One of the world's largest hedge funds, Bridgewater Associates, is slated to receive $22 million from the state, in return for job and other investment commitments.
In return for the state's millions, the firm will invest a total of $525 million in Connecticut through jobs and facilities improvements.
The deal is a part of the First Five program, organized by the Connecticut Department of Economic and Community Development, meant to encourage and spur investment among major employers.
“I still think that if we look at this from a taxpayer perspective and I view myself as a fiduciary of their dollars, that they’re going to get a great return on this investment" said Catherine Harris, the Commissioner of DECD.
The deal includes a low interest $17 million loan, $3 million for renewable energy sources and $2 million for training.
In return for the state funds, which will come in the form of bonds, Bridegwater Associates must retain the 1,402 that are already at the company's Westport headquarters and create an additional 750 jobs by 2021.
The company will also be eligible for $30 million in Urban and Industrial Sites Reinvestment Tax Credits over a ten year period.
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“They are absolutely well-paying jobs, well above your average in Connecticut, believe me," Harris said.
Bridgewater Associates did not respond to a request for comment.
Republicans criticized the deal as unnecessary for a company like Bridgewater that manages more than $150 billion in assets around the world.
“People have just had enough with ridiculous decisions that government makes and this is beyond the pale," said Senate Minority Leader, Republican Len Fasano.
Even though GE announced it was leaving back in January for Boston, Fasano said the circumstances now are very different. He said Bridgewater was already going to invest to stay, whereas GE was frustrated with the way that state had been run for a while.
“What you need to do in Connecticut is say, 'What do we need to make people stay here?', so that they want to stay here, so that the business climate overall is good to be here because we’ve got control over our debts, and control over our taxes," Fasano said.
Smith said the state is getting a very high return on investment because the people who will eventually be employed by Bridgewater will pay income and local property taxes.
“The deal more than pays for itself so that $17 million will come back to the state in a different form. If the company doesn’t deliver, they don’t create the jobs, they owe us back that funding,” Smith said
The State Bond Commission will meet Friday where it is expected to approve the funds.