Behind The Sound Bite: TJX Buying Fidelity Campus
A year ago, when Fidelity Investments announced it would vacate its Marlborough campus and take 1,100 jobs with it, some doubted another tenant could be found for the two Puritan Way buildings, which total 700,000 square feet. But those doubts were quelled this month when Framingham-based TJX Cos. confirmed it had reached an agreement to buy the property and relocate employees there. In proposing a tax increment financing deal to the Marlborough City Council this month, Mayor Arthur Vigeant wrote "This represents a potentially significant step forward for the city in terms of our economic development and job creation initiatives."
How much will TJX spend on the new property?
The company would invest $117.2 million to purchase and renovate the property. No property records have yet been filed that reflect a purchase price, but The Boston Globe, citing an anonymous source familiar with the negotiations, reported that the price would be $72 million.
The company has said it would create 75 new jobs in Marlborough.
Why does TJX want to move to Marlborough?
The company, which owns TJ Maxx, Marshall's and other retail brands, has been relatively tight-lipped on details, but a draft 20-year tax break agreement with city officials offers some insight into TJX's thought process: "Due to TJX's consistent, year-over-year growth, the company has outgrown its current headquarters in Framingham," read an application to the state to designate the property an economic opportunity area.
What about taxes?
Property tax rates in Framingham and Marlborough also shed slight on the company's potential thought process. In Framingham, owners of commercial and industrial property, such as TJX's, pay $38.05 per $1,000 in assessed value. In Marlborough, the rate is $29.04. TJX also stands to save big through the TIF plan, which Vigeant presented to the council March 12. The draft proposal outlines a 20-year deal that offers a 100 percent discount for fiscal years 2015 and 2016. The discount gradually declines through 2034.
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