[robr2]

Originally Posted by BobNJ1960

Most $ in all deals are not direct cash transfers, but rather they are reductions in taxes to the corp over many years. Sometimes in property tax forgiveness, sometimes in employer payroll tax credits due to the increase in employee taxes paid in the new location. There are even utility cost reduction incentives tied to deals at times. In many cases, the federal government covers the "reductions in taxes" the local government directly offers.

I knew of some moves where the corp was determined to go somewhere already, and they still got incentive funding anyway even though it was not the "difference maker".

We poached Henkel; NJ poached Pepperidge. Poaching, for the last quarter century or so, has become a US way of life.

You are correct that generally incentives are usually tax credits based on headcount. In the GE case, Boston and the state offered much more including major transit improvements and real estate.

When GE decided to scale back operations, they and the state jointly owned the property which had been renovated. As part of the scale back, GE repaid the state's $87 million investment in the property. When the property was sold for $252 million, the state received another $11 million. Boston never paid a penny to GE.

Although the GE relocation didn't work out as planned, the expected development of the Fort Point neighborhood is. Parking lots and old factories are now becoming a thriving area with Eli Lily moving into a building on the site where GE was going to build. Gillette has sold acres of parking and major life science players are going to move in. I wouldn't be surprised to see Gillette sell the World Shaving Headquarters as that land becomes even more valuable. There's also a large postal facility there that will probably move at some point.

In the end, the goal was achieved - a thriving new neighborhood creating high paying jobs and revenue for the state and city without displacing residents. And a Fortune 50 company stayed in Boston.

[JayCT]

Originally Posted by SteveM85

They got the incentives if they maintained a certain headcount. I thought I heard Boston didn’t achieve or maintain that, not sure I could be wrong though.

You are correct. They didn’t meet the headcount promised so they canceled building a new headquarters building. That was the point of my original post. Jay

[JayCT]

Originally Posted by BobNJ1960

Rocky Hill btw was actually a Pa plant relocated to Ct long ago.

Where did you get that? Henkel bought Loctite in 1997. Loctite adhesive was developed in a laboratory at Trinity College in Hartford in 1953. Loctite built what became Henkel’s North American headquarters and Adhesive Division headquarters in Rocky Hill in 1994. It’s a beautiful 163,000 square foot building set on 50 acres in the Corporate Ridge Executive Park in Rocky Hill. Jay

https://en.wikipedia.org/wiki/Loctite

[BobNJ1960]

Originally Posted by JayCT

Where did you get that? Henkel bought Loctite in 1997. Loctite adhesive was developed in a laboratory at Trinity College in Hartford in 1953. Loctite built what became Henkel’s North American headquarters and Adhesive Division headquarters in Rocky Hill in 1994. It’s a beautiful 163,000 square foot building set on 50 acres in the Corporate Ridge Executive Park in Rocky Hill. Jay

https://en.wikipedia.org/wiki/Loctite

not sure. I saw a Pa site linked with Henkel last night (did not save the link).

At its labor intensive peak, Loctite had several thousand staff, and many plants, so it may simply have been one of them. I saw interesting history elsewhere on them. Loctite asked Henkel to buy 35% of it decades back to avoid an Allied Signal takeover. Henkel bought the rest in a friendly bid, when the industry was consolidating.

Sadly, friendly takeovers the last few decades are few and far between.

[masssachoicetts]

Lego leaving Enfield for Boston in 2025 and taking 740 employees with them.

Big L for the Hartford/Springfield area. Time to invest in proper urban planning and adequate public transportation.

[okbymeman]

Originally Posted by masssachoicetts

Lego leaving Enfield for Boston in 2025 and taking 740 employees with them.

Big L for the Hartford/Springfield area. Time to invest in proper urban planning and adequate public transportation.

The people in that area will never do it. They just don’t get it. They will watch all of their employers leave for higher-taxed states and then claim it is because of CT taxes.

[Comp625]

Originally Posted by masssachoicetts

Lego leaving Enfield for Boston in 2025 and taking 740 employees with them.

Big L for the Hartford/Springfield area. Time to invest in proper urban planning and adequate public transportation.

There is truth in the saying "perception is reality." Despite our state's positive economic outlook (with the massive budget surplus), the perception will remain negative with Lego and Campbell Soup/Pepperidge Farms leaving on top of Sikorsky losing their top government helicopter contract. Within a span of a few months, Connecticut's longer term perceived outlook has become less favorable for business and residents alike.

[SteveM85]

Originally Posted by Comp625

There is truth in the saying "perception is reality." Despite our state's positive economic outlook (with the massive budget surplus), the perception will remain negative with Lego and Campbell Soup/Pepperidge Farms leaving on top of Sikorsky losing their top government helicopter contract. Within a span of a few months, Connecticut's longer term perceived outlook has become less favorable for business and residents alike.

Millions of residents won't even notice or care.
Fairfielders tell me when GE left town HQ for Boston a few years ago there was talk of impending doom, property values plummeting and taxes increasing to offset the grand list. None of that materialized, in fact barely anyone noticed and prop values have since skyrocketed.
Sikorsky still has some 20-30 years worth of orders

[BostonBornMassMade]

Originally Posted by Comp625

There is truth in the saying "perception is reality." Despite our state's positive economic outlook (with the massive budget surplus), the perception will remain negative with Lego and Campbell Soup/Pepperidge Farms leaving on top of Sikorsky losing their top government helicopter contract. Within a span of a few months, Connecticut's longer term perceived outlook has become less favorable for business and residents alike.

At some point, leadershi[ in Connecticut needs to accept the fact that it's competing with Boston and NYC, as well as MA, and NJ as states.

In this region of the country simply having lower housing prices will not cut it. Wages still need to be high regardless of what the housing costs are so it's not advantageous from a business POV.

In terms of lifestyle, CT has to come up with a way to offer something the others don't. That doesn't mean you need a sexy city or sports team or something flashy but maybe find a way to make education cheaper, outdoors more accessible, and development easier, - something substantive that makes a big difference in people's lives vs the other states. Leverage pre-existing assets that you might share iwth NJ and MA but they don't fully utilize. Optimize something and create an identity CT. So much of what the businesses talk about is "attracting workers" not just the education/talent pool.

If attractive enough CT could 100% become a desirable option for recent Boston area grads.

[BostonBornMassMade]

Originally Posted by SteveM85

Millions of residents won't even notice or care.
Fairfielders tell me when GE left town HQ for Boston a few years ago there was talk of impending doom, property values plummeting and taxes increasing to offset the grand list. None of that materialized, in fact barely anyone noticed and prop values have since skyrocketed.
Sikorsky still has some 20-30 years worth of orders

Its funny- someone in the MA forum doesn't want Lego to come because its too much success.

I think there's an attitude in New England of resisting change and wanting to remain small-scale but we've long since become a highly urbanized, developed, interconnected region that is integral to a larger NE Megalopolis. Our small town Puritan roots are not really helpful or modern at this point. Albeit its great for tourism and matter in terms of culture...CT should be striving for more IMO, and MA should be doing a better job at accommodating job and population growth.