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Wichita City Council approves industrial revenue bonds for Spirit AeroSystems

The Wichita City Council today approved Spirit AeroSystems’ request for $15 million in industrial revenue bonds by a vote of 6 to 0, according to a Spirit spokeswoman.

Proceeds from the bonds will be used to finance the ongoing modernization and expansion of Spirit’s facilities.

The proceeds will be spread across several programs, Spirit spokeswoman Debbie Gann said Monday.

“It’s for things like air-handling equipment, cranes, a clean room for the (Boeing 787 Dreamliner) expansion, doors, machine shop modifications — all the infrastructure we need to continue to build airplanes out here,” Gann said.

Spirit is ramping up for rate increases on Boeing’s 737 single-aisle aircraft.

“As a result, we’re having to make more investment,” she said.

Spirit builds parts on all Boeing airliners in Wichita. It employs 10,700 people in Wichita.

Property financed with the bond proceeds will be eligible for sales tax and property tax exemptions for up to 10 years, beginning the year after the bonds’ issuance.  The bonds will mature on Jan. 1, 2022, and bear 6.76 percent interest per year.

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