Boeing Mulls Sale Leaseback of Everett WA Property Holdings

The Daily Herald - January 28, 2004

The Boeing Co. has approached the Port of Everett to see whether the public agency would be willing to buy company buildings in Everett and then lease them back. There haven't been any specific discussions, and any deal would not involve the company's massive 98 acre main factory building, said John Mohr, the port's executive director, in acknowledging the discussions.

The sale-leaseback deal would be different from the rumored sale of Boeing's Wichita facilities. But it would fit in with a broader pattern that Boeing has followed in recent years -- reducing the company's real estate holdings. Boeing has been steadily reducing its real estate holdings around Puget Sound, selling land in Kent and consolidating in Renton.

Boeing broached the idea with the port during the 7E7 site selection process, Mohr said. Boeing's 7E7 contract with the state spells out that the property tax breaks the company will get for assembling the new jet in Everett also would apply to any leasehold taxes the company pays in lieu of property taxes, should it decide to sell any buildings and rent them from the port. There haven't been any further discussions since the contract was signed in December, Mohr said. But the port has the authority to make that kind of deal and would be willing as long as the port and company could agree on terms, he said.

The Snohomish County Assessors Office values the factory and the buildings immediately around it at $429.4 million. Boeing's buildings adjacent to Paine Field and its Seaway office center are assessed separately.

A Boeing spokeswoman said it was too early to speculate on whether the company will pursue the leaseback option. Boeing CEO Harry Stonecipher on Tuesday denied that such a sale is being considered. Sphere: Related Content