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Can’t Get There From Here
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Business New Haven
2/22/1999
By: BNH
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The recent closing and employment loss of yet another 125-plus jobs at the Robby Len apparel factory, a longstanding Elm City manufacturer now owned by the Sara Lee Corp., underscores an important point about economic revitalization: If we are to have job-bearing investment in inner cities like New Haven's, it will likely come from small and mid-sized businesses.
Further, while we count ourselves as one of the region's loudest boosters of entrepreneurial development, for the mid-term, business investment will most likely have to come from companies that are already viable and successful with clearly defined markets, strategies and business objectives.
It has been widely argued that cities need to find companies that derive some kind of competitive advantage to being there - access to underserved markets, lower-cost workers, the ability to re-use older facilities, etc.
That is why the story of the West Haven-based AAIS Corp., an asbestos abatement company, is of particular interest. The city of New Haven's Office of Business Development attracted the company to a location for expansion of its office headquarters and as a facility for equipment storage (but not storage of any hazardous materials). The location was the former American Linens Supply Co. on Lock Street, another one-time major employer that consolidated operations outside of New Haven.
Opposition to the company's location arose immediately from what is described by some as “the community,” but which originated mainly from a non-profit development group, the Dixwell Enterprise Community Management Team. It should be noted that in recent editions of Business New Haven we cited some of the successes of this group in development projects, including the Shaw's Supermarket on Whalley Avenue that contributed to the city earning Empowerment Zone designation from the U.S Department of Housing & Urban Development.
The non-profit group's opposition appears to be based on its desire to utilize the building for its own purposes as a neighborhood job-training center and offices, with funding provided by the federal government. Other interested parties have suggested the building be torn down for creation of more park space or for a police substation. Mayor John DeStefano Jr. has agreed not to locate AAIS there and said he would seek another site for the company elsewhere.
Yale University had previously offered to buy the site for a new University Police substation but, according to reports, its offer was turned down as inadequate. Now Yale is saying that “it will consider this location only if that's what the community wants.”
We appreciate the mayor's need for political sensitivity toward local community leaders, and Yale's desire to forge a better relationship with community groups. Unfortunately, however, this outcome reinforces a very clear message to business owners about locating in New Haven. And worse, it is a clear instance of a distressed community, local government and a major institution conspiring to do exactly the wrong thing when it comes to economic development - crowding out private investment.
A possible job-training center or police substation versus the location of a strong and viable business with actual jobs for a job strapped city? The correct choice was obvious.
This roughshod treatment of AAIS comes at a very unfortunate time. New Haven has just received designation as an Empowerment Zone. For that effort to succeed it must go beyond divvying up the feds' money. New Haven's neighborhoods must attract the interest not of a handful of boosters, but a bunch of bottom line-oriented businessmen and -women who will locate their companies where it is easy, and profitable, to do so.
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