GE announced on Thursday that they will be purchasing the 2.5 acre property located in the Fort Point neighborhood of South Boston from Proctor & Gamble at 5 and 6 Necco Way. Great news for the neighborhood right? Well, how is this Fortune 500 (ranked 8th) company getting free rent for 20 years in one of the hottest areas of the city?
As part of incentive to encourage GE to Boston, in addition to a local property tax relief up to $25 million, GE is also eligible for free rent for up to 20 years if any properties that GE will reside in is owned or leased by the Boston Redevelopment Authority. Well, according to Boston Magazine, the BRA has come into possession of the building initially reported as being Proctor & Gamble property.
Hmmm….seems like a little bit of shenanigans going on here. So Proctor & Gamble is selling the property to the BRA who can in turn give GE free rent for 20 years. If you want to read the full five page document with all the benefits of this sweet deal including helipads, giant tax breaks and evidently free rent too, you can read this piece in the Boston Globe.
How does GE coming to Boston benefit the residents of Boston is what we want to know? It seems like the City of Boston is making the investment in GE not the other way around. Just our 2 cents!
Let me see if I have this right. GE employees, who are moving to Boston of their own free will, are getting mortgage relief from the city, and the company itself is getting tax relief and free rent. City employees, who are required to live in the city as part of the rules and ordinances of city government, get no relief. More benefits for outsiders. So much for “taking care of your own”.
The investment is relative to the value that GE will create for the city and state. Yes a big dollar amount up front but the opportunities for development/redevelopment, subsequent rise in Southie property values and exponential job creation far outweigh a rent payment GE would be making monthly.
Change is a good thing everyone! Southie is a gem that’s been discovered, let it flourish.