Sen. Osten Applauds State Aid for Electric Boat on June 1 Bond Agenda
HARTFORD – Just weeks after taking part in a historic announcement on the banks of the Thames River regarding a package of state aid for Groton submarine maker Electric Boat, state Senator Cathy Osten (D-Sprague) is applauding a forthcoming state grant to help achieve decades of job growth across Connecticut, particularly in the southeastern part of the state.
The State Bond Commission is scheduled to meet Friday, June 1 at 10:30 a.m. in Room 1-A of the Legislative Office Building in Hartford to approve $35 million for Electric Boat to help the sub builder buy equipment and machinery that will help it retain 11,300 jobs and create up to 1,881 new jobs across Connecticut over the next 17 years.
After meeting in Groton late last year with EB President Jeff Geiger, Sen. Osten spent much of this year advocating with the legislative and executive branches of government for a package of state aid for the submarine maker, which designs, constructs, and repairs submarines for the U.S. Navy and which is ramping-up its facilities to build three submarines a year by 2021.
On May 1, Governor Dannel P. Malloy announced a historic partnership with Electric Boat that will help the company grow its workforce by nearly 1,900, bringing it to more than 13,000 by 2034; the $35 million grant is part of that agreement.
“This is a big step in Connecticut’s support for one of the largest employers in southeastern Connecticut and one of the most important defense contractors in America,” Sen. Osten said. “In fact, I was just on base this morning for a change of command ceremony for the USS San Juan, and I talked with Jeff Geiger. We both recognize that Electric Boat’s success is integral to the economic future and economic success of Connecticut as a whole. This state aid for EB puts us on that path.”
Connecticut’s investment will allow EB to maintain its position as the highest-quality provider of submarines to the U.S. Navy, thus capturing additional overhaul and repair work while continuing the delivery of the Virginia Class submarines.
The company is also significantly expanding its Groton facility through the construction of a new dry dock and manufacturing superstructure. This new facility will house the construction and new Columbia-class nuclear powered ballistic missile submarines which will be replacing the ageing Ohio-class.
The Connecticut Department of Economic and Community Development (DECD) will provide incentives over the course of the agreement, including the $35 million loan for machinery and equipment through Connecticut’s “First Five Plus Program,” with loan forgiveness based on supply chain spend and employment.
As part of the agreement, DECD will also provide Electric Boat an $8 million grant, which may only be spent on third-party workforce development initiatives through community colleges, technical high schools, and organizations in Connecticut, such as the Eastern Workforce Investment Board to benefit the company and its manufacturing supply chain.
In addition, the state will provide $20 million for dredging, allowing submarines to be launched from a new dry dock and manufacturing superstructure being built to support new submarine construction.