Paul Bass photo
Erik Johnson: Show us you're doing your best.
Developers looking to build in Hamden with financial breaks from local government may now have to show proof of a plan to help the town back in return — by hiring and contracting locally and equitably.
The Economic Development Committee of Hamden’s Legislative Council voted Monday night to extend and amend an ordinance requiring all developers for whom the town grants abatements to diversify their workforce and product. The full council will vote to reject, approve, or revise that ordinance later this month.
Monday’s vote involved two economic incentive programs. One program allows a freeze and phase in of taxes for those making significant improvements to their property. Another waives building permit fees. Both were set to expire at the end of 2021.
The committee voted in favor of extending those policies an additional three years and, following the suggestion of Acting Town Planner and Economic Development Director Erik Johnson, added additional guidelines for applicants.
“The mayor’s office and Legislative Council are aligned in their belief that development opportunities in Hamden should be as inclusive as possible and that the town should always advocate for businesses and residents to participate in projects where the town is offering some benefit to the developer, business or project sponsor,” Johnson stated to the Independent.
Hamden's Mather Street apartments, one focus of the new policy.
The updated policy would require developers receiving tax forgiveness through those two programs — not general assistance in other forms such as land sales or ground leases — to demonstrate “best efforts” to achieve the following standards:
- 10 percent resident workforce hours for on-site construction labor.
- 17 percent minority male workforce hours for construction labor.
- 6.9 percent female workforce hours for on-site construction labor.
- 10 percent Hamden business enterprises for construction services.
- 6.25 percent minority or woman-owned business enterprises for construction services.
- 20 percent affordable housing units for housing construction.
Those numbers mirror workforce requirements held by other cities in Connecticut, including New Haven and Hartford, which adopted many of the above percentages in response to a disparity study detailing the dominance of white men in the field of construction and development across the state.
Hamden Legislative Council President Dominique Baez has previously advocated for and succeeded in getting developers, including those leading the apartment complex project on Mather Street, to commit to giving preferences to Hamden residents for employment and local firms for contracting.
Johnson said this written amendment officially “establishes a best effort standard that will be used to make sure that the town’s businesses and residents are always included in development discussions and so that the town treats all opportunities the same way. It is a way for the town to be both inclusive and transparent in its decision making process.”
He added that he is not “sure how many developers will take advantage” of the continued tax forgiveness opportunities. “But we hope that making developers and investors aware of the program’s existence will make Hamden an attractive place to invest and work on projects.”
All members of the Legislative Council voted in favor of the new guidelines with one exception. Councilwoman Marjorie Bonadies abstained, citing concern that “this might have a chilling effect on economic development.”
“Hamden’s difficult to do business in. We’ve heard that over and over. I just worry this is gonna be another hoop to jump through and may discourage developers from coming to Hamden,” Bonadies argued.
Her fellow Council members disagreed.
“I think it’s a good thing we are trying to put some money into our frontline communities, to take more pride in our community, and stimulate our economy,” District 5 Rep. Justin Farmer said. “If developers don’t want to do business with all of Hamden, then I’m not interested… Part of having good business is having businesses buy into the community.”
District 8 Rep. Ted Stevens — who previously served on the town’s Planning and Zoning Commission — said that he the outlined numbers are not “particularly high.”
“The population’s 50 percent women, so this is not even representative of our population,” he said. “I don’t think that poses barriers to any developer.”
Johnson reiterated that meeting every numerical expectation written in the ordinance will not act as rigid requirements for developers. “The town’s established a best efforts model,” he said. “There’s some reporting and documentation we’re gonna ask for.” That could include information about how a developer is advertising employment opportunities or other strategies they are engaging in to bring more residents, people of color, and women into their project.
“After that, we’re basing it on the integrity of the applicant to try to do the best thing for the town,” Johnson said.
“Do these policies adversely impact economic development?” he asked, following up on Bonadies’ skepticism. “That depends on where you sit.”
“Almost everything in New Haven is done as an assisted project — it became the rules of doing business in town.” In Hartford, he added, “if you’re gonna get significant public benefit,” it is a requirement to bring in “individuals of color who had not previously been able to participate in the development.” Johnson has held positions dealing with economic development in both Hartford and New Haven.
The Hamden ordinance simply “says that if you’re gonna take our benefit … this what we’re expecting you to do as a good corporate and community partner. And we’re not mandating it. We’re asking you to make your best efforts the sake of the entire community,” Johnson said.
“If people wanna move here to do business and they want to have public assistance, it’s not something that people are unfamiliar with.”