Locke remains optimistic as 7E7 decision nears

SEATTLE — Washington state remains a contender to land Boeing’s 7E7 jet assembly project, Gov. Gary Locke said Thursday, as Boeing drew closer to announcing where it plans to build its proposed new jet.

Locke said the state has put together a strong proposal to show Boeing that it should build the proposed midsized jetliner in Washington, where the aerospace manufacturer already builds all but one of its commercial jets.

"We showed we are passionately committed to keeping our great companies in the state of Washington," he said at a Greater Seattle Chamber of Commerce breakfast. "We’re cautiously optimistic and keeping our fingers crossed. But the competition from other states is intense."

The state has already done much to improve its competitiveness, such as revamping unemployment and worker’s compensation insurance programs, he said. He also touted legislation to fund transportation improvements.

But as Locke spoke, the state Supreme Court issued a ruling upholding Initiative 776, which abolished local taxes and fees on vehicle registration — including a prime source of funding for the Sound Transit light-rail project in central Puget Sound.

Boeing, which has long complained about how traffic and poor transportation hurts its competitiveness, has been a major supporter of Sound Transit.

It’s too early to say what impact the initiative will have, Boeing spokesman Chuck Cadena said. "Going forward, if this is part of the reality, it’s what we as a region have to deal with and figure out how we fund transportation improvements," Cadena said. "It becomes part of that calculus."

The state has tried to persuade Boeing to stay in Washington with a $3.2 billion package of tax incentives for the aerospace industry if Boeing builds the 7E7 at one of Washington’s two sites — in Everett, where Boeing builds its wide-body planes, and in the central Washington town of Moses Lake.

Earlier this year, Boeing solicited bids from states interested in hosting the final assembly plant. States including Texas, South Carolina and Georgia are reportedly in the running, although Boeing has not commented on its deliberations.

Boeing said it would announce its decision by the end of the year. It is also scheduled to decide whether to offer the 7E7 for sale to airlines later this year, with a final decision next year on whether to officially launch the new airplane in 2004.

Locke said Washington state is "still a contender," based on conversations with Boeing officials.

Still, the state needs to do more to improve competitiveness, particularly by improving higher education, Locke said. The state needs a stable source of funding so universities can provide Washington students with the education and training that will prepare them for top jobs, he said.