ST. LOUIS — One of the city's biggest employers' expansion plans was approved Wednesday afternoon in a possible 47-year deal with the St. Louis International Lambert Airport after pitching it to county leaders earlier this week.
According to the Airport Commission, the airport signed an official ground lease and development agreement with Boeing, an American-owned aircraft and aerospace industry company, on Aug. 8. The agreement allows Boeing to lease and redevelop certain areas of the airport grounds adjacent to the airfield for a multiphase aeronautical manufacturing project for up to 47 years.
Effective Wednesday, the aircraft company can utilize about 158 acres of land, in the “Phase 1 Development Area,” according to the agreement. This area includes the Brownleigh property and an eastern portion of the Northern Tract site, and the former McDonnell Douglas site where manufacturing facilities are located.
Editor's note: The video above is from Aug. 8, 2023.
"This is key to significantly growing our advanced manufacturing capabilities at the site,” said Randell Gelzer with Boeing.
Boeing's $1.8 billion investment will create hundreds of new jobs, paying on average $90,000.
"This will allow us to compete for those next franchise programs in St. Louis,” Gelzer said.
At a St. Louis County committee meeting Tuesday, there was support from community partners.
"It is not often that you see competitive projects of this size considering St. Louis,” said Maggie Coates with Greater STL, Inc.
"The creation of 500 new, high-paying, full-time jobs, which will build upon the existing 16,000 employees,” said Rodney Crim with the St. Louis Economic Development Partnership.
The head of St. Louis Lambert International also spoke in favor of the request.
"Boeing sits in our backyard. They share our runway with us every day,” Director Rhonda Hamm-Niebruegge said.
She said Boeing's ask aligns with the airport's goals to increase foot traffic because as businesses expand, so do passengers coming in and out of the airport. She also said the airport has goals of beautifying its campus.
"Taking the undeveloped, unutilized land that we own and turning it into something to enhance the area around the airport … take the eyesore out of there, take down the old decrepit buildings and we’ll see bright and new facilities on our campus at our airport,” she said.
One person spoke against the measure, a taxpayer, who is concerned about a big business like Boeing getting subsidies.
The initial deal is about 17 years and is set to expire by Dec. 31, 2040, according to the lease agreement.
Boeing can extend the deal to capitalize on six additional expansion options on airport grounds for five years each. If they choose to extend the deal, then the extended deal would set to expire on Dec. 31, 2026. Boeing would then have the option to lease a part of the western portion of the Northern Tract site, in the “Phase 2 Development Area,” upon the lease expiration date.