A southwest Wichita aircraft supplier will seek a tax abatement from the Wichita City Council on Tuesday for an expansion project valued at more than $5 million.
R&R Aerospace, 2615 Esthner Court, is proposing $1.1 million in building upgrades as well as a 4,000-square-foot expansion, and $3.9 million in new machinery and equipment, according to city documents.
The 18-employee company also expects to add 28 new jobs over five years, at an average annual salary of $49,000.
R&R is bidding on a new work package that is driving its expansion plans.
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It is seeking a tax abatement for up to 10 years. The city estimates the exempted amount of taxes in the first full year of the abatement would be $29,370 based on the latest mill levy. According to city documents, that breaks down to exempted annual taxes of $8,171 for the city; $7,377 for Sedgwick County; $13,447 for the Wichita school district; and $375 for the state.
According to the city documents, after the abatement expires, the expansion project would generate new property taxes. In the city’s case, it estimates it would receive $11,316 in annual tax revenue from the company after the abatement expires, compared with the $8,171 it currently receives.
R&R specializes in parts for aircraft cockpits, doors, flight controls, fuselages, interiors, landing gear, nacelles and struts, and vertical stabilizers, according to its website.
It has certifications as a Tier 3 supplier for Boeing, Cessna, Sikorsky and Spirit AeroSystems, city documents said.
It operates from the Esthner Court location as well as a second building at 2605 W. Esthner, southwest of Harry and Meridian.
R&R officials could not be reached for comment on Monday.