Title
CONSIDERATION OF THE ISSUANCE BY THE CITY OF WICHITA OF ITS TAXABLE INDUSTRIAL REVENUE BONDS TO PAY THE COSTS OF THE ACQUISITION, CONSTRUCTION, AND EQUIPPING OF A MANUFACTURING FACILITY TO BE LEASED TO AIR CAPITAL FLIGHTLINE, LLC AND SUBLEASED TO SPIRIT AEROSYSTEMS, INC., WHICH FACILITY IS LOCATED WITHIN AN UNINCORPORATED AREA OF THE COUNTY.
Presented by: Brent Shelton, Director of Economic Development and Tax Systems, Division of Finance.
RECOMMENDED ACTION: Approve the Resolution.
Body
Air Capital Flight Line - City of Wichita Letter of Intent for IRBs & Ad Valorem Tax Exemption.
The City of Wichita approved, on Tuesday, November 13, 2018, by a 7-0 vote; a letter of intent to issue Industrial Revenue Bonds to Air Capital Flight Line LLC in an amount not to exceed $18,000,000; and to grant a 100% tax exemption for a period of 5 + 5 years pending the creation of an additional 320 new jobs at an average annual wage of $54,500.
The proceeds of the bonds would be used to construct a new 144,000 sf manufacturing facility on the Spirit AeroSystems campus at 3800 S. Oliver. The site is located on the east side of Oliver; across the street from Spirit's headquarters.
The parcel on which the proposed construction would take place is located outside the city limits of Wichita, within the Boeing Industrial District. As such, Kansas Statutes provides the County Commission with the authority to influence the City's granting of the property tax exemption by considering the item within 7 days after at the next County Commission meeting subsequent to the City's approval of the letter of intent. The only scheduled BOCC meeting within this time frame is Wednesday, November 14, 2018.
Alternatives: There are three options for the BOCC:
? Vote to approve the exemption;
? Vote to deny the exemption; or
? Take no action, which allows the exemption to proceed.
The proposed facility is owned by a partnership between Johnny Stevens and Dave Murfin. The building...
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