The Boston Globe | By Jon Chesto
December 15, 2016
Procter & Gamble has completed a deal to transfer 2.4 acres alongside the Fort Point Channel for General Electric’s new headquarters. In return, P&G will pocket $83 million.
The property off Necco Court has been divided in two. State agency MassDevelopment bought more than an acre, including two vacant brick buildings on that land, for $57.4 million, according information provided by GE. The company, meanwhile, spent $25.6 million for the remaining portion, where the industrial giant plans to build a 12-story headquarters structure overlooking the channel.
The reason for the split: MassDevelopment is using state grant money to buy its portion and to redevelop the two brick buildings. The grant program can only distribute funds to public agencies. Governor Charlie Baker pledged $120 million in state funds for the headquarters project, as part of an effort to persuade GE to relocate its headquarters to Boston from Connecticut. State officials recently increased the amount to $125 million, to include $5 million for legal fees and other transaction costs.
Mayor Martin J. Walsh also dangled a sweetener to bring GE here: the promise of $25 million in property tax breaks from the city, over a 20-year period.
The land sits at the northern edge of P&G’s sprawling Gillette campus. Much of it, aside from the old brick buildings, is currently part of a bigger parking lot.
GE has leased the space in the two buildings, which together total slightly more than 100,000 square feet, from MassDevelopment. GE spokeswoman Susan Bishop said her company will assume much of the costs related to rehabbing the two buildings in lieu of lease payments, and will be responsible for their operations and maintenance costs.