Wichita approves Textron Aviation $434 million industrial revenue bonds LoI
Wichita City Council has approved a letter of intent (LoI) to issue $434 million in industrial revenue bonds to Textron Aviation.
The bonds will be due over a five-year period, with Textron saying the will use $24 million of the fund for buildings and improvements, and the remaining $410 million on furnishings, fixtures, and tooling.
Textron is working on its upcoming Citation Hemisphere business jet, as well as on its Scorpion light attack jet.
The Hemisphere will be the largest business jet that Textron has built to date.
Announced in 2015, the Hemisphere is a twin-engine business jet capable of flying up to 4,500nm. It is due to fly for the first time in 2019 and has a projected cost of between $30 – $35 million.
Alongside the bond is a five-year property tax exemption, which can be extended for a further five years provided Cessna continues to employ over 9,000 workers.
According to the Textron Aviation website, at the end of 2015 the firm employed more than 11,750 people worldwide.
Cessna and Wichita have a long history together. The Midwest city has been home to the air-framer since 1911, when it began building small light aircraft in the city.
It uses the main Dwight D. Eisenhower National Airport as its base for operations, with most manufacturing undertaken in a facility at the airport.
The firm also has a facility at Beechfield, which Cessna inherited during the buyout of Beechcraft. Cessna now refers to this facility as the East Campus. A smaller facility is in Independence, a short distance from Wichita.
Wichita’s Mid-Continent Airport is also home to Bombardier’s LearJet division.