McDonnell Douglas to Buy 52-Acre Site : Will Pay $21 Million for Santa Ana Parcel for Research Complex

McDonnell Douglas Corp. has agreed to purchase 52.5 acres of property southeast of Edinger and Grand avenues in Santa Ana for $21 million to serve as an office, manufacturing and research complex that will employ 4,000 people, most of them drawn from four of the firm’s 13 county computer-related facilities.

In addition, the city is working with McDonnell Douglas in an attempt to add eight acres fronting the Costa Mesa Freeway on the east and Edinger Avenue to the north. Community Development Director David Ream said the city has already begun the process of acquiring the seven acres--by condemnation, if necessary--and said he expects “no problems.”

The city would acquire the additional property for an as-yet undetermined price and lease it to McDonnell Douglas, city officials said.

The complex will be in a 126-acre commercial and research and development park to be developed by Santa Fe Pacific Realty Corp., the firm that sold the 52.5 acres to McDonnell Douglas in a deal completed Wednesday. Jeff Gwin, Santa Fe Pacific regional director, said the firm decided not to negotiate with prospective tenants for the remaining portion until McDonnell Douglas signed. “That’s the big guy,” he pointed out.

Construction is expected to begin next summer, according to Bob Young, executive vice president of McDonnell Douglas’ realty subsidiary. He said that half of the land would be developed for corporate offices and the other half for commercial, manufacturing and research facilities.

The complex will recruit workers from four of the corporation’s county offices--McDonnell Douglas Computer Systems Co., Field Service Co., Business and Network Systems Co. and Distribution Systems Co. “We want to build a campus there in which we can reunite all these sections,” said Gary Liebl, chief operating officer for the Computer Systems group.

He said the setup of 13 offices in various county locations makes for a “clumsy” operation, adding that the facilities from which employees will be relocated, in Irvine, Cypress and Newport Beach, would remain open. “Obviously, this is a response to growth in the company, which has made for some very crowded offices,” he said. “That’s one of the undesirable benefits of fast growth. Sometimes you have to move quickly and add a facility here, a facility there.”

Most of the workers at the planned facility will come from McDonnell Douglas Computer Systems, which employs about 1,500 people in Orange County and has been growing at about 35% a year for the past decade, Liebl said. Sales in 1984 amounted to $206 million and are expected to climb to about $245 million this year, company officials said.

A final agreement for the estimated $150-million, 1.8-million-square-foot project will go before the City Council Oct. 15.

Liebl said architectural plans are being drawn up and should be completed early next year. The firm’s aerospace operations will not be affected, he added.