 2014-15      25^th
• 2013-14      26^th
• 2012-13      30^th
• 2011-12      29^th
• 2010-11      30^th
• 2009-10      29^th

Whalers merchandise continues to sell well, despite the team not having played a single game in this century.  Whalers merchandise was Reebok's top selling non-current NHL team, according to published reports in 2015. While the company has expanded its lineup to include Whalers logos from different eras, the Hartford Business Journal reported, gear featuring the team's original logo remained the most popular and continues to be offered on the NHL Official Shop website, on multiple websites and in retail locations in the U.S. and Canada.

The Connecticut officials said “this is a ready market anxious for an NHL team, eager to fill seats, buy merchandise, and support your team,” reminding Islanders officials that ““Your AHL affiliate is in nearby Bridgeport, allowing quick and easy access to your minor-league players, and represents a footing in Connecticut of the Islander franchise.”

The NHL has given no indication that it will approve a move out of the New York market, according to NBC Sports, although Commissioner Gary Bettman has said that the teams owners “are reviewing the situation and looking very seriously at what their options are.”

The only statement released by Islanders ownership after receiving the letter last week from Malloy and Bronin said the team does “look forward to another great year of New York Islanders hockey at Barclays Center next season.”  No word on what might, or might not, occur after that.

Norwalk, Stamford Gain New Businesses, Taking From Each Other

Octagon Inc., a sports and entertainment marketing and talent management agency, is relocating its headquarters to the Shippan Landing complex in Stamford. The company, which is moving from Norwalk, has signed an 11-year lease to occupy 57,009 square feet across the entire third floor and a section of the second floor of the property at 290 Harbor Drive along the Stamford waterfront. The move apparently comes without state financial incentives, and comes months after another corporate citizen made the reverse move – from Stamford to Norwalk – with a boost from state incentives.  Less than 15 miles and 15 minutes apart, two of Fairfield County’s leading cities are experiencing the corporate version of “Trading Places.”

Crius Energy, through its wholly owned subsidiary Regional Energy Holdings, announced plans last year to move its headquarters from Stamford to Norwalk, placing 200 jobs in the city and committing to add 225 more over the next four years, according to an announcement in May from the Governor’s Office.

Officials said the company – launched in Connecticut – has become one of the largest independent energy retailers in the United States, supplying electricity, natural gas and solar energy products to more than 900,000 customers across 19 states and the District of Columbia, including 100,000 in Connecticut. According to officials, Crius also has operations in Florida, Texas and Australia.  They had outgrown their Stamford facility, which led to plans for a $29 million project in Norwalk, to include the renovation of 48,000 square feet of an existing building. 

To encourage the move, the state Department of Economic and Community Development (DECD) said it would provide a 10-year, $8 million low-interest loan to support the project, funding that can be used for fixtures and equipment and leasehold improvements. Crius is also eligible for up to $2 million in tax credits through the Urban and Industrial Sites Reinvestment Tax Credit Program, as well as a $100,000 grant to train employees, according to state officials.

The Crius Energy website points out that “Although based in Connecticut, many members of our leadership team have relocated great distances to become a part of Crius Energy. Together, they bring more than a century of combined industry and functional expertise as well as a deep-rooted passion for transforming the retail energy sector.”

It was a year and a half ago, in May 2015, that the first lease signing was announced for the then newly-renovated five story, 185,000 s/f office building within the 17-acre Shippan Landing waterfront office park in Stamford. That tenant was Stamford-based Workpoint, a provider of co-working environments geared to the needs of media firms along with independents and professionals.

Published reports indicated that since being acquired in 2012 by George Comfort & Sons in a partnership venture with Angelo Gordon & Company, the six-building, 758,000 s/f office park, formerly known as Harbor Plaza, saw an extensive repositioning and modernization program, which was then nearing completion. Workpoint leased a total of 15,173 s/f, including a 1,000 s/f multicamera studio with green screen, control room, and editing facilities on the building’s second floor, according to published reports at the time.

“Shippan Landing continues to be the preferred destination for some of the nation’s top creative companies and we are pleased to welcome Octagon to our tenant roster,” said Peter S. Duncan, president and CEO of George Comfort & Sons.  Among Octagon’s many clients are household names from the sports world - Stephen Curry of the Golden State Warriors, members of the World Series champion Chicago Cubs and other major league players, current and retired, and Olympic gymnast Simone Biles.

Shippan Point offers what the company describes as “truly is the best business location in the Stamford area,” with “spectacular grounds and magical stretching views.”

Back in 2013, the state Bond Commission approved $1 million in borrowing to help an emergency home repair company move its headquarters from Stamford to Norwalk.  The bonding was aimed at assisting the HomeServe USA Corporation in relocating its headquarters as part of an agreement to create 130 jobs and maintain another 109. In addition to a $1 million grant, the company was also eligible for a $3 million, partially forgivable, loan and up to $5 million in tax credits, local media reported.  The company’s customer call center is located in Tennessee.

And last May, the State Bond Commission approved $22 million in grants and loans for the world's largest hedge fund despite what press reports described as bipartisan complaints that the wealthy company can afford the move without state incentives.  The commission voted 7-2 to award the package to Bridgewater Associates, a financial industry powerhouse operated by Greenwich billionaire Ray Dalio, one of the nation's wealthiest individuals.

At the time, state officials indicated that the financial package helped to prevent the company from potentially relocating from Connecticut to nearby Westchester, N.Y.  The money was expected to be used to renovate and expand the firm's Westport headquarters, along with operations in Wilton and Norwalk, published reports explained. In addition to the loan, Bridgewater was said to also be eligible for two grants: $3 million for energy-efficiency upgrades and $2 million for job-training efforts.  The state apparently initially offered Bridgewater $130 million in loans and grants but the amount was scaled back after the company scrapped plans to build a new corporate complex in Stamford, south of I-95, in the face of local opposition, reports indicated.

https://youtu.be/7mfWZhlN4rE

Percentage of Unbanked, Underbanked Households Continues to Climb in CT, Now Exceeds 1 in 5 Households

One in five Connecticut households is unbanked or underbanked, according to data compiled by the Federal Deposit Insurance Corporation, and the percentage of residents unbanked – those that do not have an account at an insured institution - has climbed in the state over the past six years. The percentage of Connecticut households considered unbanked has risen steadily, from 5.3 percent in 2009 to 6.2 percent in 2015, the most recent year for which data is available.  Connecticut ranked 21st in the nation in the percentage of unbanked households. 

Overall, the percentage of state households thatare either unbanked or underbanked increased slightly, from 20 percent to 21 percent between 2013 and 2015.  Those considered unbanked had a checking or savings account but also obtained financial products and services outside of the banking system.

Connecticut’s percentage of unbanked and underbanked individuals is better than the national average, which is 26.9 percent.  Nationally, 68 percent are considered to be fully banked, with an account or accounts at an insured institution, compared with 73.3 percent in Connecticut.

To assess the inclusiveness of the nation’s banking system, and in partial fulfillment of a statutory responsibility, the FDIC conducts biennial surveys of households to estimate the proportion of households that do not fully participate in the banking system.  The survey provides estimates of the proportion of U.S. households that do not have an account at an insured institution, and the proportion that have an account but obtained (nonbank) alternative financial services in the past 12 months.

Estimates from the 2015 survey indicate that 7.0 percent of households in the United States were unbanked in 2015. This proportion represents approximately 9.0 million households. An additional 19.9 percent of U.S. households (24.5 million) were underbanked,

The 2015 FDIC National Survey of Unbanked and Underbanked Households presents new data and insights on the size of unbanked and underbanked markets at the national, regional, state, and large metropolitan statistical area (MSA) levels. This is the fourth installment of the report.

In the Hartford-East Hartford-West Hartford metropolitan statistical area, a slightly higher percentage of households are unbanked or underbanked – 25.6 percent.  In the New Haven-Milford MSA, that percentage is slightly lower than statewide, at 19.5 percent.  The Bridgeport-Stamford-Norwalk MSA is lower still, at 18 percent.

Lembo Develops Plan Aimed at Bringing Drug Costs Within Reach

State Comptroller Kevin Lembo, after what was described as “exhaustive research and consultation with representatives across all sectors of the health care industry,” has developed a five-point plan to address “skyrocketing pharmaceutical drug costs.” Lembo’s proposed legislation, which is to be considered by legislators in the five-month session that began earlier this month, aims to be comprehensive in addressing a range of interrelated issues.  Those issues include requiring justifications for sharp price increases, establishing oversight of drug costs that exceed certain thresholds, ensuring that consumers benefit from rebate savings, promoting insurance plans that emphasize affordable co-pays and preventive care, and eliminating incentives that perversely encourage providers to prescribe the most expensive drugs.

“In a divided country,” Lembo said, “when we’re desperate to find common ground, virtually everyone can agree that prescription drug costs are out of control and must be fixed.  This rise in patient cost share, combined with the rising prices of pharmaceuticals is creating a significant financial burden for Connecticut residents,” Lembo added, noting that “consumers are increasingly bearing a greater share of those costs.”

Lembo, who served as Connecticut’s first Healthcare Advocate prior to being elected State Comptroller in 2010, currently administers the state health plan on behalf of approximately 200,000 people.  The plan includes:

• Require pharmaceutical manufacturers to justify launch prices and price increases over a certain threshold

To address rising drug prices that appear to be arbitrary and unjustifiable, Lembo proposes a requirement that when drug manufacturers increase prices beyond certain thresholds, (for example, list prices increase over 50 percent in the last five years or 15 percent in the last year or launch prices 30 percent or more above the average price for other drugs in a therapeutic class) they must provide the state with information about total costs for producing specific drugs and costs for research and development, marketing, different prices charged for the drug, total profit from specific drugs, research and development efforts that have not resulted in any approved drugs, details about discounts and rebates provided and, of course, a justification for the launch price or the price increase in question.

The findings of a state review would be reported to the legislature and governor to evaluate the appropriateness of the price increases in question.

• Limit the launch price and annual increases of certain high cost drugs

Establish a working group to evaluate the potential of using the information reported above to regulate drug prices in certain egregious instances through the creation of a state-level drug price review board. The authority would review the launch prices of new drugs and annual increases of existing drugs that exceed certain thresholds. The working group should recommend a process for determining if the launch prices or price hikes are justified and recommend possible state actions to take when increases are deemed unjustified.

• Promote the adoption of value-based insurance design

The state Department of Insurance (DOI) and the state health exchange should be required to promote the adoption of plans that use a value-based insurance design. Value-based insurance for prescription drugs generally encourage medication adherence by reducing or eliminating co-payments and deductibles for drugs that help control chronic conditions.  Better managed chronic diseases reduce in-patient hospital stays and emergency room visits by individuals with chronic diseases. The state employee plan has seen significant increases in medication adherence since adopting a lower co-pay structure for maintenance drugs through the state Health Enhancement Plan.

• Allow consumers to benefit from negotiated drug rebates.

Require health plans to base co-insurance and deductible payments on the net price of the drug, post rebate, rather than the list price, allowing the consumer to share in rebate savings negotiated by the pharmacy benefit manager or plan administrator.  For certain highly rebated drugs the list price can be as much as three times more than the final price paid by a health plan after manufacturer rebates.

• Remove incentives for physicians to administer higher cost drugs.

In 2004, Medicare began to reimburse physicians 6 percent of the acquisition cost of drugs for administration. Commercial payers, which often base their reimbursement policies off Medicare, quickly followed suit. The new policy created a perverse incentive in which physicians were paid more for using more expensive drugs even when lower cost equally effective alternatives were available. It also incentivized drug manufacturers to significantly increase prices. As a result, many physician-administered drugs have seen massive price increases since 2004, with many oncology drugs well in excess of $100,000 per regimen. The state should require state-regulated insurance plans to completely delink the reimbursement for physician-administered drugs with the costs of the drugs administered in order to eliminate such perverse incentives.

“This plan emphasizes transparency, accountability and common-sense health care policy that puts quality and wellness for everyone above the corporate profits of big Pharma,” Lembo said in recommending the five-part plan.

Over the past several years, Lembo has been working with state leaders and Connecticut’s congressional delegation to investigate flaws in the pharmaceutical market and implement policies to address the problem.   Last year, he co-hosted a forum at the State Capitol with the Connecticut State Medical Society (CSMS) that brought together physicians, pharmaceutical companies, academicians, patient advocates and other industry experts to address the skyrocketing cost of medications.

Lembo also serves on a working group of the NASHP (National Academy for State Health Policy), which recently issued a report recommending proposed state action, some of which is reflected in Lembo’s legislative proposal.  The Office of the Healthcare Advocate, which Lembo led for six years a decade ago, is an independent agency that helps consumers when they have disputes with their health insurance company. They also educate people about their health care rights and serve as a watchdog over Connecticut’s healthcare marketplace.