UPDATED: General Electric on Wednesday confirmed the industrial conglomerate’s planned move to Boston, according to The Boston Globe.
The newspaper said GE hasn’t picked a site in Boston yet, but is focused on the city’s Seaport area. The move will involve about 800 jobs and is expected to start this summer and happen in phases through 2018, the Globe reported.
According to the Globe:
City officials said they are prepared to offer as much as $25 million in property tax relief. The state package could be valued as high as $120 million and could include a variety of benefits, such as grants, tax incentives, infrastructure improvements, and help with real estate acquisition costs.
Additionally, GE was offered assistance with setting up an innovation center to better connect the company with the state’s research institutions, a commitment to existing transportation improvements in the Seaport, and help with relocating GE employees to relocate to Boston.
Original post below:
General Electric, the Fortune 500 industrial giant, is reportedly moving from Connecticut to the capital of Massachusetts, according to a report Wednesday in The Boston Globe.
A formal announcement of the move is expected Thursday, the Globe reported citing an unnamed official.
The move follows a spat between the maker of locomotives, jet engines and advanced medical devices over tax policy in Connecticut that prompted GE Chairman and CEO Jeffrey Immelt to look for a new base of operations.
Georgia was in the race before being informed in November that it was no longer being considered. Though the company has operations in many states, and the headquarters of two divisions in Georgia, much of GE’s core is in the Northeast where many observers expected GE to stay.
But a move to a state often derisively called “Taxachusetts” might be a surprise to some.
Massachusetts may have a high-tax reputation, but the commonwealth also enjoys fame as an education powerhouse. The Bay State’s unemployment rate also is nearly a full percentage point better than Georgia’s.
Boston also is a technology hub of New England with the Massachusetts Institute of Technology and a vibrant medical community and world-class hospitals. Anyone familiar with GE’s latest generation of television ads must note its move to pitch itself as “the world’s Digital Industrial Company.” See one of their new ads here.
Though recruiters for Georgia and metro Atlanta made GE one of their top economic development priorities, state officials began to quietly hint in the weeks before Atlanta was eliminated that convincing GE to leave the Connecticut and buck GE’s more than century-old northeastern roots was a daunting challenge.
Still, though state and local recruiters were disappointed in being eliminated, the state remains hopeful that getting in front of GE executives and visiting officers from other Connecticut Fortune 500 companies upset about their state’s tax changes could lead to other jobs deals.
GE has significant ties in Georgia, including more than 5,000 workers in several divisions. GE Energy Management and GE Power Generation Services are based in Georgia. John Rice, a vice chairman and chief of global operations, has a residence in Buckhead.