Gov. Rell Supports $10M Loan Pool for SE Connecticut

HARTFORD, CT-Gov. M. Jodi Rell has issued her support for a proposed $10-million loan pool and other economic development initiatives geared at diversifying the Southeastern Connecticut economy. Rell expressed her support for the measures in response to an interim report issued recently by the Governor's Commission for the Diversification of Southeastern Connecticut, which she created following the successful effort to keep open the Navy Submarine Base in Groton-New London. Initially, the federal Base Realignment and Closing Commission had placed the base on a Defense Department list of bases around the country slated for closing.

"During the campaign to save the base, we documented that more than 30,000 jobs are directly or indirectly linked to the base's fortunes," Rell says. "That fact led us to the realization that a commission was needed to examine ways of diversifying the region's economy."

Tops on the commission's preliminary recommendations is for the allocation of $10 million in new bonding in this year's state budget to establish a low-interest loan pool pilot program to be administered by the state Department of Economic and Community Development. Loans would underwrite programs and municipal infrastructure projects that would be expected to provide "a significant economic return."

Another commission recommendation is that seed funding be established to support the hiring of a full-time professional employee to implement an affordable housing program for the region. Funding would be $75,000 in the first year, $50,000 in the second year and $25,000 in the third year, state officials say.

The commission also calls for the allocation of up to $40,000, plus technical assistance, for a website to promote and market the region to new and existing businesses and entrepreneurs. In addition, the commission recommends a request for proposals be issued for a one-year pilot project at a cost of no more than $120,000 so the state could hire a consultant to assist in identifying, securing and advocating opportunities in military and homeland security matters.

The commission also proposed the state direct the DECD to begin planning and implementation for the creation of a new industry cluster to focus on the defense and homeland security industry. The governor will seek to reunite "Team Connecticut" to conduct a conference that would examine the lessons learned by the near closure of the Groton-New London submarine base last summer.