ST. CHARLES — Boeing Co. plans a $70 million expansion of its missile and munitions plant on the city’s north side, aided by about $18 million in property tax abatement expected to be approved by city officials.
Sarah Reed, a Boeing spokeswoman, said the company currently doesn’t expect to add any employees at the St. Charles site because of the expansion.
However, she said, “it’s going to secure production and operation and a skilled workforce at the site now and in the future.”
Reed said the tax abatement would be spread over 20 years. No county or state incentives are being provided, she said.
She said a new building would be constructed on the northeast corner of its existing plant site. Groundbreaking likely will take place later this year and completion is expected by 2021.
The Pentagon last month announced that Boeing has been awarded a $6.5 billion contract for JDAM tail kits, spares and technical services. Reed said, however, that plans for the expansion already were in the works and aren’t a result of that contract.
Reed said the arrangement with St. Charles also calls for Boeing to use about 110 acres of city-owned land north of the company’s current St. Charles footprint to expand its security perimeter.
For security and safety purposes, she said, Boeing will pay the city for an agreement that restricts the land’s use and allows the company to fence it off. Details on how much the city will be paid have yet to be worked out.
Mayor Dan Borgmeyer said the acreage is flood buyout land near the Missouri River that the city for years has held for possible development into a park.
He said the proceeds from the agreement may be used to help develop other park land, perhaps near the nearby New Town development.
The St. Charles City Council on Tuesday night was expected to consider a resolution directing city staff members and attorneys to work with Boeing on the tax abatement plan.