Location:
CORPORATIONS; JOB DEVELOPMENT;
Scope:
Connecticut laws/regulations; Background;

OLR Research Report


May 11, 2011

 

2011-R-0226

JOB CREATION AND RETENTION AT WINDSOR MARKETING GROUP

By: Amanda Gordon, Research Fellow

You asked about job creation and retention at Windsor Marketing Group, Inc. (WMG). Specifically, you asked (1) if WMG received a state grant to create and retain jobs in Connecticut and (2) its history in this regard.

SUMMARY

Windsor Marketing Group is a marketing firm based in Windsor Locks, Connecticut. The firm primarily assists retailers in creating and producing in-store communications programs.

In April 2009, the state provided WMG with a $2 million loan to be used towards expanding the firm's printing and distribution facility in Suffield. Under the terms of the loan, if WMG maintained an average of 125 employees for at least one of the first three years of the loan term, the state would forgive up to half of the loan.

We were unable to obtain WMG's history of job creation and retention from either the Department of Economic and Community Development (DECD) or the Department of Labor (DOL). DECD plans to complete a job audit after the March 2012 deadline. According to DOL, the number of employees or any change in the number of employees for a specific employer is confidential under CGS 31-254(a)(1). However, as a public official you can request the information directly from DOL.

BACKGROUND

WMG is a marketing firm that helps retailers increase sales by creating and producing in–store communications programs, namely signs for use inside stores. The programs are aimed at making stores easier to shop, reducing turnaround times, and lowering production and fulfillment costs. The firm develops, designs, and manufactures these programs for some of the largest retailers in the country.

The firm's headquarters is located in Windsor Locks, Connecticut. It has regional offices in Atlanta and West Palm Beach, Florida (WMG, www.windsormarketing.com).

LOAN PROVIDED TO WINDSOR MARKETING GROUP

WMG has not received a grant from the state. Rather, DECD provided it a $2 million loan in March 2009. The 10-year loan carries a 3 percent interest rate. Under the loan terms, WMG is required to maintain an average of 125 full-time employees for 12 consecutive months ending on or before 36 months from the agreement date of the contract. If WMG meets this requirement, DECD will forgive $1 million of the loan.

WMG used the loan towards a $7.1 million project to expand the firm's 39,600 square-foot printing and distribution facility in Suffield. The state offered the loan after learning that WMG was considering moving its operations to Massachusetts (Hartford Courant, State Helps Suffield Firm Grow Low-Interest Loan, April 14, 2009).

HISTORY OF JOB CREATION AND RETENTION

We were unable to obtain WMG's history of job creation and retention from either DECD or DOL.

According to DECD, WMG had 122 full-time employees and sought to hire three new ones at the time it received the loan in March 2009. Because WMG has until March 2012 to maintain an average of 125 full-time employees for 12 consecutive months, the agency has not yet completed a job audit. However, according to a DECD representative, the agency plans to do so after this deadline as passed.

According to DOL, the number of employees or a change in the number of employees for a specific employer is confidential information under CGS 31-254(a)(1). However, the information can be released to a public official in the course of his or her public duty. If you would like the information, you will need to submit a written request to DOL.

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