General Electric is going to be relocating its headquarters from its current location in Fairfield, Connecticut to Boston in this summer as per Jeff Immelt’s announcement this Wednesday.
GE had earlier said they were thinking about shifting in June 2015 since Connecticut wanted to raise business taxes but they have now finally decided to leave their headquarters after thirty years. Immelt said that they wanted to be in the middle of the ecosystem which shared their aspirations.
GE’s senior director for external communications, Jennifer Erickson, said that the company was going to be shifting its headquarters as well as eight-hundred employees to Boston so they can pursue their future as the leading digital industrial company in the world.
Charlie Baker, the governor of Massachusetts and Dan Malloy, the governor of Connecticut released statements with regard to this move but their tones were quite different.
Malloy said that Connecticut had more good days than the bad ones and they were disappointed just like many others in Connecticut. The company has made no announcement regarding the number of jobs which are going to be lost in Connecticut because of this move.
Baker was very positive in his statement though saying that apart from adding hundreds of jobs for the state, they wanted to partner with GE to further their growth in a number of industries.
But even though Boston has a lot of innovative spirit and technological talent to offer, it is difficult to look beyond the financial incentives being offered as just a contributing factor.
Boston has offered the company $ 120 million in incentives as well as $25 million worth of tax savings which will make this $45 million deal among the most expensive in the history of the state.
Between the costs which are being offset by Massachusetts, Boston and the revenue that will be generated from the corporate compound’s sale as well as the sale of offices at 30 Rockerfeller Plaza in New York City, GE has said that they aren’t going to be suffering any financial impact because of this move up north.
Boston even pledged improvements in transportation around the Seaport area where GE is going to be relocating as well as a $5 million innovation center for Massachusetts innovators, GE employees, students, teachers, etc. to collaborate on projects in the future.