The Big One
A breakdown on the day’s biggest Inno story.
Lucy: Who’s in the mood for a story that’s a cocktail of tax incentives, local real estate and Amazon moves?
Our sister publication BBJ reported today that the e-commerce giant was approved to receive up to $10M in property-tax breaks to expand in Boston’s Seaport District.
Amazon’s expansion in the Seaport, which is unrelated to its ongoing search for a second headquarters, became public at the end of February, thanks to a filing with the city of Boston. BBJ reported that the company was in talks with the developer behind the Seaport Square project to lease all the space in a 18-story office building, or “enough space for 2,000 or more new employees.”
Today’s development adds to the picture that the company will receive a $5M reduction in property taxes over a 15-year term for a 430,000-square-foot office. Additional $5M property-tax reductions could be granted should Amazon choose to lease an adjacent building, which would also house 2,000 employees.
The good news? If Amazon ends up leasing both Seaport buildings, it would be required to create and retain a combined 4,000 new jobs “in or within 25 miles of the city area, but all within the commonwealth of Massachusetts,” the agreement states.
Now, a big move like this makes HQ2 come to mind, especially since Amazon asked cities competing to land the company’s second headquarters to include incentives in their initial bids. Boston’s bid didn’t include specific tax breaks. Thanks to the $10M in property-tax breaks, Amazon now has something significant to file under the label “Boston incentives.”