— Deloitte, a giant international accounting, consulting and financial advising firm, will receive between $9 million and $14.5 million in state tax dollars to expand its workforce in Connecticut over the next 61/2 years, the governor announced Wednesday.
The grants are part of the state's First Five incentives program, which is expanding to as many as 15 companies. The businesses may negotiate deals before the end of June 2013.
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Deloitte is the seventh company expected to receive the subsidies.
Deloitte, which is owned by a British private firm Deloitte Touche Tohmatsu Limited, promises to hire at least 200 people by the end of 2013, which will net the company $9 million.
If it adds 150 more jobs by the end of 2018, it will receive an additional $2.5 million; if, instead, it creates 300 more jobs by the end of 2018, that number would rise to $5.5 million.
Although this level of hiring is not expected to increase its need for office space — many of its consultants work at client locations — the money is designated for capital investments and training, not operating expenses. Firms are expected to spend at least $5 million on capital costs over the course of the agreements. Deloitte has projected it will spend $16 million in the first two years.
All the other six firms receiving subsidies are spending millions to renovate or expand or build.
The previous First Five companies were, in order: Cigna in Bloomfield, ESPN in Bristol, NBC Sports in Stamford, Alexion Pharmaceuticals, moving from Cheshire to New Haven, CareCentrix, moving from East Hartford to downtown Hartford, and Sustainable Building Solutions in North Haven.
In the case of Cigna and NBC Sports, those corporations are moving jobs from out of state to Connecticut and adding jobs; Sustainable Building Solutions is a new company getting established in the state.
Deloitte's managing partner in Fairfield County, Steve Gallucci, said the firm has typically been hiring 100 to 150 people a year in Connecticut.
The First Five program "is picking up steam. It's no longer the First Five, it's the First 15," Gov. Dannel P. Malloy said, speaking at Deloitte's Stamford office. He noted that four companies have been named in the last three months.
"While we're making progress, and 22,500 private sector jobs is progress, I'm not satisfied," Malloy said. The private sector has added 22,500 jobs in the past year and a half, since Malloy took office, but the state's overall job growth was a tepid 13,900 over that time, because state and local governments have been cutting positions in the wake of the recession.
Malloy said Deloitte was selected for the program in part because it was considering moving Connecticut jobs to New York or New Jersey if it didn't receive an attractive package.
According to the New York City Industrial Development Agency, Deloitte was offered $10.6 million subsidies in August 2010 if it increased the 4,211 employees it then had in 4 World Financial Center in Lower Manhattan by at least 2,100 over 18 years.
According to the Westchester Business Journal, the company told New York economic development officials that it had 6,000 employees at the time across New York, New Jersey and Connecticut, and said that if it didn't get the incentives, it could expand in Connecticut instead. At the time, the newspaper said, Deloitte had more than 700 employees in Fairfield County, with most in Wilton.
Wednesday's announcement was made at 333 Ludlow St, also known as Stamford Harbor Park. The 400,000-square-foot waterfront office building has two towers and currently includes Deloitte and Starwood Hotels and Resorts as major tenants. In 2009, the state offered Starwood Hotels a $9.5 million loan and up to $80 million in tax credits and exemptions in exchange for moving its headquarters, and about 800 jobs, from White Plains to Stamford.
Deloitte did not disclose an average salary for the 200 to 500 jobs it expects to add in the state. Gallucci said most are entry-level hires: newly minted MBAs, recent college grads, and some lawyers.