On Wednesday morning, Mayor Marty Walsh mentioned in his address to the Greater Boston Chamber of Commerce that the city is helping locally-based LogMeIn expand its global HQ here in The Hub as opposed to alternate locations. With the help of the Boston City Council, LogMeIn was awarded a 13-year incremental real estate property tax for 13-years at its Summer Street location.
Back in September, BostInno’s Galen Moore reported that LogMeIn was looking to more than double its office space by taking over a neighboring property. The order dispatched by Mayor Walsh to the City Council approving the tax break confirms that LogMeIn will soon occupy both 320 Summer Street and number 333.
Massachusetts Tax Increment Financing Agreements, like the one between Boston and LogMeIn, are an incentive to keep companies in our backyard. The agreement is reached due to a companies job creation. LogMeIn hopes to grow its employee base by another 450 over the next five years, whom the City of Boston encourages to be residents. The company currently employes 350.
Per the Mayor’s order, construction on LogMeIn’s new digs will cost approximately $37.7 million and include updates to the exterior, interior, new signage, new security and HVAC systems.
According to the Boston Redevelopment Authority, the exemption can last as long as 20 years and the business can “be eligible for a personal property tax exemption for existing and new property” as well. The exemption is based on a percentage of the value added through new construction or significant improvement.
Senior Director of Corporate Communications Craig VerColen confirmed with BostInno that LogMeIn will save $2.5 million over the life of the lease, which the company is in the process of finalizing with the landlord. Per the tax break, the lease is 13-years.
The hope is to move employees into the additional space by 2016, pending any construction setbacks.
“Driving additional expansion is our Internet of Things investments,” said VerColen. “Our desire to expand and stay in Boston is also around that.”