Another related development brewed up in early 2005, when an offer that in its 2003 incarnation included a site at the Quonset park fell through when it wasn't backed by an incentive offer from the Rhode Island General Assembly. As a result, and with $6 million in incentives and additional property tax breaks being offered by the State of Connecticut, Brown & Sharpe is relocating across the line to North Stonington, Conn.
      Rhode Island Gov. Donald Carcieri in 2003 proposed that the state construct an $11.6-million, 116,000-sq.-ft. (10,776-sq.-m.) facility at the state-owned park. But the proposal, despite its approval by the state's economic development corporation, was shot down by the legislature during the summer of 2004, owing to concerns about the risk of the company walking away from the deal. Brown & Sharpe had been located in Rhode Island for more than 170 years, and had offered to pay annual debt on the facility for 15 years minimum.
      The failure to act by the legislature, according to published interviews with Carcieri, means the company will be relocated completely across the state from North Kingstown by the middle of 2006. However, a last-minute offer by his office included $12 million of financing arranged through Sovereign Bank, as well as $4.8 million in incentives over and above that amount.
      All 270 employees will be offered positions at the new complex, run by Hexagon Metrology North America, part of Swedish precision measuring equipment manufacturer Hexagon AB.
      As of mid-March, the company had spent $2 million on 13 acres (5.3 hectares) in North Stonington with plans to build a 115,000-sq.-ft. (10,684-sq.-m.) building. The company will receive a $4-million loan from the state, payable over 10 years at a 2.5-percent interest rate. The additional $2 million from the state's Urban Act program will go to the town for infrastructure improvements, and the town itself will grant tax abatements it recently approved.
      "Connecticut presented to Hexagon a number of attractive incentives to assist us in the relocation process that made this clearly the best choice from among those we were considering, including our Rhode Island options," said Bill Gruber, president and CEO of Hexagon Metrology North America and Brown & Sharpe Inc. in February. "We will now focus on this alternative to bring it to a successful conclusion. In making our decision, we were at all times mindful of the interests of our stakeholders, including customers, employees and our parent company."