SOUTHINGTON - The ITT Hartford, as it was called back in 1993, built new quarters as its business grew, and in 1994 a partnership with the AARP pushed its local operation into high gear.

The Hartford Financial Group Inc. was a godsend to a town that was losing 10 percent of its workforce because Pratt & Whitney was closing two plants.

"What we lost from Pratt & Whitney, we gained from The Hartford," said Anthony D'Angelo, vice chairman of the Town Council. "They provided a nice tax base that we would have lost from Pratt & Whitney. Historically they came into Southington and embraced the town."

At its peak in 2005, The Hartford had about 2,200 employees working in its three-building campus on Executive Boulevard. Today it has 1,700, according to the most recent figures received by the town in May.

Also in May, The Hartford announced it was closing 100 Executive Blvd. and shifting the 500-plus employees to Hartford, Farmington and its call center building at 400 Executive Blvd. Nobody would lose a job.

Last week, with the lease on 200 Executive Blvd. ready to expire, the company announced it was pulling back again and closing the building while shifting more than 600 employees to Farmington, Simsbury, Hartford and into 400 Executive Blvd. The company would not say how many of the affected employees will stay in Southington.

In its statement about the move, a spokesman said the company was consolidating operations and employees into buildings it owns rather than maintaining costly leases.

Local officials are concerned, both about the moves and the empty office buildings.

"Our first thoughts are for the people who are being transferred and displaced," said Louis Perillo, economic development coordinator for the town. "We're glad The Hartford decided to keep the people in place. We're working hard to fill those buildings."

The biggest impact of having 1,000 jobs disappear from the local area will be felt in the businesses along West Street.

"It's the gas stations, the restaurants, the stores," Perillo said. "There is strength in having those buildings with these well-paying jobs with benefits and pensions and higher discretionary income."

National retail chains such as Target and Lowe's, which recently built along West Street with visibility from Interstate 84, count on traffic counts when deciding where to locate, Perillo said. Fewer workers on the road means lower numbers and fewer opportunities. The town hopes to find tenants soon who can maintain those numbers.

"Obviously any less people coming in is going to hurt," said Jeffrey Krug, store manager for Target. "They are coming in on their lunch hour. The Hartford has been a great partner for the community. I don't see any reason why (they) won't continue to be in the future."

Other business owners were surprised to learn the company was closing two buildings.

"That's not good," said Elini Papahristou, owner of Cava Restaurant on West Street. "We do a lot of lunch between The Hartford and ESPN. We're kind of right in the middle between both businesses."

The insurance and financial industry took a severe hit when the market tanked last September and has been trying to play catch up ever since. Consolidating operations into company-owned locations has become a common practice.

"Certainly that company and others have had some significant challenges lately," said Peter Gioia, a senior economist with the Connecticut Business and Industry Association. "Anything that allows a company to control cost in this difficult environment is a positive, although it's certainly not a positive for the businesses nearby."

The fact that The Hartford is not eliminating positions and is filling 400 Executive Blvd. is a good sign the company plans to maintain a presence in Southington, experts said.

"Generally the way they achieve profit targets are to reduce costs and look for opportunities to improve efficiencies," said Susan Coleman, a professor of finance at the University of Hartford. "The really good news is that The Hartford wants to keep those people and keep that talent. People are going to have jobs and still patronize merchants."

Despite its difficulties, the insurance industry in Hartford is very strong and will continue to be, Coleman said.

But locally, town officials fear that losing some of The Hartford could reduce its community contributions such as involvement and donations to the Apple Harvest Festival and the United Way, D'Angelo said.

"I'm saddened that the two buildings are closing," he said. "I know we have an economic development department working to fill the buildings, but The Hartford will be missed. Their foot will still remain in Southington because they have the one building."

mgodin@record-journal.com

(203) 317-2255