The Wichita City Council on Tuesday approved issuing $10 million in industrial revenue bonds for Spirit AeroSystems for 2014.
The bonds will finance new air-handling units, chillers, cranes, a generator rebuild, gates, tool storage areas, a water pump backup system and an air conditioning unit in the administrative server room, Tim Goodpasture, an economic development analyst for the city, told the council.
Industrial revenue bonds can be issued by a government and pose no financial risk to taxpayers. They’re intended to help private companies get financing for industrial improvement. The debt securities are then sold to investors. The goal of the bonds is to improve the economy and boost employment in the area.
Spirit will buy the bonds itself and they will not be offered for public sale.
“Spirit is one of the largest suppliers for the Boeing company, building, among other things, the 737 fuselage,” Goodpasture said during a presentation in which he recommended that the council approve the issue.
The council approved the motion without discussion. Mayor Carl Brewer, who worked as an operations manager for Spirit, abstained from voting.