Top Business Stories Of 2010
Remember when economists predicted we'd be out of the recession by the middle of 2010? Well, technically that may be true, but local and national unemployment rates continue to hover just below 10 percent. Despite the trials and tribulations of the year, there were clear signs that Central Massachusetts has entered recovery. Below is a roundup of the highlights of the year that was.
Downtown Worcester's Savior
Who would have thought that an insurance company would become the key economic development force in New England's second largest city? As improbable as it may sound, that is indeed what occurred earlier this year when Worcester-based Hanover Insurance Group took over development of the languishing CitySquare project. The project had stalled under the oversight of Boston-based Berkeley Development. But with Hanover's infusion of capital, demolition began within months. Unum officially signed on as an anchor tenant for the project, promising to move its 700 local employees to a new building at the completed CitySquare project.
Beacon Hill Says No Dice
For about the first half of the year, the biggest question on the minds of Beacon Hill legislators was: Casinos or no casinos? Central Massachusetts could have been a major player in the debate had the Legislature allowed resort-style gaming. A Colorado developer even got local support to build a casino and hotel in Milford. But, state officials never adopted the gaming legislation, putting an end to the debate for the time being.
Republicans Take Senate Seat
It was called Ted Kennedy's seat. But it turned out to be less of a Democratic stronghold than most predicted. Upstart Republican state senator Scott Brown won a January special election for the Massachusetts Senate seat held by the late Kennedy, who died in 2009. Brown beat Attorney General Martha Coakely, a Democrat who was viewed by many as a lock for the seat. But Brown rode a wave of resentment toward government, and carried a majority of Central Massachusetts communities to win.
Health Care Costs Get Political
While federal health-care reform was just getting approval in Washington, D.C., Gov. Deval Patrick entered the fray, ordering that the state reject almost all of the rate increases requested by health insurers doing business in the Bay State. The bold move brought attention to the plight of businesses being crushed by mounting health insurance costs, but also alienated insurers, including Worcester-based Fallon Community Health Plan. More moderate rate increases were eventually approved, but small businesses continue to complain about the costs.
Genzyme Troubles Mount
Biotech giant Genzyme had a tough 2010. The Cambridge-based company, which has major operations in Central Massachusetts, suffered serious losses due to a plant shut down stemming from a virus infection. As the losses mounted, the company then started to face pressure from activist Carl Icahn and an $18.5 billion hostile takeover bid from France's Sanofi Aventis. CEO Henri Termeer has refused to negotiate with Sanofi saying the company is not for sale.
Netezza Corp. In Billion-Dollar Deal
In one of the biggest M&A deals locally, IBM bought Marlborough Netzza Corp. for an impressive $1.7 billion. The deal was announced in September and finalized in November. Netezza, which makes data storage equipment and analytics, has had a longstanding relationship with IBM. While big corporate takeovers can often spell disaster for the local economy, the deal hasn't resulted in any real estate vacancies - Netezza upped its presence in Marlborough by 86,000 square feet in July.
CSX Expansion Rolls Along
Heralded as a major economic boon to the city of Worcester and the entire Central Massachusetts region, CSX, the national freight carrier, has plans to make Worcester the company's New England hub. Plans call for CSX to construct a $125 million expansion of its Franklin Street area rail yard and to buy more than 20 acres of land in the city. As another part of the deal, there are plans for increased commuter rail service between Worcester, Framingham and Boston.
MathWorks Expansion Breaks Ground
There were signs of an economic recovery in 2010. After years of planning, The MathWorks, the computer software design company, broke ground on a $100 million expansion of its Natick headquarters in June. CEO Jack Little said he explored numerous options to support the company's growth, including possibly moving out of state or closer to Boston. But, thanks to a $1.3 million state grant, the company is constructing a four-story building and parking garage to accommodate the 600 new employees the company plans to hire in the coming years.
Onshore Wind Farm Proposed In Douglas
The state's largest onshore wind farm is set to be constructed in Douglas after town officials approved the project in the summer of 2010. American Pro Wind of Weymouth is installing an 11-turbine, $75 million farm in a wooded area directly next to Douglas State Forest. The project is expected to produce enough power for Webster and Douglas combined and it qualified for a $19 million grant from the federal government.
Schultz Leaves FCHP For Harvard Pilgrim
One of the most recognizable corporate leaders in Worcester was lured away to Boston this year. Eric Schultz, who had been president and CEO of Worcester’s Fallon Community Health Plan, announced in February that he would be taking over the top spot at rival HMO Harvard Pilgrim Health Care. Schultz filled in the spot left vacant by Charlie Baker, who left the post in a failed bid to be governor of Massachusetts. Patrick Hughes is now the chief executive at FCHP.
Top 10 headlines on WBJournal.com
1. Meet The 2010 40 Under Forty Winners
2. Chasing Martha Coakley
3. Saltus Press Closes
4. Bernie’s Appliance Stores Going Out of Business
5. Empty Tables: Restaurants feel sting of medical gift ban
6. College Of Pharmacy To Buy Crowne Plaza Property
7. Evergreen Solar Pursues Reverse Stock Split
8. Shop Talk: Q&A with Dr. Eric von Hofe, Antigen Express
9. Worcester Biotech Takes On TheStreet.com
10. Move Over Olive Garden: New Italian Chain Comes To Central Mass.
Top 10 e-mail to a friend headlines
1. College Of Pharmacy To Buy Crowne Plaza Property
2. Saltus Press Closes
3. Northborough Excavation Firm Closes
4. State Gets Tough On Premium Hikes
5. Move Over Olive Garden: New Italian Chain Comes To Central Mass.
6. BJ’s Moving To Former National Grid Complex In Westborough
7. Northborough Crossing To Open In One Year
8. WPI To Build New Gym With $56M In MassDevelopment Bonds
9. Up To $50K For Struggling Mass. Homeowners
10. Lessons From Hollywood - How not to make the same mistake as Facebook’s founders
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