In tough times, big development deals hard to find

By Todd Wallack
Globe Staff / January 26, 2009

Massachusetts is no longer in the hunt for a major economic development deal, code-named Project Sunshine, and another one, Project Blue Moon, is on hold, according to the Massachusetts Alliance for Economic Development.

Massachusetts, like other states, regularly vies for major economic development projects, many of which are identified only by code names until they come to fruition. The odds against closing such deals are high. For example:

Project Sunshine: A solar-panel company was seeking 40 to 50 acres for a plant with up to 1,000 workers, but the state is no longer in the running for the development.

Project Blue Moon: A large high-tech manufacturer is considering building in Bedford or Burlington, creating about 2,000 jobs. The company has delayed its plans because of the recession.

Project Sunshine involved an unnamed solar-panel company that last year was scouting for 40 to 50 acres and promised to create as many as 1,000 jobs. Massachusetts didn't make the company's short list of sites, said Doug Kehlhem, director of corporate site location for the nonprofit group, which works with the state to help companies expand or relocate here.

Project Blue Moon refers to a large high-tech manufacturer that was considering building a headquarters and development center that would employ more than 2,000 people in Bedford or Burlington. Kehlhem said the company has delayed its expansion plans "due to market conditions," referring to the global recession that has forced businesses to delay or cancel expansion projects.

"They have yet decide" on where to expand, Kofi Jones, a spokeswoman for the Patrick administration, said of Project Blue Moon.

Many companies that are considering new locations work through intermediaries, called site-selection consultants, who conceal their clients' identities by using code names. In other cases, state economic officials assign code names directly to protect the firms' anonymity until a deal is closed.

At least two other major projects, Project Boss and Project Visa, won't be coming to Massachusetts, either, according to the Massachusetts Alliance for Economic Development's 2008 annual report.

As part of Project Boss, a site-location consultant was scouting land for a large drug manufacturing plant that would have employed up to 1,500 people. Project Visa involved a smaller biopharmaceutical plant with 450 employees. In both cases, Kehlhem said, Massachusetts didn't make the short list of places the companies were considering.

Despite the setbacks, the state remains in the running for many other potential new plants and offices, including Project Monarch - a solar energy company that's looking to develop a site of at least 40 acres - according to the agency. The group said it submitted eight possible sites to the consultants and is waiting to learn if Massachusetts is a finalist. The Globe recently reported that two unnamed life sciences companies are also considering locating biotech manufacturing plants in Massachusetts.

Jones said the state's "project pipeline" currently has the potential to create 24,000 jobs and retain 37,000 more, and includes about $7 billion in potential private investments.

But Kehlhem noted last week that the odds against landing a large business deal are high.
Most national searches for sites do not result in a deal for Massachusetts because companies decide to go elsewhere or put the project on hold, he said - something that's true of searches in other states, as well.

Kehlhem added that Massachusetts would be fortunate to land one or two out of every 20 potential major deals, each of which could create hundreds or thousands of jobs.

Mark Pothier of the Globe staff contributed to this report. Todd Wallack can be reached at twallack@globe.com.