City and state officials are prepared to offer tax breaks and other incentives to United Airlines if it will move its headquarters from Illinois to Denver.
But skepticism abounds about how serious the airline’s intentions are.
The Metro Denver Economic Development Corp. said it offered on Thursday to send an economic-incentive proposal to United within four business days. The airline declined the offer, saying plans were still in a “very, very preliminary stage.”
“They said that when it became appropriate, they would contact us,” said Tom Clark, the the group’s executive vice president.
United reportedly is seeking to relocate 350 senior executives from Elk Grove Village, Ill. The two other locations rumored to be in the running are downtown Chicago and San Francisco.
Denver Mayor John Hickenlooper said Thursday that it is “awfully hard” to get a corporation to move its headquarters, but “we’re going to throw everything at it we can.”
He said the city, the state and the Metro Denver Economic Development Corp. could put together “a very powerful package” that could provide “more money per job” to United than has ever been offered to a company to relocate or expand in this region.
“The question is whether or not it’s a real search or if it’s just something to try and get some incentives out of Chicago,” said Denver City Councilman Michael Hancock. “We don’t know at this point.”
Jody Weant, president of the United Association of Flight Attendants council in Denver, shares the question. “I don’t know that the cost of living or the cost of doing business would be much lower (in Denver) than in Chicago,” she said.
Clark declined to put a price on an incentive package but said United could be eligible for enterprise-zone credits, cash grants for employee training and property-tax breaks.
Sen. Ken Salazar, D-Colo., also applied pressure Thursday, urging United chief executive Glenn Tilton to consider Denver. He touted the city’s ample office space, affordable-housing market and the FasTracks plan to expand light-rail service.
“Denver is the smart choice for both United’s bottom line and the quality of life for your senior management and employees,” Salazar wrote.
United currently has more than 5,000 employees in Denver.
The Independence Institute, a Golden think tank, spoke out against tax subsidies.
“If you have economic-development moneys going to a particular company, you are actually going to lower the standard of living in our area, because that money has to come from somewhere else,” said senior fellow Penn Pfiffner.
United has hired Staubach Co. to explore real estate options. Crain’s Chicago Business reported Thursday that United is eyeing several downtown Chicago office towers.
Local real estate brokers expressed doubt that United is serious about Denver. John Marold of CB Richard Ellis said the search reminds him of Boeing’s 2001 headquarters relocation from Seattle.
The city and the state were prepared to offer Boeing up to $28 million in tax breaks but were outbid by Chicago.
“The CEO of Boeing got something, and now the CEO of United wants the same thing,” said Marold, who is leasing Atrium III in Greenwood Village, one of the few local buildings that could house United. “I worked really hard on Boeing, but we were just the whipping boys.”
Staff writers Kelly Yamanouchi and Margaret Jackson contributed to this report.
Staff writer Julie Dunn can be reached at 303-820-1592 or jdunn@denverpost.com.
