PUSH ON FOR BOEING JOBS PALMDALE CITY COUNCIL TOUTS TAX CREDITS.

Byline: Jim Skeen Staff Writer

PALMDALE - State tax credits potentially worth as much as $99 million are part of the package Palmdale is offering to attract assembly work for a new Boeing jetliner that could bring in as many as 800 to 1,200 jobs.

Palmdale's enterprise zone will figure prominently in the city's bid to attract assembly work for Boeing's jetliner. Businesses in the zone can receive tax credits for equipment purchases and for hiring employees through a variety of state programs.

``Based on a $900 million investment, 60 percent of which is for machinery and equipment, the potential savings from the sales- and use-tax credits, when coupled with the state's manufacturing investment credit, could be as much as $76 million dollars,'' said Carrie Rogers, Palmdale's enterprise zone manager. ``The impact from the hiring tax credit will also be substantial and could reach as high as $23 million.''

Palmdale's case for landing the work on the jetliner was outlined Wednesday night when the City Council passed a resolution in support of Site 9, the former B-1B bomber assembly plant, as a candidate for the 7E7 assembly site.

The resolution was passed as an urgency measure, with the city facing a June 20 deadline that comes before the next council meeting.

Boeing plans to build up to 3,000 7E7 jets over a 30-year period, starting in 2005. The program is expected to create 800 to 1,200 direct jobs and as many as 2,000 to 3,000 support jobs.

Sites in at least 10 states and a half-dozen California communities are expected to vie for the project.

Boeing officials will not comment on the site selection. A spokesman states on the company's Web site:

``Boeing intends to build the 7E7 in a location that gives it the best opportunity to be successful. Boeing's top priority is to ensure a fair and rigorous process that results in the right decision for the 7E7 program.

``In order to protect the integrity of the selection process and to treat these communities respectfully, Boeing will not identify which states submit proposals; nor will we discuss the ongoing activity.''

At Site 9 Palmdale, in conjunction with the city of Los Angeles World Airports, can offer a ready-made aircraft assembly complex in addition to the opportunity for tax credits.

Site 9 at Avenue P and 30th Street East has more than 1.3 million square feet of manufacturing and office floor space. It was used by what was then Rockwell North American Aircraft, now part of Boeing, to build 100 B-1B bombers during the 1980s.

Palmdale also offers more than 340 days of good flying weather, access to two 12,000-foot-long runways and access to flight test ranges at Edwards Air Force Base.

Palmdale Mayor Jim Ledford said the effort to attract work on the the 7E7 will be patterned after the campaign to land jobs in the joint strike fighter program. In that effort, state, civic and city agencies identified attractions that ranged from fee waivers to state tax credits.

The joint strike fighter assembly work ended up going to Texas, but Northrop Grumman will assemble fuselage sections, and Lockheed Martin will manufacture components in Palmdale.

``I think our action in regards to the joint strike fighter is a great template for this effort,'' Ledford said, pointing out that the Antelope Valley has a lot to offer.

Other states whose officials have publicly disclosed interest in pursuing the 7E7 production include Washington, Indiana, South Carolina, Ohio, Georgia, Arizona, Kansas, Texas and Wisconsin.

The 7E7 is Boeing's attempt to bring big-jet ranges to midsize airplanes. The 7E7 is being designed to carry 200 to 250 airline passengers on trips of 7,200 to 8,000 miles.

Boeing is projecting that the aircraft will use 15 percent to 20 percent less fuel than other wide-body aircraft.

Production will begin in 2005. The first flight is expected in 2007 and delivery to the first airline customers is expected in 2008.