The Governor Providing $2.8 Million Business Investment Package to Help Leading Life Insurance Company Construct New Facility and Retain 400 Illinois jobs
SPRINGFIELD – The Blagojevich Administration today celebrated the groundbreaking of a new service center in Springfield for American General Life Insurance Co. (AIG American General), a member company of American International Group, Inc. (AIG), a world leader in insurance and financial services. The Governor is providing $2.8 million in Opportunity Returns support to help the company construct a life insurance processing and service center that will help the company upgrade operations and retain at least 400 jobs in Springfield. Illinois Department of Commerce and Economic Opportunity (DCEO) Director of Operations Warren Ribley joined with company executives, Springfield Mayor Tim Davlin and the project developer for the groundbreaking at the Springfield Service Center in Southwest Plaza on Springfield’s west side.
“By investing in companies that are investing in Illinois, we are helping them boost their competitiveness and increase their productivity. AIG is a prime example of a successful company who needed new resources to accommodate its expanding business and continue to reach new customers. By targeting our resources at the local level, we’re building an extremely competitive business environment where companies, both large and small, can put even more people to work,” Gov. Blagojevich said.
AIG will begin construction on a three-story, 115,000 square foot building that will house approximately 460 employees engaged in a variety of operational functions, including customer service, information technology, underwriting and new business. AIG considered consolidating at locations out of state. The facility was designed by Opus Architects & Engineers and is being built by Opus North Corporation. The facility is expected to open next spring.
“This event marks the beginning of the next chapter in our company’s long and distinguished history within the Springfield community,” said Rick Hollar, Chairman and CEO of AIG American General’s Life Profit Center. “Our thanks to Governor Blagojevich and our local leaders for their continued support.”
The Illinois Department of Commerce and Economic Opportunity (DCEO) is administering the business investment package. It includes Economic Development for a Growing Economy (EDGE) corporate income tax credits over the next ten years based on job retention; Employer Training Investment Program (ETIP) job training funds that will help the company enhance the skills of its workforce in areas including new computer and office software; and additional financial benefits, such as sales tax exemptions and tax credits for job retention, resulting from the company’s location within an Enterprise Zone.
“Keeping AIG's operations in Springfield has been a priority of my administration, and that is why we’ve worked closely with the state to help make that possible. The Blagojevich Administration has shown great coordination across multiple state agencies to put together a comprehensive package that is beneficial to both the city and the state. This company has a long, storied history in Springfield, and I'm pleased that it will remain part of our business community,” said Springfield Mayor Tim Davlin.
The Governor recently announced that the state purchased AIG American General’s current facilities – commonly known as the Franklin Life complex – which will allow state property management experts to consolidate many Illinois State Police functions being managed throughout the capital city, and transition additional agencies into the remaining space as an important initiative that will increase efficiency and reduce administrative costs. This acquisition will increase the state’s portfolio of owned space by nearly 375,000 square feet and up to 1,500 employees will be located at the facility.
AIG American General is the marketing name for the companies comprising the Domestic Life Operations of American International Group, Inc. (AIG), including American General Life Insurance Company. AIG is a leading international insurance and financial services company with operations in more than 130 countries and jurisdictions.
“Gov. Blagojevich and I are excited to be working with AIG American General to enhance its presence and keep at least 400 jobs right here in Springfield. This support is helping the company maintain its leading status in the marketplace and keeping our regional economy moving forward,” DCEO Director Jack Lavin said
Since January 2004, Illinois has gained 173,600 jobs, which is best in the Midwest. Illinois led the nation in new job growth in January 2007 with 19,100 new jobs. In 2006, Illinois gained 71,000 new jobs, which is the best calendar year gain since 2000. Over the last 4 years, from January 2003 to December 2006, Illinois had the second largest unemployment rate drop in the nation. The federal Bureau of Labor Statistics and the Illinois Department of Employment Security compiled these statistics.
Gov. Blagojevich’s Opportunity Returns regional economic development strategy is the most aggressive, comprehensive approach to creating jobs in Illinois’ history. Since a one-size-fits-all approach to economic development just doesn’t work, the Governor has divided the state into 10 regions – each with a regional team that is empowered and expected to rapidly respond to opportunities and challenges. Opportunity Returns is about tangible, specific actions to make each region more accessible, more marketable, more entrepreneurial and more attractive to businesses. It is about upgrading the skills of the local workforce, increasing the access to capital, opening new markets, improving infrastructure, and creating and retaining jobs. Opportunity Returns is about successfully partnering with companies and communities, both large and small, to help all of Illinois reach its economic potential.