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Job Description: Build The Tax Base

by Paul Bass | Jan 31, 2008 4:36 pm

(18) Comments | Commenting has been closed | E-mail the Author

Posted to: Business/Labor/ Economic Development

Len%20Samrt%202.jpgWhelley.jpgA new Yale-funded business chief came to town — as local advocates (like Len Smart, top photo) offered advice for how she can make a difference.

The new chief (pictured at left) is Michele Whelley. (That’s not a typo — the last name is one letter different from one of the city’s needier main business strips.)

Whelley is moving downtown from Baltimore to head up a new government-influenced private group called the Economic Development Corporation of New Haven (EDC). Government and business leaders introduced her at a City Hall press conference Thursday afternoon.

Yale came up with a promised $1.6 million for five years to fund the new group. The EDC will do jobs that used to be the bailiwick of city government’s economic development office — working with existing businesses to keep them here; luring new employers to town; helping neighborhood businesses expand. The EDC will serve as “one-stop shopping” for businesses needing to deal with government.

Yale Vice-President Bruce Alexander knew Michele Whelley from his days working in Baltimore and made the initial contact to lure her here. Whelley plans to assume the EDC’s CEO spot March 31. She was senior vice-president of a real estate firm called Colliers Pinkard and, before that, president of a business advocacy group called Downtown Partnership of Baltimore.

Mayor John DeStefano, who announced plans for the group in his inaugural address, said his administration has never done the job-retention job well. He said city government lacks the money or staff to carry out these duties essential to growing the city’s tax base and creating jobs.

Whelley will report to a board of directors headed by water authority chief David Silverstone, who promised the entity would be “transparent.” DeStefano promised that, unlike a similar entity that folded amid scandal earlier in his administration, the new agency would follow the same freedom of information rules applied to city government. Those include open board meetings and public access to memos and emails. Also, the agency will be run separately from the city, in a separate building.

Vin%20and%20Kelly.jpgThe city will have lots of influence over it, though. The board will include the mayor; city economic development chief Kelly Murphy (pictured with Yale-New Haven spokesman Vin Petrini), and City Plan Director Karyn Gilvarg. Bruce Alexander will sit on the board, too. Its other members have yet to be named. DeStefano said they would “look like New Haven.” Murphy will serve as the EDC’s vice-chair.

Carter Winstanley was among the business leaders on hand for the press conference. His family owns 300 George St. and 25 Science Park, with an emphasis on housing biotech firms. The family hopes to build a new facility on Route 34 land the mayor hopes to reclaim for development.

Carter%20Winstanley.jpgWinstanley (pictured speaking with DeStefano after the press conference) said the EDC’s one-stop shopping mission could prove helpful to the firms he rents by navigating state and city regulatory bureaucracies. He tries to do that for them, but isn’t great at it, he said. “A lot of tenants come to me to ask questions about how to handle radioactive isotopes,” for instance.

Len Smart, who runs the Greater New Haven Business & Professional Association, New Haven’s black chamber of commerce, was pleased that the new agency aims to address “brownfields” — possibly contaminated land that needs to checked and/or cleaned up in order to house new business.

“I think it’s a good step forward,” Smart said of the EDC. He recommended that Whelley launch a “micro-credit” program offering $50,000 or less to small businesses looking to expand onto adjacent brownfield sliver lots. He spoke, for instance, of an auto repair shop next to old railroad tracks by Bassett and Dixwell in Newhallville. “You’ve got to be able to say to a lender, ‘It’s clean,” before obtaining a loan to buy and build on land like that, Smart said.

Whelley had never been to New Haven before she began traveling here in September to discuss the new job, she said. She hasn’t had a chance yet to eat at any local restaurants. But she did hear, she said, that New Haven has great pizza.

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posted by: cedarhillresident on January 31, 2008  4:47pm

Ok I am totally excited about this!!!!I have to say this is a big BRAVO. I do give credit were credit is due.  It really is a step for a better tomorrow!! And I hope they have several “brownfields” area they will be looking into not just ones near 34

posted by: Gary Doyens on January 31, 2008  5:35pm

This sounds like the makings of something positive - at least I hope so. However, its success will directly relate to the inability of DeStefano and Kelly Murphy to control the decision making of this group.

Who appoints the rest of the board members and how does a board “look like New Haven?” 

Putting a lid on the bullying and demeaning of others on the board or with whom he disagrees will be a larger than life challenge for the mayor and could well sour something positive or scare away a potential business recruit.  As for Kelly Murphy, who reflects a lot of those same qualities (remember YNHH, CT Dept of Public Works, Tweed Airport Authority to name a few) and to which she adds her own unique heaping measure of stunning incompetence, it could be a toxic brew.

I just hope Michelle Whelley has a strong stomach and an even stronger backbone.

posted by: charlie on January 31, 2008  5:57pm

I agree, CedarHillResident, that this is a great idea.  A public-private EDC can function much more effectively and independently than a city department.

However, I would recommend that the EDC look at neighborhood quality of life issues, not just the issues of brownfields, business retention and airport expansion. 

The reason is simple: new companies will increasingly decide to locate and remain in New Haven only if there is a high quality of life.  This can be addressed if the EDC encourages the city to do basic things:

- Calming traffic so people can walk safely to their homes and workplaces,

- Improving neighborhood connectivity, by looking more closely at the places (like railroad overpasses or the blank facades of Comcast’s Headquarters Facility on Chapel Street) that currently create major divisions among the city’s neighborhoods,

- Improving neighborhood appearance (e.g., announcing new construction sites instead of just leaving them as weed-strewn lots for 18 months like the city has been doing with the new magnet school site on Water Street),

- Creating many more recreational opportunities, such as better-maintained parks, bicycle routes, and multi-use trails such as the Farmington Canal and walkways along the city’s waterfront,

- Reducing traffic and parking congestion, and encouraging local shopping, by taking steps to encourage more commute-to-work and errand trips by foot, bicycle or mass transit,

- Reducing problem crime spots by encouraging better lighting and environmental design,

- Creating a low-cost public art program to improve neighborhood quality of life, by harnessing students’ and artists’ interest. Projects could including enlivening bleak highway overpasses, long stretches of chain link fencing, murals, etc,

- Encouraging small-scale urban infill, especially in the downtown area, by greatly reducing permitting fees for new construction and looking more creatively at the issue,

- Mandating that new buildings respect the city’s scale, street grid and retail continuity.  Unfortunately, Gateway Community College is probably already a lost battle.

posted by: WEBblog 1 on January 31, 2008  6:41pm

We knew when Yale and DeStefano called the round table meeting in December 2007, included only the NH state delegation, while excluding aldermen and community activist, that this was going to be a back door deal.

On January 16th. the mayor sponsored a community meeting at Career HS to discuss the Future framework of economic development focusing on RT. 34 under the guise of “reconnecting the neighborhoods and downtown”. Translation… connect downtown and Yale, while expanding Yale’s holdings and influence. The persons invited were cherry picked and included four safe alder-persons.

If the readers here interpret this as economic development for their neighborhood and city, you are sadly mistaken.
Now we see the pieces of the short puzzle coming together, there can be little doubt.

Yale hires their gal, kicks in 1.6M and takes control of city coffers requesting Millions from the federal and state government, while Yale sponsors development and holds on to it’s tax free status.
What a plot….We have the actors, now all we need the story…. TO BE CONTINUED.
Oh, before I go I need to send a shout-out to Len Smart.

Len Smart, who runs the Greater New Haven Business & Professional Association, New Haven’s black chamber of commerce, was pleased that the new agency aims to address “brown-fields”—possibly contaminated land that needs to checked and/or cleaned up in order to house new business.

Can’t believe you DUDE, first you provide support testimony for the Tweed New Haven Airport expansion, in-spite of the fact that your organization does not use the airport and in-spite of the town of East Haven vehemently rejecting runway expansion.
Secondly, you are located in the Dixwell plaza which has the absolute worse group of storefronts and facades in the city, even through money is available for businesses in the empowerment zone, you have failed to take advantage of the opportunity.

Seems to me you have your priorities twisted.

posted by: THREEFIFTHS on January 31, 2008  7:28pm

People wake up this economic development corporation is nothing but a front for the gentrification vampires, With the help of skull and bones Yale to rob the land. And if you donot think this is what this is about Look at West Haven and there Downtown revitalization committee and you will find Michael Morand of yale on the committee, I wonder why West Haven Would Have Yale On the Board Better Keep Your Bags Pack!!!

posted by: Gary Doyens on January 31, 2008  7:58pm

Weblog: You are right about one thing: the fix was in on this deal. The mayor announced it as a priority giving the impression it was something he was going to work on and put it together out in the open with oversight and transparency by people other than cronies, appointees and reliable votes. Fact is, it was a done deal already with limited and controlled input. Even some alders I interact with regularly didn’t know the details. Why didn’t the mayor just announce earlier this month that he’d done a deal already with Yale back in December? Now I really wonder who appoints the rest of the board and how independent they will really be. DeStefano says it will all be transparent - just like the city. LOL…kind of like all the development deals, the no bid contracts, the refusal to do job evaluations so the public won’t know how well senior executives are conducting the public’s business.

It’s tough to claim it will be transparent when it was hatched and formed in secret with the public intentionally mislead about its status. That’s par for the course, though.

posted by: Esbe on January 31, 2008  8:24pm

It is sad that the city doesn’t have the money to fund a proper development agency, but since it really doesn’t, this privately funded effort is best. 

Other towns have been actively courting new businesses while New Haven gets left behind.

Weblog 1—Yale pays out $1,6000,000 to do the city’s job and you think this is the same as   “taking control of city coffers”?  I think you are confused about which way the money is flowing.  When Yale doesn’t help they are horrible for ignoring the city and when they do help they are, by definition apparently, “taking over.”  The whole town used to think that way and it had one big effect: decay.

posted by: Da Hill on January 31, 2008  10:02pm

Just a couple of things,

1) And why do we have an economic development team that is no longer responsible for economic development?

2) Creating a board to manage the new edc, is just like the mayor managing Kelly Murphy

3) Why is Kelly involved in managing another developer when she obviously couldnt get it done…

4) This is a great move, but with the shoe strings attached it will never work…Why cant we get a break when it comes to fixing the city.

We take two steps forward and four steps back…hire the new lady to take Kelly’s Job and that will be that.  This is actually SAD…

posted by: missmouse on January 31, 2008  10:29pm

Bravo.  I like the way things are starting to flow together.  I think the community should get to pick a board member.  I nominate CedarHill.

posted by: WEBblog 1 on January 31, 2008  10:51pm

ESBE,
Confused I am not.
Do you really believe that by Yale putting up 1.6M for administrative salaries is a major contribution coup. The City Economic Development Department is funded @20,772,295M and can’t do the job.
I believe they are fronting a much larger boon at the end of the game.
According to the Mayor’s estimate, the infill development potential is 1.270.271.521B, with tax exempt assessed value at 937.701.914M (mostly Yale interest development.)
Remember, with any new tax exempt development the tax payer,(you I presume) picks up part of the new tax tab.
Yale on the other hand is super tax exempt. Does that not sound worth the 1.6M investment??

You do the math.

posted by: Gary Doyens on February 1, 2008  10:02am

One can argue about whether gentrification is good for New Haven and whether ignoring neighborhood re-vitalization is in the long term better for the city. The fact is, its been a stealth policy of the DeStefano Administration and it would have been better if this policy had just been stated, out in the open and executed. Then, as elections roll around, voters could make a determination as to whether they support such a policy and the executive advocating it. This failure has only exacerbated the conspiracies about Yale taking over, dominating etc.

But I think it’s a grave mistake to demonize Yale for ponying up the investment necessary to put together a quality team of business development and investment professionals who know how to sell New Haven as a good place to do business. Citizens and taxpayers have been poorly served by the city’s development efforts most recently, and by corruption and slush funds doled out and hidden from pubic view in the past. Given the development people running it and DeStefano’s lack of interest in improving it, there is absolutely no hope its performance will improve.

Still, the bones of New Haven are good and solid in part from Yale’s investment in its own campus and in the neighborhoods around it not to mention also paying millions of dollars in building permit fees that are excessive and will in the near future, quite possibly be declared so by the courts. But, the bones are also good in part from Joel Schiavone’s vision of a re-energized downtown years ago; in part because of private enterprise who without government help, the development office or other intrusions saw a good investment and capitalized on it.

So let’s not demonize the investment Yale made and let’s keep a watchful eye on who else serves on the board and what the construct is of the rest of the development team. We may yet find redemption, jobs and a future for this city in this core team.

posted by: write&wrong on February 1, 2008  8:39pm

Let uss count our blessings with this move…it could have been John Rowland!

posted by: Alex on February 1, 2008  11:19pm

Let’s see… How many Baltimore wonders have we had now?There was Sue Hart who came at a big salary to run Market New Haven and lasted a year and several others to do studies and of course there’s Alexander with his bullying tactics. Don’t we have enough talented people around here to do this job, which is not rocket science? DeStefano and Alexander were on the initial board of Market New Haven and it turned out to be a disasterous waste of energy and money under their twisted hands. This will be the same thing all over again! By the way how much is Whelley getting paid? Really we need to hire from within.

posted by: joshua jones on February 2, 2008  12:53am

What this mean. Mayor Destefno development lady Kelly Murphy so bad she dont do her job right. Yale half to take over.

O is this just Baltimor folks dont make it their so their buddy at Yale jus bring them here to live on big fat salry

Man New Haven screwed big time. So bad it time to go back to Mississippi

posted by: cedarhillresident on February 2, 2008  4:30pm

I have a question.. what parts of yale are tax exempt?? what part does the state cover what part does the feds cover with funds ect.?
I think that needs to all be added into figures. As I look around the city and even in my own little community I see amazing growth potential. Yes, we do need to keep a close eye on this. But we also can’t stand here saying no to everything. We need to as New Havener’s get involved in these projects and yes some we may disagree with but there is room for compromise to make this become work for us the tax payers. I realize the fear that the bill can be pasted down to us. But not if it is done right. The way the state laws are set up it is our problem. So the question is besides us, the middle class residential tax payer who else can we get to contribute to the cost of running this city? That is what I see this whole thing being about. Making more industy within our city to contibute to the pot so that we the little guy does not have to carry the whole burden on our own.

missmouse
In a heart beat I would do that, but I may not be the most qualified. If it was based on heart then yes I would be qualified. But with out a doubt this is something I will be watching.

posted by: Mycoolness on February 3, 2008  2:12pm

I come late to this discussion. Yale is funding this new EDC to the tune of $320K a year—which will probably cover staff salaries and travel budgets. M. Whelley must be coming to this new position with definite ideas as to what it will take to stem the outflow of business and to attract newcomers to New Haven since she has done this previously in Baltimore. 

So the question becomes—” What did M. Whelley accomplish in Baltimore during her tenure there and what support and how effective were the City and STate entities she had to deal with and through? Since Yale is behind this initiative one might conclude that they are comfortable with her thinking on this score and that they like what was accomplished in Baltimore. WE should look to Baltimore to get an insight as to what is in store.
I am not a development expert so can only speculate as to what attracts business to one locale versus another. Quality of life is an obvious factor in determining whether people move to the suburbs or come to the City. If we asked businesses that have left the City or those that considered coming, what factors drove their decision?

Perhaps Yale’s investments in the City will be used to leverage other business investment? In which case the degree to which this new EDC can operate independently of the City may be key to it’s success. The constitution of the rest of the Board may be quite important.

I have no supporting evidence, yet I suspect that the City’s attractiveness to business as well as to new residents is a function of it’s effectiveness in delivering City services. Again without supporting evidence, I would posit that the City’s educational system is also a major factor in determining whether people want to locate here and helps determine whether business expansion is supported by the educational skills of the labor force.
So I raise the question—how effective can this new EDC be if related steps are not taken to improve the cost effectiveness of City service delivery and if radical improvements are not made in the performance of the Education system of the City?

It is also logical to think that the attractiveness of the City for businesses and residents depends on how taxpayers feel about the value they receive for the tax dollars they are required to pay. If City taxes are high, are projected to increase significantly over the next 5 years and if improvements are not made to the cost effectiveness of City services, then any business thinking of coming here or expanding here must factor in these much higher taxes and uneven service delivery.

Does the new EDC have any capacity to influence these factors? Will it be allowed to?

Finally, I note that the new EDC will include the City’s top two officers who influence the City’s development—City Plans and Economic Development. The new EDC is an indirect reflection on the effectiveness of our economic development efforts. Would economic development have a better chance of being effective if these two departments—and perhaps others—were brought together under an effective leader?

The spectacle of the Building Department trying to become a profit center by charging permit fees unrelated to operating costs from the same investors that the City wishes to attract suggests these departments may be working at cross purposes.

My bottom line is that this new Corporation is necessary given the realities and effectiveness of the Administration’s efforts in this area. If Yale can leverage it’s presence, jobs, investments and brainpower to help the City meet these goals then we must all wish them well in this enterprise. 

I am encouraged by this development.

posted by: Gary Doyens on February 4, 2008  10:26am

Coolness: Points well taken - with special note to how do you sell the city with rapidly spiraling property taxes combined with the emerging view that city services are not cost effective and our educational system is in need of a transfusion, despite selective stories to the contrary?

Also noteworthy is the Building Department being a profit center for the city and possibly working at cross purposes with business and economic development. I don’t have the figures at my fingertips, but this department I believe collected somewhere north of $10 million in fees last year and was the one department which pulled the city’s fat out of the fire. Without those huge fees, big chunks of which were paid by YNHH and Yale University, the city would have ended up in the RED, in violation of the city charter. The department’s expense ratio is substantially less than that.

That disparity in fee structure vs. cost/benefit is at the heart of a lawsuit in the Town of Madison where developers and builders allege they’re being forced to pay excessive fees in order to help the town balance its budget which is in violation of state law. If true - this bodes very poorly for the City of New Haven which counts on those monstrously excessive fees to offset the expense of a city government that costs more than twice what its citizens can pay.

posted by: Sam Russell on February 11, 2008  9:34am

Good morning, all,

I was delighted on Saturday when a friend sent me a copy of this article and its attached comments, regarding announcement of the new Economic Development Corporation of New Haven.  I want to express thanks to Yale and the City of New Haven for coming together to form this new entity for the benefit of “our New Haven.”

I have lived in or near this city for many years.  This place has a remarkable history of citizens who keep showing creativity and commitment through their private initiatives to try meeting the needs of those who come to live and work here.  I think this new undertaking to advance our economic development could be a bold new step, if we can give it support from the start and help it achieve its goals.

I have read with interest the comments of others here.

A couple of early observations:

A few responses seem to reflect concerns about the potential of this new corporation before its full board of overseers has been selected and before Miss Whelley, its director, has become a citizen amongst us by March 31st.  I would encourage us to shift our focus from possible suspicions to sharing good ideas as to how this corporation could truly achieve meaningful economic development. The announcement of the program two weeks ago gives us a special window of time now to advance good ideas to those who will be in its charge.  Our exchanges at this site can provide an interesting forum for such suggestions.  What does economic development really mean to each of us?  Could we learn from one another here?

Also, I sense there are a few of us respondents who may have thoughts that Yale has some “hidden” agenda which would be inappropriate for our future.  Remember, Yale is one of six or more colleges/universities in our immediate neighborhood within Connecticut.  It is the oldest of them and it is in the heart of “our New Haven.”  It has now been here for over three hundred years - a very long time.  I believe it has a proud tradition of trying to be a responsible private institution within our midst.  Its mission to educate young men and women now from around the world has been and always will be closely linked with the aspirations of all its New Haven neighbors.

I recommend up front that anyone wanting to learn more about these assertions I make should obtain the brand new DVD just produced by the Friends of Grove Street Cemetery.  It does a remarkable job in 30 minutes to educate viewers about our long history in New Haven of building a special place for us to call home.  Yale has clearly always been an important force in the well-being of our community through the lives of its graduates, faculty and other employees.  The DVD is available for $15.00, including shipping & handling, and can be ordered through the Friends at P. O. Box 9238, New Haven, CT 06533.

I look forward to keeping in touch in days ahead.

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