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Boeing, region’s officials to sign 7E7 agreement today

Published 9:00 pm Thursday, December 18, 2003

By Bryan Corliss / Herald Writer

The 7E7 agreement between the Boeing Co. and state and local governments will be signed today in Everett.

A spokeswoman for Gov. Gary Locke said an afternoon signing ceremony was planned at Boeing.

Copies of the agreement were not available Thursday. But Locke’s office on Tuesday released a list of incentives including:

  • Cutting the business and occupation tax rate in two stages, saving Boeing and aerospace-related companies $224 million in the 2007-09 biennium. After the second reduction, in July 2007, the rate will be 40 percent lower.

  • Offering state research and development tax credits for aerospace design and engineering, as well as a sales tax exemption for computers, hardware and software used in product development, design and engineering.

  • Offering a business and occupation tax credit to offset property taxes paid on new 7E7-related construction.

    In addition:

  • Legislators also approved a $4.2 billion statewide transportation-improvement package.

  • The state also established a board to plan a workforce training program for Boeing and its suppliers, and agreed to set up an aerospace manufacturing program at the state’s community colleges to train 7E7 workers.

  • Washington officials also have offered to help Boeing develop its proposed air freighter program, the plan to convert three 747s into special carriers to fly wings from Japan to the Everett site.

    Port of Everett commissioners will hold a special meeting at 7 a.m. this morning to authorize executive director John Mohr to sign the agreement on behalf of the port.

    In other 7E7-related news Thursday, the Federal Aviation Administration announced the creation of its first composites research center at the University of Washington.

    The new FAA Center of Excellence will coordinate research into composite materials and aluminum alloys such as those Boeing plans to use on the 7E7.

    The center will be "a key partner in getting the 7E7 into the air," said U.S. Sen. Maria Cantwell, D-Wash., who had pursued the funding for it. "This composites research center is a great boost to the future of manufacturing in Puget Sound."

    The FAA will invest between $300,000 and $500,000 to start the program, and at least $300,000 a year for the next two years.

    Washington State University, Oregon State University and Edmonds Community College also will contribute to the center, as will a number of companies including Boeing, Hexcel Composites of Burlington and Integrated Technologies of Bothell.

    And while much attention has been focused this week on the new jet program and the future jobs it will bring, the current slump continues to take its toll on the Boeing workforce.

    The company today will issue 60-day layoff warnings to 164 Puget Sound workers, a spokeswoman said. Those people will work their last day on Feb. 20.

    Reporter Bryan Corliss: 425-339-3454 or corliss@heraldnet.com.

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