GE Plans To Downscale, Will Reimburse State For Relocation Package

BOSTON (CBS) - General Electric is scaling back plans for its Boston world headquarters in the Seaport and plans to reimburse the state of Massachusetts for the incentives it used to woo the company from Connecticut.

GE's 2.5-acre property on Necco Street was supposed to be developed into a new headquarters and create 800 jobs. The complex was intended to involve two buildings that were once part of the New England Confectionary Company and include a new 12-story building.

Instead, GE will reimburse MassDevelopment and the state for costs and expenses associated with the NECCO Court project. Once the properties have been sold, the agencies will get $87,367,614 from the proceeds to include payback for the MassWork grant funds used by MassDeveloment to purchase the property. It will also cover the money invested to make the buildings habitable.

Any profits for the sale will be split between the state and GE.

"The Baker-Polito Administration is proud that General Electric chose to relocate the company's World Headquarters to Massachusetts and looks forward to GE's ongoing contribution to the growing innovation economy. The Administration together with MassDevelopment reached an agreement with GE for the company to fully reimburse the Commonwealth for the cost and expenses associated with the Necco Street project and the Administration looks forward to working with GE as the company grows its World Headquarters here in Boston." Lizzy Guyton, a spokeswoman for the governor, said in a statement.

GE has approximately 5,000 workers in Massachusetts. It plans to keep its headquarters in Boston and lease space in two of the buildings up for sale.