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Strategies & Market Trends : VOLTAIRE'S PORCH-MODERATED -- Ignore unavailable to you. Want to Upgrade?

To: RR who wrote (36812)	5/11/2001 1:16:15 AM
From: stockman_scott	Respond to of 65232

Boeing Picks Chicago for Its New Headquarters After Considering Dallas and Denver By DAVE CARPENTER AP Business Writer Thursday May 10, 5:34 pm Eastern Time <<CHICAGO (AP) -- Boeing Co. (NYSE:BA - news) on Thursday landed its world headquarters in Chicago, the winner of an intense three-way sweepstakes that leaves the bulk of Boeing's Seattle work force behind. Passing over runners-up Dallas-Fort Worth and Denver, the aerospace giant ended two months of suspense and made final its decision to move its corporate office from the city where it was founded 85 years ago. In a flashy finish to an unusual competition marked by cloak-and-dagger intrigue, Boeing executives informed the cities of the verdict after their corporate jet took off from Seattle for a secret destination that turned out to be Midway Airport in Chicago. Hours later, they got a welcome worthy of visiting dignitaries when their jet rolled up in front of a crowd of applauding state and city officials and a red carpet was unfurled to the foot of the plane. Boeing chairman Phil Condit said there was no single deciding factor, but cited the ``ability to get anywhere in the world'' easily from Chicago. ``We are here not because we wanted to leave Seattle, but because we wanted to build a bigger, more capable Boeing Co.,'' Condit said. ``We believe that having our world headquarters separate from any one of our major businesses will help us to achieve our goals of growing this company.'' Boeing brings fewer than 500 executives to Chicago but immediately becomes Illinois' biggest company, its $51.3 billion in 2000 revenues ranking it ahead of Sears, Motorola, McDonald's and United Airlines. Jubilant state and local officials cited not only the prestige of luring a world-class corporation but the economic and civic benefits they expect to follow. The Illinois House burst into applause when the news was announced. ``This is a great day for the state of Illinois and the city of Chicago,``Gov. George Ryan exulted after he and Chicago Mayor Richard Daley greeted Boeing executives at Midway. Boeing plans to move Sept. 4 to its new headquarters -- a 36-story office tower on the west bank of the Chicago River, just north of the city's two main train stations and the Lyric Opera. The building at 100 North Riverside Plaza formerly was the headquarters of Morton International. The three cities had been competing for the aviation giant's new headquarters since March, when Boeing announced plans to leave Seattle to save money and be more central to its operations in 26 states. Each city offered millions of dollars in tax breaks and other incentives and enlisted the help of sports stars and business leaders to woo the company. But Chicago offered the sweetest deal -- Ryan said Boeing could be eligible for up to $41 million in state incentives over 20 years -- and its central location and air links are unmatched. ``It's going to be a very modest investment for the state of Illinois for the money that it'll bring back,'' Ryan said. He cited a study by the Arthur Andersen consulting firm that estimated Boeing could have a $4.5 billion economic impact. Texas Gov. Rick Perry congratulated Chicago on its selection. ``All Texans knew from the outset that the competition with Chicago and Denver would be fierce.'' Denver Mayor Wellington Webb said he was disappointed but didn't think the area's incentive package totaling $13 million to $18 million should have been higher. ``I don't think you have to pay people to move here,'' he said. Analysts said the choice made sense from a geographic standpoint. ``I think that it's without much question the more convenient location,'' said Paul Nisbet, an analyst with JSA Research. The company will keep its massive aircraft factories and design and development facilities in the Seattle area, where 79,000 of its 199,000 employees work. Chicago had been eager to land Boeing, in part to reverse a recent trend that has seen it lose several corporate headquarters, including Amoco Oil Co., which was merged with British Petroleum in 1998 to form BP PLC [NYSE:BP - news], and Montgomery Ward, which has declared bankruptcy. Daley and Ryan did not immediately disclose specifics of the incentives program. Key Illinois lawmakers said that while they are inclined to support reasonable incentives to encourage the move, they wanted to know details. ``In theory, sure, we want to do what we reasonably can,'' said Rep. Joe Lyons, D-Chicago, chairman of House Revenue Committee. ``We just want to make sure whatever carrots were dangled out there, that they're lived up to on promises made by Boeing.'' Shares of Boeing closed up 95 cents at $65.95 Thursday on the New York Stock Exchange.>> _________________________________________ At a lunch downtown with a friend today I heard that the real reason that Boeing came to Chicago is because its Chairman is a big sailor <G>...Its tough for Denver and Dallas to compete with Lake Michigan (a freshwater ocean). Chicago also offers an incredible array of cultural activities and O'hare provides flights to almost any major city worldwide. I think Boeing created the competition with the 3 cities to get favorable incentives and tax breaks -- and it worked.