Who gets what from Malloy’s sweetest deal
At press time, eight companies have become part of the First Five Program, an initiative proposed by Gov. Dannel xanax online. Malloy to offer financial incentives to the first five companies each creating at least 200 new full-time jobs in Connecticut over two years, or investing $25 million in the state and creating 200 new jobs over five years.
Malloy wanted the program to bring new companies to Connecticut and to retail businesses that already are in the state, encouraging them to maintain and grow their current job levels. The General Assembly passed legislation creating the First Five Program last year, click here Malloy signed the bill into law in July 2011.
The program — funded through the state’s Department of Economic ‡ Community Development — the was variously redesignated First Five Plus, then Next Five, as companies beyond the initial quintet of businesses were added. Below is a brief assessment of each of the corporate beneficiaries of the program.
Business Activity: Global health service and financial company whose U.S. subsidiaries provide a variety of health services, including medical, dental, pharmacy, vision and behavioral health-care benefits. It also offers group life, disability and accident insurance. Services are offered in 29 countries and jurisdictions throughout the world.
Annual Revenues: $25 billion
First Five Deal: Cigna will establish its headquarters in Bloomfield and will add a minimum of 200 jobs within two years, bringing the number of jobs the company provides in the state to more than 4,000, and spend at least $100 million in Connecticut. The state will provide a minimum of $47 million in incentives, with the amount increasing as more jobs are created. The initial investment includes: a $15 million, zero-interest, forgivable loan; $2 million in grants that can be used for worker training or relocation costs; and tax credits up to 70 percent of the company’s corporate income tax from the fourth through tenth years (estimated value $30 million).
Business Activity: Multinational sports entertainment company encompassing a host of television, radio and web-based enterprises. The company is owned by ABC Inc. (majority) and the Hearst Corp.
First Five Deal: In exchange for expanding its Bristol sports media complex and creating at least 200 new full-time jobs over five years, ESPN will receive a $17.5 million, ten-year loan and up to $1.2 million for a job training grant program (the actual amount will depend on how many jobs are created). Also, expected sales and use tax exemptions on construction materials and capital equipment are valued at up to $6 million.
Company: NBC Sports Group, NBC Universal
Business Activity: Operations include NBC Sports, NBC Olympics, NBC Sports Digital, NBC Sports Network and the Comcast Sports Management Group.
First Five Deal: The company will centralize its Northeast operations in new studios and offices, which it will create in Stamford at the 32-acre site of the former Clairol factory. It pledges create 450 new jobs, with more expected as future growth takes shape. Assistance in the form of a 1.0-percent, $20 million loan from the state would be forgiven if the jobs are created and the company spends at least $100 million in the state.
Company: Alexion Pharmaceuticals
Location: New Haven
Business Activity: The biopharmaceutical company manufactures products to targeted to disorders that are rare and life threatening.
Annual Revenues: $950 million
First Five Deal: Alexion will move its global headquarters to New Haven, relocating an existing Cheshire-based workforce of more than 350 employees to the Elm City. The company will build a new facility in New Haven’s Downtown Crossing development at 100 College Street. The $100 million construction project will include office, research retail and parking space. The state is providing the company with a one-percent, ten-year $20 million loan, deferred for five years and totally or partially forgiven if 200 to 300 full-time jobs are created; tax credits of up to $25 million; and a $6 million grant for laboratory equipment and construction.
Business Activity: CareCentrix is a benefits management company focused on managing home-based care by providing and coordinating services such as home nursing, home infusion, home medical equipment and sleep testing. Affiliated centers and home healthcare providers are located throughout the country.
First Five Deal: The company will expand and move its headquarters from East Hartford to Hartford, an estimated $86 million project. The company also will keep all 213 current employees and create 290 more jobs within five years. It would receive from the state up to a total of $24 million in grants over five years.
Company: Sustainable Building Systems
Location: North Haven
Business Activity: A new business, SBS is a partnership between Diverse Services Group of Arizona and the Weeks Group, an Australian building and manufacturing company. In North Haven, SBS will manufacture sustainable building panels for hotels, homes, the military and other users.
First Five Deal: SBS is expected to create a total of 408 jobs in Connecticut within four years, with initial positions targeted to 50 local employees who will be trained in the various areas of manufacturing. The company is expected to spend some $97 million to establish itself in Connecticut. In exchange, the company will receive a two percent-interest, $19.1 million loan over ten years and three installments, provided job-creation expectations are met. Funds are intended to be used for machinery and equipment purchased.
Location: Stamford, Hartford and Wilton
Business Activity: Provides professional services including tax, consulting, financial advisory and audit to various industries.
First Five Deal: The company will establish a minimum of 200 and up to 500 new jobs by expanding its Stamford, Hartford and Wilton operations, a project estimated at $16 million. Deloitte also pledges to maintain its current 1,153 state jobs. Connecticut will provide the business with financial aid that includes: $9 million, providing all current jobs are kept and 200 more established by the end of 2013; an additional $2.5 million if 1,353 jobs are retained and 150 more positions are created by the end of 2018; and another $5.5 million by that same time period, the end of 2018, for creating 150 more jobs.
Company: Bridgewater Associates
Business Activity: Bridgewater manages $130 billion in worldwide investments for clients that include foreign governments, central banks, public and corporate pension funds, charitable foundations and university endowments.
First Five Deal: The company would relocate its Westport-based operations to Stamford, a move that entails an estimated $750 million capital investment. Bridgewater also would create up to 1,000 jobs.
The state would provide up to $115 million in financial assistance, including a $25 million forgivable loan, at a one percent rate, to help construct a new facility; up to $5 million in grant funds for job training; another grant of up to $5 million, applied to installing alternative energy systems; and tax credits of up to $80 million.
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