Gary weighs offer to Boeing

The city of Gary is 24 hours away from deciding whether to pursue a new Boeing Co. plant that could mean 1,200 jobs in the region.

The plant would house assembly for the airplane maker's 7E7, a new generation, fuel-efficient jetliner.

The state of Indiana is fielding applications for Boeing, and the preliminary applications are due in Indianapolis by Friday.

According to the Seattle Times, Boeing's directors are expected late this year or early in 2004 to make the multibillion-dollar decision of whether to finance the new model.

The company will select a final assembly location from among nearly 20 competing states.

Gary Mayor Scott King acknowledged Wednesday there have been preliminary discussions about a proposal - including talks with Chicago Mayor Richard Daley. Though Chicago does not plan its own offer, King said, the city would support Gary's proposal.

Boeing's corporate headquarters are in Chicago, and the company has a contract to house its corporate fleet at the Gary/Chicago Airport.

"We're looking for the best place to build the 7E7, (a place) that gives it the greatest chance for success," said Mary Hanson, a company spokeswoman from Boeing's offices in the state of Washington.

King said he, airport administrator Paul Karas and the airport board would meet today to decide on a plan.

"We've got a list of pros and cons now," King said. "In part, what we're looking at is the other cities interested in it. One of Boeing's requirements is water port access. That's one of the reasons why we're looking at it and have had these discussions internally and with Chicago. One of the problems for the other communities is water access."

Boeing's search for a plant site hinges on incentives both a state and a local municipality might offer for land, infrastructure and tax reductions.

"Boeing, like any other corporate entity, has a list of desired incentives," King said. "Before we go into any of this, we want to have a reasonable comfort level that we can be competitive in pursuing it."

According to Boeing's Web site, the new plane will hold 200 to 250 passengers and fly 7,200 to 8,000 miles nonstop. It will use 15 to 20 percent less fuel than traditional aircraft.

Production would begin in 2005, with the plane's first flight in 2007 and passenger service following in 2008.

Hanson would not discuss further details of the site selection process, other than to say that each state's commerce department is forwarding applicants that meet Boeing's criteria to a consultant who is handling the site selection.

The aircraft manufacturer is making only some of the plant criteria public.

According to Boeing's Web site, those preferences include a suitable runway, proximity to a port capable of around-the-clock operations, proximity to railways and interstate highways, an available labor pool, available land, buildings and related infrastructure to support the plant, nearly all of which are available in Northwest Indiana.

"They asked us to submit any sites that would meet their threshold requirements," said Jeff Harris, Indiana Department of Commerce spokesman.

Harris said his office is working with local officials in communities across the state "to match any sites up with the criteria that Boeing is looking for."

Harris would not disclose which cities the department is working with and said a final determination of sites to be submitted had not yet been made.

He did say that Boeing is looking for a 10,000-foot runway. One of the runways at the Gary/Chicago Airport is 7,000 feet; under a master plan, it could be expanded to 8,900 feet.

He also said Boeing, which wants to announce a site by the end of the year, wants 400 to 600 acres.

A recent article in the Evansville Courier & Press stated that Evansville, as well as Indianapolis, Fort Wayne, South Bend and Terre Haute, were interested in the project.

Staff writer Steve Patterson also contributed to this story.

Story posted: 6/19/2003