Oct 6, 2009 11:19 am US/Central
City Gives United $36 Million For Move Downtown
United Will Move All Operations To Willis Tower
CHICAGO (CBS) ―
United Airlines is gearing up for its big move from the northwest suburbs to its new headquarters at Willis Tower, and Chicago aldermen are opening up the bank to make the move a little easier.
United is moving its operational center to the city's tallest building next year. The move will bring United's management, administrative, accounting, IT and crew planning/daily operations jobs from the current operational headquarters in at 1200 E. Algonquin Rd. in Elk Grove Township.
The city plans to fork over nearly $36 million in incentives. While that sounds like a lot of money for the cash-strapped city council, those behind the deal insist Chicago stands to gain even more. They say having United at the Willis Tower will bring in thousands of jobs and millions of dollars in revenue.
For the first time in United's history, the company's corporate and operation centers will be together at one address. At least eight floors of the Willis tower are being completely rehabbed to make room for the new United headquarters.
To ensure a smooth landing into their new office space, the Finance Committee on Monday approved $35.8 million in incentives.
Why so much?
"Because we knew that United Airlines was looking at possibly relocating to 15 other sites from their long-time Elk Grove Village facilities," said Molly Sullivan, Communications Director with the city's Community Development Department.
As part of the deal, United must employ at least 2,500 people for the next 10 years. So the move is expected to bring in jobs, and more.
"Studies have been done by the Chicago Chamber of Commerce that indicate roughly seven thousand dollars is spent every year by loop office workers," Sullivan said. "That is a big boost to the local economy."
In addition, it's about prestige.
"Just saying we have one the biggest airlines in the country, if not the world, and that our hometown airline is based here in the city, that's important," Sullivan said.
Chicago is expected to end up with nearly $45 million in revenue over the next 10 years, thanks to the move. If United stays here for 15 years, they predict that figure would more than double, to over $100 million.
So far, the deal has the approval of the Finance Committee and the Community Development Commission. The full City Council is expected to sign off on it on Wednesday, making it official.
Meanwhile, United is planning to start moving some of its operations into the Willis Tower as early as next year.
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