Tuesday, February 01, 2000
Delta keeps jobs downtown
City coughs up $3.6 million
BY ROBERT ANGLEN
The Cincinnati Enquirer
An incentive package of at least $3.6 million will keep 1,000 Delta Air Lines jobs downtown.
After threatening to move its reservation call center to Northern Kentucky, Delta has tentatively agreed to build a new office on Seventh Street between Plum Street and Central Avenue.
Mayor Charlie Luken said Monday the deal proves the city can compete with the suburbs to maintain jobs.
“Nobody likes to give away money to keep jobs in the area,” he said during a news conference at city hall. “This is a case where the city fought hard and has a victory.”
That victory isn't cheap for taxpayers, who will give Delta $250,000 a year for 10 years on top of a $1.1 million loan from the state of Ohio .The city's portion of the money will go to buy upgraded equipment for the reservation center.
City Manager John Shirey said the annual $250,000 from the city is about half of the $500,000 the company'semployees pay to the city in earnings tax.
“There was a lot of incentive ... to keep us down town,” Delta spokeswoman Peggy Estes said. “We want a state-of-the-art facility.”
Of eight Delta reservation centers nationwide, the Atrium One offices building on East Fourth Street costs the most to maintain, company officials said. That's mostly because of parking, which is about $500,000 a year.
The building — Mr. Luken and Mr. Shirey said Delta did not want plans for it shown — will be about six stories tall and include parking.
The site is now a parking lot, adjacent to a parking garage that will remain. While no date for construction has been set, Ms. Estes said Delta wants to be able to move into the new building when its lease expires in July 2001.
Mr. Shirey said he is not concerned that Delta's relocation will create more vacant office space. He said the Atri um is an attractive property and will be quickly leased.
Other sites Delta looked at were near the University of Cincinnati and in Northern Kentucky, where the airline operates a hub at the Cincinnati/Northern Kentucky International Airport.
Before the deal is official, Delta must accept the incentives and City Council must sign off on it.
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