Motorola arm staying in Libertyville, hiring

Gov. Pat Quinn and Motorola Mobility Inc. are expected to announce today they have reached a deal to keep the mobile phone maker in Libertyville.

The company plans to invest $500 million locally and hire about 2,500 people for research and development, said state Rep. Ed Sullivan, a Mundelein Republican. The company would receive tax credits through a state program called Economic Development for a Growing Economy, Sullivan said.

The program reduces corporate income taxes for up to 10 years and is specifically aimed at companies actively looking to move out of state.

“This is a very big day,” Sullivan said.

A news conference is scheduled for 11:30 a.m. today, when Quinn and Motorola Mobility CEO Sanjay Jha are expected to provide further details.

Libertyville Mayor Terry Weppler said he's happy to hear the news but said the village is not offering incentives. He said Thursday evening he had received a call from Motorola asking if he could be available for the news conference.

“I don't know the details myself, but I understand Motorola plans on staying here and will have a presence here,” he said.

For about a year, Jha has been considering a number of sites in California and Texas as possible locations for a new headquarters. Jha lives in San Diego, Calif.

Staying in Libertyville and making the local investment makes sense, said Edward Snyder, managing director of Charter Equity Research. The area has “lots of good handset engineers” and the region is less expensive than the West Coast, he said.

“Motorola Mobility needs to focus on holding the line on cost while ramping product releases and expanding its channels, a pretty tall order by itself,” Snyder said. “(That's) even more difficult if you're relocating to high-cost areas, like the West Coast.”

Spokesmen for the governor's office and Motorola Mobility declined to comment Thursday.

Since spring 2010, Jha advocated keeping Libertyville as a major part of the company after it spun off from Motorola Inc. The company also has major operations in Horsham, Penn.

The facility on Route 45 is near Libertyville commuter stations serving Metra's Milwaukee North and North Central lines, Weppler noted.

“I just think it is a great location and a great opportunity for us,” he said, adding that he'll hear more details today. “I don't know any specifics at all — just that they're staying.”