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Colt Gateway Development Project – Economic Impact Analysis

Description
The city of Hartford was interested in better understanding the economic contributions of the Colt Gateway Development Project. This project includes the renovations of the manufacturing buildings that have already been completed, as well as those planned, and value associated with the lease activity. The impacts were estimated for the state’s economy and also the city of Hartford’s economy.

Issues
The Colt Gateway project involves the redevelopment of the Hartford Colt manufacturing properties and offices within a 17-acre portion of the 260 acre Coltsville Historic District. The development activities examined were started in 2003 and are expected to be completed in 2016. The timeframe for the renovation activity for each facility was kept distinct during the modeling phase, but aggregates were needed to roll together approximately 60 distinct impacts into summaries that examined the overall activity to date and expected activity in the future. Included in these measures were also the annual operational activities of leasing and tax impacts.

Deliverables
CERC developed an economic impact analysis that provided the client with a focused executive summary that clearly specified the value of the historical renovations done to date and the potential impacts moving forward with and without additional investments in the properties. In addition to this summary CERC also developed and provided the client with a full technical report that specified the relative contributions of the renovations and ongoing activities including property taxes associated with each facility.

Outcomes
The assessment of economic impact focused on the direct impact of the expenditures on construction and the ongoing activities of the facilities, both completed and planned, as well as the secondary impacts that occur as spending by those entities, their employees and suppliers ripple through the economy.

This development project has already created significant benefits for the state’s economy. The impact on the state of Connecticut due to investments from 2003 to the end of 2011 was estimated to be slightly more than $177 million as measured in sales and slightly more than 1,250 annual jobs. This value included $37.4 million in economic activity due to the new capital investments of nearly $140 million. In addition, if the planned investments between 2012 and 2016 occur, the development can be expected to further stimulate the state’s economy with an additional $151 million in sales and slightly more than 1,000 jobs.