SUMMARY AND OVERVIEW i

Status, Funding, Completion Timetable and Responsibility Summary iii

MISSION STATEMENT 1

PRIMARY GOAL 2

INTRODUCTION 4

WETHERSFIELD AT A GLANCE 7

KEY FINANCIAL DATA 14

ECONOMIC DEVELOPMENT COMPETITIVE REALITIES 18

STRENGTHS AND WEAKNESSES ASSESSMENT 22

CROSS-CUTTING ISSUES 28

GOAL 1: CREATE MORE DIVERSITY IN

WETHERSFIELDíS ECONOMIC BASE 30

GOAL 2: ECONOMIC DEVELOPMENT READINESS 35

GOAL 3: COMMUNITY EDUCATION 39

GOAL 4: COMMUNITY QUALITY IMPROVEMENT 41

GOAL 5: EXISTING BUSINESS ASSISTANCE 43

IMPLEMENTATION PLAN 45

EVALUATION AND MONITORING 46

In mid-2000 the Town of Wethersfield began the process of updating its economic development strategic plan, which had originally been prepared in 1995. This document presents the results of that effort, and although it is entitled an Update, it is essentially a new plan.

The plan addresses the Townís primary economic development mission , which is "Öto attract and retain an appropriate mix of business for the purpose of increasing the tax base and improving employment opportunities in Wethersfield."

The Economic Development Steering Committee, which guided the development of this plan, devoted extensive thought, analysis and debate to the fiscal needs and realities of Wethersfield for the future. Based on this discussion, the Committee set as its primary goal "Öto identify a set of actions intended to increase the non-residential portion of Wethersfieldís Grand List by 1% between the October 1, 2000 and the October 1, 2010 Grand Lists (from 15.72% to 16.72%)."

This may not appear to be an aggressive goal, but it is in the context of the realities that define Wethersfield. Three of those realities collide and pose a significant challenge to the residents and government of the Town in expanding the local economy:

• To reach the goal of a 1% increase in the non-residential portion of the Grand List will require a level of business development that is substantially greater than recent historical levels of such development.

• The existing residential character of the Town is very important to its residents, who work hard to protect it.

• There is very little undeveloped land for business purposes left in Wethersfield, and little motivation to "create" more business land through rezoning, so that any extensive business growth must come through the reuse of land that has already been developed.

This Economic Development Strategic Plan provides a series of action items that focus on five major elements:

1. Providing an Appropriately Diversified Economic Base
2. Economic Development Readiness
3. The Need for Community Education
4. Community Quality Improvement
5. Existing Business Assistance and Recognition.

The Plan focuses its attention of the improved development of Wethersfieldís primary business corridors:

• The Silas Deane Highway should be a positioned as a location for additional medical services offices and facilities. The northern portion will also have smaller, locally oriented retail establishments. The central portion will also serve as the government services center (with development of an improved United States Post Office as a key element). The southern portion, with its access to Interstate 91, will be the location of larger retail and office facilities.

• The Berlin Turnpike should be positioned as a restaurant and entertainment corridor, to take advantage of its high traffic count and continue the recent history of this type of development.

Finally, the Plan recognizes that for Wethersfield to reach its primary goal of expanding the non-residential portion of the Grand List, it must aggressively stimulate adaptive reuse of already developed areas. In some instances, this will be the upgrading of existing properties, while in other instances, it will be the replacement of lower value developments with newer and more valuable forms. The establishment and empowering of a Development Agency as allowed in the Connecticut General Statutes will be a key tool. So too will be the day-to-day efforts of a more active Town Economic Development Office.

The remainder of this Economic Development Strategic Plan provides more detail on the Action Items necessary for the future. The Table that follows provides a brief summary of Action Items that comprise the plan. This Table also indicates a suggested responsibility for implementation, an estimated cost range and a timeframe for completion.

This Mission Statement provided the basis for the prior Economic Development Strategy, for which this document serves as an Update. The Economic Development Steering Committee reviewed and discussed this Mission Statement and concluded that it remained valid for Wethersfieldís economic development future.

The Primary Goal of this Economic Development Strategic Plan Update is to identify a set of actions intended to increase the non-residential portion of Wethersfieldís Grand List by 1% between the October 1, 2000 and the October 1, 2010 Grand Lists (from 15.72% to 16.72%).

In establishing this Goal, the Economic Development Steering Committee carefully considered historical growth and investment patterns, development opportunities, the importance of protecting the Townís residential character, and conservative projections of the Townís future revenue needs and likely growth. The following charts summarize some key data considered by the Committee.

These projections are based upon the assumption that Wethersfieldís Grand List will continue its recent historical pattern of increasing by approximately 1% per year. Using the 1999 Grand List as a base, this would result in an October 1, 2010 Grand List of $1,587,850,800. The following table projects what the business portion of that 2010 Grand List would be under various growth scenarios ranging from merely maintaining the current 15.72% business portion to increasing the business portion to 20%. It also shows how much the business portion of the Grand List would have to grow each year to attain these percentages.

This compares to a 1999 business portion of the Grand List of $222,308,240 and a 2000 business portion of the Grand List of $229,883,770. The historic growth rate of the business portion of the Grand List since 1995 has been:

1995 to 1996 + $4,949,010

1996 to 1997 - $2,199,760

1997 to 1998 + $1,886,240

1995 to 1998 Average + $1,545,163

1998 to 1999 Unable to tell due to Revaluation

1999 to 2000 +$7,575,530

In June 1995, an Economic Development Strategic Plan was prepared for the Town of Wethersfield by its then economic development consultant, Bartram & Cochran. Now that nearly six years has gone by, that Plan is in need of updating for a variety of reasons: many of the plan elements have been completed; the regional economy continues to change; Town demographics and service/facility needs are also changing; and good management requires a revisiting of strategic needs and responses.

This Economic Development Strategic Plan Update was prepared by the Townís current economic development consulting team of Garnet Consulting Services, Inc. and Cosgrove Development Services. The consultants were assisted by an Economic Development Steering Committee comprised of:

Daniel A. Camilliere Resident and Former Mayor

Paul Courchaine Wethersfield Preservation Trust

Lee C. Erdmann Town Manager

Thomas Fitzpatrick Town Councilor

Brendan T. Flynn Deputy Mayor

Charles Ford Old Wethersfield Shopkeepers Association

Carmela L. Moore Wethersfield Chamber of Commerce

Arthur F. Nacht Old Wethersfield Resident

Stuart B. Popper Town Planner

Others who contributed to portions of the Committeeís deliberations were residents Thomas DeMille and Gerri Monroe, Mayor Wayne J. Sassano and Town Councilor Daniel OíConnor.

Input was also received from members of the Wethersfield Economic Development and Improvement Commission and the Board of Directors of the Wethersfield Chamber of Commerce.

This group met numerous times over an extended period of time to evaluate performance on implementation of the existing plan, provide insight on key characteristics, issues and opportunities shaping Wethersfieldís economic development future, and debate and prioritize alternatives around which the Economic Development Plan Update should be focused. In addition, the consultants received input from a series of interviews with businesspersons, residents and developers from the Town and from other forms of literature and database research.

Two public forums were held to obtain input from the residents and from the general business community and excellent dialogue took place.

The Plan that follows is intended to be consistent with the Townís newly revised Plan of Conservation and Development and responsive to the challenges and issues facing Wethersfield. It is somewhat mind-stretching in terms of not relying solely on the old, tried and true economic development programs, yet realistic in what can reasonably be achieved with the resources available.

This Economic Development Strategic Plan Update builds upon the prior Plan and much good work that has already occurred, or in ongoing by Town staff to implement it. In essence, the intent of this Plan is to provide a series of recommended Action Steps that fall into the following categories:

• Actions which, by their nature, should be continuing over time, or which have not yet been completed from the prior Plan.

• Actions that are new for Wethersfieldís Economic Development Strategic Plan, and that can be implemented with little cost to the Town.

• Actions that are new for Wethersfieldís Economic Development Strategic Plan, and that have moderate cost or other resource requirements.

• Actions that are intended to stretch Wethersfieldís thinking about its future economic development, either in terms of the nature of the action, or in the resource needs to accomplish it.

One of the primary realities is that Wethersfield is a mature community, is nearly fully built out, and therefore lacks the large undeveloped areas that other communities can utilize to stimulate economic development.

The adoption of this Economic Development Strategic Plan Update by the Town of Wethersfield is intended to fulfill the following essential community purposes:

• Create a blueprint to guide future economic development;

• Improve the quality of life for the residents of our community;

• Increase the standard of living of our residents;

• Help provide adequate funding for our municipal services and educational system;

• Attract businesses that will provide better quality jobs; and

• Maintain and improve property values.

The process of creating an Economic Development Strategic Plan is as important as developing the plan itself.

 

 

 

Wethersfield is the 16^th biggest migration gainer in the State of Connecticut in the 2000 Census count with a net migration of 1,417 people, a migration rate of 5.5% resulting in a total population change of 620 people according to the University of Connecticutís geographer and Director of the Center for Geographic Information and Analysis.

Traffic counts were requested from the Connecticut Department of Transportation for various locations in Wethersfield. The traffic counts show how many vehicles pass by and whose occupants may be potential customers of goods and services sold in Wethersfield. These numbers are for Average Daily Traffic (ADT) and were taken in August and September of 2000.

Retail has played a major role in the historical economy in Wethersfield. Retail sales generated in 2000 were $164,150,810 and for all other outlets were $102.219,345 with a combined total of $266,370,155. The following charts show the trend in retail for the past six years in the community. According to the State of Connecticut Department of Revenue Services researchers, large retailers with more than one establishment usually report all their sales and taxes from their primary location, therefore the figures for various towns may not reflect actual business activity. For instance, Stop & Shop reports out of Danbury and is not reflected in the Wethersfield chart.

Reporting of returns up through 1997 were calculated by adding the total number of returns, many of which were filed quarterly, giving an inflated impression of the number of business establishments. Beginning in 1998, the method of calculation was for the number of businesses (taxpayers) filing returns.

An indicator of business growth is the filing of trade names. Wethersfieldís Town Clerk provided the following information on business filings of trade names:

The number of trade names filed usually undercounts business formations in most communities because many small businesses do not register with the local government. Based on national data that indicates an annual business startup rate of 1 business per 200 - 250 people, Wethersfieldís 2000 population of 26,271 would yield 105 - 131 new businesses per year. This data indicates a "hidden" Wethersfield business community that could generate demand for additional space in the community in the future as these small businesses grow.

According to the Connecticut Economic Resource Centerís Business Data for the First Quarter 2001, Wethersfield has a total of 1,141 businesses with 238 listed with one employee.

 

Housing Data

 

The Capitol Region Council of Governments has been producing the Capitol Region, Home Sales Price Report for ten consecutive years; this report provides a snapshot of the housing market on an annual basis and allows a year-to-year comparison. Because the type of housing differs in each community, and communities experience changing forms of housing development from year to year, one should not assume that a change in median sales value equates to an actual change in the value of the entire housing stock.

The table below includes single, two and three-family homes and condominiums. The reporting period is from July to June of each year. Median sales price is the value at which half of the sales prices are above, and half are below. Mean sales price is the value of the average sales price. The mean or average is calculated by adding the sales prices for a geographic area, and dividing the sum by the number of sales.

KEY FINANCIAL DATA

 

1. Wethersfieldís Net Grand List as of October 1, 2000 totaled $1,439,607,940. This list is subject to change by the Wethersfield Board of Appeals. The 1999 Net Grand List was $1,423,228,965. The Grand List increased by $16,378,975 between October 1, 1999 and October 1, 2000.
2. In the four years prior to revaluation in 1999, the Net Grand List increased annually by an average of $18,335,199, or an average percentage increase of slightly less than 1%. More than three-quarters of the annual increase in the Grand List was attributable to residential properties.
3. The business portion of the Grand List (commercial, industrial and utility real estate, business personal property and commercial motor vehicles) for the period 1995 to 2000 is shown in Table 1. The impacts of revaluation are shown in the 1999 column.

Table 1: Business Portion of Wethersfieldís Net Grand List

	1995	1996	1997	1998	1999	2000
Commercial Real Estate	12.66%	12.56%	12.43%	12.33%	10.10%	9.96%
Industrial Real Estate	1.52%	1.51%	1.49%	1.46%	0.88%	0.88%
Utility Real Estate	0.33%	0.33%	0.33%	0.33%	0.19%	0.19%
Business Personal Property	3.43%	3.61%	3.50%	3.52%	4.29%	4.50%
Commercial Vehicles	0.11%	0.12%	0.12%	0.12%	0.16%	0.17%
Total Business Portion of Net Grand List	18.05%	18.13%	17.87%	17.76%	15.62%	15.72%

 

4. Since 1995, the value of commercial and industrial property has not been growing substantially, with the decline between 1998 and 1999 due to revaluation. Table 2 shows the value of the commercial, industrial and utility real estate, commercial motor vehicles and business personal property. Once again, the 1999 column shows the impact of revaluation.

1898. Table 3 shows the current (Fiscal Year 2000-2001) Wethersfield budget, projected budgets through FY 2006-2007 (reflecting both normal budget growth and debt service on anticipated construction projects) and the increase in revenues necessary to cover the annual budget in each fiscal year:

6. The average annual Needed Revenue Increase from one fiscal year to the next shown in Table 3 is $2,979,600 for the Approved Budget Projections and $3,083,500 for proposed forecast revisions not yet approved.
7. Under Wethersfieldís current mill rate of 30.81 and Connecticutís mandated 70% assessment ratio, each $1 million of new taxable property adds $700,000 to the Grand List and results in $21,567 in new tax revenues.
8. To generate the average annual $2,979,600 of Needed Revenue Increase shown above in the Approved Budget Projections solely from Grand List growth would require more than $138 million in growth to the Grand List each year for 6 years. Nearly $143 million in annual Grand List growth would be needed to yield the $3,083,500 of Needed Revenue Increase shown in the revised budget forecast scenario. As the historical growth of the Net Grand List (prior to revaluation) was $18.3 million annually, it is unlikely that the additional revenue needed will come solely from Grand List growth. Obviously, there are other sources of revenue that the Town will receive; however, property taxes account for 84.99% of total revenues in the FY 2000 ñ 01 budget.
9. Between 1995 and 1998, the business portion of Wethersfieldís Grand List grew by $1,149,526 from 1995 to 1996, declined by $1,231,720 from 1996 to 1997, and grew by $664,855 from 1997 to 1998. Normal growth in the business portion of the Grand List, or even a reasonable but significant growth in the business portion will not generate the additional revenues needed for Wethersfieldís projected budget needs.
10. As a point of reference, Table 4 shows Wethersfieldís current top taxpayers. As one example of the impact of economic growth, if the value of real property at Putnam Park ($9,279,300) were to double through new construction, this would yield Wethersfield an additional $285,895 at the current mill rate. While substantial, this comes no way near meeting the revenue needs discussed above.

Table 4: WETHERSFIELDíS TOP 25 TAXPAYERS

Real Estate, Personal Property and Motor Vehicles Combined at 70% Assessment Ratio

October 1, 2000 Grand List (Before Board of Appeal Adjustments)

RANK	OWNER	TYPE	70% ASSESSED VALUE
1	Connecticut Light & Power / N.U.	utility	$16,322,200
2	Executive Square Ltd Partnership	apartments	$12,104,200
3	Wethersfield Residential Assoc.	apartments	$11,969,200
4	Connecticut Mutual Life Ins. Co.	shopping center	$9,318,600
5	Putnam Park Associates	office building	$9,286,400
6	Connecticut Natural Gas	utility	$7,915,800
7	Neiditz, Daniel M. et. al.	shopping center	$7,824,000
8	I.B.M. Credit Corp.	leased equipment	$5,607,100
9	Crosstone Realty Assoc. et. al.	nursing home	$5,548,500
10	1290 Realty LLC	office building	$4,917,300
11	Fleischmann, Karl Trustee	apartments	$4,345,200
12	Wethersfield LLC	office building	$4,326,400
13	Silas Deane Assoc. Ltd. Partnership	shopping center	$3,420,400
14	Silver Cove Associates LLC	shopping center	$2,914,800
15	Wethersfield Commercial Assoc.	shopping center	$2,777,300
16	Susa Partnership L.P.	self storage facility	$2,761,400
17	Prime Development Group LLC	shopping center	$2,678,000
18	Baldwin, Merritt N.	office building	$2,633,800
19	Balf Co.	vacant land	$2,473,500
20	Wethersfield Country Club Inc.	private golf course	$2,426,950
RANK	OWNER	TYPE	70% ASSESSED VALUE
21	Gersten, Charles D., Trustee	bank/offices	$2,373,200
22	Burritt Assoc. Realty Development Corp.	office building	$2,370,000
23	Singer, Allan & Bruce	retail furniture outlet	$2,097,200
24	General Equities Inc.	warehouse/distribution/ convenience store	$1,936,100
25	Scata Family Ltd. Partnership	motel	$1,859,900

Source: Data from Wethersfield Assessorís Records

11. Although dated, the Connecticut Policy and Economic Councilís analysis of the commercial, industrial and utility portions of the FY 1998 ñ 99 municipal grand lists (based on the October 1, 1997 grand list numbers) shows Wethersfield has a smaller business portion of its Grand List than surrounding communities (except Glastonbury) and the State as a whole. Table 5 presents these statistics.

(As of October 1, 1997)

12. The Economic Development Steering Committee has discussed as a goal, an increase in the business portion of the Townís Grand List to 16.72% over the next 10 year period (or by the 2010 Grand List). Using the 1999 Grand List of $1,423,228,965 as a base and assuming a continuation of the 1% annual growth in the Grand List, this would result in an October 1, 2010 Grand List totaling $1,587,850,800. A 16.72% business portion of that figure would be $265,488,654, compared to the 2000 business portion of $229,883,770. This is a $36,604,884 increase in business property in a 10 year period, an average annual increase in the value of business property of $3,660,488. This compares with a recent increase in the business portion of the Grand List averaging about $1,545,000 million annually.
13. Wethersfieldís tax base growth is constrained by a limited amount of undeveloped land zoned for business development. Unless additional land is made available for development or older forms of growth are replaced with more intense or more valuable newer forms, Wethersfield will not be able to generate a significant portion of its new revenue needs from traditional forms of business development.

As part of identifying the economic development potentials and needs of the Town of Wethersfield, and developing a marketing and product improvement strategy to capitalize on the potentials and meet the needs, it is necessary to understand the broader context in which modern economic development occurs. Economic development is a continually evolving process and discipline. How it occurs today is much different than how it occurred as recently as five years ago. It is important to understand some of the key philosophies and trends upon which current economic development is dependent:

Economic Development Is Extremely Competitive.

According to The Wadley-Donovan Group, Ltd., one of the nationís most active site location consultants (based in Morristown, New Jersey) each year there are only 2200 to 2400 manufacturing and office facilities employing 20 or more announced in the US. These projects represent both new facilities and relocations. There are 11,000 or more economic development agencies in the United States alone, competing for these projects (source: Growth Strategies Organization, Vail, Colorado). Worldwide, there are approximately 10,000 existing business and industrial parks (of which about half are in the United States), complete with all infrastructure, being used as a primary tool to win these projects (source: Conway Data, Atlanta, Georgia). In other words, in the United States alone, there are about 5 times as many economic development agencies as there are projects of substantial size announced annually, and nearly twice the number of business and industrial parks as the number of larger projects. The competition to attract the capital investment brought by business locations is fierce.

The Need to Avoid Elimination.

Due to the abundance of locational opportunities, the site selection process relies on an initial phase that emphasizes rapid elimination of regions and communities so as to reduce the areas to be studied in detail to a workable number. Even the smallest community flaw can result in elimination. Critical community attributes currently are:

• Essential community data and the ability to quickly produce customized reports.
• Adequate labor supplies and skills.
• An inventory of available, fully serviced sites and buildings.
• Expedited permit and approval procedures.
• Incentives and assistance programs.
• A business climate that shows the community is seriously interested in the project.

There are many other variables evaluated, and different industry sectors and companies will have their own set of priorities, but those listed above are currently the most important to most companies.

The duration of the typical site location process has been cut in half from only 5 years ago. The Wadley-Donovan Group reports that the typical time frame for larger projects now allows 6 to 8 weeks from the beginning of the process to the selection of the "preferred" community, and another 6 to 8 weeks to have a site under control. These companies expect to receive all local permits and approvals within a 14 day time frame (with 7 days preferred) and all state permits and approvals within a 45 day period (30 days is preferred). Smaller companies may have longer time frames, but delay is still a project killer.

Due to this need for expeditious project processing, an increasing number of communities are responding by creating clear land use regulations and empowering staff to issue necessary permits and approvals when projects are found to be in full compliance with regulations after careful review. Competitive communities are constantly evaluating their project approval procedures in order to streamline them.

Between 65% and 75% of all prospects conducting a site search begin looking for an existing building into which they can move quickly. In most states, about 50% of projects that actually occur use existing buildings. Again, this is a function of the need for speed. This puts a premium on having available both vacant space and fully serviced sites on which construction can begin immediately and be completed in a short time frame. The majority of companies are unwilling to wait for a community to debate whether to help make a site ready, prepare designs, commit financing and undertake infrastructure construction. There are too many other communities already fully prepared. If you are not ready, you lose.

We are in an era, expected to continue for a long time, of a "global jobs auction". Companies have jobs to offer (and the capital investment that comes with them) and can put them in a variety of locations. Connecticut competes not only with New York and North Carolina, but with Barbados, Ireland and India as well. It is a buyerís market, and communities like Wethersfield are both the sellers and the commodity being sold. Having an adequate inventory of available buildings and sites is one common community response. Increasingly, communities are also creating aggressive incentive and assistance packages and comprehensive informational databases in order to increase community competitiveness. The work is being done before the prospect arrivesónot after.

For the past several years, there has been an entrepreneurial explosion occurring. Annually more than 1million new businesses are created in the US (source: Dun & Bradstreet), and in 1997 for the first time, more than half (705,000 of 1,315,000) were home-based. This trend, expected to continue, makes the availability of reasonable home occupation regulations important, which requires a periodic review of those regulations. Regulations should include a registration process to assure that the host community receives applicable tax revenues.

Retailing as we have known it is changing. Many communities are experiencing a decline in the vitality of older shopping areas. Communities are being impacted by the following regional and national trends:

• Overbuilding of retail space (from 13.1 square feet per capita in 1980 to 19 square feet per capita in 1998) has resulted in increased retail competition, retailer bankruptcies and increased vacancy rates.
• Department store consolidations have caused store closures in commercial centers where sales were below par and where similar merchandise was offered.
• Big box and category killer stores have caused closures and bankruptcies among local stores and smaller store chains that cannot match their prices and promotional budgets. This has resulted in fewer tenants for shopping centers and more competition for those fewer tenants.
• Retail establishments are seeking to cluster in larger, master-planned and coordinated environments to draw larger numbers of shoppers and then pass them among multiple stores.
• Catalogue and Internet shopping are reducing sales in traditional retail establishments.
• Entertainment retailing is intended to give shoppers an experience beyond just the purchase of goods. Usually this requires larger amounts of space.
• Grocery stores are trending toward larger stores (Wal-Mart is experimenting with freestanding 40,000 square foot grocery stores) and drugstores toward larger freestanding stores.
• Chain restaurants are proliferating, causing more competition for local restaurants.

A common fear is that the expansion of electronic commerce will cause a significant reduction in the demand for space. While this may be true at the retail end of the chain, as more people buy more goods without visiting a store, the opposite is occurring at the distribution end. More e-commerce vendors are requiring increasing amounts of order fulfillment space, scattered in a variety of locations. Many of these facilities do not need high bay space for racking systemsórather, they need large footprint space with sophisticated conveyor, sorting and shipping systems. Many older, low ceiling manufacturing or retail buildings are ideal for conversion into this type of use. E-commerce fulfillment facilities also frequently employ more workers than traditional distribution warehouses. The current state of e-commerce is one of rapid change, and perhaps turmoil. At present, business-to-business e-commerce appears stronger than business-to-consumer transactions, but the impact of e-commerce on retailing is still indisputable.

Modern business facilities are vastly different from their predecessors. Architectural design, building code requirements and performance standards all aim at making business buildings and operations more attractive and better neighbors. Frequently, community hesitation to committing to more economic development is a reflection of a deserved dissatisfaction with the negative consequences of older projects. Community education is often a necessity to demonstrate that these kinds of negatives are no longer likely under the communityís current regulations, policies and procedures.

Economic development is one of the few areas of community expenditure where a return-on-investment canóand shouldóbe expected. Across the country, communities are increasingly thinking and behaving entrepreneurially. They are willing to make strategic investments in projects or the community infrastructure necessary to obtain and support company expansions and locations, with the calculated expectation that this investment will reap the jobs, tax base and quality of life improvements the community desires. Increasingly, communities are investing in projects located outside their boundaries and being compensated like private developers. Often these projects are joint ventures by multiple governmental units.

In the world of economic development, communities (or regions) are commodities. Companies select locations based on how well the location meets the companyís needsónot based on how aggressive and sophisticated the areaís marketing program is. While a thrust of this project is to position Wethersfield for an aggressive economic development marketing program, the Town must constantly strive to make necessary improvements in itself as an economic development product in a highly competitive marketplace. Some of these improvements will be physical in nature; some will be procedural; and some will require additional planning.

Every resident of Wethersfield is a member of the communityís marketing teamóbut business executives rely on other sources of information in forming their opinions of an areaís business climate. A May 1999 survey by Development Counsellors International (New York, NY) reported that corporate executives use dialogue with industry peers as the leading source of information influencing their perception of a stateís and regionís business climate, followed by articles in newspapers and magazines. A positive image and attitude can be an important marketing toolóa negative image and attitude can be a huge obstacle.

A normal element of most every economic development strategic plan is an assessment of the locationís key strengths and weaknesses. The strengths provide a basis for a strong marketing program that capitalizes on those features businesses will react to positively as they consider potential locations in which to start up, expand or relocate. The weaknesses are those negative factors that may result in a communityís being eliminated from consideration, and therefore should be addressed as part of a "product improvement" effort.

Companies evaluating locations typically consider about a dozen categories that define a community; these are:

r Transportation r Suppliers and Support Services.

r Labor Force r Capital Availability and Incentives

An assessment of strengths and weaknesses must take into consideration that what is a strength for one type of business may be irrelevant, or even a weakness for others (for instance, a high traffic count may be desirable for retail merchants, but may be perceived as traffic congestion by a distribution firm whose trucks need to cross traffic). Similarly, a strength of a location as a residential community may not be seen as such by businesses (for example, a very restrictive sign ordinance).

The following analysis of Wethersfield first provides a compilation of primary strengths and weaknesses, and then cross-references them against residential and several types of business development. A summary of this evaluation of Wethersfieldís strengths and weaknesses is:

• Wethersfield has many attributes that make it a desirable place to live. Its residents want to make sure that future development does not diminish that desirability and that current deficiencies are corrected.

• Wethersfield also has many characteristics that would be attractive to a broad range of business types. That desirability is offset by a lack of available sites and vacant buildings and a lingering image that the Town is not as business-friendly as it could be.

• Characteristics that once supported the Townís primary economic sector ñ retail ñ are changing, making it necessary that Wethersfield both seek to reduce its reliance on retail trade and at the same time, take action to assist those retailers already in the community or who do seek to locate there.

In preparing this update of Wethersfieldís Economic Development Strategic Plan, two critical, cross-cutting issues emerged from the interviews, literature research, Economic Development Steering Committee meetings and other work, as those issues that should shape Wethersfieldís updated economic development strategic plan.

1. The Need to Expand the Local Economy to Reduce Dependence on the Residential Property Tax

Wethersfield needs to reduce its reliance on residential property taxes. The Townís grand list has been declining in some years (due in large part to revaluation) or growing very slightly in other years. Residents are beginning to "feel the pinch", with taxes, which were once considered low, now considered to be moderate and rising. The Townís high number of elderly residents, many on fixed incomes, are very sensitive to rising taxes. School enrollments are rising and the Townís desirable location and quality makes it likely that there will continue to be an influx of new families, causing increasing demands for schools and other services. New community facilities such as the police station and library expansion must be paid for.

National studies show that the typical residential property pays only 25% to 50% of the cost of municipal services received. Conversely, non-residential properties pay 2 to 5 times in taxes what they receive in service costs.

If the Town of Wethersfield is to continue to provide the services its residents expect and that contribute to the Townís high quality of life, growth in the Townís economic base is necessary.

 

2. The Desire to Retain the Essential Character and Improve the Quality of the Community

As much as expansion of Wethersfieldís economic base is necessary, it must not occur at the expense of the character and quality of the community.

The appearance and quality of the Silas Deane Highway and Berlin Turnpike have been of concern for many years. More recently, the changing uses and the perception of declining quality at the upper end of the Silas Deane Highway have become a concern for some residents.

Development causes change. Change is neither good nor bad per se, but the unknown nature of the change naturally leads to fear about it. Except in those communities that are fully built out at the ideal quality level, future development and change are inevitable. They can occur haphazardly or they can be managed effectively.

A strategic plan is a management tool. Wethersfieldís economic development strategic plan must be crafted to provide an effective tool for managing the townís economic growth so as to meld the needed development with the desired maintenance of character and quality.

Within the context of these cross-cutting issues, this Economic Development Strategic Plan Update focuses on the following five elements:

1. Providing an Appropriately Diversified Economic Base
2. Economic Development Readiness
3. The Need for Community Education
4. Community Quality Improvement
5. Existing Business Assistance and Recognition.

Wethersfieldís economic base has long been dominated by retail uses focused along the Silas Deane Highway and Berlin Turnpike. The visual quality level of these two areas has been of concern for a long time. The economic vitality and viability of these areas is a growing concern.

The retail market in the Greater Hartford area is changing. Major expansions have taken place at the Farmington Valley Mall and West Farms Mall. The huge Buckland Hills Mall and surrounding area is relatively new and continues to expand. "Category killer" or "big box" stores continue to become more prevalent in more retail categories.

On top of these regional trends, national changes related to catalog shopping and e-commerce also impact the viability of local retail establishments. Finally, there may be ongoing changes in Wethersfieldís local demographics in terms of median age, disposable income and source of shoppers and shopping preferences that are having an impact on the demand characteristics of local shoppers.

An additional component of Wethersfieldís economy has been tourism. The prior economic development strategic plan put an emphasis on tourism, including it as one of five primary goals comprising the strategy. Tourism can continue to be a component of Wethersfieldís economic base, but it will not be a driving force. The Town lacks the critical mass of tourist venues and activities to be a major tourist draw. Finding suitable locations for additional tourist attractions is difficult.

The primary tourist attractionóthe Old Wethersfield Historic Districtóis also one of the Townís nicest residential neighborhoods. On the one hand, merchants located in the District would like to see a significant increase in customer traffic into the area. On the other hand, some District residents oppose, or are very concerned about any major increase in traffic past their homes.

The creation of a Tourism Commission has been approved by the Town Council and the members have been appointed. The Economic Development Steering Committee has recommended that future consideration of tourism issues be the purview of the new Tourism Commission.

The need for economic growth, combined with a declining emphasis on retail as Wethersfieldís dominant economic sector and limited prospects for tourism as an economic engine, mean that diversification is needed. This strategy does not advocate abandoning retail as an important part of Wethersfieldís economy. However, it does not concentrate on recruitment of additional retail establishments; rather, it focuses on expanding other business sectors needed to diversify the Townís economic base. Such diversification already exists, but effective marketing and economic development readiness require that Wethersfield:

• Identify those types of businesses that both can capitalize on the locational, demographic and other strengths of the town and are considered desirable by Wethersfieldís residents; and

• Identify and provide appropriate locations and real estate products required by those types of businesses.

• Take steps to assist existing retail stores and those attracted to Wethersfield in the future to prosper and improve the visual quality of existing retail areas.

• Support the establishment and operations of the Townís Tourism Commission.

Continuing to grow Wethersfieldís economy will require a focused effort to maximize appropriate development in the Townís existing growth corridors.

• The Silas Deane Highway should be a positioned as a location for additional medical services offices and facilities. The northern portion will also have smaller, locally oriented retail establishments. The central portion will also serve as the government services center (with development of an improved United States Post Office as a key element). The southern portion, with its access to Interstate 91, will be the location of larger retail and office facilities.

• The Berlin Turnpike should be positioned as a restaurant and entertainment corridor, to take advantage of its high traffic count and continue the recent history of this type of development.

1.1.A. This list should include:

• Sites suitable for adaptive reuse where the type of use on the site may be changed (for instance, from retail to office), where additional density may be created (for instance, by adding additional stories) or where the land may have more utility than the current structures.

• Smaller vacant sites or those not developed to full density which would be suitable for infill development (such as Putnam Park).

• Vacant areas and sites suitable for larger scale new development in the future (such as the Balf property).

1.1.B. For each site on the list, the Town should identify a preferred use of the site, and initiate

discussions with property owners and/or developers to stimulate development.

1.1.C. All appropriate sites should be listed on the Connecticut Economic Resource Centerís

Site Finder Inventory. The site inventory should be updated at least quarterly. The site

inventory should also be provided regularly to commercial/industrial real estate brokers

and developers.

1.1.D. Where necessary, appropriate changes should be made to Zoning Regulations and

Districts to support development and redevelopment of underutilized commercial

properties.

Objective 1.2: Create a Wethersfield business incubator (that is, a multi-occupant building providing low cost space and support services that assist new businesses of all kinds in successful start-ups).

1.2.A. Undertake a market analysis to demonstrate the demand potential for space in a business

incubator and the primary assistance programs such an incubator should provide.

1.2.B. Identify a vacant or underutilized building suitable for creation of a business incubator.

1.2.C. Create an Incubator Task Force with the responsibility of carrying out the planning,

1.3.A. Review Wethersfieldís Zoning Regulations to assure that they support the operation of

reasonable forms and levels of home-based businesses.

1.3.B. Conduct a census of home-based businesses in Wethersfield to assure that all are

registered with the Town and that the Town is collecting taxes on business machinery and

1.3.C. Create an annual Business Plan Competition that stimulates the planning of new business

ventures, awards $2,500 prizes to 4 semi-finalists, and a $10,000 grand prize to the

winner to help start the business. Identify local businesses, venture capitalists or angels

willing to donate the funding for the prizes.

1.4.A. In conjunction with the Wethersfield Chamber of Commerce and appropriate merchantís

groups, develop and implement an effective "Buy Local" Program.

1.4.B. Explore the possibility of establishing a non-traditional Main Street program (as defined

by the National Trust for Historic Preservation) for the Silas Deane Highway or a portion

of it.

1.4.C. Establish a Silas Deane Highway Merchants Association.

1.4.D. Work with the Old Wethersfield Shopkeepers Association, Berlin Turnpike Merchants

Association, Silas Deane Highway Merchants Association, and the Wethersfield

Chamber of Commerce to develop cohesive marketing, events and improvement

strategies for the three primary commercial areas in Wethersfield.

1.5.A. The Tourism Commission should be tasked with identifying means to attract more people

to existing tourist locations and events and identifying new events that can be created.

1.5.B. Operations of the Tourism Commission should include:

• Develop a town-wide tourism plan.
• Establish an educational and recreational agri-eco tourism program for the townís farms.
• Create and promote Wethersfield as a "fun place to be" because of its tourism activities and events.
• Develop a hospitality training program for merchants and workers in establishments frequented by tourists.
• Identify necessary improvements of events such as the Wethersfield Festival, Cornfest, Fall Weekend-Scarecrow Contest and other key events.
• Create a walking weekend that exposes visitors to Wethersfieldís tourist attractions.

1.6.A. Create and implement an annual marketing plan with specific targets, activities and

1.7.A. Prepare a break-even analysis of what types and values of homes generate more in real

1.7.B. Identify and acquire underutilized properties. Invest Town funds to make the property

more marketable and sell for a profit.

1.7.C. Develop speculative buildings that meet market real estate needs. Sell the building for a

profit or lease for long-term cash flow.

1.7.D. Create an investment pool to allow the Town to invest in real estate projects located

elsewhere, resulting in cash flow from property leases or profits from property sales.

The method most businesses use in searching for a location starts with a process of elimination. There are many more possible locations than there are businesses looking for locations. It is a buyerís market, and communities are both the seller and the commodity being sold. The businesses eliminate as many communities as possible as quickly as they can to reduce the location choices down to a manageable number.

In the past, Wethersfield has had the reputation of being a difficult place in which to undertake development, with a capricious permit and approval process, the potential for significant community opposition based on questionable logic, and the unwillingness of local leadership to make pro-development decisions. Many improvements have been made in the permit and approval process over the past few years, particularly at the staff level, where a distinct customer service mindset is now evident.

Nonetheless, a negative image of Wethersfield continues to exist, and is refueled by instances such as incentive offerings approved by the Town Council, which are then taken to referendum and defeated. In addition, Wethersfieldís Zoning Regulations are considered by many to be too complex and outdated in respect to some forms of modern business.

Most of the site search variables are regional in natureólabor force, quality of life, available subcontractors and support services, etc. There are several variables, however, that are community specific. In order to maximize its competitiveness, Wethersfield must:

• Continue to improve its business climate as demonstrated through clearly defined and objectively regulated permit and approval regulations and procedures.

• Assure that it has available sites and buildings with necessary infrastructure (utilities and road access) for the types of businesses being sought.

• Have a published, flexible incentive policy that can be tailored to the specific needs and opportunities of individual projects and that is not likely to be subjected to a referendum process.

• Develop public/private partnerships and promote local leadership to make Wethersfield competitive in the global marketplace

2.1.A. The Economic Development and Improvement Commission should provide essential

2.1.C. The Townís annual Business Survey should provide the opportunity for respondents to

comment on desired modifications to Zoning Regulations.

2.1.D. Convene a periodic Development Process Roundtable comprised of Town Staff and

representatives of Boards and Commissions that regulate the development process, as

well as representatives of the real estate, architect, engineering and development sectors.

The purpose of this group would be to identify specific problem areas in the Townís land

use regulations and procedures and recommend methods to correct these deficiencies in

ways that protect the integrity of the Townís land use planning and management while

also making Wethersfield more business friendly.

2.2.A. Prepare a draft Business Incentive Policy that meets the requirements of C.G.S. Chapter

203, Section 12-65b. This policy should address both new business construction and

business expansion. The policy should contain both tax incentive provisions and other

forms of incentives the Town is willing to offer (e.g., waiver of permit fees). Benefits

2.2.B. The draft Business Incentive Policy should be widely publicized and discussed and

debated at one or more public meetings. Input from these meetings should be used to

make any necessary modifications to the Policy.

2.2.C. The Business Incentive Policy should be adopted by the Town Council and should be

voted on during a Town election.

2.3.A. This database should include all typically requested data fields, zoning and community

profile information, economic and tax information, recent sales or leasing information,

2.4.A. Create "Team Wethersfield" which will include all Town Council, Town staff and Board

signifying their participation on the team (e.g., a pin, paperweight, tee shirt).

2.4.C. Develop a community-wide, public/private advocacy for economic development in

Wethersfield by:

• Establishing broad-based resident support for economic development through informational forums about issues/programs.

• Forming economic development strategic alliances with other sectors of the Wethersfield community (including historic preservation, tourism, natural resource conservation, recreation, land use, agriculture and others as appropriate).

• Strengthening relationships between Town government and the business community (see Goal 5: Existing Business Assistance for additional details.)

2.4.D. Strengthen regional and state and other alliances that can be beneficial to Wethersfieldís

economic development program.

• Meet on regular basis with allies such as the Connecticut Department of Community and Economic Development, Metro Hartford/Economic Growth Council, the Connecticut Economic Resource Center, state senator and representatives, utilities, commercial and industrial real estate brokers.

• Meet with representatives and officials from surrounding communities to explore areas of opportunity for joint development (for example, Rocky Hill shares Wethersfieldís concern about the visual quality of the Silas Deane Highway; Berlin is working on a plan for redevelopment of the Berlin Turnpike; the Balf property lies in both Wethersfield and Newington).

.

• Meet with state officials to pursue acquisition or private sector development of the Department of Motor Vehicles property.

• Continue membership in regional, state and national economic development associations.

2.5.B. When the most beneficial organizational structure has been identified, prepare an

appropriate job description.

2.5.C. Prepare an annual budget for economic development staffing and operations. Secure the

necessary funding.

2.5.D. Advertise the position nationally and hire the most qualified applicant.

2.6.A. Designate one or more target areas to be the focus of the Development Agencyís efforts.

2.6.B. Task the Development Agency with identifying desirable projects that can utilize the powers residing in such an agency for the benefit of Wethersfield.

2.6.C. The Development Agency should prepare a target area master plan and all other elements required by law for adoption and implementation in accordance with stipulated procedures in the Connecticut General Statutes.

 

 

 

 

A necessary but often overlooked element of a community economic development strategy is the need for effective internal communications and community education. Community opposition to future development is frequently based on the natural and rightful unwillingness to tolerate more of a type or quality of objectionable development that is already present.

On the other hand, community residents may have a hard time sorting through the "myths and realities" concerning types of development and specific projects, and the impacts on the community from them. This concern about and lack of support for development is naturally reflected in the decision-making by elected and appointed leaders. Wethersfield continues to have the reputation of being anti-change, yet change is inevitable. The Wethersfield of 2000 is much different from the Wethersfield of 1950; the Wethersfield of 2050 will not be the Wethersfield of today.

If economic development is to occur in Wethersfield, the community must:

• Replace its perceived anti-change mentality with a growth-management mentality. Put differently, "No Growth" must be replaced with "Smart Growth".

• This "smart growth" attitude must be conveyed by the Townís Boards, Commissions and staff through a continued customer service focus, assurance that regulations and their enforcement are reasonable, and efforts to make the Townís permit and approval process more streamlined. (See Objective 2.1 for recommended actions on this item.)

• Make improvements in the Townís ongoing community communication process so that development related issues are clearly understood by residents at the earliest possible time.

3.1.A. Prepare a simple summary of the Plan Update for widespread dissemination.

3.1.B. Present the Plan Update to civic organizations and invite organizations to participate in

implementation.

3.1.C. Present the Plan Update in a public forum televised on local access television.

3.2.A. Create an economic development program for broadcast on public access television.

3.2.B. Issue regular press releases to all area media about economic development matters in

Wethersfield.

3.2.C. Include an "Economic Development Happenings" on the Townís website.

3.2.D. Include an insert on economic development matters in all community-wide mailings

made by the Town.

3.2.E. Create an Economic Development Speakers Bureau and talking points. Run a training

Although Wethersfield is considered to be a high quality community, there is room for improvement. This is especially true in its commercial districts, where there is a mixture of visually attractive establishments and those in need of upgrading. Some buildings require exterior improvements. Additional landscaping would help in many areas. Signage is of mixed quality. The elimination of overhead electric and telephone lines along major commercial arteries is desirable, but expensive. There is a lack of a unified design theme along the Berlin Turnpike and Silas Deane Highway. These commercial areas provide the major gateways into the community and therefore make the first impression for visitors.

There are many ways communities go about improving quality. It can be as simple as creating a design review element of the normal site plan approval or a façade improvement loan program (such as the Wethersfield Express Loan Program currently under consideration). It can be as aggressive as the community acquiring property and investing in improvements. Wethersfield must determine its appropriate role in improving the communityís appearance.

The strategic plan update should:

• Implement the Wethersfield Express façade improvement loan program or other tools to assist with the visual improvement of existing commercial properties and areas.

• Recommend a means for instituting a design review process that will assure that future development will be of high quality and appearance. Such a design review process must not be just an additional layer of regulatory demand; rather it should add value for those undertaking development in Wethersfield. Creation of such a design review process will require interaction with the Townís Planning and Zoning Commission and Planning staff.

• Consider other appropriate methods for improving the appearance of existing commercial areas and assuring that new development is attractively designed and constructed.

4.1.A. Obtain Town Council approval and commitment of Town and bank funding to make this

4.2.A. Create concept design plans for each area showing specific improvements that are

necessary.

4.2.B. Design and implement improvements to the gateways to Wethersfield through increased

garden and tree plantings, improved landscape maintenance, brick sidewalks, pedestrian

friendly lighting, attractive light poles, signage, benches and trash receptacles, and

similar design elements. Such efforts should be done in partnership with the

Wethersfield Beautification Trust, garden clubs, service groups or others as appropriate.

4.2.D. Create mechanisms to enhance quality development and appearance of signage.

4.2.E. Implement the Wethersfield Cove Park Master Plan 2000.

4.3.A. Research similar design review processes, boards or alternative approaches used in other

communities and the process that was used to establish them.

4.3.B. In cooperation with the Wethersfield Planning and Zoning Commission, develop a

recommended ordinance or other enabling action describing the composition, functions

and operations of a Wethersfield Design Review process.

4.3.E. Prepare a Design Review booklet describing and illustrating preferred design elements

and standards for building design and materials, landscaping, signage and similar items of

concern about the appearance of Wethersfield.

The majority of economic growth comes from the businesses already in a community. Although a close relationship exists between the Townís Economic Development and Improvement Commission (EDIC) and the Wethersfield Chamber of Commerce, past limitations in Wethersfieldís economic development staffing have resulted in only a minimal ability to service existing businesses through such activities as periodic visits by Town officials and an annual Business Survey.

A more aggressive existing business assistance and recognition program is necessary to retain those businesses already in town and help them grow and expand. Expansion of these services will require a higher level of economic development staffing capacity and budget in the future.

5.1.B. Build upon the successful Annual Business Survey to include additional questions on

specific business assistance needs. Use this Survey in the Community-wide business

visitation program.

5.1.C. Communicate findings from the visitations and survey to the business community, Town

Boards, Commissions and Staff, and where appropriate, to the Connecticut Business and Industry Association or other appropriate groups or individuals.

5.1.D. Develop seminars, written materials or other appropriate response mechanisms to meet

needs identified through visitations and surveys.

5.2.B. Hold a Taxpayers Breakfast for the Townís Top 25 Taxpayers to thank them for being in

Wethersfield and encourage dialog with the Town about needs and problems of the

businesses.

5.3.B. In conjunction with the Wethersfield Chamber of Commerce, develop a business

5.3.C. Based on assistance needs identified during the business visitation and survey program,

create programs that address these needs.

 

 

EVALUATION AND MONITORING

Evaluation provides a systematic basis for assessing where the organization is in relation to where it wants to be and provides periodic monitoring so that adjustments can be made where necessary.

The evaluation of the economic development effort has three dimensions:

1. To monitor progress;
2. To assess performance; and
3. To determine the level of impact.

The purpose of monitoring is to determine whether specific actions and activities were achieved. Each project should be monitored according to time and expenditures.

Periodic evaluation of those individuals and organizations carrying out the work program is necessary.

The ability to measure the impact of an economic development program is dependent upon the ability to measure change in the community and to relate that change to specific actions that have been undertaken. This change can be measured in the number of new companies attracted, new business formations, the increase or decrease of jobs, the increase in real income levels, or the unemployment rate.

This change should be more than just quantitative. Qualitative change should be measured as well. This could be done through surveys, documented case studies, and specific examples of success.

Gathering this type of information involves a cost in time and staff, but this type of information is necessary during the course of evaluation.