[Chicago2020]

United HQ heading for Chicago
Officials expected to announce move to 77 W. Wacker this weekend

(Crain’s) — Chicago has emerged as the all-but-certain location for United Airlines’ new headquarters, sources close to the matter reported late Thursday, with the carrier likely to move 350 top staffers to a high-rise at 77 W. Wacker Dr. overlooking the Chicago River.

Sources said that an announcement that “Chicago’s hometown carrier” is staying home may come by the end of the weekend. The announcement would follow what are described as serious talks during the week between United and the owners of the 77 W. Wacker, where R.R. Donnelley & Sons Co. formerly was based.

United, which currently is based in suburban Elk Grove Township, has 16,000 employees in the Chicago area, more than in any other metropolitan region. But the firm has made clear its decision would be based on its own financial situation, and the city and state reportedly have responded with an incentive package worth more than $20 million to United, which emerged from bankruptcy earlier this year.

The proposed perks include tax increment financing, job training credits and possible relief from city and state jet fuel taxes that would also be extended to other airlines that purchase significant amounts of fuel in Illinois.

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Also on the table: whether United still has exclusive rights to its gates at O’Hare after defaulting on bonds used to finance the facility while it was operating under Chapter 11 protection. The airline is still litigating that matter with the city in U.S. Bankruptcy Court.

San Francisco and Denver were also vying for United’s headquarters.

“We still continue to discuss our options with officials in Chicago, Denver and San Francisco,” a United spokeswoman, who declined to provide details on the talks, said earlier Thursday. Chicago and Illinois officials also have declined to discuss the items under negotiation.

While Denver economic development officials were prepared to make a rich offer to United, they were never asked to do so, says Tom Clark, executive vice-president for the Metro Denver Economic Development Corp. “We have not heard anything from United,” he says. “We don’t expect to hear anything from United.”

United officials are focusing on 77 W. Wacker Dr. after visiting several downtown office towers. Among the skyscrapers they also considered:

190 S. LaSalle, which formerly housed Mayer Brown Rowe & Maw LLP
115 S. LaSalle St., the Harris Bank complex
200 W. Madison St., space formerly occupied by Hyatt Corp.