Prudential to hire 275

[The Voice of Reason]

http://www.courant.com/business/hc-prudent...0,5460369.story

Now Prudential is investing $10 million in improving its space in the office tower and will lease two more floors

Prudential Retirement currently has 778 employees in Hartford

To avoid penalties, the company must have 988 full-time equivalents in Hartford by Dec. 31, 2012, and must have sustained an average of 988 for 12 consecutive months before that date, said Peter Lent, assistant executive director of the Office of Business and Industry Development.

These things are always vague and complex, but taken at its word, this is good for downtown.

[jcrc]

Prudential Retirement is adding 275 jobs in Hartford over five years and is expected to get a $4.6 million, 10-year state loan to help improve its downtown offices, the governor's office said Wednesday.

In addition, the Connecticut Development Authority's board approved a $900,000 exemption from the state's sales and use tax Wednesday to offset some of the cost of the construction work.

If Prudential meets the employment goal, the state will forgive $2 million of the loan.

The loan, which was in the works even before Prudential signed a new lease last year, will have a 1 percent interest rate. The loan is subject to approval by the State Bond Commission on March 28.

[The Voice of Reason]

Let's see

$4,600,000/275 = $16,727 loan per employee

$900,000/275 = $3272 exemption per employee

Prudential is not really hiring 275, the state is buying 275.

So maybe if we give Met Life $46 million in 1% loan and $9 million in exemption, they will keep their 2000+ people in City Place II?

[jcrc]

Voice of Reason, as a small business where credit and funds are hard to come by I managed to do OK, but I am seeing some of my neighbors really struggle. I couldn't help but wonder if the State offers the same kind of virtually no interest loan that 40% of the it will be forgiven and sales tax exemption to small businesses, will small business have more of a fighting chance? This reverse Robin Hood rob from everyone and give to the rich corporate welfare truly sucks.

On the selfish side, how does 275 additional workers benefit me? If I am being optimistic, additional 275 means 3 additional customer a day. Sure every little bit helps, but I take the interest free loan and tax exemption any day.

[The Voice of Reason]

Voice of Reason, as a small business where credit and funds are hard to come by I managed to do OK, but I am seeing some of my neighbors really struggle. I couldn't help but wonder if the State offers the same kind of virtually no interest loan that 40% of the it will be forgiven and sales tax exemption to small businesses, will small business have more of a fighting chance? This reverse Robin Hood rob from everyone and give to the rich corporate welfare truly sucks.

On the selfish side, how does 275 additional workers benefit me? If I am being optimistic, additional 275 means 3 additional customer a day. Sure every little bit helps, but I take the interest free loan and tax exemption any day.

[beerbeer]

Not worked into your assessment is that the state taxes all the wages, using the $40,000 average, each worker gives back 5% of that, or about $2,000. 275 X 2,000 means the state recoups over half a million every year. The loan repays in less than four years.

And that's just on state income tax. The workers also buy food, clothing, housing, cars, furniture, eat in restaurants, etc. Which is all tax as well. It also creates ripple effect jobs and businesses that are taxed.

Plus, the state has to have incentives to stay competitive with other cities and states. It is part of the cost of doing business. Without incentives the city and state lose jobs and the city and state lose tax money.

It's not a loan, it's an investment. The state MAKES money on the deal.