AGENCY SELECTS INTERIM CHIEF; DEVELOPMENT GROUP HIRES STATE OFFICIAL WITH TIES TO ROWLAND
BYLINE: MARK PETERS; Courant Staff Writer
A quasi-public economic development agency that has lost two chief executives in the last year is turning to a state government official with close family ties to former Gov. John G. Rowland.
John A. Mengacci, an undersecretary at the state Office of Policy and Management, was named interim president of Connecticut Innovations Inc., which invests in start-up technology firms for the purpose of boosting fledgling industries in the state.
The agency's board of directors appointed Mengacci on Thursday to the $175,000-a-year position. Members will consider Mengacci, who has been a member of the CI board for several years, for the president's job permanently as part of a broad search during the next six months.
``That is too long to leave the organization without strong leadership,'' said Elaine Pullen, chairwoman of the board.
Mengacci, 47, holds a law degree. He lacks a background in either venture capital or technology industries, but brings connections and experience in state government at a time when Connecticut Innovations is seeking as much as $50 million in new state funding.
Connecticut Innovations also provides money for energy projects through the Connecticut Clean Energy Fund, which is financed by electricity ratepayers. The agency has faced turmoil because of the departure of banker Chandler J. Howard in April 2006 after seven months as president and the departure last month of Frank Dinucci, a consultant and investment banker, after six months on the job.
Concerns about potential conflicts at the Clean Energy Fund came up in February 2005 when The Courant reported that it made a loan to a company with ties to a board member of Connecticut Innovations and Rowland associates. Last year, the Office of Policy and Management reviewed the fund after the state Office of Consumer Counsel questioned the way it awarded contracts. Mengacci was not involved in that review.
Mengacci is the brother of Joseph Mengacci, a lawyer whom Rowland tried unsuccessfully to install as a state judge, and brother-in-law of Kathleen Mengacci, Rowland's friend and former personal secretary, who still works for the state.
In his recent job at OPM, John Mengacci oversaw, among other areas, state energy policy. Before joining state government in 1995, Mengacci owned small businesses in Connecticut and Florida, including a vending machine company and a florist shop.
``That is going to be one of my challenges, to work on the venture capital side,'' he said.
Megacci said his connection to the Rowland administration is irrelevant. The focus instead should be on the unanimous support he has from the Connecticut Innovations board.
Matthew Nemerson, president and CEO of the Connecticut Technology Council, an industry group, said a veteran of venture capital is not what the agency needs right now. Connecticut Innovations has staff to find and put together early stage investment deals, he said Thursday.
At this point, the agency needs someone who can build political support in the General Assembly and with Gov. M. Jodi Rell.
``I think it's the right choice for this time,'' Nemerson said.
Mengacci will step down from the Connecticut Innovations board.
Senate President Pro Tem Donald Williams, D-Brooklyn, said he was glad to see an interim president at Connecticut Innovations after criticizing Rell in recent weeks for not having people in key economic development positions. He withheld his judgment on whether Mengacci is the right person, saying he doesn't know Mengacci.
Overall though, Williams said he would like to see vacant economic development positions filled by new people with private-sector experience.
``The same old same old is not going to work,'' Williams said.
Contact Mark Peters at mrpeters@courant.com.