Boeing picks Chicago; will move by Sept. 4

Boeing made it official this morning that its new corporate home will be in Chicago. The Seattle Post-Intelligencer learned Wednesday night that Chicago had been chosen over Dallas and Denver.

Chairman Phil Condit and other company officials left Seattle's Boeing Field for Chicago about 8 this morning by corporate jet. Once there, they formally announced that Boeing's new headquarters will be at the 100 N. Riverside Plaza office building along the Chicago River.


	This is the 100 N. Riverside Plaza office building along the Chicago River, which will be the Chicago home of The Boeing Co. The official announcement of Boeing's move to Chicago will be made in Chicago today.

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.,'' he 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 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.

Condit, in a news release issued just after Boeing execs left Seattle en route to Chicago, said: "We looked at three very exciting metropolitan areas in which to base our company. It was a very difficult decision and no single factor made the difference. In the end, we looked at all the data and made what we believe is the right choice for Boeing."

Condit also underscored the philosophy behind the move: "We're continuing to transform our company with a focus on long-term growth and value creation. Our new corporate architecture - with a leaner headquarters located separately from our major business units - is a fundamental element of our business strategy."

Boeing officials informed employees of Seattle's selection in a companywide e-mail this morning. They also called state and local officials and political leaders in Chicago, Dallas and Denver.

NOTE: This article has been updated since it was originally published in the newspaper.

The announcement ends a spirited courtship of Boeing by the three cities since the world's largest aerospace company announced nearly seven weeks ago that it had decided to move from its Seattle roots.

Because of its location, Chicago had been considered the front-runner from day one, even though Denver and Dallas made strong bids to woo Boeing.

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.

Among the Boeing employees most anxious to learn of the decision were those who work at Boeing's corporate headquarters in Seattle on East Marginal Way across from Boeing Field.

For some, the choice is between the only place they have ever lived and the only career they have ever had.

"Seattle is my home. This is a huge, huge decision," one of those corporate employees said yesterday.

Fewer than 500 of the 1,000 or so current employees at the Seattle headquarters will be asked to make the move.

Boeing has said it will try to minimize layoffs for those who will not be asked to move.

Job offers were made to some employees a couple of weeks ago.

Those who are being offered jobs at the new headquarters have 30 days to decide.

But some divisions within corporate headquarters have not yet decided who needs to relocate to Chicago and who should remain in Seattle.

The job offers will continue to be made over the next few weeks as those decisions are made.

Several people who have received job offers agreed to talk with the P-I, provided they were not identified.

As of last night, none had been told where the new headquarters will be.

But they have been told that after the decision is announced they will be flown to the location so they can get a feel for the city and the new headquarters before having to make up their minds.

"We are looking forward to the move, regardless of which city is selected," one person said.

But that person is not from Seattle and has not worked for Boeing that long.

Others with longtime Seattle and Boeing roots said even though they are thankful they will still have jobs, leaving Seattle will be difficult.

"I'm so tense I could almost croak," one person said.

The Chicago building selected for the headquarters does not have a rooftop heliport now, but one could be built there to whisk executives to O'Hare International Airport, sources said.

Even though they would have to use O'Hare for commercial flights, Boeing executives could end up flying in their corporate jets out of DuPage Airport, which is about 30 miles west of downtown Chicago.

Brian Kulpin, spokesman for the DuPage Airport Authority, told the P-I that the authority is working with state legislators on a bill that would allow jets that weigh up to 171,000 pounds to use the airport.

That would mean the Boeing Business Jet often used by Condit and other top executives could fly in and out of the airport and avoid crowded O'Hare.

Both airports are about the same distance from the headquarters building.

The Boeing Business Jet is a modified 737 with a maximum take off weight of 171,000 pounds.

Plans are already under way to extend the 6,700-foot runway to more than 7,500 feet, Kulpin said. That project will be finished by December.

DuPage has become the area's top corporate airport, but it is now restricted to jets that weigh less than 92,000 pounds.

"We are making a unified effort," Kulpin said of the planned legislative bill. "If this is what we have to do to get Boeing here, that's what we will do."

Boeing executives have made it clear that one of their top criteria in choosing the new headquarters city is ease of travel.

Executives want to be centrally located to the company's main business units in Seattle, St. Louis and Southern California. They also want to be close to New York and Washington, D.C., as well as to customers in Europe and Asia.

P-I reporter James Wallace can be reached at 206-448-8040 or jameswallace@seattlepi.com

This report includes information from The Associated Press.

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