CEDS - PART II: ANALYSIS

<body topmargin=0 leftmargin=0 marginheight=0 marginwidth=0> <table cellpadding=0 cellspacing=0 border=0><tr> <td valign="top" rowspan="2" width=210 BGCOLOR="#99CC99" TEXT="#080000" bgproperties="fixed" background="03e8dfc3.jpg"> <div> <A HREF="id125.htm" TARGET="_top" TITLE="Board of Directors"><B>Board of Directors</B></A></div> <div> <A HREF="id2.htm" TARGET="_top" TITLE="Meetings"><B>Meetings</B></A></div> <div> <A HREF="id122.htm" TARGET="_top" TITLE="CEDS"><B>CEDS</B></A></div> <div> <A HREF="id66.htm" TARGET="_top" TITLE="Scenario Planning"><B>Scenario Planning </B></A></div> <div> <A HREF="id80.htm" TARGET="_top" TITLE="Task Team"><B>Task Team</B></A></div> <div> <A HREF="id117.htm" TARGET="_top" TITLE="Regional, State Federal Links Docs"><B>Regional Plans </B></A></div> <div> <A HREF="id65.htm" TARGET="_top" TITLE="Regional Links NW CT"><B>Links</B></A></div> <div> <A HREF="id39.htm" TARGET="_top" TITLE="ByLaws"><B>By-Laws</B></A></div> <div> <A HREF="id6.htm" TARGET="_top" TITLE="Contact"><B>Contact</B></A></div> <bR> <div> <B>CEDS Sponsors:</B></div> <bR> <div> <A HREF="id125.htm" TARGET="_top" TITLE="Board of Directors"><I><U>Platinum Sponsor</U></I></A></div> <div> <B>Borghesi Building & Engineering</B></div> <bR> <div> <I><U>Silver Sponsors</U></I></div> <div> <B>Bicron Electronics</B></div> <div> <B>CEDAS</B></div> <div> <I>(CT Econ. 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Assoc.)</I></div> <bR> <div> <I><U>Bronze Sponsors</U></I></div> <div> <B>Parker Productions</B></div> <div> <B>Winvian</B></div> </td> <td valign="top" colspan=2 height=82 style=" border-bottom: 1px solid #999980;" BGCOLOR="#CCCC99" TEXT="#080000" bgproperties="fixed" background="03f8dfe1esnpes.jpg"> <div> <FONT SIZE="5" COLOR="#006600" FACE="Bangle" ><B>Northwest Connecticut Economic Development Corporation</B></FONT><FONT SIZE="2" COLOR="#000000" FACE="Bangle" ><B> </B></FONT><B>    </B><B>|</B><B>  </B><FONT SIZE="2" COLOR="#000000" FACE="Bangle" ><B> </B></FONT><FONT SIZE="2" COLOR="#006600" FACE="Bangle" ><B> </B><B> </B><A HREF="index.htm" TARGET="_top" TITLE="Northwest Connecticut Economic Developme"><B>home</B></A></FONT></div> <div> <A HREF="id4.htm" TARGET="_top" TITLE="CEDS May 2004">CEDS - May 2004</A>   |   <A HREF="id16.htm" TARGET="_top" TITLE="CEDS INTRODUCTION">CEDS - INTRODUCTION</A>   |   <A HREF="id17.htm" TARGET="_top" TITLE="CEDS PART I: COMMUNITY ORGANIZATION AND">CEDS - PART I: COMMUNITY ORGANIZATION AND MANAGEMENT</A>   |   <B>CEDS - PART II: ANALYSIS</B>   |   <A HREF="id19.htm" TARGET="_top" TITLE="CEDS PART III: VISION">CEDS - PART III: VISION</A>   |   <A HREF="id20.htm" TARGET="_top" TITLE="CEDS PART IV: THE ACTION PLAN ">CEDS - PART IV: THE ACTION PLAN </A>   |   <A HREF="id21.htm" TARGET="_top" TITLE="CEDS PART V: BENCHMARKING AND EVALUATIO">CEDS - PART V: BENCHMARKING AND EVALUATION</A></div> <div> </div> </td> </tr><tr> <td valign="top" height=398 width="100%" colspan=2 BGCOLOR="#CCCC99" TEXT="#080000" bgproperties="fixed" background="03f8dfc3.jpg"> <div> <I>CEDS - PART II: ANALYSIS</I></div> <DIV ALIGN="LEFT"></DIV> <div> <B> <TABLE BORDER="2" CELLPADDING="2" CELLSPACING="1" WIDTH="754" BORDERCOLORLIGHT="#C0C0C0" BORDERCOLORDARK="#808080" FRAME="BOX" RULES="ALL" HSPACE="0" VSPACE="0" BGCOLOR=#FFFFFF > <tR> <tD VALIGN=TOP HEIGHT= 13667 WIDTH="742"><div> <B><U>PART II: ANALYSIS - “WHERE ARE WE?”</U></B></div> <bR> <div> <B>A.  </B><B><U>Introduction</U></B></div> <div> The Litchfield Hills Region was one of the last areas of Connecticut to be settled due to its difficult topography. These topographic features have proved to be a blessing in several ways. The area's deep river valleys became a source of water power to energize the many mills which located throughout the Region during the initial period of the industrial revolution and the area's rich natural resources contributed to the growth of the Region's industrial age economy. When the Region lost some of its competitive economic advantages due the introduction of the steam engine and railroads, the area's topographic features were discovered by those urban dwellers seeking a respite in a physically idyllic environment. This resulted in the creation of a core tourist industry and arts colony beginning in the mid 1800's and extending to present day.</div> <div> Manufacturing remains a very important component of the economy of the Litchfield Hills, providing 23% of the Region's jobs. The Region's manufacturing jobs continue to be threatened by other areas of the country and overseas competition or are affected as a result of mergers and acquisitions and increased productivity. While the service sector of the Region's economy has added a significant number of jobs to the area's economy, it has, with a few notable exceptions, not replaced lost manufacturing jobs with secure, high-paying alternatives.</div> <div> The Litchfield Hills Region has been home to a variety of men and women who have made a positive mark on American history, especially during the periods of the American Revolution and the Civil War. Prominent Americans who have lived within the Region include Ethan Allen, Harriet Beecher Stowe and John Brown. The area was also the home to the first law school in America, whose graduates included such prominent early Americans as John C. Calhoun, Aaron Burr, Horace Mann, Oliver Wolcott, Jr. and Noah Webster.</div> <div> Over fifty percent of the land area of the Litchfield Hills Region is woodland and open space and many of its traditional village centers have retained their colonial characteristics and charm. The Litchfield Hills Region continues to increase its popularity as one of the premier visitor destinations in New England. The area's natural and man made beauty is complimented with a plentiful array of recreational and leisure activities. The Litchfield Hills is viewed as one of Connecticut's premier high quality of life areas, so much so that the area's resident population and labor force has grown far beyond the employment capacity of the Region's existing economy. Nearly fifty percent of the labor force of Litchfield County commutes outside the County for employment. Becoming a bedroom region has the effect of placing an inordinate tax burden on local residential property taxpayers to provide an acceptable level of public services.</div> <div> The tax structure of Connecticut is such that local property taxes are relied upon to support as much as 85% of the cost of local government services, including education. Public education services account for as much as 74% of local government costs in some municipalities in the Litchfield Hills Region. The area's chief elected officials recognize the importance of growing the Region's tax base through an expansion and diversification of the area's economy.</div> <div> These conditions influence the regulation of land use, resulting in an ongoing effort to balance the conservation of the area's natural resources with the need to support a vibrant economy. In the past, economic development has not been a high priority of many of the communities of the Litchfield Hills Region. However, increasing tax burdens shouldered by local taxpayers has spurred area officials to consider ways to grow the area's economy in a manner that will protect the Region's natural beauty and its high quality of life. This was a major factor leading to the preparation of this CEDS.</div> <div> It is generally agreed by the Regional CEDS Committee (LHEDP) that the Region needs to build upon its many positives (e.g., the high quality of life, proximity to major markets, diversified regional economy, a well educated surplus labor force...) by improving the “business climate” of the Region, matching worker training and skills with business needs, improving the Region's physical infrastructure, creating an institutional infrastructure to provide the services required to grow the Region's economy, and creating a marketable Regional identity.</div> <div> The creation of this CEDS addresses the challenges facing the Region with a comprehensive program based upon realistic goals and strategies backed up by specific implementation actions and projects designed to grow the area economy in a sustainable manner. The development of the CEDS has involved many interested parties in a process involving local communities, institutions of higher learning, and the public and private sectors of the area's economy, all contributing ideas and proposals that range from institutional improvements, to “bricks and mortar” projects. Their participation enabled the creation of a CEDS that balances a variety of interests to improve the Region's economy while protecting the area's quality of life and natural resource attributes.</div> <div> <B>B.  </B><B><U>General Description of Area Land Uses and Infrastructure Services</U></B></div> <div> The Litchfield Hills CEDS study area covers 371 square miles. The 2002 population of the area was estimated at 75,268 persons, with a population density of 203 persons per square mile. This compares to a population density of 682 persons per square mile for the State of Connecticut. The density of development varies widely within the Region, from a high of 884 persons per square mile in Torrington, to a low of 34 people per square mile in the Town of Norfolk.</div> <div> The CEDS Region is located entirely within Litchfield County and includes 10 of the County's 26 municipalities and 41% of the County's population. There is no county government system in Connecticut and the entire State consists of self governing municipalities.</div> <div> <B>C.  </B><B><U>Land Use </U></B></div> <div> Current land uses and patterns of development within the Region reflect the past 300 years of human settlement. Each of the 10 municipalities included in the Region retains some remnants of the area's colonial settlement patterns. Some continue to maintain their historical colonial roots with village centers focused on town greens and nearby churches, shops, schools, town halls and housing. The Region's two cities, Torrington and Winsted, contain well developed downtowns that are the current focus of considerable revitalization activities.</div> <bR> <div> The distribution of land use in the Litchfield Hills is shown graphically in <U>Figure 1, Generalized Land Uses</U>. It is not surprising that some areas of the Litchfield Hills Region, with an industrial history dating back to the 1700's, have vacant or underutilized buildings and land. Some of these sites often lack public water service, or sewer service or good access to major highways. Some sites have environmental conditions that developers and lending institutions would rather avoid in today's land use regulatory climate. In other instances, the construction or configuration of an existing vacant building may be obsolete for modern business uses. An important challenge to the Region is to find ways to revitalize these former facilities into productive business uses, lessening the demand for business development in presently undeveloped “greenfields.” Brownfield remediation is a key to a sustainable, environmentally friendly growth of the economy of the Litchfield Hills Region.</div> <DIV ALIGN="LEFT"></DIV> <div> <IMG SRC="04564180.jpg" border=0 width="612" height="792" ALIGN="BOTTOM" HSPACE="0" VSPACE="0"></div> <div> <B><U>Infrastructure - Public Water and Sewer Service</U></B><U>- Figure 2, (Sewer and Water Service Areas) </U>shows the extent of public and regulated water and sewer service within the Litchfield Hills Region. As noted from a review of this figure, most of the areas within the Region served by public sewers are closely related to public water service areas. Eight of the 10 municipalities within the CEDS Area are served by public and/or regulated water and sewer service, supplied by public entities and private companies. Several communities have current plans to expand and or upgrade public sewer service. These plans have been incorporated into the CEDS.</div> <DIV ALIGN="LEFT"></DIV> <div> <IMG SRC="04664180.jpg" border=0 width="612" height="792" ALIGN="BOTTOM" HSPACE="0" VSPACE="0"></div> <div> <B><U>Infrastructure - Transportation</U></B>  The Litchfield Hills Region is situated within the Northeast United States, one of the richest market areas in the world. The economy of the Litchfield Hills Region has always depended upon transportation and communication systems to stay connected to the markets served and transportation connectivity remains an important consideration today.</div> <div> <B>Highways</B>- The Region is served by one north-south expressway, Route 8 and by a network of east-west arterials that include US 202, US 44, and Route 4. In addition to these major highways, the Region has an extensive system of supporting State and local roadways totaling nearly 1,000 miles. While the area does have congestion points, intra-regional mobility is generally free flowing when compared to those regions served by I-95, I-84 and I91. The Route 8 Expressway provides excellent connectivity to I-84 and I-95 to the south, which are the primary east- west expressways serving Connecticut. These expressways provide connectivity to the New York and Boston metropolitan areas and to their international transportation resources. Connectivity between the Litchfield Hills Region and western Massachusetts to the north is limited to two-lane state highways.</div> <div> It is recommended that the Litchfield Hills Region continue to work with its counterparts to the south and support those regions of Connecticut that host portions of I-84 and I-95 in the development of solutions to the severe traffic congestion problems that have afflicted Connecticut's major traffic arteries. Maintaining highway efficiency in Connecticut and connectivity to the world outside the Region is essential to the manufacturing and tourism sectors of the Region's economy, as well as to area residents who must commute to job sites beyond the Region.</div> <div> <B>Railroads</B>- The Litchfield Hills Region is served by limited railroad resources. A single track rail line provides freight service from the south, ending in Torrington. This line has rail sidings in Torrington and one in East Litchfield. This line connects with mainline freight services in Waterbury, Derby (Maybrook Line) and Bridgeport to the south. The Housatonic Railroad Company provides rail freight service to the Town of North Canaan, with connections to east-west rail lines in Massachusetts to the north and the Maybrook Line to the south.</div> <div> Efficient intra-regional transportation services with connectivity to surrounding markets has been and will continue to be essential to the economic health of the Region.</div> <bR> <div> <B>C.  </B><B><U>Natural Resources</U></B></div> <div> The Litchfield Hills represents one of Connecticut's most important and most attractive concentrations of natural resources, providing food, recreational activities and thousands of jobs. The region's important natural resources include; aquifers, wetlands, floodplains, woodlands, exemplary natural communities and high biotic diversity, rare and endangered species, important freshwater fisheries, surface water supply resources, farmland, mineral resources, and numerous scenic sites and public recreational areas</div> <bR> <div> <B>D.  </B><B><U>Cultural, Historical and Recreational Resources </U></B></div> <div> The Litchfield Hills Region is one of Connecticut's most important tourism areas, primarily because of its attractive natural scenery and colonial heritage that has been preserved in many of its village centers and rural hamlets.  The Litchfield Hills Region generates approximately $334,000,000 annually in travel, tourism, and recreation related revenues.</div> <bR> <div> Cultural, historical, scenic and recreational resources in the area include: 33 museums; 8 nature centers containing over 6,000 acres; 10 performing arts centers; 20 State parks, forests and campgrounds; 5 vineyards; the Upper Housatonic Valley National Heritage Area; the Farmington River National Wild and Scenic River Area; numerous watercourses and waterbodies, including the State's largest natural lake; greenways and ski areas.</div> <div> <B>E.  </B><B><U>Environmental Issues and Sustainable Development</U></B></div> <div> Litchfield Hills' participation in the Industrial Revolution paid little attention to the problems of air and water pollution. Some of the area's natural resources, its forests for example, were largely depleted to supply the energy and raw material demands of industrialization. Past pollution of the Region's land and water resources is today's brownfields legacy and as a result, sustainable development has become a major planning focus. Sustainable development plans focus on the elimination of environmental pollution while creating economic opportunities and enhancing the area's quality of life.</div> <div> In the future, the assessment of success will require the creation of regional benchmarks that can be used to evaluate the area's economic, environmental and social sustainability. These benchmarks might include the distribution of jobs and housing resources within the Region, the percentage of wages earned and spent within the Region and the percentage of development occurring in non-greenfield areas.</div> <bR> <div> The Litchfield Hills Region has adopted a Growth Policies Map (see <U>Figure 3 Regional Growth Policies Map</U>) that focuses future economic development activity into existing urban and village centers, developed neighborhoods and adjacent primary growth areas. This policy is designed to maximize the utilization of the Region's existing transportation and utility infrastructure systems and diminish the demand for greenfield development. While the Litchfield Hills Region has no State designated Enterprise Zones to foster economic growth and revitalization, municipal implementation of the Regional Growth Policies Map will result in development patterns that reinforce the Region's historical infrastructure investments in its downtowns, village centers and business parks. This strategy also supports the preservation of the Region's natural, cultural and historic resources.</div> <bR> <DIV ALIGN="LEFT"></DIV> <div> <IMG SRC="047551b0.jpg" border=0 width="597" height="795" ALIGN="BOTTOM" HSPACE="0" VSPACE="0"></div> <div> Many of the Region's prime industrial sites (buildable land, appropriately zoned for business uses, with sewer and water service and good access) have already been developed or are actively being prepared for development and marketing. The costs associated with developing greenfield sites by improving transportation access and extending sewer and water infrastructure in most cases is not a realistic option for area municipalities. The presence of vacant or underutilized industrial land and buildings can be a blighting influence on the Region's landscape and may contribute to the decline of adjacent neighborhoods unless revitalized for a viable economic use. To this end, the CEDS promotes sustainability by recommending an aggressive program to revitalize the Region's brownfield sites.</div> <div> <B>F.  </B><B><U>Litchfield Hills's Economic Profile</U></B></div> <div> The following is a summary of the economic research conducted for the Litchfield Hills CEDS.  <U>Appendix C, Economic Audit of the Litchfield Hills Region</U>, contains a complete description of the information used to assess the Region's current economic conditions and historical trends and to understand the Region's role within the greater Connecticut economy. The Litchfield Hills CEDS Area contains ten municipalities located in two Connecticut Labor Market Areas (LMA) as described in <U>Table 2, Litchfield Hills CEDS Towns and LMA's</U>.</div> <bR> <DIV ALIGN="LEFT"></DIV> <div> <U><IMG SRC="04a90360.jpg" border=0 width="400" height="310" ALIGN="BOTTOM" HSPACE="0" VSPACE="0"></U></div> <div> <B><U>Population</U></B> - Population changes in the Litchfield Hills Area between 1990 and 2000 are described in <U>Table 3, Population Changes</U>. Overall, the Region's population increased by 2.0%, while three of the ten municipalities within the Region experienced population decreases. Torrington is clearly the dominate population center of the Region, with 47% of the area's residents. As shown in <U>Table 4, the population of the Litchfield Hills CEDS Area</U> continues to age, with a higher percentage of area residents over the age of 50 than the state-wide average. The Connecticut Office of Policy and Management projects the population of the Litchfield Hills Region to continue to age through the year 2020.</div> <DIV ALIGN="LEFT"></DIV> <div> <IMG SRC="04bf63d0.jpg" border=0 width="502" height="573" ALIGN="BOTTOM" HSPACE="0" VSPACE="0"></div> <div> <B><U>Labor Force</U></B> - The labor force in the Litchfield Hills CEDS Area in 2003 was 40,306, with an unemployment rate of 4.1%.  <U>Table 5</U> provides a town by town description of the <U>area's labor force</U> resources and unemployment rates. The Litchfield CEDS area has a significant labor surplus when compared to area job opportunities. The area's labor force of 40,306 exceeds the areas employment base of 28,713 by 40.4%. As a result of the imbalance between available labor and available jobs, 45% of Litchfield County's labor force commuted to employment sites outside of the County in 2000.</div> <DIV ALIGN="LEFT"></DIV> <div> <IMG SRC="04cb52d0.jpg" border=0 width="437" height="301" ALIGN="BOTTOM" HSPACE="0" VSPACE="0"></div> <div> <B><U>Employment</U></B><B> </B>- <U>Table 6 describes employment, by economic sector and by municipality</U>, for the Litchfield Hills CEDS area. The manufacturing sector which, in addition to providing employment opportunities, also generates demands for supporting goods, services and trade activities, is a very important component of the area's economy. Manufacturing accounted for 6,670 jobs in 2001, 23% of the Region's total non-farm jobs. Manufacturing in the 10 town CEDS's Region is heavily concentrated in the City of Torrington, where 51% of the area's manufacturing jobs were located.</div> <DIV ALIGN="LEFT"></DIV> <div> <IMG SRC="04db7250.jpg" border=0 width="439" height="293" ALIGN="BOTTOM" HSPACE="0" VSPACE="0"></div> <div> The Region includes one large (by Connecticut standards) manufacturer, the Timken Company, and over 200 medium and small sized manufacturing businesses. The average size of area manufacturing businesses, 28 employees, is nearly four times larger than the average of all businesses located within the Region.</div> <div> The service sector, following national trends, is the largest business sector in the Region, accounting for 30% of the area's jobs. This sector is lead by health and business services. Fifty-five percent of the area's service sector jobs are located in Torrington. The trade sector, led by retail sales, accounts for 22.5% of the area's jobs. Sixty percent of the Region's trade sector jobs are located in the City of Torrington.</div> <bR> <div> <U>Employment levels within the Litchfield Hills CEDS area have declined in recent years</U> and have lagged behind the State of Connecticut, <U>as described in Table 7</U>, and during the period 1991 to 2001 municipalities within the CEDS area experienced <U>significant fluctuations in employment levels, as described in Table 8</U> on the following page.</div> <DIV ALIGN="LEFT"></DIV> <div> <IMG SRC="04ec0560.jpg" border=0 width="448" height="342" ALIGN="BOTTOM" HSPACE="0" VSPACE="0">     <IMG SRC="04fbe440.jpg" border=0 width="446" height="324" ALIGN="BOTTOM" HSPACE="0" VSPACE="0"></div> <div> These changes reflect business expansions, closings, and new business development. In some communities, such as the Town of Morris, the dimension of the changes in employment levels resulting from a plant closing is magnified by the relative small base of employment that exists within the Region's smaller communities.</div> <bR> <div> The City of Torrington, with 56.5% of the Region's total non-farm jobs and 47% of the Region's residents, is clearly the economic heart of the Litchfield Hills CEDS Region. By comparison, the next largest employment concentration in the Region is located in Winchester at 13.7% of jobs, followed by Litchfield at 12.9% of jobs.</div> <bR> <div> <B><U>Personal Income</U></B> - As shown in <U>Table 9, Per capita income in Litchfield Hills</U> varies significantly by town, from a high of $39,606 in Goshen to a low of $26,636 in North Canaan. Per capita income is lower than the State average in six of the Region's ten CEDS communities.</div> <DIV ALIGN="LEFT"></DIV> <div> <IMG SRC="05095f60.jpg" border=0 width="405" height="246" ALIGN="BOTTOM" HSPACE="0" VSPACE="0"></div> <div> An examination of the wages paid to employees within the Litchfield Hills CEDS Area finds that average wages are significantly lower, from 25% to 44%, than the State average wage, as described in <U>Table 10- Average Wage by Town- 2000</U>. Per capita income is significantly higher than average wages, when compared to State comparables, which is a reflection of 45% of Litchfield County's employed labor force commuting outside of the County, where there is a greater abundance of higher paying jobs opportunities than are available within the Region. This means that these workers are importing wealth and purchasing power back into the Region.</div> <DIV ALIGN="LEFT"></DIV> <div> <IMG SRC="052950e0.jpg" border=0 width="405" height="270" ALIGN="BOTTOM" HSPACE="0" VSPACE="0"></div> <div> <B>G.  </B><B><U>Planning and Economic Development Activities Affecting the CEDS Region </U></B></div> <div> <U>Municipal </U></div> <div> Planning and economic development activities within the Litchfield Hills Region take place at the municipal and regional levels. Each municipality in the Region has the opportunity to create an economic development commission, redevelopment agency and municipal economic development corporation to plan for and facilitate economic growth. Several communities including Litchfield, Morris, New Hartford, North Canaan, Torrington and Winchester have developed one or more of these municipal mechanisms. The City of Torrington and the Town of Winchester, which includes the City of Winsted, have professional staff (planner and/or economic development coordinator) who plan and manage actions affecting economic development. Torrington and Winchester also have active redevelopment agencies who are directly involved in facilitating planned economic development initiatives.</div> <div> Under State law, each municipality is required to prepare, at least once every ten years, a <U>Plan of Conservation and Development </U>(POCD) to guide actions affecting the conservation, growth and development of the community. POCD's address a diversity of issues including the economy of a community and infrastructure issues affecting economic development. An important element of a POCD is the future land use plan that identifies areas to be conserved and developed. Areas of communities are identified as to the types of land uses that are permissible for development, including the elements of a community's economy. To help implement future land use plans, municipalities prepare zoning maps and regulations that regulate the development of land within the community. These regulations identify the types of uses permitted within a community and the zoning map identifies where those uses may be developed. It is during this critical planning and ongoing regulatory process that a communities future form and content are defined.</div> <div> <U>Regional </U></div> <div> The Litchfield Hills Council of Elected Officials (LHCEO), which is composed of the area's chief elected officials, acts as a coordinating agency for a multitude of regional activities affecting the area's municipalities. The Council reviews each municipal POCD as it is drafted and prepares a Regional Growth Guide Plan that takes a regional perspective to planning issues that may have an inter-municipal impact. The Growth Guide Map describes the portions of the Region that are recommended for economic development uses.</div> <div> LHCEO has organized and managed a <U>Regional Downtown Renovation Program, </U>a <U>Regional  Facade Improvement Program </U>and has chosen to pursue the development of this Regional Comprehensive Economic Development Strategy to improve the economic well-being of the Region's residents and to strengthen the local tax base of the Region's municipalities.</div> <div> During the process of establishing the Regional CEDS Committee, the Northwest Connecticut Chamber of Commerce, which has co-partnered with the LHCEO during the CEDS process, sponsored the creation of the Northwest Connecticut Economic Development Corporation, which will function as a primary implementation vehicle for many of the recommendations of the CEDS.</div> <bR> <div> <B>State</B></div> <div> <U>State Plan </U>- The State Office of Planning and Management prepares the Connecticut Conservation and Development Policies Plan for use as a guide for State investments in infrastructure and programs affecting economic development in Connecticut's 169 municipalities. Although the State Plan has been established for several decades, it has been somewhat ineffective and has not resulted in a comprehensive, coordinated program of planning and public policy decisions.</div> <bR> <div> <U>State Department of Economic and Community Development (DECD)</U> - This State agency has evolved over the past three decades from the Connecticut Department of Commerce, to the Connecticut Department of Economic Development, to its current form. DECD and its sister agencies; the Connecticut Development Authority, Connecticut Innovations, Inc. Connecticut Venture Group and the Connecticut Economic Development Fund offer a wide variety of programs to support and stimulate economic development and redevelopment activities at the State and local levels.</div> <bR> <div> <U>Ct. Department of Transportation (Ct.DOT)</U> - The Ct.DOT manages the US DOT's Transportation Enhancement Program, which provides matching funding for special infrastructure improvements that are transportation related. The Towns of Norfolk and Winchester have both utilized this program to great advantage to provide for a major upgrade of their town center streetscape.</div> <bR> <div> <U>Small Town Economic Assistance Program</U> - This program is managed by the Connecticut Office of Policy and Management and provides flexible grants for economic development activities. This program is not currently funded.</div> <bR> <div> <U>Connecticut Main Street Program</U> - The Town of Winchester is a participant in this national program that is providing planning guidance for the revitalization of the Region's second largest downtown.</div> <bR> <div> <B>H.  Summary and Conclusions</B></div> <bR> <div> <B><U>State of the Litchfield Hills Economy</U></B></div> <div> <U>Strengths and Weaknesses- </U>In looking to the future it is important to examine the Region's strengths to build on and to identify the problems that need to be addressed if initiatives to expand the area's economy are to be successful. The following is a description of these strengths and weaknesses:</div> <bR> <div> <U>Strengths: </U>The area has great physical beauty resulting from a combination of the Region's attractive natural environment and the beautiful colonial/post revolutionary war villages and hamlets developed by the area's early settlers. The Region's location is both an asset and a liability. While the Region is located in the center of the wealthy and diverse Northeastern American market area, it is not easy to get to. This has not been a problem from the perspective of the tourism industry but can be a detriment for the manufacturing sector. The Region has a very high quality of life, characterized by well kept, well run and attractive communities, surrounded by a beautiful natural environment. While the Region's economy has not experienced significant growth, it can be characterized as “balanced” without reliance on any one single industry sector. The Region has two strong economic clusters described below that can serve as a basis for future economic expansion. The Region possesses an educated and trained labor force surplus. While the Region possesses land that is suitable for economic development with access and utilities, this inventory is limited, reflecting stagnant market demands. The Region has a successful track record of revitalizing its older Downtowns, a reflection of innovative programs supported at the regional and local levels.</div> <bR> <div> <U>Liabilities- </U>The Region is not without its problems. The Region's location makes it more difficult for area manufacturers to stay connected to an increasingly global economy. There is a perception that the Region has a relatively high cost of doing business, a condition shared by other regions of Connecticut and attributable to the high costs for labor, raw materials, energy, transportation and taxation. The Region has several highly visible former manufacturing plants and brownfield site that have a blighting influence on the area's economy. The newer suburban development patterns that exist throughout the Region increase congestion on area roads, diminish the “green” characteristics of the Region and work against the revitalization of the area's downtowns and village centers. While the area has a labor force surplus to support new economic development, the labor force in general is aging. The Region has very limited governmental and institutional resources available to plan for and support economic development initiatives that would grow the area's economy.</div> <bR> <div> Infrastructure improvements supporting economic development initiatives are financed primarily by local property taxes. The relative diminutive size of most local property tax bases in the Region means that even small scale infrastructure improvements proposed to support economic development translate into significant property tax increases, making it difficult to gain voter approval. While the Connecticut Department of Labor has extensive outreach programs to help the unemployed find work, there is no labor force data bank with a regional focus to connect available local job skills with available local jobs. The Region has experienced the selling, reselling, downsizing and closure of area marquis industrial facilities controlled by corporations located outside of the Region. There is a general feeling of helplessness on the part of local public officials and area business leaders when decisions affecting the future of the area's economy are made in boardrooms far removed from the Litchfield Hills Region.</div> <div> <U>Harnessing the Power of Industry Clusters- </U>During the examination of the characteristics and conditions of the Region's economy, an effort was made to identify core business</div> <div> clusters that might possess the potential to sustain and grow quality employment opportunities in the future. "Industry cluster" is an economic development concept championed by Dr. Michael Porter of the Harvard Business School. Dr. Porter is respected worldwide as an expert in global economic strategies and was among the first to recognize the power of clusters to boost regional economies.</div> <div> A cluster is defined as a concentration of companies and industries in a geographic region that are interconnected by the markets they serve and the products they produce, as well as the suppliers, trade associations and educational institutions with which they associate. The Connecticut Department of Economic and Community Development has implemented a cluster-based economic development initiative that is built around the idea that nurturing the State's key industries improves the competitiveness of businesses within these industries, in turn boosting our economy. By combining the market knowledge and expertise of businesses with the talents and resources of government, education and economic development organizations, Connecticut's industry clusters better prepare each of their members to face the challenges created in the global marketplace.</div> <div> The State of Connecticut focuses its economic development promotional resources on nine “industry” clusters of the State's economy. These include; <U>Aerospace, Agriculture, </U>Bio<U>Science, Insurance and Financial Services, Manufacturing-Metals, Maritime, Plastics, Software and Information Technology </U>and <U>Tourism.</U></div> <div> A comparison was made of the Region's economy relative to the State's economy to understand the characteristics of the Region's economy, its strengths, weaknesses and business clusters. This analysis was made by developing “location quotients” for each of the major business sectors of the Torrington Labor Market Area (LMA) and the State and by examining employer listings for area communities. The shares for the individual sectors of the Torrington LMA were divided by the shares of the respective sectors for the State economy. Location quotients of greater than 100 indicate areas of relative strength for the Torrington LMA. The information developed from this analysis provides further insight into the condition and characteristics of the various economic clusters present in the Region's economy.</div> <bR> <div> A review of <U>Table 11, Location Quotients</U>, indicates that manufacturing, especially the manufacturing of durable goods, remains an important sector of the area's economy. The location quotients for the retail and service sectors are also strong relative to the State economy. This analysis also indicates that the Region has a relatively weak transportation, communication and utility sector, with a location quotient of 23.3 and a relatively weak finance, insurance and real estate sector, with a location quotient of 33.1. By combining location quotient information with a town by town listing of employers, two significant industry clusters emerge, <U>Manufacturing- Metals </U>and <U>Tourism.</U></div> <DIV ALIGN="LEFT"></DIV> <div> <U><IMG SRC="051f5350.jpg" border=0 width="501" height="309" ALIGN="BOTTOM" HSPACE="0" VSPACE="0"></U></div> <div> The <U>Manufacturing- Metals Cluster </U>appears to be a viable industry cluster within the Region,</div> <div> given the presence of the Torrington Company bearing manufacturing facility, owned by Timken, employing approximately 500 in Litchfield County, the Howmet Casting facility (a </div> <div> subsidiary of Alcoa) and the presence of smaller metals manufacturing firms within the Region. Assisting this cluster in Connecticut is the Metal Manufacturers' Education and Training Alliance (METAL), a not-for-profit corporation that seeks to improve the competitiveness and productivity of Connecticut's metal manufacturers. METAL's mission is to use collaboration to position metal manufacturers in Connecticut at the forefront of their industry: Assistance is provided to enhance productivity through programs that improve operational effectiveness and technology, building a high quality workforce through model training programs and partnerships, and helping companies assess, understand and succeed in their markets.</div> <bR> <div> Although strongly supported by the State's Cluster Initiative Program, the <U>Tourism Cluster </U>is not identified by the Connecticut Department of Labor as a separate industry sector of the State's economy, as the impact of tourism is dispersed among retail, transportation and service industry sectors. To better understand the importance of the Tourism Cluster to the State's economy, the Connecticut Department of Economic and Community Development (DECD) commissioned an analysis of this industry and found the level of tourism expenditures in the Litchfield Hills Region to be $334,000,000 in 2001. The importance of the <U>Tourism Cluster </U>to the economy of the Litchfield Hills Region varies from town to town Overall, tourism is estimated by DECD to provide nearly 5,400 jobs in the Region, representing approximately 18% of the area's workforce.</div> <div> The Region's natural beauty, attractive historical villages, recreational, cultural and</div> <div> entertainment offerings and year-round attractions are major reasons for the success of the area's tourism industry. The strategic location of the Region relative to the population centers of New York City and Boston plays an important role in the attraction of visitors. Businesses in the Region's Tourism Cluster operate with support from the Northwestern CT Convention and Visitors Bureau, a strong private-public partnership, and the Connecticut Tourism Council.</div> <bR> <div> <U>State of the Region's Economy: </U>In the past ten years, the Litchfield Hills Region experienced economic growth, followed by a recession and more recently by a slow economic recovery characterized by the absence of significant employment gains. This recent recovery is shallow and appears to be spurred largely by net population in-migration and associated construction spending on residential development and a corresponding increase in the service sector of the Region's economy. The fact that unemployment rates for the Region's labor force are relatively low is deceiving because 45% of Litchfield County's aging labor force finds employment outside of the County.</div> <bR> <div> Given current conditions and resources, the Region's economy can expect to experience continued slow growth at best, characterized by a continued erosion of the manufacturing base, continued increases in service sector employment and continued dependence by the Region's labor force for employment opportunities located beyond the Region. Efforts to revitalize the Region's urban centers, villages, vacant industrial buildings and brownfield sites will be affected by the extent to which area communities are successful at implementing “Smart Growth” planning policies that maximize the utilization of existing infrastructure resources while minimizing “greenfield” development.</div> <bR> <div> <B><U>External Trends and Forces</U></B></div> <div> The presence of absentee ownership of area businesses and the globalization of many economic activities existing within the Region is a fact of life. In the future, an increasing proportion of decisions affecting area businesses will be made in boardrooms far removed from the Litchfield Hills. While this represents a threat to the independence of the local economy, recognizing and responding to this condition will enable the Region to become better organized to influence future change.</div> <bR> <div> Employment in the service sector of the Litchfield Hills economy continues to expand, having surpassed manufacturing employment levels. This trend has been experienced by regions throughout Connecticut and is projected by the Connecticut Department of Labor to continue into the foreseeable future. Service sector employment generally produces lower paying jobs than are found in the manufacturing sector and the service sector typically does not have the significant multiplier benefit affect to the local economy produced by manufacturing businesses.</div> <div> Another external trend that is taking hold within the Region is the application of “Smart Growth” principles to efforts to develop the area, while protecting its quality of life. Most of the core principles of Smart Growth focus on maximizing the utilization of existing infrastructure resources to minimize “Greenfield” development and as such they constitute a redefinition of the old New England adage “waste not - want not.”</div> <bR> <div> Regional economic development and marketing efforts across the U.S. is an emerging external trend that represents a potential threat to the economy of the Litchfield Hills Region. While our Region possesses significant strength's that represent opportunities for future economic expansion, the challenge is to develop a successful organized, Region-wide approach that takes advantage of these opportunities to grow the area's economy. The current lack of organizational, staff and financial resources within the Region with a dedicated focus on growing the area's economy represents a threat to realizing opportunities for economic growth. This lack of resources is a serious impediment to the ability to plan, organize and implement economic development initiatives and to support and expand efforts to market and promote the Region in a competitive manner. Many other regions throughout the country and world in competition with the Litchfield Hills possess these organizational, staffing and financial resources, putting us at a competitive disadvantage.</div> <bR> <div> <B><U>Partners and Resources for Economic Development</U></B></div> <div> While there are many organizations, businesses and individuals with an interest in seeing improvements to the area's economy, there are currently very limited resources in the form of staff and funding available to implement an organized program of Regional economic development initiatives.</div> <div> The following is a description of some of the “important actors” and potential resources that have an effect on economic development activities within the Region and which have the potential to contribute to a coordinated program of efforts to improve the area's economy.</div> <bR> <div> <U>Local Level</U> - Each local municipality within the Region has a planning and zoning commission and wetlands commission that act on municipal economic development proposals as well as proposals submitted by the private sector. While these commissions do not initiate economic development initiatives, their cooperation in the land use permitting process is essential to implementing bricks and mortar projects. Several local municipalities have economic development commissions that prepare municipal policies and programs affecting economic development at the local level and one community (the City of Torrington) has a full time staff person dedicated to facilitating economic development within the city.</div> <bR> <div> <U>Regional Level</U> - Included in the list of “important actors” within the Litchfield Hills Region, relative to the area's economy, are the Region's 10 Chief Elected Officials, who combine their efforts through their Regional Planning Organization. The Litchfield Hills Council of Elected Officials (LHCEO) continues to act as the principle governmental coordinating agency for activities affecting the area's municipalities and prepares a Regional Growth Guide Plan to provide a regional perspective to issues that affect the future of the area's economy. LHCEO has successfully managed two regional programs, in cooperation with State financial assistance, to spur downtown revitalization efforts and assist small businesses. LHCEO's staff and financial resources are very limited (one full time professional) and stretched to the limit.</div> <div> The members of the Regional CEDS Committee (LHEDP) are the individuals most actively focused on current regional efforts to improve the area's economy. These individuals represent a wide variety of governmental, business and institutional interests, as described in Table 1 above. While the organizations represented by these individuals are not in a position to contribute significant staff or financial resources to implement the regional economic development initiatives identified in this CEDS, their continued participation will be important to maintaining a broad based and united regional effort to grow the area's economy.</div> <div> The Northwest Chamber of Commerce is the most active and effective regional organization for marshalling the resources of the private and institutional sectors of the Region to the benefit of the area's economy. The staff and financial resources of this organization are limited, but the Chamber is committed to participating to the best of its capacities to help implement the recommendation of this CEDS.</div> <div> The Chamber has co-partnered with the LHCEO during the CEDS process and recently spearheaded successful efforts to create the Northwest Connecticut Economic Development Corporation. This non-profit entity is envisioned as one of the principle implementing organizations/resources for the regional economic development initiatives proposed by this CEDS.  Its Board includes many of the members of the CEDS Partnership Committee, providing for excellent continuity.  The Northwest Connecticut Economic Development Corporation is a new organization with very limited funding and no staff.</div> <div> <U>State Resources</U> - The State of Connecticut has program, staff and financial resources that benefit the economy of the Litchfield Hills. The State's Department of Economic and Community Development (DECD) has a wide variety of programs to support and stimulate economic development and redevelopment activities at the local level and will be looked upon as an important partner in implementing CEDS recommendations.</div> <div> The State also has the <U>Small Town Economic Assistance Program </U>to provide flexible grants for a variety of municipal projects that can be used to stimulate economic development activities. This program is administered by the Connecticut Office of Policy and Management and is currently unfunded.</div> <div> <U>Unemployment and Economic Distress- </U>There are no <U>extensive </U>pockets of poverty located within the Litchfield Hills Region and unemployment rates for the Region as a whole are on a par with those of the State. However, the Region's two largest urban centers, Torrington and Winsted have unemployment rates that are 20% and 30% higher, respectively, that the statewide average. Unemployment leads to poverty and poverty rates in those two communities, while not extensive, are higher than adjacent communities. The Region is fortunate to have a strong partner in the form of the Connecticut Department of Labor to provide assistance to those seeking employment.</div> <bR> <div> The Connecticut Department of Labor (CTDOL) in cooperation with DECD, the Danbury-Torrington Workforce Development Board, the Connecticut Bureau of Rehabilitation Services and Northwestern Connecticut Community College (located in Winsted) offers a variety of programs to provide assistance to those in search of employment. CTDOL has located a satellite <I>Connecticut Works </I>Center in Torrington to provide the following services:</div> <div> - Job search assistance and on-line job bank</div> <div> - Workshops on job search techniques and career planning</div> <div> - Dislocated worker services</div> <div> - Business and community economic development services</div> <div> - Veterans employment services</div> <div> - Education and supportive services information</div> <div> The CTDOL also provides services to the business community for job-related consulting services, apprenticeship programs, customized job training programs, information on OSHA regulations, wage and workplace standards, rapid response to company downsizing or closure, shared work programs, and labor market information.</div> <div> Workforce Development Boards, working with the CTDOL and other State agencies and private organizations, form a statewide partnership to achieve comprehensive workforce development in the State. These nine Boards are located throughout Connecticut and conduct comprehensive planning, and coordinate workforce policy and program development. These Boards assess employment and training needs and priorities and conduct planning for and coordinate programs that address those needs. In addition, the Boards create annual employment and training plans, and review grant proposals and plans submitted to state agencies by other organizations to assure that all planning is consistent with an overall statewide blueprint for workforce development. The Litchfield Hills Region is but one of several smaller regions participating in the “super-regional” Workforce Development Board serving western Connecticut.</div> </tD> </tR> </TABLE></B></div> <bR> <bR> <bR> <bR> <bR> <bR> <bR> <bR> <bR> <bR> <bR> <bR> </td> </tr></table></body>