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DECD 2018 Annual Report

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DECD 2018 Annual Report 2018 Annual Report DECD Annual Report 2018 1 DECD in Action Through the hard work of its talented staff, the Department of Economic and Community Development continued to have many successes in brownfield remediation and redevelopment, tourism, the arts, historic preservation, and business development. These distinct areas of focus are interconnected in that they all help build stronger neighborhoods, positively impact the state’s economy and improve the overall quality of life for Connecticut residents. Business Development Brownfield Tourism Redevelopment Historic Arts Preservation DECD Annual Report 2018 2 DECD by the Numbers As this annual report illustrates, DECD measures its influence and impact in many ways. The charts below highlight some of the department’s key programs. Thousands of jobs have been retained and created by mid-large businesses in targeted segments including manufacturing, bioscience, finance and technology Manufacturing Assistance Act (MAA) and Urban and Industrial Sites Reinvestment Tax Credit Program Jobs 25,000 38 37 36 36 20,000 36 15,000 17,300 33 34 Jobs 10,000 7,484 7,289 32 5,000 3,321 3,721 4,357 0 2,947 2,476 30 2015 2016 2017 2018 Number of Companies Jobs to be Created Jobs to be Retained Number of Companies Funded As bank credit becomes more readily available some changes to the program have been made. Funds have been targeted to areas such as minority businesses and foreign direct investment Small Business Express (EXP) Program Jobs 5,000 300 274 248 4,000 250 207 200 3,000 3,350 142 2,481 150 Jobs 2,683 2,000 1,741 100 1,000 50 1,283 Number of Companies 898 1,142 740 0 0 2015 2016 2017 2018 Jobs to be Created Jobs to be Retained DECD Annual Report 2018 3 In FY 2018, $4.73 dollars was leveraged from private sources for every dollar of MAA/EXP funding EXP and MAA/ Private Sector Leveraging $1,500 $1,000 $890.5 $500 $776.1 $342.7 $314.9 $229.2 $180.5 Dollars in Millions $0 $179.5 $164.1 2015 2016 2017 2018 DECD Assistance Amount Leveraged $198 million in state brownfield funding has helped put 228 sites back into useful economic activity Brownfields Funding/ Leveraging $1,400 80 61 59 60 $900 36 36 40 $400 $1,332.6 $654.9 20 $243.9 $182.9 Dollars in Millions -$100 0 2015 2016 2017 2018 Number of Recipients DECD Assistance Amount Leveraged Count Every year, small grants support hundreds of artists, public art installations and operations for cultural organizations throughout the state. Decline is due to budget reductions Arts Funding $15.0 600 488 $10.0 400 299 353 311 $5.0 200 $10.8 $7.2 $5.7 $0.0 0 Dollars in Millions 2015$9.9 2016 2017 2018 Number of Recipients DECD Assistance Number of Recipients DECD Annual Report 2018 4 DECD Year in Review Business Development Connecticut’s economic toolbox continued to prove versatile and effective, supporting a cross-section of large, small and midsize companies and bringing new capital investment and jobs to our state. Overall, DECD’s strategic investments to support business growth (through Small Business Express and Manufacturing Assistance Act funding) are paying off. Here’s a snapshot of MAA and EXP in fiscal 2018: • 178 companies were assisted, with 4,890 jobs to be created and 9,458 jobs retained; • $776 million of private sector funds were leveraged to grow jobs and expand the economy Since January 2011 through fiscal 2018, from a broader portfolio perspective*, the numbers are even more impressive: • 2,217 companies assisted, with 33,391 jobs to be created and 94,884 jobs retained • $5.7 billion has been leveraged from the private-sector • 106% of expected jobs have been created and retained *Portfolio data includes active and inactive MAA, EXP, other select business assistance projects, and three tax credit programs (URA, JET and the Aerospace Reinvestment Act). Companies from all industries continued to see opportunity in Connecticut. Highlights from larger-scale projects include: Infosys - A global leader in consulting, technology, and next-generation IT services announced the establishment of a technology and innovation hub in Hartford. The $20.6 million investment will support the creation of 1,000 well-paying, high-tech jobs in the state’s capital city by 2022. DECD Annual Report 2018 5 Indeed - The internet company announced plans to significantly increase its presence in Connecticut by investing $26.5 million to expand its Stamford offices and create as many as 500 new jobs, bringing the company’s Connecticut job presence to over 1,200 employees by 2031. ASML - One of the world’s leading manufacturers of chip-making equipment, ASML is planning to substantially grow its operations in Wilton, Connecticut creating up to 524 new jobs by 2026 and retaining its current workforce of 1,222 employees. Electric Boat – The state entered into an historic partnership with General Dynamics Electric Boat (EB) that will help the company grow their workforce by nearly 1,900 bringing it to more than 13,000 by 2034; allow for capital investments of greater than $800 million in the state over the next 17 years; and more than double their spend with in-state suppliers. Connecticut’s investment will allow EB to maintain its position as the highest-quality provider of submarines to the U.S. Navy, thus capturing additional overhaul and repair work while continuing the delivery of the Virginia Class Submarines. ITV America- Award-winning entertainment production group ITV America – the largest independent producer of non-scripted entertainment content in the United States – and Wheelhouse Entertainment are establishing operations in Stamford. Combined, the two entertainment companies plan to create approximately 450 jobs by 2021 across areas of finance and operations, production, and post-production, and more. PricewaterhouseCoopers – The company, one of the largest professional services firms in the world, is planning a major expansion through the creation of its Insourced Solutions for Tax (IST) division that will see the creation of up to 400 new jobs in the state over the next five years. The company plans to spend $20 million on the expansion. DECD Annual Report 2018 6 The state’s primary financial assistance program for small businesses, the Small Business Express Program, continued to provide financial assistance to support growth at all types of companies, from “mom and pop” stores to high-tech firms. The results are impressive: through June 30, 2018 DECD has entered into 1,825 contracts that require the creation and retention of over 26,000 jobs (adjusted for duplication across programs and contracts). DECD’s Manufacturing Innovation Fund (MIF) continued to strengthen the competitiveness of supply chain companies throughout the state. The MIF is capitalized with $75 million in funding offering manufacturing-focused programs and initiatives in the areas of workforce and training; innovation; operational improvements; and capital access. As of June 30 2018, the MIF had assisted approximately 1,200 companies and invested over $58.2 million to help accelerate growth, cultivate talent, and boost investments in innovation. DECD supports business growth in other ways as well. For example, the department invites smaller aerospace companies to exhibit with the state at international air shows. Most recently eight Connecticut aerospace manufacturers met with potential customers from around the world at the Farnborough Airshow — all as part of the State of Connecticut's tradeshow booth. Since Connecticut began organizing trips to the Farnborough and Paris air shows in 2006, exhibiting companies have generated more than $400 million in sales from this exposure. DECD also plays a key role in developing a pipeline of high tech talent in the state. The department, in consultation with Technology Talent Advisory Committee, administers the Tech Talent Fund, a resource for both workers and employers to ensure Connecticut has the workforce talent needed to fuel growth in its tech sectors. These programs will begin in 2019,. DECD Annual Report 2018 7 Brownfield Remediation and Redevelopment DECD also plays a role in creating growth opportunities where they didn’t exist before. The department’s brownfield remediation and redevelopment investments, for example, are transforming contaminated properties into prime real estate for new housing, business expansion and recreation. As the map illustrates, DECD’s has made investments in 71 of Connecticut’s cities and towns. Since FY 2009, the Office of Brownfield Remediation and Development (OBRD) has invested over 198 million state dollars in 228 brownfield development projects in cities and towns all across the state. In FY 2018 alone OBRD invested over $37M in 33 projects. DECD investment, in conjunction with other state, federal and private investment, are supporting major transit-oriented development projects throughout the state as well. DECD Annual Report 2018 8 Tourism DECD, through its Connecticut Office of Tourism, continued to work to make tourism a leading economic contributor and to position the state as a prime destination for leisure and business travelers. Here are some highlights from 2018: • Through Connecticut’s award-winning branding and marketing campaign, DECD continued to promote travel to the state. Given the reduced budget for paid media, there was a focus on digital tactics and Out of Home placements in key markets (New York and Boston). Columbus Circle, New York City DECD Annual Report 2018 9 The marketing messages used continue to reinforce overnight stays, our casinos as tourism destinations, and a showcase of big-draw attractions and hidden gems. • Over 1,600 tourism industry partners were featured and/or supported through advertising, public relations and content marketing efforts. • Visits to CTvisit.com increased 15% with nearly 5 million sessions, 1.9 million listing page views, with 23% of sessions including a listing page visit.
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