"We're here not because we wanted to leave Seattle but because we wanted to build a bigger and more capable Boeing company," says Boeing Chairman and CEO Philip M. Condit at a Midway Airport press conference. "I've got to tell you, it was a difficult decision, and no single factor made the difference."

Condit, Illinois Gov. George Ryan and Mayor Richard M. Daley announced the aircraft maker has agreed to a long-term lease with Lend Lease Real Estate Investments, Inc. for 270,000 sf on the top 12 floors at 100 N. Riverside Dr., a 36-story office tower in the West Loop that was the former headquarters for Morton International.

The two leaders put together an incentive package laden with short- and long-term tax breaks to lure Boeing's 500 executive level and administrative jobs here. The incentive package came under criticism when it weas reported to be $50 million by some who questioned the size in relation to jobs gained. However, Ryan pointed to a study by Arthur Andersen LLP that says the economic impact of Boeing's move means $4.5 billion to the region over 20 years.

While Dallas/Fort Worth had been considered the front-runner here given its heavyweight political connections in the White House and Congress, Chicago emerged as the favorite of a Boeing search committee. One negative, O'Hare International Airport's notorious air traffic congestion, was outweighed by the city's closer proximity to New York City's capital markets and Washington, DC, as well as the option of Midway. Condit, however, had the final say.

"We looked at all the data and we believe Chicago is the best place for Boeing," says Condit, whose top management team already has begun scouting the residential housing market in upscale suburbs such as Barrington, Lake Forest, Wilmette and Winnetka.

Built in 1989, the 737,500-sf 100 N. Riverside Plaza was sold in December 1997 for $162.2 million. Besides beating out competitors in two other cities, the building, managed by ORIX Real Estate Equities, bested at least three other Downtown locations as well as suburban sites in Bannockburn, Elgin, Rolling Meadows, Schaumburg and Westmont.

Lend Lease was represented by The John Buck Co., leasing manager for the building, while Cushman Realty Corp. represented Boeing.