"Financial services companies represent a $24-billion industry in Boston," Menino says in a prepared statement. "…and I have made it a priority that we focus on ways to strengthen and grow this sector of our economy." The mayor plans to use tax increment financing and other relief that will assist JP Morgan as the firm's lease at 73 Tremont St. comes to an end. That lease expiration prompted JP Morgan to pursue potential relocations out of the city, supposedly with a concentration on the South Shore, in a strategy that was advancing steadily before the group abruptly altered course and began negotiating a move to Seaport Center in the city's Seaport District. JP Morgan's change of heart was first reported by GlobeSt.com.
[IMGCAP(2)]Although an agreement is not yet in place for Seaport Center, Menino spokesperson Jessica Shumaker tells GlobeSt.com that the mayor wanted to get his incentive package moving to help demonstrate the city's support for JP Morgan. The BRA board gave its blessing yesterday afternoon, and Menino is now urging the Boston City Council to deliver its needed approval as well. Whether the backing will be there remains unclear, but the concept did get a boost from Boston's top property assessor, Ron Rakow. Not only would JP Morgan's occupancy at Seaport Center alleviate a big piece of vacancy, Rakow says it "will send a strong message to others that the waterfront neighborhood is a prime location for further expansion of the financial services industry in Boston."
Under the plan, JP Morgan and the city would apply jointly to the Massachusetts Economic Assistance Coordinating Council for designation as a certified project, a process that would make the company eligible for tax and financing benefits from the state and property tax incentives from the city. At stake by Menino's count are 725 existing positions and an estimated 400 new jobs that JP Morgan anticipates will be created over time. JP Morgan operates its Global Funds Services division from 73 Tremont St. and the nearby One Beacon St. At this point, the firm will keep its Beacon St. operations.
In a prepared statement, a JP Morgan spokesperson says the mayor's proposal "would make it attractive for us to continue our growth in the city," and says the company has considered several options "in and outside of the Boston area and are hoping to sign a lease soon." The firm does not identify any specific locations, but Shumaker confirms that the company is in talks with the Beal Cos. and Rockpoint Group, owners of Seaport Center. Calls to Beal and JP Morgan's brokers at Cushman & Wakefield were not returned by press deadline.
One intriguing element is the level of Menino's involvement, with some observers claming he initially reached out to JP Morgan upon hearing the firm was mulling a move beyond city limits. The JP Morgan spokesperson declined comment, while Shumaker says she is not sure who initiated the discussions, but she notes that the Mayor did acknowledge a proactive approach. Menino "said it is his job to sell the city and to keep jobs here," Shumaker relays, adding that, "there has been a lot of back-and-forth conversations."
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