Yale Buys Bayer Site; DeStefano Warns Region

by Paul Bass | June 13, 2007 5:01 PM | | Comments (7)

Bayer.jpgAfter initial concern about the impact of New Haven of Yale’s decision to buy Bayer’s abandoned property in West Haven, Mayor John DeStefano said Wednesday that he now sees the transaction as more of a wake-up call to the region about economic development.

Yale made it official Wednesday. Yale President Rick Levin announced that the university is buying the 550,000 square feet of research facilities Bayer is abandoning in West Haven.

Levin said in a statement: “Yale is already in the midst of a boom in the expansion of its science and medical facilities. The addition of this ready-made, state-of-the-art research space will allow that growth to accelerate at an unprecedented level — potentially making it possible for Yale scientists to develop new discoveries, inventions and cures years earlier.” he also reaffirmed the university’s community to building within New Haven city limits — “more than 2 million square feet of new facilities … over the next six years.”

Click here to read the release.

Over the past week, before the news became public, City Hall was abuzz with concern about what this would mean for New Haven’s tax base. A central platform of the city’s economic strategy has been to help Yale encourage researchers to launch businesses and create jobs and new tax revenue — in the city, not the suburbs.

After the announcement Wednesday, Mayor DeStefano said his thinking evolved on the issue the past few days. Here’s what he said:

“The interesting thing to me is more of a macro issue. I don’t have concerns that Yale is moving out of the city. I don’t have concerns that it is going to dramatically impact New Haven.

“We have had two large private sector campuses - Anthem and Bayer - flip in the past year. Both went to tax-exempt purposes. To me the real shame of Bayer is not that Yale’s going there, but what’s not going there - for-profit pharmaceutical. It points to a concern the whole region should share about the lack of growth in the private sector.

“It’s fair to say I’ve had lots of discussions with my staff, with aldermen, with the leadership of the university about this and wrestled a lot about it. I have had concerns, but came to a point of view about it this has less to do with the city than it does with the general concern of mine, the lack of private sector growth.

“Whether you’re New Haven, West Haven, or any community, institutional growth is important. But maybe it’s time for we in City Hall here in New Haven to think differently about economic growth - not only to partner with the university, but the need to partner elsewhere as well.

“I started my thinking in one place on this, and ended up in another place - the city needs to look at how it partners with the private sector.

“It’s not a problem Stamford has. Stamford has had huge private sector growth. Hartford and the Hartford region retains very large financial service industries. I really think it speaks to the state of the private sector in south central Connecticut.”







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Comments

Posted by: Gary Doyens | June 13, 2007 5:48 PM

It's a wake up call alright -- City Hall, namely Mayor John DeStefano and his closely aligned staff as well as certain members of the NH BOA should stop trashing institutions and businesses in New Haven. From New Haven Savings (now New Alliance Bank) to Yale University to Yale New Haven Hospital -- this administration has repeatedly bad mouthed, bullied and shaken down these institutions for political and financial reasons. It's never been right. We are very fortunate that the Yale Cancer Center didn't move out of New Haven which it very easily could have done and in fact, was being courted to do.

Mr. DeStefano says his thinking has evolved on this acquisition to a general concern about the lack of private sector growth. He's just now coming to that conclusion? How late can one come to the party and still be considered to have attended? Perhaps his travels across the country for three years in search of campaign donations for his gubernatorial run made him unaware of the systemic job losses, the erosion of the tax base, the downturn in homeownership, the rise in poverty, and the sickly job creation in the last decade in New Haven -- almost none of it coming from the private sector.

Topping it all is Mr. DeStefano's ill advised or poor vision in taking downtown property literally at the gates to the city -- and turning that into more non-profit, public sector, non-property tax generating development. Both the magnet school and proposed Gateway Community College developments could have been big revenue producers. We are now limited to PILOT payments and some payments in lieu of taxes. Hardly visionary. Hardly responsible.

But the mayor now has his wake up call -- so do we.

Posted by: bugupit | June 13, 2007 7:07 PM

I suspect that how well Yale felt stroked by New Haven City Hall had very little to do with their decicion to take on this opportunity. New Haven does not have a half million square feet of lab space to offer, unless Yale builds it on the State owned frontage road parcel... a challenge even if the Mayor, Jerry Poole & Pals and the BOA were all in support. Ready made campus. Smart move for Yale and Levin. One thing: I heard that as incubator, this space would remain taxable. Anyone have a definitive answer?

Appropriate response for New Haven? Embrace this as a regional gain, as the Mayor has, and take a more realistic approach to the potential of its available industrial space and the cost, all costs, of doing business here.

Posted by: Kris | June 13, 2007 9:07 PM

Well said Gary....I cant even think of anything to add to it,again very well said.

Posted by: andy ross | June 14, 2007 12:51 PM

Just like the Mayor has had a wake up call, we should wake up to the realities of the damage done to our city while someone was asleep at the wheel.
This exodus of industry was not only a blow to New Haven's tax base but also the loss of an anchor industry that would have provided badly needed economic investment by the private sector. This is only the tip of the iceberg.
This exodus of industry combined with higher taxes, out-of-control crime, and low-performing public schools can mean disaster for us. Let there be no doubt that this will have a ripple effect unless we begin an active and pro-industry strategy to attract employers.
The time has come for change: progressive leaders should make New Haven a great place for corporations and industries to do business.

Posted by: strangerthanfiction | June 14, 2007 2:39 PM

In an area where the tax burden is oppressive like ours, a wealthy non-profit like Yale has a huge advantage against the private sector. A Yale official is now even the head of the New Haven Chamber of Commerce. The Mayor's right, we are on track to being a "oayment in lieu of taxes" city.

Posted by: WEBbloger 1 | June 14, 2007 4:40 PM

DeStefano:

"It's fair to say I've had lots of discussions with my staff, with aldermen, with the leadership of the university about this and wrestled a lot about it. I have had concerns, but came to a point of view about it this has less to do with the city than it does with the general concern of mine, the lack of private sector growth.

Well hello Mr. Mayor, isn't that exactly what your economic development administrators, (Brancatti, Fernadez, and now Murphy, was to have been doing). In fact New Haven suceeded in loosing several manufacturing plants, including Winchester, Starter sports, Macys,
G&O munfacturing and a host of others you don't want repeated.
Your now telling us you've had an awaking, like you didn't know that Yale has been ripping New Haven off for years with the blessing of Daniels and your self.

DeStefano:

"I started my thinking in one place on this, and ended up in another place - the city needs to look at how it partners with the private sector.

Well hello again, In order to make New Haven attractive to private investors, you need to improve on police protection, school proficiency test, reduce the tax rate, eliminate tax free loaders, and tax exemptions. as well as, denying more yale expansion in the city, re-thinking the gateway college move into the Macy's site, and on and on and on.
I'm tired.....
When you ready let us know.


Posted by: on whalley | June 19, 2007 11:18 AM

So this one instance is enough to jar DeStefano out of madness and toward realizing what every economist and tax cut in history proven over and over aagin. Support industry and business and industry and business will support you.

Unless he just want to go all out socialist with New Haven. But then he'd have to figure out a way to keep anyone who earns a decent living locked in the city right beside the unemplyed/unemployable criminal element and the wealthy elite who dont need to earn a living more than they need the self-righteous fullfillment of pretending to support a poor unemployable population on their backs with low quality and slightly effective social programs.

I am all in favor of letting New Haven crumble and die. I'd just like it to be after Ive moved out. :)

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