April 18, 2014/Press Releases

Paging Mark Boughton: Would You Have Let Cartus Leave Danbury?

Hartford CT – On the same day the state Department of Labor announced Connecticut added 4900 new jobs in March, Governor Malloy announced a deal with one of Danbury’s largest employers to keep the company in the city and expand its Danbury operations.  Cartus Corp. had been aggressively recruited by officials to relocate to New York and Texas, but thanks to Governor Malloy’s successful economic development strategy, one of Danbury’s largest employers is staying in Connecticut.  GOP candidate for governor and Danbury Mayor Mark Boughton routinely criticizes state economic development agreements, but his comments about yesterday’s announcement were surprisingly vague. Given that, the Connecticut Democratic Party would like to know the answers to the following questions from Mark Boughton:

1. Would you have let Cartus pack up and leave Danbury instead of reaching an economic development deal like the state did, yes or no?

2. Do you support the deal that the State of Connecticut and Cartus reached to keep the company in your city, yes or no?


Connecticut Department Of Labor: “Connecticut Added 4,900 Total Nonfarm Jobs (0.3%) In March.” “Connecticut added 4,900 total nonfarm jobs (0.3%) in March, further restoring positions lost in the extreme January deep freeze. The state has now added 9,400 jobs (0.6%) over the year. The March increase was enhanced by February’s upwardly revised increase (1,400, 0.1%) that was 600 jobs higher than originally reported. The state’s nonfarm employment growth rate appears to be returning to the moderate expansion pace experienced before the winter chill took hold at the start of the year.” [Connecticut Department of Labor, March 2014 Connecticut Labor Situation, 4/17/14]

After Being Courted By Officials From Texas And New York, Cartus Corp. Decided To Stay In Connecticut And Expand Its Danbury Headquarters. “After being aggressively courted by officials from Texas and New York, one of the city’s largest employers has decided to stay in Connecticut and expand its Danbury operations with the help of a $6.5 million forgivable loan announced Thursday by Gov. Dannel P. Malloy. Cartus Corp. is expected to use the loan as part of a $15.4 million expansion of its headquarters on the western side of Danbury slated to begin this summer.” [News-Times (Danbury),4/17/14]

As Part Of The Deal, Cartus Agreed To Retain 1,275 Employees And Will Receive Incentives If They Hire 200 Additional Employees In The Next Five Years. “As part of the deal, the company has agreed to retain 1,275 employees. The loan will be 100 percent forgivable if Cartus hires an additional 200 employees within the next five years. That translates into a cost to the state of $32,500 per employee for the new jobs.” [News-Times (Danbury), 4/17/14]

Boughton Said He Was Pleased Cartus Was Staying In Danbury, But Was Concerned About The Malloy Administration Offering Financial Incentives To Companies To Stay In Connecticut. “Mayor Mark Boughton, who hopes to be the Republican Party’s nominee to challenge Malloy this fall, said while he is pleased the company is staying in Danbury, he is concerned about the number of checks the administration has been funneling to corporations. Boughton briefly shook hands with the governor when he arrived at Cartus before noon and sat in the front row for the speeches. The mayor didn’t make any comments during the event. Boughton had been openly critical in November when the Malloy administration announced a $3 million loan that allowed bicycle manufacturer Cannondale to move its headquarters from Bethel to Wilton. At the time, company officials said they considered moving out of state. ‘Obviously, we have to get away from a system where we have to pay companies to stay,’ Boughton said. ‘If we weren’t ranked as one of the last states to do business in, we wouldn’t have to give out big checks every time a company is thinking of moving. Our business and tax climate should become a natural for businesses.’” [News-Times (Danbury), 4/17/14

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