Aug. 14—The Boeing Co. wants to expand its footprint in the St. Louis region by a million square feet, 500 new employees and a $1.8 billion investment. But to do it, the company says it needs government subsidies.
Company representatives and regional economic development boosters are now making their case for the tax breaks. The St. Louis County Council could consider them again on Tuesday.
Here are eight things to know about the proposal:
What do we know about the plan?
Boeing's project at its north St. Louis County complex will support "new aerospace programs." The plan, if approved and built, would be one of the biggest defense projects in the region's history.
The company has said the project would expand manufacturing potential for "future franchise programs." At its existing St. Louis facilities, Boeing specializes in building fighter jets for the U.S. Department of Defense and employs 16,000 people.
The project would include constructing multiple buildings and leasing space totaling a million square feet at two sites adjacent to St. Louis Lambert International Airport. But the company said it needs tax breaks from St. Louis County to be competitive as it competes for future contracts with the Department of Defense.
A proposal pending before the St. Louis County Council would give Boeing half off on the project's real and personal property taxes over 10 years in exchange for the new jobs and investment — saving the company an estimated $155 million in taxes over the decade.
What don't we know?
Boeing hasn't said publicly what it will be making at its expanded facilities, only that it will involve "advanced manufacturing." But the plan comes as the aerospace industry ramps up for a national competition to build the next generation of U.S. fighter jets. The Department of Defense is expected to make a decision next year on who gets those contracts.
What's at stake?
Boeing promises the new facility will bring 500 jobs to the region, plus an economic ripple effect: For every job it creates, it expects two to three additional jobs will be created.
Those jobs could be in the service industry, such as in restaurants, or in companies that supply Boeing. The company does business with more than 280 suppliers in the state, according to Randell Gelzer Jr., senior director of state and local relations for Boeing.
While Boeing is set to save an estimated $155 million in taxes over 10 years if the deal is approved, it will also pay the same amount in taxes. The public finance law firm helping broker the deal said the Ferguson-Florissant School District can expect to receive an estimated $79 million of that.
Boeing could still take the project elsewhere, said Maggie Kost, who works to attract businesses to the region with the booster organization Greater St. Louis Inc.
But Gelzer said St. Louis is Boeing's top choice.
How much will it cost?
Boeing's pitch now is for a $1.8 billion facility. The tax breaks, if passed, would relieve the company of paying $155 million in taxes over 10 years.
The plan doesn't cost county taxing districts any existing tax revenue.
Has Boeing gotten tax incentives in the past?
Yes, both from St. Louis County and the state of Missouri.
The county agreed to a deal in 2021 with Boeing providing half off real and property taxes over 10 years — an estimated $3.1 million in savings. The company said the incentives would help it finance a $45 million investment in "advanced manufacturing" capabilities at its north St. Louis County campus.
In 2015, the state offered $229 million over 18 years to Boeing if the company added 2,000 jobs. If it maintained current jobs, then numbering 14,500 employees, for a decade, the company could collect $146 million.
The deal came as local officials worried the company's local employment might shrink as fighter pilot programs wound down.
The company is compliant with the requirements of that deal, said Michelle Hataway, acting director of the Missouri Department of Economic Development.
Is anyone opposed to it?
A few regular critics of St. Louis County government oppose the plan, and at least one County Council member — Councilwoman Kelli Dunaway, a Democrat from Chesterfield — has reservations about subsidizing Boeing.
But states across the nation are fiercely competitive regarding jobs and development, offering millions of dollars in tax incentives to corporations. Cobb County, Georgia, for instance, has agreed to tax abatements worth $77.9 million for Lockheed Martin, another defense giant that may compete against Boeing for future fighter jet contracts.
In St. Louis County, the plan needs four votes on the seven-member council to pass. Councilmembers heard from a slate of about a dozen regional leaders last week who support giving Boeing the tax break, and no officials have fully opposed it publicly yet.
Why is Lambert airport in the mix?
Boeing wants to lease about 158 acres of land at St. Louis Lambert International Airport for its expansion project. The company would initially pay rent of about $2.63 million per year under a plan submitted last week.
The lease calls for an initial rent payment in 2026 or when the aerospace giant begins using the new manufacturing complex it hopes to build, whichever is sooner. After that, at least that amount would be paid annually during the remainder of the 17-year lease, totaling more than $39 million. In addition, there could be periodic increases in the rent tied to the consumer price index. Boeing would have options to continue the lease in five-year increments through 2070.
The rent from Boeing would represent a key revenue stream, said airport Director Rhonda Hamm-Niebruegge. Some "old, decrepit" buildings would be torn down, and undeveloped land would be put to use, she said. The airport could also see an increase in travelers, Hamm-Niebruegge said, here to do business with Boeing.
"Every time there's an opportunity for a business to grow, there's an opportunity for our passenger traffic to grow," Hamm-Niebruegge said.
What happens next?
The County Council will have to take a vote on the measure, likely in the coming weeks. If it passes, St. Louis County Executive Sam Page would have to sign it.
The Airport Commission approved the lease last week but it will also have to be approved by St. Louis' chief fiscal body, the Board of Estimate and Apportionment, which is expected to consider the lease this week. Approval also is needed from the city Board of Aldermen because even though the airport is in St. Louis County, it's owned and operated by the city. The Board of Aldermen returns from recess in mid-September.
But if Boeing doesn't land a major contract with the Department of Defense, the company would be able to cancel its agreement with Lambert, Hamm-Niebruegge said. And the deal with St. Louis County would be off the table, according to Kristin Lappin, a spokeswoman for the St. Louis Economic Development Partnership. The St. Louis County agency is helping negotiate the deal.
Mark Schlinkmann of the Post-Dispatch contributed to this report.
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