The City Council today unanimously approved giving LogMeIn a $2.5-million tax break over 13 years for the new headquarters it wants to build at 327-347 Summer St.
City Councilor Bill Linehan (South Boston, South End, Chinatown) said the tax break would keep a fast growing company in Boston - the company pledged to add 400 to 500 new jobs over the next five years - and return the fire-ravaged building LogMeIn will restore to full value on the tax rolls. He said the city would more than recoup the lost revenue from the deal in the added property taxes the building will pay. LogMeIn, which makes software that lets users log into computers and mobile devices remotely, is currently at 320 Summer St.
Linehan said that he continues to believe judicious use of such "tax increment financing" agreements represent a good return for the city - but that as the economy continues to revive, the city can shrink their value. He noted the city gave Liberty Mutual a $17-million tax break several years ago, back when the local construction business had basically collapsed - and then $12 million to bring Vertex across the river from Cambridge.
"Each investment should be less in a market like this," he said.