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Thursday, May 02, 2002|
Fido to Expand Rhode Island Site
Fidelity is getting ready to add hundreds of jobs to its Smithfield, Rhode Island location. The news came out yesteray when Rhode Island's Governer Lincoln Almond announced he had brokered a real estate deal between Fidelity and Dow Chemical.
The deal provides the Boston Behemoth a 25-year loan from the The Rhode Island Economic Development Corp. to purchase the land amd build a public access road. Fidelity will pay annual rent to back the interest stream from the bonds. The first payments will not be due for five years.
The fund firm currently employs 1,600 people in the location and reportedly has plans to add another 900 workers to the site, though it is not clear if these will be new jobs or transfers.
The agreement with the state provides Fidelity a $500 payment against its loan for each full-time worker added past 2,500 up to a maximum of 4,300. The agreement also provides rental credits of up to $900,000 per year during the life of the bonds.
Fidelity must present plans on how it will develop the site to the state withing six months.
The deal was brokered after Fidelity opposing Dow's expansion of an existing chemical plant in Smithfield, claiming that the new construction was too close to Fido's existing offices. The offices are on state owned land.
The Governor settled the dispute by having the The Rhode Island Economic Development Corp. declare eminent domain over the Dow land and selling it to Fidelity. The fund firm kicked in another larger lot to compensate the chemical company.
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