Updated Tuesday, May 3: Wichita City Council members unanimously approved $280 million in industrial revenue bonds for Spirit AeroSystems. The company says it will fund expansion and modernization projects.
Original story:
Tomorrow morning, Spirit AeroSystems will ask the Wichita City Council to approve up to $280 million in industrial revenue bonds.
If approved, the bonds will be used to fund ongoing modernization and expansion of the Spirit AeroSystems facility in Wichita over the next five years. The company is also seeking a 10-year tax abatement on any improvements it makes to existing buildings or new buildings.
The city would be responsible for issuing the $280 million in bonds, which would then be purchased by investors. Spirit AeroSystems would be responsible for all costs related to the issuance of the bonds.
In an e-mailed statement, the company said industrial revenue bonds have been a key enabler for Spirit’s Wichita expansion.
"Investments we make in our Wichita site will position us for continued growth and will positively contribute to our local, regional and state economy. If approved, the industrial revenue bond request before the City Council next week will help us move forward with our long-term goals as we meet the needs of our customers around the globe," the statement said.
According to the city, industrial revenue bonds are issued to get lower interest rates, property tax abatements and sales tax exemptions.
Spirit also plans to invest $825 million in new machinery and equipment, for a total investment of $1 billion.
Spirit AeroSystems is the largest employer in the state with close to 11,000 employees. As a result of the expansion, the company says it expects to add 349 new jobs over the next five years.
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