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February 9, 2018

Amazon HQ2 in Mass. could require legislation, Baker says

SHNS Gov. Charlie Baker has floated the idea of legislation to help Amazon build its HQ2 in Massachusetts.

Amazon doesn't quite fit into the state's current set of job-boosting programs, according to Gov. Charlie Baker, who raised the idea Thursday of legislation tailored to suit the tech giant's needs.

"I would expect that if we were to do something with respect to Amazon it would probably be more of a standalone thing than something we would do as part of a general economic development bill because they're really, they're completely different animals. Amazon is an organization that's looking to do 50,000 jobs, perhaps in one location, over a very long period of time," Baker told reporters after a speech to the Greater Boston Chamber of Commerce. 

Baker and House Speaker Robert DeLeo are interested this year in passing an economic development bill, an idea that probably has appeal to lawmakers who are seeking re-election in the fall. The bill would likely make adjustments to state programs aimed at assisting businesses, and creating or preserving jobs.

The governor plans to file an economic development bill this month, Baker announced during his state of the state address last month. 

The state's economic development programs assist businesses spread throughout the state, the governor said.

"A lot of this other stuff involves economic development initiatives and projects and housing and downtown development projects that are all over Massachusetts," Baker said. "I mean it's literally hundreds of projects, and if you add some of the ones that involve transportation as well, you're probably up into the thousands of projects over the course of several years."

The governor said, "I think Amazon is very different than sort of the traditional economic development bill."

The nation's economy is in the midst of a long upswing out of the depths of the economic collapse about a decade ago, and the Bay State's unemployment rate ended 2017 at 3.5 percent.

Touting the addition of 180,000 new jobs in Massachusetts "over the course of the past few years," the governor on Thursday also said the state's economy has a "ton of momentum with or without Amazon."

Amazon's announcement last year that it would publicly seek a new second headquarters attracted 238 bids from local officials around North America. In January the Seattle company whittled down its list to 20 finalists. The bid from Boston and Somerville was the only proposal from New England to make the cut, and Toronto is the only city outside of the United States that is in the running.

Massworks infrastructure grants are one of the state's go-to tools for encouraging business growth, and the governor on Thursday announced some new areas in Boston where that money would be spent.

The $200 million mixed-use redevelopment of South Bay in Dorchester – which includes a new cinema, hotel and new restaurant, commercial space and housing – will be the recipient of a $1.2 million MassWorks grant for the construction of a new road, utility connections and landscaping, according to the administration. The 10 acres along the expressway is "currently blighted and underutilized land," Baker said Thursday.

A $3 million grant will fund the construction of roads and subsurface work at Olmsted Green in Mattapan, enabling the construction of 268 new housing units, including 109 affordable units, according to the Baker administration. 

Another $2.5 million grant will help convert 25,000 square feet of storage space in the South Boston Seaport into a second floor for the MassRobotics Innovation Center, which is expected to support the creation of 3,000 new jobs and $1 billion in venture capital funding over the next decade, according to the Baker administration.

"This one is one of a series of initiatives that we've been pursuing in the robotics space," Baker said Thursday.

Seventy-six units of new housing, including 33 "deeply affordable units," along Melnea Cass Boulevard in Roxbury will be supported by a $725,000 grant, according to the administration. The work will "complement" the transformation of the Whittier Street Apartments, which Boston is undertaking with the support of the U.S. Department of Housing and Urban Development.

 A year after taking office, Baker and Boston Mayor Marty Walsh convinced General Electric to move its headquarters from Connecticut to Boston, offering a package of infrastructure assistance from the state and tax breaks from the city for a combined value of around $145 million.

Since then, GE's former chairman and CEO Jeff Immelt left his post – taking the reins of Watertown-based Athenahealth's board this week. 

"Jeff shares our vision for more connected, efficient, and human-centered healthcare; and like us, believes a platform-oriented business and technology strategy is fundamental to executing against that vision," said Athenahealth CEO Jonathan Bush in a statement. "His appointment as chairman is one of many important steps the Company has taken over the past year to enhance the Board and management team, as well as to strengthen and focus our operational and go-to-market strategy."

GE is now led by John Flannery and the globe manufacturer has also run into financial straits since announcing it would move its headquarters to Boston, spurring talk of a potential breakup.

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