The good news?
South Carolina is on the precipice of finalizing a major economic development deal that will create anywhere between 900-1,300 new jobs in Charleston, S.C.
The bad news?
We may be giving away the farm to get those jobs – in addition to inheriting the most troubled airplane project since Howard Hughes’ infamous “Spruce Goose.”
Either way, global airplane manufacturer Boeing is reportedly bringing its 787 Dreamliner line to Charleston, South Carolina – all thanks to a lavish new incentive package approved this week by S.C. lawmakers, one that includes $170 million in upfront grants for start-up costs.
S.C. Chamber of Commerce President Otis Rawl acknowledged to the Seattle Times today that those up-front incentives “go beyond what’s normally offered.”
Indeed, this would be among the largest up-front packages ever offered by the historically job-starved Palmetto State – and would be contingent on the company making a $750 million investment and creating 3,800 jobs in South Carolina.
Not all of that will be new job creation and investment, obviously, as North Charleston, S.C. is already home to two facilities that build the fuselage for Boeing’s 787 Dreamliner – an airplane that is years behind schedule and continues to be dogged by production problems.
Originally scheduled to fly in September of 2007, the plane has been plagued by numerous delays that have cost Boeing billions – earning it the nickname “Nightmare Liner.”
In an effort to consolidate its supply chain, Boeing purchased one of the two S.C. Dreamliner plants from Vought Aircraft back in July. It owns half of the other S.C. plant with Global Aeronautica.
The two South Carolina facilities currently employ 2,500 workers – meaning that Boeing would theoretically only have to create 1,300 jobs at its new 787 facility to obtain access to all that the taxpayer cash.
In addition to South Carolina’s up-front incentives, Boeing would get a whole batch of other perks. Tax breaks on building materials, computer equipment, even the jet fuel it will use for test flights are reportedly part of the deal.
On top of that, Boeing would not have to pay corporate income tax for five years.
Meanwhile, in Washington State – which is also in the running for the 787 plant – talks broke down between Boeing and the International Association of Machinists (IAM) union, prompting U.S. Sen. Patty Murray to call for emergency negotiations aimed at keeping Boeing jobs in Everett, WA.
A source familiar with the negotiations told the Seattle Times that the talks were “effectively dead.”
By Stimulus October 28, 2009 at 2:08 pm
giving away the farm to have their execs move here. smart, real fing smart.
By larry October 28, 2009 at 2:26 pm
Welcome, our Boeing friends, to the greatest state in the USA!
By rebel October 28, 2009 at 3:44 pm
Love this quote from another news outlet: “The union wants to continue talking,” the source told the paper, who is not aligned with the union. “The Boeing Co. does not want to talk any further.” South Carolina thanks you IAM!
By Crooner October 28, 2009 at 3:57 pm
So the government is giving away goodies so Boeing can avail itself of cheap non-union labor. Anybody analize how long it will take to recoup our investment? Does Boeing get an out if the new work force organizes? Or did we agree to protect them from that?
By Liberty For Me October 28, 2009 at 4:57 pm
Tax breaks make sense…But what do grants mean??
This is how politicians who make 75g come home a millionaire..crooks!!!
By No Way! October 28, 2009 at 5:38 pm
I could not be more excited for South Carolina and the Charleston area! This is great news for the state. I lived in the Greenville area when BMW located its first plant in the U.S. You cannot begin to believe the positive impact it has on the upstate. That is in addition to Michelin Tire locating its North American Headquarters there. This is a major win! The people who put this deal together deserve a hearty thanks! These are good jobs with excellent benefits! Look everywhere else! Detroit, Seattle, ect who link with Obama will soon depend on hum wholly for support. South Carolina brings home the jobs with honest, hard working people!
By owen October 28, 2009 at 10:27 pm
Am i the only person bothered by the fact that the entire state legislature lied to the public about the reason for this weeks session? It is clear that this tax give-away deal was the reason. This is beside the fact that it contradicts everything that conservative SC pols have always professed about the role of government in business.
By SnakeMD October 29, 2009 at 7:19 pm
Look what the unions did to GM and Chrysler. Companies like these die a slow death when they hook up with these stiffs. The unions at Winchester never allowed this, 100 year old +, firearms manufacturer to fully modernize. They closed up and reopened here under license with F and N Manf. What disturbs me is that Boeing is coming here with only lease agreements. They are renters until they get a foothold. I hope it works for them as well as SC. Folks in southern California brag about how much the corporations there pay their employees and here in SC the companies brag about how little they pay their employees. So, basically we are couple of pay scales above China. However, any job is better than no job. Wonder how many South Carolinians will get hired? There will be 50,000+ applications coming in from all over the nation. Maybe Boeing should get additional incentives for each SC resident they hire. Full throttle to the wall…