After more than three years of consideration, General Electric is relocating its headquarters to Boston, according to a Wednesday press release from the office of Massachusetts Gov. Charlie Baker.
The move will begin in the summer of 2016 and will be completed by 2018, when the company will anchor its headquarters in Boston’s Seaport District. Employees will be assisted in finding temporary living quarters until the transition is complete, the release stated.
Baker expressed enthusiasm in the release about GE’s relocation and said it will provide commercial progress and new opportunities in Boston.
“Our administration welcomes GE’s decision to take advantage of the unique resources that our state has to offer, ranging from our innovative economy to top universities,” Baker stated in the release. “ … In addition to adding hundreds of high-paying jobs to our state, we look forward to partnering with GE to achieve further growth across a spectrum of industries.”
The relocation will open approximately 800 jobs in the Greater Boston area and will allow industrial and economic growth in Massachusetts.
In light of these benefits, the state of Massachusetts is offering monetary incentives to GE, including $1 million in grants, a funded innovation center, a relocation team to assist employees, and up to $25 million in property tax relief, according to the press release.
Up to $120 million of the incentives offered will be in the form of capital spending on public infrastructure projects, according to Paul McMorrow, a spokesperson for the Executive Office of Housing and Economic Development. McMorrow said these funds could be put toward projects that will improve public infrastructure and allow GE’s expansion and relocation.
“This whole notion of using public infrastructure to unlock private economic development is something that we do all the time,” McMorrow said. “The potential range of work that could be performed includes water and sewer and electric utilities — it includes demolition and site preparation. It potentially includes public parking.”
McMorrow explained that Massachusetts is not giving the money directly to GE. Rather, it is funding the City of Boston in a way that will allow GE’s relocation.
“An important point is that the state is not cutting a check to GE,” McMorrow said. “This is a financial transaction between the state and the City of Boston. The public infrastructure will enable GE to make [its] expansion move, but it’s going to benefit the public at large.”
McMorrow also said the economic benefits that GE will bring to the Greater Boston community by saying that the relocation will increase research and development along with other economic aspects.
“The spillover effect is the tech ecosystem,” McMorrow said. “There are the typical administrator functions that you see in every type of headquarters, but the bulk of the jobs are really going to be cutting edge R and D across the whole host of emerging technologies.”
Jennifer Erickson, a spokesperson for GE Corporate, wrote in an email that the relocation would bring a partnership between GE and Boston’s wealth of students.
“Boston’s schools offer GE a pipeline of talented young workers and a rich network of researchers, academics, students and thought leaders to collaborate with on R and D,” Erickson wrote in an email. “Massachusetts as a whole boasts more members of the workforce with a bachelor[’s] degree than all but one other state and ranks first per capita in spin-out companies from research institutions.”
Several residents expressed excitement at GE’s decision to move to Boston.
Abigail Jeffers, 31, of Allston, said she was pleased about the economic growth of Boston.
“Boston is truly a great city, filled with economic opportunities,” she said. “I think it’s really great that companies are realizing the benefits that coming to Boston has.”
Elizabeth McNeill, 24, of Brighton, agreed that GE’s move would be great for college students within Boston.
“This city is filled to the brim with colleges and with brilliant students, she said. “I think it’s an awesome opportunity to increase the job market in a place that has so many available workers.”
Deann Plog, 47, of Roslindale, said the economic development would be good for the city.
“Whenever businesses move to Boston, it betters the economy,” Plog said. “I’m really glad that Boston has that opportunity right now.”
Kennedy serves as a city associate for the Daily Free Press. A freshman, she studies English with a minor in philosophy. As a journalist, Kennedy shows special interest in crime and local politics. You can follow her on Twitter at @stellarkenn.
