Liberty Mutual Adds Insurance Jobs in Boston
Posted on February 22, 2010
Liberty Mutual, a home, life, and auto insurance company, has announced that they will be expanding their headquarters and adding 1,100 new insurance jobs in Boston (click here).
The company known for their endearing commercials about paying it forward planned the expansion with Boston Mayor Thomas M. Menino.
According to Property-Casualty.com, if local government authority approvals are secured, the project would get a tax break of more than $15 million and bring much-needed jobs to Boston.
The mayors announcement said the project will add 600 new full-time positions with the company and the work on a property it purchased will mean 500 construction jobs.
Liberty Mutual, founded in 1912, has more than 4,100 employees in Massachusetts located at 31 offices across the Commonwealth. The company has more than 2,500 employees located at its home office campus in Boston.
According to the company the expansion activity should generate more than $50 million in new tax revenue for the city.
Liberty Mutual said that it had opportunities to expand in other parts of the country, but ultimately decided that Boston provides the best opportunity for its growth. The insurer added that anticipated total investment of approximately $300 million in its corporate headquarters would make Boston one of the largest insurance hubs in the country.
Putting people back to work is a top priority, Mayor Meninos statement said. Creating new jobs600 permanent and 500 construction jobsas local unemployment numbers are at an all time high is my focus. Liberty Mutual and the insurance sector represent a $3.2 billion industry that is critical to Bostons economic growth.
According to the article, it was explained that the city is utilizing Tax Increment Financing (TIF) for the project, which allows it to provide a property tax exemption for a portion of the new value created by the project.
The exemption, worth $16 million, would phase in over a twenty-year period as the new property is developed. The city would receive a net benefit of an estimated $50 million in new tax revenues over the same period.
The Boston Redevelopment Authority will vote on the TIF agreement at its board meeting on Tuesday. The agreement must also be approved by the City Council. Liberty Mutual will then need to apply to the Massachusetts Economic Assistance Coordinating Council (EACC) for designation as a certified project.