Hide Transcript Show Transcript

WEBVTT state. Now, the company has scrapped plans for that new HQs-- and with the help of MassDevelopment , will sell the property to reimburse the state for 87 million in tax incentives. GE announced their massive expansion plan 2 years ago.. Broke ground in May 2017-- but since Then company has struggled.. Dropped from the DOW JONES after more than a century. A new CEO took the helm last October.. And has been aggressively streamlining the corporation. For Boston-- that means a revised plan of 250 jobs.. moving into 2 brick buildings- the former Necco candy factory. That's slightly more than the number of GE employees already based here. In a statement-- GE officials said "While changes in the company's portfolio and operating model will lead to a smaller corporate headquarters, we are fully committed to Boston and proud to call it home." GE has not and now will not receive any incentives from the city.. Mayor Walsh putting a positive spin on the situation .. Saying "General Electric chose Boston because it is a thriving city with a talented and diverse workforce,,, I look forward to our continued Partnership" The Governor's office.. Whic helped negotiate the plan to put the Fort Point property on the market .. Says it expects the sale price will easily exceed the money owed to the state.

Advertisement General Electric scraps plans for new headquarters building, will reimburse state for incentives State to receive $87 million or more Share Shares Copy Link Copy

More than two years after General Electric announced plans to move to Boston, the struggling company is scrapping plans for a new headquarters building. It plans to sell the property and use the proceeds to reimburse the state for grants and incentives used to lure the company to Massachusetts.GE and MassDevelopment have reached an agreement to sell the Fort Point Channel property, including the two former Necco buildings and the parcel on which GE had planned to build a 12-story office tower. Board members for MassDevelopment unanimously approved the plan Thursday. GE will be staying in Boston, however. The company said it plans to become a tenant in the two Necco buildings and move approximately 250 employees into the space. That's down from the 800 jobs GE had planned to bring to Boston. The company also pledged to continue its work on the planned public spaces on the property, which include the Harborwalk and a public dock. “We are looking forward to moving into our permanent headquarters space in the refurbished Necco brick buildings later this year," said Ann R. Klee, GE's vice president for Boston development and operations. "While changes in the company’s portfolio and operating model will lead to a smaller corporate headquarters, we are fully committed to Boston and proud to call it home.”Sale of the Fort Point Channel property is expected to net at least $87.37 million. According to Gov. Charlie Baker's office, that money will reimburse the state for MassWork grant funds used for the original purchase of the property and other investments in the refurbishment of the existing buildings. Any additional revenue from the sale will be split evenly between the state and the company, Baker's office said. GE's stock was worth about $28 in January 2016, when the company announced plans to bring its headquarters to Boston. The stock value dipped below $10 during trading Thursday. “The Baker-Polito administration is proud that General Electric chose to relocate the company’s world headquarters to Massachusetts and looks forward to GE’s ongoing contribution to the growing innovation economy," said Lizzy Guyton, Gov. Baker's communications director. "The administration together with MassDevelopment reached an agreement with GE for the company to fully reimburse the commonwealth for the cost and expenses associated with the Necco Street project and the administration looks forward to working with GE as the company grows its world headquarters here in Boston.”GE currently has about 5,000 employees in Massachusetts, which is roughly the same number it had before the move was announced in 2016.