GE moving global headquarters to Boston

New York, Rhode Island, Georgia, and at least eight other states were vying for the project, but in the end General Electric Co. has elected to relocate its global headquarters from Fairfield, CT to Boston, according to news reports.

MA is providing $120 million in grants and Boston is providing $25 million in property tax relief, according to the office of Gov. Charlie Baker.

GE was one of several major corporations that complained loudly this past June when legislators and Malloy agreed on a new two-year budget that increased state taxes by more than $1.3 billion over the biennium.

It’s clear that Malloy had been prepared for the bad news, as about 90 minutes later, he was at at Pegasus Manufacturing in Middletown, a firm that has grown with help from his administration and that coincidentally manufactures jet engine parts for Rolls Royce and GE. It sounds like the combination of Boston’s educational institutions and tech and life sciences businesses-along with state aid and tax incentives, of course-swung the decision in Boston’s favor.

GE said the relocation would have no significant impact on its finances, citing incentives provided by MA and Boston.

The Wall Street Journal and the Boston Globe are reporting this afternoon that the company plans to move its headquarters to Boston.

There has been speculation that GE executives’ positive impression could still lead them to open an office or division in Rhode Island, particularly if its headquarters is in nearby Boston rather than Fairfield.

That said, it’s no secret that Cuomo was trying to lure GE to NY, and his efforts might explain why the company’s move to Boston was portrayed as a big loss for both the state and the governor. “Connecticut’s piece of the corporate pie remains strong, and our state’s ongoing commitment to work closely with business leaders to encourage future economic growth will ensure we continue to be a great place to live, work, and raise a family for years to come”. It will move to temporary quarters by next summer, and permanently settle about 800 workers in the Seaport district by 2018, GE said. It’s unclear how many will remain in the state.

The key question inside the walls of GE’s corporate headquarters?

Mr. Immelt said, that the Boston region is “an ecosystem that shares our aspirations”.

“I think they’re going to do what they’re going to do, that’s what I think”, he said Monday. The new office will employ about 200 administrators and 600 “digital industrial product managers, designs and developers”, GE said.

It is not a new problem for GE – in the past year, GE has been absorbed in the spinoff of Norwalk-based GE Capital, finding new roles for key talent in varying units being snapped up by banks.

GE aspires to be the most competitive company in the world. “It’s been expressed to me by a couple of people at GE that they’ve been impressed by what the governor has done with state employee liabilities”.