Boeing to build 7E7 in Everett


The Seattle Times is reporting that Boeing will build the 7E7 in Everett, Washington, picking that city over three finalists, all southern cities near the ocean:

The Boeing insider, who has provided accurate information about key 7E7 decisions in recent months, said Everett was chosen over three other finalists, all in the Southeast: Kinston, N.C.; Charleston, S.C.; and Mobile, Ala. The source spoke on the condition of anonymity.

The 7E7 team's analysis showed that the cost of operating in Everett, though higher than in the other cities, was competitive because of the $3 billion 7E7 tax incentive passed by Gov. Gary Locke and the state Legislature in June.

With that incentive package, the difference in cost between Everett and Kinston, the lowest-cost city, narrowed to about $300 million over 20 years, a number dwarfed by the estimated $7 billion to $10 billion cost of developing a new airplane.

The source goes on to cite non-economic reasons for the selection. Selecting a non-union site would hurt Boeing in negotiations with unions at its other facilities. And leaving Washington would alienate Boeing's allies in Washington's congressional delegation, who are especially important now because of the recent allegations of unethical behavior by Boeing officials, which are jeopardizing a plan to have Boeing build new tankers for the US Air Force.

Here's a link to the Seattle Times archive of stories about Boeing.

We should know for sure on December 15, when the Boeing board meets to discuss whether to move forward with the 7E7 and where the final assembly plant will be built.

If Tulsa doesn't get it, Tulsa County taxpayers should demand that the County Commissioners to act swiftly to repeal the tax authorized by Proposition No. 1 on the Vision 2025 ballot, so that the 0.4% cannot be activated under any circumstances, no matter how contrived.

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This page contains a single entry by Michael Bates published on December 8, 2003 12:26 AM.

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