Bill Summary – FastDemocracy

Commerce Committee
                          JOINT FAVORABLE REPORT
    Bill No.: SB-1020
               AN ACT ESTABLISHING A REGIONAL ECONOMIC DEVELOPMENT PILOT
        Title: PROGRAM IN THE NAUGATUCK VALLEY.
 Vote Date: 3/16/2021
Vote Action: Joint Favorable Substitute
   PH Date: 3/9/2021
    File No.: 222
Disclaimer: The following JOINT FAVORABLE Report is prepared for the benefit of the
members of the General Assembly, solely for purposes of information, summarization and
explanation and does not represent the intent of the General Assembly or either chamber
thereof for any purpose.
SPONSORS OF BILL:
Commerce Committee
REASONS FOR BILL:
SB-1020 would direct The Department of Economic and Community Development to
establish a regional economic development matching grant pilot program. The pilot program
provides matching funds to regional economic development corporations to implement
economic development programs in distressed municipalities.
This pilot program encourages regional efforts by requiring the bills pilot program applicants
to meet specific parameters.
Substitute Language  LCO 5448
The bill, as originally drafted, proposed the creation of a pilot program for the Naugatuck
Valley. The substitute language removes reference to Naugatuck Valley, opening access to
the pilot program to any regional organization that meets the requirements. The substitute
language provides those requirements and sets the parameters of the program.
RESPONSE FROM ADMINISTRATION/AGENCY:
None Expressed
NATURE AND SOURCES OF SUPPORT:
   1. Andrew Baklik, Chief of Staff, City of Derby: Submitted written testimony in support
      of this bill. Mr. Baklik conveyed the difficulties Derby faces regarding sustaining
   economic development efforts when acting as a single entity. He voiced support to
   forming a regional entity, which could be better equipped to provide continuity relating
   to economic development efforts. He called the prospect of having regional staff a
   game-changer for small distressed municipalities like Derby.
2. Connecticut Conference of Municipalities: Submitted written testimony in support of
   this bill. They noted that having effective economic development policies is vital to the
   long-term success of the state. They were encouraged that this bill would incentivize
   companies to either locate or expand in Connecticut without doing so at the expense
   of the municipality in the form of property tax exemptions.
3. N. Warren Pete Hess, Mayor, Borough of Naugatuck and Neil M. OLeary,
   Mayor, City of Waterbury: Provided written joint testimony, and Mayor Hess
   provided public hearing testimony in support of this bill. Seeing the potential shared
   benefits and understanding that economic development is increasingly regional in
   scale, Naugatuck and Waterbury created the Naugatuck Valley Regional Development
   Corporation. Mayor Hess and Mayor OLeary believe that this bill, with its matching
   funds, would help build off their own efforts and encourage other municipalities to work
   more regionally.
4. Thomas Hyde, CEO, Naugatuck Valley Regional Development Corporation:
   Provided written and public hearing testimony in support of this bill. Mr. Hyde noted
   that the Naugatuck Valley has several municipalities that cannot afford economic
   development staff, which means they miss out on development opportunities. He
   testified that the goal of NVRDC is to expand into other municipalities in the region,
   thereby providing them access to economic development staff. Mr. Hyde highlighted
   that the funding in this bill would come in the form of a matching grant, ensuring that
   the regional organizations would have skin in the game.
5. Sheila OMalley, Economic Development Director, City of Ansonia: Submitted
   written testimony in support of this bill. Ms. OMalley testified about her twenty-five
   years of experience in roles related to economic development. She explained that one
   of the most significant challenges municipalities face is a lack of the necessary funds
   to incentivize development activities successfully. She believes that regional efforts
   like the one encouraged by this bill will strengthen and benefit many communities.
6. Joshua Rodriguez, Director of Public Policy & Economic Development,
   Waterbury Regional Chamber: Submitted written testimony in support of this bill. The
   Waterbury Regional Chamber represents the interests of nearly one-thousand
   member businesses on matters of public policy. Mr. Rodriquez emphasized that this
   bill's funds would help developers overcome costs and incentivize them to undertake
   projects. He also stressed that organizations must deliver on their end because the
   funds come from a matching grant.
7. Lynn Ward, President & CEO, Waterbury Regional Chamber: Provided written and
   public hearing testimony in support of this bill. In addition to her role at the Waterbury
   Regional Chamber, Ms. Ward is also a board member of NVRDC. She believes that a
   regional approach to economic development, along with a public/private investment,
                                                                      Page 2 of 3 SB-1020
     will result in more successful outcomes compared to municipalities acting
     independently. She concluded her written testimony by stating, The business
     community is enthusiastic about the future of our region and stands ready to support
     regional efforts.
NATURE AND SOURCES OF OPPOSITION:
None Expressed
Reported by: Peter B. Andrews                        Date: 3-17-21
                                                                     Page 3 of 3 SB-1020