The Register Citizen (Torrington, CT)

New economic developmen­t chief faces headwinds

- By Erica E. Phillips

Alexandra Daum, Gov. Ned Lamont’s nominee to lead the Department of Economic and Community Developmen­t, told lawmakers at her confirmati­on hearing last Thursday that growth will be her top priority — a nowfamilia­r refrain from the governor’s office.

But there are strong headwinds facing Daum as she takes over the state’s top economic post. The threat of a recession looms this year, as the Federal Reserve continues to raise interest rates in an effort to tamp down on inflation, and companies have begun downsizing.

In Connecticu­t, several of the state’s prominent corporate employers have announced layoffs, relocation­s and restructur­ing.

Campbell’s Soup Co. said it’s closing its Pepperidge Farm headquarte­rs in Norwalk and consolidat­ing operations in New Jersey. Sikorsky Aircraft parent company Lockheed-Martin announced 800 layoffs in divisions that could include the Stratford plant. Cryptocurr­ency conglomera­te Digital Currency Group, whose move to Connecticu­t in late 2021 was hailed by the Lamont administra­tion, has closed down one of its subsidiari­es while another of its companies filed for bankruptcy. And Denmarkbas­ed Lego Group said it’s relocating its North America headquarte­rs from Enfield to Boston in 2025.

The flurry of unsettling announceme­nts followed

news late last year that biotechnol­ogy company Sema4 (now known as GeneDx), which received millions of dollars in state loans to build labs in Stamford and Branford, would be shuttering those operations.

Lawmakers asked the incoming economic developmen­t commission­er how she plans to respond to the trend in corporate retrenchme­nt.

“It’s all very disappoint­ing news across the board,” Daum said, but the “silver lining” is the number of open jobs Connecticu­t employers are currently trying to fill: roughly 100,000. Daum said DECD and the Department of Labor will work with employers to match people who have been laid off with job openings around the state.

The state government has thousands of open jobs to fill, and Connecticu­t’s school districts and health care providers are facing staff shortages. New federally funded infrastruc­ture and broadband projects will have thousands of openings in the coming years. And new investment in the

semiconduc­tor industry is driving demand for specialize­d technology workers.

But it was Lego’s relocation to Boston — driven in part, the company said, by a desire for a more lively urban location with a highly skilled talent pool — that appeared to have the freshest sting.

“That decision wasn’t made to save money,” said Rep. Julio Concepcion, a democrat from Hartford who co-chairs the Executive and Legislativ­e Nomination­s Committee. “It’s more about the quality of place that Boston provides,” he said.

Daum agreed. “The impression that people have is that they can’t get that experience in Connecticu­t.” But she said wants to change that.

“I’m a big believer in Connecticu­t cities, in our downtowns, and in the fact that they’ve been underappre­ciated for a long time,” Daum said. “We need to get the word out about our vibrant downtowns, where you do have young talent, where you do have walkabilit­y and transit-oriented environmen­ts — and at a lower cost of living than in these major metropolis­es. So we’ve got a good story to tell.”

Daum hopes telling that story will attract more people to the state and drive economic growth.

Marketing the state’s culture and tourism assets was one of four focus areas Daum laid out for the committee, and she highlighte­d the department’s recent hiring of Noelle Stevenson — who previously led visitors bureaus in Florida’s Broward and MiamiDade Counties — as Connecticu­t’s tourism office director.

The other three areas Daum plans to focus on are providing technical and financial support for small businesses, administer­ing community developmen­t grants and offering tax incentives for companies tied to how many jobs they create.

More workers means more housing

Several legislator­s said economic growth and population growth in the coming years would depend on the availabili­ty of housing.

“We’re tens of thousands of units of housing behind where we need to be, and employers will not come into the state if there are not the employees,” said Senate Majority Leader Bob Duff, D-Norwalk, co-chair of the committee. “We’ve got to make a commitment in this state to build housing — workforce housing.”

Daum said housing and employment are intertwine­d. She called attention to the department’s Communitie­s Challenge Grant, which has so far awarded over $80 million to 20 projects around the state — 80% of which incorporat­ed housing developmen­ts, Daum said. The grant program just completed its second round, and there are seven more to go.

“That’s the way we’re moving the needle on this issue,” Daum said.

She added that DECD has encouraged some employers to consider building their own housing for workers, and she said those companies could apply for state-funded community developmen­t grants to help cover the cost of constructi­on.

 ?? Ken Dixon / Hearst Connecticu­t Media ?? The Connecticu­t State Capitol building in Hartford.
Ken Dixon / Hearst Connecticu­t Media The Connecticu­t State Capitol building in Hartford.

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