As Hartford Mayor Eddie A. Perez begins his third term, he is planning economic development projects that will include a mix of public-private partnerships.
The city plans to makes its first investment — with the use of bond proceeds — for its Neighborhood Development Fund by “targeting some of Hartford’s most stubborn blight,” Perez said in his inaugural speech on Monday. Perez first announced plans for the Neighborhood Development Fund in his 2007 state of the city address in March. The city plans to use the funds to create new houses and apartments along with new neighborhood shopping outlets.
Perez said in an interview that the city will use $50 million of debt over the next three to four years for the Neighborhood Development Fund, with the hopes of leveraging between $100 million and $150 million more from private investors. It is not clear at this time if the debt would be taxable or tax-exempt.
While city has not yet offered specifics on how much of the $50 million it will issue this year, its next step is to issue this month a request for qualifications for developers, said Mark McGovern, acting director for the Department of Development Services.
The city’s expectation from the RFQ is that it’ll “be able to select a development team and find a partner,” he said. Once the city has selected a developer, it can then begin to develop a strategy to implement the Neighborhood Development Fund, McGovern said.
Perez also wants to start tackling questions about the future of the Hartford Civic Center, which was renamed the XL Center in December. The state has run the Civic Center for about 20 years, but in 2013, the city will regain control of the facility.
Perez said in an interview that the XL Center, where the American Hockey League’s Hartford Wolf Pack and the University of Connecticut’s Huskies basketball teams play and concerts take place, is losing $6 million a year, and the facilities are outdated. He wants to start planning for what Hartford intends to do with the coliseum five years from now.
“At that point, the city, state, and region will have a clear choice: Invest in a world-class coliseum or let the current facility face the same fate as the now demolished New Haven Coliseum,” Perez said in his inaugural speech this week.
The coliseum has “outlived its useful life,” McGovern said. The last major renovation was 30 years ago and investing additional money would not bring it up-to-date, he said.
The price tag for a new world-class facility in Hartford, however, could be as much as $400 million, Perez said, adding that Hartford would not be able to afford a new coliseum without participation from the private sector, the region, and the state.
Since Connecticut is located near large cities like Boston and New York, Perez believes there are “significant challenges in order to keep the state competitive and in order to attract a quality work force.” He believes that a new coliseum, and the economic development around it, would bring business, people, and perhaps even a new National Hockey League or National Basketball Association team to Connecticut.
Perez plans to initiate a new task force this year that will include appointments from Gov. M. Jodi Rell and leaders of Connecticut’s legislature to determine the feasibility of a new coliseum in Hartford and possible locations.
The coliseum is “very much a city and state development program,” Perez said.
“We want to discuss right now about how to go about siting and funding,” McGovern said. “State participation would be necessary for sure.”
Bonding is likely for this project, Perez said.
McGovern said Hartford’s intention to develop a new arena is “not just for Hartford, but the entire state.”
