SEATTLE - Russell Investments, Tacoma's largest private employer, is moving its headquarters from Tacoma to Seattle.
As first reported by KING5.com, employees of the financial company were notified of the move on Wednesday morning.
The company will move its headquarters into the former Washington Mutual building in downtown Seattle.
Seattle Mayor Greg Nickels said he got a call this morning from the CEO of Russell, who informed him of the decision.
"We're very pleased and we welcome them to Seattle," said Nickels. "At the same time I want to say that I feel a lot of empathy for Tacoma. There's been a historic connection between Russell and Tacoma."
"The important thing is that Russell is going to stay in the region, that all of the employees who are there now will continue to be able to work for Russell," he said.
Russell Investments announced last year it was looking for a new location for its headquarters.
Russell CEO Andrew Doman issued a statement Wednesday saying, "All of the key factors lined up and pointed us in the same direction.? We recognize that this news will be disappointing to some. We weighed all considerations carefully, and in the final analysis our decision was based on what would best serve Russell over the long-term."
Tacoma-area officials had offered more than $140 million in public funds as part of a deal to try to keep Russell from moving to Seattle. The pitch ranged from offers of tax breaks to the savings if workers didn't have to be relocated.
"It was kind of like a perfect storm," said Tacoma Mayor Bill Baarsma. "They had a building in downtown Seattle available for pennies on the dollar - a once in a lifetime opportunity with the demise of WaMu and that bulding available and other office space available up north. The fact that the City of Seattle aggressively went after them and offered them tax incentives certainly helped in making that decision easier for them."
Gov. Chris Gregoire issued a statement, saying "I am delighted that Russell has decided to stay in the state of Washington, ensuring that those important jobs remain in the Northwest. I certainly understand the disappointment of the Tacoma community. I know the city did an outstanding job of presenting its case. Russell Investment Group has been a major employer in Pierce County, and has played an integral role in shaping downtown Tacoma. After talking with Russell CEO Andrew Doman, I respect this was a difficult business decision, and wish the company continued success at its new location."
The move isn't expected to take place until the end of next year.
While many employees are not happy with adding up to two hours to their round-trip commutes, others are simply happy to still have a job.
"I'm thankful for that," said Nicole Lucich. "Whatever the company decides to do I'll support it."
The company was founded in 1936 by Tacoma businessman Frank Russell, and has grown into a global investment firm with 1,750 employees in 20 offices around the world. The company is now owned by Milwaukee's Northwestern Mutual Life and has $151 billion in assets under management.
Consulting and investment clients include Alcoa, Boeing, The Bill and Melinda Gates Foundation Trust, Caterpillar, Coca-Cola Bottling Co. and General Motors.
Russell serves individual, institutional and advisor clients in more than 40 countries and provides investment solutions including mutual funds, retirement investments, institutional asset management, implementation services and global stock market indexes.
The company has been named to Fortune magazine's "100 Best Companies to Work For in America" seven times since 1999.
Russell has principal offices in Amsterdam, Auckland, Johannesburg, London, Melbourne, New York, Paris, San Francisco, Seoul, Singapore, Sydney, Tokyo and Toronto.
Earlier this year, hard-hit by the slumping global economy, Russell laid off 20 percent of its workforce.
