ChicagoLover
February 26th, 2005, 10:59 PM
A REAL long shot it would seem, but oh so sweet. I hope Illinois is offering more than the Texas cities. Austin is great in so many ways, but comon, the skyline and urban feel is pathetic compared to Chicago. Freescale should come and move into IBM's old space at 350 N. Wabash.
Cicago vies for tech HQ
Making case for Moto chip spinoff Freescale to move 600 jobs here
February 28, 2005
By Julie Johnsson
Chicago is vying with two other cities to land the corporate headquarters of Freescale Semiconductor Inc., a recent Motorola Inc. spinoff and Fortune 500 company.
Local government officials and business leaders are pulling out the stops to impress executives at the semiconductor maker, which plans to decide on a headquarters by the end of March. At stake: up to 600 headquarters jobs and 150,000 square feet of office space.
A delegation of state, city and business leaders traveled last week to Freescale's current headquarters outside Austin, Texas, to make their case to Freescale CEO Michel Mayer.
Among those involved in the pitch: City Planning Commissioner Denise Casalino; Gerald Roper, president and CEO of the Chicagoland Chamber of Commerce, and Paul O'Connor, executive director of World Business Chicago, which promotes economic development. Chicago Mayor Richard M. Daley also urged Mr. Mayer in a telephone call to make the Second City his first choice.
Freescale CEO Michel Mayer
But Chicago is a latecomer — and a long shot. The city and Freescale have been in talks for about five weeks, while Freescale has been vetting other cities for months.
"In the beginning our first inclination was that they were just going to use us as a lever against Austin," Mr. O'Connor says. "We don't feel that way anymore. It's dangerous to open the door to Chicago."
Austin and Fort Worth, Texas, the other finalist, also made presentations to Freescale in recent days, a Freescale spokesman says. "Basically, we're looking for a city that offers an attractive lifestyle, convenient travel connections and a compelling incentives package," he says.
HEARKENS BACK TO BOEING
The high-stakes scramble to land Freescale, the nation's third-largest semiconductor manufacturer, with $5.72 billion in 2004 revenues, is reminiscent of the beauty contest surrounding Boeing Co.'s relocation three years ago, when city and state officials wooed the aerospace giant by offering up to $63 million in incentives.
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"We've stood toe to toe with all those other cities and we are getting wins," says Jack Lavin, director of the Illinois Department of Commerce and Economic Opportunity, who sent two top aides to Texas.
Freescale, which has been independent of Motorola for just three months, isn't a household name like Boeing. But Motorola's former chip business does have ties to the area dating back 50 years. Gaining Freescale would boost Chicago's efforts to establish a technology community while restoring some of the luster lost with the recent sales of Bank One Corp., Orbitz Inc. and Sears, Roebuck and Co.
To lure Freescale, the state of Illinois is offering up to $20 million in payroll tax credits, according to people familiar with the package. The city of Chicago may provide additional financing, depending on where Freescale would base its headquarters.
AUSTIN NOT A TRAVEL HUB
Freescale employs 6,000 workers in Austin, about 600 of whom work at its headquarters, the rest at a manufacturing plant.
While Austin has a thriving arts scene and warm climate, it's no transportation hub. That's a hassle for executives at a global corporation who must manage operations and tend to clients in Asia and Europe.
Mr. Mayer, who joined Freescale in May, has made no secret of his desire to move to a larger city that's a global aviation center. A Parisian and career IBM Corp. executive, he owes no allegiance to Austin or Texas.
CEOS IN ON EFFORT
About 15 chief executives of Chicago's largest companies, including Motorola CEO Edward Zander, have called or written Mr. Mayer in recent weeks touting Chicago, according to people familiar with the effort.
But Austin remains the front-runner, says Angelos Angelou, an Austin-based economic development expert. His city's edge, he says: It can offer a slew of perks for Freescale's manufacturing plant, while other communities will be limited to offering incentives only for the 150,000-square-foot headquarters.
"This is a very important project for Austin to keep," Mr. Angelou says.
Greg Hinz contributed to this report.
Cicago vies for tech HQ
Making case for Moto chip spinoff Freescale to move 600 jobs here
February 28, 2005
By Julie Johnsson
Chicago is vying with two other cities to land the corporate headquarters of Freescale Semiconductor Inc., a recent Motorola Inc. spinoff and Fortune 500 company.
Local government officials and business leaders are pulling out the stops to impress executives at the semiconductor maker, which plans to decide on a headquarters by the end of March. At stake: up to 600 headquarters jobs and 150,000 square feet of office space.
A delegation of state, city and business leaders traveled last week to Freescale's current headquarters outside Austin, Texas, to make their case to Freescale CEO Michel Mayer.
Among those involved in the pitch: City Planning Commissioner Denise Casalino; Gerald Roper, president and CEO of the Chicagoland Chamber of Commerce, and Paul O'Connor, executive director of World Business Chicago, which promotes economic development. Chicago Mayor Richard M. Daley also urged Mr. Mayer in a telephone call to make the Second City his first choice.
Freescale CEO Michel Mayer
But Chicago is a latecomer — and a long shot. The city and Freescale have been in talks for about five weeks, while Freescale has been vetting other cities for months.
"In the beginning our first inclination was that they were just going to use us as a lever against Austin," Mr. O'Connor says. "We don't feel that way anymore. It's dangerous to open the door to Chicago."
Austin and Fort Worth, Texas, the other finalist, also made presentations to Freescale in recent days, a Freescale spokesman says. "Basically, we're looking for a city that offers an attractive lifestyle, convenient travel connections and a compelling incentives package," he says.
HEARKENS BACK TO BOEING
The high-stakes scramble to land Freescale, the nation's third-largest semiconductor manufacturer, with $5.72 billion in 2004 revenues, is reminiscent of the beauty contest surrounding Boeing Co.'s relocation three years ago, when city and state officials wooed the aerospace giant by offering up to $63 million in incentives.
continued below
Advertisement
"We've stood toe to toe with all those other cities and we are getting wins," says Jack Lavin, director of the Illinois Department of Commerce and Economic Opportunity, who sent two top aides to Texas.
Freescale, which has been independent of Motorola for just three months, isn't a household name like Boeing. But Motorola's former chip business does have ties to the area dating back 50 years. Gaining Freescale would boost Chicago's efforts to establish a technology community while restoring some of the luster lost with the recent sales of Bank One Corp., Orbitz Inc. and Sears, Roebuck and Co.
To lure Freescale, the state of Illinois is offering up to $20 million in payroll tax credits, according to people familiar with the package. The city of Chicago may provide additional financing, depending on where Freescale would base its headquarters.
AUSTIN NOT A TRAVEL HUB
Freescale employs 6,000 workers in Austin, about 600 of whom work at its headquarters, the rest at a manufacturing plant.
While Austin has a thriving arts scene and warm climate, it's no transportation hub. That's a hassle for executives at a global corporation who must manage operations and tend to clients in Asia and Europe.
Mr. Mayer, who joined Freescale in May, has made no secret of his desire to move to a larger city that's a global aviation center. A Parisian and career IBM Corp. executive, he owes no allegiance to Austin or Texas.
CEOS IN ON EFFORT
About 15 chief executives of Chicago's largest companies, including Motorola CEO Edward Zander, have called or written Mr. Mayer in recent weeks touting Chicago, according to people familiar with the effort.
But Austin remains the front-runner, says Angelos Angelou, an Austin-based economic development expert. His city's edge, he says: It can offer a slew of perks for Freescale's manufacturing plant, while other communities will be limited to offering incentives only for the 150,000-square-foot headquarters.
"This is a very important project for Austin to keep," Mr. Angelou says.
Greg Hinz contributed to this report.