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CHICAGO-After exploring San Francisco and Denver, United Airlines has selected 77 W. Wacker Dr. as its new headquarters. The new location, of which the company will occupy 130,000 sf, will allow the company to consolidate its current operations in Elk Grove Township.

Although terms were not disclosed, asking lease rates at the 14-year-old building owned by a joint venture led Prime Group Realty Trust start at $23 per sf. The airlines will move 350 employees to a portion of the 225,000 sf left behind by RR Donnelley, and will receive naming rights to the building.

Despite several attractive offers from vying cities, Illinois’ persuasive package sealed the deal for airlines. Under the agreement, United will receive $5.25 million in tax increment financing from the city and $1.35 million in grants from the Illinois Department of Commerce and Economic Opportunity for infrastructure improvements and job training. Further, both the city and the state have vowed to propose legislation for a jet fuel tax cap for the next five years.

“This brings approximately 350 jobs and the headquarters of a Fortune 100 company into our city,” said Mayor Richard M. Daley in a statement Saturday announcing the relocation. “United’s move is part of a powerful trend that has seen a number of major companies establish headquarters in Downtown Chicago. This is a great day for United and for the City of Chicago.”

This marks the second airline that has relocated to the city. In 2001, Boeing Co. moved approximately 400 employees to 100 N. Riverside from its former base in Seattle.

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