Wall Street Journalplanned headquartersmove from White Plains, NY may have hit a snag. The WSJoriginally reported that the move is contingent upon Connecticut'spromise to improve infrastructure for the hotel giant, butcurrently those improvements are relying on Federal stimulus moneyfor funding. The Federal stimulus, however, is not meant to fundtaking jobs from one state and moving them to another. Subsequentto the story's publication, however, a Starwood spokeswoman saidher company's relocation to Stamford was tied to a $90-millioneconomic incentive package but not to infrastructure improvements,and the WSJ published a retraction.

Greg LeRoy, founder of Good Jobs First, tells the WSJ:"If the infrastructure money was an important element of Starwood'sdecision to relocate, that would be a troubling use of stimulusdollars. It's a flag and raises the question: 'Are Recovery Actdollars subsidizing an interstate job movement?' You don't wantUncle Sam being in the business of paying Peter to rob Paul."

If the money is with-held, Connecticut could always fund theinfrastructure improvements itself. The requested filing would befor about $35 million of federal aid. Starwood if it does move itsoperations north is planning to take over space in the Harbor Pointdevelopment here.

Want to continue reading?
Become a Free ALM Digital Reader.

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.