Documents detail WEDC’s offer to Boeing

The Wisconsin Economic Development Corp. appears to have offered no specific financial incentives to draw Boeing Co. to Wisconsin, based on documents released as part of an open records request.

In a Dec. 10 letter WEDC detailed the advantages of moving the company’s 777X production facility to Wisconsin by highlighting tax credits that should “virtually eliminate” the state tax liability for eligible manufacturers by 2016 and detailing the advantages of two possible locations for the facility — Milwaukee and the Fox River Valley.

“While we realize Boeing has several other states and locations vying for its esteemed manufacturing and production facilities, we urge you to consider the opportunities and advantages of Wisconsin,” WEDC CEO Reed Hall said in the letter sent to Boeing Co. division manager Greg Chapdelaine. “We believe Wisconsin has all of the amenities Boeing requires, with the added advantage of being centrally located and within close proximity to Boeing’s corporate headquarters in Chicago.”

Boeing sent out a request for proposals to states in late November to site a new plant after it reached an impasse in contract negotiations with the Seattle-area labor union constructing the 777X aircraft. Missouri, for example, approved a package allowing the governor there to offer the company up to $1.7 billion over 23 years with the final amount contingent upon the number of jobs created.

But the company and union reached a new deal last week that is expected to keep production of the planes in Washington state.

While Hall mentioned the high rankings given to Wisconsin’s business climate and responded to criteria mentioned in the RFP — proximity to rail and airports, use of skilled workforce, for example — he didn’t offer a specific incentive package, according to the letter. Hall ended by writing, “We look forward to the opportunity to discuss with you the specific incentives we have available.” Attached to the letter was a brief list of its incentive packages, a primer on WEDC’s work in the aerospace industry and a map of key airports and seaports in eastern Wisconsin.

WEDC spokesman Mark Maley said the overture was in line with the agency’s emphasis on drawing out-of-state businesses to Wisconsin. He then said WEDC wouldn’t make any further comments on the overtures to Boeing.

See the letter: http://www.wispolitics.com/1006/140108Boeingletter.pdf