Western Connecticut Comprehensive Economic Development Strategy

Home , Greater Danbury, Housatonic Valley, Western Connecticut

December 12, 2013

Western Connecticut Economic Development Alliance Housatonic Valley Council of Elected Officials Greater Danbury Chamber of Commerce Western Connecticut CEDS and Action Agenda Page i

Western Connecticut Comprehensive Economic Development Strategy

PROJECT TEAM With the assistance of many other individuals and organizations from the Western Connecticut region, the primary project team responsible for the preparation of this Comprehensive Economic Development Strategy (CEDS) and Action Agenda included:

Connecticut Economic Resource Center

Garnet Consulting Services, Inc.

Greater Danbury Chamber of Commerce

Housatonic Valley Council of Elected Officials

Western Connecticut Economic Development Alliance

ACKNOWLEDGEMENTS The Western Connecticut Economic Development Alliance would like to thank the following organizations for financially supporting the development of this Comprehensive Economic Development Strategy (CEDS) and Action Agenda:

Commercial Brokers Alliance of Western Connecticut Cramer & Anderson Danbury Fair, Macerich Property Fairfield County Bank Housatonic Valley Council of Elected Officials MannKind Corporation Newtown Savings Bank Reynolds & Rowella Savings Bank of Danbury Union Savings Bank U.S. Economic Development Administration Western Connecticut Health Network

Preparation of this CEDS and Action Agenda would not have been possible without the extensive participation of numerous volunteers, partner organizations, and elected leadership from the region’s ten communities throughout the entire CEDS development process.

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Western Connecticut Comprehensive Economic Development Strategy

Table of Contents

Executive Summary ...... 1 Introduction ...... 11 Project Management and Public Participation Process ...... 17 CEDS Committee Composition and Participation ...... 17 Business Survey/Questionnaire ...... 18 Focus Groups ...... 19 Community and Private Sector Participation ...... 20 Data Input from CERC ...... 20 Postcards from the Future- Vision Statement Exercise ...... 20 Project Website ...... 20 Project Solicitation and Prioritization ...... 20 Final Decision Making Meetings ...... 20 Summary List of Meetings Devoted to Creation of this CEDS ...... 21 Regional Analysis ...... 23 Data Profile – Introduction ...... 23 Demographic Analysis ...... 25 Demographic Analysis Key Findings ...... 25 Demographic Analysis Details ...... 26 Population ...... 26 Median Age ...... 28 Age Distributions ...... 31 Population by Race ...... 34 Population by Ethnicity ...... 36 Migration ...... 39 Household Income ...... 42 Poverty ...... 48

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Educational Attainment ...... 51 Special Populations ...... 53 Housing and Real Estate ...... 56 Demographic Summary of Key Findings ...... 59 Fiscal Analysis ...... 60 Fiscal Analysis Key Findings ...... 60 Fiscal Analysis Details ...... 60 Assessed Property Value...... 60 Total Fund Balance ...... 64 Revenues from the General Fund ...... 66 Long Term Bonded Debt ...... 68 Distribution of Bond Ratings ...... 71 Economic Analysis ...... 72 Economic Analysis Key Findings ...... 72 General Economic Profile ...... 73 Industry Segmentation ...... 79 Industry Concentrations by Location Quotients ...... 80 Employment by Industry: Ten Town WCEDA Region ...... 82 Employment by Industry: Four County WCEDA Commuter Shed ...... 84 Net Employment Growth 2008-2012: Ten Town WCEDA Region ...... 85 Net Employment Growth 2008-2012: Four County WCEDA Commuter Shed ...... 86 Net Employment Growth 2012-2016: Ten Town WCEDA Region ...... 88 Net Employment Growth, 2012-2016: Four County WCEDA Commuter Shed ...... 89 Occupational Analysis ...... 90 DECD and WCEDA Region Cluster Analysis ...... 96 Self-Employment Data ...... 97 Economic Analysis Summary of Key Findings ...... 98 Occupational Analysis Summary of Key Findings ...... 98 Cluster Synergies ...... 99 Importance of Clusters ...... 99 Cluster Synergies Key Findings ...... 99 Industry Segmentation ...... 101

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U.S. Cluster Mapping Project ...... 101 Overview of the Clusters in the Bridgeport-Norwalk-Stamford MSA ...... 103 Clusters Ranking in Top 15 in Nation ...... 106 Aerospace Vehicles and Defense Cluster ...... 106 Jewelry and Precious Metals Products Subcluster ...... 110 Financial Services ...... 112 Business Services ...... 113 Clusters with High 2010 Employment ...... 114 Distribution Services& Transportation and Logistics ...... 114 Additional Cluster Strengths: Manufacturing ...... 115 Food Manufacturing (Processed Food) ...... 116 Clusters with Potential Synergy with other Regions ...... 117 Publishing and Printing: Publishing Subcluster ...... 117 Entertainment Cluster ...... 118 Hospitality and Tourism ...... 121 Cluster Synergies Summary of Findings ...... 123 Infrastructure ...... 125 Regional Transportation System Resources ...... 127 Economic Development Strengths, Weaknesses, Issues and Opportunities ...... 139 Strengths, Weaknesses, Issues and Opportunities Assessment ...... 139 Visioning and Action Planning ...... 150 Regional Vision Statement ...... 150 Regional Goals...... 150 Goal 1: Economic Development Tools and Resources ...... 150 Goal 2: Workforce ...... 150 Goal 3: Economic Expansion and Diversification ...... 150 Goal 4: Creating Great Places ...... 150 Regional Objectives/Initiatives and Action Agenda ...... 150 Regional Action Agenda ...... 152 Objective #1: Organization and Funding ...... 153 Objective #2: Regional Marketing Program ...... 158 Objective #3: Business Retention and Expansion Program ...... 161

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Objective #4: Regional Economic Development Infrastructure Plan and Improvements ..... 164 Objective #5: Future Skills Need Task Force ...... 166 Objective #6: Sector and Cluster Advisory Councils ...... 168 Objective #7: Western Connecticut Cultural Center ...... 170 Objective #8: Regional Main Street and Complete Streets Initiatives ...... 172 Regional Projects ...... 176 Prioritization Criteria...... 176 Solicitation Process ...... 176 Master List of Suggested Projects ...... 176 Vital (Priority) and Other Projects ...... 176 Implementation, Evaluation and Cooperation ...... 181 Implementing the CEDS ...... 181 Evaluation and Performance Measures ...... 182 Relationship of CEDS to other documents including consistency with the State’s economic development priorities ...... 184 Appendix A ...... 187 Exhibits ...... 187 Appendix B ...... Exhibits

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List of Figures

Figure 1: Planning Regions in Connecticut……………………………………………………………………… 15 Figure 2: WCEDA CEDS Planning Area…………………………………………………………………………….. 16 Figure 3: Western Connecticut CEDS Committee Membership and Representation………………. 17 Figure 4: Focus Group Topics and Facilitators…..……………………………………………………………….20 Figure 5: WCEDA Region Population and Population Growth, 2000-2010 ...... 27 Figure 6: WCEDA Region Population Share by Municipality ...... 27 Figure 7: Comparative Population Growths by Region ...... 28 Figure 8: Population Growth of Major Connecticut Cities ...... 28 Figure 9: Comparative Median Age by WCEDA Regional Municipalities ...... 29 Figure 10: Median Age by Major Connecticut Cities ...... 29 Figure 11: WCEDA Regional Municipalities Median Age by Race ...... 30 Figure 12: WCEDA Regional Municipalities Median Age by Ethnicity ...... 30 Figure 13: WCEDA Regional Municipalities Median Age by Foreign Born Population ...... 31 Figure 14: WCEDA Region, Connecticut, and United States Age Distribution ...... 32 Figure 15: Age Distribution by WCEDA Regional Municipalities ...... 33 Figure 16: WCEDA Region Age Distribution, 2000 to 2010 ...... 33 Figure 17: WCEDA Region and Connecticut Population by Race...... 34 Figure 18: Population by Race of Major Connecticut Cities ...... 35 Figure 19: WCEDA Region Population Growth by Race, 2000 to 2010 ...... 35 Figure 20: Hispanic/Latino Population by WCEDA Regional Municipalities ...... 36 Figure 21: Population Growth Rate by Ethnicity, 2000 to 2010 ...... 37 Figure 22: Population Growth Rate by Ethnicity in Connecticut Cities, 2000 - 2010 ...... 37 Figure 23: WCEDA Region Hispanic/Latino Population by Ethnicity ...... 38 Figure 24: WCEDA Regional Municipalities Brazilian Population ...... 39 Figure 25: WCEDA Region Foreign Born Population ...... 39 Figure 26: Foreign Born Population by Major Connecticut Cities ...... 40 Figure 27: WCEDA Region Foreign Born Population by Region of Origin and Year of Entry ...... 41 Figure 28: Recent WCEDA Regional Municipality Domestic and International Migration ...... 42 Figure 29: WCEDA Regional Municipalities Household Median Income ...... 43 Figure 30: WCEDA Regional Municipalities Household Income Distributions ...... 44 Figure 31: Foreign Born and Non-Foreign Born Earnings in Danbury (By Individual)...... 45 Figure 32: WCEDA Regional Municipalities Median Household Income by Educational Attainment (Individuals over 25 years of age) ...... 46 Figure 33: WCEDA Regional Municipalities Median Household Income by Ethnicity...... 47 Figure 34: WCEDA Regional Municipalities Median Household Income by Race ...... 47 Figure 35: WCEDA Regional Municipalities Poverty Rates (by Individual) ...... 48 Figure 36: WCEDA Regional Municipalities Poverty Rates by Age (by Individual) ...... 49 Figure 37: Poverty Rates in Major Connecticut Cities (by Individual) ...... 49 Figure 38: Poverty Rates in Major Connecticut Cities by Age (By Individual) ...... 50 Figure 39: WCEDA Regional Municipalities Poverty Rates by Ethnicity (by Individual) ...... 50 Figure 40: WCEDA Regional Municipalities Poverty Rates by Race (by Individual) ...... 51 Western Connecticut CEDS and Action Agenda Page vii

Figure 41: WCEDA Regional Municipalities Educational Attainment by Degree Completion (Individuals 25 years of age and older) ...... 52 Figure 42: Educational Attainment by Degree Completion by Major Connecticut Cities (Individuals 25 years of age and older) ...... 52 Figure 43: WCEDA Regional Municipalities Educational Attainment by Poverty Rate (by Individual) ...... 53 Figure 44: WCEDA Regional Municipalities Supplemental Nutrition Assistance Program Rates ..54 Figure 45: Number of Families in the WCEDA Region on Temporary Family Assistance, 2008 – 2010 ...... 54 Figure 46: Number of Individuals in WCEDA Regional Municipalities with Medicaid Plans, 2008 – 2010 ...... 55 Figure 47: WCEDA Regional Municipalities High School Dropout Rate, 2007-2010 ...... 55 Figure 48: Select WCEDA Regional Municipalities Single Family Home Prices ...... 56 Figure 49: WCEDA Regional Municipalities Housing Permits, 2011 & 2012 ...... 57 Figure 50: WCEDA Regional Municipalities Housing Units and Vacancy Rates ...... 57 Figure 51: WCEDA Municipality Property Tax Revenues per Student, 2010……………………….....58 Figure 52: WCEDA Region Municipality Housing Type Distribution……………………………………….59 Figure 53: Net Grand List per Capita by WCEDA Regional Municipalities, 2011 ...... 61 Figure 54: Grand List Per Capita, 2001-2011 ...... 62 Figure 55: Total Grand List Per Capita of Comparably Sized Cities, 2011 ...... 62 Figure 56: Components of Grand List in the WCEDA Region, 2010 ...... 63 Figure 57: Components of Grand List by WCEDA Regional Municipalities, 2010...... 64 Figure 58: Fund Balance Per Capita by WCEDA Regional Municipalities, 2011 ...... 65 Figure 59: Fund Balance per Capita and as a Percent of Grand List, 2001-2011 ...... 66 Figure 60: Revenue Per Capita by WCEDA Regional Municipality, 2011 ...... 67 Figure 61: Revenue per Capita and as a Percent of Grand List, 2001-2011 ...... 67 Figure 62: Average Total Debt Per Capita by WCEDA Regional Municipalities, 2008-2011 ...... 68 Figure 63: Total Debt Per Capita of Comparably Sized, 2011 ...... 69 Figure 64: Debt per Capita and as a Percent of the Grand List, 2001-2011 ...... 69 Figure 65: Growth Rate of Debt Per Capita by WCEDA Regional Municipality, 2008-2011 ...... 70 Figure 66: Distribution of Bond Ratings in Connecticut by Municipality, 2011 ...... 71 Figure 67: WCEDA Region Industry Employment and Shares, 2011 ...... 73 Figure 68: WCEDA Region Annual Average Employment Growth, 2001-2011 ...... 74 Figure 69: WCEDA Region Unemployment Rate, 2005-2011...... 75 Figure 70: WCEDA Region Labor Force Growth, 2006-2011 ...... 75 Figure 71: WCEDA Region Annual Average Construction Employment, 2001-2011 ...... 76 Figure 72: WCEDA Region Annual Average Retail Trade Employment, 2001-2011 ...... 77 Figure 73: WCEDA Region Annual Average Manufacturing Employment, 2001-2011 ...... 77 Figure 74: WCEDA Region Annual Average Finance and Insurance Employment, 2001-2011 ...78 Figure 75: WCEDA Region Annual Average Healthcare and Social Assistance Employment, 2001- 2011 ...... 79

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Figure 76: Top Five Industries of the Ten Town and Four County WCEDA Region, 2012 ...... 80 Figure 77: Highest Location Quotient Industries in the Ten Town WCEDA Region, 2012 ...... 81 Figure 78: High Location Quotient Industries in Four County WCEDA Commuter Shed, 2012 ...82 Figure 79: Largest Employment Industries in the Ten Town WCEDA Region, 2012 ...... 83 Figure 80: Largest Employment Industries in the Four County WCEDA Commuter Shed Region, 2012 ...... 84 Figure 81: High Growth Industries in the Ten Town WCEDA Region, 2008-12 ...... 85 Figure 82: High Growth Industries in the Four County WCEDA Commuter Shed Region, 2008-12 ...... 87 Figure 83: High Growth Industries in the Ten Town WCEDA Region, 2012-16 ...... 88 Figure 84: High Growth Industries in the Four County WCEDA Commuter Shed, 2012-16 ...... 89 Figure 85: Highest Location Quotient Occupations in the Ten Town WCEDA Region, 2012...... 91 Figure 86: High Location Quotient Occupations in Four County WCEDA Commuter Shed, 2012 91 Figure 87: Largest Employment Occupations in the Ten Town WCEDA Region, 2012 ...... 92 Figure 88: Largest Employment Occupations in Four County WCEDA Commuter Shed Region, 2012 ...... 93 Figure 89: High Employment Growth Occupations in the Ten Town WCEDA Region, 2008-12 ..93 Figure 90: High Growth Occupations in the Four County WCEDA Commuter Shed Region, 2008- 12...... 94 Figure 91: High Growth Occupations in the Ten Town WCEDA Region, 2012-16 ...... 95 Figure 92: High Growth Occupations in the Four County WCEDA Commuter Shed Region, 2012- 16...... 95 Figure 93: WCEDA and Connecticut Strategic Industries… ……………………….……………………..96 Figure 94: Department of Economic and Community Development: Connecticut Strategic Industries…………………………………………………………………………………………….………………………..96 Figure 95: WCEDA and Connecticut Strategic Industries……………………………….……………………97 Figure 96: WCEDA Region Self-employment.…………..………………………………………………………. 97 Figure 97: Summary of Industry Analysis… ……………………………………………………………………100 Figure 98: Industry Segmentation ………………………………………………………………………………….101 Figure 99: BSN MSA Clusters with Highest 2010 Employment from U.S. Cluster Mapping…….103 Figure 100: Jobs Created by Cluster for the BSN MSA, 2000-2010Source: U.S. Cluster Mapping Project ...... 104 Figure 101: Wages by Traded Cluster, BSN MSA 2010 ...... 105 Figure 102: Figure 4.6: Aerospace Vehicles and Defense Cluster – Share of National Employment by MSA, 2000-2010 ...... 106 Figure 103: Aircraft Subcluster, Share of National Employment by MSA, 2000-2010 ...... 107 Figure 104: Aircraft Subcluster, Employment by MSA, 2010 ...... 108 Figure 105: Aircraft Subcluster, Jobs Created by MSA, 2000- 2010 ...... 109 Figure 106: Aircraft Subcluster Top 10 MSAs ...... 110 Figure 107: Jewelry and Precious Metals Cluster: Jewelry and Precious Metals Product Subcluster, Employment by MSA, 2010 ...... 111 Figure 108: Jewelry and Precious Metals Product Subcluster Top 10 MSAs ...... 111

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Figure 109: Financial Services Cluster, BSN MSA Employment by Subcluster, 2010 ...... 112 Figure 110: Financial Services Cluster: Securities Brokers, Dealers and Exchanges Subcluster, Employment, 2010 ...... 113 Figure 111: Business Services Cluster, BSN MSA Employment by Subcluster, 2010 ...... 113 Figure 112: Distribution Services Cluster, BSN MSA Employment by Subcluster, 2010 ...... 114 Figure 113: Transportation and Logistics Cluster, BSN MSA Employment by Subcluster, 2010 115 Figure 114: Medical Devices & Analytical Instruments Clusters (Life Sciences) ...... 115 Figure 115: Medical Devices Cluster, BSN MSA Employment by Subcluster, 2010 ...... 116 Figure 116: Analytical Instruments Cluster, BSN MSA Employment by Subcluster, 2010 ...... 116 Figure 117: Processed Food Cluster, BSN MSA Employment by Subcluster, 2010 ...... 117 Figure 118: Publishing and Printing: Publishing Subcluster, Employment by MSA, 2010 ...... 118 Figure 119: Entertainment Cluster, BSN MSA Employment by Subcluster, 2010 ...... 119 Figure 120: Entertainment Cluster: Entertainment Related Services Subcluster, Employment by MSA, 2010 ...... 120 Figure 121: Entertainment Cluster: Video Production and Distribution Subcluster, Employment by MSA, 2010 ...... 121 Figure 122: Hospitality and Tourism Cluster, Employment by Subcluster, 2010 ...... 122 Figure 123: Hospitality and Tourism Cluster, Wages by MSA, 2010 ...... 122 Figure 124: WCEDA Industry Analysis Summary Table ...... 124 Figure 125: Connecticut Broadband Maximum Download Speed………………………………………..126 Figure 126: Area Highways………………………………………………………………………………………….…127 Figure 127: Employment Concentrations……………………………………………………………………….. 128 Figure 128: Classification of Roadways……………………………………………………………………………129 Figure 129: Bus Route Expansion Plan…………………………………………………………………………….131 Figure 130: Railroad Network…………………………………………………………………………………………132 Figure 131: Access to Rail Freight…………………………………………………………………………………..133 Figure 132: Passenger Rail Service Systems…………………………………………………………………… 134 Figure 133: Proposed Expansion of Rail Service……………………………………………………………… 135 Figure 134: Transit Oriented Development Planning Areas…………………………………………….….136 Figure 135: Arial Photograph of Danbury Airport………………………………………………………………137 Figure 136: Strengths and Weakness Chart ………………………………….………………………………. 139 Figure 137: Economic Impact of Arts in Connecticut ………………………………………………………..149 Figure 138: Western Connecticut Priority Projects…………………………………………………………….177 Figure 139: Summary of Regional (Vital) Projects…………………………………………………………….178 Figure 140: Economic Performance Evaluation Metrics…………………………………………….……....183 Figure 141: Future Growth Map……………………………………….……………………………………….……185 Figure 142: Map of South Western Regional Planning Agency…………………………………….….…186

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Abbreviations Found in this Document

CEDS Comprehensive Economic Development Strategy CERC Connecticut Economic Resource Center ConnDOT Connecticut Department of Transportation DECD Connecticut Department of Economic & Community Development DEEP Connecticut Department of Energy & Environmental Protection EDA U.S. Economic Development Administration EDD Economic Development District FHWA Federal Highway Administration Garnet Garnet Consulting Services, Inc. GDCC Greater Danbury Chamber of Commerce HVCEO Housatonic Valley Council of Elected Officials LoCIP Connecticut Local Capital Improvement Program NVCC Naugatuck Valley Community College POCD Plan of Conservation and Development RPO Regional Planning Organization RRIF Railroad Rehabilitation & Improvement Financing STEAP Small Town Economic Assistance Program US DOT United States Department of Transportation WCSU Western Connecticut State University WCEDA Western Connecticut Economic Development Alliance

Western Connecticut Economic Development Alliance Comprehensive Economic Development Strategy

Western Connecticut Comprehensive Economic Development Strategy

Executive Summary

This document constitutes a Comprehensive Economic Development Strategy (CEDS) and regional Economic Development Action Agenda for the ten (10) communities in the Western Connecticut Region. Its purpose is to:

 Provide a CEDS that meets the requirements of the U.S. Economic Development Administration  Provide an economic development strategic plan and Action Agenda for the region  Provide the basis for recognition by the State of Connecticut and the U.S. Economic Development Administration as an Economic Development District

The following communities constitute the planning area for the Housatonic Valley Council of Elected Officials (HVCEO):

 Bethel  Bridgewater  Brookfield  Danbury  New Fairfield  New Milford  Newtown  Redding  Ridgefield  Sherman

Background In 2008 and 2009 area economic development staff in the Towns of New Milford and Newtown and the City of Danbury, discussed the economic development benefits that might be derived by coordinating municipal and private sector activities in support of the area’s economy.

Those conversations were expanded in 2009 to include staff at the Greater Danbury Chamber of Commerce, the Housatonic Valley Council of Elected Officials and individuals working in the area’s commercial real estate and banking sectors.

This informal group continued to grow in size to include individuals from labor, higher education, arts and culture and additional private sector interests. Representatives from other organizations, such as the Connecticut Department of Economic and Community Development and the Connecticut Light and Power Company were occasional participants. Meetings were organized to encourage free flowing discussions on a number of topics related to understanding how cooperative efforts might be organized to strengthen the area’s economy.

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One tool used by many regions across the U.S. was the creation of an EDA sponsored Comprehensive Economic Development Strategy (CEDS), a type of regional planning process that involves private, public and institutional sector interests in the creation of a 5 year blue print for a variety of actions in support of economic development.

In June of 2010, the group discussed new state legislation and state policies that gave priority for state funding of local economic development infrastructure projects to regions that have completed the development of a CEDS. After discussions with staff from the Connecticut Department of Economic and Community Development, the Housatonic Valley Council of Elected Officials in November of 2010 endorsed the preparation of a CEDS for the Housatonic Region and indicated it would provide a portion of the funding to help pay for its preparation.

HVCEO agreed that it would act as the fiduciary for CEDS funding and the Greater Danbury Chamber agreed that it would utilize its Business & Industry Foundation of Western Connecticut, a 501(c)(3) non-profit corporate entity, to help attract funding from the private sector. A member of the group volunteered to contact EDA to determine the procedure for submitting an application for CEDS grant funding. It was concluded the CEDS should be independent of HVCEO and the group should take on a name that reflected this independence. The name selected should include a “Western Connecticut” reference.

The group, now calling itself the Western Connecticut CEDS, met in April of 2011 and discussed the revised CEDS RFP and budget, the requirements to submit an application to EDA for CEDS grant funding, efforts to develop a regional marketing strategy, the idea of creating a CEDS subcommittee and efforts to raise private sector funding to support the development of the CEDS. Its membership was expanded tasked with supporting actions to obtain funding for the regional CEDS and to issue an RFP for consulting services to assist in the preparation and CEDS process. Several firms were interviewed and after a review by EDA, the consultant team of Garnet Consulting Services and the Connecticut Economic Resource Center were retained and a contract signed in October 2012.

More detailed information on the pre-CEDS process is contained in the “Introduction” section of the document.

The formal CEDS process began in November of 2012, when WCEDA met with the consultant team to develop activities for the next several months, including the composition of the CEDS Committee, data collection and the public engagement process. A schedule of CEDS activities was reviewed.

A tour of the region was given to Garnet representatives by HVCEO staff on January 31, 2013 to familiarize them with the physical attributes and constraints for development. A great deal of information would be needed from municipal officials. The informational sessions were designed to explain the purpose of developing a CEDS for the region, the reason for the request for information and to explain about the public engagement process and to answer questions. The first was held on December 12, 2012 in Danbury and the second information session was held on December 19, 2012 in New Milford.

From December of 2012 through the summer of 2013, the CEDS consultants were engaged in the preparation of the various elements of the CEDS. These included: reviewing previous

______Western Connecticut Economic Development Alliance Comprehensive Economic Development Strategy Western Connecticut CEDS and Action Agenda Page 3 reports prepared within the Housatonic Region concerning economic development; preparation of economic base and trends analysis; assessment of the area’s relative economic competitiveness; target sector and business cluster analysis; identification of municipal economic development projects; focus group discussions on advanced manufacturing, affordable housing, health care industry, retail and downtown services; and the life sciences industry; goals and objectives; and solicitation and prioritization of priority projects.

Process and Public Input [For additional information see pages 17-22]

The Western Connecticut Economic Development Alliance met EDA requirements for a majority private sector composition and participation from a broad cross-section of the community including public officials, other community leaders, labor groups, the workforce development board for the region, higher education, minorities, and others to assure diverse experience and representation The final CEDS Committee included twenty (20) individuals, eleven (11) from the private sector and was headed up by Harold Kurfehs, Vice President of a major commercial real estate company and also serves as Chairman of the Town of Brookfield Economic Development Commission.

A smaller CEDS Steering Committee/Coordinating Committee was also established to carry out work in between meetings of the full CEDS Committee and this committee was headed up by Michael Boyle who is President of a business in Bethel and also serves as the Chairman of the Town of Bethel Economic Development Commission. Members of the Steering Committee were also part of the CEDS Committee.

CEDS Public Participation & Community Engagement Process [For additional information see pages 17-22]

At the outset a Public Participation & Community Engagement Process was developed by the consultant team and the CEDS Committee. The Western Connecticut Economic Development Alliance (WCEDA) participated in public outreach meetings which included issue-based meetings, focus groups and a survey to a cross section of businesses in the Region. All of these are part of an ongoing work program by WCEDA members and the consultant team comprised of Garnet Consulting Service, Inc. and the Connecticut Economic Resource Center (CERC).

Building on the four (4) focus groups held in 2010 and in 2011, another five (5) topic-oriented focus groups would be held. All CEDS Committee members were encouraged to be part of a Focus Group, but many other individuals were asked to participate, and the process was open for any volunteers from the community. All told, 67 people participated in the Focus Group portion of this project. The Focus Group topics were selected by the CEDS Committee with topics chosen of importance to the region’s future economy. These topics were:

. Advanced Manufacturing . Affordable Housing . Health Services . Life Sciences . Retail and Downtown Services

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Business Survey [For additional information see page 18] A Business Survey/Questionnaire was developed as part of the community outreach process with the primary purpose was to help the consulting team (Garnet Consulting Services, Inc. and the Connecticut Economic Resource Center) gain a clearer understanding of the major strengths and weaknesses of the Western Connecticut Region as a place to operate a business and gain insight about the primary opportunities for economic growth. The questionnaire had been put into the SurveyMonkey format which allowed for both ease of response and tabulation of responses.

The letter was sent out by Michael Boyle, WCEDA Coordinating Committee Chairman, on July 2, 2013 with the link to SurveyMonkey (https://www.surveymonkey.com/s/WCEDACEDS) Requesting assistance from the Chambers of Commerce and the region’s economic development officials in distributing the business survey/questionnaire to the businesses in the region. Responses were initially requested by August 8, 2013, but the date was extended by one week to accommodate vacation schedules.

The survey was comprehensive with thirty-seven (37) questions asked concerning:  Business location  Primary business sector  Length of time in region  Employment count  Rating of business infrastructure factors  Strengths and weaknesses of o Market o Labor force o Transportation o Utilities and telecommunications o Sites and buildings o Business climate o Taxes o Availability of supplies, support and services o Capital availability, incentives and business assistance programs o Public Services and Facilities Strengths o Education (Quality of K-12, higher education, and vocational training programs) o Quality of life

Project Solicitation [For additional information see pages 20 and 178] The solicitation and ranking of projects from communities and organizations was a topic of several CEDS and Steering Committee Meetings. A set of evaluation criteria and scoring system was developed to use in identifying those projects that the region currently considers its top priorities. Both the criteria and scoring system were developed prior to soliciting project nominations so that there would be broad agreement on the criteria before any projects were discussed. The criteria and scoring system reflect both those of importance to EDA as well as to the region’s leadership.

The criteria were then incorporated into the “Western Connecticut CEDS Project Solicitation Form” and used for dissemination. This form also showed the scoring system so that respondents would be aware of how their submissions would be scored. This Project Solicitation

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Form, along with a “Project Solicitation Instruction Sheet” were then provided to the region’s Council of Elected Officials and each of the region’s ten (10) communities. Six weeks were allowed for submission of projects so that communities would have adequate time for any required meetings.

All final decisions for items to be included in this CEDS were made by the CEDS (Strategy) Committee.

Regional Analysis [For additional information see the section starting on page 23] An important part of the process in creating a CEDS is identifying demographic and economic trends, and highlights the implications for the region. CERC prepared this analysis including a detailed set of charts and tables analyzing the region’s demographics and major economic sectors. The major topics included in the Regional Analysis were:

 Demographic Analysis [For additional information see the section starting on page 25]  Fiscal Analysis [For additional information see the section starting on page 60]  Economic Analysis [For additional information see the section starting on page 72]  Cluster Synergies [For additional information see the section starting on page 99]

Implications of each section of the data were noted in those sections and summarized. The following provides the key findings from the data analyses including demographic, fiscal, economic, and cluster. The key findings point to a number of trends that have implications for the future of the region, and inform the action agenda:

 The Western Connecticut Region outperforms other regions on a number of economic indicators, since this region has been able to grow faster since the end of the most recent economic recession. In addition, Danbury outperforms most other large cities in Connecticut in terms of economic growth. [For additional information see the section starting on page 98]

 In general, there is adequate fiscal capacity that enables the municipalities and the region as a whole to invest in economic development activities. [For additional information see the section starting on page 60]

 Healthcare and education are widely considered to be growth sectors and are the foundations of sustainable economic development. [For additional information see Figure 99 on page 103]

 The ten-town WCEDA region has a strong competitive advantage in the manufacturing sector. Traditional forms of manufacturing have declined both in the region and across the state. There is a need to transfer the accumulated physical and human capital towards a focus on new high technology forms of manufacturing by building on existing competitive advantages. [For additional information see the section starting on page 115]

 The financial activities sector represents an emerging opportunity for the region to transfer existing accumulations of human capital from industrial activity by trying to relocate firms from these locations or create startups and new branches in the WCEDA Region because of the high proportion of skilled workers already living in the WCEDA Region. [For additional information see the section starting on page 112]

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 Industries that are strong for the region and also strong in nearby regions include the Financial & Business Services; Aircraft Engines; Entertainment; Food Manufacturing; Jewelry and Precious Metals; and Publishing and Printing. [For additional information see the section starting on page 123]

 The Hispanic/Latino community will continue to grow in this region, which requires specific strategies to meet different cultural demands. The population of the WCEDA Region has grown substantially, especially since the year 2000. The majority of the population growth originated from growth in the Hispanic or Latino community in Danbury that accounted for 93 percent of all population growth in the WCEDA Region between 2000 and 2010. [For additional information see the section starting on page 36]

 The WCEDA Region’s aging population means that fewer workers in the WCEDA Region will be available to fill labor market gaps left by the aging population, and is expected to depress consumer spending slightly due to more individuals living on fixed incomes after retirement and more individuals dependent on Medicare benefits. The distinctly older population of the region will create an elevated demand for additional health and social services. [For additional information see the section starting on page 28]

 The WCEDA region will best enhance regional cohesion by identifying those economic opportunities that will appeal to a variety of income demographics as well as strategically selecting development locations for those sectors with a more narrow appeal. [For additional information page 23]

Strengths, Weaknesses, Issues and Opportunities Assessment [For additional information see the section starting on page 139] Based on all the research conducted during the preparation of this CEDS and Action Agenda, a summary listing of Western Connecticut’s primary strengths and weaknesses as a location for business was prepared.

The strengths and opportunities help to identify attributes that support business attraction, creation, retention, expansion and transition. The weaknesses and issues help to identify community and regional attributes that may require attention in order to improve Western Connecticut’s competitiveness. Both provide a foundation for important Goals/Objectives/ Initiatives contained in the CEDS/Action Agenda.

Regional Vision Statement [See on page 150] The following vision statement was developed for the region:

In 2034, the Western Connecticut Region will be nationally known for its exceptional quality of place that attracts both businesses and people. The region’s diverse communities will offer the education, housing, workforce skills, arts and culture, and infrastructure that make Western Connecticut a global leader in attracting, creating, and expanding businesses that promote innovation and effectively respond to the economy of the future. Its communities will be fiscally sound and its town centers and neighborhoods will be business centers and magnets for population growth that provide a growing labor force and support the region’s retail and service businesses.

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Regional Goal Statements [See on page 150] The following Goals were adopted as the foundation for this CEDS and Action Agenda

Goal 1: Economic Development Tools and Resources

Assure that the Western Connecticut Region and its communities have a full-service economic development program with the necessary tools and programs to support effective economic development efforts.

Goal 2: Workforce

Assure that the existing and future businesses of the Western Connecticut region have access to the workforce skills and training programs required for profitable business operations in the global economy of the future. Assure that the Region’s workforce has access to high quality jobs and the programs and services necessary to keep their skills current.

Goal 3: Economic Expansion and Diversification

Carry out an aggressive set of business attraction, retention, expansion, creation, and transition programs and services to strengthen the Western Connecticut Region’s existing sectors and clusters and grow new ones.

Goal 4: Creating Great Places

Continue and strengthen community and regional efforts to make the Western Connecticut Region a highly desirable place to live, work, play, and run a business.

Regional Objectives/Initiatives and Action Agenda [See on page 150] This document meets EDA requirements for a Comprehensive Economic Development Strategy (CEDS) and will also as the Action Agenda to help drive the region’s economic development initiatives for the next five years.

For each Objective/Initiative, a template providing details to guide implementation was prepared and is included in the CEDS/Action Agenda. The following are the eight (8) Objectives/Initiatives chosen to maximize efforts and resources for the next five years:

Objective 1 Organization and funding – Position WCEDA or establish a new organization as the designated entity to implement the CEDS goals and objectives, with adequate structure, staffing, funding and other resources.

Objective 3 Business retention and expansion program – Develop and operate an effective business visitation, relationship building, information collection, and service provision program.

Objective 4 Regional economic development infrastructure plan and improvements – Develop and implement a regional infrastructure plan specific to supporting economic development.

______Western Connecticut Economic Development Alliance Comprehensive Economic Development Strategy Western Connecticut CEDS and Action Agenda Page 8

Objective 5 Future Skills Needs Task Force – Establish a Future Skills Needs Task Force to continually identify new skills that will be needed by the region’s employers and develop training programs or other methods to provide those skills when they are needed.

Objective 6 Sector and cluster advisory groups – Create sector/cluster advisory groups for target sectors to identify tools, programs, and policies necessary to stimulate growth in those sectors and clusters, including:  Advanced manufacturing  Value-added food manufacturing  Wellness and life sciences  Retail  Financial services  Logistics/distribution/wholesaling  Arts & culture

Objective 7 Western Connecticut Cultural Center – Create a regional multi-purpose cultural center including space for the display of art as an attraction and destination. (Consider using the Charles Ives identity in the same fashion as the Rockwell Museum in Stockbridge, MA.)

Objective 8 Regional Main Street Program – Collaborate with the Connecticut Main Street program to establish and operate a regional Main Street program to support Town and village center revitalization and vibrancy with a focus on TOD and Complete Streets initiatives.

Regional Projects [For additional information see page 178]

Seventeen (17) projects were submitted as shown below and these projects were deemed Vital (Priority) based on the evaluation criteria and scoring system previously discussed. These evaluation criteria were:

 Status of the proposed project (Ready-to-go or Planning Stage)  Clarity of the vision, scope and details of the project  Feasibility of the project within market, budgetary, regulatory or other measures  Project budget and supporting documentation (Firm, Estimated or Unknown)  Status of project funding (Already committed, Expected to be committed, or Uncommitted; percentage of non-EDA funding Significant, Moderate or Small/none)  Status of environmental reviews (Completed, In-process, Planned, Not considered yet, Not applicable)  Control of the project area (All, Some, None, Not applicable)  Status of land use approvals  Regional economic impact  Number of jobs either saved or created  Community/organizational ranking of project

______Western Connecticut Economic Development Alliance Comprehensive Economic Development Strategy Western Connecticut CEDS and Action Agenda Page 9

The Western Connecticut CEDS priority project submitted include:

Vital (Priority Projects Capital Projects Individual Community Projects  Bethel – Expansion of Clarke Business Park  Bethel – TOD Capital Improvements  Bethel – Water System Improvements  Bethel – Stony Hill Sewer Project Phase IV  Brookfield - Four Corners Revitalization Plan  Brookfield – Lower Route 202 Traffic Improvements  Brookfield – Still River Greenway  Danbury – West Side Route 6 Traffic Improvements  New Milford – Century Brass Remediation/Demolition  New Milford – Still Meadows Business Park  Newtown – Hawleyville Sewer Extension  Newtown – Fairfield Hills Campus Infrastructure  Redding TOD – Intermodal Transportation Facility  Ridgefield TOD- Capital Improvements  Ridgefield – Abatement and Demolition of Former Schlumberger Building Complex Brownfield’s Project

Multi –Community/Regional Projects  Danbury I-84 Widening Danbury Branch – Commuter Rail Improvements 

Relationship of the CEDS to Other Documents Including Consistency with the State’s Economic Development Priorities [For additional information see page 183]

The CEDS/Action Agenda was evaluated in relationship to two important state-level plans – the Connecticut Economic Strategic Plan, 2009 and The Conservation & Development Policies Plan 2013-2018 (POCD) – and found to be consistent with both. The CEDS/Action Agenda was also considered in relationship to the regional POCD and those of the municipalities in the region and found to be consistent and supportive.

______Western Connecticut Economic Development Alliance Comprehensive Economic Development Strategy Western Connecticut CEDS and Action Agenda Page 10

Implementation, Evaluation and Cooperation [For additional information see page 180]

A section is provided discussing how the implementation of this CEDS/Action Agenda will be monitored and its progress measured. A critical issue will be providing adequate funding and staffing to support implementation. This issue is summarized in the following statement:

Economic development rarely occurs for free. There are too many other communities and regions competing for a limited amount of business investment. In order to have a chance at attracting any of that investment, the Western Connecticut Region – in particular its municipalities, but also its businesses – must invest in its economic development program. The return on investment will not occur without the investment itself.

As noted in the detailed write-up of Objective #1, unless the region and its municipalities and business community commit to creating an implementation organization with adequate structure, staffing, funding and other resources, none of the work contained in this CEDS will lead to the results the region desires.

______Western Connecticut Economic Development Alliance Comprehensive Economic Development Strategy Western Connecticut CEDS and Action Agenda Page 11 Introduction

Background Information In 2008 and 2009 area economic development staff in the Towns of New Milford and Newtown discussed the economic development benefits that might be derived by coordinating municipal and private sector activities in support of the area’s economy.

In May of 2010, the group brought in a speaker to discuss how other regions of Connecticut had utilized the resources of the U.S. Economic Development Administration (EDA) to become more focused and organized in developing regional approaches to facilitating economic growth. One tool used by many regions across the U.S. was the creation of an EDA sponsored Comprehensive Economic Development Strategy (CEDS), a type of regional planning process that involves private, public and institutional sector interests in the creation of a 5 year blue print for a variety of actions in support of economic development.

In October of 2010, Mr. Peter Simmons from the CT Department of Economic and Community Development met with the group and discussed the State’s desire for communities to work together as a region and identify economic development priorities for factors such as remediation of brownfield properties, “responsible growth initiatives” and targeted areas for municipal and state infrastructure development. The group concluded that it should pursue the creation of a CEDS to better position the region to participate in the State’s future allocation of funds for infrastructure projects, such as highway improvements and the expansion of sewer and water service.

The creation of a CEDS would be a costly undertaking requiring significant financial support from a variety of public and private sector resources. In November of 2010 the Housatonic Valley Council of Elected Officials endorsed the preparation of a CEDS for the Housatonic Region and indicated it would provide a portion of the funding to help pay for its preparation.

The group met in December of 2010 and agreed to move forward with the preparation of a Scope of Work for the CEDS and to begin discussions with EDA and the CT DECD to determine the prospects of financial support. There were also discussions concerning the expansion of the group’s membership to become more representative of regional economic development interests.

______Western Connecticut Economic Development Alliance Comprehensive Economic Development Strategy Western Connecticut CEDS and Action Agenda Page 12 At the December 2010 meeting, the group discussed the results of a “focus group” session it sponsored with business leaders to gain their perspective of the regions strengths and weaknesses as a place to do business.

In January of 2011, the group reviewed the first draft of a scope of work for the CEDS. It was estimated that a CEDS would take about 15 months to complete, once funding was in place. A budget estimate of $110,000 was discussed for the CEDS. HVCEO agreed that it would act as the fiduciary for CEDS funding and the Greater Danbury Chamber agreed that it would utilize its 501(c)(3) non-profit corporate entity to help attract funding from the private sector. A member of the group volunteered to contact EDA to determine the procedure for submitting an application for CEDS grant funding. It was concluded the CEDS should be independent of HVCEO and the group should take on a name that reflected this independence. The name selected should include a “Western Connecticut” reference.

The group met in March of 2011 and discussed a variety of topics, including the draft CEDS Request For Proposal (RFP) and budget, EDA’s indication that it might fund up to 50% of the cost of the CEDS, HVCEO’s commitment to manage the EDA application process, the Chamber’s willingness to help with private sector fundraising; and the desirability to conduct another focus group session concerning area “entrepreneurs.”

The Western CT CEDS group met in May of 2011 and reviewed efforts to expand the membership, which now numbered about 15. Progress was made on attracting financial support for the CEDS work from the region’s private sector.

The Western CT CEDS group met in June of 2011 and discussed the revised RFP for the CEDS. The RFP will become part of the application to EDA for CEDS grant funding. It was determined that the EDA grant application cannot be filed until commitments have been received from all sources of local funding. The CEDS group continues to expand its membership. New focus group initiatives were identified and representatives from two of the area’s municipal economic development commissions discussed the results of business surveys conducted by the commissions.

The Western CT CEDS group met in August of 2011. New members to the group were introduced and tasked with supporting actions. Successes in private sector fundraising were reviewed. A request will be made to CT DECD for a letter of support for the region to prepare a CEDS. This will become an important element in the grant application to EDA for CEDS support funding. Several economic development projects from the area were identified for submission to the annual “Celebrate Connecticut” awards conference.

The Western CT CEDS group met in October of 2011. The group reviewed a letter of support from CT DECD to EDA for the preparation of a CEDS for the Housatonic Region. This was seen as the State’s endorsement of the region’s moving forward with the preparation of the CEDS. Unfortunately, budget cuts affecting CT DECD will not make it possible for the agency to financially support the preparation of the CEDS. The group decided to maintain the budget for the

______Western Connecticut Economic Development Alliance Comprehensive Economic Development Strategy Western Connecticut CEDS and Action Agenda Page 13 CEDS at $120,000, and will redouble private sector funding efforts. The Chairman of the group will update the HVCEO Board of its progress to develop a CEDS at the November.

The Western CT CEDS group met in January of 2012. The application to EDA for CEDS grant funding was filed on December 16, 2011. Due to federal reorganizations and budget cuts, it is anticipated that it will take EDA three to six months to act on the application. HVCEO staff presented an overview of regional economic factors. A CEDS related work flow/schedule was reviewed and assignments were made for fundraising, CEDS application and consultant selection activities, marketing and public relations, and benchmarking.

The Western CT CEDS group met in February of 2012 and discussed the process to select consultants to assist in the preparation of the CEDS. The request for proposals was advertised in early February, with a response deadline in mid-March. No news from EDA on the grant application. Fund raising efforts continue. New members of the group were introduced. Progress with publicity of the CEDS effort was discussed. A labor representative discussed the need for workforce training so that area labor force skills match the needs of area businesses. A subcommittee was established for the process of reviewing responses to the RFP, and interviewing and making selection recommendations for CEDS consultants.

The group took on the new name of Western CT Economic Development Alliance (WCEDA) and met in April of 2012. The CEDS Subcommittee described its review of responses to the CEDS RFP and its recommendation that two consultant teams be invited for interviews. A draft Scope of Work for the CEDS project was distributed to the WCEDA for review. This document will be provided to the prospective consultant teams, who will be asked to describe how they will respond to these work requests. EDA has completed their review of the grant application for CEDS funding assistance and approval is expected.

A comprehensive media contact list has been completed and several articles on regional economic development needs and initiatives have appeared in the local press. Progress on fund raising efforts was described.

The Western CT Economic Development Alliance (WCEDA) group met in June of 2012. EDA has given the “unofficial” notice that the grant application for $60,000 for the CEDS has been approved. Official notice from Washington of the grant award was expected to be received soon. The revised scope of work for the CEDS was reviewed and would be distributed to the prospective consultants once official notice of the grant award has been received from EDA. Private sector fund raising progress was reviewed.

WCEDA met in September of 2012. The CEDS subcommittee provided an update. The formal EDA CEDS grant approval was received in August. This was followed by interviews with prospective CEDS consultant team of Garnett Consulting Services and the Connecticut Economic Resource Center. The recommendation to retain the consultant team was forwarded to EDA for a required review and subsequently recommended to WCEDA for selection. WCEDA voted to accept this recommendation and to proceed to contract negotiations.

Formal CEDS Process Begins WCEDA met in October of 2012. The contract with the CEDS consultant was signed in October, immediately following the review/approval of the contract by EDA. The October meeting of the WCEDA served as the kickoff meeting for the CEDS work, with the lead consultant Garnett

______Western Connecticut Economic Development Alliance Comprehensive Economic Development Strategy Western Connecticut CEDS and Action Agenda Page 14 Consulting Services taking the group through the expected process. The CEDS subcommittee was assigned the responsibility of managing the CEDS development process.

WCEDA met in November of 2012, with Garnet Consulting Services, Inc. focusing on CEDS related activities for the next several months, including the composition of the CEDS Committee, data collection and the public engagement process. A schedule of CEDS activities was reviewed. Much success has been made in engaging the local press in covering the development of the CEDS.

From December of 2012 through the summer of 2013, the CEDS consultants were engaged in the preparation of the various elements of the CEDS. These included: reviewing previous reports prepared within the Housatonic Region concerning economic development; preparation of economic base and trends analysis; assessment of the area’s relative economic competitiveness; target sector and business cluster analysis; identification of municipal economic development projects; focus group discussions on advanced manufacturing, affordable housing, health care industry, retail and downtown services; and the life sciences industry; goals and objectives; and solicitation and prioritization of priority projects.

The Housatonic Valley Council of Elected Officials (HVCEO), formed in 1968, is a coordinating body for chief elected officials maintained by ten municipalities in western Connecticut. Its mission is to make the Greater Danbury Area a better place to live, do business and visit through coordinated planning and cooperative approaches.

Figure 1 presents a map of the planning regions in Connecticut as they exist at present and Figure 2 shows the Housatonic Valley Planning Region which is the CEDS Project Area and includes these ten (10) communities:

 Bethel  Bridgewater  Brookfield  Danbury  New Fairfield  New Milford  Newtown  Redding  Ridgefield  Sherman

______Western Connecticut Economic Development Alliance Comprehensive Economic Development Strategy Western Connecticut CEDS and Action Agenda Page 15 Figure 1: Planning Regions in Connecticut

Source: Connecticut Office of Policy and Management

______Western Connecticut Economic Development Alliance Comprehensive Economic Development Strategy Western Connecticut CEDS and Action Agenda Page 16

Figure2: Western Connecticut Economic Development Alliance CEDS Program Area

Source: Housatonic Valley Council of Elected Officials ______Western Connecticut Economic Development Alliance Comprehensive Economic Development Strategy Western Connecticut CEDS and Action Agenda Page 17

Project Management and Public Participation Process

CEDS Committee Composition and Participation A broadly representative CEDS (Strategy) Committee was established, using the members of the Western Connecticut Economic Development Alliance (WCEDA) and this membership meets the EDA requirements for a majority private sector composition and participation from a broad cross- section of the community including public officials, other community leaders, labor groups and the workforce development board for the region, higher education, minorities, and others to assure diverse experience and representation. The final CEDS Committee included twenty (20) individuals, eleven (11) from the private sector.

A smaller CEDS Steering Committee was also established to carry out work in between meetings of the full CEDS Committee. Members of the Steering Committee were also part of the CEDS Committee. Figure 3 provides a listing of the CEDS Committee membership and their primary representation categories.

Figure 3: Western Connecticut CEDS Committee Membership and Representation

Name Affiliation Representation Category Title Michael Boyle, President Base Technologies, Inc. Private sector – Services

Chairman Bethel Economic Development Public sector–Economic Commission Development Stephen A. Bull, President Greater Danbury Chamber of Private sector – Chamber Commerce Northwest Regional Workforce Workforce Investment Board Investment Board Gerald Casiello, Chairman Redding Zoning Commission& Public sector– local Redding Zoning government SCORE Commission Industry & services

Jonathan Chew Housatonic Valley Council of Public sector – Government Director Elected Officials Janice Chrzescijanek Town of Bethel Public sector – Economic Director of Economic Development Development Jane Didona, Owner Didona Associates, Landscape Private sector – Services Architects Woman owned business Luigi Fulinello, Economic Town of New Milford Non-profit sector – local Development Supervisor government – Economic Development Nicholas Gazetos Savings Bank of Danbury Private sector – Finance EVP/Chief Lending Officer David Hannon Housatonic Valley Council of Public sector – Government Deputy Director Elected Officials Sally F. Herlihy Western Connecticut Health Private sector – Health Vice President, Planning Network ______Western Connecticut Economic Development Alliance Comprehensive Economic Development Strategy Western Connecticut CEDS and Action Agenda Page 18

Name Affiliation Representation Category Title Harold Kurfehs, Vice Pres. Coldwell Banker Commercial Private sector – Real Estate & Development WCEDA Chairman Town of Brookfield Public sector – Economic Development Maura Ruby Danbury Fair Mall Private sector – Retail Senior Property Manager Jeffrey Ryer, President & Ryer Associates, Comm. R.E. Private sector – CEO of Ryer Associates Real Estate & Development Commercial Real Estate, Inc. Lisa Scails Cultural Alliance of Western Non-profit sector – Arts Executive Director Connecticut Minority William Shannon , Local Labor Union 107 Labor President, Bethel Local 107 Labor Union Roy Steiner , President Berkshire Corporate Park Private sector – Industry Berkshire Industrial Corporation Paul Steinmetz, ,Director, Western Connecticut State Public sector – Education University Relations University Office, Western CT State University Elizabeth Stocker, Director Town of Newtown Local Government – Economic Economic & Community Development Development Joy Strand, Former Town of Ridgefield Local Government – Economic Chairman, Ridgefield Development Economic Development Commission Bruce R. Tuomala, City of Danbury Local Government – Economic Director of Economic Development Development Workforce Investment Board

One person resigned due to health reasons and another became active in the process when hired by one of the communities. Both the contributions of these two members as well as those of the others created a good working relationship for the process and will be important in implementing the recommendations. Business Survey/Questionnaire A Business Survey/Questionnaire was developed as part of the community outreach process with the primary purpose was to help the consulting team (Garnet Consulting Services, Inc. and the Connecticut Economic Resource Center) gain a clearer understanding of the major strengths and weaknesses of the Western Connecticut Region as a place to operate a business and gain insight about the primary opportunities for economic growth. The questionnaire had been put into the SurveyMonkey format which allowed for both ease of response and tabulation of responses.

The letter was sent out by Michael Boyle, WCEDA Coordinating Committee Chairman, on July 2, 2013 with the link to SurveyMonkey (https://www.surveymonkey.com/s/WCEDACEDS) requesting ______Western Connecticut Economic Development Alliance Comprehensive Economic Development Strategy Western Connecticut CEDS and Action Agenda Page 19 assistance from the Chambers of Commerce and the region’s economic development officials in distributing the business survey/questionnaire to the businesses in the region. Responses were initially requested by August 8, 2013, but the date was extended by one week to accommodate vacation schedules.

Key observations included:  All ten (10) communities were represented both with business locations and with survey participants.  141 people participated  63.8% of the businesses have been present in the WCEDA Region for more than 10 years.  22.5% of the businesses have been present in the CEDA Region between 3-9 years  13.8% of the businesses are new to the region less than 3 years.  Respondents have a range of employees from fewer than 5 to more than 100.  There was a mix of responses about business infrastructure factors.  The majority of respondents feel the availability of sites and buildings for user occupancy is good. (The availability of buildings is a strength in the region as well as the lower rental rates as compared to other locations in Fairfield County.  The ease of the permit process at both the state and local levels were given low marks and clearly the majority noted this. Focus Groups A major portion of the public input process was establishment of five (5) topic-oriented Focus Groups. All CEDS Committee members were encouraged to be part of a Focus Group, but many other individuals were asked to participate, and the process was open for any volunteers from the community. All told, 67 people participated in the Focus Group portion of this project. The Focus Group topics were selected by the CEDS Committee as being the topics of most importance to the region’s future economy. These topics were: ______Western Connecticut Economic Development Alliance Comprehensive Economic Development Strategy Western Connecticut CEDS and Action Agenda Page 20

Figure 4: Focus Group Topics Leaders/Facilitators

Focus Group Date Facilitator(s) Advanced Manufacturing June 18, 2013 Joseph DeFao Affordable Housing June 20, 2013 Mark Nolan Health Services August 20, 2013 Robert Langley Life Sciences October 18, 2013 Elizabeth Stocker Retail and Downtown Services June 18, 2013 Andrea Gartner & Maura Ruby

Community and Private Sector Participation In accordance with EDA guidelines, the CEDS Committee and Focus Group process was specifically constructed and managed to be broadly representative and inclusive of the Western Connecticut Community and in particular, its substantial and important private sector. This process not only took advantage of existing public – private partnerships, but was intended to facilitate the development of additional partnerships for future implementation of the CEDS. Data Input from CERC In May 2013, the demographic composition and primary economic conditions and trends in the region were presented by CERC. This document was subsequently analyzed and a set of “Implications” for the region developed from the data. This draft document was submitted to the CEDS Steering/Coordinating Committee for review and comment, and modified accordingly. This analysis, which is key to understanding the Western Connecticut Region, was then submitted to the CEDS Committee and is presented in the Regional Analysis section of this CEDS and. Postcards from the Future- Vision Statement Exercise A “Postcards from the Future” exercise to describe the area twenty years from now was used to begin the visioning process began on March 4, 2013 at the meeting of the Coordinating Committee. The consultant team took these words and ideas and used them as a framework for the Vision Statement supplemented by those from WCEDA members from the March 20, 2013 meeting. At subsequent meetings, it was then tweaked into a Final Vision Statement. Project Website Throughout the course of the project, the Western Connecticut Economic Development Alliance through the Housatonic Valley Council of Elected Officials maintained a website dedicated to the project (http://www.hvceo.org). This website, available to the public, provided minutes of all meetings associated with preparation of the CEDS and draft and final versions of all relevant documents. Project Solicitation and Prioritization The solicitation and ranking of projects from communities and organizations was also a topic of several CEDS and Steering Committee Meetings. More detail on that part of the process is provided in the section of this document on Regional Projects. Final Decision Making Meetings At its meeting on May 29, 2013, the CEDS Committee adopted the final Vision and Goal Statements presented later in this document. At the November 5, 2013 meeting of the Steering/Coordinating Committee, the CEDS project submissions were reviewed and prioritized for recommendation to the CEDS Committee. Other work included reviewing the strengths and weaknesses and the CERC data profile. ______Western Connecticut Economic Development Alliance Comprehensive Economic Development Strategy Western Connecticut CEDS and Action Agenda Page 21 At the October 24, 2013 meeting of the CEDS Committee, the draft CEDS Economic Development Strategy and Action Agenda including the regional projects and suggested edits was approved for distribution for public comment. The thirty (30) day public review comment period commenced on November 8, 2013. The draft CEDS was made available online. The CEDS Committee met on November 13, 2013 and voted unanimously to authorize the submission of the CEDS document to EDA with the edits recommended from this meeting and from comments received during the public review process pending authorization from HVCEO staff.

The Housatonic Valley Council of Elected Officials met on November 21, 2013 and endorsed the document for submission to the Economic Development Administration.

Summary List of Meetings Devoted to Creation of this CEDS

The following are meetings that took place in preparation for the CEDS process and the minutes are posted on the HVCEO website www.hvceo.org and will not be included as Exhibits in this document.

 March 24, 2010  May 5, 2010  June 16, 2010  October 13, 2010  December 1, 2010

 January 19, 2011  March 16, 2011  April 27, 2011  May 18, 2011  June 15, 2011  July 20, 2011  August 17, 2011  October 19, 2011  November 16, 2011

 January 18, 2012  February 15, 2012  April 25, 2012  June 19, 2012  September 12, 2012

The following are meetings were held as part of the CEDS process and documentation is included in Appendix B:

 October 17, 2012  November 19, 2012  March 4, 2013  March 20, 2013  April 17, 2013  May 29, 2013

______Western Connecticut Economic Development Alliance Comprehensive Economic Development Strategy Western Connecticut CEDS and Action Agenda Page 22  August 21, 2013  October 24, 2013  November 13, 2013

Informational Meetings  December 12, 2012 in Danbury  December 19, 2012 in New Milford

Focus Groups The first four focus groups were conducted by staff at Northeast Utilities prior to the formal CEDS process and provided a good foundation. These minutes/meeting notes are posted on the HVCEO website and include:

 November 29, 2010 Business Leaders  April 11, 2011 Business Leaders  November 15, 2011 Ages 20-35  November 15, 2011 Creative Economy

The next five (5) focus groups were part of the public outreach process in developing the CEDS and the meeting notes are included in the Appendix:

 June 18, 2013 Retail & Downtown Services  June 18, 2013 Advanced Manufacturing  June 20, 2013 Affordable Housing  August 20, 2013 Health Services  October 18, 2013 Life Sciences

Meetings of the Housatonic Valley Council of Elected Officials Related to the CEDS

 January 17, 2013  March 21, 2013  October 17, 2013  November 21, 2013

______Western Connecticut Economic Development Alliance Comprehensive Economic Development Strategy Western Connecticut CEDS and Action Agenda Page 23 Regional Analysis

Data Profile – Introduction The Western Connecticut region is comprised of the following ten (10) communities located in two counties:

Communities County Bethel Fairfield Bridgewater Litchfield Brookfield Fairfield Danbury Fairfield New Fairfield Fairfield New Milford Litchfield Newtown Fairfield Redding Fairfield Ridgefield Fairfield Sherman Fairfield

Although technically counties no longer exist in Connecticut because they were abolished in 1955, data and reports are often created for these geographic areas and especially in other states which have them.

This portion of the CEDS provides an economic and demographic profile of the region and its communities.

A review of data relating to a local or regional economy is usually an early step in the consideration and evaluation of a location by companies looking for a new location or comparing their current location with alternatives. A detailed Economic Base Analysis is also a required element of a Comprehensive Economic Development Strategy (CEDS).

The International Economic Development Council (IEDC) maintains a recommended standardized data base (referred to as the Site Selection Data Standards) providing a set of 25 spreadsheets that captures the data points most frequently sought by companies and site location consultants; this set of spreadsheets and an accompanying article about the importance of the Site Selection Data Standards can be found at http://www.iedconline.org/?p=data_standards.

The Connecticut Economic Resource Center (CERC) is the primary agency for collecting and presenting available data for Connecticut and Western Massachusetts. It is important to note the word “available”; while the IEDC Data Standards present an ideal world, not all data is available for every location, particularly smaller communities such as many of those in the Northwest Connecticut region.

This document provides a data profile of the Western Connecticut Region, and of the region’s ten (10) communities where available, prepared by CERC in 2013 based on the best available information at that time, with some additional information gathered from other sources by Garnet Consulting Services, Inc.

______Western Connecticut Economic Development Alliance Comprehensive Economic Development Strategy Western Connecticut CEDS and Action Agenda Page 24 Glossary

Assessed Property Value: the dollar value assigned to a property for purposes of measuring applicable taxes. Assessed valuation is used to determine the value of a residence for tax purposes and takes comparable home sales and inspections into consideration.

Debt Obligation: loans, bonds, leases, and other debt instruments owed by an entity (company, government, individuals). Debt obligations are classified as a liability for balance sheet accounting.

Designated Fund Balance: the portion of the fund balance that is intended for use by the entity.

Equalized Net Grand List: the estimate of the market value of all taxable property in a municipality less exemptions.

General Fund: in public sector accounting, the financial fund of a government, government agency, or nonprofit entity. The fund typically consists of all assets and liabilities of the entity that are not assigned to a special purpose fund. It provides the resources necessary to sustain the operational activities and hence finances administrative and operating expenses.

Grand List: the aggregate valuation of taxable property within a given municipality or geographic area.

Hispanic/Latino: “Hispanic or Latino” refers to a person of Cuban, Mexican, Puerto Rican, South or Central American, or other Spanish culture or origin regardless of race.

Location Quotient: is a technique used to compare the industrial or occupational composition of two distinct geographic areas. A location quotient is calculated by taking the proportion of employment in a given industry or occupation for the geographic area of interest and dividing it by the proportion for the same industry in a base geography (e.g., another region, the state or nation).

Reserved Fund Balance: an isolated portion of a fund balance that is not available for appropriation to the next budget by the entity.

Shift Share Analysis: An analysis technique that decomposes regional employment changes into three components: a national growth effect, an industry mix effect, and a regional share effect.

Total Debt: includes all liabilities associated with an entity’s activities. Items included under the long- term debt category include bonds and notes for which the entity has pledged its full faith and credit, capital lease obligations, and the portion of regional school district debt, if any, for which the entity is responsible.

Total Fund Balance: the excess of fund assets and deferred outflow of resources over fund liabilities and deferred inflow of resources.

Undesignated Fund Balance: available expendable financial resources in a fund that are not subject to tentative management plan.

______Western Connecticut Economic Development Alliance Comprehensive Economic Development Strategy Western Connecticut CEDS and Action Agenda Page 25 Demographic Analysis

Demographic Analysis Key Findings The overall rate of population growth in the WCEDA Region has grown more than comparative geographies such as the state of Connecticut, and Fairfield and Litchfield Counties since the year 2000. The majority of the population growth in the WCEDA Region originated from growth in the Hispanic/Latino community in Danbury, which notably accounted for 93 percent of all population growth in the WCEDA Region between 2000 and 2010. The substantial population growth of this community, which started in the mid-1990s, occurred mainly because of relative economic strengths in the WCEDA Region in comparison to countries of migrant origin in Latin America.

 This finding suggests that the Hispanic/ Latino community will continue to grow because of continuing relatively stable economic conditions in the greater Danbury economic market.

 Economic and cultural differences between the Hispanic/Latino community and the non- Hispanic/Latino community imply that the Hispanic/Latino will demand different products and services not necessarily demanded by the non-Hispanic community.

 The Hispanic/Latino population growth also implies that there will be continued cultural barriers such as language differences that need to be overcome and understood to ensure regional integration. Transforming these differences into strengths by education and cultural enrichment will bridge gaps and capitalize on the cultural strengths of the region.

The WCEDA Region has a relatively older population, especially in the WCEDA suburban municipalities. The percent of persons in the WCEDA Region, especially in the 45 to 54 year old age cohort, is relatively large in comparison to Connecticut and the United States.

 The WCEDA Region’s aging population means that there will be changes going forward especially in regard to workforce dynamics, consumer spending trends, and government services. Predicted changes include fewer workers in the WCEDA Region to fill labor market gaps left by the ageing population, softer consumer spending trends due to more individuals living on fixed incomes after retirement, and more individuals dependent on Medicare benefits, and more demands for an array of health and social services. These identified implications will be discussed in more detail in the demographics analysis.

Household income is highly segmented by WCEDA municipality. Median household income in Danbury is significantly lower than any other municipalities in the WCEDA Region. Conversely, some municipalities, such as Ridgefield and Redding, have significantly higher median household incomes than other municipalities in the WCEDA Region.

 This implies that cross municipality economic integration will be a challenge. For example, a person from Ridgefield would be less likely to venture to Danbury for a product or service, when they are more likely to find that product or service in their own municipality that caters to their own income demographic. With that said, however, it is important to discern economic opportunities that appeal to all income demographics to enhance WCEDA regional economic cohesion.

______Western Connecticut Economic Development Alliance Comprehensive Economic Development Strategy Western Connecticut CEDS and Action Agenda Page 26 Educational attainment levels vary greatly by WCEDA municipality which suggests that the WCEDA Region has an array of occupational skill sets. Danbury has the lowest level of educational attainment in the WCEDA Region, while municipalities such as Ridgefield and Redding have very high educational attainment levels.

Housing prices are recovering in the WCEDA Region which suggests recent marginal gains to household net worth for occupied, or owned, units. Demand for housing is predicted to grow, especially in Danbury as its population grows. Demographic Analysis Details The WCEDA Region demographic analysis section of this report presents key findings of relevant demographic indicators at the municipal level using the latest data to provide a snapshot of information, or showing a trend of data over time. The data source for the trend analysis is the Decennial 2000 and 2010 Census form. The American Community Survey Five Year (2007-2011) is the data source for the snapshot of information.

Furthermore, where applicable, WCEDA Region data is compared to the following identified regions: Connecticut, Fairfield County, and Litchfield County. These regions were chosen for comparison because of their close geographical proximity to the WCEDA Region. It is important to note that Dutchess and Putnam Counties in New York State were analyzed in the economic data section of this report, however for the demographics data they were not included primarily because of the need to concentrate on the WCEDA Region population changes. In select cases, the WCEDA Region will also be compared to United States data.

Further, the City of Danbury will be analyzed because it is the center of WCEDA regional economic activity and the City exhibits anomalies that, at times, necessitate further examination. The cities that Danbury will be compared to in this analysis are Bridgeport, Hartford, New Haven, Waterbury, Stamford, and Norwalk. These cities were chosen because either they have similar characteristics to Danbury, such as population, or they are within Fairfield County where Danbury is located. Population The WCEDA Region consists of two municipalities located in Litchfield County, and eight municipalities located in Fairfield County (Figure 5). In 2010, total population of the WCEDA Region was 224,872, with Danbury comprising the largest portion of the population, 36 percent (Figure 6).

______Western Connecticut Economic Development Alliance Comprehensive Economic Development Strategy Western Connecticut CEDS and Action Agenda Page 27 Figure 5: WCEDA Region Population and Population Growth, 2000-2010

Absolute Percent Municipalities/Region 2000 2010 Change Change Bethel * 18,067 18,600 533 3% Bridgewater^ 1,824 1,725 (99) -5% Brookfield* 15,664 16,470 806 5% Danbury* 74,848 81,056 6,208 8% New Fairfield* 13,953 13,871 (82) -1% New Milford^ 27,121 28,145 1,024 4% Newtown* 25,031 27,605 2,574 10% Redding* 8,270 9,174 904 11% Ridgefield* 23,643 24,652 1,009 4% Sherman* 3,827 3,574 (253) -7% WCEDA Region 212,248 224,872 12,624 6%

Source: U.S. Decennial Census, 2000 and 20101

The WCEDA Region grew by six percent, or by 12,624 persons, from 2000 to 2010. Approximately 50 percent of the population growth in the WCEDA region occurred in the city of Danbury. Danbury’s population increased by 6,208 persons, or by eight percent, between 2000 and 2010. Other municipalities that grew significantly during this time period included Newtown (10 percent) and Redding (11 percent), but their populations are much smaller than that of Danbury. Three municipalities (Bridgewater, New Fairfield, and Sherman) lost population (a total of 434 residents) between 2000 and 2010. All three municipalities have very small populations relative to the other municipalities in the WCEDA Region.

Figure 6: WCEDA Region Population Share by Municipality

2000 Population Share of WCEDA 2010 Population Share Municipalities/Region Region of WCEDA Region Bethel 9% 8% Bridgewater 1% 1% Brookfield 7% 7% Danbury 35% 36% New Fairfield 7% 6% New Milford 13% 13% Newtown 12% 12% Redding 4% 4% Ridgefield 11% 11% Sherman 2% 2% WCEDA Region 100% 100%

Source: U.S. Decennial Census 2000 and 2010

1 * Municipality is located in Fairfield County; ^ municipality is located in Litchfield County.

______Western Connecticut Economic Development Alliance Comprehensive Economic Development Strategy Western Connecticut CEDS and Action Agenda Page 28 Figure 7 shows the WCEDA Region population growth in comparison to other regions. The WCEDA Region population grew at a faster rate than Fairfield County and Litchfield County from 2000 to 2010. The WCEDA Region population also grew at a faster rate than Connecticut’s population. Figure 7: Comparative Population Growths by Region

Absolute Percent Region 2000 2010 Change Change WCEDA Region 212,248 224,872 12,624 6% Fairfield County 882,567 918,714 36,167 4% Litchfield County 182,193 189,840 7,647 4% Connecticut 3,405,565 3,577,073 171,508 5%

Source: U.S. Decennial Census, 2000 & 2010

In comparison to similar cities in Connecticut, Danbury’s rate of population growth increased the most between 2000 and 2010. As documented in Figure 8, Danbury’s percent change in population growth rate greatly exceeded that of Connecticut’s most populous cities such as New Haven and Bridgeport.

Figure 8: Population Growth of Major Connecticut Cities

Absolute Percent City 2000 2010 Change Change Danbury 74,848 80,893 6,045 8% New Haven 123,626 129,779 6,153 5% Stamford 117,083 122,643 5,560 5% Bridgeport 139,529 144,229 4,700 3% Norwalk 82,951 85,603 2,652 3% Waterbury 107,271 110,366 3,095 3% Hartford 121,578 124,775 3,197 3%

Source: U.S. Decennial Census, 2000 & 2010 Median Age Overall, most municipalities in the WCEDA Region have an older population than that of Connecticut, with the exception of the city of Danbury. Danbury has a relatively younger population with a median age of 36.4 (Figure 9). Danbury’s younger population is expected because, in general, cities tend to attract younger individuals.

It is important to note in this comparison that Connecticut is a state with a relatively older population in comparison to other states. According to the Connecticut Commission on Aging, Connecticut is the seventh ‘oldest’ state in the nation by median age. Given that most municipalities in the WCEDA Region have a higher median age than that of Connecticut, the WCEDA Region’s suburban population can be considered to have a larger concentration of relatively ‘older’ individuals.

______Western Connecticut Economic Development Alliance Comprehensive Economic Development Strategy Western Connecticut CEDS and Action Agenda Page 29 Figure 9: Comparative Median Age by WCEDA Regional Municipalities

Median Age Municipality/State (Years) Bethel 41.2 Bridgewater 49.7 Brookfield 42.9 Danbury 36.4 New Fairfield 41.1 New Milford 40.6 Newtown 42.3 Redding 47.2 Ridgefield 42.0 Sherman 47.1 Connecticut 39.8

Source: U.S. Census American Community Survey Five Year (2007-2011)

When comparing Danbury to other similar cities in Connecticut, it is evident that Danbury has a slightly higher median age (Figure 10); only the city of Norwalk has a higher median age of 42.3. This shows that even in its main city, the WCEDA Region still currently has a relatively ‘older’ population.

Figure 10: Median Age by Major Connecticut Cities

Median Age Municipality/City (Years) Norwalk 42.3 Danbury 36.5 Waterbury 35.8 Stamford 35.4 Bridgeport 32.8 New Haven 30.2 Hartford 29.9

Source: U.S. Census American Community Survey One Year (2011)

When observing median age by racial group in the WCEDA Region (Figure 11), it is evident that the White population is generally older than the Black or Asian populations in most WCEDA regional municipalities. The age difference between these groups is most striking in Danbury where the median age of the White population is 39.8; and the median ages of the Black and Asian populations are 32 and 33.1, respectively. This implies that there is an age dynamic in the city that is separated by racial lines. Please note that Sherman’s population is almost 100 percent White; therefore there is no data for Black and Asian in this figure.

______Western Connecticut Economic Development Alliance Comprehensive Economic Development Strategy Western Connecticut CEDS and Action Agenda Page 30 Figure 11: WCEDA Regional Municipalities Median Age by Race

60 White Black Asian

Median Age Median 20

Bethel

County

Fairfield

County

Redding

Danbury

Sherman

Litchfield

Newtown

Ridgefield

Brookfield

Connecticut

New New Milford Bridgewater New New Fairfield

Source: U.S. Census American Community Survey Five Year (2007-2011)

When observing median age by the Hispanic/Latino population in comparison to the non- Hispanic/Latino population, it is clear from Figure 12that the Hispanic/Latino population is significantly younger in most WCEDA regional municipalities. In municipalities such as Danbury and Newtown, the median age for Hispanics/Latinos is under 30years of age. This indicates that the product and service demands of this population are most likely very different from the older, non-Hispanic population. It also indicates that there are workforce segmentations because persons with a median age under 30 will have a shorter duration of work experience and possibly lower skill sets. Hence, this also might imply significant income differences between the two groups.

Figure 12: WCEDA Regional Municipalities Median Age by Ethnicity

60 Hispanic Non-Hispanic

20 Median Age Median

Bethel

County

Fairfield

County

Redding

Danbury

Sherman

Litchfield

Newtown

Ridgefield

Brookfield

Connecticut

New New Milford Bridgewater New New Fairfield

Source: U.S. Census American Community Survey Five Year (2007-2011)

______Western Connecticut Economic Development Alliance Comprehensive Economic Development Strategy Western Connecticut CEDS and Action Agenda Page 31 Figure 13 shows median age by the foreign born population in comparison to the non-foreign born population. These two groups have much more similar median ages across WCEDA regional municipalities in comparison to Figure 12. In Danbury, however both groups have a lower median age than the other WCEDA regional municipalities, which is approximately in the mid- thirties.

Figure 13: WCEDA Regional Municipalities Median Age by Foreign Born Population

50 Foreign Born Non-Foreign born

20 Median Age Median 10

Bethel

Redding

Danbury

Sherman

Newtown

Ridgefield

Brookfield

Connecticut

New New Milford

Bridgewater

New New Fairfield Fairfield County Fairfield Litchfield Litchfield County

Source: U.S. Census American Community Survey Five Year (2007-2011)

Age Distributions According to Figure 14, The WCEDA Region has notably larger shares of persons in the 45 to 54 age demographic and the 35 to 44 age demographic in comparison to the United States and Connecticut. These age group categories typically consist of individuals who are working and, additionally, have a number of years of work experience.

A likely reason as to why the WCEDA Region has a slightly higher percentage of older individuals, especially in the 45 to 54 age cohort, is the combination of the national trend of the aging ‘baby boomer’ population and that most who live in the WCEDA Region live in the suburbs, which is typical of older, more settled individuals and families.

In contrast, the WCEDA Region has significantly smaller shares of persons in the 25 to 34 age cohort and 20 to 24 age cohort in comparison to the United States and Connecticut. For age categories under 19 years, the WCEDA Region has similar age distributions to that of the United States and Connecticut. Furthermore, when analyzing Figure 14, it is clear that there are smaller percentages of younger age cohorts to fill in for the gap potentially left by the baby boomer population when they retire.

______Western Connecticut Economic Development Alliance Comprehensive Economic Development Strategy Western Connecticut CEDS and Action Agenda Page 32 Figure 14: WCEDA Region, Connecticut, and United States Age Distribution

20% United States 18% 16% Connecticut 14% Western Connecticut Economic 12% Development Region 10%

Percent 8% 6% 4% 2%

years

5 to 9 to 5

years

years years years years years years years years years years

and over and

Under 5 Under

15 to 19 to 15 24 to 20 10 to 14 10 to 34 25 to 44 35 to 54 45 to 59 55 to 64 60 to 74 65 to 84 75 85 years 85

Source: U.S. Census American Community Survey Five Year (2007-2011)

It is predicted that this population growth trend of older residents will continue as more and more baby boomers reach ‘retirement age’. This finding indicates that more people in the WCEDA region will be dependent on fixed incomes as they retire in the near future. It also means that the population will most likely demand more healthcare and social assistance services as they age because of the greater likelihood of deteriorating health.

Theoretically, persons living on fixed income spend less because they are typically no longer generating wealth or generating as much wealth as they did when they were working. This implies that persons living on fixed incomes will have less consumer spending power. This predicted change in consumer spending patterns will most likely affect the retail trade sector in the WCEDA Region the most. The Retail Trade sector is a major component of the WCEDA economy. Consequently, economic strategies should be implemented that retain consumer spending in retail establishments by attracting persons from nearby geographies.

The second implication from the ageing population is that the ageing population will demand more health services. The sheer employment growth of the Healthcare and Social Assistance sector in the WCEDA Region coupled with the emergence of the ageing population, in comparison to other regions implies that the WCEDA Region has the potential to be a regional economic hub in this sector. This means that the WCEDA Region must implement growth strategies that target employment in this industry. One strategy must focus on linkages between educational attainment and job placement in order for supply to meet the growing demand.

When analyzing age distributions by municipality within the WCEDA Region, it is apparent that age distributions are consistent across municipalities, with the exception of Danbury (Figure 15). Danbury has much larger shares of 20 to 24 year olds and 25 to 34 year olds. A possible reason as to why Danbury has larger proportions of younger individuals is because of the university presence in Danbury. Danbury is home to Western Connecticut State University (WCSU), which has approximately 6,200 students; and Naugatuck Valley Community College (Danbury branch), which has approximately 1,000 students.2 Another possible reason as to why Danbury has higher

2“Western Facts & Figures. ”Western Connecticut State University& Western Connecticut Economic Development Alliance Retail & Downtown Services Focus Group. Nov 2012. ______Western Connecticut Economic Development Alliance Comprehensive Economic Development Strategy Western Connecticut CEDS and Action Agenda Page 33 proportions of younger individuals is because of the large concentration of Hispanic/Latinos in Danbury, who tend to be younger recent immigrants.

Figure 15: Age Distribution by WCEDA Regional Municipalities

45 Sherman Ridgefield 40 Redding Newtown 35 New Milford New Fairfield

Thousands Danbury Brookfield 30 Bridgewater Bethel 25 20

15 Population 10 5

years…

years

5 to 5 9

years

years years years years years years years years years years

Under 5 Under

10 to to 14 10 to 20 24 to 25 34 to 35 44 to 45 54 to 55 59 to 60 64 to 65 74 to 75 84 to 15 19

Source: U.S. Census American Community Survey Five Year (2007-2011)

When analyzing population distribution by age over time, in Figure 16, it is clear that the WCEDA Region population has had a significant demographic shift. In comparison to 2000, 2010 had larger shares of the WCEDA population that were 45 and older. There was also a significant decline among residents in the 25 to 44 year older cohort. Also notable is the fact that there has been only slight growth in younger cohort.

Figure 16: WCEDA Region Age Distribution, 2000 to 2010

45 2000 2010 40 35

Thousands 30

25 20

Percent 15 10 5

years

5 to 5 9

years

years years years years years years years years years years

Under 5 Under

10 to 10 14 to 15 19 to 20 24 to 25 34 to 35 44 to 45 54 to 55 59 to 60 64 to 65 74 to 75 84

85 years 85 and overand

Source: U.S. Census American Community Survey Five Year (2007-2011)

______Western Connecticut Economic Development Alliance Comprehensive Economic Development Strategy Western Connecticut CEDS and Action Agenda Page 34 Population by Race Referencing Figure 17, it is clear that the WCEDA Region’s population is less racially diverse than that of Connecticut, with racial minorities aggregately comprising less than 15 percent of the total WCEDA Region population. In comparison, Connecticut’s population is comprised of approximately 21 percent racial minorities.

Figure 17: WCEDA Region and Connecticut Population by Race

American Pacific Asian Two or Pacific Other Indian Islander 4% more Islander race and 0.1% Other American Two or races 0.1% 5% Alaska race Indian more 2% Native 5% and races 0.1% Asian Alaska 2% 4% Native Black 0.1% 4%

Black 10%

White White 79% 85%

WCEDA Region Connecticut

Source: U.S. Census American Community Survey Five Year (2007-2011)

Danbury has the largest concentration of racial minorities in the WCEDA Region. Approximately 28 percent of the city’s demographic is non-White. Yet, according to Figure 18, the racial composition of Danbury is relatively small in comparison to other cities in Connecticut.3

3 Pacific Islander, and American Indian and Alaska Native populations are so small in the selected geographies, so they are difficult to see in Figure 1.4.2. ______Western Connecticut Economic Development Alliance Comprehensive Economic Development Strategy Western Connecticut CEDS and Action Agenda Page 35 Figure 18: Population by Race of Major Connecticut Cities

100% 90% 80% 70%

60% 50%

40% Percent 30% 20% 10% 0% Bridgeport Danbury Hartford New Haven Norwalk Stamford Waterbury Other Race American Indian Pacific Islander Asian Black White

Source: U.S. Census American Community Survey Five Year (2007-2011)

Figure 19 shows population growth rates by racial group from 2000 to 2010.4 It is clear from this figure that the White population in the WCEDA Region grew minimally in this time period. The Black population in WCEDA grew slightly faster than Connecticut. Lastly, the Asian population in the WCEDA Region grew substantially (40 percent), yet it was still much slower than Connecticut’s growth rate of 65 percent.5 This figure suggests, when observing the stagnation of White population growth and the boom in growth of the non-White population that a substantial piece of future population growth in the WCEDA Region will originate from non-Whites, especially those living in Danbury. Thus, the WCEDA Region is positioned to become more racially diverse.

Figure 19: WCEDA Region Population Growth by Race, 2000 to 2010

70% White Black Asian 60%

50%

40%

30% Percent

20%

10%

0% WCEDA Region Connecticut Fairfield County Litchfield County

Source: U.S. Census Decennial Census, 2000 and 2010

4 Hispanics/Latinos are not considered a racial group. Hispanics/Latinos are considered an ethnicity, which means that Hispanics/Latinos can be of any racial background. 5 Pacific Islanders and American Indians were not included in this analysis because the populations are very small. Hence, they are not large enough to draw reasonable conclusions from the data. ______Western Connecticut Economic Development Alliance Comprehensive Economic Development Strategy Western Connecticut CEDS and Action Agenda Page 36 Population by Ethnicity The Hispanic/Latino population in most WCEDA municipalities is relatively small, with the exception of Danbury (Figure 20). Danbury’s Hispanic/Latino population of 25 percent currently exceeds that of the United States and Connecticut (16 percent and 13 percent, respectively). The growth of Danbury’s Hispanic/Latino population has been identified as a fairly recent phenomenon with most of the Hispanic/Latino population migrating to the region after the mid- 1990s. The significant increase of the Hispanic/Latino population has substantial implications for the economic and cultural traits of the city of Danbury and the WCEDA Region as well.

For example, the Hispanic/Latino community most likely possesses cultural traditions that may lead to cultural barriers with the non-Hispanic community. For example, the Hispanic/Latino community will demand certain types of products, such as food; and services because of cultural reasons; that are traditionally not sought out by the non-Hispanic community. Furthermore, there may be cultural barriers such as language barriers between the Hispanic/Latino and the non- Hispanic/Latino population. This will have an impact on where how people can communicate effectively in terms of educational development, business transactions, and more. Hence, it is necessary to understand cultural differences to strengthen the WCEDA Region culturally and economically.

Figure 20: Hispanic/Latino Population by WCEDA Regional Municipalities

Non-Hispanic or Latino Hispanic or Latino (of any race) 100% 90% 80%

70%

60% 50%

Percent 40% 30% 20% 10%

Bethel

Redding

Danbury

Sherman

Newtown

Ridgefield

Brookfield

Connecticut

New New Milford

Bridgewater New New Fairfield United United States

Source: U.S. Census American Community Survey Five Year (2007-2011)

The overall growth rate of the Hispanic/Latino population was substantial from 2000 to 2010 (Figure 21). In the WCEDA Region, the Hispanic/Latino population grew by 77 percent. Danbury accounted for 71 percent of the Hispanic/Latino population growth in the WCEDA Region. WCEDA’s Hispanic/Latino population growth rate far exceeded that of Connecticut and Fairfield County. Conversely, the non-Hispanic/Latino growth rate was extremely marginal in the WCEDA Region over this time period (0.34 percent).

______Western Connecticut Economic Development Alliance Comprehensive Economic Development Strategy Western Connecticut CEDS and Action Agenda Page 37 Figure 21: Population Growth Rate by Ethnicity, 2000 to 2010

Hispanic Non-Hispanic 119% 115%

95% 77%

75%

55% 50% 48% Percent 35%

15% 0.34% 0.32% -2.05% 1.73% -5% WCEDA Region Connecticut Fairfield County Litchfield County

Source: U.S. Decennial Census, 2000 and 2010

It is important to point out the magnitude of the Hispanic/Latino growth rate over the last decade. Overall, the WCEDA Region, from 2000 to 2010, gained 12,624 persons, of which the Hispanic/Latino population increased by 11,703 persons. Therefore, 93 percent of all WCEDA Region population growth was from Hispanic/Latino population growth.

Furthermore, in Figure 22, it is apparent when analyzing Hispanic/Latino growth rates among Connecticut’s large cities that Danbury’s Hispanic/Latino population growth rate far exceeded that of any other city. Given these exceptional growth rates, it is crucial to evaluate the economic and cultural impact that it has had and will have on this growing community.

Figure 22: Population Growth Rate by Ethnicity in Connecticut Cities, 2000 – 2010

80% 71% Hispanic Non-Hispanic 70% 60% 60% 49% 47%

50%

40% 35%

30% 24% Percent 20% 10% 10% 0% -2% -3% -10% -6% -4% -4% -7% -10% -20% Bridgeport Danbury Hartford New Haven Norwalk Stamford Waterbury

Source: U.S. Decennial Census 2000 and 2010

______Western Connecticut Economic Development Alliance Comprehensive Economic Development Strategy Western Connecticut CEDS and Action Agenda Page 38 When analyzing the WCEDA Region by Hispanic/Latino ethnicity (Figure 23), it is clear that the majority of individuals that comprise the Hispanic/Latino population are persons of Ecuadorian descent (approximately 30%). Overall, Connecticut has a relatively small percentage of Ecuadorians. However, Litchfield County and Fairfield County have a larger Ecuadorian population. A possible reason as to why this is the case is because New York City has historically been the area in which Ecuadorian immigrants have settled in the United States. As time progressed, they migrated outwards to areas close to New York City such as Danbury. 6

The second most populous Hispanic/Latino group in the region is comprised of persons of Puerto Rican descent (approximately 20%), which is the most populous Hispanic/Latino group in Connecticut. The WCEDA Region also has a sizable Mexican population (approximately 10 percent) that is consistent with that of Connecticut.

Figure 23: WCEDA Region Hispanic/Latino Population by Ethnicity

100% 90% 80%

70%

60%

50% Percent

40% 30% 20% 10% 0% WCEDA Region Connecticut Fairfield County Litchfield County Other Hispanic or Latino Ecuadorian Other South American Central American Dominican (Dominican Republic) Cuban Puerto Rican Mexican

Source: U.S. Census American Community Survey Five Year (2007-2011)

In addition to the significant Hispanic/Latino population in Danbury, it is also home to a significant Brazilian population. As seen in Figure 24 below, the Brazilian population in Danbury population is approximately 4.5 percent (approximately 3,500 persons) of the total population, which is much higher than that of Connecticut, Fairfield County, and Litchfield County. There is also a relatively high percentage of Brazilians living in New Milford (about 1.5 percent).

6Bergad, Laird W., “Ecuadorians in the United States: 1980-2008.” Center for Latin America, Caribbean & Latino Studies, Graduate Center of University of New York. Apr. 2011. ______Western Connecticut Economic Development Alliance Comprehensive Economic Development Strategy Western Connecticut CEDS and Action Agenda Page 39 Figure 24: WCEDA Regional Municipalities Brazilian Population7

5.0% 4.5% 4.0%

3.5%

3.0% 2.5%

Percent 2.0%

1.5% 1.0% 0.5%

0.0%

Bethel

Redding

Danbury

Sherman

Newtown

Ridgefield

Brookfield

Connecticut

New New Milford

Bridgewater

New New Fairfield

Fairfield County Fairfield Litchfield Litchfield County

Source: U.S. Census American Community Survey Five Year (2007-2011)

Migration In comparison to Connecticut, the WCEDA region has a slightly higher percentage of foreign born persons in its region (Figure 25). However, in comparison to Fairfield County, the WCEDA Region percentage of foreign born persons is smaller. The percent of foreign born persons in Litchfield County is smallest in comparison to these regions.

Figure 25: WCEDA Region Foreign Born Population8

100% 90% 80% 70% 60%

50% Percent

40% 30% 20% 10% 0% WCEDA Region Connecticut Fairfield County Litchfield County

Foreign born Native (Born outside U.S in U.S territory) Native (U.S. born)

Source: U.S. Census American Community Survey Five Year (2007-2011)

7 Brazilians are not considered ‘Hispanic’ or ‘Latino’ according to the U.S. Census because they do not traditionally speak Spanish. The U.S. Census categorizes Brazilians as White. 8 U.S Territories: Puerto Rico, Northern Mariana Islands, United States Virgin Islands, American Samoa, Guam, United States Minor Outlying Islands. ______Western Connecticut Economic Development Alliance Comprehensive Economic Development Strategy Western Connecticut CEDS and Action Agenda Page 40

However, when evaluating the foreign born population by large cities in Connecticut (Figure 26), it is clear that the foreign born population in the city of Danbury is substantial (approximately 30 percent). This is significantly higher than Connecticut’s proportion of about 15 percent. Further, when analyzing large cities, only the city of Stamford has a larger proportion of foreign born persons than Danbury.

Figure 26: Foreign Born Population by Major Connecticut Cities

100% 90% 80%

70%

60% 50%

Percent 40%

30% 20% 10% 0% Bridgeport Danbury Hartford New Haven Norwalk Stamford Waterbury Foreign born Native (Born outside U.S in U.S territory) Native (U.S. born)

Source: U.S. Census American Community Survey Five Year (2007-2011)

Foreign born migration to the WCEDA Region in recent decades has been the biggest factor engendering population growth. International migration from Latin America, in particular, has been the primary source of this growth. As seen in Figure 27, there has been a shift in migration patterns not only in the WCEDA Region, but also overall in the United States. Prior to 1980, the majority of immigrants to the WCEDA Region emigrated from Europe. After 2000, the majority of immigrants originated from Latin America.

The underlying reasons for increased migration to the United States from Latin American are in United States immigration policy and economic conditions in migrant countries. In the mid-1990s, the United States government passed legislation that relaxed immigration policies, particularly for persons from Latin America. Additionally, dire economic conditions during the 1980s in Latin America, colloquially referred to as the ‘lost decade’, created continued economic and social inequalities.9 Relative economic stability and opportunity in the United States compelled many to move from Latin American locales.

9Bergad, Laird W.. “Ecuadorians in the United States: 1980-2008.” Center for Latin America, Caribbean & Latino Studies, Graduate Center of University of New York. Apr. 2011. ______Western Connecticut Economic Development Alliance Comprehensive Economic Development Strategy Western Connecticut CEDS and Action Agenda Page 41 Figure 27: WCEDA Region Foreign Born Population by Region of Origin and Year of Entry

100% 90% 80% 70% 60%

50% Percent

40% 30% 20% 10% 0% Europe Asia Latin America Other Areas

Entered 2000 or later: Entered 1990 to 1999 Entered 1980 to 1989 Entered before 1980

Source: U.S. Census American Community Survey Five Year (2007-2011)

As discussed in the previous section, the WCEDA Region became home to concentrations of particular ethnic groups, such as Ecuadorians and Brazilians. These sizable, concentrated communities attracted even more ethnically similar migrants, especially during the mid-2000s ‘economic boom’ years in the United States.

However, during the Financial Crisis of 2008 and the subsequent recession, migration to the United States and, in the Danbury area, decreased and actually reversed because of the overall lack of economic opportunity.10 Furthermore, because of improved economic growth in their home countries, such as Brazil during the U.S. recession, many immigrants chose to move back. However, now that the United States economy and WCEDA economy are improving again and the Brazilian economy is relatively weaker, there may be another reversal in immigration flows. Consequently, it is surmised that growth of populations originating from Latin America in the WCEDA Region will depend on continued relative economic stability in the WCEDA and the greater WCEDA Region. It is also important to note that impending changes to immigration laws in the United States may have a significant impact on future migration patterns from Latin America.

Foreign born migration has been the main driving force behind population growth in the WCEDA Region over the last two of decades. However, in Figure 28, it is also evident that domestic migration has played a role in population formation in the WCEDA Region. Figure 28 shows that the percentage of persons migrating from different states is higher in Brookfield, Danbury, and Ridgefield in comparison to Connecticut, Fairfield County, and Litchfield County. This regional pull of people to the area is most likely because of economic reasons, as Danbury and Ridgefield are two of the leading centers of economic activity in the WCEDA Region. Furthermore, the WCEDA Region is very close to the New York City metro area, which possesses one of the largest

10Miller, Robert. “Many Brazilians Leaving State for Home Country.” News Times 16 February 2013: web. ______Western Connecticut Economic Development Alliance Comprehensive Economic Development Strategy Western Connecticut CEDS and Action Agenda Page 42 population blocks in the United States. Persons from the metro block maybe more compelled to move to the WCEDA Region because of a relatively lower cost of living in the WCEDA Region.

Figure 28: Recent WCEDA Regional Municipality Domestic and International Migration11

4.0% % Moved from Different State % Moved from Abroad 3.5% 3.0%

2.5%

2.0% Percent 1.5% 1.0% 0.5%

0.0%

Bethel

County

Fairfield

County

Redding

Danbury

Sherman

Litchfield

Newtown

Ridgefield

Brookfield

Connecticut

New New Milford

Bridgewater New New Fairfield

Source: U.S. Census American Community Survey Five Year (2007-2011)

Household Income In the WCEDA Region, most of the municipalities have a higher household median income than Connecticut, Fairfield County, and Litchfield County. The only municipality that has a lower median income than Connecticut is Danbury, as seen in Figure 29. Ridgefield, Redding, Brookfield, and Sherman have considerably higher median incomes than that of Connecticut, Fairfield County, and Litchfield County.

11 The bars labeled ‘% Moved from Different State’ can include foreign born as well as native populations. ‘% Moved from Different State’ also applies to all ethnic and racial groups. ______Western Connecticut Economic Development Alliance Comprehensive Economic Development Strategy Western Connecticut CEDS and Action Agenda Page 43 Figure 29: WCEDA Regional Municipalities Household Median Income

$140 $120

$100 Thousands

$80 $60 $40 $20

Median Income Median $0

Bethel

Redding

Danbury

Sherman

Newtown

Ridgefield

Brookfield

Connecticut

New New Milford

Bridgewater

New New Fairfield Fairfield County Fairfield Litchfield Litchfield County

Source: U.S. Census American Community Survey Five Year (2007-2011)

Figure 30 shows income distribution among households by WCEDA regional municipalities. Danbury has the most diverse income distribution, with a higher percentage of households ‘living in poverty’ (approximately 17 percent).12 Connecticut has a slightly higher percentage of households living in poverty with 18 percent. Conversely, all other municipalities have less than 10 percent of households with incomes under the poverty threshold. Both Fairfield County and Litchfield County have approximately 15 percent of their households under this income threshold.

Ridgefield has the highest share of households that earn more than $100,000 annually. Other towns with high percentages of households in this income group include Sherman, Redding, and Newtown. It is also important to note that most municipalities in the WCEDA Region have a more robust ‘middle class,’ such as Bethel, Danbury, and New Milford.

Figure 30 also implies, however, that there is a clear distinction between the earnings of those that reside in the suburbs of Danbury and Danbury itself. Not only does Danbury have more households living in poverty, but it has the largest percentage of households with ‘middle class’ incomes.13 Given that most households in the suburbs are more affluent, and Danbury is and will remain the central business district of the WCEDA Region, it is important to consider economic development strategies in Danbury that will appeal to all income classes to attract an array of demographics into the city.

12 Household poverty level defined as households with incomes below $25,000. 13 ‘Middle class’ incomes defined as incomes between $25,000 and $100,000. ______Western Connecticut Economic Development Alliance Comprehensive Economic Development Strategy Western Connecticut CEDS and Action Agenda Page 44 Figure 30: WCEDA Regional Municipalities Household Income Distributions

100% 90% 80%

70%

60% 50%

40% Percent 30% 20% 10%

Bethel

Redding

Danbury

Sherman

Newtown

Ridgefield

Brookfield

Connecticut

New Milford New

Bridgewater

New Fairfield New

Fairfield County Fairfield Litchfield County Litchfield Low Income ($0 - $24,999) Middle Income ($25,000-$99,000) High Income($100,000 or more)

Source: U.S. Census American Community Survey Five Year (2007-2011)

As previously identified, the WCEDA Region has a substantial foreign born population, with most of this population residing in the city of Danbury. When analyzing the income distribution of the foreign born population in Danbury, it is evident that this population does not mimic the income distribution of the general WCEDA Region population. In Danbury, approximately 50 percent of the foreign born population earns less than $25,000 a year, while 40 percent of the non-foreign born population earns this much. Furthermore, only about 10 percent of the foreign born population in Danbury earns more than $65,000 in income. In contrast, approximately 20 percent of the non-foreign born population in Danbury earns more than $65,000 a year. Hence, the foreign born population is not as economically prosperous in comparison to the non-foreign born population in the WCEDA Region. Possibly, the foreign-born population is less affluent in comparison to the non-foreign born population because they arrived later, and thus have not accumulated as much wealth in comparison to persons who have been here much longer.

When comparing this analysis to Connecticut, it is clear in Figure 31, that there is less of a contrast. The foreign born and the non-foreign born populations in Connecticut have slightly more similar income distributions than that of Danbury. This suggests that there is a higher degree of income segmentation in Danbury for industry, or occupational reasons among these two groups.

______Western Connecticut Economic Development Alliance Comprehensive Economic Development Strategy Western Connecticut CEDS and Action Agenda Page 45 Figure 31: Foreign Born and Non-Foreign Born Earnings in Danbury (By Individual)

100% 90%

80%

70% 60% 50% 40%

30% Income Distribution Income 20% 10% 0% Non-Foreign Foreign Non-Foreign Foreign Non-Foreign Foreign Non-Foreign Foreign Born Born Born Born Danbury Connecticut Fairfield County Litchfield County Income $65,000 or more Income $25,000-$64,999 Income $1-$24,999

Source: U.S. Census American Community Survey Five Year (2007-2011)

As expected, incomes vary by education level. The more education attained usually means that one will earn more income. However, it is interesting to point out in Figure 32, that across WCEDA regional municipalities, incomes vary significantly for persons with the same level of educational attainment. For example, persons who possess a graduate or professional degree and reside in Ridgefield earn significantly more than a person who possesses a graduate or professional degree in Danbury or Bethel. According to Figure 32, for example, a person with a graduate degree in Bethel earns about $80,000 while a person with a graduate degree in Ridgefield earns approximately $100,000. This suggests that there are significant occupational segmentations and/or graduate degree discipline variations across WCEDA municipalities.

The only category in which there is not as much variation in earnings is with persons who possess high school degrees. Most households in this category earn in the $30,000-40,000 range annually, with the exception of Danbury, which earn slightly below $30,000. What is also interesting is that in Ridgefield, Redding, Bridgewater, and New Fairfield persons in the ‘less than high school graduate’ category earn slightly more than persons in the ‘high school graduate’ category. This suggests that for jobs in some municipalities there may not be any added value to obtaining higher education in terms of earning more income because of local industry and employment dynamics. This may also increase pressure to commute farther distances for higher wage employment opportunities, contributing to peak hour road congestion.

______Western Connecticut Economic Development Alliance Comprehensive Economic Development Strategy Western Connecticut CEDS and Action Agenda Page 46 Figure 32: WCEDA Regional Municipalities Median Household Income by Educational Attainment (Individuals over 25 years of age)

Less than high school graduate High school graduate

$120 Bachelor's degree Graduate or Professional degree

$100

Thousands $80

$60

$40

$20 Median Income Median

New

Bethel

County

Fairfield Fairfield

County

Redding

Danbury

Sherman

Litchfield

Newtown

Ridgefield

Brookfield

Connecticut New New Milford Bridgewater

Source: U.S. Census American Community Survey Five Year (2007-2011)

Figure 33 displays Hispanic/Latino household median income in comparison to non-Hispanic median income by municipalities in the WCEDA Region and by comparative region.14 In most municipalities, the median income of non-Hispanics/Latino significantly exceeds that of Hispanics/Latino households. Consequently, Hispanic/Latino households, concentrated in the city of Danbury, will most likely spend less money on consumer goods and services. This means that businesses aims will generally be different for this community in comparison to the non- Hispanic/Latino community further implying economic segmentations by ethnicity in the WCEDA Region. Thus, these income disparities will be important when deciding how to strategize what business development will be appropriate for the WCEDA Region, especially in the downtown area of Danbury, where most Hispanics/Latinos reside. In comparison to Connecticut, however, Hispanic/Latino households in the WCEDA Region perform better. Furthermore, many college students reside and attend classes in downtown Danbury and this opportunity should be considered of downtown planning initiatives.

14Incomes in some WCEDA towns may be distorted due to the low number of Hispanic households in that particular town. ______Western Connecticut Economic Development Alliance Comprehensive Economic Development Strategy Western Connecticut CEDS and Action Agenda Page 47 Figure 33: WCEDA Regional Municipalities Median Household Income by Ethnicity

Hispanic Median

$140 Income $120 Non-Hispanic Median Income

$100 Thousands

$80 $60 $40 $20

Median Income Median $0

Bethel

County

Fairfield

County

Redding

Danbury

Sherman

Litchfield

Newtown

Ridgefield

Brookfield

Connecticut

New New Milford Bridgewater New New Fairfield

Source: U.S. Census American Community Survey Five Year (2007-2011)

Earnings by racial background also vary significantly across towns and racial groups (Figure 34).15Overall, Blacks earn the least in most WCEDA regional municipalities. However, in many towns, incomes across racial categories may be distorted due to low minority population in those particular towns.

Figure 34: WCEDA Regional Municipalities Median Household Income by Race

$100 $90 White Black Asian $80 $70

Thousands $60 $50 $40 $30 $20 $10

Median Income Median

Bethel

Redding

Danbury

Sherman

Newtown

Ridgefield

Brookfield

Connecticut

New New Milford

Bridgewater

New New Fairfield

Fairfield County Fairfield Litchfield Litchfield County

Source: U.S. Census American Community Survey Five Year (2007-2011)

15Incomes by race in some WCEDA towns may be distorted due to the low number of households of certain racial groups in that particular town. ______Western Connecticut Economic Development Alliance Comprehensive Economic Development Strategy Western Connecticut CEDS and Action Agenda Page 48 Poverty Overall, WCEDA municipalities have a low incidence of individuals living in poverty, with the exception of Danbury (Figure 35). The U.S. Census Bureau calculates poverty for individuals based on an income threshold per family. If the family income falls under the threshold, then every individual in the family is considered living in poverty.16 Danbury has approximately 10 percent of its population living in poverty, which exceeds the percentages of individuals living in poverty in Connecticut, Fairfield County, and Litchfield County.

Figure 35: WCEDA Regional Municipalities Poverty Rates (by Individual)

12%

10%

8% Percent 6%

Bethel

County

Fairfield

County

Redding

Sherman

Litchfield

Danbury

Newtown

Ridgefield

Brookfield

Connecticut

New New Milford Bridgewater New New Fairfield

Source: U.S. Census American Community Survey Five Year (2007-2011)

Figure 36 shows poverty level by age cohort. In Danbury, there are a lower number of persons under the age of 18 that are in poverty in comparison to Connecticut. However, Danbury has a much higher incidence of persons over that age of 65 who live in poverty than Connecticut. Nearly ten percent of all people 65 and older are in poverty, while in Connecticut, only about six percent of this age cohort lives in poverty. This is an especially interesting finding because Connecticut has a higher percentage of older individuals than Danbury.

However, given that Danbury has a slightly lower median income than Connecticut, and Danbury’s substantial foreign born population earns much less relative to Connecticut’s foreign born population, it is possible that there is a higher percentage of foreign born people 65 and older in Danbury who no longer work and have relatively smaller, fixed incomes. Thus, there is likely a higher percentage of individuals in Danbury who are 65 and older and living in poverty.

16 The income threshold for poverty for one person in 2011 was $ 11,484. The income threshold for poverty for a person 65 years and older in 2011 was $10,788. See U.S. Census definitions for poverty. ______Western Connecticut Economic Development Alliance Comprehensive Economic Development Strategy Western Connecticut CEDS and Action Agenda Page 49 Figure 36: WCEDA Regional Municipalities Poverty Rates by Age (by Individual)

14% Under 18 years 18 to 64 years 65 and older 12%

10%

6% Percent 4%

Bethel

County

Fairfield

County

Redding

Sherman

Litchfield

Danbury

Newtown

Ridgefield

Brookfield

Connecticut

New New Milford Bridgewater New New Fairfield

Source: U.S. Census American Community Survey Five Year (2007-2011)

Figure 37 compares the overall poverty rate in Danbury to that of other major cities in Connecticut. Undoubtedly, Danbury has a lower incidence of poverty in comparison to cities such as Hartford, which has more than 30 percent of its population living in poverty, and New Haven which has more than 25 percent of its population in poverty.

Figure 37: Poverty Rates in Major Connecticut Cities (by Individual)

35%

30%

25%

20%

15% Percent

10%

0% Bridgeport Hartford Danbury New Haven Norwalk Stamford Waterbury

Source: U.S. Census American Community Survey Five Year (2007-2011)

Also, when analyzing Figure 38, it is evident that Danbury has a much smaller disparity of persons in poverty by different age cohorts in comparison to these cities. For example, in Hartford, New Haven, Waterbury, and Bridgeport, significantly higher percentages of persons under the age of 18 live in poverty than older age cohorts. In contrast, Danbury, Norwalk, and Stamford have much lower percentages and disparities between age cohorts.

______Western Connecticut Economic Development Alliance Comprehensive Economic Development Strategy Western Connecticut CEDS and Action Agenda Page 50

Figure 38: Poverty Rates in Major Connecticut Cities by Age (By Individual)

50% 45% Under 18 18 to 64 65 and older 40% 35%

30% 25%

Percent 20% 15% 10% 5% 0% Bridgeport Hartford Danbury New Haven Norwalk Stamford Waterbury

Source: U.S. Census American Community Survey Five Year (2007-2011)

The overall difference between Hispanic and non-Hispanics living in poverty is significant in many municipalities in the WCEDA region (Figure 39). This difference is especially so in municipalities such as Danbury, Newtown, and Brookfield. However, most of the towns, with the exception of Danbury, do not have significant Hispanic/Latino populations. Therefore, the disparities are much less likely to be statistically significant, and may have little impact on the local economies In comparison to Connecticut, however, Hispanics/Latinos in Danbury are much less likely to be in poverty. Hispanics/Latinos living in poverty in Danbury account for approximately 17 percent, while in Connecticut 25 percent of Hispanics/Latinos live in poverty.

Figure 39: WCEDA Regional Municipalities Poverty Rates by Ethnicity (by Individual)

30% Hispanic or Latino origin (of any race) White alone, not Hispanic or Latino 25%

20%

15% Percent 10%

New

Bethel

County

Fairfield Fairfield

County

Redding

Sherman

Litchfield

Danbury

Newtown

Ridgefield

Brookfield

Connecticut New New Milford Bridgewater

Source: U.S. Census American Community Survey Five Year (2007-2011)

______Western Connecticut Economic Development Alliance Comprehensive Economic Development Strategy Western Connecticut CEDS and Action Agenda Page 51 When analyzing poverty by race, in Figure 40, it is clear that Blacks are more likely to live in poverty than other racial groups living in the WCEDA region. However, Blacks are much less likely to live in poverty in the WCEDA Region in comparison Connecticut, Fairfield County, and Litchfield County.17

Figure 40: WCEDA Regional Municipalities Poverty Rates by Race (by Individual)

45% 40% White Black Asian 35%

30%

25%

20% Percent 15% 10% 5%

Bethel

County

Redding

Danbury

Sherman

Litchfield

Newtown

Ridgefield

Brookfield

Connecticut

New New Milford

Bridgewater New New Fairfield

Fairfield County Fairfield

Source: U.S. Census American Community Survey Five Year (2007-2011)

Furthermore, Asians have low poverty rates in the WCEDA Region relative to Whites and Blacks. The Asian poverty rate is also substantially less than that of Connecticut, Fairfield County, and Litchfield County as well.

Educational Attainment Educational attainment levels across WCEDA municipalities vary significantly. Many municipalities, such as Redding and Ridgefield, according to Figure 41, have high percentages of persons with graduate or professional degrees. In municipalities such as Danbury, New Milford, and Bethel, there are higher percentages of persons that only have high school degrees (or equivalency). Most municipalities in the WCEDA Region have a higher percentage of persons that have achieved higher levels of educational attainment compared to Connecticut. However, the city of Danbury has a higher percentage of persons with lower educational attainment levels than Connecticut; Danbury has a higher percentage of persons with educational attainment levels of ‘less than 9th grade’ and a lower percentage of persons with bachelor’s degrees.

17Poverty rates by race in some WCEDA towns may be distorted due to the low number of individuals of certain racial groups in that particular town. ______Western Connecticut Economic Development Alliance Comprehensive Economic Development Strategy Western Connecticut CEDS and Action Agenda Page 52 Figure 41: WCEDA Regional Municipalities Educational Attainment by Degree Completion (Individuals 25 years of age and older)

100% 90% 80% 70% 60% 50%

Percent 40% 30% 20% 10%

Bethel

Redding

Danbury

Sherman

Newtown

Ridgefield

Brookfield

Connecticut

New Milford New

Bridgewater

New Fairfield New Fairfield County Fairfield

Graduate or professional degree Bachelor's degree County Litchfield Associate's degree Some college, no degree High school graduate (includes equivalency) Less than 9th grade

Source: U.S. Census American Community Survey Five Year (2007-2011)

Figure 42 compares the education attainment levels of Danbury to that of other major cities in Connecticut. The cities have varying ranges of educational attainment levels. Danbury’s level, in comparison, appears to be the average among major Connecticut cities. This observation was deduced because Danbury has a smaller proportion of individuals who have ‘less than 9th grade’ education level than that of Hartford and Bridgeport. However, New Haven and Norwalk have even less than Danbury. Further, the number of persons in Danbury with graduate or professional degrees is about 10 percent. Stamford, New Haven, and Norwalk all have higher percentages of persons with graduate or professional degrees, but Hartford, Bridgeport, and Waterbury all have less.

Figure 42: Educational Attainment by Degree Completion by Major Connecticut Cities (Individuals 25 years of age and older)

100% 90% 80% 70%

60% 50%

Percent 40% 30% 20% 10% 0% Bridgeport Danbury Hartford New Haven Norwalk Stamford Waterbury Graduate or professional degree Bachelor's degree Associate's degree Some college, no degree High school graduate (includes equivalency) 9th to 12th grade, no diploma

Source: U.S. Census American Community Survey Five Year (2007-2011) ______Western Connecticut Economic Development Alliance Comprehensive Economic Development Strategy Western Connecticut CEDS and Action Agenda Page 53 Figure 43 documents the percentages of persons in poverty by their education levels. In most municipalities, with the exception of Bridgewater and Brookfield, persons who possess less than a high school degree are much more likely to be in poverty. However, the incidence of poverty in this particular education level cohort is much lower than that of Connecticut, in which over 20 percent of persons without a high school diploma live in poverty. It is also important to note an individual’s likelihood of living in poverty decreases significantly when they obtain a high school diploma and again when they obtain a bachelor’s degree across all regional segments.

Figure 43: WCEDA Regional Municipalities Educational Attainment by Poverty Rate (by Individual)

Less than high school graduate High school graduate (includes equivalency) Bachelor's degree or higher

20%

15%

10% Percent

Bethel

County

Fairfield

County

Redding

Danbury

Sherman

Litchfield

Newtown

Ridgefield

Brookfield

Connecticut

New New Milford

Bridgewater New Fairfield New

Source: U.S. Census American Community Survey Five Year (2007-2011)

Special Populations This section highlights particular characteristics and patterns of certain marginalized groups through analysis of different indicators. Targeted populations of interest are populations in poverty and the elderly. These groups are of interest because they typically exhibit patterns and characteristics that are anomalous in comparison to the general population.

Figure 44 shows the prevalence of Supplemental Nutrition Assistance Program (SNAP) users in the WCEDA Region. Analyzing SNAP prevalence among municipalities is important because it provides insight on trends of persons lacking access to nutritious foods mainly due to poverty. Danbury has the highest prevalence in the region with approximately six percent of its population on SNAP. However, Danbury’s SNAP rate is much lower than that of Connecticut’s rate of approximately eight percent. Individuals living in poverty are more likely to use SNAP. However, even though Danbury has a slightly higher rate of persons in poverty than Connecticut, there are fewer persons on SNAP.

______Western Connecticut Economic Development Alliance Comprehensive Economic Development Strategy Western Connecticut CEDS and Action Agenda Page 54 Figure 44: WCEDA Regional Municipalities Supplemental Nutrition Assistance Program Rates

9% 8% 7%

4% Percent 3% 2% 1%

Bethel

County

Fairfield

County

Redding

Danbury

Sherman

Litchfield

Newtown

Ridgefield

Brookfield

Connecticut

New New Milford

Bridgewater New New Fairfield

Source: U.S. Census American Community Survey Five Year (2007-2011)

Figure 45 shows families on temporary family assistance (TANF). From 2008 to 2009 the number of families in WCEDA municipalities increased slightly. However, in 2010, the number increased dramatically with most of the growth occurring in Danbury. A possible reason for the increase in 2010 may be a lagged effect from the United States recession.

Figure 45: Number of Families in the WCEDA Region on Temporary Family Assistance, 2008 – 2010

900 Other Towns New Milford Bethel Danbury 800 Municipalities 700

600

500

Count 400 300 200 100 0 2008 2009 2010

Source: Northwest Workforce Investment Area: 2011 Information for Workforce Investment Planning

______Western Connecticut Economic Development Alliance Comprehensive Economic Development Strategy Western Connecticut CEDS and Action Agenda Page 55 Figure 46 shows the number of individuals in the WCEDA Region with Medicaid plans. In 2010, approximately eight percent of the entire WCEDA population (18,155 persons) received Medicaid. Most people in the WCEDA Region who received Medicaid benefits resided in Danbury (11,113, or approximately 61% percent). New Milford had the second highest prevalence of persons with Medicaid benefits (13 percent, or 2,349 persons). Other municipalities in the WCEDA Region had marginal rates of Medicaid benefits usage.

From Figure 46, it is clear that the number of persons on Medicaid increased significantly from 2008 to 2010 (approximately 25 percent). A likely reason for the dramatic increase is the effects of the recession as many people were laid off or underemployed and lost their benefits packages.

Figure 46: Number of Individuals in WCEDA Regional Municipalities with Medicaid Plans, 2008 – 2010

20 18 16

Thousands 14

12 10

Count 8 6 4 2 0 2008 2009 2010 Sherman Ridgefield Redding Newtown New Milford New Fairfield Danbury Brookfield Bridgewater Bethel

Source: Northwest Workforce Investment Area: 2011 Information for Workforce Investment Planning

Figure 47 shows the high school dropout rates by municipality in the WCEDA Region. Overall, the WCEDA Regional Municipality rates are lower than Connecticut’s rate. However, the high school dropout rate for Danbury jumped significantly to 4.1 percent in the 2009-2010 school year. In previous years, it averaged approximately 2.5 percent.

Figure 47: WCEDA Regional Municipalities High School Dropout Rate, 2007-201018

Municipality/Region 2009- 2008- 2007- 2010 2009 2008 Bethel ** ** ** Regional School District 12 ** ** ** (includes Bridgewater) Brookfield 1.3% ** ** Danbury 4.1% 2.3% 2.7% New Fairfield ** 0.8% 0.6%

18 NA indicates that the data was not available. ______Western Connecticut Economic Development Alliance Comprehensive Economic Development Strategy Western Connecticut CEDS and Action Agenda Page 56

New Milford 1.5% 1.8% 1.9% Newtown 0.5% 1.3% 2.3% Regional School District 9 0.6% ** ** (Includes Redding) Ridgefield ** 0.4% 0.6% Sherman NA NA NA Connecticut 2.1% 2.4% 2.2%

** Student Confidentiality requires suppression of district dropout data below 5 students

Source: Northwest Workforce Investment Area: 2011 Information for Workforce Investment Planning

Housing and Real Estate Figure 48 shows single family home price trends for select municipalities19 in the WCEDA Region. Since 2005, home prices decreased due to the effects of the economic recession. Housing prices decreased most dramatically during this time period in Redding, which is one of the wealthier municipalities in the region. However, since 2011, the WCEDA Region housing market has improved; prices are steadily increasing indicating increased demand for single family units.

Figure 48: Select WCEDA Regional Municipalities Single Family Home Prices

$570

$520

$470

$Thousands $420

$370 Price

$320

$270

$220

2009 2000 2001 2002 2003 2004 2005 2006 2007 2008 2010 2011 2012 Bethel Danbury New Fairfield New Milford Newtown Redding

Source: Northwest Workforce Investment Area: 2011 Information for Workforce Investment Planning

Figure 49 details housing permits issued in the WCEDA Region. From 2011 to 2012, the number of housing permits issued in the region overall increased dramatically indicating a resurging housing market. Most of the gain in housing permits in 2012 occurred in Danbury, which had an increase of housing permits issued by 284 percent. Bethel, however, had a decline in the number of housing permits issued (-22 percent).

19 UCONN did not provide data for all WCEDA Region municipalities for this dataset. ______Western Connecticut Economic Development Alliance Comprehensive Economic Development Strategy Western Connecticut CEDS and Action Agenda Page 57 Figure 49: WCEDA Regional Municipalities Housing Permits, 2011 & 201220

Housing Housing Permits Permits % Municipality/Region (2012) (2011) Change Bethel 42 54 -22% Bridgewater NA NA NA Brookfield NA NA NA Danbury 396 103 284% New Fairfield NA NA NA New Milford 18 15 20% Newtown 12 22 -45% Redding NA NA NA Ridgefield 35 12 192% Sherman NA NA NA WCEDA Region 503 206 144% Connecticut 4,140 2,837 46% Fairfield County NA NA NA Litchfield County NA NA NA

Source: Connecticut Department of Economic and Community Development (DECD)21

Figure 50 details the number of housing units available in the region and housing vacancies. In smaller municipalities, such as Bridgewater, New Fairfield, and Sherman, the vacancy rate is much higher. In contrast, larger municipalities such as Danbury and Ridgefield have much lower rates, indicating that demand for housing is higher in those areas. The vacancy rates of Danbury and Ridgefield fall more in line with Connecticut’s vacancy rate of 8 percent.

Figure 50: WCEDA Regional Municipalities Housing Units and Vacancy Rates

Housing Vacant Vacancy Units Houses Rate Municipality/Region (2010) (2010) (2010) Bethel 7,310 372 5% Bridgewater 881 146 17% Brookfield 6,562 433 7% Danbury 31,154 2,247 7% New Fairfield 5,593 791 14% New Milford 11,731 1,113 9% Newtown 10,061 602 6% Redding 3,811 341 9% Ridgefield 9,420 619 7% Sherman 1,831 443 24%

20 Due to the lack of reporting from some towns on the number of housing permits issued, aggregates on the county level were left blank to account for possible inaccuracies. 21 The NA indicates that the data was not available. ______Western Connecticut Economic Development Alliance Comprehensive Economic Development Strategy Western Connecticut CEDS and Action Agenda Page 58

WCEDA Region 88,354 7,107 8% Connecticut 1,487,891 116,804 8% Fairfield County 361,221 25,676 7% Litchfield County 87,550 10,910 12%

Source: U.S. Decennial Census 2010

Figure 51 shows property taxes by WCEDA Region municipality relative to the number of public students enrolled in that particular municipality. Redding clearly has the highest revenues per student. Bridgewater appears to be low, however they are part of a regional school district therefore there revenues per student is distorted. Municipal districts with lower revenues per student include Bethel, Brookfield, Danbury, New Milford, and Newtown.

Figure 51: WCEDA Municipality Property Tax Revenues per Student, 2010

$50,000

$45,000 $40,000 $35,000 $30,000 $25,000 $20,000 $15,000

Property Tax Revenues Tax Property $10,000 $5,000 $-

Municipality

Source: Connecticut Department of Education, Connecticut Department of Policy and Management

Figure 52 shows the distribution of housing types among WCEDA Region municipalities. In most municipalities most residents live in one unit detached houses. However, in municipalities such as Bethel, Danbury, and New Milford there are higher concentrations of housing that are multi-unit. This is especially true in Danbury in which over 50% of its housing is multi-unit.

______Western Connecticut Economic Development Alliance Comprehensive Economic Development Strategy Western Connecticut CEDS and Action Agenda Page 59 Figure 52: WCEDA Region Municipality Housing Type Distribution

100% 90% 80%

70%

60% 50%

Percent 40% 30% 20% 10% 0%

10 or more units 5 to 9 units 3 or 4 units 2 units 1-unit, attached 1-unit, detached

Source: U.S. Census American Community Survey, 2007-2011

Demographic Summary of Key Findings In conclusion, the WCEDA Region possesses many attractive qualities that make it a unique place to live. The WCEDA Region has a growing Hispanic/Latino community that will contribute more and more to its economy and its culture. Furthermore, the WCEDA region, overall, has a relatively low incidence of poverty, and a relatively higher median income than Connecticut. However, the WCEDA region also has many disparities in terms of household median income, poverty, and educational attainment levels between Danbury and the rest of the municipalities. Going forward, these issues should be addressed to sustain the economic strengths of the WCEDA Region.

______Western Connecticut Economic Development Alliance Comprehensive Economic Development Strategy Western Connecticut CEDS and Action Agenda Page 60 Fiscal Analysis Fiscal Analysis Key Findings  The consistently higher value of assessed property in the WCEDA Region as a whole as compared to the state indicates that the region has a large concentration of prosperity. The value of the grand list in Danbury, on the other hand, indicates that the city is uniquely different from other municipalities in the region both because of its elevated population density and its relative concentration of poverty.

 Danbury’s total fund balance expressed as a percent of the grand list rose significantly from 2004-2007 surpassing both the WCEDA Region and Connecticut averages. It can be concluded that the growth in this ratio is due to the rapid growth in Danbury’s fund balance relative to the growth of its grand list.

 Revenue in per capita terms has increased significantly since 2001; however, it has fallen sharply in Danbury, the WCEDA Region, and Connecticut when expressed as a percentage of the grand list. The combination of both of these statistics indicates that the growth in municipal levies has outpaced the growth of real asset values in all three jurisdictions because the rate of growth in per capita revenue exceeds that of revenue per dollar of the grand list.

 According to the data, municipal debt in the WCEDA Region and across Connecticut accumulated at a slower rate than the appreciation of real property value from 2001 through 2011. Municipal debt in Danbury, on the other hand, far outpaced the growth in real property values throughout the same period. Municipal debt as a percent of the grand list in Danbury grew from 1.3% in 2001 to 2% in 2011.

 Long term bonded debt has grown from 2008-2011 in towns with a high proportion of the grand list in residential property and with a lower proportion of commercial property.

 The WCEDA Region has a high proportion of towns with very high bond ratings and has a sustainable fiscal outlook.

 Danbury had a significantly lower debt burden and higher value of assessed property per capita in 2011 than other comparably sized cities in Connecticut. The fiscal statistics for Danbury indicate that the city and the WCEDA Region could leverage the elevated per capita property value to pursue additional investment in economic development.

Fiscal Analysis Details This section examines the fiscal data for the municipalities that make up the WCEDA Region. Using the Connecticut Office of Policy and Management (OPM) data, CERC analyzed the individual WCEDA municipalities and also consolidated the data to create aggregate indicators for the WCEDA Region to compare to the state. The fiscal data provides insight into the individual municipality’s fiscal health, the composition of property types, revenue sources and debt obligation.

Assessed Property Value The equalized net grand list is the estimate of the market value of all taxable property in a municipality less exemptions. It is often expressed in per capita terms to account for relative

______Western Connecticut Economic Development Alliance Comprehensive Economic Development Strategy Western Connecticut CEDS and Action Agenda Page 61 differences in population size when comparing two distinct geographies (Figure 53). The highest absolute grand list value in the WCEDA Region was found in Danbury with $7.8 billion of assessed property in 2011. However, Danbury is also the lowest when population is accounted for amongst the WCEDA regional municipalities with a grand list value of only $95,876 per capita. However, there are relatively large properties in Danbury such as Danbury Hospital and Western Connecticut State University that are tax exempt, thus skewing the Danbury grand list per capita number. The highest per capita grand list value in the WCEDA Region, on the other hand, could be found in Bridgewater with $241,892 per resident, more than two times that of Danbury. The per capita grand list for the WCEDA Region as a whole was $132,600 which was considerably higher than the state’s $110,267 per resident.

Figure 53: Net Grand List per Capita by WCEDA Regional Municipalities, 2011

$250

$200

$150

$100 Thousands

$50

Bethel

Redding

Danbury

Sherman

Newtown

Ridgefield

Brookfield

New New Milford

Bridgewater New New Fairfield

Source: CT Office of Policy and Management, 2011

Since Danbury is the largest municipality in the WCEDA Region, its grand list per capita is tracked relative to the WCEDA Region as a whole and Connecticut. In Figure 54 the value of assessed property per capita in Danbury grew significantly faster than Connecticut but at a similar pace as the WCEDA Region average from 2001 through 2011. The overall value of property per capita in the WCEDA Region was significantly higher than both Connecticut as a whole and Danbury.

______Western Connecticut Economic Development Alliance Comprehensive Economic Development Strategy Western Connecticut CEDS and Action Agenda Page 62

Figure 54: Grand List Per Capita, 2001-2011

$140

$120

Thousands $100

$80

$60

$40

$20 Grand List Per CapitaListGrandPer $- 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Connecticut WCEDA Region Danbury

Source: CT Office of Policy and Management, 2011

Figure 55: Total Grand List Per Capita of Comparably Sized Cities, 2011

$800

$700

$600

$500

$400

$300

$200

$100

Grand List per Capita in Thousands ListCapitain Grandper

Meriden

Norwalk

Hartford

Hamden

Danbury

Stamford

Waterbury

Greenwich

New New Haven

New New Britain W. HartfordW.

Source: CT Office of Policy and Management, 2011

Figure 55 shows the total grand list per capita of ten cities with a comparable population to Danbury. The municipalities are ordered by their respective populations from left to right and range in size from 60,770 in Meriden to 129,585 in New Haven as compared to Danbury which had 81,671 residents in 2011. Greenwich had the highest value of assessed property with $712,705 per capita followed by Stamford with $242,036 in 2011. The lowest grand list value could be found in New Britain with $54,770 of assessed property per resident followed by New Haven with $59,791 in 2011. Danbury had $123,067 of assessed property per resident. The ______Western Connecticut Economic Development Alliance Comprehensive Economic Development Strategy Western Connecticut CEDS and Action Agenda Page 63 average across these eleven cities was $165,029 but was only $110,262 when Greenwich was excluded. The state of Connecticut had an average grand list per capita of $110,267 which was surprisingly below the value of assessed property per capita in Danbury.

The consistently higher value of assessed property in the WCEDA Region as a whole as compared to the state indicates that the region has a large concentration of prosperity. The relatively lower value of the grand list in Danbury, on the other hand, indicates that the city is distinctly different than other municipalities in the region because of both its elevated population density and its relative concentration of poverty.

Figure 56 displays the various property types that make up the grand list. Although similar to Connecticut, the WCEDA Region’s distribution of taxable property varied in several small, but distinct ways. The most significant difference that can be seen from the distribution of the grand list is that 74 percent of the ten town WCEDA Region’s taxable property was residential property as compared to 71 percent across Connecticut. The municipality of Sherman had the highest proportion of the grand list in residential property with 92 percent followed by the municipality of New Fairfield with 89 percent in 2010 (Figure 57). Danbury had the lowest proportion of the grand list in residential property with 62 percent followed by the municipality of Bethel with 71 percent in 2010.

Figure 56: Components of Grand List in the WCEDA Region, 2010

WCEDA Region Connecticut

5% 4% 2% 2% 1% 5% 5% 0% 2% 3% 0% 3%

11% 12%

71% 74%

Residential Commercial Residential Commercial Industrial Public Utility Industrial Public Utility Apartment Motor Vehicle Apartment Motor Vehicle Personal Property Other Personal Property Other

Source: CT Office of Policy and Management, 2011

______Western Connecticut Economic Development Alliance Comprehensive Economic Development Strategy Western Connecticut CEDS and Action Agenda Page 64 Figure 57: Components of Grand List by WCEDA Regional Municipalities, 2010

Public Motor Personal Real Municipality Residential Commercial Industrial Utility Apartment Vehicle Property Exemptions Other

Bethel 71% 10% 4% 0% 1% 5% 6% 0.3% 3%

Bridgewater 88% 1% 0% 0% 0% 4% 1% 0.2% 6%

Brookfield 74% 9% 4% 0% 1% 5% 4% 0.2% 2%

Danbury 62% 19% 5% 0% 3% 5% 6% 8.5% 0% New Fairfield 89% 2% 0% 1% 0% 6% 1% 0.3% 0%

New Milford 69% 9% 4% 0% 0% 7% 6% 0.2% 5%

Newtown 81% 5% 2% 0% 0% 5% 3% 0.4% 3%

Redding 82% 7% 0% 0% 0% 4% 4% 0.03% 3%

Ridgefield 82% 10% 0% 0% 0% 4% 3% 0.6% 1%

Sherman 92% 0% 0% 0% 0% 4% 1% 0.4% 1%

CT Average 71% 12% 3% 0% 2% 5% 5% 2.1% 2% WCEDA Region 74% 11% 3% 0% 1% 5% 4% 2.6% 2%

Source: CT Office of Policy and Management, 2011

The Ten Town WCEDA Region also had a slightly lower proportion of commercial property than the proportion across Connecticut. Commercial property constituted 11 percent of the WCEDA Region’s grand list as compared to 12 percent of taxable property across Connecticut. Danbury had the highest proportion of the grand list in commercial property with 19 percent followed by the municipality of Bethel with a significantly lower 10 percent in 2010. The municipality of Sherman had the lowest proportion of the grand list in commercial property with less than one percent followed by the municipality of Bridgewater with one percent in 2010.

The Ten Town WCEDA Region had a lower proportion of apartment property than the proportion across Connecticut. Rental property constituted one percent of the WCEDA Region’s grand list as compared to two percent of taxable property across Connecticut. Danbury had the highest proportion of the grand list in rental property with three percent followed by the municipality of Sherman with a lower two percent in 2010. However, rental property represented none of the grand list in the municipalities of Bridgewater, New Fairfield, and Redding in 2010.

The Ten Town WCEDA Region had a lower proportion of personal property than the proportion across Connecticut. Personal property constituted four percent of the WCEDA Region’s grand list as compared to five percent of taxable property across Connecticut. The municipality of Bethel had the highest proportion of the grand list in personal property with six percent followed by Danbury also with six percent in 2010. The municipality of Sherman had the lowest proportion of the grand list in personal property with one percent followed by the municipality of New Fairfield also with one percent in 2010.

Total Fund Balance The fund balance is defined as the excess of fund revenues and deferred outflow of resources over fund expenditures (outlays) and deferred inflow of resources. The total fund balance of the

______Western Connecticut Economic Development Alliance Comprehensive Economic Development Strategy Western Connecticut CEDS and Action Agenda Page 65 General Fund has three separate components: designated, reserved, and undesignated fund balance.22

Figure 58 shows the total fund balance per capita across the WCEDA Region in 2011. Bridgewater had the highest value when population was accounted for amongst the WCEDA regional municipalities with $1,968 per capita. The lowest per capita fund balance was found in Newtown with $294 per resident. The fund balance for the WCEDA Region as a whole, per capita, was $408 which was considerably higher than the state’s $328 per resident, which indicates that the region has a significant amount of excess assets relative to those seen across other areas of the state.

Figure 58: Fund Balance Per Capita by WCEDA Regional Municipalities, 2011

$2,000

$1,500

$1,000

$500 Fund Balance Per Capita PerFundBalance

New

Bethel

Fairfield

Redding

Danbury

Sherman

Newtown

Ridgefield

Brookfield New New Milford Bridgewater

Source: CT Office of Policy and Management, 2011

The total fund balance is often expressed as a percent of the total grand list to show the scale of the balance relative to taxable real assets and in per capita terms to account for relative population differences. As shown in Figure 59, Danbury’s total fund balance expressed as a percent of the grand list rose significantly from 2004 through 2007 surpassing both the WCEDA Region and Connecticut averages. When we account for the rapid growth in the grand list previously discussed, it is clear that it can largely be attributed to growth in the fund balance during this period and rising real estate prices. Total fund balance per capita grew consistently faster in the WCEDA Region than the rest of Connecticut. Danbury experienced a substantial increase in the total fund balance per capita from 2004 through 2007 at which point the growth declined slightly before aligning with the pattern experienced by the rest of the WCEDA Region and Connecticut.

22 Please see glossary of terms for further definitions. ______Western Connecticut Economic Development Alliance Comprehensive Economic Development Strategy Western Connecticut CEDS and Action Agenda Page 66 Figure 59: Fund Balance per Capita and as a Percent of Grand List, 2001-2011

0.5% $450

$400

0.4% $350

$300 0.3% $250

$200 0.2% $150

0.1% Capita PerFundBalance $100

$50

0.0% $-

Fund Balance as a Percent of Grand ListPercent a Grand of asFund Balance

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

2003 2001 2002 2004 2005 2006 2007 2008 2009 2010 2011 Connecticut WCEDA Danbury Connecticut WCEDA Danbury Region Region

Source: CT Office of Policy and Management, 2011

Revenues from the General Fund Total revenue is the return a municipality receives from various income sources as it is reported in the general fund. Revenue is often expressed as a percent of the total grand list to show the scale of the balance relative to taxable real assets and in per capita terms to account for relative population differences.

The highest revenue in the WCEDA Region could be found in Danbury with $213.3 million, while the lowest value was in Bridgewater with $6.9 million in 2011. However, when looking at revenue per capita, Ridgefield had the highest value in per capita terms amongst the WCEDA municipalities with $5,173 per resident as shown in Figure 60. The lowest per capita fund balance was found in Danbury with $2,611 per resident. The per capita grand list for the WCEDA Region as a whole was $3,453 which was nearly identical to the state’s $3,490 per resident.

______Western Connecticut Economic Development Alliance Comprehensive Economic Development Strategy Western Connecticut CEDS and Action Agenda Page 67 Figure 60: Revenue Per Capita by WCEDA Regional Municipality, 2011

$6,000

$4,500

$3,000

$1,500 Revenue PerCapita Revenue

New

Bethel

Fairfield

Redding

Danbury

Sherman

Newtown

Ridgefield

Brookfield New New Milford Bridgewater

Source: CT Office of Policy and Management, 2011

Figure 61: Revenue per Capita and as a Percent of Grand List, 2001-2011

5% $4,000

$3,500

4% $3,000

$2,500 3% $2,000

2% $1,500 Revenue PerCapita Revenue $1,000 1%

$500 Revenue as a Percent of Grand of asList Percent a Revenue 0% $-

Danbury WCEDA Connecticut Connecticut WCEDA Danbury Region Region

Source: CT Office of Policy and Management, 2011

Total revenue expressed as a percent of the grand list fell at a nearly identical pace in the WCEDA Region as it did across Connecticut. Figure 61 shows that Danbury, for the most part, maintained a ratio of total revenue to grand list that surprisingly exceeded that of the rest of the WCEDA Region in most of the years from 2001 through 2011, which is a positive statistic for Danbury. Total revenue per capita in Danbury was significantly below the nearly identical levels ______Western Connecticut Economic Development Alliance Comprehensive Economic Development Strategy Western Connecticut CEDS and Action Agenda Page 68 seen in the WCEDA Region and Connecticut as a whole. Although revenue in per capita terms has increased significantly since 2001, it has fallen sharply in all three geographies when expressed as a percentage of the grand list. These statistics indicate that the growth in municipal levies has been outpaced by the growth of real assets in all three jurisdictions.

Long Term Bonded Debt Total debt includes long-term liabilities associated with governmental activities. Items included under the long-term debt category include bonds and notes for which the municipality has pledged its full faith and credit, capital lease obligations, and the portion of Regional School District debt, if any, for which the town is responsible. Debt is often expressed as a percent of the total grand list to show the scale of the balance relative to taxable real assets and in per capita terms to account for relative differences in population.

As would be expected because of its relatively large population and public infrastructure, the highest level of total bonded indebtedness in the WCEDA Region was in Danbury with $157.6 million. The lowest value was in Bridgewater with $279,105 in 2011. Ridgefield had the highest bonded indebtedness in per capita terms amongst the WCEDA regional municipalities with $4,035 per resident (Figure 62). The lowest per capita fund balance was found in Bridgewater with $163 per resident. The per capita grand list for the WCEDA Region as a whole was $2,310 which was nearly identical to the state’s $2,260 per resident.

Figure 62: Average Total Debt Per Capita by WCEDA Regional Municipalities, 2008-2011

$5,000

$4,000

$3,000

$2,000

$1,000 Average DebtPer Capita Average

Bethel

Redding

Danbury

Sherman

Newtown

Ridgefield

Brookfield

New New Milford Bridgewater New New Fairfield

Source: CT Office of Policy and Management, 2011

Figure 63 shows the total grand list per capita of ten cities with a comparable population to Danbury. The towns are ordered by their respective populations from left to right and range in size from 60,770 in Meriden to 129,585 in New Haven as compared to Danbury which had 81,671 residents in 2011. Waterbury had the highest value of assessed property with $4,095 per capita followed by New Haven with $3,876 in 2011. The lowest grand list value could be found in Meriden with $1,282 of assessed property per resident followed by Greenwich with $1,555 in 2011. Danbury had $1,929 of assessed property per resident. The average across these eleven ______Western Connecticut Economic Development Alliance Comprehensive Economic Development Strategy Western Connecticut CEDS and Action Agenda Page 69 cities was $2,524 but was only $2,621 when Greenwich was excluded. The state of Connecticut had an average grand list per capita of $2,260 which sat significantly above the value of assessed property per capita in Danbury.

Figure 63: Total Debt Per Capita of Comparably Sized, 2011

$4,500

$4,000 $3,500 $3,000 $2,500 $2,000 $1,500 Total Debt Per Capita Debt Total Per $1,000 $500

Meriden

Norwalk

Hartford

Hamden

Danbury

Stamford

Waterbury

Greenwich

New New Haven New New Britain W. HartfordW.

Source: CT Office of Policy and Management, 2011

Figure 64: Debt per Capita and as a Percent of the Grand List, 2001-2011

3.5% $2,500

3.0% $2,000

2.5%

$1,500 2.0%

1.5% $1,000

1.0% Capita DebtPer

$500

0.5% Debt as a Percent of Grand ListPercent a Grand of Debt as

0.0% $-

2003 2001 2002 2004 2005 2006 2007 2008 2009 2010 2011

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Danbury WCEDA Connecticut Connecticut WCEDA Danbury Region Region

Source: CT Office of Policy and Management, 2011 ______Western Connecticut Economic Development Alliance Comprehensive Economic Development Strategy Western Connecticut CEDS and Action Agenda Page 70

Figure 64 shows that the ratio of debt to the grand list in Danbury was far below that of the WCEDA Region until 2008 and increased to the level seen in the State of Connecticut by 2011. Conversely, the WCEDA Region has experienced consistent decline in the ratio of debt to the grand list since 2002 until it grew slightly from 2010 through 2011. Danbury has experienced growth in total debt per capita since 2004, but still remains below both Connecticut and the WCEDA Region. Total debt per capita in the WCEDA Region has fluctuated between levels just above and below that of Connecticut as a whole. According to the data, municipal debt in the WCEDA Region and across Connecticut accumulated at a slower rate than the value of real property appreciated from 2001 through 2011.

The growth rate of debt per capita is an excellent indicator of how a given municipality or region has been affected by the Financial Crisis. In Figure 65 we see that the municipality of Sherman grew from $1,298 in 2008 to $3,480 in 2011 and had the highest growth rate of debt per capita in the Ten Town WCEDA Region with 168 percent growth. Debt per capita in the municipality of New Fairfield grew from $896 in 2008 to $2,364 in 2011 and had the second highest increase in the region with 164 percent growth. Four municipalities in the Ten Town WCEDA Region actually experienced significant declines in debt per capita from 2008 through 2011. Debt per capita declined by 39 percent in Bridgewater, 23 percent in Ridgefield, 16 percent in New Milford, and 2 percent in Brookfield. Debt per capita in the aggregate of the Ten Town WCEDA Region grew from $2,082 in 2008 to $2,310 in 2011 or 19 percent as compared to growth from $2,139 in 2008 to $2,246 in 2011 or five percent across Connecticut.

Figure 65: Growth Rate of Debt Per Capita by WCEDA Regional Municipality, 2008-2011

200%

150%

100%

50%

Growth of Debt of Per Capita Growth -50%

Bethel

Redding

Danbury

Sherman

Newtown

Ridgefield

Brookfield

New New Milford Bridgewater New New Fairfield

Source: CT Office of Policy and Management, 2011

______Western Connecticut Economic Development Alliance Comprehensive Economic Development Strategy Western Connecticut CEDS and Action Agenda Page 71 Distribution of Bond Ratings Figure 66 shows the number of municipalities in Connecticut by bond rating for 2011. One municipality in the WCEDA Region, Ridgefield, had a bond rating of Aaa, the highest rating possible, while all the other towns in the WCEDA Region had ratings of Aa1 or Aa2. The majority of the municipalities in the WCEDA Region and across the state of Connecticut saw an improvement in their bond rating since 2001 and actually experienced continued improvements through the Financial Crisis. The municipality of Bethel had a bond rating of A1 from 2001 through 2003 when it was increased to Aa3 before increasing again to Aa2 in 2010. Similarly, the municipality of New Fairfield had a bond rating of Aa3 from 2001 through 2006 when it was increased to Aa2 before being increased again in 2010 to Aa1. Danbury also saw an improvement in its bond rating from Aa3 in 2001 through 2010 when it was increased to Aa1. The lowest bond ratings across the region were in the municipalities of Bethel and Sherman with grades of Aa2. The highest bond rating was in Ridgefield with Aaa.

Figure 66: Distribution of Bond Ratings in Connecticut by Municipality, 2011

Number of Municipalities of Number 10

0 Aaa Aa1 Aa2 Aa3 A1 A2 A3 Baa1 Baa2 Baa3 None

Source: CT Office of Policy and Management, 2011

The overall trend of improvement in municipal bond ratings across the WCEDA Region is similar to that seen across the state. However, the bond ratings in the WCEDA Region were much higher than the state average with nearly 70 percent of towns having a bond rating of Aa1 or above in 2011 as compared to only 20 percent across the state of Connecticut.

______Western Connecticut Economic Development Alliance Comprehensive Economic Development Strategy Western Connecticut CEDS and Action Agenda Page 72 Economic Analysis Economic Analysis Key Findings

 The WCEDA Region employment was greatly affected by the Financial Crisis of 2008 and the subsequent recession. However, the WCEDA Region fared relatively better than Connecticut and the Four County WCEDA Region Commuter Shed (Dutchess County and Putnam County, NY; Fairfield County and Litchfield County, CT) and is continuing to steadily improve economically. Furthermore, industries that are strengths, in terms of employment growth, in the WCEDA Region include the Healthcare and Social Assistance, and the Retail Trade sectors.

 Eight of the ten highest location quotient industries (or industries with high relative employment concentrations) were from the manufacturing super-sector. The ten-town WCEDA Region has a strong competitive advantage in the manufacturing sector. Traditional forms of manufacturing have declined both in the WCEDA Region and across the state. There is a need to transfer the accumulated physical and human capital towards a focus on new, high technology forms of manufacturing by building on existing competitive advantages.

 The Financial Activities sector,23 which consists of five of the ten most highly concentrated industries in the WCEDA Commuter Shed Region. However, the financial activities sector has its strongest presence in lower Fairfield County and not in the WCEDA Region. This indicates that many of the residents work in these industries but commute outside the WCEDA Region to other communities in the Commuter Shed. The financial activities sector represents an emerging opportunity for the WCEDA Region to transfer existing accumulations of human capital from industrial activity by trying to relocate firms from these locations or create startups and new branches in the WCEDA Region because of the high proportion of skilled workers already living in the WCEDA Region.

 Three of the ten largest industries were from the Healthcare and Social Assistance sector24 and another three were from the Education and Government sectors. These were the same industries seen previously and provide further evidence that the Four County WCEDA Commuter Shed has similar cornerstone industries as the Ten Town WCEDA Region. These industries are widely considered to be growth sectors and are the foundations of sustainable economic development.

 The highest proportion of employment in the Education and Government sectors was found to be in the public elementary and secondary schools sector (NAICS 903611) with 6.8 percent of total employment or 5,774 jobs. This industry was one of the largest employers in the Ten Town WCEDA Region in 2012. The public elementary and secondary schools sector experienced a decline of 5.2 percent or 318 jobs from 2008-2012 and is projected to gain only 0.1 percent or 8 jobs from 2012-16. The location quotient for this industry was an elevated 1.3 indicating that the Ten Town WCEDA Region likely employed more educators per pupil than the comparison regions of the state and the nation.

23 The Financial Activities sector is comprised of NAICS sub-industries from the NAICS two digit industries of 51, Information, 52 Finance and Insurance, and 53 Real Estate and Rental and Leasing. 24 This sector comprises establishments primarily engaged in providing health care by diagnosis and treatment, providing residential care for medical and social reasons, and providing social assistance, such as counseling, welfare, child protection, community housing and food services, vocational rehabilitation and child care, to those requiring such assistance. ______Western Connecticut Economic Development Alliance Comprehensive Economic Development Strategy Western Connecticut CEDS and Action Agenda Page 73

General Economic Profile This section details general economic conditions in the WCEDA Region over the time period from 2001 to 2011, and in addition compares economic conditions in the WCEDA Region to that of Connecticut and the Four County WCEDA Commuter Shed Region, which is comprised of Putnam and Dutchess Counties in New York State; and Fairfield and Litchfield Counties in Connecticut. This region was chosen because of potential economic synergies and similarities with the WCEDA Region.

Figure 67 shows the industry composition of the WCEDA Region by employment in 2011 and compares it to the identified comparative regions. The largest industry employers in the WCEDA Region are Health Care and Social Assistance, Government, Retail Trade, Manufacturing; and Food Accommodations and Services.

Figure 67: WCEDA Region Industry Employment and Shares, 201125

County WCEDA County WCEDA WCEDA NAICS Industry WCEDA(Abs.) Region(Abs.) CT (Abs.) (%) Region (%) CT (%)

Agriculture, Forestry, Fishing 3,674 79 5,019 0.40% 0.10% 0.31%

Mining& Gas Extraction 1,289 * 542 0.14% 0.00% 0.03%

Utilities 3,274 * 6,184 0.36% 0.00% 0.38%

Construction 45,246 3,196 51,493 4.98% 3.97% 3.19%

Wholesale Trade 24,570 2,936 63,470 2.70% 3.65% 3.94%

Information 17,967 1,435 31,386 1.98% 1.78% 1.95%

Finance and Insurance 94,060 2,840 114,561 10.34% 3.53% 7.11%

Real Estate, Rental &Leasing 56,073 676 18,691 6.17% 0.84% 1.16%

Professional & Scientific Svcs 74,066 3,727 87,831 8.14% 4.64% 5.45%

Management of Companies 17,026 1,861 28,633 1.87% 2.31% 1.78%

Administrative & Waste Svcs 51,194 3,317 80,720 5.63% 4.13% 5.01%

Educational Services (Private) 34,659 911 54,719 3.81% 1.13% 3.39%

Health Care & Social Assistance 109,831 13,615 250,783 12.08% 16.93% 15.56%

Arts, Entertainment & Rec 26,857 1,227 23,903 2.95% 1.53% 1.48%

Accommodation & Food Svcs 46,975 6,343 113,309 5.17% 7.89% 7.03%

Other Services 50,135 3,220 57,227 5.51% 4.00% 3.55%

Government 83,477 11,641 237,495 9.18% 14.48% 14.73%

Manufacturing 61,461 9,095 166,279 6.76% 11.31% 10.31%

Retail Trade 89,427 13,385 180,203 9.83% 16.65% 11.18%

Transportation and Warehousing 18,157 900 39,640 2.00% 1.12% 2.46%

Total 909,418 80,402 1,612,088 100.00% 100.00% 100.00%

Source: Connecticut Department of Labor

Figure 68 shows the percent of annual average employment growth in the WCEDA Region by year. Annual average employment growth in all three regions followed similar patterns of growth

25 County WCEDA title in figure represents a summation of data from: Fairfield County, CT; Litchfield County, CT; Putnam County, NY; Dutchess County, NY. In the Appendix B, there is a detailed list of employment by municipality in the WCEDA Region. ______Western Connecticut Economic Development Alliance Comprehensive Economic Development Strategy Western Connecticut CEDS and Action Agenda Page 74 until the U.S. Financial Crisis in 2008 and the subsequent recession. After 2009, employment growth by region diverged drastically. Employment growth during the recession was especially poor in the Four County WCEDA Commuter Shed Region. Decreases in employment growth were less dramatic in the WCEDA Region and in Connecticut. However, in contrast, employment growth, after the recession, rebounded significantly in the Four County WCEDA Commuter Shed Region, and employment growth in the WCEDA Region and Connecticut increased at a slower rate. The county driving most of the employment changes in the Four County WCEDA Commuter Shed Region during the recession and in the recovery was Fairfield County. This graph provides indication that employment growth in the WCEDA Region and Connecticut is less volatile than the Four County Region.

Figure 68: WCEDA Region Annual Average Employment Growth, 2001-2011

12% 10% 8% 6%

4% 2% 0%

Percent -2% -4% -6% -8%

-10%

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

WCEDA Region Four County WCEDA Commuter Shed Connecticut

Sources: Connecticut Department of Labor, New York Department of Labor

Figure 69 displays the unemployment rates of each comparative region. All three regions follow a similar slope pattern; however, it is important to emphasize that the WCEDA Region sustained a lower unemployment rate in comparison to the other regions. The unemployment rate in the WCEDA Region never reached 8%, yet in Connecticut as well as the United States, the unemployment rate surpassed the 9% level. This suggests that the WCEDA industry was more insulated against business cycle effects or has significant structural differences in comparison to the other regions.

______Western Connecticut Economic Development Alliance Comprehensive Economic Development Strategy Western Connecticut CEDS and Action Agenda Page 75 Figure 69: WCEDA Region Unemployment Rate, 2005-201126

10%

5% Unemployment Rate Unemployment 4%

3% 2005 2006 2007 2008 2009 2010 2011 WCEDA Region Four County WCEDA Commuter Shed Connecticut

Sources: Connecticut Department of Labor, New York Department of Labor

Figure 70 details labor force growth in the WCEDARegion.Labor force growth in the WCEDA Region has been consistently positive, with the exception of 2009 during the recession. In 2011, the WCEDA Region, in comparison to the Four County WCEDA Commuter Shed Region and Connecticut, was the only region with positive labor force growth. This indicates that persons looking for work in the WCEDA Region had more confidence in the WCEDA market; and consequently entered the labor force to search for work.

Figure 70: WCEDA Region Labor Force Growth, 2006-2011

2.0%

1.5%

1.0%

0.5%

Percent Growth Percent 0.0% 2006 2007 2008 2009 2010 2011

-0.5%

WCEDA Region Four County WCEDA Commuter Shed Connecticut -1.0%

Sources: Connecticut Department of Labor, New York Department of Labor

26 In Appendix B, there is a list of unemployment rates by municipality in the WCEDA Region. ______Western Connecticut Economic Development Alliance Comprehensive Economic Development Strategy Western Connecticut CEDS and Action Agenda Page 76 The next set of figures show employment patterns by select two digit NAICS industry sectors in the WCEDA Region. The selected industries were chosen because they represent large concentrations of employment in the WCEDA Region, and because they are industries that are traditionally more susceptible to macro-business cycles effects.

Figure 71 displays employment in construction. This figure indexes employment to the 2001 level, therefore anything measuring below 100 means employment fell below the 2001 level. Construction is typically an industry that is more affected by business cycles than other sectors. In the figure, it is clear that construction employment trends in all three regions were very similar. Construction employment in the WCEDA Region, however, fared slightly better than that of Connecticut and the Four County WCEDA Commuter Shed Region. This finding indicates that the WCEDA Region housing market was relatively less susceptible to the overall housing downturn.

Figure 71: WCEDA Region Annual Average Construction Employment, 2001-2011

120

110

100

Year: 2001 Year: 80

Constricution Employment, Index Index Employment, Constricution 60 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

WCEDA Region Four County WCEDA Commuter Shed Connecticut

Sources: Connecticut Department of Labor, New York Department of Labor

Figure 72 shows employment trends in the Retail Trade sector. As displayed in the figure between 2001 and 2011, over this time period, retail trade employment in the WCEDA Region performed much better than the Four County WCEDA Commuter Shed Region and Connecticut. Throughout this time period, retail trade growth was relatively flat to negative in the Four County Commuter Shed Region and Connecticut, while in the WCEDA Region there was significant growth in the early 2000s. It is also important to emphasize that after the recession, retail trade employment growth increased at a faster rate than that of the Four County WCEDA Commuter Shed Region and Connecticut. This figure suggests that the WCEDA Region has a relative strength in the Retail Trade sector and has the capability of not only attracting consumers from the WCEDA Region, but also consumers who live in nearby regions as well.

______Western Connecticut Economic Development Alliance Comprehensive Economic Development Strategy Western Connecticut CEDS and Action Agenda Page 77 Figure 72: WCEDA Region Annual Average Retail Trade Employment, 2001-2011

110

105

100

95 2001

85 Retail Trade Employment, Index Year Index Employment, Trade Retail 80 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

WCEDA Region Four County WCEDA Commuter Shed Connecticut

Sources: Connecticut Department of Labor; New York Department of Labor

Figure 73 details annual average manufacturing employment growth in the WCEDA Region and comparative regions. Overall, employment in manufacturing has been steadily decreasing in all three regions. However, the decline in manufacturing in the WCEDA Region was more significant. Manufacturing in the WCEDA Region declined the most during the period from 2002 to 2004, while the decline in the other regions is much less dramatic. This suggests that the manufacturing sector in the WCEDA Region experienced a significant structural change during that time period that it was never able to recover from.

Figure 73: WCEDA Region Annual Average Manufacturing Employment, 2001-2011

105 100

95 90 85 80 75

Index Year 2001Year Index 70

65 Manufacturing Employment, Employment, Manufacturing 60 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 WCEDA Region Four County WCEDA Commuter Shed Connecticut

Sources: Connecticut Department of Labor, New York Department of Labor

Figure 74 shows employment trends in the Finance and Insurance sector. Out of all the regions, the Four County WCEDA Commuter Shed Region performed the best over this time period, mainly

______Western Connecticut Economic Development Alliance Comprehensive Economic Development Strategy Western Connecticut CEDS and Action Agenda Page 78 due to the relatively high concentration of employment in this sector in Fairfield County. Employment in the WCEDA Region has been declining since approximately 2005 and declined more significantly after the Financial Crisis.

Figure 74: WCEDA Region Annual Average Finance and Insurance Employment, 2001-2011

115

110

105

100

90 Finance and Insurance and Finance

85 Employment, Index Year 2001Year Index Employment, 80 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 WCEDA Region Four County WCEDA Commuter Shed Connecticut

Sources: Connecticut Department of Labor; New York Department of Labor

Figure 75 details employment in the Healthcare and Social Assistance sector. Employment growth in Healthcare and Social Assistance has consistently increased in all three regions, most notably, however, in the WCEDA Region. After 2007, growth in this sector significantly increased relative to the other regions. This trend is no surprise as the WCEDA Region has a relatively older population in comparison to the state and to other regions. This suggests that demand for healthcare has increased and will increase as time progresses; Healthcare and Social Assistance will most likely continue to be relatively concentrated in the region due to the convenience of proximity to services. Consequently, Healthcare and Social Assistance can be considered a relative strength for the WCEDA Region.

______Western Connecticut Economic Development Alliance Comprehensive Economic Development Strategy Western Connecticut CEDS and Action Agenda Page 79 Figure 75: WCEDA Region Annual Average Healthcare and Social Assistance Employment, 2001-2011

130 125 120 115

110 105 100

95 Year: 2001 Year: 90

85 Healthcare and Social and Healthcare 80

Assistance Employment, Index Index Employment, Assistance 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 WCEDA Region Four County WCEDA Commuter Shed Connecticut

Sources: Connecticut Department of Labor; New York Department of Labor

Industry Segmentation This section examines the economic data for the municipalities that make up the WCEDA Region. Using proprietary data from Economic Modeling Specialists International, CERC analyzed the WCEDA Region using two geographic regions. The two distinct geographic areas used in this analysis were constructed from the four surrounding counties – Putnam and Dutchess counties in New York State; and Litchfield and Fairfield counties in Connecticut – to create a regional commuter shed (referred to as the Four County WCEDA Commuter Shed Region) as well as the zip codes contained in the WCEDA Region planning area (referred to as the ten-town WCEDA Region). These consolidated geographic areas are useful when making comparisons to the state and across the nation. The economic data provides insight into the industry composition, skill base, and competitive advantages in the WCEDA Region.

Figure 76 shows the top five industry sectors for the ten Connecticut municipalities in the WCEDA Region and then the four counties that comprise the larger region. As can be seen in the figure, the ten townWCEDA Region towns have a higher concentration in Trade, Transportation, and Utilities and Manufacturing (9.7 percent in the four county WCEDA commuter shed) compared to the four county WCEDA Commuter Shed Region. Additionally, while Finance and Information make up ten percent of total employment in the the Four County WCEDACommuter Shed, this sector only represented 6.4 percent of employment in the Ten Town WCEDA Region.

______Western Connecticut Economic Development Alliance Comprehensive Economic Development Strategy Western Connecticut CEDS and Action Agenda Page 80

Figure 76: Top Five Industries of the Ten Town and Four County WCEDA Region, 2012

Ten Town WCEDA Region Four County WCEDA Commuter Shed Region

21% 24% 26% 17%

18% 11% 16% 10%

13% 12% 13% 13%

Trade, Transportation, and Utilities Trade, Transportation, and Utilities Education and Health Services Education and Health Services Professional and Business Services Professional and Business Services Manufacturing Government Government Finance and Information All Other All Other

Source: Economic Modeling Specialists International, 2013

Industry Concentrations by Location Quotients This section analyzes the industries that are concentrated in the area using location quotients as a measure. A location quotient is the most commonly used technique to compare the industrial or occupational composition of two distinct geographic areas. A location quotient is calculated by taking the proportion of employment in a given industry or occupation for the geographic area of interest (in this case, the WCEDA Region) and dividing it by the proportion for the same industry in a base geography (e.g., another region, the state or nation). In this analysis, the numerator used was the aggregate employment of each 6-digit NAICS industry and 5-digit SOC27 occupation in the Ten Town WCEDA Region, Four County WCEDA Commuter Shed, and Connecticut. The denominator in each of the location quotients was the United States.

A location quotient that is greater than one means the region has a higher concentration in that particular industry than the comparison geographic area – in this case, the United States. A location quotient of one means the proportion of the industry that is in the region is exactly equal to the proportion of the industry in the United States. A location quotient of less than one indicates the industry is not a strength for the region and proportionally lower than that of the United States.

Figure 77 displays the values of the ten highest location quotient industries in the Ten Town WCEDA Region, which ranged from 14.2 to 283.8 indicating that these industries have a uniquely high concentration of the employment in the region. Eight of the ten highest location quotient

27 The North American Industry Classification System (NAICS) is the standard used by Federal statistical agencies in classifying business establishments. The Standard Occupational Classification (SOC) is used by Federal statistical agencies to classify workers into occupational categories. ______Western Connecticut Economic Development Alliance Comprehensive Economic Development Strategy Western Connecticut CEDS and Action Agenda Page 81 industries were from the manufacturing sector. The highest location quotient was found to be in the Office Machinery manufacturing industry (NAICS 333313) with a location quotient of 283.8 and a large proportion of overall employment with1,285 jobs in 2012.

Figure 77: Highest Location Quotient Industries in the Ten Town WCEDA Region, 2012

300

250

200

150

100 Location Quotient Location

Metal

Sewage

Dealers

Facilities

Office

Treatment

Electric

Organic

Heating Oil Heating

Nonferrous

Chemical Handtool

Machinery

Irradiation

Ball Bearing Ball

Housewares

Miscellaneous

Manufacturing Manufacturing Manufacturing Manufacturing Manufacturing Manufacturing Manufacturing

Source: Economic Modeling Specialists International, 2013

This Office Machinery manufacturing industry, however, experienced a 40.4 percent decline in employment or 871 jobs from 2008-12 and is projected to lose another 52.1 percent or 669 jobs from 2012-16. Employment in the region for this industry constituted nearly 81.6 percent of Connecticut’s employment in this industry indicating this region is a hub for this industry in the state. Employment in the Office Machinery manufacturing declined by 920 in Connecticut from 2008-12 and is projected to decline by 727 from 2012-16 indicating that the region is the source of the majority of the overall decline in this sector for Connecticut. . Four of the other seven manufacturing industries experienced employment declines as well, but at a substantially more modest pace between 2008-12. The average annual earnings per worker for the eight manufacturing industries with a location quotient greater than one were $114,504 in the Ten Town WCEDA Region during 2013.

The values of the ten highest location quotient industries in the Four County WCEDA Commuter Shed Region are shown in Figure 78. The values of these location quotients for these industries range from 9.2 to 44 indicating that these industries have a uniquely high concentration of employment in the region. Four of the ten highest location quotient industries were involved in manufacturing while another five industries were from the financial activities sector indicating that the Four County WCEDA Commuter Shed had a distinctly different employment composition than the Ten Town WCEDA Region.

______Western Connecticut Economic Development Alliance Comprehensive Economic Development Strategy Western Connecticut CEDS and Action Agenda Page 82

Figure 78: High Location Quotient Industries in Four County WCEDA Commuter Shed, 2012

50 45 40

35 30 25 20 15

Location Quotient Location 10 5

Sales

Dealers

Financing

Carriers

Office

Contracts Contracts

Portfolio

Brokerage

Electric

Heating Oil Heating

Commodity Commodity

Handbag

Reinsurance

Machinery

r Machinery r

Management

Housewares

Semiconducto

Manufacturing Manufacturing Manufacturing

Source: Economic Modeling Specialists International, 2013

However, the highest location quotient was again found to be in the Office Machinery manufacturing industry (NAICS 333313). The location quotient is 44 when looking at the Four County WCEDA Commuter Shed Region but lower than when just looking at the Ten Town WCEDA Region, indicating this industry is concentrated in the Ten Town WCEDA Region. The highest location quotient of the industries from the financial activities sector was found in the commodity contracts dealing industry (NAICS 523130) with a value of 17.4 and 1,078 jobs based wholly outside of the ten town WCEDA region.

The commodity contracts dealing industry experienced growth of 156.7 percent or 658 jobs from 2008-12 and is projected to gain an additional 29.1 percent or 314 jobs from 2012-16. Employment in this industry within the region’s commuter shed constituted nearly 96 percent of Connecticut’s employment in this industry. Employment for the commodity contracts dealing industry across the state has largely been driven by fluctuations within the commuter trend and the region’s commuter shed is projected to continue driving state growth in this industry. Two of the remaining four financial activities industries (Reinsurance Carriers and Sales Financing) experienced employment declines while the remaining two (Portfolio Management and Commodity Contracts Brokerage) experienced modest growth between 2008-12. In the Ten Town WCEDA Region in 2013, the average annual earnings per worker for the four manufacturing industries were $139,989, as compared to average earnings of $379,629 per worker in the five Financial Activity industries in the Four County WCEDA Commuter Shed.

Employment by Industry: Ten Town WCEDA Region Figure 79 shows the ten industries with the largest proportion of employment in the Ten Town WCEDA Region. As shown in the figure the proportions of employment that were concentrated in each of the industries ranged from 1.6 percent (discount department stores) to 6.8 percent

______Western Connecticut Economic Development Alliance Comprehensive Economic Development Strategy Western Connecticut CEDS and Action Agenda Page 83 (public primary schools) and constituted an aggregate 30.6 percent of overall employment in 2012.

Three of the ten largest industries were from the Healthcare and Social Assistance sector while two were from the Education and Government sector indicating that the region depends heavily on these sectors. The highest proportion of employment in the Education and Government sector was found to be in the Public Elementary and Secondary Schools industry (NAICS 903611) with 6.8 percent share of employment or 5,774 jobs. The highest proportion of employment in the Healthcare and Social Assistance sector, on the other hand, was found in the Private General Medical and Surgical Hospitals industry (NAICS 622110) with 2,848 or 3.3 percent of employment in the region in 2012.

Figure 79: Largest Employment Industries in the Ten Town WCEDA Region, 2012

8% 7% 6%

5% 4%

Percent 3% 2% 1%

Full-Service

Restaurants

Stores

Grocery Stores Grocery

Medical Hospitals Medical

Corporate Offices Corporate

Local Government Local

Offices of Physicians Offices

Discount Department Discount

Nursing Care Facilities Care Nursing Aircraft Manufacturing Aircraft Public Primary Schools Primary Public

Source: Economic Modeling Specialists International, 2013

The Public Elementary and Secondary Schools industry experienced a decline of 5.2 percent or 318 jobs from 2008-12 and is projected to gain only 0.1 percent or 8 jobs between 2012-16. The location quotient for this industry was 1.3 indicating that the Ten Town WCEDA Region has a higher concentration of jobs when compared to the United States. Employment declined by 2.8 percent or 2,573 jobs in Connecticut between 2008-12 and is projected to grow by only 0.8 percent or 524 jobs between 2012-16. The average annual earnings in the Public Elementary and Secondary Schools industry were $78,206 as compared to $71,362 in the state in 2013. The private General Medical and Surgical Hospitals industry experienced a decline of 3.2 percent or 95 jobs from 2008-12 and is projected to gain 4.2 percent or 121 jobs between 2012-16. The location quotient of one for this industry indicated that the Ten Town WCEDA Region had an identical proportion of employment as the United States. Employment grew by 3.4 percent or 1,945 jobs in Connecticut between 2008-12 and is projected to grow by 7 percent or 4,148 jobs between 2012-16.

As previously discussed, historic and projected employment growth in the private General Medical and Surgical Hospitals industry within the Ten Town WCEDA region was found to be significantly slower than the four county WCEDA commuter shed, the state, and across the United States. It is ______Western Connecticut Economic Development Alliance Comprehensive Economic Development Strategy Western Connecticut CEDS and Action Agenda Page 84 very clear that the slower projected growth in this industry is enough to maintain comparable proportion of overall employment as that seen in the other regions. The average annual earnings per worker in the private General Medical and Surgical Hospitals industry were $82,187 in the Ten Town WCEDA Region as compared to $77,073 in the state in 2013.

Employment by Industry: Four County WCEDA Commuter Shed

Figure 80 shows the ten industries with the largest proportion of employment in the Four County WCEDA Commuter Shed Region. Employment ranged from 1.4 percent to 6.2 percent and constituted an aggregate 29.1 percent of overall employment in 2012. Three of the ten largest industries were from the Healthcare and Social assistance sector and another three were from the Education and Government Sector. These were the same industries seen previously and provide further evidence that the Four County WCEDA Commuter Shed has similar cornerstone industries as the Ten Town WCEDA Region.

The highest proportion of employment in the Education and Government sector was again found to be in the Public Elementary and Secondary Schools industry (NAICS 903611) with 6.2 percent of employment or 37,381 jobs. The highest proportion of employment in the Healthcare and Social Assistance sector was also again found in the private General Medical and Surgical Hospitals industry (NAICS 622110) with 19,703 or 3.3 percent of employment in the region in 2012.

Figure 80: Largest Employment Industries in the Four County WCEDA Commuter Shed Region, 2012

3% Percent 2%

Public

Stores

Schools

Primary

Grocery

Medical

Offices

Local State

Hospitals

Service

Offices ofOffices

Corporate

Limited-

Physicians

Facilities

Full-Service

Restaurants Restaurants

Government Government Nursing CareNursing

Source: Economic Modeling Specialists International, 2013

The Public Elementary and Secondary Schools industry experienced a decline of 5 percent or 1,957 jobs from 2008-12 and is projected to decline by only 0.8 percent or 304 jobs from 2012- 16. The location quotient for this industry was 1.16, again closely mirroring the United States. The average annual earnings in the Public Elementary and Secondary Schools industry were $79,658 as compared to $71,362 in the state in 2013.

______Western Connecticut Economic Development Alliance Comprehensive Economic Development Strategy Western Connecticut CEDS and Action Agenda Page 85 The private General Medical and Surgical Hospitals industry experienced a decline of 1.3 percent or 251 jobs between2008-12 and is projected to gain 5.4 percent or 1,062 jobs between 2012-16. The location quotient for this industry was similar to that seen in the Ten Town WCEDA Region and indicated that the commuter shed had a similar proportion compared to employment across the United States. Employment grew by 3.4 percent or 1,945 jobs in Connecticut between 2008- 12 and is projected to grow by 7 percent or 4,148 jobs between 2012-16. The average annual earnings in the private General Medical and Surgical Hospitals industry were $79,658 in the Four County Commuter Shed Region as compared to $77,073 in the state in 2013.

Net Employment Growth 2008-2012: Ten Town WCEDA Region Figure 81 shows the ten industries in the Ten Town WCEDA Region with the largest net employment growth between 2008-12, ranging from 112 jobs to 365 jobs. These ten industries gained an aggregate 2,037 jobs while the overall economy in the Ten Town WCEDA Region lost an aggregate 3,789 jobs between 2008-12.

Three of the ten largest industries were from the Accommodation and Food Services, two were from Retail Trade, and another two were from the Healthcare and Social Assistance sector. The largest net growth in employment from the Accommodation and Food Services sector was found to be in the Full-service Restaurant industry (NAICS 722110) with 333 jobs or 10.7 percent growth between 2008-12. The largest net growth in employment from the Retail Trade sector, on the other hand, was found in the Discount Department Store industry (NAICS 452112) with 258 jobs or 24 percent growth between 2008-12. The largest net growth in employment from the Healthcare and Social Assistance sector was found in the Continuing Care Retirement Communities industry (NAICS 623311) with 230 jobs or 72.6 percent growth between 2008-12.

Figure 81: High Growth Industries in the Ten Town WCEDA Region, 2008-1228

Irradiation Manufacturing Full-Service Restaurants Discount Department Stores

Continuing Care Communities Grocery Stores Limited-Service Restaurants

Industries Services for the Elderly Janitorial Services Nonalcoholic Beverage Bars Corporate Offices

0 50 100 150 200 250 300 350 400

Source: Economic Modeling Specialists International, 2013

28Irradiation Manufacturing: this U.S. industry comprises establishments primarily engaged in manufacturing irradiation apparatus and tubes for applications, such as medical diagnostic, medical therapeutic, industrial, research and scientific evaluation. Irradiation can take the form of beta-rays, gamma-rays, X-rays, or other ionizing radiation. Nonalcoholic Beverage Bars: serving nonalcoholic beverages, such as coffee, juices, or sodas for consumption on or near the premises. ______Western Connecticut Economic Development Alliance Comprehensive Economic Development Strategy Western Connecticut CEDS and Action Agenda Page 86 The Full-service Restaurant industry constituted 4 percent of employment in the Ten Town WCEDA Region and had a location quotient of 1.1 in 2012. Employment in this industry was expected to increase by an additional 209 jobs or 9 percent between 2012-16. Employment grew by 4 percent or 2,037 jobs in Connecticut between 2008-12 and is projected to grow by only 6.4 percent or 3,407 jobs between 2012-16. The average annual earnings in the Full-service Restaurant industry were $25,676 as compared to $22,140 in the state in 2013.

The Discount Department Store industry constituted 1.6 percent of employment in the Ten Town WCEDA Region and had a location quotient of 2.1 in 2012. Employment in this industry was expected to increase by an additional 132 jobs or 9.9 percent between 2012-16. Employment grew by 19 percent or 2,443 jobs in Connecticut between 2008-12 and is projected to grow by only 5.5 percent or 841 jobs between 2012-16. The average annual earnings in the Discount Department store industry were $25,016 as compared to $24,403 in the state in 2013.

The Continuing Care Retirement Communities industry constituted 0.6 percent of employment in the Ten Town WCEDA Region and had a location quotient of 2 in 2012. Employment in this industry was expected to increase by an additional 154 jobs or 28.2 percent between 2012-16. Employment grew by 9.8 percent or 350 jobs in Connecticut between 2008-12 and is projected to grow by 15.6 percent or 612 jobs between 2012-16. The average annual earnings in the Continuing Care Retirement Communities industry were $36,349 as compared to $35,839 in the state in 2013.

Net Employment Growth 2008-2012: Four County WCEDA Commuter Shed Figure 82 displays the ten industries in the Four County WCEDA Commuter Shed Region with the largest net employment growth between 2008-12, ranging from 658 jobs to 1,708 jobs. These ten industries gained an aggregate 10,037 jobs while the overall economy in Four County WCEDA Commuter Shed Region lost an aggregate 21,917 jobs between 2008-12.

Three of the ten largest industries were from the Healthcare and Social Assistance sector, two were from Retail Trade, and another two were from the Accommodation and Food Services sector. The largest net growth in employment from the Healthcare and Social Assistance sector was found to be in the Offices of Physicians industry (NAICS 621111) with 1,055 jobs or 8.1 percent growth between 2008-12. The largest net growth in employment from the Retail Trade sector was found again in the Discount Department Store industry (NAICS 452112) with 1,107 jobs or 26.4 percent growth between 2008-12. The largest net growth in employment from the Accommodation and Food Services sector was found again in the Full-service Restaurant industry (NAICS 722110) with 1,708 jobs or 9 percent growth between 2008-12.

______Western Connecticut Economic Development Alliance Comprehensive Economic Development Strategy Western Connecticut CEDS and Action Agenda Page 87 Figure 82: High Growth Industries in the Four County WCEDA Commuter Shed Region, 2008-12

Full-Service Restaurants

Limited-Service Restaurants

Discount Department Stores

Video Production

Offices of Physicians

Services for the Elderly

Industries Corporate Offices

Residential Facilities

Grocery Stores

Commodity Contracts

0 200 400 600 800 1,000 1,200 1,400 1,600 1,800

Source: Economic Modeling Specialists International, 2013

The Offices of Physicians industry constituted 2.3 percent of employment in the Four County WCEDA Commuter Shed Region and had a location quotient of 1.3 in 2012. Employment in this industry was expected to increase by an additional 1,704 jobs or 12.1 percent between 2012-16. Employment grew by 4.7 percent or 1,401 jobs in Connecticut between 2008-12 and is projected to grow by 11 percent or 3,437 jobs between 2012-16. The average annual earnings per worker in the Offices of Physicians industry were $108,005 as compared to $105,579 in the state in 2013.

The Discount Department Store industry constituted 0.9 percent of employment in the Four County WCEDA Commuter Shed Region and had a location quotient of 1.2 in 2012. Employment in this industry was expected to increase by an additional 583 jobs or 11 percent between 2012- 16. Employment grew by 26.4 percent or 1,107 jobs in Connecticut from 2008-12 and is projected to grow by only 11 percent or 583 jobs between 2012-16. The average annual earnings in the Discount Department Store industry were $23,925 as compared to $24,403 in the state in 2013.

______Western Connecticut Economic Development Alliance Comprehensive Economic Development Strategy Western Connecticut CEDS and Action Agenda Page 88 Net Employment Growth 2012-2016: Ten Town WCEDA Region Figure 83 shows the ten industries with the largest projected net employment growth between 2012-16 in the Ten Town WCEDA Region with values ranging from 121 jobs to 309 jobs. These ten industries were expected to gain an aggregate 1,719 jobs while the overall economy in the Ten Town WCEDA region is expected to gain an aggregate 785 jobs between2012-16.

Two of the largest projected net growth industries were from Accommodation and Food Services, two were from Retail Trade, and three were from the Healthcare and Social Assistance sector. The largest projected net growth in employment from the Accommodation and Food Services sector is expected to be in the Full-service Restaurant industry (NAICS 722110) with 309 jobs or 9 percent growth from 2012-16. The largest net growth in employment from the Retail Trade sector, on the other hand, is expected to be in the Supermarkets and Other Grocery Store industry (NAICS 445110) with 248 jobs or 8.4 percent growth between 2012-16. The largest net growth in employment from the Healthcare and Social Assistance sector is projected to be in the Offices of Physicians industry (NAICS 621111) with 231 jobs or 10.7 percent growth between 2012-16.

Figure 83: High Growth Industries in the Ten Town WCEDA Region, 2012-16

Full-Service Restaurants Grocery Stores Offices of Physicians

Continuing Care Communities Limited-Service Restaurants Discount Department Stores

Industries Services for the Elderly Credit Card Issuing Irradiation Manufacturing Medical Hospitals

0 50 100 150 200 250 300 350

Source: Economic Modeling Specialists International, 2013

The Full-service Restaurant industry constituted four percent of employment in the Ten Town WCEDA region and had a location quotient of 1.1 in 2012. Employment in this industry increased by 108 jobs or 5.3 percent between 2008-12. Employment grew by 4 percent or 2,037 jobs in Connecticut and is projected to grow by only 6.4 percent or 3,407 jobs between 2012-16. The average annual earnings in the Full-service Restaurant industry were $25,676 as compared to $22,140 in the state in 2013.

The Supermarkets and Other Grocery Store industry constituted 3.4 percent of employment in the Ten Town WCEDA Region and had a location quotient of 1.9 in 2012. Employment in this industry increased by 204 jobs or 7.5 percent between 2008-12. Employment grew by 2.9 percent or 1,027 jobs in Connecticut between 2008-12 and is projected to grow by only 4.6 percent or 1,668 jobs between 2012-16. The average annual earnings in the Supermarkets and Other Grocery Store industry were $34,110 as compared to $31,046 in the state in 2013. ______Western Connecticut Economic Development Alliance Comprehensive Economic Development Strategy Western Connecticut CEDS and Action Agenda Page 89 The Offices of Physicians industry constituted 2.5 percent of employment in the Ten Town WCEDA Region and had a location quotient of 1.4 in 2012. Employment increased by 108 jobs or 5.3 percent between 2008-12. Employment grew by 4.7 percent or 1,401 jobs in Connecticut between 2008-12 and is projected to grow by 10.7 percent or 3,437 jobs between 2012-16. The average annual earnings in the Supermarkets and Other Offices of Physicians industry were $106,116 as compared to $105,579 in the state in 2013.

Net Employment Growth, 2012-2016: Four County WCEDA Commuter Shed The ten industries with the largest projected net employment growth between 2012-16 in the Four County WCEDA Commuter Shed ranged from 724 jobs to 1,764 jobs (Figure 84). These ten industries were expected to gain an aggregate 12,107 jobs while the overall economy in the four county WCEDA Commuter Shed Region is expected to gain an aggregate 16,245 jobs between 2012-16. Two of the largest projected net growth industries were from Accommodation and Food Services, two were from Educational Services, and three were from the Healthcare and Social Assistance sector. The largest projected net growth in employment from the Accommodation and Food Services sector is expected to again be in the Full-service Restaurant industry (NAICS 722110) with 1,764 jobs or 8.5 percent growth between 2012-16. The largest net growth in employment from the Educational Services, on the other hand, is expected to occur in the Private Colleges, Universities, and Professional School industry (NAICS 611310) with 1,669 jobs or 22.6 percent growth between 2012-16. The largest net growth in employment from the Healthcare and Social Assistance sector is again projected to be in the Offices of Physicians industry (NAICS 621111) with 1,704 jobs or 12.1 percent growth between 2012-16.

Figure 84: High Growth Industries in the Four County WCEDA Commuter Shed, 2012-16

Full-Service Restaurants

Offices of Physicians

Universities and Colleges

Portfolio Management

Limited-Service Restaurants

Medical Hospitals Industries Services for the Elderly

Grocery Stores

Landscaping Services

Private Primary Schools

0 200 400 600 800 1,000 1,200 1,400 1,600 1,800 2,000

Source: Economic Modeling Specialists International, 2013

The Full-service Restaurant industry constituted 3.4 percent of employment in the Four County WCEDA Commuter Shed Region and had a location quotient of 1 in 2012. Employment in this industry increased by 1,708 jobs or 9 percent between 2008-12. Employment grew by four percent or 2,037 jobs in Connecticut between 2008-12 and is projected to grow by 6.4 percent or 3,407 jobs between 2012-16. The average annual earnings in the Full-service Restaurant industry were $24,270 as compared to $22,140 in the state in 2013. ______Western Connecticut Economic Development Alliance Comprehensive Economic Development Strategy Western Connecticut CEDS and Action Agenda Page 90 The Private Colleges, Universities, and Professional School industry constituted 1.2 percent of total employment in the Four County WCEDA Commuter Shed Region and had a location quotient of 1.4 in 2012. Employment in this industry increased by 384 jobs or 5.5 percent between 2008- 12. Employment grew by 7 percent or 1,854 jobs in Connecticut between 2008-12 and is projected to grow by 14.5 percent or 4,085 jobs between 2012-16. The average annual earnings in the private colleges, universities, and professional school industry were $56,419 as compared to $82,992 in the state in 2013.

The Offices of Physicians industry constituted 2.3 percent of employment in the four county WCEDA commuter shed and had a location quotient of 1.3 in 2012. Employment increased by 1,055 jobs or 8.1 percent between 2008-12. Employment grew by 4.7 percent or 1,401 jobs in Connecticut between 2008-12 and is projected to grow by 11 percent or 3,437 jobs between 2012-16. The average annual earnings in the Offices of Physicians industry were $108,005 as compared to $105,579 in the state in 2013.

Occupational Analysis This section examines the occupational concentration within the Ten Town WCEDA Region and the Four County WCEDA Commuter Shed Region. Since occupations can span multiple industries, analyzing the region from an occupational perspective provides insight into the skills of the workforce and which industries could expand or grow within the region.

Figure 85 shows the ten highest occupations by location quotient in the Ten Town WCEDA Region. As can be seen in the figure, the values for the Ten Town WCEDA Region ranged from 3.2 to 12.9 indicating that these occupations have a uniquely high concentration of the employment in the region. Three of the ten highest location quotient occupations were from the Personal Care and Service occupations, three were from production occupations, and two were from Arts, Design, Entertainment, Sports, and Media occupations. The occupations with the highest concentration of employment were primarily associated with service occupations that support the consumption of the high skill and high wage earners residing in this area. There also appears to be an extremely high concentration of manufacturing workers as a result of the region’s competitive advantage in this sector. The average hourly earnings across these ten occupations were $22.99 in the Ten Town WCEDA Region as compared to $21.44 across the state and $26.09 across all occupations in the region.

______Western Connecticut Economic Development Alliance Comprehensive Economic Development Strategy Western Connecticut CEDS and Action Agenda Page 91 Figure 85: Highest Location Quotient Occupations in the Ten Town WCEDA Region, 2012

4 LocationQuotient 2

Barbers

Athletes

ical

Aircraft

Avionics

Engineers

Electrical

Aerospace

Assemblers Assemblers

Technicians

Attendants

Assemblers

Travel Travel Guides

Entertainment Electromechan Choreographer

Source: Economic Modeling Specialists International, 2013

The values of the ten highest location quotient occupations in the Four County WCEDA Commuter Shed are shown in Figure 86 and ranged from 3.1 to 8.3 indicating that these occupations have a uniquely high concentration of the employment in the region. Three of the ten highest location quotient occupations were again from the Personal Care and Service occupations; however, four of the ten largest occupations were involved in financial and information services related industries. Unlike the Ten Town WCEDA Region, the Four County Commuter Shed Region has a much smaller proportion of occupations involved in the manufacturing sector. The average hourly earnings across these ten occupations were $34.60 in the Four County WCEDA Commuter Shed Region as compared to $31.51 across the state and $26.84 across all occupations in the region.

Figure 86: High Location Quotient Occupations in Four County WCEDA Commuter Shed, 2012

8 7 6 5 4 3

2 LocationQuotient 1

Travel

Guides

and

ent

Barbers

Agents

Service

hers

Clerks

Advisors

Financial Financial

Survey

Aircraft

Performa…

Theatrical

Brokerage

Attendants

Entertainm

Researcher Assemblers Choreograp

Source: Economic Modeling Specialists International, 2013 ______Western Connecticut Economic Development Alliance Comprehensive Economic Development Strategy Western Connecticut CEDS and Action Agenda Page 92 Figure 87 below shows the occupations with the highest employment in the Ten Town WCEDA Region in 2012. The three occupations with the highest percentage of employment are retail salespersons, cashiers, and janitors and cleaners. The portion of employment of the ten largest employing occupations in the Ten Town WCEDA Region ranged from 1.6 percent to 4.6 percent indicating that these occupations were extremely crucial to the region’s economic composition. Two of the ten highest location quotient occupations were related to the Retail Trade industry, three were related to business support services, and two were primarily involved in food services. The conclusion from this analysis is that a large proportion of the region’s workforce is involved in industries that support the services demanded by the WCEDA’s high income population and improve the livability of the region. The average hourly earnings across these ten occupations were $22.63 in the Ten Town WCEDA Region as compared to $20.86 across the state and $26.09 across all occupations in the region.

Figure 87: Largest Employment Occupations in the Ten Town WCEDA Region, 2012

5.0% 4.5%

4.0% 3.5% 3.0% 2.5% 2.0%

Percent 1.5% 1.0% 0.5%

0.0%

Cashiers

Waitresses

Waiters and Waiters

Assistants

Stock Clerks Stock

Administrative

Food Preparation Food

Registered Nurses Registered

Teacher Assistants Teacher

Retail Salespersons Retail

Operations Managers Operations Janitors and Cleaners and Janitors

Source: Economic Modeling Specialists International, 2013

Figure 88 shows the highest occupations in the Four County WCEDA Commuter Shed. Similarly to the ten towns of the WCEDA Region, the top two occupations are retail salespersons and cashiers. However, the occupation with the third highest employment concentration is administrative assistants; this is attributable to the high concentration of the financial activities industry within this region. The portion of employment of the ten largest employing occupations in the Four County WCEDA Commuter Shed Region ranged from 1.6 percent to 3.3 percent indicating that these occupations were extremely crucial to the region’s economic composition. Again, the large proportion of the region’s workforce is involved in industries that support the services demanded by the WCEDA Region’s high income population and improve the livability of the region. The average hourly earnings across these ten occupations were $22.30 in the Four County WCEDA Commuter Shed Region as compared to $21.17 across the state and $26.84 across all occupations in the region.

______Western Connecticut Economic Development Alliance Comprehensive Economic Development Strategy Western Connecticut CEDS and Action Agenda Page 93 Figure 88: Largest Employment Occupations in Four County WCEDA Commuter Shed Region, 2012

3.5% 3.0%

2.5%

2.0%

1.5% Percent 1.0% 0.5%

0.0%

Cashiers

Managers

Cleaners

General

Operations

Waitresses

Waiters Waiters and

Assistants

Janitors and Janitors

Office Office Clerks,

Administrative

Food Preparation Food

Registered Nurses Registered Teacher Assistants Teacher Retail Salespersons Retail

Source: Economic Modeling Specialists International, 2013

Figure 89 shows the occupations with the largest employment growth between 2008 and 2012 for the Ten Town WCEDA region. All ten are within occupations where there tends to be a large turnover in employment and relatively high concentrations of employment within the given industry. Five of the ten fastest growing occupations were involved in the Food Services industry which experienced an aggregate increase of 503 jobs from 2008 through 2012. Three of the remaining occupations were employed primarily in the Healthcare sector and experienced an aggregate increase of 249 jobs from 2008 through 2012. The average hourly earnings across these ten occupations were $13.79 in the Ten Town WCEDA Region as compared to $12.75 across the state and $26.09 across all occupations in the region.

Figure 89: High Employment Growth Occupations in the Ten Town WCEDA Region, 2008-12

Food Preparation Waiters and Waitresses Personal Care Aides

Home Health Aides

Janitors and Cleaners

Cooks Industry Nursing Aides Food Preparation Food Supervisors Cashiers

0 50 100 150 200 250

Figure 90 shows the occupations with the largest employment growth between 2008 and 2012 for the Four County WCEDA Commuter Shed. Similar to the Ten Town WCEDA Region, the ten fastest growing occupations in the WCEDA commuter shed are within occupations where there tends to be a large turnover in employment and relatively high concentrations of employment within the given industry. Again, five of the ten fastest growing occupations were involved in the food services industry which experienced an aggregate increase of 2,694 jobs from 2008 through 2012. Two of the remaining occupations were employed primarily in the Healthcare sector and experienced an aggregate increase of 1,585 jobs from 2008 through 2012. The average hourly earnings across these ten occupations were $13.91 in the four county WCEDA commuter shed as compared to $13.10 across the state and $26.84 across all occupations in the region.

Figure 90: High Growth Occupations in the Four County WCEDA Commuter Shed Region, 2008-12

Food Preparation Personal Care Aides Waiters and Waitresses

Home Health Aides Cooks Janitors and Cleaners

Industry Cosmetologists Food Preparation Food Supervisors Landscapers

0 200 400 600 800 1,000 1,200 1,400

Source: Economic Modeling Specialists International, 2013

Looking to the future, Figure 91 shows the ten occupations with the highest projected employment growth for the Ten Town WCEDA Region. These ten occupations are expected to grow by 1,719 jobs (11 percent) in the ten town WCEDA region as compared to 8,864 (9.9 percent) in the Four County WCEDA Commuter Shed Region and 21,606 (9 percent) in Connecticut from 2012-16. Again, there is a concentration of service occupations and those occupations where there tends to be high turnover. The highest projected growth through 2016 is expected in many of the same occupations that experienced growth from 2008 through 2012. One notable difference is that there is expected to be a significant increase in occupations related to the Retail Trade sector. The average hourly earnings across these ten occupations were $16.02 in the Ten Town WCEDA Region as compared to $14.95 across the state and $26.09 across all occupations in the region.

______Western Connecticut Economic Development Alliance Comprehensive Economic Development Strategy Western Connecticut CEDS and Action Agenda Page 95 Figure 91: High Growth Occupations in the Ten Town WCEDA Region, 2012-16

Food Preparation Waiters and Waitresses Personal Care Aides

Registered Nurses Cashiers Home Health Aides Industry Landscapers Retail Salespersons Nursing Aides Cosmetologists

0 50 100 150 200

Source: Economic Modeling Specialists International, 2013

The occupational projections for the Four County WCEDA Commuter Shed Region are similar to those of the ten towns and are shown in Figure 92. These ten occupations are expected to grow by 12,107 jobs (11 percent) in the Four County WCEDA Commuter Shed Region as compared to 1,371 (9.4 percent) in the Ten Town WCEDA Region and 27,911 (9.9 percent) in Connecticut from 2012-16.However, financial advisors are a high growth occupation for the Four County WCEDA Commuter Shed Region but not in the Ten Town WCEDA Region. This parallels the earlier findings where the financial activities industry is concentrated within the four counties but not in the Ten Town WCEDA Region. The remainder of the occupations was again similar to those that saw an elevated level of growth from 2008 through 2012. The average hourly earnings across these ten occupations were $23.29 in the Four County WCEDA Commuter Shed as compared to $22.19 across the state and $26.84 across all occupations in the region.

Figure 92: High Growth Occupations in the Four County WCEDA Commuter Shed Region, 2012-16

Food Preparation Personal Care Aides Waiters and Waitresses

Registered Nurses Home Health Aides

Landscapers Industry Retail Salespersons Postsecondary Teachers Cashiers Financial Advisors

0 200 400 600 800 1,000 1,200 1,400

Source: Economic Modeling Specialists International, 2013 ______Western Connecticut Economic Development Alliance Comprehensive Economic Development Strategy Western Connecticut CEDS and Action Agenda Page 96 DECD and WCEDA Region Cluster Analysis Figure 93 lists the priority clusters for Connecticut as identified by the Connecticut Department of Community and Economic Development (DECD). The figure also includes clusters identified in the WCEDA CEDS process as industries of focus. The clusters that both regions have in common as potential targets are highlighted in green: Advanced Manufacturing, Financial Services and Insurance, and Healthcare and Biosciences/Health and Wellness/Life Sciences industries.

Figure 93: WCEDA and Connecticut Strategic Industries

Connecticut Priority Industries Western CT Region (Identified Industry Strengths) Advanced Manufacturing Life Sciences Financial Services and Insurance Health and Wellness Healthcare and Biosciences Advanced Manufacturing Digital Media Retail Trade Green Technologies Affordable Housing Tourism Financial Services and Insurance

Source: Economic Modeling Specialists International, 2013; Connecticut Department of Labor

A brief analysis was completed to compare the clusters that Connecticut, through DECD, and the WCEDA Region have identified as priorities or targets. Figure 94 details employment statistics for the clusters in Connecticut. Between 2002 and 2012, employment in the Advanced Manufacturing cluster29 declined by approximately 20 percent. However, the industry had a relatively high location quotient of 1.39 in 2012. This means that Connecticut employment in Advanced Manufacturing was 1.39 more times concentrated in Connecticut in comparison to the United States. Employment in the Financial Services and Insurance cluster increased by approximately 11 percent from 2002 to 2012 in Connecticut. It also has a relatively high location quotient of 1.17. Employment in the Healthcare and Bioscience cluster increased by 9.74 percent from 2002 to 2012. It also has a relatively high location quotient of 2.9.

Figure 94: Department of Economic and Community Development: Connecticut Strategic Industries

Connecticut Priority 2002 2012 Absolute Employment Location Cluster Employment Employment Change Growth Quotient Advanced 51,767 41,448 (10,319) -19.93% 1.39 Manufacturing Financial Services 119,613 106,148 (13,465) -11.25% 1.17 and Insurance Healthcare and 216,153 237,209 21,056 9.74% 2.9 Biosciences

Source: Economic Modeling Specialists International, 2013; Connecticut Department of Labor

Figure 95 displays clusters identified in the WCEDA Region that had similar characteristics to those clusters identified by DECD in Connecticut. Employment in the Life Sciences and Health and Wellness30 cluster increased by approximately 13 percent from 2002 to 2012. The cluster also had

29 The advanced manufacturing sector was defined by six digit NAICS codes that met specific criteria. The full list of NAICS codes used to compile businesses in the advanced manufacturing industry can be accessed here: http://www.statsamerica.org/innovation/reports/aggregated_cluster_definitions.pdf 30 These two identified industries were combined for a more effective comparison to DECD’s identified priority industries. ______Western Connecticut Economic Development Alliance Comprehensive Economic Development Strategy Western Connecticut CEDS and Action Agenda Page 97 a location quotient greater than one indicating a relative concentration of employment in the region. Financial Services and Insurance lost a significant amount of employment in the region from 2002 to 2012; and its 2012 location quotient was less than one. However, this industry was identified as a target cluster because of suggestions in the CEDS that many WCEDA Region residents commute to lower Fairfield County for work in the Finance and Insurance sector. Hence, the WCEDA Region can capitalize on this asset by attracting more Finance and Insurance related companies to its region so that they can be closer to their labor base. Lastly, Advanced Manufacturing cluster employment in the WCEDA Region declined by approximately 26% from 2002 to 2012. However, its 2012 location quotient was relatively high, 2.58, indicating a concentration of Advanced Manufacturing employment in the region.

Figure 95: WCEDA and Connecticut Strategic Industries

Western CT Region 2002 2012 Absolute Percent Location Quotient (Identified Clusters) Employment Employment Change Growth Life Sciences 12,046 13,648 1,602 13.29% 1.27 (Health and Wellness) Financial Services 3,471 2,827 (644) (18.55%) .79 and Insurance Advanced 5,486 4,052 (1,434) (26.14%) 2.58 Manufacturing

Source: Economic Modeling Specialists International, 2013; Connecticut Department of Labor

Self-Employment Data Figure 96 details self-employment data in the WCEDA Region. Self-employment grew faster in the WCEDA Region than its comparative regions of Connecticut and the Four County Region (Fairfield County, Litchfield County, Putnam County, NY; Dutchess County, NY). Furthermore, self-employment is expected to grow at a faster rate from 2012-16 than the comparative regions as detailed in the figure below.

Figure 96: WCEDA Region Self-employment

Self Employed Growth 2002 2012 Absolute Percent Change Change WCEDA Region 9,222 9,703 481 5.22% Connecticut 124,009 129,772 5763 4.65% Four County Region 60,845 62,538 1693 2.78%

Estimated Self-Employed 2012 2016 Absolute Percent Change Future Growth Change WCEDA Region 9,703 9,785 82 0.85% Connecticut 129,728 130,087 359 0.28% Four County Region 62,538 62,444 -94 -0.15%

Source: Economic Modeling Specialists International, Inc.

______Western Connecticut Economic Development Alliance Comprehensive Economic Development Strategy Western Connecticut CEDS and Action Agenda Page 98 Economic Analysis Summary of Key Findings In the Ten Town WCEDA Region, eight of the ten highest location quotient industries (or industries with the highest relative employment concentrations relative to the nation as a whole) were from the manufacturing sector. The Ten Town WCEDA Region has a strong competitive advantage in the manufacturing sector. Since traditional forms of manufacturing have declined both in the region and across the state, there is a need to transfer the accumulated human capital towards a focus on new high tech forms of manufacturing by building on existing competitive advantages. The Ten Town WCEDA Region has an employment advantage nationally in the Office Machinery manufacturing industry. In order to maintain this advantage, the region should try to understand the needs of the industry such as potential opportunities to attract or retain supplier industries, and strategies to ascertain the workforce and skills needs for retention and formation of startups.

When looking beyond the Ten Town Region to the Four County WCEDA Commuter Shed Region, the Financial Activities sector represents five of the ten most highly concentrated industries in the WCEDA Commuter Shed Region, but it represents a significantly small proportion of employment in the Ten Town WCEDA Region. The Financial Activities sector is important for the Ten Town WCEDA Region since many of the residents of the ten towns could be employed in the financial activities sector. Further, any WCEDA Region residents may also commute to Westchester and New Haven counties to participate in the labor market, however, these areas not included in this analysis because of drastic differences in industry composition. The Financial Activities sector represents an emerging opportunity for the Region to replace some of the lost industrial activity by trying to relocate and grow new firms in the WCEDA Region. Firms may find it attractive to locate closer to where its workforce lives, and workers would find shorter commutes on less congested highways to be desirable.

When looking at employment by industry, both the Ten Town WCEDA Region and the Four County WCEDA Commuter Shed Region have similar compositions. In both regions, three of the ten largest industries were from the Health Care and Social Assistance sector, while two were from the Education and Government sectors in the Ten Town WCEDA Region and three were from the Education and Government sector in the Four County Region. Similarly, the employment projections show strong growth in the Health Care and Social Assistance sector for both regions.

Occupational Analysis Summary of Key Findings In both the Ten Town and Four County WCEDA Regions, the service industry represents the largest occupational category for employment. For example, the top two occupations in both regions are retail salespersons and cashiers. However, the occupation with the third highest employment concentration in the Four County WCEDA Commuter Shed Region is administrative assistants; this is attributable to the high concentration of the financial activities industry within this region.

Further, the occupational projections for the Four County WCEDA Commuter Shed Region are similar to those of the ten towns where service occupations show the strongest expected growth. However, financial advisors are a high growth occupation for the Four County WCEDA Commuter Shed Region, but are not currently a high growth occupation for the Ten Town WCEDA Region.

______Western Connecticut Economic Development Alliance Comprehensive Economic Development Strategy Western Connecticut CEDS and Action Agenda Page 99

Cluster Synergies Importance of Clusters Clusters are geographically concentrated sets of competing and complementary businesses that operate in similar markets. They are a geographic concentration of firms, suppliers, support services, specialized infrastructure, and producers of related products, and specialized institutions (e.g., training programs and business associations) that arise in particular fields in specific locations. They are linked by buyer-supplier relationships and by their shared reliance on educational institutions, workforce dynamics and other resources. Businesses within clusters grow and develop through local collaboration and the exchange of information which then lends itself to an increase in productivity and efficiency. As a result, companies located in regions with strong clusters experience higher growth in new business formation and start-up employment and contribute to start-up firm survival.31

There is strong evidence that globalization has made clusters more important due to its impact on increasing competition. A focus on clusters helps a region adapt to economic change. Strong clusters are one reason this region recovered jobs faster than other parts of the state and the United States after the last economic recession.

The WCEDA Region must adapt policies that foster and enhance the clusters that are strengths for the region and look to build synergies across regions (in New York and other regions of Connecticut) with similar cluster strengths creating the effect of “super clusters.” The next section shows the importance of these clusters on the regional economy. These clusters are traded sector industries which represent a group of industries concentrated in particular regions and selling products and services outside of the region, across regions and often to other countries. These clusters locate in a particular region based not on resources but on broader competitive considerations in contrast to local industries that primarily serve the local market and whose employment is evenly distributed across regions – such as retail or social services.

Cluster Synergies Key Findings Figure 97 summarizes the clusters that were identified as strengths based on the various methods of analysis. The column labeled ‘Segmentation’ lists the industries that were identified as current or emerging strengths by the analysis of employment growth trends. ‘Cluster Mapping’ highlights the industries that are strong, in terms of employment analysis, in the metro area32 of which the WCEDA Region is a part, and ‘Interviews/Focus Groups’ shows the industries mentioned as potential strengths for the WCEDA Region based on local knowledge experts. The following clusters were identified as strengths in more than one of the analyses: Financial & Business Services; Advanced Manufacturing; Arts/Culture; Food Manufacturing; Publishing & Printing; and Distribution Services & Logistics.

31Mercedes Delgado, Michael E. Porter, Scott Stern, “Clusters and entrepreneurship,” Journal of Economic Geography, May 2010. 32 Bridgeport-Norwalk-Stamford MSA, which the WCEDA Region is a part of. ______Western Connecticut Economic Development Alliance Comprehensive Economic Development Strategy Western Connecticut CEDS and Action Agenda Page 100

Figure 97: Summary of Industry Analysis

Cluster Interviews/Focus Cluster Segmentation Mapping Groups Financial & Business Services Credit Intermediation & Related Securities & Financial Investments √ Funds, Trusts, & Financial √ Vehicles √ √ Advanced Manufacturing Aerospace Vehicles & Engines Medical Devices Analytical Instruments √ Computer & Electronic Manufacturing √ √ Electrical Equip & Appliance √ Mfg. √ √ √ Arts/Culture Performing arts, spectator sports Entertainment √ Hospitality and Tourism Motion picture, sound √ recording √ √ √ Food Manufacturing √ √ Wholesale electronic markets, agents, and brokers √ Jewelry and Precious Metals √ Publishing and Printing √ √ Distribution Services & Transportation and Logistics √ √ Beverage & Tobacco Product Mfg. √ Other Information Services √ Real Estate √ Management of Companies & Enterprises √ Health/Bioscience √

Source: CERC Analysis

This section of the report provides additional analysis to support the CEDS regarding the unique features of its industry clusters. This section identifies the unique cluster strengths for the WCEDA Region based on an analysis that included: labor market data, industry data, the Cluster Mapping Project findings, and other recent reports and findings completed for the region.

______Western Connecticut Economic Development Alliance Comprehensive Economic Development Strategy Western Connecticut CEDS and Action Agenda Page 101

Industry Segmentation As part of the 2013 CEDS report for the WCEDA Region, a segmentation analysis was completed using industry data from the CT Department of Labor for Fairfield and Litchfield Counties and from the Bureau of Labor Statistics for Dutchess County and Putnam County in New York State since this area most closely mirrors the towns that comprise the WCEDA Region.33The table below combines the Connecticut and New York counties to present the data as one region.

The first step in the segmentation analysis is to identify the region’s economic engines by assessing the relative concentration of a given industry’s employment or output relative to the same ratio in the comparison region, which in this case is the United States. This produces a concentration ratio, or location quotient, which is a ratio of the percentage of employment in an industry in a local economy to the percentage of employment in the industry in a larger reference economy.

In addition to evaluating 2012 location quotients, performing a shift-share analysis utilizing 2008 and 2012 employment changes helps to determine local economic performance. This technique deconstructs regional employment change into three components: a national growth effect, an industry mix effect, and a regional share effect. The sum of the three effects is the total employment change observed in the region. This analysis is used to develop a better understanding of the forces affecting local change, particularly as it relates to each industry’s competitive share. If the competitive share component is positive, then the region’s performance is not merely caused by national trends—a local advantage is helping the industry to succeed. Conversely, a negative regional share value suggests that there is a competitive weakness for that industry in the region.

The current and emerging industry strengths for the WCEDA Region according to the quantitative industry segmentation analysis include the following industries (Figure 98):

Figure 98: Industry Segmentation

Current Industry Strengths: New Industry Strengths: 1) Motion picture & sound recording 1) Food manufacturing 2) Wholesale electronic markets, agents, 2) Other information services34 and brokers 3) Funds, trusts, and other financial 3) Securities & other financial investments vehicles 4) Real estate 5) Management of companies 6) Performing arts, spectator sports & related industries Source: CERC Analysis

33 Department of Labor data is available at the town, county, Workforce Investment Area, and state level. Data at the town level often has numerous suppressions due to confidentiality concerns. Therefore, CERC used county level data for comparison since it has the least amount of suppressions yet closely mirrors the region. 34 Industries in the Other Information Services subsector group establishments supplying information, storing and providing access to information, searching and retrieving information, operating Web sites that use search engines to allow for searching information on the Internet, or publishing and/or broadcasting content exclusively on the Internet. The main components of the subsector are news syndicates, libraries, archives, exclusive Internet publishing and/or broadcasting, and Web Search Portals. ______Western Connecticut Economic Development Alliance Comprehensive Economic Development Strategy Western Connecticut CEDS and Action Agenda Page 102

U.S. Cluster Mapping Project Recently, the Institute for Strategy and Competitiveness (ISC) under the direction of Michael Porter at Harvard University established a U.S. Cluster Mapping project. The following is an analysis, based on this project which was made available by the Federal Economic Development Agency (EDA).

This project identified 41 traded clusters with an average of 29 industries each covering the entire United States economy. Clusters are defined as an economic unit that involves a mix of manufacturing and services and combine industries in different parts of the traditional industrial classification system. Industries located in regions with strong clusters experience higher growth in new business formation and start-up employment and contribute to start-up firm survival.35

The purpose of the Cluster Mapping Project is to assemble a detailed picture of the location and performance of industries in the United States, with a special focus on the linkages or externalities across industries that give rise to clusters. Following is a summary of the clusters identified as strengths for the Bridgeport-Stamford-Norwalk, CT metropolitan statistical area (BSN MSA), which includes the WCEDA Region:

1. Aerospace Vehicles and Defense (subcluster strength: Aircraft ); 2. Jewelry and Precious Metals (subcluster strength: Jewelry and Precious Metal Products); 3. Financial Services; 4. Business Services; 5. Education and Knowledge Creation; 6. Analytical Instruments; 7. Publishing and Printing; 8. Distribution Services; 9. Entertainment; 10. Hospitality and Tourism; and 11. Medical Devices.

These eleven clusters were identified as strengths based on several factors: the 2010 employment levels in the BSN MSA; rank in the nation; and increase in share of national employment. The following analysis provides more in-depth information on the clusters listed above. The analysis first looks at those clusters ranking in the top 15 in terms of the MSA’s share of national employment in 2010, then clusters with high levels of employment for the region, and finally clusters that are not only strengths for the BSN MSA but also strengths for other MSAs in the state.

35Mercedes Delgado, Michael E. Porter, Scott Stern, “Clusters and entrepreneurship,” Journal of Economic Geography, May 2010. ______Western Connecticut Economic Development Alliance Comprehensive Economic Development Strategy Western Connecticut CEDS and Action Agenda Page 103

Overview of the Clusters in the Bridgeport-Norwalk-Stamford MSA (Includes WCEDA Region) Figure 99 shows the clusters in the BSN MSA with 2010 employment levels greater than 1,000. The column, “National Share of Emp. Rank,” shows the region’s relative strength in the nation in terms of employment levels in 2010. The last column provides the rank based on the employment levels for the BSN MSA. The clusters that are highlighted in grey indicate those clusters also identified as strengths for the region in the industry segmentation analysis. The clusters that are highlighted in red indicate the clusters also identified as strengths for the region during the interviews and focus groups.

Figure 99: BSN MSA Clusters with Highest 2010 Employment from U.S. Cluster Mapping

Emp. Rank National 2010 for BSN Share of Cluster Employment MSA Emp. Rank Financial Services 30,254 1 14 Aerospace Vehicles and Defense 17,510 2 6 Business Services 16,694 3 56 Education and Knowledge 14,029 4 44 Creation Distribution Services 9,968 5 39 Analytical Instruments 6,133 6 21 Hospitality and Tourism 5,476 7 65 Publishing and Printing 4,749 8 35 Entertainment 4,115 9 43 Transportation and Logistics 3,396 10 70 Production Technology 2,174 11 43 Information Technology 1,988 12 74 Metal Manufacturing 1,946 13 80 Medical Devices 1,932 14 49 Processed Food 1,350 15 172 Plastics 1,296 16 89 Motor Driven Products 1,256 17 48 Heavy Construction Services 1,158 18 187 Jewelry and Precious Metals 1,120 19 10

Source: U.S. Cluster Mapping Project

Between 2000 and 2010, the BSN MSA experienced an overall net job loss of 31,522 jobs, but the nation as a whole and the state of Connecticut also experienced overall losses of jobs during this period as well (Figure 100). However, there were several clusters where jobs were created, and two of the clusters surpassed expected job creation (as shown by the blue line in the figure below). Aerospace Vehicles and Defense; Financial Services; and Education and Knowledge Creation all had job growth between 2000 and 2010, with the first two clusters having the largest job growth and actually creating jobs in the MSA whereas in the nation jobs were lost in those industries during that time period.

______Western Connecticut Economic Development Alliance Comprehensive Economic Development Strategy Western Connecticut CEDS and Action Agenda Page 104

Figure 100: Jobs Created by Traded Cluster BSN MSA 2000-2010

Source: U.S. Cluster Mapping Project

______Western Connecticut Economic Development Alliance Comprehensive Economic Development Strategy Western Connecticut CEDS and Action Agenda Page 105

Figure 101 ranks the clusters for the BSN MSA by 2010 wages. The dotted blue line shows the average for the nation, the dotted grey line shows the average for the BSN MSA, and the solid blue line shows the national average benchmark. Almost all the clusters command wages that surpass the national benchmark. The following clusters also command wages that are higher than the BSN MSA’s average: Financial Services; Agricultural Products; Information Technology; Transportation and Logistics; Business Services; Distribution Services; Biopharmaceuticals; Chemical Products; and Publishing and Printing. Higher wages in the region indicate either that the region has a more productive workforce or that the jobs in the region demand a higher skill level when compared to jobs in the cluster nationally.

Figure 101: Wages by Traded Cluster, BSN MSA 2010

Source: U.S. Cluster Mapping Project ______Western Connecticut Economic Development Alliance Comprehensive Economic Development Strategy Western Connecticut CEDS and Action Agenda Page 106

Clusters Ranking in Top 15 in Nation This section examines the three BSN MSA clusters that rank in the top 15 in the nation in terms of share of national employment: Aerospace Vehicles and Defense; Jewelry and Precious Metals; and Financial & Business Services. Between 2000 and 2010, the national rank for these clusters also increased, meaning the MSA’s share of national employment increased.

Aerospace Vehicles and Defense Cluster Figure 102 shows the relative strength of the Aerospace Vehicles and Defense Cluster in the BSN MSA. Approximately 5% of national employment is in the BSN MSA for this cluster and while four of the six largest MSAs in the nation experienced losses in jobs between 2000 and 2010, the BSN MSA increased employment.

Figure 102: Aerospace Vehicles and Defense Cluster Share of National Employment by MSA, 2000-2010

Source: U.S. Cluster Mapping Project

______Western Connecticut Economic Development Alliance Comprehensive Economic Development Strategy Western Connecticut CEDS and Action Agenda Page 107

The subcluster within the Aerospace Vehicles and Defense cluster in which the region is strongest is the Aircraft Subcluster – primarily due to the Goodrich Corporation Aerospace Systems in Danbury (as of 2012, a division of United Technologies Corporation). The BSN MSA ranks 5th in the Aircraft Subcluster (there are two other subclusters within the Aerospace cluster: Defense Equipment and Missiles and Space Vehicles). As shown in Figure 103, while other MSAs lost jobs between 2000 and 2010, the BSN MSA created jobs.

Figure 103: Aircraft Subcluster, Share of National Employment by MSA, 2000-2010

Source: U.S. Cluster Mapping Project

Also of note are the other MSAs nearby that have strong presences in the Aircraft Subcluster (Figure 104). For example, the Hartford MSA ranks 6th in the nation for this subcluster showing the strength of this industry in the state, even though it lost more jobs than expected between 2000 and 2010. The combined employment for these two MSAs makes the region 4thin the nation. This presents an opportunity for the region to attract more business and

______Western Connecticut Economic Development Alliance Comprehensive Economic Development Strategy Western Connecticut CEDS and Action Agenda Page 108 suppliers to the area since the strength of the cluster extends beyond the BSN MSA economic area.

Figure 104: Aircraft Subcluster, Employment by MSA, 2010

Source: U.S. Cluster Mapping Project

Further, the BSN MSA experienced job creation between 2000 and 2010 whereas the cluster as a whole lost jobs. The figure below shows the Bridgeport MSA created the most jobs (9,835) in the nation whereas the expected job creation (as shown by the blue line) was expected to be negative. On the other hand, the Hartford MSA lost 2,070 jobs which were more than the expected job loss of 1,343 (Figure 105).

______Western Connecticut Economic Development Alliance Comprehensive Economic Development Strategy Western Connecticut CEDS and Action Agenda Page 109

Figure 105: Aircraft Subcluster, Jobs Created by MSA, 2000- 2010

Source: U.S. Cluster Mapping Project

Figure 106 shows the top 10 MSAs in the nation and the 2010 share of national employment, change in share of employment between 2000 and 2010, 2010 employment, and whether jobs were lost or added between 2000 and 2010 in the Aircraft Subcluster. As can be seen in the table, the BSN MSA was one of only four to add jobs between 2000 and 2010.

______Western Connecticut Economic Development Alliance Comprehensive Economic Development Strategy Western Connecticut CEDS and Action Agenda Page 110

Figure 106: Aircraft Subcluster Top 10 MSAs

Share of Lost or Metropolitan Statistical National Change in 2010 Added Rank Area Employment Share 00-10 Employment 2000-10 Seattle-Tacoma-Bellevue, 1 WA 18% -8.3% 46,100 lost 2 Wichita, KS 14% -0.04% 35,000 lost Los Angeles-Long Beach- 3 Santa Ana, CA 13% -1.08% 33,867 lost Dallas-Fort Worth- 4 Arlington, TX 9.8% 0.2% 25,208 lost Bridgeport-Stamford- 5 Norwalk, CT 6.8% 4.2% 17,510 add Hartford-West Hartford- 6 East Hartford, CT 3.6% -0.3% 9,250 lost 7 St. Louis, MO-IL 3.1% 1.5% 8,104 add San Diego-Carlsbad-San 8 Marcos, CA 2.9% 1.3% 7,500 add 9 Savannah, GA 2.9% 1.6% 7,560 add Atlanta-Sandy Springs- 10 Marietta, GA 2.9% 0.3% 7,560 lost

Source: U.S. Cluster Mapping Project

Jewelry and Precious Metals Products Subcluster As shown in Figure 107, the BSN MSA ranks 9th in the nation for 2010 employment in the Jewelry and Precious Metals Products Subcluster.36 Although the region has a small share of employment, it did experience employment growth between 2000 and 2010 whereas the top three regions in the nation experienced employment declines. Further, the BSN MSA increased its national ranking in terms of employment in the Jewelry and Precious Metals cluster from 20th in 2000 to 10th in 2010 while the subcluster of Jewelry and Precious Metals Products increased in rank from 21st in 2000 to 9th in 2010. Given the New York metro area’s strength in this subcluster, proximity to the region creates growth opportunities for the region.

36 The Subcluster contains two NAICS – 339911 Jewelry (except costume) Manufacturing and 339913 Jewelers’ Material and Lapidary Work Manufacturing. ______Western Connecticut Economic Development Alliance Comprehensive Economic Development Strategy Western Connecticut CEDS and Action Agenda Page 111

Figure 107: Jewelry and Precious Metals Cluster: Jewelry and Precious Metals Product Subcluster, Employment by MSA, 2010

Source: U.S. Cluster Mapping Project

Figure 108 shows the top 10 MSAs in the nation for the Jewelry and Precious Metals Products Subcluster. The figure also shows 2010 share of national employment, change in share of employment between 2000 and 2010, 2010 employment, and whether jobs were lost or added between 2000 and 2010. As can be seen in the figure, only half of the top 10 MSAs added jobs between 2000 and 2010 and the BSN MSA was one of the MSAs to do so.

Figure 108: Jewelry and Precious Metals Product Subcluster Top 10 MSAs

Share of Change in Lost or National Share 00- 2010 Added Rank Metropolitan Statistical Area Employment 10 Employment 2000-10 1 New York-Northern New Jersey- Long Island, NY-NJ-PA 32% 0.7% 21,707 Lost Los Angeles-Long Beach-Santa 2 Ana, CA 10% -0.1% 6,737 Lost Providence-New Bedford-Fall 3 River, RI-MA 8.3% -4.4% 5,577 Lost 4 Dallas-Fort Worth-Arlington, TX 6.1% 3.5% 4,097 Add Miami-Fort Lauderdale-Pompano 5 Beach, FL 3.4% 2.1% 2,254 Add Chicago-Naperville-Joliet, IL-IN- 6 WI 2.9% -0.2% 1,939 Lost 7 Lafayette, LA 2.7% 1.0% 1,820 Add 8 Salt Lake City, UT 2.2% 0.2% 1,482 Lost 9 Bridgeport-Stamford-Norwalk, 1.7% 0.9% 1,120 Add

______Western Connecticut Economic Development Alliance Comprehensive Economic Development Strategy Western Connecticut CEDS and Action Agenda Page 112

CT Atlanta-Sandy Springs-Marietta, 10 GA 1.4% 0.5% 1,939 Add

Source: U.S. Cluster Mapping Project

Financial Services Financial Services is an important cluster for the region. In 2010, more than 30,000 were employed in the industry cluster in the BSN MSA. Figure 109 shows the particular subclusters of employment for the BSN MSA in 2010.

Figure 109: Financial Services Cluster, BSN MSA Employment by Subcluster, 2010

Source: U.S. Cluster Mapping Project

An important industry subcluster in the Financial Services cluster that was also identified as a strength in the segmentation analysis is the Securities Brokers, Dealers and Exchanges subcluster (Figure 110). The BSN MSA ranks 7th in the nation with 2010 employment of almost 19,000 jobs. Another opportunity for growth in this cluster is due to the proximity to the New York MSA and the shared workforce opportunities to locate near the hub for this industry. Lower real estate prices in the WCEDA region may also be an advantage in attracting firms in this subcluster from New York and possibly lower Fairfield County.

______Western Connecticut Economic Development Alliance Comprehensive Economic Development Strategy Western Connecticut CEDS and Action Agenda Page 113

Figure 110: Financial Services Cluster: Securities Brokers, Dealers and Exchanges Subcluster, Employment, 2010

Source: U.S. Cluster Mapping Project

Business Services Although not ranking in the top 15 in the nation, the Business Services cluster is listed separately in the U.S. Mapping Project but often goes hand-in-hand with Financial Services since the clusters require similar skill sets and education levels. Therefore, it is not surprising that the BSN MSA has high employment levels in both clusters. As shown in Figure 111, in 2010 there were 16,694 business services jobs in the BSN MSA. The national rank for the cluster is 56th but several subclusters rank in the top 50 in the nation as shown in the below figure.

Figure 111: Business Services Cluster, BSN MSA Employment by Subcluster, 2010

Source: U.S. Cluster Mapping Project ______Western Connecticut Economic Development Alliance Comprehensive Economic Development Strategy Western Connecticut CEDS and Action Agenda Page 114

Clusters with High 2010 Employment The following two clusters were identified as strengths in both the cluster analysis and in interviews and focus groups: Distribution Services and Transportation and Logistics. These clusters are important for the MSA since they have high levels of employment. Below is more detailed information on these clusters in the region and recent economic trends.

Distribution Services& Transportation and Logistics The Logistics cluster was identified as a strength in the focus groups and interviews. In the U.S. Mapping Project Distribution Services and Logistics are two distinct clusters. The BSN MSA ranks 39th in the nation for Distribution Services and 70th for the Transportation and Logistics Cluster. However, the Transportation and Logistics Cluster ranked 10th in the BSN MSA for employment in 2010, employing almost 3,400. The Distribution Cluster employed almost 10,000 in 2010 making it the 5th largest cluster in the BSN MSA in 2010.

As shown in Figure 112, the cluster of Distribution Services is a strength for the MSA ranking 39th overall in the nation. There are six subclusters that make up the Distribution Services Cluster and in 2010; the highest employment for the region was in the Merchandise Wholesaling Subcluster. Two other important subclusters for the region are: Transportation Vehicle and Equipment Distribution and Apparel and Accessories Wholesaling. Although these two subclusters employ only about 1,500 people, they are smaller clusters nationally and the BSN MSA ranks 12th and 29threspectively in the nation in terms of employment.

Figure 112: Distribution Services Cluster, BSN MSA Employment by Subcluster, 2010

Source: U.S. Cluster Mapping Project

Similarly, the Transportation and Logistics cluster is important for the BSN MSA given the number it employs. There are also two subclusters (Air Transportation and Marine Transportation) where the BSN MSA ranks in the top 50 in the nation in terms of share of national employment (Figure 113).

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Figure 113: Transportation and Logistics Cluster, BSN MSA Employment by Subcluster, 2010

Source: U.S. Cluster Mapping Project

Additional Cluster Strengths: Manufacturing During the interviews and focus groups, advanced manufacturing and food manufacturing were highlighted as important industries for the region. Advanced manufacturing encompasses numerous industries and refers more to the skill level needed for the job and the precision equipment required of the industry as opposed to a particular product that is being manufacturing. One cluster that is included in advanced manufacturing is the aerospace industry which was already highlighted above. Two additional clusters that fall under the category of advanced manufacturing or the life sciences cluster; and which were identified as strengths for the region are: Medical Devices and Analytical Instruments. In 2010, Medical Devices employed almost 2,000 and ranked 14th in the BSN MSA in terms of overall employment while Analytical Instruments employed over 6,000 and ranked 6th. Both Medical Devices and Analytical Instruments remained strong in terms of national ranking despite declining employment between 2000 and 2010 (Figure 114).

Figure 114: Medical Devices & Analytical Instruments Clusters (Life Sciences)

Cluster Employment National Share of Employment Rank Year 2000 2010 2000 2010 Medical Devices 1,795 1,932 48 49 Analytical Instruments 9,967 6,133 16 21

Source: U.S. Cluster Mapping Project

The BSN MSA ranks highest in the Medical Equipment subcluster even though the Surgical Instruments and Supplies employment is higher in the MSA as shown in Figure 115. Between 1998 and 2010, the Medical Equipment subcluster created more jobs than expected based on the national cluster trend whereas the Surgical Instruments and Supplies subcluster lost jobs where it was expected to gain jobs based on national trends.

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Figure 115: Medical Devices Cluster, BSN MSA Employment by Subcluster, 2010

Source: U.S. Cluster Mapping Project

The Analytical Instruments cluster ranks 21st in the nation in terms of share of national employment. However, the Process Instruments subcluster ranks 13th in the nation and employs 2,258 as shown in Figure 116.

Figure 116: Analytical Instruments Cluster, BSN MSA Employment by Subcluster, 2010

Source: U.S. Cluster Mapping Project

Food Manufacturing (Processed Food) Although not having a large share of national employment (ranking 172nd in the nation), the Processed Food cluster ranked 15th in the BSN MSA in terms of 2010 employment. In 2010, employment was 1,350; however, in 2000 it was 2,871. The region is strong in the Coffee & Tea subcluster, ranking 28th in the nation (Figure 117) and improvement of two rankings since

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2000 when it ranked 30th. Additional subclusters that improved in ranking from 2000 to 2010 are: Candy and Chocolate; Meat and Related Products and Services; and Malt Beverages. Subclusters that decreased in ranking from 2000 and 2010 are: Baked Package Foods; Paper Containers and Boxes; Specialty Foods and Ingredients; Milk and Frozen Desserts; and Milling. The Hartford-West Hartford-East Hartford MSA ranks 31st in the nation for share of employment in the Coffee and Tea subcluster. The combined employment for the two MSAs would increase the ranking to 18th in the nation, further, adding in the employment in New Haven-Milford MSA, although only 60 employed would increase the ranking to 16th.

Figure 117: Processed Food Cluster, BSN MSA Employment by Subcluster, 2010

Source: U.S. Cluster Mapping Project

Clusters with Potential Synergy with other Regions This section identifies those clusters that are not only strong in the region but also strong in nearby regions. Having cluster strengths in nearby regions create growth opportunities for the region since there is a larger pool of potential employees with the right skill set.

Publishing and Printing: Publishing Subcluster In 2010, the BSN MSA Publishing and Printing Cluster employment was 4,749 jobs. The largest subcluster of employment was in the Publishing Subcluster. However, between 2000 and 2010, the cluster decreased in ranking going from 16th in the nation to 22nd in the nation –while the industry in the nation gained employment, this region experienced a decline.

As shown in Figure 118, in 2010 there were 3,137 employed in this cluster. Given the BSN MSA’s proximity to New York City where there is the largest employment, this creates potential opportunity for the cluster to grow in the region.

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Figure 118: Publishing and Printing: Publishing Subcluster, Employment by MSA, 2010

Source: U.S. Cluster Mapping Project

Entertainment Cluster The Entertainment Cluster ranks 9th in terms of employment for the region and also 43rd in terms of share of national employment (Figure 119). There are two subclusters within the Entertainment cluster where the BSN MSA ranks high in terms of the national share of employment: Entertainment Related Services (ranking 36th) and Video Production and Distribution Services (ranking 15th). There were almost 2,500 employed in the Entertainment Related Services subcluster in 2010 and almost 800 employed in Video Production and Distribution.

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Figure 119: Entertainment Cluster, BSN MSA Employment by Subcluster, 2010

Source: U.S. Cluster Mapping Project

Figure 120 shows the MSAs with the highest employment for Entertainment Related Services. The BSN MSA ranks 36th in the nation and the Hartford MSA ranks 34th. This creates an opportunity for both regions to market and build this subcluster.

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Figure 120: Entertainment Cluster: Entertainment Related Services Subcluster, Employment by MSA, 2010

Source: U.S. Cluster Mapping Project

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The subcluster of Video Production and Distribution Services ranks 15th in the nation. As can be seen in Figure 121, this subcluster is largely located in California but even though less than 1,000 are employed in this subcluster in the BSN MSA, it still ranks high in the nation.

Figure 121: Entertainment Cluster: Video Production and Distribution Subcluster, Employment by MSA, 2010

Source: U.S. Cluster Mapping Project

Hospitality and Tourism Another important cluster that can be found in conjunction with the Entertainment Cluster is Hospitality and Tourism. This cluster often serves as a supplier or parallel cluster to that of the Entertainment cluster.

Although the Hospitality and Tourism cluster ranks 65th in the nation (Figure 122), it ranks 7th in the BSN MSA for employment; employing almost 5,500 in 2010. This cluster was also identified as a current strength in the segmentation analysis. While employment declined nationally between 2000 and 2010, employment in the BSN MSA remained stable.

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Figure 122: Hospitality and Tourism Cluster, Employment by Subcluster, 2010

Source: U.S. Cluster Mapping Project

Also of note is that the region commands higher wages for hospitality and tourism jobs than most MSAs in the nation, as shown in Figure 123.

Figure 123: Hospitality and Tourism Cluster, Wages by MSA, 2010

Source: U.S. Cluster Mapping Project ______Western Connecticut Economic Development Alliance Comprehensive Economic Development Strategy Western Connecticut CEDS and Action Agenda Page 123

Cluster Synergies Summary of Findings Figure 124 shows the three types of analysis performed –segmentation, cluster mapping, and qualitative – and then indicates which industries were identified as strengths depending on the analysis. The final column in the table highlights those industries that are also strengths in nearby regions.

Each analysis relied on different data sources; thus industries are classified and named differently. For example, in the U.S. Cluster Mapping project there are two clusters: Financial Services and Business Services. The data used for the Segmentation analysis was based on three-digit NAICS codes resulting in a higher level of specificity. Therefore, the table below puts the industries into the cluster groupings used in the U.S. Cluster mapping project since they represent broader industry categorization.

Based on both the quantitative and qualitative analysis, the WCEDA Region has clear industry strengths, opportunities for growth, and industries that have experienced recent declines. The industries that are strengths for the region include: Financial & Business Services; Advanced Manufacturing; Arts/Culture; Food Manufacturing; Publishing & Printing; and Distribution Services & Logistics.

Industries that are strong for the region and also strong in nearby regions include: Financial & Business Services; Aircraft Engines; Entertainment; Food Manufacturing; Jewelry and Precious Metals; and Publishing and Printing. These industries are important to focus on because strengths in nearby regions mean the workforce is already available so if companies are looking to relocate or expand the availability of workers is less of a concern.

The WCEDA region will best enhance regional cohesion by identifying those economic opportunities that will appeal to a variety of income demographics as well as strategically selecting development locations for those sectors with a more narrow appeal.

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Figure 124: WCEDA Industry Analysis Summary Table

Cluster Qualitative Regional Segmentation Mapping Analysis Synergy Financial & Business Services Credit Intermediation & Related Activities √ Securities & Other Financial Investments √ Funds, Trusts, & Other Financial Vehicles √ √ √ Advanced Manufacturing Aerospace Vehicles & Engines Medical Devices Analytical Instruments √ Computer & Electronic Manufacturing √ √ Electrical Equipment & √ Appliance Manufacturing √ √ √ √ Arts/Culture Performing arts, spectator sports & related industries √ Entertainment Hospitality and Tourism Motion picture & sound √ √ recording √ √ √ √ Food manufacturing √ √ √ Wholesale electronic markets, agents, and brokers √ Jewelry and Precious Metals √ √ Publishing and Printing √ √ √ Distribution Services & Transportation and Logistics √ √ Beverage & Tobacco Product Manufacturing √ Other Information Services √ Real Estate √ Management of Companies & Enterprises √ Health/Bioscience √

Source: Various sources and CERC analysis

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Infrastructure

Infrastructure includes those foundation items that support economic development such as transportation systems including highways, roads, railroads and airports, other systems including utilities, communications, gas and water and sewer.

On a state level, transportation is a cornerstone of the state’s economic vitality and overall quality of life and linked to other key policies that deal with the state’s future, including land use planning, environmental quality, urban vitality and access to quality jobs and services for the state’s residents; the connectivity of Connecticut to the Northeast, continental, and international economies and the mobility of people and goods in order to promote sustainable economic growth.

Within 1 ½ hours of the WCEDA Region are located three airports that provide commercial service for both passengers and cargo. Bradley International Airport is located in Windsor Locks, Connecticut and JFK Airport located in Queens, New York City and LaGuardia Airport (LGA) is located in Flushing, New York City.

Utilities

The WCEDA Region is served with electric power by the Connecticut Light and Power Company. Connecticut Light and Power/Northeast Utilities is New England’s largest energy company. In addition the utility companies are among the largest taxpayers in the WCEDA Region. Yankee Gas Company provides natural gas service, but it is not available in Bridgewater.

Communications

Telecommunications service is available throughout the WCEDA Region and AT&T is the major supplier of telephone service although there are other choices. Wireless telecommunications services are also available and a number of national carriers are competing within the Region. Cable service is provided by Charter Communications of Western Connecticut to the majority of the WCEDA area communities. Comcast/Danbury provides service to Danbury and Ridgefield and Cablevision of CT, LP provides service to Redding.

Water and Sewer

Water is supplied by a combination of municipal water works, private water companies and individual wells. Municipal sewer authorities provide sewer in Bethel, Brookfield, Danbury, New Milford, Newtown, Redding and Ridgefield.

Broadband Coverage

The availability and capacity of broadband is increasingly becoming more important. At the present time there is a fast broadband loop in the Danbury area, but it’s a private link- not available to the public but still a fast speed nonetheless. The WCEDA area

______Western Connecticut Economic Development Alliance Comprehensive Economic Development Strategy Western Connecticut CEDS and Action Agenda Page 126 appears to be well served as compared to other regions in the State although there are still areas within the region that get little or no cell coverage, but often depends on the carrier. Figure 125 shows the maximum advertised rate of speed. The Connecticut broadband maps were updated through 2012 and further information for the state’s broadband initiative is available at: http://connecticutbroadband.appgeo.com/mapgallery.aspx.

Figure 125: Connecticut Broadband Maximum Advertised Download Speed

Source: State of Connecticut and App Geo

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Regional Transportation System Resources

Figure 126: Area Highways The WCEDA CEDS Region is the Gateway to Connecticut and the Crossroads of Western Connecticut. Its strategic location provides good accessibility to interior Connecticut and to the New York metro area, without the traffic congestion associated with coastal Connecticut.

The Region’s comprehensive system of road, rail and airport assets provide employers with good access to talented and educated labor resources and the ability to import needed materials and export goods and services, thereby providing a competitive advantage over surrounding regions.

Source: Housatonic Valley Council of Elected Officials The Region’s Highway Network

The area’s network of major roads provides WCEDA municipalities with good north-south and east-west access. I-84 crosses the region east-west and Routes 7, 25 and 202 cross the Region north-south. These routes provide connections to surrounding regions in Connecticut and adjacent New York State.

The Region has benefitted from recent improvements to Route 7 to address safety and capacity issues. The Region continues to work with CT DOT to address the need for safety and capacity improvements to I-84through the WCEDA region. This need has been identified as a Vital CEDS project of regional significance. The Region has also identified the need to address safety and capacity improvements for portions of Route 202 in the Town of Brookfield and Route 6 in the City of Danbury to keep pace with economic expansion activities served by those routes. Both of these improvement needs have been identified as a Vital CEDS projects in this report. The Figures on the following pages illustrate how this roadway network serves the transportation needs of the area’s economy.

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Figure 127: Employment Concentrations

Source: Housatonic Valley Council of Elected Officials

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Figure 128: Classification of Roadways

Source: Housatonic Valley Council of Elected Officials

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Public Bus Transit Service

Public bus transit service in the WCEDA CEDS region is provided by the Housatonic Area Regional Transit District (HART).Today the HART bus system serves approximately 1,000,000 riders annually.

HART operates “fixed route” bus service according to a published timetable on urban fixed routes, commuter shuttles to Metro-North train service and interregional bus service to Norwalk.

The urban fixed route bus system operates in a timed-transfer “pulse” mode with all routes meeting at the main HART bus station, or Pulse Point, in downtown Danbury at regular intervals throughout each day. This routing structure allows passengers to easily transfer from one route to another at the same place without long waits. Routes are interlined or paired together to allow a moderate proportion of passengers to travel from one route to another without physically transferring between buses.

Bus frequencies of 60 minutes are provided on all routes Monday through Saturday with 30minute frequencies provided during the morning and afternoon peak periods (6:00 a.m. to 9:00a.m. and 3:00 p.m. to 6:00 p.m.) Monday through Friday. Departure times from the Pulse Point are scheduled on the hour throughout the day and additionally on the half hour during peak periods. The span of service is 6:00 a.m. to 6:00 p.m., Monday through Friday. Saturday span of service is 8:00 a.m. to 5:30 p.m.

HART operates three shuttles, Monday-Friday, that provide service between park and ride lots in Connecticut and Metro-North train stations in New York State for commuter train service into Grand Central Terminal. The shuttles are designed to meet morning southbound departures and afternoon and evening northbound arrivals to and from Grand Central Terminal.

HART participates in the inter-regional Danbury-Norwalk “Route 7 Link,” which provides bus service to employment centers along the Route 7 corridor and the downtowns of Danbury and Norwalk. Buses originate and terminate at the HART and Norwalk Transit District pulse points. The LINK provides hourly peak period bus service Monday-Friday between 6 a.m. and 12 p.m. and 3 p.m. to 7:30 p.m. HART and the Norwalk Transit District run the service jointly, each operating 50% of the service. Link passengers may transfer between the WHEELS or HART systems at either terminal at no cost.

HART also provides demand response bus service to seniors aged 60 or older and persons with disabilities of any age through its SweetHART system. Door-to-door service is provided by SweetHART whereby passengers are picked up, usually at their homes, and taken to their destinations. Drivers assist passengers from the door of their pick-up point to the door of their destination on request. All SweetHART vehicles are wheelchair-accessible.

The following Figure describes HART’s fixed-route system and proposals for future service expansions.

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Figure 129: Bus Route Expansion Plan

Source: Housatonic Valley Council of Elected Officials

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Freight Rail Service

The freight transportation industry in the United States has undergone dramatic changes in the last twenty years. Developments in “containerization”, shifts in the manufacturing industry to “just-in-time” delivery; the deregulation of rail, trucking and aviation industries, and the development of new trading patterns in a global economy have led to consolidation and restructuring of freight transportation modes.

Rail freight service in Connecticut is provided by CSX Transportation, Providence & Worcester, Housatonic Railroad Company, Springfield Terminal, Rail America subsidiaries Connecticut Southern Railroad and New England Central Railroad, Branford Steam Railroad, Central New England Railroad, Naugatuck Railroad, and PanAm Southern Partnership.

WCEDA seeks to promote realistic growth of rail freight usage in the CEDS Region. With many parts of Connecticut without any rail service, the WCEDA CEDS region is fortunate to have multiple rail lines with active freight service.

Today, there are four recognized rail lines in the Region operated by the Housatonic Railroad Company (HRRC) and the Providence and Worcester Railroads (P&W). The regional rail network centers on the City of Danbury, with all four lines serving the city. The Figure on the following page describes rail siding service in the region.

Figure 130: Railroad Network

Figure 131: Access to Rail Freight

Source: Housatonic Valley Council of Elected Officials

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Commuter Rail Service

Metro-North Commuter Railroad operates rail service between New York City and Connecticut over the New Haven Line. The Danbury Branch of the New Haven Line provides commuter rail service to the residents of the WCEDA CEDS region.

The Danbury Branch Railroad Line from Danbury south to Norwalk has been serving the Greater Danbury Area since 1852. The regional goal is for commuter rail service on this line to become a more vital component of Western Connecticut’s transportation infrastructure. Currently, the Line serves about 1,000,000 passengers annually.

Figure 132: Passenger Rail Service Systems

Source: Housatonic Valley Council of Elected Officials

The Danbury Branch Line is a 23.6 mile single track, non-electrified rail line. The State of Connecticut owns the Danbury Branch Line and its passenger stations, as well as the train equipment operating on the Line. It has passenger stations in Danbury, Bethel, West Redding, the Branchville section of Ridgefield, a new station planned in Redding’s Georgetown section, two stations in Wilton (Cannondale and Wilton), and two in Norwalk (Merritt 7 and the branch

______Western Connecticut Economic Development Alliance Comprehensive Economic Development Strategy Western Connecticut CEDS and Action Agenda Page 135 line terminal at South Norwalk).The line parallels Route 7 for most of its length. Branch Line commuter service currently provides 28 weekday trains.

The current transportation policy of the CEDS region is to extend commuter rail service 14 miles north to the Town of New Milford, as depicted in Figure 133.

Figure 133: Proposed Expansion of Rail Service

Source: Housatonic Valley Council of Elected Officials

Transit Oriented Development

A key to passenger rail planning is to encourage land use changes in the vicinity of rail stations that will be supportive of transit use. This concept is known as ‘transit oriented development.” Generally, transit-oriented development means the development of residential, commercial and employment centers within one-half mile, or walking distance, of public transportation facilities, such as rail stations. The transit oriented development goal for the Regional Transportation Plan for the WCEDA CEDS area is to reinforce, intensify and foster mixed use neighborhoods at most

______Western Connecticut Economic Development Alliance Comprehensive Economic Development Strategy Western Connecticut CEDS and Action Agenda Page 136 existing and proposed passenger rail stations and at HART’s central bus transfer station in Downtown Danbury. The following graphic described proposed TOD planning areas within the WCEDA CEDS region.

Figure 134: Transit Oriented Development Planning Areas

Source: Housatonic Valley Council of Elected Officials

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Danbury Municipal Airport

Danbury Municipal Airport is a general aviation facility owned by the City of Danbury. It hosts approximately 68,000 take-offs and landings annually, with flights from across the U.S. It is used by many area businesses and individuals.

The airport is located on approximately 250 acres near the intersection of I-84 and Route 7 in Danbury. It consists of two intersecting runways, a control tower and several hangers. The airport is the base for corporate air fleets and is used for private flights. It has no scheduled public air passenger service.

Danbury Airport provides a number of services, including repairs to aircraft engines and airframes, flight instruction, air craft sales and rentals, and hanger service. It has an estimated $40-50 million dollar contribution to the area’s economy. The City of Danbury is currently exploring options to expand the economic vitality of this important regional transportation resource.

Figure 135: Arial Photograph of Danbury Airport

Non-motorized Transportation

The use of non-motorized transportation is increasingly becoming recognized nationally as an alternate means of transportation especially in areas that have favorable weather conditions and a number of programs have been developed to take advantage of legislation and to meet people’s changing needs and attitudes toward non-motorized transportation. Communities that have invested in non- motorized transportation are favored by younger people and residents in general. Millennials and college students, the next work force and major consumer group, prefer not to drive and select communities welcoming non-motorized transportation. Local businesses benefit as people stay closer to home and support local businesses. Cities and towns in many parts of the country (around 300 are now Bicycle Friendly Communities and growing) are implementing non-motorized transportation.

It is anticipated that having a better non-motorized transportation system will broaden the selection of service workers for businesses that rely upon them and will also help workers with lower salary jobs have more disposable income since a lower percentage of their pay will be directed to transport, especially if they bicycle.

The Housatonic Valley Council of Governments is already working in this area and has created a Regional Bicycle Plan and plans to update it and obtain municipal commitments to complete it.

Complete Streets In recent years both the nation and Connecticut have focused on planning for and implementing pedestrian and bike friendly “Complete Streets” improvements. From this perspective, roadway corridors can be improved by retrofitting with full provision for transit, pedestrian and bicycle needs.

Providing for the accommodations of all users should be a routine part of planning for, designing, constructing and operating transportation resources. To help meet this need the WCEDA CEDS recommends the establishment of a Western Connecticut Complete Street Coalition which would conduct Complete Street Workshops and work to advocate for and implement Complete Streets projects.

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Economic Development Strengths, Weaknesses, Issues and Opportunities

Strengths, Weaknesses, Issues and Opportunities Assessment Based on all the research conducted during the preparation of this CEDS and Action Agenda, a summary listing of Western Connecticut’s primary strengths and weaknesses as a location for business was prepared.

Figure 136 provides a summary listing of Western Connecticut’s primary strengths and weaknesses as a location for business. Items noted in bold were cited by numerous sources. These opinions were gathered from nine (9) focus group meetings and the business survey.

The strengths listed below help to identify attributes that support business attraction and growth. The weaknesses help to identify community attributes that may require attention in order to improve Western Connecticut’s competitiveness.

Figure 136: Western Connecticut Strengths and Weaknesses Summary

Strengths Weaknesses Location and Access to Markets . Western section of state attracts more people . Impossible location & access to markets with disposable income . Access to NYC client base is good. Internet makes many more things possible for information flow across all boundaries of the world in real time so is a must that it be world class. . Close proximity to New York and Boston Markets. . excellent, Danbury is within 2 hours to New York City and four hours to Boston . We are a professional consulting firm and find no problems with providing our services to customers throughout western CT and eastern NY. . Very good location & access to markets . Easy to provide products or services in this area. . As a regional sign manufacturer, I find it very easy to provide my customers the services they need. . Easy access to markets

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Transportation Airports Airports . Hartford airport great airport. . Airport access is only fair, with no transportation . Rail & road system serve internal needs with the to airports outside of car services and vans on exception of highway travel during peak periods limited basis. Competition slowly eroding at Roads airports increasing travel costs. . Good road maintenance, especially in winter Roads . For our business, roads are important, access to . None-we are effectively cut off from the rest of major roads is good the state . Road transportation is adequate . The roads in Western CT are in terrible shape. . Travel from/to NY, MA, RI is efficient and Roads effective. Local travel is enhanced by I-84 and . Highway System & Maintenance I-91 and relatively inexpensive with no tolls. . Difficulty getting around region . OK . Bus & rail need to be improved to give . The infrastructure to reach customers is reliable employers ability to draw from all communities but needs upgrades; roads, etc. in region . Bad, but did not specify which or all. . Commuter regional transportation . Regional commuter transportation is somewhat . Eastbound 84 Highway Traffic Jams at end of good business days . The new Super 7 connector Rail . Proximity to major transportation hubs . Rail needs upgrade . Proximity to New York & Boston within 1-2 . Poor service hours . Public transit, particularly train service should be . Accessibility to JFK, LaGuardia, New Jersey, enhanced to improve connectivity of the region Westchester, Hartford & Boston airports to other urban centers . Transportation infrastructure is good for . Poor mass transit commuters and for shipping by truck. Bus Service Rail . Poor . Rail service to Boston & NYC. . There are plenty of Rail lines in most communities . Strength Bus . Bus system good. (2) . Access to public transportation in Danbury Infrastructure (Other) . Great communications between various sectors. . Availability of secured vehicle storage facilities . The area has a good infrastructure system. . Gas, sewer and highway networks need to be expanded to improve quality of life and ability to develop further . Parking remains a problem in Bethel’s downtown. Utilities and Telecommunications . Water supply capacity . Lack of broadband access in some areas . Water quality . Cost of utilities . Sewer treatment capacity . Sewer systems acceptance of industrial waste . Natural gas service . Good Internet service . Electric power reliability . Quality of advanced telecommunications services (voice and data) . No problem with the internet. We serve a

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worldwide customer base . Use of Internet- advertise/shop local, appointments, e-mail lists Workforce . Danbury offers resources & opportunities for the . Difficulty recruiting young talent due to the cost age group 20-34 of living & lack of local nightlife & entertainment . Less than 1 hr. to other CT locations, White . Labor force an issue Plains & Westchester, NY . Labor cost is an issue . Region offers one of the most educated . Skilled manufacturing workforce is dwindling workforces in the country . Lack of manufacturing workforce . Availability of top talent and well educated . Lack of qualified workforce workforce , specifically in pharmaceutical and . Can’t find employees with right skills medical devices. . Turnover rate of employees in health care . Available labor pool within a reasonable industry commuting distance . Employee burnout in health care industry . Many members in creative economy provide . good networking opportunities . Diversification of workforce . Past ability to withstand downturn in economy . Availability of Unskilled Labor . Availability of engineering and manufacturing employment . Employees have more corporate loyalty in CT relative to other areas of the country and world . Major research institutions have the ability to attract highest quality talent from around the U.S & World for bio-med research. Education Quality of Education & Programs . More should be done to further develop & . Quality of K-12 Educational System promote high school vocational training . Good schools & resources (4) . Better vocational training promoted & produces . Educational systems would produce better skilled workers/labor pool. . Quality & options of educational programs . Graduating high school students could become . After school program workers with ability to become good wage . Quality of Post-High School Educational System earners. . Quality of Vocational Training Programs . Region & CR have ability to regain . Cost of Vocational Training Programs compared manufacturing prominence. with the skills of students being produced . CT DOL training program requirements are . Summer camps/after school programs onerous. . Presence and programs of University in region. . Requiring CT DOL approvals for job trainers at Safety local business sites is unnecessary and a burden . Safe communities to raise children . Local, regional, state educational programs . Availability of high quality educational resources should prepare students for anticipated area job in the Northeast is a major plus in finding and openings. attracting employees. Safety . Local university . Perception of safety in Danbury . Great public & private school systems attractive to young families . Western Connecticut State University in region access to all the other colleges and universities between Boston and New York. . Bethel was cited as a safe community having great attributes with amenities

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Business Climate . Lower cost of living in region compared with . Burdensome state regulations Fairfield and Westchester counties. . High cost of doing business in state . Region usually 1 point below national . CT perceived as being anti-business unemployment rate . Businesses are portrayed as “villains” . Overall cost of doing business, while high in CT, . Permit process is a stumbling block is lower than in other areas, such as CA Cost of Business . Cost of business is high compared to rest of US (Singapore, Vietnam & Bangkok cited) . Costs of business fees, taxes and basic services . Taxed just be in business with little to no services for these taxes. . Very difficult for the small business owner to justify staying and doing business in CT. . Mandatory insurance (unemployment, workers comp etc.) costs are way too high . The “safety net” the state provides is way too costly and incents the wrong behavior, 1 year+ unemployment, high minimum wage and programs that pay to train folks multiple times . Both Leadership in public & private sectors lack awareness of companies in region. . Lack of understanding of business needs to be successful. . CT government does not have the ability to do anything to control costs but raise taxes. What business can allow their people to retire at 52? . CT is business unfriendly (4) . Unions . Cost of health care . Classification of high tech companies . Excessive regulation concerning business and building expansion at State & local levels of government. Translates to inability to develop an acceptable & accurate timeline for facility changes and expansions. Taxes . Low taxes in Danbury . Fiscal limitations . Over reliance on property taxes . Fiscal pressures on municipalities Cost of Taxes . Taxes a negative . Property Taxes, Personal Property Tax, Water and Sewer cost have risen substantially in the last ten years. . Costs of business fees, taxes and basic services . The tax structure in this state and region is prohibitive and getting worse. Support Services . Childcare: (three- five year olds: pre K/nursery . Medical device companies being squeezed by school/subsidized programs suppliers with strong focus on volume & cost. . School Readiness, head start, state funded . No real distribution centers in local area. centers) . Not a lot of major industry in Connecticut.

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. Trucking service . Limited childcare for children under three . Package Delivery & Courier Service . Lousy Taxi service . Solid waste disposal services . Services of Fedex Permits . Permitting is difficult & time consuming – costs sometimes outweigh transaction value. . Long time to prepare traffic study . Length of time to obtain permits . Zoning Commissions with signage and regulations Available Sites and Buildings . Sites in region are listed in CERC’s database . Lack of space and art center . Available buildings for business occupancy . Landlords and developers will need to . Lower lease rates and real estate costs than understand the needs of the art community and lower Fairfield County the benefits it brings . Ridgefield landowners are talking about a mix of . Lack of greenfield development opportunities to businesses and helping one another accommodate business ownership/expansion and relocation plans. Financing & Incentives . Requirements of government lending programs . State funding for bio-med research is going to UCONN and none to this area. . Lack of financial support from CT DECD for consolidation and expansion of local businesses. State tax structure eliminates many R&D expansion initiatives within CT. Public Services/Facilities . Services provided by HVCEO to the ten . Business development offices are not motivated municipalities to help and do not keep up promises to get back Quality of Life . Arts & art organizations . Lack of entertainment and nightlife . Entertainment in Region . Nothing to do in cold weather . Good place to live and bring up a family . Lack of centralized art community . Good area to live with schools, services and amenities . Good quality of life in the region . Region provides same amenities and attractions of Boston and New York . Accessibility of rural areas in CT & NY, but don’t have to live there to enjoy . Ability to have a business in same location as where they live . Close proximity to universities . The mix of old and new provides inspiration for work for the creative economy . Availability of park & rec programs . Excellent recreational activities and good number of sports complexes . Trails for walking, biking, running, etc. . Western CT is a destination for people who do not live in the area.

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. Danbury Mall cited as a shopping destination . Quaint & scenic New England towns . Western CT offers high quality of life & sense of community . Lower cost of living, less congested . Major contributor to working & living in Danbury & area . Appreciation for mix of rural & urban livable qualities & pace of life . Less traffic and better quality of life when compared to lower Fairfield and Westchester counties. . Downtown Bethel is an asset from the standpoint of ease of walking and beauty of the downtown. . Strong hospital network . Great variety of heath care with all levels of care represented . Cost of care in region is better than in other areas in the state Diversity . Diversity of population cited in Danbury . Diversity of cultures in Region . Living in top 10 safe community Housing . There are housing choices in the region . Difficulty in finding affordable housing. . Lack of affordable housing . Lack of mixed use development . Lack of planning, no sense of ‘village,’ a lack of thriving downtowns . Housing costs are high . High cost of local housing forces employees to commute into the region. . Ability to attract & retain skilled labor is difficult given high housing costs. Image and Visibility . Region enjoys a positive image . With past efforts to brand, egos have been a . Importance of Arts is recognized deterrent for achieving progress . Lack of advertising & promotion Other Topics . Stay in region where they were raised . Region cited for lack of working together. . Regionalization is way for communities to . Post Office Hours survive . Virtually no integrated business strategy or . Good Networking Groups available resources . Quality hospital and services. . Competition is very tough. Out of state . Presence of a hospital affiliated, state of the art, companies. biomedical research facility. . Large businesses should support local . Regional YMCA of Western Connecticut and nonprofits more service to 22 communities . Loss of smaller tourism districts . WCEDA communities have a history of working well together . Recognition of importance of buying local -Fairfield was cited as a good example

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It should be noted that every response received from the business survey has not been incorporated into the summary chart.

A number of the following topics have been identified in various focus groups on multiple occasions and merited more discussion:

Location and Proximity to Major Transportation Hubs Businesses and residents are within one to two hours of both New York and Boston. The proximity provides easy access to JFK, LaGuardia, New Jersey, Westchester, Hartford and Boston airports. Rail also makes both cities accessible. Being close to 84 and within an hour and a half of New York City and Boston, as well as under an hour to other artist communities in Connecticut (New Haven, Bridgeport, Torrington and Hartford specifically), is an asset to the region.

Quality of Life The region’s quality of life is a major contributor to working and living in Danbury and the surrounding towns. There is an appreciation of the mix of countryside, downtown city areas, rural and livable qualities, specifically the pace of life. The region offers one of the ten safest cities along with many recreational and sports activities and attractions.

The Danbury Mall The Danbury mall is not just a mall, but a shopping destination. It brings a high level and quality of retail to the region that is unmatched in other parts of the state. The mall is appealing for the region’s target audience – affluent Boomers, young workers and their families. The area also offers big box retail and smaller stores. This mix is perceived as neither positive nor negative, depending on which town the stores are located in or homes’ proximity (or lack of) to big box stores.

Vital Arts Community Along with being located near vital art communities within Connecticut and New York, there are many members in the creative economy in the region which provides good networking opportunities. The artists also feel the area is good inspiration for their work – the mix of rural, city, manufacturing new and old – influences their work.

Health Care & Related Services Health care establishments and its workforce have grown significantly over the last ten years. There is a strong hospital network that has built good relationships with the service providers and there is a good continuity of care for the patients. There appears to be a better level of care for patients than in other areas of the state.

Exceptional Schools Like the rest of New England and Connecticut, the region can offer great school systems for young families. However, while this is true for most of New England, the region can offer the best in private school education for young families with children who are elementary, middle and high school ages. The region also has Western Connecticut State University and access to all the other colleges and universities between Boston and New York.

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Educated Workforce Due to its excellent schools, the region offers one of the most educated workforces in the country. Businesses in need of top talent, specifically in pharmaceutical and medical device manufacturing, can find a workforce well educated in both industries. Connecticut consistently ranks in the top ten in the nation in education, innovation and the bioscience industry. (hartfordspringfieldnews.com)

Western Connecticut’s Differentiators All of the above positive aspects of the region can be said for the rest of Connecticut, and in many cases, for the rest of New England. However the positive aspects that are differentiators for the region are the cost of living, less congested traffic and better quality of life when compared to Fairfield and Westchester counties. These qualities make the region attractive for Boomers and young families who like the life they can lead in Westchester and Fairfield and can move and maintain the same life for less cost and less congestion. Living in the region also allows these two groups to remain close to the attractions they enjoy in New York City. The cost of doing business in the region is lower than in these two counties as well, but offers all of the same amenities and attractions of Boston and New York. It is an ideal area for pharmaceutical and medical device manufacturing companies.

Western Connecticut offers proximity to colleges and universities, ideal location in Connecticut - an innovative state in these areas, an educated workforce, and lower cost of doing business.

Weaknesses Pain Points Specific to the Younger Workforce in the Region Lack of Entertainment/Nightlife – The younger members of the focus group feel there’s a lack of accessible entertainment for younger people in the region. They also feel like “there’s nothing to do,” specifically when the cold in the winter months makes outdoor activities difficult or impossible.

Pain Points for the Region The region has pain points that are similar to the rest of Connecticut. They include a lack of mixed use development, a lack of planning, no sense of ‘village,’ a lack of thriving downtowns because small businesses cannot afford to stay in business, difficulty recruiting young talent due to the cost of living and lack of local nightlife and entertainment.

Difficulty Getting Around in a Town (versus Danbury) Specifically regarding Newtown, the younger members of the group felt a lack of accessible public transportation makes life less interesting for kids in the region.

Anti-Business Connecticut is perceived as anti-business and that businesses in the region are perceived as “villains,” permits are stumbling blocks and the cost of doing business is very high compared with the rest of the country and the world, (specifically group members mentioned Singapore, Vietnam and Bangkok).

A number of business representatives mentioned it’s becoming harder for them to survive without moving their businesses out of state. This was reiterated when discussing the

______Western Connecticut Economic Development Alliance Comprehensive Economic Development Strategy Western Connecticut CEDS and Action Agenda Page 147 manufacturing workplace in the region and the medical device industry getting squeezed by suppliers with a strong focus on volume and cost.

The labor force and the cost of labor is another issue these business owners are facing in the region. The group agreed that a skilled manufacturing workforce is dwindling in the region and the cost of labor is increasing.

Lack of Centralized Art Community An earlier focus group reported seeing a good number of artists in the community and acknowledges that Western Connecticut State University’s new art center will help bring the Creative Economy group together in the region, the art center is still a couple of years away from being built. A space or art center like other areas in the state have in order to truly flourish is needed and communities such as Torrington, New Haven, Bridgeport, Hartford and West Hartford were cited as examples of communities with successful arts centers and open studio spaces that are heavily promoted and thus successful. A landlord or developer would have to recognize the opportunity to provide a central arts space and the benefits it would bring to the community. Currently, the need is for a place, like Erector Square in New Haven, where artists can have open space or hold open studios.

Lack of Promotion and Advertising in the Region The initial focus group recognized the potential for the region, but not realized due to a lack of resources, centralized place for the group and promotion for the arts community. They feel if a vital arts community is developed and promoted to the affluent audiences close to the region (New York City, Westchester and Litchfield), people with money to spend would come to the area to purchase art and while there frequent stores and restaurants in the community bringing money to the region’s economy. They noted towns in Westchester, New York and Torrington, Connecticut as examples where the Creative Economy has spurred economic growth. They feel that the media and advertisers do not see their primary audience in the region and this is a main hindrance to drawing people from surrounding areas to the region.

Two areas merited further research and are considered both strengths and opportunities for the region.

Sites and Buildings One key area of strength for the Western Connecticut Region is the availability of sites and buildings; this will be a marketing opportunity for both retaining/expanding and attracting businesses.

In most business recruitment efforts, the availability of suitable real estate ranks as one of the critical elements. Frequently, this can be an important component of business retention and expansion as well. For Western Connecticut, reuse of brownfield sites is also important. A review of listings in CERC’s SiteFinder inventory for the 10 communities in the region found 24 available sites totaling 1,004.7 acres in seven communities and 238 buildings with an availability of 2,578,681 square feet. The asking price for the sites ranged from $80,000 to $7 million. The asking lease rate per square foot for the buildings ranged from a low of $3.00 to a high of $32. It has been noted that the rates are below those in lower Fairfield County and viewed as both a strength and a competitive advantage for the WCEDA Region.

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Real estate rates for both leasing and purchase in the WCEDA communities are much more competitive than that of lower Fairfield County. The average asking rate per square foot in the north submarket (which includes the Danbury area) is lower than all of the other submarkets except for the east submarket; the average of the rest of the region is double and sometimes triple the north submarket. For the latest period available, the office market in Fairfield County (3rd Quarter) improved with a positive net absorption of 120,912 square feet according to CBRE’s Fairfield County, CT Office MarketView. The overall asking rental rate continues to rise and rental rates in the north submarket continue to be more competitive than the other submarkets in Fairfield County. The CBRE Fairfield County Report for the 3rd Quarter 2013 lists the availability of 516,678 square feet for both Class A and Class B office space with an average rental rate of $23.36 for Class A space and a rental rate of $20.76 for Class B space.

The Arts & the Creative Economy Arts and culture play a significant role in local, state and national economies and as well in regions. In December 2013, the U.S. Bureau of Economic Analysis and the National Endowment for the Arts released the first estimates of the creative sector’s contribution the U.S. gross domestic product (GDP) which was based on 2011 data. This data showed that the arts and culture sector outpaced the U.S travel and tourism industry. It is recognized that arts and culture not only provide contributions of ideas and creativity to the innovation economy, but also as an important part of the labor force and the country's GDP and economist are able to track the contributions of the creative economy in the country.

The analysts defined arts and culture output based on creative artistic activity and the goods and services produced by it or used to support it and also includes the construction of buildings to house creative industries. The total output from arts and cultural production was $916 billion in 2011 and the measurement includes:

 Advertising industry  Cable TV production Danbury ranks 6th in the country for its “artistic wealth”.  Broadcasting  Publishing Richard Florida  Performing arts The Atlantic, 2011  Other This data includes profit making organizations that make movies and provided video services and a number were leading contributors to GDP. Not even considering the profit making companies in the creative economy, the nonprofit arts and its audiences provided a significant impact in Connecticut.

In the 2012 American for the Arts, Arts & Economic Prosperity IV Study documents the significant economic impact of the arts in the State of Connecticut with a total economic activity of $653 million in 2010 by the nonprofit arts and culture organizations. Significant activity was generated in the WCEDA region and the rest of Fairfield County. Data specific to Litchfield County was not available. (Two of the WCEDA communities are located in Litchfield County.)

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Figure 137: Economic Impact of Arts in Connecticut

Category Fairfield Connecticut United County States Economic Activity of Arts* (includes $130 million $653 million $135.2 billion nonprofit arts & culture & audiences) Fulltime jobs (FTE) 3,972 18,314 4.1 million Household income $88,300,000 $374,240,000 $47.53 billion Local government revenue $25,840,000 $2.24 billion State government revenue $33,236,000 $2.75 billion Local & state government revenue combined $10,500,000 $59,076,000 $22.3 billion Federal Income Tax Revenue $5.26 billion *Annual spending

Source: Findings from the American for the Arts, Arts & Economic Prosperity IV Study, 2012

At the present time there are twenty (20) regional arts organizations in the state and two are located in Fairfield County. The Cultural Alliance of Western Connecticut, based in Danbury and serving Northern Fairfield and Southern Litchfield Counties (the WCEDA communities), is a nonprofit organization that promotes and advocates for arts, history and culture as a primary driver of the economy and as an enriching influence for communities and people. The Alliance has identified approximately 450 organizations, annual events, festivals, fairs and other events related to the arts, culture and history in the region and more than 900 creative professionals and an unidentified number of profit-making businesses engaged in the regional cultural economy.

The organization is involved in a number of arts initiatives vital to the region and is considered a key participant in implementing the CEDS. Not only do the arts provide a positive economic impact to the economy, but add to the region’s quality of life.

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Visioning and Action Planning

Regional Vision Statement In 2034, the Western Connecticut Region will be nationally known for its exceptional quality of place that attracts both businesses and people. The region’s diverse communities will offer the education, housing, workforce skills, arts and culture, and infrastructure that make Western Connecticut a global leader in attracting, creating, and expanding businesses that promote innovation and effectively respond to the economy of the future. Its communities will be fiscally sound and its town centers and neighborhoods will be business centers and magnets for population growth that provide a growing labor force and support the region’s retail and service businesses.

Regional Goals The following Goals were adopted by the CEDS Committee as the foundation for this CEDS and Action Agenda:

Goal 1: Economic Development Tools and Resources Assure that the Western Connecticut Region and its communities have a full-service economic development program with the necessary tools and programs to support effective economic development efforts. Goal 2: Workforce Assure that the existing and future businesses of the Western Connecticut region have access to the workforce skills and training programs required for profitable business operations in the global economy of the future. Assure that the Region’s workforce has access to high quality jobs and the programs and services necessary to keep their skills current.

Goal 3: Economic Expansion and Diversification Carry out an aggressive set of business attraction, retention, expansion, creation, and transition programs and services to strengthen the Western Connecticut Region’s existing sectors and clusters and grow new ones.

Goal 4: Creating Great Places Continue and strengthen community and regional efforts to make the Western Connecticut Region a highly desirable place to live, work, play, and run a business.

Regional Objectives/Initiatives and Action Agenda Goal: Economic Development Tools and Resources Assure that the Western Connecticut Region and its communities have a full-service economic development program with the necessary tools and programs to support effective economic development efforts.

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Objective 2 Regional marketing program – Create a cost-effective regional economic development marketing program including a prospect servicing protocol and marketing activities such as a series of familiarization tours for site selectors.

Objective 3 Business retention and expansion program – Develop and operate an effective business visitation, relationship building, information collection, and service provision program.

Objective 4 Regional economic development infrastructure plan and improvements – Develop and implement a regional infrastructure plan specific to supporting economic development.

Goal: Workforce Assure that the existing and future businesses of the Western Connecticut region have access to the workforce skills and training programs required for profitable business operations in the global economy of the future. Assure that the Region’s workforce has access to high quality jobs and the programs and services necessary to keep their skills current.

Goal: Economic Expansion and Diversification Carry out an aggressive set of business attraction, retention, expansion, creation, and transition programs and services to strengthen the Western Connecticut Region’s existing sectors and clusters and grow new ones.

Goal: Creating Great Places Continue and strengthen community and regional efforts to make the Western Connecticut Region a highly desirable place to live, work, play, and run a business.

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Regional Action Agenda

For each of the Immediate Priority Objectives selected by the Coordinating Committee, a detailed template (see the following pages) was completed.

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Objective #1: Organization and Funding Position WCEDA or establish a new organization as the designated entity to implement the CEDS goals and objectives, with adequate structure, staffing, funding and other resources. Supports Goal: 1. Economic Development Tools and Resources Rationale for Initiative and Background Information This is the most important Objective contained in this CEDS. Without an established and recognized economic development organization (EDO) for the region, with adequate staff, funding and other resources, none of the rest of the objectives and other activities planned to advance the region’s economy and the economic well-being of its residents and businesses are likely to occur. Throughout the remainder of these Objectives, it is assumed the Western Connecticut Economic Development Alliance (WCEDA) will be that entity, but other approaches are also possible. The Western Connecticut region is surrounded by active regional economic development programs, both in Connecticut and New York. While the region’s communities have had success with their individual economic development programs, the establishment of a regional EDO with staff and resources will add another competitive advantage that responds to prospect companies desire to consider regions first before focusing on specific communities. The ability to collaboratively undertake certain economic development functions such as joint marketing (see Objective #2) will be a more cost-effective approach to multiple, individual marketing programs – or no marketing programs at all – currently in use in the region. A regional EDO also responds to ongoing efforts by the State of Connecticut to streamline the provision of certain services by delivering them regionally. This includes the establishment of state-recognized economic development districts (EDDs). It is the intention of the CEDS Strategy Committee and WCEDA to use this CEDS to apply for recognition as a federal and state EDD. This Objective describes a process for establishing what should become a successful EDO for the Western Connecticut region. Objective #1 Major Action Steps and Schedule Action Steps Schedule 1. Establish a WCEDA Corporation Committee to convert the organization into 1stQtr 2014 a not-for-profit economic development corporation. 2. Contact regional economic development corporations in Connecticut (MetroHartford Alliance, seCTer, Northwest Connecticut Economic Development Corporation, etc. to obtain copies of necessary legal 1stQtr 2014 documents including Articles of Incorporation, Bylaws, application for IRS not-for-profit tax exempt status, etc. 3. As necessary, obtain qualified legal, accounting or other necessary professional assistance. If possible, obtain these on a pro bono basis. 1stQtr 2014 Prepare and file documents as necessary. 4. Corporation Committee identifies initial functions of the organization and develops an organizational structure (staff and committees) and first year work plan to provide those functions. This should be done with the input of 2ndQtr 2014 the region’s local economic development staff and commissions to identify highest value areas of assistance. 5. Corporation Committee identifies funding needs of the Corporation and 2nd – 4thQtr develops a fund-raising plan to provide first year operating funds. This will 2014

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most likely be a combination of municipal support based on a per capita fee (for instance, at 25 cents per capita, if all communities participate, the current population would generate about $56,000 per year) and corporate contributions. If necessary, retain the services of a qualified economic development fund-raising firm such as National Community Development Services (NCDS) to undertake a major fund-raising program to provide a multi-year operating fund. 6. Prepare job descriptions of desired staff and establish a plan for hiring 3rdQtr 2014 them. 7. Identify logistical needs (space, equipment, supplies, etc.) and take action 3rdQtr 2014 to obtain necessary items. 8. When funding is adequate, begin the process of hiring staff and 3rd or 4thQtr establishing a Western Connecticut Economic Development Corporation 2014 (WCEDC) office. 9. Review award winning EDO websites for structure, content and functionality. Using these identified best practices, develop a WCEDC 4thQtr 2014 website. 10. Begin operations of WCEDC. Undertake other areas of work identified as a 1stQtr 2015 part of the WCEDC work program. and ongoing 11. Prepare a second year work program and budget and make sure adequate 3rdQtr 2015 staffing, funding and other resources are available. Responsibility Primary: Support: . WCEDA . HVCEO . Region’s communities . Major regional businesses Resources Needed Item Amount Possible Sources  Annual operating budget . HVCEO (includes personnel, rent, $250,000 . Corporate Funding: supplies, other office costs) donations  Website design $9,000 . Fund-raising  Programmatic costs Budget $50,000 program Other:  Office space, equipment, supplies  Volunteer time to serve on WCEDC Board Performance Measures . All legal documents for establishment of not-for-profit WCEDC filed by March 2014 . WCEDC capitalized for first year by November 2014 . WCEDC staffed and operational by February 2015 Timeframe This Initiative is:  Short-term  Intermediate-term  Long-term  Continuing (1-2 years) (3-5 years) (5+ years) Operations Establishment

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Additional Information For a brief discussion of the functions of a full-service EDO, see the following pages.

For information on economic development fund-raising businesses, see: National Community Development Services – http://www.ncdsinc.net/ Stellar Fundraising Executives – http://www.stellarfundraising.com/stellarfundraising.html Resource Development Group – http://www.rdgfundraising.com/

For the 2013 IEDC Gold Medal winning websites, see: Tullahoma Area Economic Development Corporation – http://www.tullahomatn.gov/tullahoma- area-economic-development-corp/ City of Waterloo, ON – http://www.waterloo.ca/en/business/economicdevelopment.asp Gilbert, AZ Office of Economic Development – http://www.gilbertedi.com/ Calgary, AB – http://www.calgaryeconomicdevelopment.com/

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Mark D. Waterhouse, CecD, FM, HLM President Garnet Consulting Services, Inc.

In a full service Economic Development Organization (EDO), or in some cases, a multi-organization economic development operation, programs and services generally fall into ten major categories (exclusive of general administrative requirements). These are:

1. Research and information 6. Market development 2. Marketing and promotions 7. Ombudsman and community organization 3. Financing and incentives 8. Technical assistance 4. Training and human resource programming 9. Strategic and long range planning 5. Site location assistance 10. Catalyst and convener.

The research and information role includes the acquisition, analysis and presentation of information that supports the economic development program itself or that may be of use to businesses in or considering the EDO’s service territory. Some research may be basic and an ongoing requirement, while other research may be customized to meet special needs. The research and information function supports many of the others discussed below. Available information must include both specific communities and the surrounding region.

Marketing and promotions includes both internal and external communications designed to inform others about the EDO’s service territory and why it is a good location in which to live, work and operate a business, as well as about the EDO and its services; internal marketing may provide information on the economic development process in general and its importance to the community and its residents. Marketing activities can be targeted at all types of economic activity, or can be of a more general and educational nature.

Financing and incentives programs include the provision of funding vehicles or other forms of non- cash assistance from governmental, conventional and other sources. Businesses frequently require or desire sources of start-up, working capital, fixed asset, emergency, or other financing. Incentives are a very fluid and wide-ranging topic, changing constantly as states and communities create new programs in an attempt to get a competitive edge. This is a primary area where the public and not-for-profit sectors’ role is to leverage targeted resources to obtain private sector investment.

Training and human resource programming has two primary components. The first is to assure that available training programs are providing the workforce and management skills necessary for today and tomorrow’s jobs and companies. The second component is a broader human resource focus dealing with employee needs such as day-care, public transportation and affordable housing, all of which can have important impacts on a community or region’s work force.

© Copyright 2001 – 2013. Mark D. Waterhouse. All rights reserved. Garnet Consulting Services, Inc. Phone: 860-379-7449 157 Park Road Fax: 860-738-2847 Pleasant Valley, CT 06063-4119 E-mail: [email protected] Functions of the Full Service Economic Development Program Page 157

Site location and infrastructure assistance historically has meant the provision of information on available land and buildings in the community and the transportation, utility and telecommunications infrastructure that serves them. This may be as simple as information on paper or in the computer, or may include site tours, assistance in finding architects and engineers, representation at planning and zoning or other regulatory meetings and similar services. Increasingly, it also entails the creation of space through the development of a business park, adaptive reuse of older facilities, creation of an incubator or speculative building, or other real estate development efforts including the funding or installation of support infrastructure. It is imperative that communities had sites that are “shovel-ready” for business development.

Market development includes activities aimed at helping existing businesses develop new products or find new customers or suppliers. Representative activities include “match-making” between companies with ideas or technologies and those that can use them; assistance in bringing key suppliers or customers of existing companies into the community or region; research related to new product or service lines; identification of unmet market niches existing businesses can meet or new businesses can be recruited for; assistance with export development; and the development of business clusters and networks.

Ombudsman and community organization services include those activities that bring the town’s business and economic development service providers closer together, and help to identify needs that should be addressed and opportunities that can be capitalized upon. It also includes providing a “guide service” through the bureaucracy that can have a major impact on the business climate and impression of business-friendliness that a community or region conveys to its customers.

Technical assistance is the hands-on provision of help required by companies or prospective entrepreneurs. This may entail assistance in preparing a business plan or loan application, arrangement of special services such as legal, accounting, insurance or construction related, or many other similar activities.

Strategic and long-range planning is the creation of both short-term work programs and longer range plans and visions. Increasingly, EDOs are being asked to provide significant input to their community or region’s long range comprehensive planning and vision development. The term “strategic visioning” is frequently used in this context to describe the process through which a community, region or service provider identifies what or where it would like to be at some point in the future, and provides the basis for obtaining or creating the resources necessary to get there. Within that context, the EDO must establish and manage an annual or short-term work program designed to meet community needs and provide a reasonable return-on-investment. If done properly, this strategic management process is never-ending and provides the linkage between strategic planning and strategic doing.

Catalyst and convener is the function that recognizes and capitalizes on the EDO’s knowledge of the location’s opportunities, challenges and resources, and the leadership role the EDO can play in bringing together and energizing the right resources to capitalize on opportunities, address challenges, and correct deficiencies.

© Copyright 2001 – 2013. Mark D. Waterhouse. All rights reserved. Garnet Consulting Services, Inc. Phone: 860-379-7449 157 Park Road Fax: 860-738-2847 Pleasant Valley, CT 06063-4119 E-mail: [email protected] Western Connecticut CEDS and Action Agenda Page 158

Objective #2: Regional Marketing Program Create a cost-effective regional economic development marketing program including a prospect servicing protocol and marketing activities such as a series of familiarization tours for site selectors. Supports Goals: 1. Economic Development Tools and Resources 3. Economic Expansion and Diversification Rationale for Initiative and Background Information A primary function of most regional EDOs is the coordination of a marketing program that eliminates the need for individual communities to go to the expense and effort of having their own. For the purposes of business recruitment, this can be a much more cost-effective approach because it recognizes that companies and site location consultants in a site search mode usually begin the process by looking at regions before looking at communities. Successful economic development marketing can be an expensive endeavor, usually requiring multiple methods and repetitive expenditures. Stated differently, one ad a year doesn’t accomplish much. Economic development marketing can take many forms. The most recent survey undertaken by Development Counsellors International, a firm that specializes in economic and community development marketing, the most common marketing techniques and their ranking by perceived effectiveness by survey respondents were:

Planned visits to corporate executives 57% Internet/website 55% Hosting special events 35% Trade Shows 35% Media Relations/Publicity 33% Advertising 16% Direct mail 15% Telemarketing 4%

In today’s economic development environment, two aspects of a marketing program are essential:  EDO websites have become the most important marketing tool. Site location consultants report doing about 70% of their first phase research from EDO websites; it is likely that individual companies that do not use such consultants use website information at least as much. The Western Connecticut region requires a first-class website focused on the region’s economic development programs and potentials. The purpose of such a website should not be limited to business recruitment – it should also support the region’s business retention, expansion and creation activities.  A critical element of such a website and the region’s ability to respond to requests for information is an up-to-date regional database of data and other information typically sought by businesses evaluating locations. This CEDS provides current information, but that will rapidly go out-of-date. The database must be maintained in a current fashion, using the data standards published by the International Economic Development Council (IEDC) as much as possible (see the section on Additional Information below). This Objective provides a recommended process for establishing and maintaining a cost- effective marketing program.

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Objective #2 Major Action Steps and Schedule Action Steps Schedule 1. Establish a WCEDC Marketing Committee. 3rdQtr 2014 2. Develop and maintain a regional economic development website (see 4thQtr 2014 Objective #1 for links to award-winning EDO websites). 3. Convene a meeting of municipal economic development staff and 4thQtr 2014 commissions to discuss most desirable forms of marketing assistance. 4. Based on the input from this meeting, the WCEDC Marketing Committee and 1stQtr 2015 staff should develop a proposed marketing plan. 5. Review this plan with the region’s communities, revise as necessary, adopt 1stQtr 2015 the plan, and begin implementation. 6. Using the data provided as part of this CEDS and the IEDC Site Selection 1stQtr 2015 Data Standards, create and maintain a regional database. and ongoing 7. Plan a regional Familiarization Tour for site location consultants and business 2ndQtr 2015 prospects. 8. Conduct the Familiarization Tour. 3rdQtr 2015 9. Undertake other aspects of the Regional Marketing Plan as appropriate. Ongoing Responsibility Primary: Support: . WCEDC Marketing Committee and Staff . Regional municipalities . Regional Chambers of Commerce . Regional venues included on Familiarization Tour Resources Needed Item Amount Possible Sources  Marketing Budget $50,000 per year . WCEDC Budget (included in Objective . Sponsorships and #1 operating budget) donations for Fam Tour Funding:  Website development $6,500 (included in Objective #1 budget)  Familiarization Tour $20,000 less contributions Other:  To be determined by specific elements of the marketing plan Performance Measures . WCEDC Marketing Committee established by May 2014 . Website operational by January 2015 . Marketing Plan adopted by February 2015 . Familiarization Tour conducted by September 2015 . First significant business prospect developed as a result of the marketing plan by December 2015 Timeframe This Initiative is:  Short-term  Intermediate-term  Long-term  Continuing (1-2 years) (3-5 years) (5+ years) Establishment

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Additional Information For information on IEDC’s Site Selection Data Standards, see: http://www.iedconline.org/web- pages/resources-publications/site-selection-data-standards/

For information on firms specializing in economic development marketing, see: Development Counsellors International (DCI) – http://www.aboutdci.com/ Atlas Advertising – http://www.atlas-advertising.com Burns Development Group – http://burnsdevelopmentgroup.com/economic_development.htm

For DCI’s 2011 report Winning Strategies in Economic Development Marketing, see: http://www.aboutdci.com/winning-strategies/

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Objective #3: Business Retention and Expansion Program Develop and operate an effective business visitation, relationship building, information collection, and service provision program. Supports Goal: 1. Economic Development Tools and Resources Rationale for Initiative and Background Information An essential part of any local economic development program is taking care of the businesses already in the community. An often quoted statistic is that about 75% of new business activity in a community comes from the businesses already there or within a short distance. This relationship was verified a number of years ago in research conducted for the American Economic Development Council by Arthur D. Little, Inc. with funding provided by the U.S. Economic Development Administration. A good Business Retention and Expansion Program has multiple purposes, most commonly:  Demonstrate commitment to existing businesses  Address firm-specific problems  Provide a unified business voice in legislative issues  Improve the business climate  Improve the quality of life  Create an early warning system of possible business problems  Stimulate local investment  Stop leakage of local dollars to other communities  Improve business profitability  Increase workforce productivity  Provide technical assistance  Facilitate networking & collaborative problem solving

Keeping informed about how local businesses perceive the local business climate is an essential aspect of economic development marketing. Periodic surveys by Development Counsellors International consistently find that “Dialog with industry peers” is one of the top two means by which business prospects obtain information on local business climates when evaluating potential locations (it ranked first in the most recent survey conducted in 2011). Similarly, expressions of dissatisfaction about a community’s business climate are a leading indicator of a company that may leave. A primary purpose of the EDO serving the Western Connecticut Region in the future should be to work with local economic development offices to rapidly assist area businesses that request assistance. A major component of an effective Business Retention and Expansion program is communications and relationship building. An element of this program has historically been a business visitation program during which a detailed survey form was completed. Increasingly, the visitation is being used for the primary purpose of relationship building with the survey being completed online. Visits need not be lengthy or focused on old-fashioned retention and expansion surveys. Rather, they should be short – no more than 15 minutes unless the business would like more time – and focused on maintaining the Town-Region-Business communications process. Surveys are often structured as a “Question of the Week” rather than a lengthy survey competed all at once. This has several advantages including minimizing the time required from busy business executives, and quickly generating many responses on the same issue, allowing

Western Connecticut CEDS and Action Agenda Page 162 rapid response when problems or opportunities are identified. A standardized format for maintaining information on companies and their characteristics, opinions and needs is necessary. The two most common tools are Blaine-Canada’s Synchronist program or the ExecutivePulse (E-Pulse) Business Intelligence software, both of which are in use across the country. Both are intended to streamline survey development, data collection and analysis and allow the users to look at customer data in different ways to make strategic decisions about how to best apply economic, community and workforce development resources. Northeast Utilities currently owns the license for E-Pulse statewide and makes this program available free of charge to communities and regions. In order to maintain an effective business contact program efficiently and effectively, an up-to- date list of e-mail addresses (an electronic mailing list) of all local businesses is needed so that mailings do not require the manual insertion of multiple e-mail addresses. Such lists can be segmented to allow different groupings for different purposes. Assembling such a master list that is not limited to members of the region’s Chambers of Commerce should also be part of this Objective. Objective #3 Major Action Steps and Schedule Action Steps Schedule 1. WCEDC invites representatives of all regional communities to discuss how a regional business retentions and expansion program 4thQtr 2014 should be operated so as to complement ongoing municipal efforts and provide the most valuable set of services. 2. WCEDC staff creates and maintains a regional electronic Business Database and Contact List and identifies desired data fields (e.g. 1stQtr 2015 and industry sectors, real estate brokers, economic development allies, ongoing etc.) for segmentation of mailings or other use of the list. 3. WCEDC staff researches software programs (Constant Contact, SurveyMonkey, Synchronist, E-Pulse) available to manage an 1stQtr 2015 effective Business Retention and Expansion program and obtains those selected for use. 4. Company or other appropriate information is continually added as it As needed becomes available. 5. WCEDC staff and Board develop a program of work for regular 2ndQtr 2015 communications with companies on the list. 6. WCEDC staff uses the list as needed for regular and special communications (for instance, notification of Bills at the Legislature Ongoing that companies may be interested in). 7. Business visitation program planned and implemented 3rdQtr 2015 8. As individual or shared business problems are identified, WCEDC staff and Board members take appropriate action, engaging all Start 3rdQtr 2015 and other appropriate allies, in particular, the host community of the ongoing business needing assistance as necessary. 9. WCEDC conducts quarterly roundtable conversations with representative members of the business community to assess the Quarterly starting in business climate and to identify any hidden business needs or 3rdQtr 2015 issues. 10. WCEDC continually monitors the region’s business conditions to Ongoing identify specific Business Retention and Expansion needs.

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11. With permission of the businesses involved, WCEDC promotes retention and expansion “success stories” to encourage other As appropriate businesses to make use of WCEDC services. Responsibility Primary: Support: . WCEDC staff and Board . Municipal chief elected officials . Municipal economic development staff and commissions Resources Needed Item Amount Possible Sources Constant Contact subscription $180 - $360 per . WCEDC budget year . Northeast Utilities Synchronist or E-Pulse Synchronist for E-Pulse subscription $3,200 join fee $800 annual fee Funding: E-Pulse free through Northeast Utilities SurveyMonkey $204 - $300 per year Other: Staff time to administer Other items to be determined based on needs identified Performance Measures . Regional electronic Business Database and Contact List established by February 2015 . Business communications plan established by May 2015 . Business visitation program begun by July 2015 . First business retention or expansion “success story” by WCEDC announced by September 2015 Timeframe This Initiative is:  Short-term  Intermediate-term  Long-term  Continuing (1-2 years) (3-5 years) (5+ years) Establishment

Additional Information For information on Blaine, Canada Ltd.’s Synchronist Business Model software, see: http://www.blanecanada.com/product_synchronis t.html For information on the Executive Pulse Business Intelligence system, see: http://www.executivepulse.com/

For information of Northeast Utilities’ sponsorship of E-Pulse in Connecticut, contact John O’Toole at 860-665-5140 or [email protected]

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Objective #4: Regional Economic Development Infrastructure Plan and Improvements Develop and implement a regional infrastructure plan specific to supporting economic development. Supports Goals: 1. Economic Development Tools and Resources 4. Creating Great Places Rationale for Initiative and Background Information The term Infrastructure, as used here, means the Western Connecticut Region’s transportation, utilities, telecommunications, and stormwater management facilities and services. As a recognized Regional Planning Organizations (RPOs) in Connecticut, the Housatonic Valley Council of Elected Officials maintains detailed regional transportation plans, as well as many other infrastructure related plans and studies. Communities in the region include some level of transportation, utility and stormwater management planning in their Plans of Conservation and Development (POCDs), and often in municipal Capital Improvement Plans. Connecticut Light & Power and a number of telecommunications firms are constantly identifying necessary system improvements. The Housatonic Railroad is planning major improvements in rail facilities and services which will impact the area. Despite all this planning, the region lacks a comprehensive, region-wide infrastructure plan that focuses on economic development and blends all ongoing planning efforts regarding roads, rail, general aviation airports, electric service, natural gas service, public water and sewer services, telecommunications, and stormwater management into a cohesive plan, and identifies current and future infrastructure needs that require cost-effective planning and response. This Objective is aimed at providing that comprehensive regional infrastructure plan that supports the region’s economic development efforts. Objective #4 Major Action Steps and Schedule Action Steps Schedule 1. In association with HVCEO, establish a WCEDC Regional Economic Development Infrastructure Plan Work Group and enlist necessary 4thQtr 2014 participants. 2. Develop a detailed outline of the Regional Economic Development 4thQtr 2014 Infrastructure Plan contents. 3. Establish a work program and schedule for preparing the plan. 4thQtr 2014 4. Carry out any necessary research on similar plans from other areas. 1stQtr 2015 5. Carry out any necessary research on regional conditions, plans, 1st – 2ndQtrs 2015 challenges, and related matters. 6. Develop a preliminary list of economic development infrastructure needs requiring immediate attention and those that are less urgent 3rdQtr 2015 but desirable. 7. Develop a Regional Economic Development Infrastructure Capital 4thQtr 2015 Improvement Plan and Budget. 8. Begin identification of funding resources for highest priority 4thQtr 2015 infrastructure needs. 9. Apply for or arrange funding as necessary and available. 1stQtr 2016 and ongoing 10. Implement priority infrastructure improvements. 2ndQtr 2016 and

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ongoing 11. Continue the process as necessary with annual Regional Economic Development Infrastructure Capital Improvement Plans and As necessary Budgets. Responsibility Primary: Support: . HVCEO . Regional Municipalities . WCEDC Regional Economic Development . CTDOT and other applicable state Infrastructure Plan Work Group and staff departments . Utility providers . Housatonic Railroad Resources Needed Item Amount Possible Sources Project support $10,000 . HVCEO Plan Implementation Unknown . WCEDC budget Funding: . State Grants . EDA,RDA or other Federal Sources Other: . WCEDC Staff and volunteer time . Municipal officials time Performance Measures  Western Connecticut Regional Economic Development Infrastructure Capital Improvement Plan and Budget issued by December 2015 . First infrastructure improvements included in Western Connecticut Regional Economic Development Infrastructure Capital Improvement Plan completed by June 2017 Timeframe This Initiative is:  Short-term  Intermediate-term  Long-term  Continuing (1-2 years) (3-5 years) (5+ years) Implementation Initiation Implementation begun

Additional Information For examples of Regional Infrastructure Plans, see: Richmond, VA region: http://www.richmondregional.org/planning/green%20infrastructure.htm Southern Africa: http://ridmp-gis.org/ Queensland, Australia: http://www.dsdip.qld.gov.au/local-area-planning/priority-infrastructure- plans.html

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Objective #5: Future Skills Need Task Force Establish a Future Skills Needs Task Force to continually identify new skills that will be needed by the region’s employers and develop training programs or other methods to provide those skills when they are needed. Supports Goals: 2. Workforce 3. Economic Expansion and Diversification Rationale for Initiative and Background Information A common problem for workforce educators around the country is developing a clear understanding of skills local employers will need in the future, early enough so that programs can be developed to teach those skills in preparation for when they are needed. This applies to both new workers entering the labor force and incumbent workers whose skills requirements are changing. The problem is compounded in areas such as Western Connecticut that have a diverse economy, and therefore a wide range of skill needs that may be constantly changing. This Objective addresses that problem by building on past efforts, particularly of the Northwest Regional Workforce Investment Board, and establishing a business-education-government consortium to continually monitor the workforce needs of employers, in particular entry level and incumbent worker training, and nimbly responding to those needs through effective workforce training and related programs. The future needs of the region’s employers should drive this Objective – not the current capabilities of the educational system. Objective #5 Major Action Steps and Schedule Action Steps Schedule 1. In conjunction with the Northwest Regional Workforce Investment Board, create a Western Connecticut Future Skills Need Task Force 3rdQtr 2014 and enlist necessary participants. 2. Develop a draft Employer Workforce Needs Survey. The survey form should allow segmentation of responses by business type and 4thQtr 2014 size. 3. Select a method for survey distribution and response analysis. The survey response analysis system should also allow segmentation of 4thQtr 2014 responses by business type and size. 4. Using the master list of regional businesses developed as part of Objective #3, select a representative sample of employers to test 4thQtr 2014 the survey form and response system. 5. Make any necessary modifications to the survey and response 1stQtr 2015 analysis system. 6. Distribute the survey to the master list of regional employers or a 1stQtr 2015 selected subset. 7. Analyze survey results to identify common problems and areas of 1st and 2ndQtrs 2015 need. 8. Identify necessary responses to areas identified as requiring 2ndQtr 2015 and attention and take action as appropriate. ongoing 9. Continue the process as needed. Ongoing

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Responsibility Primary: Support: . Northwest Regional Workforce Investment . Regional Chambers of Commerce Board . Regional economic development staff and . Western Connecticut Future Skills Need EDCs Task Force and staff . Regional employers Resources Needed Item Amount Possible Sources Funding: Project support $1,000 . NRWIB budget Project implementation TBD . WCEDC budget Other:  Staff and volunteer time Performance Measures . Draft Employer Workforce Needs Survey developed by November 2014 . Final Employer Workforce Needs Survey developed by January 2015 and distributed by February 2015 . Survey results analyzed by May 2015 . Response Action Plan developed by July 2015 . Initial employers identified for assistance serviced by November 2015 Timeframe This Initiative is:  Short-term  Intermediate-term  Long-term  Continuing (1-2 years) (3-5 years) (5+ years)

Additional Information For examples of Employer Workforce Needs Surveys, see: Washington: http://www.wtb.wa.gov/Documents/2010_Employer_Needs_Summary.pdf Hampton Roads, VA region: https://docs.google.com/gview?url=http://www.opp- inc.org/UserFiles/Opportunity+Inc-Employer+Survey-Report-NEW%282%29.pdf Hidalgo/Starr/Willacy Counties, TX: http://www.surveymonkey.com/s.aspx?sm=tLPEDz3_2fXp33p2bJ1qYtxg_3d_3d Iowa: http://www.iowaworkforce.org/lmi/labsur/statewideneedsassessmentsurveyweb.pdf

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Objective #6: Sector and Cluster Advisory Councils Create sector/cluster Advisory Councils for target sectors to identify tools, programs, and policies necessary to stimulate growth in those sectors and clusters, including:  Advanced manufacturing  Value-added food manufacturing  Wellness and life sciences  Retail  Financial services  Logistics/distribution/wholesaling  Arts & culture Supports Goal: 3. Economic Expansion and Diversification Rationale for Initiative and Background Information As with most communities, particularly in the current sluggish economy, the Western Connecticut Region’s resources for economic development marketing are limited. Many communities and regions have found it effective to focus their marketing efforts toward a limited number of industries, clusters, or operational types that have been identified as those that offer the best economic development opportunities based on their match with the region’s locational assets. The sectors identified above are those that currently either exist or have a nucleus that has expansion capability in the region. An initial step in developing a business attraction program is the creation of Advisory Councils for each of the region’s target industries. These councils would be comprised of companies in the region, the higher educational institutions in the region (where appropriate), state level advisory groups (for instance, the Connecticut Council on Advanced Technology – CCAT), and representatives from the region’s school districts. Area commercial and industrial realtors could serve as advisors to these groups on an as needed basis. The role of these Advisory Councils is to identify common needs that cut across multiple companies; find or create effective responses to those needs; foster stronger supply chain relationships; and promote joint ventures and technology transfer. Objective #6 Major Action Steps and Schedule Action Steps Schedule 1. Establish a Western Connecticut Sector and Cluster Advisory 3rdQtr 2014 Program Committee. 2. Identify those sectors or clusters for which Advisory Councils will be 3rdQtr 2014 established first. 3. Identify businesses in the region that are in each sector or cluster. 3rdQtr 2014 4. Develop a Purpose Statement describing the mission of each Advisory Council. The general purpose of this Objective is to identify needs and opportunities for growing existing or emerging business 3rdQtr 2014 sectors or clusters in the region. Work undertaken by the Advisory Councils may be of importance to broad sectors or clusters, or specific to individual companies. 5. Recruit a business person from the sector or cluster to chair each 4thQtr 2014 Advisory Council. 6. Identify 10 to 15 businesses that should be part of each Advisory 4thQtr 2014 Council. 7. Schedule an organizational meeting of each Advisory Council. 4thQtr 2014

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8. At the organizational meeting, each Advisory Council should identify 4thQtr 2014 the key elements of its own work program. 9. The Advisory Council as a whole or subcommittees should identify specific work to be carried out on each of the elements of the work program and any necessary resources. Elements might include short and long range strategies by each Council for a target industry development and recruitment program, including assets for the industry in the Western Connecticut Region; challenges that 4thQtr 2014 – 1stQtr need to be addressed; marketing messages to be created; best site 2015 and building opportunities for the industry; identification of remedial actions needed to enhance the Region for the specific sector or cluster; identification of trends in the industry that favor Region and those that do not; and identification of the best functions within each industry that would be best for the Region to target. 10. Obtain necessary resources and implement the recommendations of 1stQtr 2015 and the Advisory Councils. ongoing 11. Continue Advisory Council process and add additional sectors or As necessary clusters as appropriate. Responsibility Primary: Support: . Western Connecticut Sector and Cluster . Regional employers Advisory Program Committee and staff . Regional Chambers of Commerce Resources Needed Item Amount Possible Sources Funding: . Program planning  None . WCEDC budget . Program implementation  TBD . Business support Other:  Performance Measures . Western Connecticut Sector and Cluster Advisory Program Committee established by September 2014 . Sector and Cluster Advisory Councils established and operational by November 2014 . First Advisory Council recommendations issued by March 2015 . Implementation of Advisory Council recommendations begun by June 2015 Timeframe This Initiative is:  Short-term  Intermediate-term  Long-term  (1-2 years) (3-5 years) (5+ years) Continuing

Additional Information For articles related to business sector and cluster advisory group, see: http://www.cluster.org/business-innovation/cluster-industry-advisory-board http://repository.tamu.edu/handle/1969.1/ETD-TAMU-2012-05-11029 http://www.birminghamsciencecity.co.uk/about-us/business-groups/business-clusters/

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Objective #7: Western Connecticut Cultural Center Create a regional multi-purpose cultural center including space for the display of art as an attraction and destination. (Consider using the Charles Ives identity in the same fashion as the Rockwell Museum in Stockbridge, MA.) Supports Goal: 3. Economic Expansion and Diversification 4. Creating Great Places Rationale for Initiative and Background Information The Western Connecticut Region is filled with cultural resources that contribute to the area’s quality of place and provide the nucleus of a business cluster that can be grown (see Objective #6). Examples include the Danbury Music Centre, Western Connecticut State University’s School of Visual and Performing Arts (which has a major facility with performance spaces, studios, etc. opening next fall), and a sizable Performance Art venue in Newtown being developed by the 1214 Foundation. However, the region is lacking a major cultural venue that has name recognition and serves as a major focal point for tourists and others looking for such a destination. The purpose of this Objective is to establish a nationally and perhaps internationally known Cultural Center that contributes to the cultural life of the region, serves as a major tourist destination, and provides an additional impetus for growth of the arts and culture as a business cluster. Development of such a center will require a detailed analysis of already existing facilities to identify an unmet need, rather than to create something new that competes with existing venues and programs. This Objective can take many possible directions – there are many different forms of cultural center – and will require careful planning because a major capital investment will likely be required. One suggestion for establishing name recognition is to capitalize on the Charles Ives name similar to the Norman Rockwell Museum in Stockbridge, MA. Such positioning would honor an internationally renowned composer who came from the region. It should be a center piece for creativity in the region, particularly in music, with space for instruction, studio space, programming, and an incubator for new and exceptional talent. It may also include some mix of space for conferencing and commercial purposes related to the arts. This Objective sets forth an initial process for beginning the planning for such a Western Connecticut Cultural Center, with the understanding that this is likely to be a long-term process that will define itself as it progresses. For that reason, the Action Steps listed below are limited and intended to allow maximum flexibility. Objective #7 Major Action Steps and Schedule Action Steps Schedule 1. WCEDC establishes a Western Connecticut Cultural Center Task 1stQtr 2015 Force. 2. Invite all existing arts and culture organizations operating in 1stQtr 2015 Western Connecticut to participate in the Task Force. 3. At an initial meeting of the Task Force (and additional meetings if necessary), discuss: . how a new Cultural Center can best complement the ongoing activities of existing arts and culture organizations 1st – 2ndQtrs 2015 . desirable elements of a Western Connecticut Cultural Center . the necessary tasks to be undertaken to evaluate the idea of creating such a Cultural Center and implementing the concept if

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found feasible . a committee structure or other approach for carrying out necessary work . other individuals or organizations that should be part of the Task Force . resources needed to carry out necessary work and means of obtaining those resources . other items as necessary 4. Carry out the work program established by the Task Force. 2nd – 4thQtrs 2015 5. Based on the findings and recommendations of the Task Force, take 1stQtr 2016 and appropriate actions. continuing Responsibility Primary: Support: . WCEDC Western Connecticut Cultural . Northwest Connecticut Arts Council Center Task Force . Western Connecticut Convention and . Cultural Alliance of Western Connecticut Visitors Bureau Resources Needed Item Amount Possible Sources Program planning TBD . WCEDC budget Program implementation . Arts & cultural Funding: organization support TBD . Business donations . State and federal grants Other:  Performance Measures . Western Connecticut Cultural Center Task Force established by March 2015 . Task Force work program developed and underway by May 2015 . Western Connecticut Cultural Center Feasibility Study completed by December 2015 . If found feasible, Western Connecticut Cultural Center developed and operating by 2018 Timeframe This Initiative is:  Short-term  Intermediate-term  Long-term  Continuing (1-2 years) (3-5 years) (5+ years) Planning Development Operations

Additional Information For information on Cultural Centers, see: http://www.nrm.org/ www.slccfa.org/wp-content/uploads/CFSP-Criteria.docx http://kulcher.org/ http://regionalculturalcentre.com/ http://racc.org/ http://www.broward.org/Arts/GeneralInformation/ArtsParks/Miramar/Pages/Default.aspx

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Objective #8: Regional Main Street and Complete Streets Initiatives Collaborate with the Connecticut Main Street program to establish and operate a regional Main Street program to support Town and village center revitalization and vibrancy with a focus on TOD. Establish a regional Complete Streets initiative with a focus on Non-Motorized Transportation. Supports Goal: 4. Creating Great Places Rationale for Initiative and Background Information Downtown’s and village centers are critical elements of any community or region’s sense of place and appearance to the outside world. They provide the hubs for provision of necessary goods and services for residents (a quality of life element) as well as set the tone and level of expectation for visitors (a quality of place element). The Western Connecticut region has multiple downtowns, each with differing characteristics and qualities. While improvement efforts have been conducted in many, most still need attention to keep a positive trend moving forward. One of the best tools to assist with necessary downtown and neighborhood or village center improvements and related recruitment of more retail and commercial businesses into those downtowns is the National Main Street model. According to the Connecticut Main Street Center’s website, currently only two of the region’s ten communities – Danbury and Newtown – are affiliated with the state Main Street program. It is likely that the non-participant status of the region’s other communities is due in part to the costs of running the program, in particular the salary and benefit costs of the Main Street manager. The Western Connecticut Region should create a “Regional (or Mobile) Main Street Program” that provides services to multiple downtown areas. The region should seek to have this program incorporated into the Connecticut Main Street program as a special regional program, but if this is not possible, the region should run its own Main Street program independently but in accordance with national and state Main Street guidelines. While the possible focus of such a program can point in many directions, two in particular have already been identified as important: the promotion of more transit-oriented development (TOD) throughout the region, but particularly in downtowns and village/neighborhood centers and increasing participation in the national Complete Streets program, with an emphasis on non-motorized transportation. The Complete Streets program, an initiative of Smart Growth America and the National Complete Streets Coalition, is intended to make roadways safely usable not only for motor vehicles, but also for pedestrians, bicyclists, and public transportation. As described on the Complete Streets website, the program makes it easy to cross the street, walk to shops or other destinations, bicycle to work, and have buses that run on time. Legislation (Public Act 09-154) applicable to state and municipal projects passed in Connecticut allows for accommodating all users of roads and Connecticut’s complete streets law is viewed as the second strongest state complete streets law in the country. Objective #8 Major Action Steps and Schedule Action Steps Schedule 1. Contact the Connecticut Main Street program to explore the possibility of establishing a Regional Main Street Program for the Western 4thQtr 2014 Connecticut region. 2. Establish a budget for the Regional Main Street Program including the 1stQtr 2015

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cost of a full time Regional Main Street Director. 3. Contact all municipalities in the region that have a downtown area suitable for a Main Street approach to ascertain their interest in 1stQtr 2015 participating in a Regional Main Street program. 4. Depending on the level of interest by communities, establish a per capita funding schedule and obtain municipal funding commitments to 1stQtr 2015 provide adequate first year funding. 5. For each municipality participating in the Regional Main Street Program, 2nd – 3rdQtrs 2015 establish a local Main Street Committee. 6. Assist local Main Street Committees in obtaining 3-year funding 4thQtr 2015 – commitments from downtown business and property owners, other 1stQtr 2016 businesses and other sources. 7. Hire the Regional Main Street Director. This position might also be part 1stQtr 2016 of an existing Main Street program. 8. Conduct Main Street training programs in each of the participating 1st – 2ndQtrs 2016 communities. 9. Create downtown improvement strategies based on the Main Street 4 Point Approach (Organization, Promotion, Design, and Economic 2nd – 3rdQtrs 2016 Restructuring). 10. Provide necessary services to assist communities in implementing their As needed strategies. Regional Complete Streets Program 11. Update the HVCEO Regional Bicycle Plan and obtain municipal commitments to implement it. Encourage the use and concepts of 2nd-3rdQtr 2014 Bicycle Friendly Community, Bicycle Friendly Business and Bicycle Friendly University. 12. Following the completion of the Regional Bicycle Plan, establish a 3rd-4th Qtrs 2014 Western Connecticut Complete Streets Coalition. 13. Working in cooperation with the Regional Main Street Program, the Western Connecticut Complete Streets Coalition will design and conduct a Regional Complete Streets Workshop. Invite the areas chief elected officials, State and local officials responsible for streets and sidewalks, 1st-2nd Qtrs 2015 public transportation providers, bicycle and pedestrian advocates, representatives of area businesses and institutions, and other people found to be interested. Include the study of pedestrian requirements. 14. The Western Connecticut Complete Streets Coalition will seek commitments from area communities, businesses and institutions in the 3rd-4th Qtrs 2015 region to implement the recommendations of the regional Complete Streets workshop. 15. Support local efforts to create the Covered Bridge Trail as part of a Western New England Greenway stretching from southern Connecticut On going to the Canadian border. 16. Identify other necessary related efforts on an ongoing basis. As needed

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Responsibility Primary: Support: . WCEDC . Municipal Managers/Chief Elected Officials/Planning . HVCEO Officials and Boards . CT Main Street Program . Northwest Connecticut Complete Streets Coalition Resources Needed Item Amount Possible Sources . Regional Main Street Director . WCEDC Budget $85,000 salary, benefits and operating costs . CT Main Street Funding: . Complete Streets Workshop . ConnDOT $1,500 support . Other implementation costs TBD Other: . Office space . Volunteer time for local Main Street Committees and Complete Streets Program Performance Measures . Connecticut Main Street program contacted to explore the possibility of establishing a Regional Main Street program by Oct 2014 . Budget for the regional Main Street program established by January 2015 . Per capita funding schedule created and municipal funding commitments obtained for first year funding by February 2015 . Local Main Street Committees established in participating communities by July 2015 . 3-year funding commitments obtained from downtown business and property owners, other businesses and other sources in participating communities by January 2016 . Regional Main Street Director hired and regional Main Street Program operational by February 2016 . Western Connecticut Complete Streets Coalition established by May 2016 . Main Street training programs conducted in each of the participating communities by June 2016 . Western Connecticut Complete Streets Workshop conducted by June 2016 . Downtown improvement strategies created in participating municipalities by September 2016 . Necessary services provided to assist communities in implementing their strategies – ongoing . Completion of Regional Bicycle Plan by June of 2014. . Six of the region’s 10 communities adopt the bike plans and Complete Streets program by October 2016 . All of the region’s communities adopt the bike plans and Complete Streets program by October 2017 Timeframe This Initiative is:  Short-term  Intermediate-term  Long-term  Continuing (1-2 years) (3-5 years) (5+ years)

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Additional Information For information on the National Main Street Program, see: http://www.mainstreet.org/

For examples of regional Main Street programs, see: http://www.gflrpc.org/WECMainStreetProgram.htm http://www.phlf.org/programs-and-services/main-and-elm-street-programs/freeport-leechburg- apollo-regional-main-street-program/ http://mainstreetslycoming.org/?page_id=177 For information on the Complete Streets program, see: http://www.smartgrowthamerica.org/complete-streets?key=28455713 http://blog.tstc.org/2010/10/01/connecticut-complete-streets-policy-now-in-full-effect/ http://www.ct.gov/dot/cwp/view.asp?a=3531&q=531678

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Regional Projects

Prioritization Criteria As part of the preparation of this CEDS, the Western Connecticut CEDS Coordinating Committee developed and officially adopted a set of evaluation criteria and a scoring system for use in identifying those projects that the region currently considers its top priorities. The criteria and scoring system were developed prior to soliciting project nominations so there would be broad agreement on the criteria before any projects were discussed. The criteria and scoring system reflect both those of importance to the U.S. Economic Development Administration (EDA) as well as to the region’s leadership.

Solicitation Process The criteria were then incorporated into a “Western Connecticut CEDS Project Solicitation Form” which was approved by the Coordinating Committee for dissemination. This form also showed the scoring system so that respondents would be aware of how their submissions would be scored. This Project Solicitation Form, along with a “Project Solicitation Instruction Sheet” was then provided to the Housatonic Valley Council of Elected Officials and to each of the region’s ten (10) communities and other organizations involved in the region’s economic development. Six weeks was allowed for submission of projects so that communities would have adequate time for any required meetings.

Master List of Suggested Projects Seventeen (17) projects were submitted of which fifteen (15) were submitted from the individual communities; two were submitted by HVCEO. These are listed in Figure 138. The project consultant prepared a preliminary scoring of the projects using the previously established criteria and scoring system incorporated into an Excel spreadsheet format. These evaluation criteria were:  Status of the proposed project (Ready-to-go or Planning Stage)  Clarity of the vision, scope and details of the project  Feasibility of the project within market, budgetary, regulatory or other measures  Project budget and supporting documentation (Firm, Estimated or Unknown)  Status of project funding (Already committed, Expected to be committed, or Uncommitted; percentage of non-EDA funding Significant, Moderate or Small/none)  Status of environmental reviews (Completed, In-process, Planned, Not considered yet, Not applicable)  Control of the project area (All, Some, None, Not applicable)  Status of land use approvals  Regional economic impact  Number of jobs either saved or created  Community/organizational ranking of project

This preliminary scoring was then reviewed and refined by the CEDS Steering Committee at a meeting held on October 24, 2013.

Vital (Priority) and Other Projects As a result of the scoring review, the Steering Committee and full CEDS Committee made the decision to consider all seventeen (17) projects as Vital, due to the small number, close scoring,

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Figure 138: Western Connecticut CEDS Priority Projects

Vital (Priority Projects Capital Projects Individual Community Projects  Bethel – Expansion of Clarke Business Park  Bethel – TOD Capital Improvements  Bethel – Water System Improvements  Bethel – Stony Hill Sewer Project Phase IV  Brookfield – Four Corners Revitalization Plan  Brookfield – Lower Route 202 Traffic Improvements  Brookfield – Still River Greenway  Danbury – West Side Route 6 Traffic Improvements  New Milford – Century Brass Remediation/Demolition  New Milford – Still Meadows Business Park  Newtown – Hawleyville Sewer Extension  Newtown – Fairfield Hills Campus Infrastructure  Redding TOD – Intermodal Transportation Facility  Ridgefield TOD – Capital Improvements  Ridgefield – Abatement and Demolition of Former Schlumberger Building Complex Brownfield’s Project

Multi –Community/Regional Projects  Danbury – I-84 Widening Danbury Branch – Commuter Rail Improvements 

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Figure 139: Summary of Regional Vital (Priority) Projects

Project Name Project Project Description Jobs Estimated Total Non-EDA Location Construction Cost Funding Permanent (FTE) Sources & Part Time Individual Community Projects Expansion of Clark Business Park Bethel Development of 20 acres with 300 permanent Unknown at this Unknown at infrastructure. time this time TOD Capital Improvements Bethel Potential development of 133 acres on Unknown at this Unknown at this Unknown at east and west side of train track as a time time this time TOD with initial development beginning with train parcel and property on east side. Water System Improvements Bethel Repairs, maintenance and upgrade of Unknown at this $4,860,000 $14,795 the municipal water system to meet the time current demand of water supply, improve water quality, and improve reliability to customers. Stony Hill Sewer Project Phase IV Bethel Construction of final segment of sewers 10-12 construction $1,700,000 Unknown at to service 80 homes and parcels of land Permanent jobs this time for commercial development. unknown at this time Four Corners Revitalization Plan Brookfield Recreation of a visually and 24 construction $2,400,000 $540,000 aesthetically pleasing "downtown" 153 permanent destination with a distinctive identity offering places to live, work, shop, eat, find entertainment, & cultural enrichment complemented by trail access to the Still River. Project involves infill and new development with a proposed relocation of the Brookfield Library. Lower Route 202 Traffic Improvements Brookfield A combination of road configuration Unknown at this $10,000,000 Unknown at improvements, Complete Street time this time improvements and other roadway items supporting the Berkshire Industrial Park and second largest commercial area in

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Project Name Project Project Description Jobs Estimated Total Non-EDA Location Construction Cost Funding Permanent (FTE) Sources & Part Time the region. Still River Greenway Brookfield Creation of a segment of a multi-modal 23 construction $2,300,000 $2,300,000 path on the Still River Greenway for walking and biking along the Still River. West Side Route 6 Traffic Danbury Widening of Route 6 from Kenosia Unknown at this $25,000,000 Unknown at Improvements Avenue easterly to I-84 Exit 4, time this time updating of traffic signals to be interconnected and the provision of future turning lanes. Century Brass Remediation/Demolition New Milford Remediation & demolition of former 10-15 construction $3.3-$4.3 million Unknown at Century Brass facility on 72 acres 120 permanent this time 60-90 other Still Meadows Business Park New Milford Subdivision of 18 acre parcel into 2 Unknown at this Unknown at this Unknown at acre lots and installation of sewer & time time this time water Hawleyville Sewer Extension Newtown Extension of a sewer line from west to 32 construction $5,000,000 $5 million east and (pump stations) to serve the 1,500 properties along the Rt.6/25 corridor in 1,400 FTE Hawleyville. 100 PT Fairfield Hills Campus Infrastructure Newtown The Town is working to redevelop the 150 construction $2,000,000 $1 million former state hospital property into a 200+ multi-function campus combining civil, 200 FTE recreational and private uses. The 100 PT campus was developed in the 1930s - 1950s and needs several upgrades to the infrastructure serving the campus. TOD Intermodal Transportation Facility Redding The construction of the new Inter 600 construction $43,518,098 $12,044,096 Modal Transportation Facility in 1,451 permanent Georgetown, CT will leverage 1,451 FTE approximately $300 million of private investment through the implementation of the Georgetown Redevelopment Project, a Transit Orientated

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Project Name Project Project Description Jobs Estimated Total Non-EDA Location Construction Cost Funding Permanent (FTE) Sources & Part Time Development project containing a mix of uses, including retail, office, residential, performing arts center, and the administrative headquarters for the Weir Farm National Park, all designed in a pedestrian friendly manner and connecting to the adjacent historic Georgetown village. TOD Capital Improvements Ridgefield Multi-modal transportation Unknown at this $11,355,000 Unknown at improvements to support commercial time this time development around the Branchville Railroad Station Brownfields Abatement & Demolition of Ridgefield The Town of Ridgefield proposes to 25 construction $960,000 $644,000 Former Schlumberger Building Complex complete abatement and demolition 10 FTE activities on the site of a former research facility it has acquired. Multi-Community/Regional Projects I-84 Widening Danbury ConnDOT has proposed capacity Unknown at this $761,000,000 $761,000,000 expansion of I-84 in Danbury. time Danbury Branch Commuter Rail Danbury Electrification of Danbury Branch Unknown at this $750,000,000 Unknown at Improvements Commuter Rail Line time this time

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Implementation, Evaluation and Cooperation

Implementing the CEDS Strategic planning is relatively easy and inexpensive; implementation requires much more effort and resources. Nonetheless, nothing will happen as a result of this CEDS unless the Western Connecticut region transitions from strategic planning to strategic doing.

The success of this Comprehensive Economic Development Strategy will ultimately depend upon the broad coalition of businesses, local governments, non-profit organizations, and individuals who have worked for more than a year to create the plan, continuing to work together to implement it. In part, this reflects the fact that companies considering locations focus first on a broader region. If they are impressed with the region, they will then consider individual communities in the region.

Usually, no single entity has the statutory power, political influence, staff capacity, or other necessary resources to singlehandedly implement the objectives, initiatives and projects included in this CEDS. In this regard, economic development is definitely a team sport. For this reason, each proposed objective/initiative identifies both primary and supporting organizations that can serve as partners and resources to achieve these goals and objectives.

A critical component of any implementation effort will be leveraging the resources and influence of both the public and private sectors – and often through public-private partnerships – in pursuit of the region’s goals. Developing the political support and obtaining the funding necessary for these investments will require the business community and general public to voice their support for these key projects. Likewise, initiatives spearheaded by non-profit and for-profit organizations may require the support of elected officials and perhaps legislative changes at the local or state level. Only by working together can these groups achieve the goals the region has selected.

As the most likely organization to oversee implementation of this CEDS, the Western Connecticut Economic Development Alliance (WCEDA), will require substantial support. If economic development is important to the region, a broad commitment must be made to provide the management resources necessary for implementation. The area’s regional planning organization, the Housatonic Valley Council of Elected Officials, is positioned to play an important role in generating widespread municipal support for moving forward with the implementation of the CEDS.

Economic development rarely occurs for free. There are too many other communities and regions competing for a limited amount of business investment. In order to have a chance at attracting any of that investment, the Western Connecticut region – in particular its municipalities, but also its businesses – must invest in its economic development program. The return on investment will not occur without the investment itself.

It is recommended that the major players meet quarterly to review the work accomplished for the previous quarter and to state the proposed work for the coming quarter. A brief written report should be drafted and posted on the website.

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Annual Performance Reports An Annual Performance Report is required and must be submitted to EDA. It is the opportunity to update the project list and eliminate ones that have been completed and to add new ones. Any updated CEDS Performance report resulting in major change must be made available for public review and comment.

Evaluation and Performance Measures The success of this CEDS will be evaluated on two levels.

. First, each objective/initiative will be monitored and evaluated to determine whether or not it was successful or is making progress in achieving its desired outcome in a timely fashion. . Second, the entire strategy will be evaluated to determine if the collective impact of the objectives/initiatives has produced meaningful changes in the region’s economy and well- being.

Each objective/initiative proposed in the CEDS contains a timeframe and performance measures that will be used to gauge the objective’s success. The performance measures establish reasonable and objective benchmarks by which to determine if the intended outcomes of the objective are being met or have been achieved. In recognition of the region’s resource limitations, performance measures are purposely conservative. The performance measures will be useful as a guide to the agencies implementing these objectives to help them make reasonable and meaningful progress.

The success of the CEDS as a whole will be measured by whether the sum of the actions undertaken has produced important change in the region’s economic climate, making the region more competitive, its businesses more successful, its residents better employed, and its communities more fiscally healthy.

Key indicators of employment, wages, capital investment, number of businesses gained/lost, Grand List growth, and other measures will be tracked each year to evaluate the state of the region’s economy and help measure the effectiveness of the CEDS initiatives. These indicators will also serve as an alert to emerging problems that should be addressed and require an adjustment to the region’s CEDS during its annual updating.

Examples of Performance Indicators are shown in Figure 140. These are subject to refinement by WCEDA during implementation.

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Figure 140: Economic Performance Evaluation Metrics

Metric Annual Goal This Quarter Year-to-Date Number of New Businesses Businesses Attracted Businesses Created Number of Business Expansions New Jobs Created Jobs Retained New Capital Investment Annual Increase in Grand List Number of Businesses Lost Jobs Lost Net Jobs Created/Retained

Business Gains and Losses

Business Gains Location Firm Name Business Year Square Capital Jobs Type Established Footage Investment Created or Added Added Expanded

Business Losses Location Firm Name Business Year Closed Square Capital Jobs Type or Footage Investment Lost Downsized Vacated Lost

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Relationship of CEDS to other documents including consistency with the State’s economic development priorities

The following state or regional documents were part of the foundation for creating this CEDS: State of Connecticut Economic Development Plan, 2009

The Connecticut Department of Economic and Community Development was in the process of preparing a new state-level economic development plan and the fundamentals of this new strategy, as outlined in presentations by DECD Commissioner Catherine Smith are:

• Build on our established strengths and emerging sectors; differentiate based on our key assets to achieve these goals: – Retain and grow our existing base of jobs – Foster innovation and new business development – Grow and enrich our talent pool – Build vibrant neighborhoods and communities – Ensure quality housing at a broad range of prices – Build a brand for a the state which drives economic growth – Motivate and engage our employees and partners

This new plan will replace one adopted in 2009 that contained the following Vision Statement:

Connecticut will be a vibrant, diverse, and safe community that offers a sustainable equality of life and access to economic opportunity for all. The state will promote transit oriented growth, balancing the conservation of existing assets and natural resources with innovative economic development. Connecticut will be identified as a place where families, students, workers, entrepreneurs, companies, NGOs, and government come together to enhance its competitive advantage, distinguishing the state as a dynamic environment in which to live, work, and play.

The Connecticut Economic Strategic Plan 2009 contained Goals related to housing, transportation, education and workforce development, government, business, culture and tourism, and energy. The Vision and Goals contained in this CEDS and Action Agenda for Western Connecticut region are fully consistent with the existing state economic development plan.

State of Connecticut, Regional, and Municipal Plans of Conservation and Development Development in the State of Connecticut is guided by a state-level Plan of Conservation and Development (POCD).The Conservation & Development Policies Plan 2013-2018 was adopted by the Connecticut General Assembly on June 5, 2013 identifies Growth Management Principles:

. Redevelop and Revitalize Regional Centers and Areas with Existing or Currently Planned Physical Infrastructure . Expand Housing Opportunities and Design Choices to Accommodate a Variety of Household Types and Needs . Concentrate Development Around Transportation Nodes and Along Major Transportation Corridors to Support the Viability of Transportation Option . Conserve and Restore the Natural Environment, Cultural and Historical Resources, and Traditional Rural Lands

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. Protect and Ensure the Integrity of Environmental Assets Critical to Public Health and Safety . State Agency Policies . Promote Integrated Planning across all Levels of Government to Address Issues on a Statewide, Regional, and Local Basis

This new state plan changed its categories dramatically, now more complex and ambiguous “factor layers” rather than definitive growth categories. The state and regional plans remain quite compatible.

Each community in Connecticut is required to have their own POCD as well. In addition, HVCEO has created their Housatonic Valley Regional Plan of Conservation and Development (http://www.hvceo.org/regionalplan_contents.php A) and adopted it in 2009. All of these municipal and regional POCDs are intended to be consistent with the State plan. The goals and objectives are consistent with their future growth map as shown in Figure 141.

Figure 141 Future Growth Map

Source: Housatonic Valley Council of Elected Officials

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Because the Western Connecticut Economic Alliance CEDS Committee included representation from HVCEO as well as a number of the region’s communities, the regional Vision, Goals and Objectives are closely aligned with those of the State.

Consolidation of Planning Regions in Connecticut The State of Connecticut Office of Police and Management (OPM) initiated a directive during the summer of 2013 to reduce the number of regional planning organizations in CT from 14 to 8. OPM has stated it will force such a consolidation if existing regional planning organizations do not voluntarily agree to merge.

Given that ultimatum, the Housatonic Valley Council of Elected Officials (HVCEO) and the South Western Regional Planning Agency (SWRPA) have consented to be merged into a single planning region that would include the 10 municipalities from the HVCEO region (Bethel, Bridgewater, Brookfield, Danbury, New Fairfield, New Milford, Newtown, Redding, Ridgefield, and Sherman) and the 8 municipalities from the SWRPA region (Darien, Greenwich, New Canaan, Norwalk, Stamford, Weston, Westport, and Wilton).

Figure 142: Map of the Southwestern Regional Planning Agency

Source: South Western Regional Planning Agency

This consolidation process will take at least a year to complete, during which time the organization and activities of this new regional entity will be defined. It is unknown what impacts this regional reorganization will have on future CEDS activities. Because the economies of the two existing planning regions have relatively distinct characteristics, it is anticipated that the Western Connecticut Economic Development Alliance will continue its role to foster economic growth within the defined 10 town CEDS area.

In addition, the Connecticut Economic Resource Center (CERC) has stated that, in regard to the forced merger, that Greater Danbury remains one of ten CERC recognized regional economies in Connecticut, distinct from the coastal economy to the south of the WCEDA Region. Development Policies Plan 2013-2018

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Western Connecticut Economic Development Alliance

Appendix A

Exhibits

Exhibit Subject Number 1 WCEDA Region, Commuter Data Summary 2 WCEDA Region, Commuter Data Summary Tables 3 WCEDA Region, Detailed Employment Data 4 WCEDA Region, Commuter Flow Data Table 5 WCEDA Region, List of Corporate Offices 6 List of Major Employers in the Region 7 List of Retail Centers in the Region 8 Solicitation of Projects Letter 9 Matrix of Priority Projects 10 Economic Indicators & Presentation on Affordable Housing 11 Economic Indicators & Presentation on Advanced Manufacturing 12 Economic Indicators & Presentation on Health Care & Services 13 Economic Indicators & Presentation on Life Sciences 14 Economic Indicators & Presentation on Retail & Downtown Services

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Western Connecticut Economic Development Alliance

Appendix B

Agendas of CEDS Steering/Coordinating Committee Meetings

Minutes of CEDS Steering/Coordinating Committee Meetings

Agendas and Minutes of the Housatonic Valley Council of Elected Officials

Notes of Focus Group Meetings

Copies of Relevant News Articles

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