Aviation

Spirit seeks $280 million in IRBs, plans for 349 new jobs

The Wichita City Council on Tuesday will consider a $280 million industrial revenue bond request from Spirit AeroSystems.
The Wichita City Council on Tuesday will consider a $280 million industrial revenue bond request from Spirit AeroSystems. File photo

Spirit AeroSystems is seeking up to $280 million in industrial revenue bonds through the city of Wichita.

The Wichita City Council on Tuesday will consider the request from Spirit, which employs 10,800 people in the city.

According to city and Spirit documents, the company is requesting a letter of intent to issue the IRBs over the next five years. Proceeds from the bonds would be used for construction, expansion and renovation of its factory site on South Oliver.

During that period, Spirit plans to invest $825 million in new machinery and equipment, for a total investment of $1 billion, city documents said.

It also is seeking a 10-year tax abatement on any improvements it makes to existing buildings or new buildings under the new IRB request.

“Aerospace manufacturing requires significant capital investments, especially for large, complex components we build for commercial and military customers,” Spirit said in an e-mailed statement Friday. “IRBs have been a key enabler for Spirit’s Wichita expansion as we have grown employment from 7,300 to nearly 11,000 while investing more than $1.5 billion over the past decade.”

Spirit expects to create 349 new jobs in the next five years as part of the investment and expansion, city documents said. In 2015, it paid $11.4 million in real property taxes, said Tim Goodpasture, the city’s economic development analyst.

Spirit manufactures major parts of all Boeing airliners, including 70 percent of the Boeing 737, as well as major parts of other commercial and business aircraft and military helicopters.

Jerry Siebenmark: 316-268-6576, @jsiebenmark

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