Denver-area economic-development officials could offer nearly $9 million in incentives for United Airlines to move its headquarters here, twice the offer reportedly made by the city of Chicago.
Many say they don’t believe Denver is seriously being considered for the headquarters move.
The airline is considering moving its headquarters from Elk Grove Village outside Chicago, which could involve 350 headquarters employees and 150,000 square feet of office space. Denver, downtown Chicago and San Francisco have been mentioned as possible sites.
Chicago, thought to be Denver’s strongest rival for the headquarters, is offering the company $4.4 million in tax-increment financing, according to reports in Crain’s Chicago Business and the Chicago Tribune.
United said it has had discussions with officials from Denver but would not give specifics about the offer.
“We asked the city and we received from the city an understanding of what the city could offer us,” United spokeswoman Jean Medina said. “We continue to have discussions with them.”
The Metro Denver Economic Development Corp. said it offered to send an economic-incentive proposal to United in May, but the airline declined the offer.
But if United came calling, Colorado’s incentive package could include:
$525,000 for job creation from a new economic-development package signed into law by Gov. Bill Owens in June. That incentive gives companies that generate high-paying jobs – relative to the area where the jobs are located – $1,000 to $1,500 a year per job.
About $280,000 in job- training incentives.
As much as $8 million in tax-increment financing, if United built a large enough building that qualified.
One “premier location” would be near ProLogis’ headquarters outside Denver International Airport, said Tom Clark, executive vice president for The Metro Denver Economic Development Corp.
The tax-increment financing estimate involves certain assumptions about property value and taxes and would come with contingencies – including that United would own a building instead of leasing it.
Other potential incentives, depending on the location, could include enterprise- zone tax credits and local-municipality incentives.
United has reportedly looked at existing office buildings in downtown Chicago and has met with San Francisco officials about headquarters relocation. Clark said Chicago’s $4.4 million offer is “probably not the whole picture.”
A Denver incentive package also would be weighed against the cost of relocation from United’s headquarters.
“In gross numbers, (Denver’s) looks like a better deal, but if it’s an existing building that they can get in right away, you’ve got the time cost of money, you’ve got all the savings from not having to design the building,” Clark said. “It certainly is more apples to oranges.”
Staff writer Kelly Yamanouchi can be reached at 303-820-1488 or kyamanouchi@denverpost.com.
