Damian Dovarganes / Associated Press

Boeing Co. workers stand on platforms as they wave at their last C-17 Globemaster III cargo jet built for the U.S. Air Force as it flies away at the aerospace company's plant in Long Beach, Sept. 12, 2013. The Long Beach assembly line still has pending orders in the foreign market.

California to bid for Boeing project

Published: Tuesday, Dec. 10, 2013 - 12:00 am
Last Modified: Tuesday, Dec. 10, 2013 - 7:31 am

California will be among states submitting bids to Boeing this week in an effort to land a production facility for the company’s newest commercial jetliner.

An official for Gov. Jerry Brown’s Office of Business and Economic Development, or GO-Biz, confirmed Monday that California will submit a proposal to Boeing ahead of the company’s deadline today for states seeking to host production of the 777X.

GO-Biz declined to say what incentives, if any, are included in the proposal, though Brown has significant latitude to negotiate.

In a controversial restructuring of California’s enterprise zone program of tax credits for hiring, the Legislature afforded Brown about $30million this budget year for tax credits to be negotiated on a case-by-case basis.

The credits, administered under a newly formed California Competes Tax Committee, can increase to $150million next budget year and $200million in subsequent years.

The legislation, Assembly Bill93, also provided a sales tax exemption for manufacturing and biotech research companies. The value of the exemption is potentially significant, since it’s applicable to up to $200million in purchases annually.

Boeing is searching for another site to build the 777X after becoming mired in a labor dispute in Washington state. The aerospace giant has billed the plane as its largest and most fuel-efficient commercial aircraft.

The potential of luring Boeing is of significant interest in Long Beach, where the company produces its C-17 military plane.

The company announced in September that it will stop producing the C-17 in 2015 and close its Long Beach facility.

Boeing employs about 20,000 people in California.

The company said it employs more than 3,000 people on the C-17 production program in Long Beach, Georgia, Arizona and Missouri.

Boeing spokesman Doug Alder said the company expects to make a decision by early next year, but he declined to be more specific or to say how many states are competing. He said the company has sent proposals “to more than a dozen locations.”

Alder said a final decision could involve the selection of several sites, not just one.

The end of the C-17 production is “perfectly timed” to Boeing’s search for a facility to produce the 777X, said Assemblyman Al Muratsuchi, D-Torrance, chairman of the Assembly Select Committee on Aerospace. He said Long Beach offers Boeing an experienced workforce.

Call David Siders, Bee Capitol Bureau, (916) 321-1215. Follow him on Twitter @davidsiders.

Read more articles by David Siders

Sacramento Bee Job listing powered by Careerbuilder.com
Quick Job Search
Sacramento Bee Jobs »
Used Cars
Dealer and private-party ads


Price Range:
Search within:
miles of ZIP

Advanced Search | 1982 & Older