General Electric announced today it's moving its corporate headquarters to the South Boston waterfront from Connecticut.
“GE aspires to be the most competitive company in the world,” said GE Chairman and CEO Jeff Immelt. “Today, GE is a $130 billion high-tech global industrial company, one that is leading the digital transformation of industry. We want to be at the center of an ecosystem that shares our aspirations. Greater Boston is home to 55 colleges and universities. Massachusetts spends more on research & development than any other region in the world, and Boston attracts a diverse, technologically-fluent workforce focused on solving challenges for the world. ...
In Boston, GE will have roughly 800 people; 200 from corporate staff and 600 digital industrial product managers, designers and developers split between GE Digital, Current, robotics and Life Sciences. A GE Digital Foundry will be created for co-creation, incubation and product development with customers, startups and partners.
The company did not say specifically where the new headquarters would be, but that employees will start moving up here this summer. GE expects the entire move to take about two years.
Mayor Walsh announced he is readying a $25-million tax break while the state is looking at a $120-million goodie bag to entice GE to move its high-paid executives here.
In addition, the two announced extra commitments, including $1 million for workforce training and money to help "eligible" GE workers buy homes in Boston. Also: "Up to $5 million for an innovation center to forge connections between GE and innovators from Massachusetts research institutions and the higher education community."
The two also agreed not to renege on plans to improve transportation in the waterfront area.
In a statement, Walsh said:
Boston is delighted and honored to welcome General Electric and its employees to our community and we are confident that this is the start of a strong partnership.
In addition to the tax breaks - to be spread out over 20 years, GE will finance the move by selling its current headquarters in Fairfield, CT and offices at 30 Rockefeller Plaza in New York.
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Comments
Great work
By anon
Wed, 01/13/2016 - 11:36am
Baker & Walsh!
THANK GOD
By BostonDog
Wed, 01/13/2016 - 11:40am
At long last someone is finally interested in the waterfront. That part of the city is nothing more then rundown, abandoned warehouses and decrepit, cheap apartments. Maybe now there will actually be some real investment in that part of town. If we're lucky this will help fill the glut of housing inventory we have in the city and the region.
Whatever tax breaks were offered is worth it to clean up that horrible slum.
:)
By anon²
Wed, 01/13/2016 - 11:43am
:)
GE deserves a billion dollar
By HardcoreShill
Wed, 01/13/2016 - 11:56am
GE deserves a billion dollar subsidy for moving jobs to the city and saving us from not being World Class TM.
The state can raise the billion by canceling the Green Line extension!
Saint John Fish has proclaimed GE our new lord and savior!
How do you like us NOW, Haters?!?
By issacg
Wed, 01/13/2016 - 1:16pm
This is yet another time that I get to ask that (I don't even need the GE news to do so, but hell, it's another opportunity).
You see, when I was working on the Convention Center project in the late 90s, all we ever heard was that we were idiots for putting this thing "down on the waterfront" (a pejorative then), that we should enlarge the Hynes because "the Back Bay is where everyone wants to go", "no one will ever go over to that windswept wasteland of Southie", "it's going to be a white elephant", yada, yada, yada. The same type of stuff was said of Massport and John Drew developing the Seaport Hotel and office complex.
Well, Haters? Well? Ready to STFU and express at least some thanks that some people around here had vision? Ready to maybe defer to some of those people again on some more big thinking (major public transit improvements)?!?
I'm sorry, I don't often engage in the I-told-you-so stuff, but when anyone was this right on something this big, it needs to be done.
I am with you here , and as
By kvn
Wed, 01/13/2016 - 2:25pm
I am with you here , and as always, A street is our friend too !
I'm glad you asked
By anon
Wed, 01/13/2016 - 2:41pm
The BCC was designed to funnel public money to convention related businesses and leeches like Rooney. So it's your hot take that natural real estate pressures would have left the parking lots right near downtown and the harbor and the airport as parking lots as commercial development exploded across the city? I mean, really? Did all the development around Fenway Park happen because we gave Yawkey Way to the Red Sox too? The vibrancy of the Fort Point Channel district and the Greenway do as much to make this area appealing for development as your space ship hanger white elephant which allegedly still needs $1b in public underwriting to really soar.
But seriously, congratulations on soaking a little money out of every car rental coming from Logan to feather your nest.
*But seriously,
By anon
Wed, 01/13/2016 - 3:21pm
*But seriously, congratulations on soaking a little money out of every car rental coming from Logan to feather your nest.*
Not just Logan. I pay the fee annually for my Zipcar membership, and everytime I rent a car at the Enterprise in Rozzie.
It's outrageous
By anon
Wed, 01/13/2016 - 3:50pm
I mean all that and they still want more money. It's like a shady mechanic telling about the new problems they found after your car is up on the lift.
Me, too
By ladycommentariat
Wed, 01/13/2016 - 7:34pm
But from the Enterprise at Gov't Center, which I guess I can kind of see as it's in the middle of downtown. But they're charging that fee in ROZZIE? Wow.
It's a city wide thing
By cybah
Wed, 01/13/2016 - 9:39pm
As a zipcar person who used to rent in the city.. I always booked a car the first of the year so I could get charged that fee (you only get it once a year)
It's a city wide thing.. so it didnt matter if I rented the car at the airport, Govt Center Garage, or on a side street in the SoEnd. I always got hit with that fee if it was my first rental of the year.
There was no private development until public investment
By issacg
Wed, 01/13/2016 - 4:25pm
Your cynicism is noted.
The area now known as the South Boston Waterfront had been through umpteen positive economic cycles where office rents in downtown Boston soared - yet there was no development down there.
It was not until the developments that I mentioned, PLUS, dare we acknowledge a positive thing about it, the Big Dig I-90 extension, that private development began.
Be honest, without those three things, would you have used your own money in the boom time late 90s to built and office tower (or, don't make me laugh, a residential tower!) out there all by itself? People who know a lot more about development than we do weren't doing it.
Again, the Fenway is a good counter example
By anon
Wed, 01/13/2016 - 5:16pm
Why was Boylston St full of one story tire stores and the like until the past decade? You really think that kind of development wouldn't have happened @ the BCC site? All over the Rosi/WR area, gas stations and crappy little buildings are getting knocked down and turned into 4 story apartment towers, but somehow prime real estate right downtown in the thick of everything would have remained dusty car lots like a scene out of Eddie Coyle if not for the heroes who made the BCC? Sorry, I really don't buy that.
The entire city is a booming development market over the past decade as you've probably noticed. I'd hazard a guess that if we'd allowed private development on the huge BCC site, we'd have seen more development of housing, luxury and not, in that area now which would be a much bigger win moving forward, even without collecting the BCC 'vig' on people who want to rent a car for purposes other than hooking up hotel and convention insiders.
The thought that
By chaosjake
Wed, 01/13/2016 - 4:13pm
The thought that conventioneers from, like, Iowa or wherever come to town and see the barren wasteland of the South Boston waterfront and go home thinking that was "Boston" really makes me sad. They must think that Boston is a soulless, boring, generic city and wonder why they couldn't have the convention in that old strip mall outside Cedar Rapids instead. I'm certain that anyone whose first visit to Boston centers on BCAE and the surrounding area won't make a second.
Yes
By bosguy22
Wed, 01/13/2016 - 4:31pm
Because I'm sure they don't venture outside of the convention center area, just like when I visit the Javitts center in NYC. I can't believe people rave about NYC when all I see when I'm there is a 4 lane highway and a barren riverfront with a convention center. I can see large buildings in the distance, but that must be NJ, or Brooklyn.
You don't seem to know what
By anon
Wed, 01/13/2016 - 5:45pm
You don't seem to know what you are talking about. People on business usually look for something near the hotel or their meeting place, they can't always take a day to wander around.
Gate shows
By anon
Wed, 01/13/2016 - 8:55pm
It wasn't until the BCEC reneged on the promise they wouldn't hold gate shows did the interest in the area took off.
I do not believe any bullshit the developers or tax dodgers tell me.
Any word on what sort of jobs
By anon
Wed, 01/13/2016 - 11:43am
Any word on what sort of jobs this will bring to Boston? Any word on the amount of money the GE employees will pump into the economy (and pay taxes on)? Any word on the rent and condos the GE employees will lease (and pay property taxes on)? Or are the tax breaks that companies got to move into seaport, which a decade ago was literally a barren waste land used to dispose of bodies from crimes (plus 2 seedy bars people are generally happy to see go), all that we care about.
From the article....
By g
Wed, 01/13/2016 - 11:45am
Not sure what exactly the net gain is, but doesn't sound like a bad deal to me to bring in the HQ of a $150 billion company
"infrastructure improvements"
By aldos
Wed, 01/13/2016 - 12:55pm
I will be very interested to hear what these are. The seaport is badly in need of some transportation improvements as is.
GE sponsored silverline
By bosrox
Thu, 01/14/2016 - 10:28am
Would be nice to see the silverline become an actual rail line
No word on what sort of tax
By anon
Wed, 01/13/2016 - 11:48am
And the race to the bottom continues. If companies are so interested in moving here for the talent and business/tech community, why do we have to bribe them? In an ideal world we'd be asking them to pay to show up, maybe, I don't know, into a fund to help the complete transit clusterfuck that is getting in and out of the waterfront at this point, but that's a pipe dream that'll never happen in today's dollar-at-all-cost business culture.
HUGE TAX BREAKS
By cybah
Wed, 01/13/2016 - 11:49am
I'm guessing HUGE tax breaks to have a company leave another state for this one. That has to be the only way they would entertain such a move. Gotta love corporations who beg for welfare.
Spare the jobs argument... really.
Meanwhile we're still riding on broken down trains. BPS wants to cut budget. BFD is complaining about the age of fire stations. We still have many bridges in decay.
But that's OK.. we just gave huge tax breaks for a mega corporation to move here, nothing else matters I guess.
From the Globe:
By GoSoxGo
Wed, 01/13/2016 - 11:54am
See?
By cybah
Wed, 01/13/2016 - 12:00pm
Giving a multi-billion dollar corporation tax breaks.. right.
While the rest of us have to suffer....
Imagine if we had that 20 Mil or 120Mil what we could do with it.....
Should have charged them a premium
By Stevil
Wed, 01/13/2016 - 12:04pm
You want to come to Boston? You should pay extra to be in great place like this.
Not being sarcastic - totally serious.
Access to ocean, mountains, quick hop to NY for a fix without dealing with the hassles, great schools, lower state income tax than other states (on a percentage basis), history, easy access to Europe from the airports - the list goes on.
I know
By cybah
Wed, 01/13/2016 - 12:11pm
I know you aren't being sarcastic.
That's kinda my argument against these tax breaks. It's not like we're Wyoming where there's no industry or reasons to move here. We have plenty.. yet we still give tax breaks to corporations to beg them to move here. Companies move here without tax breaks, why should mega ones get one to be enticed to move here?
And honestly, I'm willing to bet dollars to donuts that when the tax breaks end in 20 years. GE will be bringing good things to life elsewhere. (meaning they will move elsewhere)
Exactly
By bosguy22
Wed, 01/13/2016 - 12:11pm
Right now the GE HQ is in CT, thus paying $0 in taxes. With a move and no tax breaks, they'll pay say $10mil. With tax breaks, they'll pay $6million. $6mil is less than $10mil, yes, but it's more than $0.
800 people aren't going to stress the roads/trains/etc so much that it makes sense to pass on additional tax revenue and exposure.
Boston
By anon²
Wed, 01/13/2016 - 1:55pm
Doesn't sound too bad, it how long will it take the state to recoup that $120 million.
The other issue is using these deal sparingly can be a good thing, but there needs to be a process where were not just giving away money to businesses that will make these moves regardless to get access to our educated labor force, transportation, and infrastructure. (Mainly most local developers who will build one way or another).
Welfare Queens
By BostonDog
Wed, 01/13/2016 - 12:04pm
The Boston Globe is saying it's all for 600 Jobs. (Yes, just 600.) So if it was $120 million and you figure a 20 year investment that works out cost of $10k per job per year for 20 years. While the state might make some money in terms of income taxes that seems like a low return on investment.
It's not "for" 600 jobs.
By bosguy22
Wed, 01/13/2016 - 12:18pm
They're moving 600 employees to Boston, they aren't hiring 600 people. Those 600 people will be a significant amount of taxable income to Mass.
Sure
By BostonDog
Wed, 01/13/2016 - 12:30pm
I understand that. For each of these people the state will make $10k less in income tax all things being equal. For non-GE jobs there is no investment loss per job.
Since most of these people will pay more then $10k in taxes it's still a net gain for the state.
It's a question of return on investment. If each of those 600 people pays an average $50k in state taxes, the $40k net seems like a good ROI. If the average amount of state income tax is $11,000 you have a ROI of $1,000 which is not so great, all things being equal.
Landing the GE HQ would be excellent if it was going to a depressed area like Fitchburg, Gardner, etc. But considering it's going into the hottest part of the state anyway, one could reasonably question if the investment could have been used better.
They will pay way more than $11k in taxes
By bosguy22
Wed, 01/13/2016 - 12:34pm
but even if they didn't, $1k is still > than $0k.
ROI
By BostonDog
Wed, 01/13/2016 - 12:46pm
Who is GE displacing? It's not like the space would have gone empty. Look the below example.
GE:
Average State Income Tax: $12,000 (Mostly high paying Jobs)
Cost of Investment: $10,000 (High cost to bring them to MA)
Total State ROI: $2,000
Company B:
Average State Income Tax: $6,000 (Middle Class Jobs)
Cost of Investment: $0 (No cost to bring them to MA)
Total State ROI: $6,000
In the above hypothetical the state makes an additional $4k by letting "The Market" choose who moves in.
I don't think the money's that important
By Stevil
Wed, 01/13/2016 - 12:44pm
Don't get me wrong. A dollar is a dollar.
While I don't agree with these tax breaks - and was dead serious above, I think there is a strategic advantage to having a corporate headquarters for a company like GE in Boston.
We've been kind of known for losing HQs over the last decade or two. I think the goal is to try and bring a few people back by showing we can woo a big company like GE.
In that sense this is a moronic tactical move, but hopefully make more sense from a strategic perspective. Only time will tell.
Maybe GE can sponsor first night or July 4th fireworks? don't know about bringing good things to life, but that's bringing life to good things!
Gee I don't know Stevil
By cybah
Wed, 01/13/2016 - 12:46pm
Maybe it's because most of the big players tax breaks ended and we weren't going to give them anymore. Maybe that's why they've left.
And who's to say in 20 years GE will be bringing good things to life in another state once their tax breaks end also.
Just saying...
Perhaps
By Stevil
Wed, 01/13/2016 - 2:08pm
But most of the HQs haven't moved. They've been acquired by out of state or out of country firms - then they relocated their execs.
tell that
By cybah
Wed, 01/13/2016 - 2:14pm
to my friends in Putnam and Fidelity that had to relocate to New Hampshire...........
Sure the HQ may have not moved but the jobs certainly did after the tax breaks ended.
Oh I agree
By Stevil
Wed, 01/13/2016 - 2:25pm
Plus our friends at State Street that seem to hire and fire thousands just for sport.
Maybe GE can sponsor first
By roadman
Wed, 01/13/2016 - 12:51pm
Mabye we can finally agree that this city no longer needs the outdated "traditions" of First Bight or 4th of July fireworks instead of trying to extort "contributions" from private firms to keep this nonsense going.
Worry, Work, Consume, Die
By Jeff F
Thu, 01/14/2016 - 3:45pm
Hey, 500,000 people enjoying the fireworks - Roadman says get the hell back to work!
Also, those 600 good jobs
By anon
Wed, 01/13/2016 - 1:29pm
Also, those 600 good jobs will have multiplier effect where each job creates several others. After all, the 600 new MA employees will increase work for doctors, nurses, restaurant works, real estate brokers, etc in Boston area and who will pay more taxes as well. In addition, all these new employees will be buying houses and paying real estate taxes, spending money and paying sales tax. In this deal, $120M tax credit over 20 years is peanuts.
Not to mention
By Kathode
Wed, 01/13/2016 - 7:51pm
groundskeepers, nannies, and Globe delivery people.
I should learn how to read
By adamg
Wed, 01/13/2016 - 12:27pm
Thanks, I've added that to the original post.
mbta and Boston's productivity
By from brighton
Wed, 01/13/2016 - 11:55am
when they find out that 50% of their workforce is unable to reliably show up to work on time due to "signal and track" problems, maybe they will realize that these tax savings came with a hidden productivity killer, known as the mbta.
GE and the T
By issacg
Wed, 01/13/2016 - 1:39pm
well, it might not be likely, but perhaps when Jeff Immelt assumes his chair at the Massachusetts Competitive Partnership (the "New Vault"), maybe that finally tips the scales for them deciding that their big signature project will be fixing the MBTA.
I know that people will snipe at this notion, but really, is this any less likely than the T being fixed any other way?
Maybe GE will be inspired by
By kvn
Wed, 01/13/2016 - 6:18pm
Maybe GE will be inspired by the woes of the T and get into the rolling stock business. They got the dough , they shed some divisions of their business, There must be some room left over in the barren for a manufacturing shed . Maybe even venture into RDC cars along with trolleys and subway trains. American made, so they dont have to go through the machinations of an assembly staging area, Direct sales , rail to rail. Massport got a spur down there, Upon further inspection its not that far fetched; Fun Facts :
1892 General Electric created by merger of Edison General Electric Co. and the Thomson-Houston Co. of Lynn, Massachusetts
In 1888 Thomson-Houston supplied the Lynn & Boston Street Railway with the generation and propulsion equipment for the Highland Circuit in Lynn,[2] the first electric streetcar in Massachusetts.
GE Transportation is the largest producer of diesel-electric locomotives for both freight and passenger applications in North America, believed to hold up to a 70% market share.[4] It also produces related products, such as railroad signaling equipment, and parts for locomotives and railroad cars, as well as providing repair services for GE and other locomotives.
All of above fished from Wiki
Fixed that for you
By merlinmurph
Thu, 01/14/2016 - 7:58am
cybah:
How about, Gotta love politicians that hand out welfare to large corporations.
Don't put this on GE. It is GE's corporate responsibility to get whatever breaks they can get. They would be failing their owners/stockholders if they didn't ask. All they're doing is asking. This is a negotiation. You can make a lowball offer on a house - that doesn't mean they have to accept it.
No
By cybah
Thu, 01/14/2016 - 8:30am
They begged for it. CT tried to impose some new taxes on GE and other larger CT companies (which was eventually reversed once GE said they were leaving). So GE entertained the idea of leaving, which turned into "GE is barking to leave, which state will give us the largest tax breaks and we'll move there"
It's all about who can give the largest breaks and how they can avoid paying taxes. While I agree the politicians are part to blame, I also blame the corporations for being pigs at the troth. It's equally between the two.
Are you F*ing serious?
By merlinmurph
Thu, 01/14/2016 - 8:56am
It is 100% the politicians - they don't have to give squat to anybody.
Blaming the tax breaks on the company is just being a whiner and not assessing blame to those who deserve it.
Does a good parent give their kid everything they ask for? No. A parent has to say "no" - about a billion times a day.
Good luck to you when you have to buy a house or a car.
"How much are you asking? OK sure, I'd love to pay way more than I have to simply because you're asking that much."
Are you fucking kidding me?
No I am not
By cybah
Thu, 01/14/2016 - 9:14am
Sorry I believe the fault lies with BOTH. The companies who seek them and the politicians who give them. GE's track record isn't exactly a bed of roses either...
But GE wanted to move before the politicians came to the plate with tax breaks.. they were shopping around for bigger tax breaks. Politicians provided.
Like I said, both are equally guilty.
Now!... Public Meeting of Boston City Council
By theszak
Wed, 01/13/2016 - 12:08pm
Now!... Public Meeting of Boston City Council
http://www.cityofboston.gov/citycouncil/live.asp
How to make a Stenographic Record of a Public Meeting of Cambridge City Council or Boston City Council
http://qwertysteno.com/Basics/Introduction.php
Shirley?
By anon
Wed, 01/13/2016 - 12:07pm
I'm just glad we have a keen minded business columnist to cover this story.
Oh wait, she did a profile of one of the luckiest people on earth, Jamie McCourt. McCourt as you may recall was married to a guy who tried to run the Dodgers into the ground, only to sell the team at the best possible time in history given the regional sports media bubble so Jamie netted $131m to walk away from the team/marriage. Just so inspirational and I'm sure Linda Henry found it very inspirational.
that article
By cybah
Wed, 01/13/2016 - 12:11pm
THAT article was insulting..
I learned something from the McCourt article
By issacg
Wed, 01/13/2016 - 1:49pm
I was shocked to learn that Jaime was hosed so badly (I'm sure this is common knowledge, I just don't follow this kind of stuff).
I had the opportunity to sit in on meetings with both McCourts when I was working on South Boston development issues in the late 90s (see my other fiery post elsewhere in this thread). It certainly seemed to me like Jaime was calling the shots in those days - certainly people were more afraid of her than Frank.
I have no idea when that turned around (or if it was just a ploy/facade the whole time), but I can see why she's on a something of a mission and I think the message is commendable.
What's mission again?
By anon
Wed, 01/13/2016 - 2:45pm
Luck is everything? They could not have run the Dodgers any more poorly but they both made out like bandits due to fortunate market timing. They were essentially handed the team due to the internal politics of baseball team sales so even that wasn't some awesome free market achievement.
Clearly, you just have it in for me today.
By issacg
Wed, 01/13/2016 - 4:58pm
The mission to tell the next generation of spouses (and she seems be focused on women) to watch their flanks.
Perhaps you might read the article again, or at least try to disagree without being so disagreeable tomorrow.
Disclosure
By anon
Wed, 01/13/2016 - 5:15pm
I didn't read it because Leung is not an good or interesting columnist and McCourt isn't of interest from a business perspective. Spouse fails to get spectacular windfall when divorcing husband isn't a business story, sorry. She could have done better in the divorce, she's still set for life due to largely market forces beyond her control or intent.
BTW, I'm truly sorry I hurt your feelings apparently when responding to a post which included this section:
"Well, Haters? Well? Ready to STFU and express at least some thanks that some people around here had vision? Ready to maybe defer to some of those people again on some more big thinking (major public transit improvements)?!?"
But please, do tell me more about civil discourse in online comment threads.
Shirley is frothing with glee today.
By anon
Wed, 01/13/2016 - 3:27pm
It's better than the Olympics!!!!!
https://www.bostonglobe.com/business/2016/01/13/wi...
$140M
By HarryMattison
Wed, 01/13/2016 - 12:13pm
"Boston may offer $GE as much as $20m in tax relief over 20 years; state package could be valued as high as $120m"
https://twitter.com/BostonGlobe/status/68731775672...
2014 revenue was just north
By Steve Brady
Wed, 01/13/2016 - 12:22pm
2014 revenue was just north of $140 billion. Net profit only $15 billion though, so.....
If history is any guide, GE
By Liam
Wed, 01/13/2016 - 12:19pm
If history is any guide, GE has a track record of being a bad corporate citizen.
The company totally wrecked the Hudson and Housatonic Rivers. I'd be wary of what they might do to Fort Point Channel and Boston Harbor.
Except that we're aren't talking
By roadman
Wed, 01/13/2016 - 12:21pm
about manufacturing plants here.
Yes
By bosguy22
Wed, 01/13/2016 - 12:25pm
I'm sure all the vice presidents and assistant vice presidents will be dumping toxic chemicals in Ft Point. It's amazing to me people can comment on things they know absolutely nothing about and don't even bother to read the article before posting here.
No, the will bring their own brand
By whyaduck
Wed, 01/13/2016 - 12:57pm
of toxicity.
I'm left with a mental image
By chaosjake
Wed, 01/13/2016 - 12:59pm
I'm left with a mental image of a bunch of guys in $4000 suits literally crapping directly into the Harbor. Thanks!
Poly Chlorinated Buttocks
By Sock_Puppet
Thu, 01/14/2016 - 8:45am
Who doesn't like a fresh breeze through the pinstripes?
You're new to the Internet,
By anon
Thu, 01/14/2016 - 10:36am
You're new to the Internet, aren't you.
I used to work at the EPA.
By Kinopio
Wed, 01/13/2016 - 1:22pm
I used to work at the EPA. Superfund sites in the file room were organized by the company responsible for the pollution. Except for GE. They had their own file room because they caused such massive amounts of damage all over New England. So that is the type of company we are giving millions in corporate welfare to.
It probably doesn't come down
By Refugee
Wed, 01/13/2016 - 1:13pm
It probably doesn't come down to tax breaks. For a company that earns $15 billion every year, $140 million is not a lot. If your salary is $80,000 a year, would you relocate to save $800?
I think what it boils down to is whether the executives would rather live in Hartford, or relocate to Boston.
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