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Tuesday, November 18, 1997

Decision near on Boeing's plans for Kelly Air Force Base

SAN ANTONIO (AP) - The city could learn next month whether the Boeing Co. of Seattle will bring more than 500 aircraft-maintenance jobs to facilities at Kelly Air Force Base.

Boeing's decision depends on whether considerable improvements are made to an existing base hangar, Navarra Williams, chairman of the Greater Kelly Development Corp., was quoted as saying in Monday's San Antonio Express-News.

Kelly, one of the city's largest employers, is to close in 2001.

The Greater Kelly Development Corp., formed by the city last year to redevelop the base, held a two-hour, closed-door meeting Sunday on the latest discussions between Kelly officials and Boeing executives.

If the two sides reach an agreement, Boeing could bring more than 500 jobs to San Antonio by spring, Williams said.

The talks are down to negotiations over lease rates, according to Mayor Howard Peak, who met with Boeing officials last week.

"Without unnecessarily raising expectations, I am optimistic about our chances with Boeing so far," Peak said.

Boeing reportedly wants improvements to the huge C-5 cargo plane hangar as well as equipment used by the Air Force and plenty of skilled workers.

Boeing spokesman Fernando Vivanco said the company does not comment on details of ongoing business discussions.

It was announced last week that President Clinton will sign the $268 billion defense bill that restricts privatization at Kelly AFB. Clinton promised in a speech to soften the economic impact of the defense bill with a package of economic aid for San Antonio.

The Greater Kelly Development Corp. already sent the White House a request for aid. It wants at least some of the money to go toward the improvements sought by Boeing. Send a Letter to the Editor about This Story | Start or Join A Discussion about This Story
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