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WASHINGTON BUSINESS
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Northrop to relocate to N.Va.
MD. AND D.C. LOSE OUT
Fairfax, Arlington sites under consideration
by Dana Hedgpeth and Rosalind S. Helderman
Northrop Grumman has cho-
sen Northern Virginia as the new home for its global headquarters, ending a heated competition among Virginia, Maryland and the District for the prestige of playing host to the defense con- tracting giant. Virginia Gov. Robert F. McDon- nell (R) announced the decision Monday night in a joint state- ment with Northrop, describing the selection as a victory for what he called his administration’s commitment to promoting busi- ness development. “To gain the corporate head-
quarters of one of the largest global security contractors in the world is a testament to the strong business climate that we are fo- cused on continually improving,” said McDonnell, who has sched- uled a news conference for Tues- day afternoon at Northrop’s Ross- lyn offices to discuss the move. The statement did not specify a
final site for the new headquar- ters. The company has been con- sidering locations in Fairfax and Arlington. Northrop is a major govern- ment contractor, with $25 billion in contracts, and is one of the re- gion’s largest employers, with roughly 40,000 workers in the Washington area and 120,000 worldwide. In January, Nor- throp’s newly picked chief exec- utive Wes Bush outlined plans to move the company’s headquar- ters from Los Angeles to be closer to the U.S. government, a shift that will involve about 300 head- quarters staff. Virginia, Maryland and the
District all sought to lure the company to within their borders. The District had proposed a package worth $25 million in tax breaks and grants. Maryland, too, offered incentives, and one state
As outlined by Wes Bush, president and chief executive of Northrop
Grumman, the move to the Washington area would bring a staff of about 300 from its current headquarters in California.
JOHN DAVID MERCER/PRESS-REGISTER VIA ASSOCIATED PRESS
senator in Maryland contended in a letter to Northrop’s chief ex- ecutive that he should choose Maryland over Virginia because the state is more friendly to gay residents. Northrop Grumman has won awards from gay rights groups for workplace policies. Bush gave credit to competi-
tive offers from Maryland and the District but said in Monday’s statement that the company’s “fi- nal decision was driven largely by facility considerations, proximity to our customers, and overall eco- nomics.” Though the exact package of inducements is not yet clear, Mc- Donnell had sought a number of changes from the General Assem- bly to help lure the company and provide a fertile ground for other businesses. He secured approval to use money from a state eco- nomic development fund to pay for renovations to private build- ings. The fund had previously been limited to developing public in- frastructure. The legislature also agreed to raise a cap on grants available to companies that cre- ate high-paying jobs. The state had been nearing a six-year, $30 million limit on the program. Because of the legislative change, the state can now spend another $30 million over the next six years, starting July 1.
And just last week, legislators agreed to reinstate a tax deduc- tion for Virginia manufacturers that legislators had previously agreed to begin phasing out. Aides to the governor told legisla- tors privately that Northrop
Monitor your investments at washingtonpost.com/markets.
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Grumman qualified for the do- mestic production tax break. The political stakes of Nor-
throp’s decision have been build- ing for McDonnell, who has en- dured several rocky weeks that included a turn on national cable news after he issued a proclama- tion in honor of Confederate His- tory Month that at first omitted reference to slavery. The Repub- lican had run for office in the fall pledging he could bring new business to Virginia with a com- mitment to limit regulation and keep taxes low. That political philosophy, Mc- Donnell indicated in the joint statement, had helped land the company. “This Administration will keep taxes and regulations and litigation at a minimum to at- tract job-creators from around the world to our state to ensure more new opportunities for all Virginians,” he said. Northrop Grumman’s unusu- ally public offer to move to the re- gion sparked criticism from some local officials who said the com- pany was asking for too much. Fairfax County officials, who
spoke on the condition of ano- nymity because the closed-door negotiations were private, said Northrop sought, among other things, money to help cover the moving costs of its employees and pay for country club mem- berships. It also sought the use of discounted county hangar space at Dulles International Airport for its corporate jet, sources said. It’s not clear if any money for those purposes is forthcoming. Fairfax County Board of Super-
visors Chairman Sharon Bulova (D) said that the county does not routinely offer cash incentives or tax breaks for a corporate reloca- tion. It is more common to see the county offer money in the form of infrastructure improve- ments, such as improved access roads. “We like to pursue projects that
offer tangible benefits to the pub- lic,” Bulova said. A state official familiar with the deal said that Virginia’s eco- nomic development officials were frustrated that Fairfax officials did not offer cash incentives. State officials said that if the com- pany had chosen another loca- tion, Fairfax officials would have had only themselves to blame. Some real estate brokers close to the deal and a Fairfax govern- ment source said they expect Northrop to pick a spot at the Fairview Park office complex in Fairfax because it is close to facil- ities the company already has in Tysons Corner, Rosslyn and other locations. Northrop had considered other
sites. In the District, it looked at lots at Fourth and E streets SW and Sixth and E streets SW, near Nationals Park. It also considered a planned office building on North Glebe Road in Arlington’s Ballston corridor and a location on Gaither Road in Rockville.
hedgpethd@washpost.com heldermanr@washpost.com
Staff writers Derek Kravitz, Jonathan O’Connell, Aaron Davis, Anita Kumar and John Wagner contributed to this report.
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12.1531
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0.4282
145.2700 53.8601 93.8700 7.7330 0.3707
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Landry'sRestaurants $25.03 19.3 UnitedFire&Casualty $23.26 19.3 Sonic Solutions Eastman Kodak Whirlpool NetFlix
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Pennsylvania REIT
10-year note
Yield:
5-year note
Yield:
3.81 2.56
4:30 p.m. New York time.
$13.96 11.6 $8.90 11.3 $112.42 10.0 $108.17 8.5 $103.21 7.8 $1.35
7.1
WinnebagoIndustries $16.93 6.9 Quiksilver
$6.00 6.2 $7.98 6.0 $16.98 5.9 $8.95 5.9 $13.82 5.2 $17.48 5.1 $15.62 5.0 $10.71 4.7 $69.81
4.3
$6.09 4.3 $15.84 4.3
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Charles River Labs PrivateBancorp Tuesday Morning
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Yield:
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Note: Bank prime is from 10 major banks. Federal Funds rate is the market rate, which can vary from the federal target rate. LIBOR is the London Interbank Offered Rate. Consumer rates are from Bankrate. All figures as of
$2.90 –10.2 $39.98 –9.9 $33.19 –7.9 $40.20 –6.4 $6.94 –6.0 $65.45 –5.8 $13.76 –5.4 $9.65 –5.3 $8.42 –5.3 $4.61 –5.1 $21.64 –5.1
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Faster Forward
ROB PEGORARO
Excerpt from washingtonpost.com/fasterforward
Another twist in the lost-iPhone saga
The already odd tale of the iPhone prototype accidentally left in a bar by a hapless Apple engineer, later displayed and dissected by the tech-news blog Gizmodo, just got upgraded to the next level of weirdness. As described in a Monday post on Gizmodo, a team of police
officers on Friday evening raided editor Jason Chen’s house. Armed with a search warrant, they carted off a variety of laptops, desktops, external hard drives, digital cameras and even a box of Chen’s business cards. What, exactly, investigators hope to find stored on those computers is unclear. So is the nature of the discussions that led to this search warrant. I am not a lawyer, so I don’t want to get into the finer points of California law on the possession or resale of stolen property. Here is what I do know . . . more or less:
Whoever originally found the phone in the Redwood City, Calif., beer garden Gourmet Haus Staudt — this person thought it was a regular iPhone at first, Gizmodo says — didn’t know the first thing about dealing with lost property in a bar or restaurant. You don’t take the phone home with you so you can try to guess the owner’s identity; you give it to the bartender or the manager so the poor slob who lost the thing can pick it up when the hangover subsides. This is not a complicated moral principle. Gizmodo paid $5,000 for the iPhone prototype and apparently wasn’t too curious about its origins — note the cutesy language in its post reporting that it was returning the device to Apple after receiving a formal request. As if that wasn’t enough bad karma, Gizmodo then outed the Apple engineer who lost the prototype, publishing photos from his Flickr page and details from his Facebook profile. This isn’t about bloggers being treated differently from journalists —whatever that distinction means to this “print journalist” who has done most of his writing for a blog over the past few years. If I told my editor that a source was willing to sell a “lost” device to us for a few thousand dollars, we would have an exceedingly short conversation. (The Post has often published copies of documents obtained without permission, but we don’t pay for them and we have successfully defended our actions in court.) But . . . even jerks have rights. I’d like to know what made this show of force necessary when Gizmodo has all but said “we bought stolen property.” For that matter, why target Chen and not the management at Gizmodo, since no one has alleged Chen cut the check for the device? There’s something creepy when people chuckle after cops break down a writer’s door (in their defense, Chen wasn’t at home and they did tell him to file a claim for the repair costs) and confiscate his computers. This isn’t a game that one side needs to “win.” This really ought to put a stop to the crazy speculation that Apple left the iPhone in that bar as a PR stunt. But knowing how some people react to Apple news, they probably won’t — they may even take my dismissal of the theory as evidence that I am actually In On The Conspiracy.
Police raid the home of Gizmodo editor Jason Chen — the latest of many odd twists in a stolen iPhone’s odyssey.
Data and graphics by
TUESDAY, APRIL 27, 2010
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