Preston, Conn. (AP) - The state of Connecticut is providing a $7 million loan to the Mystic Aquarium, a nonprofit that’s been hit hard financially after being forced to close for almost four months because of the pandemic.
Gov. Ned Lamont, a Democrat, said the multi-pronged arrangement with the aquarium is part an ongoing effort to try and help the state’s important tourism industry, including nonprofit and commercial businesses.
“We’re coming up with some state programs that get them through until we’re in an economy that’s a lot stronger for everybody,” said Lamont, following a tour of Holmberg Orchards in nearby Gales Ferry. He did not elaborate.
State lawmakers from eastern Connecticut, who had urged Lamont back in May to help the aquarium, have suggested that a pool of $20 million in state money is needed to help tourism as well as arts and culture attractions. They noted in a letter to Lamont that the region’s tourism cluster, which also includes the Mystic Seaport Museum that was forced to lay off workers during the pandemic, makes up nearly 20% of the southeastern Connecticut economy and employ nearly 30,000 people.
State Sen. Cathy Osten, D-Sprague, the co-chairman of the General Assembly’s Appropriations Committee, said she and other lawmakers are meeting Wednesday with representatives of small and large theaters to gauge their financial needs. She predicted lawmakers will be meeting with other types of businesses as well in the coming weeks.
Lamont is scheduled to meet with the theaters later in the week, she said.
It’s questionable whether the state will be issuing grants to struggling attractions. Under the $31.5 million deal with the aquarium, the popular venue raised more than $10 million from private donors and renegotiated loans, eliminating $14.5 million in long-term debt, according to state officials. The $7 million state loan will ultimately be replaced with private capital after the aquarium recovers from the pandemic. The state will have two seats on the organization’s board.
Home to 5,000 animals, the aquarium had an annual attendance of 800,000 people and employed about 250 full-time workers before the coronavirus hit the state. It was closed to the public on March 17 and reopened on July 1. It continues to operate, however, at 50% capacity.
State officials hope the unique arrangement will put the aquarium on a solid financial footing for years to come. Lamont noted that “every situation is different” and the state plans to find ways to “partner” with other nonprofit attractions that may need financial help.
“Mystic Aquarium worked diligently to raise an impressive amount of private donations from its board and other donors and to work with its banks on a global solution in which the state was one of many partners,” Economic and Community Development Commissioner David Lehman said in a written statement. “This is a model for economic development in COVID-19 and beyond with shared public-private investment.”
Despite concerns about COVID-19, the owners of Holmberg Orchards said they’ve seen a steady stream of visitors as the fall season begins at their farm, where there’s everything from pick-your-own apples and pears to a corn maze and a farm market.
“People seem to be very comfortable because we have the space. It’s an outside activity. It’s in sunlight. It’s a healthy activity. It’s a family friendly activity,” said Russell Holmberg, noting he’s been surprised to see so many visitors from New York, Massachusetts and Rhode Island.
“So far it’s been a very good season,” he said.
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