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Picking Up the Pieces
Assembling the elements to solve Elm City's complex economic-development puzzle
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Business New Haven
7/10/2000
By: Fiona Phelan
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Is the city of New Haven on the brink of turning the corner? As many long-awaited projects come to fruition, New Haven could once again become very attractive to businesses, as well as its residents and non-residents.
Projects totalling more than $1.5 billion are planned over the next decade. Those projects include construction of a $500 million mall at Long Wharf; $640 million to reconfigure I-95, including construction of a new ten-lane bridge over the Quinnipiac River, expansion and renovation of shoreline commuter train stations, and creation of a federal Empowerment Zone to bring training and jobs to residents of specific areas of the city and West Haven.
That doesn't include programs undertaken to improve sidewalks, beautification of green spaces, and improvements in education, policing and a host of other initiatives.
Not since the 1950s has there been the hope of so much public and private money being invested to revitalize the city. During the 1950s, more than $300 million was spent on renewal projects under Mayor Richard Lee in an effort to stem the emigration of the middle class to the suburbs, eliminate poor areas and revitalize the economy.
Despite those efforts, the city's population continued to decline and so, too, the local economy with the departure of Macy's, Malley's and other long-time businesses. At the same time, however, areas of the city continued to re-create themselves. That re-creation continues today.
Under Mayor John DeStefano Jr., new initiatives have been undertaken: the Livable City Initiative; the Elm City-Green & Clean initiative, extensive renovations to Ninth Square, to name but a few.
During the '50s, New Haven's economy was based on manufacturing. While it continues to be an important part of the regional economy (accounting for 17 percent of employment), the base of the economy has shifted to health, business and financial services.
Industry clusters like biotechnology are growing in New Haven. Software companies are setting up shop in areas in and around the city. Touted by City Hall as an engine of economic renewal is the proposed $500 million Galleria at Long Wharf mall. The 1.2 million-square-foot, high-end mall is expected to create 4,300 new jobs and $5.4 million in new taxes for the city annually.
“A high-end mall is very important to the greater New Haven area,” says former Greater New Haven Chamber of Commerce President Matthew Nemerson. “It doesn't matter where the mall is; what's important is that people come to New Haven. And the mall will make that happen.”
Certainly, construction of the mall will lead to job opportunities for residents of New Haven and the areas surrounding it. Just in time to make that happen is the creation of a federal Empowerment Zone that will bring job training to residents of certain areas of the city.
Eighteen months ago, New Haven was named one of 15 new federal Empowerment Zones - a designation that comes from the federal Department of Housing & Urban Development that gives the city access to $100 million in grants, $130 million in tax credits, and new programs and technical assistance to implement a ten-year strategic plan for community renewal.
So far, according to Sherri Killins, CEO of Empower New Haven Inc., which operates the EZ programs, the group has identified three strategies for job training.
The first is a construction initiative in cooperation with the New Haven Workforce Development Board and the trade union association by which city residents are screened for jobs in 14 different unions - bricklayer, painter, tile setter, carpenter, etc. - and given training. So far, says Killins, 27 residents of the EZ have been placed in jobs and an additional 16 residents from other neighborhoods have been trained and placed. The EZ includes Dixwell, Dwight, Fair Haven, Hill, Newhallville and the West Rock neighborhoods of New Haven, as well as a portion of West Haven.
A second strategy calls for customized training. Working in partnership with individual area businesses, Empower will train EZ residents for specific jobs at that business. Currently, says Killins, a North Haven employer has requested training for five individuals. Working with a company, Empower devises or locates a training program to meet the specific requirements of individual employers.
“Upon completion of training, the employer must guarantee employment to the trainee if they have successfully met all the pre-stated requirements,” Killins explains. About $96,000 has been invested in this program - some $2,500 per trainee. While the program trains only EZ residents, the employer can be located anywhere.
“One of the challenges of job training,” notes Killins, “is transportation. “We can train someone for a job but we also have to look at how that person is going to get to the job - is there public transportation, can they ride with someone, can we help them get a car through an inexpensive source? There are lots of jobs, but transportation can very often be an issue.”
The third initiative is outreach. Empower New Haven Inc. has invested $200,000 in an effort to prepare EZ residents for jobs, make them aware of employment opportunities and place them in jobs.
“The key to Empower New Haven is that we're doing this together as community,” notes Roger Joyce, chairman of Empower New Haven. “This is not a program that was handed to us by Washington. This is a program that is designed by each of the six neighborhoods - programs that are tailored to meet the specific needs of that neighborhood.
“This is a great time for this right now because of the City's other initiatives,” Joyce adds.
Some of the city's continuing initiatives include $32 million targeted for waterfront park programs including a 269-slip marina development and the permanent berth of a replica of the slave ship Amistad. The city is also looking at ways to reuse former manufacturing sites for use by new small manufacturing companies and the growing need for lab space by biotechnology companies.
During his state-of-the-city address in February, DeStefano noted that even though downtown New Haven represents only three percent of the city's land mass, it accounts for 46 percent of the jobs, one-third of the city's revenue and attracts three million visitors a year.
“It works,” DeStefano said at the time, “because it has a mix of activities. Offices, retail and lots of people.”
“It's growing and it's doing fine,” he said of downtown.
Still, local business and community leaders note that more needs to be done. EZ Chairman Joyce, vice president of engineering at Bilco Co. in West Haven and chairman of the Tweed-New Haven Airport Authority, notes that the region - not just the city of New Haven - needs to better utilize the formerly city-owned airport. After United Airlines pulled out of the airport in 1994, only U.S. Air Express remains as a commercial carrier offering commuter flights to Philadelphia and Washington, D.C.
“The airport has to become a priority for the area,” says Joyce. “The airport represents an opportunity to fuel some economic revitalization for the greater New Haven area.”
In fact, a 1999 University of Connecticut study noted that Tweed-New Haven airport provides a total economic benefit of $19.4 million a year. However, the study states, if certain airport improvements are made, the economic impact could increase to more than $302 million annually by 2019.
The study indicated that the airport is vastly underused by the area's population - commuters opting to fly from Hartford, Providence, White Plains or New York/New Jersey - but could see an increase in the number of passengers and airlines using the facility if certain improvements are undertaken.
Taking heed of the UConn study, the airport has begun work on updating the airport's master plan, which will map out a future for the airport, including whether expansion will occur and what shape it might take.
Additionally, the authority is undertaking $3.15 million in construction projects at the airport over the next year. Funded with federal, state and local money, plans include new hangars and offices, and improved entry and landscaping, additional ramp, maintenance and taxiway space, new garages for private planes and a $1.1 million air rescue and firefighting facility.
The mall, the airport and I-95: the keys to New Haven's prosperity.
Discussion over improvements to I-95 and the Pearl Harbor Memorial Bridge spanning the Quinnipiac River has been going on for years. At long last, it seems there is a plan to in fact make the improvements a reality. Although design plans are still in the works for the $640 million project, optimism is high.
Proposals call for construction of a new ten-lane bridge over the Quinnipiac River to replace the existing six-lane span. Toward East Haven and Branford, the highway will be expanded to eight lanes in either direction. The first phase of construction is expected to begin in Branford in 2003.
“The current commitment is a result of the South Central Regional Council of Governments [COG] position over the past ten years,” notes Deputy Director Herb Burstein.
However, Burstein notes, before construction can start on the highway, the COG has pressed the state's Department of Transportation to make improvements to the train stations that serve the Shore Line East commuter train.
The COG anticipates increased ridership on the train - both to and from New Haven - once highway construction gets underway. The biggest obstacle faced by train commuters is lack of parking space at local stations.
In the next few years, parking facilities will be expanded in Branford, Guilford, Madison and Westbrook as stations are relocated to bigger properties or platforms and parking are added to the opposite side of the tracks.
In addition, the Shore Line East will make an additional stop at a station to be created on New Haven's State Street to better serve riders and alleviate congestion at Union Station. The Westbrook station will be relocated to the Westbrook Factory Stores outlet center, allowing residents from other areas not only to visit the mall but to also be employed there without needing to drive.
However, Burstein notes, that despite the monumental plans for I-95 east of New Haven, there are no plans to address the traffic congestion through the I-91 interchange, Long Wharf and west to West Haven.
Traffic congestion along the entire route of I-95 from Stamford through Bridgeport and New Haven is the reason why the latter two cities are not benefiting from the positive effects of the economy currently being seen in the New York metro area, according to a report released earlier this year by the Connecticut Regional Institute for the 21st Century.
However, former chamber head Nemerson is optimistic that New Haven will eventually benefit from the booming economy. “If the economy keeps going, everything else is going to fill up and when everywhere else runs out of space, they'll come here.
“Commuting times is going to be the key to development of any area, including New Haven,” he adds.
“Transportation is a key issue in many ways for the greater New Haven area,” agrees Joyce. “The topic has floated to the top of many organizations' agendas, whether it be air, rail, highways, etc.
“I am encouraged that attention is being spent in this area and it leads me to be more optimistic about the future of New Haven than in the past.” BNH
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