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Malloy gives more money to hotel company to expand in Stamford

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HARTFORD, Conn. – Democratic Gov. Dannel P. Malloy announced Thursday a deal to help Starwood Hotels & Resorts, a company his Republican predecessor convinced to move to Stamford, expand in the state.

Under the deal, Starwood will expand its headquarters in Stamford and create 340 full-time jobs in addition to retaining its current workforce of 980 employees.

“Since Starwood came to Stamford a number of years ago, the company has demonstrated their commitment to Connecticut by growing jobs, spurring economic development and, essentially, letting other large corporations know that this is a great place to work, invest and call home,” Malloy said in a press release. “This is just one of the many steps we are taking to send a loud and clear message that Connecticut is open for business.”

The state will provide a Manufacturing Assistance Act loan of up to $5 million and up to $20 million in Urban and Industrial Sites Reinvestment Tax Credits. The credits can be used over a period of 10 years. Those credits also can be sold or transferred to another corporate taxpayer or carried forward for five years.

See the complete story at CT News Junkie.

Comments

5 responses to “Malloy gives more money to hotel company to expand in Stamford”

  1. John Hamlin

    Maybe instead of having to pay bribes to hand picked businesses anointed by the governor, the state should lower taxes, get sensible about regulation, and control its spending to make the state attractive to all businesses and let the market do what it does better than government? Or at least publish a list of which politicians you have to pay to get those kind of deals.

  2. One and Done.

    What exactly does a Hotel perks administrator manufacture? How many of their executives will be using Malloy’s wife’s real estate business to relocate? How much of our tax dollars does Starwood get to give its employees as relocation expense? Do they even care to hide their corruption anymore?
    .
    One and Done.

  3. John Levin

    Get Malloy out of office. CT doesn’t need corporate welfare and crony capitalism that borders on corruption. This is one more disgrace – the $115 million for Bridgewater Associates was the straw that broke the camel’s back. Now I feel like he is simply pillaging the state’s resources in his final days in office. $20 million gift to Starwood for promising to add 340 jobs (jobs that likely would have been added as part of the company’s ordinary growth)? Malloy is a disgrace. November can’t come soon enough.

  4. piberman

    Even loyal Democrats must be wincing in embarrassed disbelief at this give back to the “home town” ahead of the election. No doubt one of the Governor’s best “job creators”. The continued silence of our elected Democrat legislators to these rediculous “give aways” speaks volumes about the commitment of their “public service”. Time for change.

  5. LWitherspoon

    It’s possible I don’t fully understand how these programs work. That said, $20 million in tax credits plus $5 million in forgivable loans, all divided by the 340 additional jobs, yields a cost to taxpayers of roughly $73,500 per additional job.
    .
    For the sake of calculating, let’s assume the average yearly salary paid to those 340 additional Starwood employees will be $73,500. It’s probably significantly less than that. Using the maximum state tax rate of 6.7%, it appears that it will take a minimum of 15 years for the state to recoup its $25 million.
    .
    It’s disappointing that nobody ever talks about the math which justifies programs such as this one. How can we understand whether or not such programs are worthwhile when we’re only told the dollar figure and the number of jobs created?

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