Contel’s proposed merger with GTE Corp. could spell trouble for the restructuring plans which were to make DeKalb the headquarters for a six-state region.

Contel planned to renovate the former Wurlitzer Company headquarters at 403 Gurler Road with plans to have it be part of the company’s Midwest headquarters.

However, with last week’s proposed merger, Bob Alton, GTE Corp. Telephone Operations President, directed Contel to stop all but one of the restructuring plans until a definitive agreement has been reached between the two, a press release from Contel states.

The directive which will continue is the voluntary Early Retirement Program. Contel has offered the program to employees age 52 or older with seven years of service.

The Early Retirement Program was offered to 900 eligible employees in the operating sector last month. Contel Public Affairs Specialist Terry Reid said it was part of Contel’s plan to streamline operations during the restructuring.

During this phase, some of the offices in the operating sector would close down completely, while DeKalb’s office would have expanded due to it becoming the headquarters, Reid said.

But in the wake of the recent merger plans with GTE Corp., Contel could lose its chance to become the Midwest headquarters. This would mean Contel might lose staff in DeKalb County instead of expanding it.

The fate of the Wurlitzer property could also be in question. “The construction in progress at the Wurlitzer location has been put on hold at this time. Measures have been taken to preserve and protect the property, and the design has been brought to a point that construction can be initiated at a future date,” said Contel of Illinois President C.M. Rexroat.

The future of Contel’s employees and the Wurlitzer building will be decided between the company and GTE Corp. Details of the agreement will be made public within a month.

Contel beat out NIU in a battle for the property back in March. NIU was appropriated $2 million to buy and renovate the property from the Illinois legislature.

The appropriation was passed as an amendment proposed by Rep. John Countryman, (R-DeKalb), as part of a $358.2 million capital development bill.