Wichita, Kan. – Cessna Aircraft Company, a Textron Inc. (NYSE: TXT) company, announced that it will build the Citation Columbus plant in Kansas, securing more than 1,000 jobs and a $780 million investment.
“The Kansas Legislature’s quick response to this project has cemented our decision, and Cessna is proud to call Kansas home for the Citation Columbus,” said Cessna Chairman, President and CEO Jack J. Pelton. “With their quick action, the House and Senate leadership have shown the world that Kansas will compete for aviation jobs.”
With this new project, Cessna will create an estimated 1,010 new direct jobs with an annual payroll of $74 million. Research shows that each aviation job creates an additional 2.9 jobs, which means a total of nearly 4,000 new jobs in Kansas as a result of the new plant.
Cessna is investing $780 million into development of the Citation Columbus, Cessna’s newest and largest business jet. The new plant will be a stand-alone facility that will house engineering offices and final assembly of this state-of-the-art $27 million business jet.
In less than two weeks from the introduction of the bill, the Kansas Legislature voted to provide up to $35 million in bonds to secure the plant through a pool of money designed for aviation projects. Governor Sebelius signed the bill in Wichita on April 23.
In addition to the state support, the Wichita City Council and the Board of County Commissioners of Sedgwick County voted to provide a local incentives package that includes $10 million in forgivable loans. In addition, the Wichita Airport Authority will consolidate 11 existing leases for Cessna into one 50-year lease agreement. Airport property used for aviation-related purposes is exempt from ad valorem taxation per state law.
The $45 million in local and state loans and bonds joins the additional State package of training dollars and other incentives, which is worth more than $70 million. Preliminary plans call for construction of more than 800,000 square feet of buildings and 14 acres of airfield pavement.
Pelton added “Cessna fully appreciates the partnership and support we have had at state and locally. The economic development coalition, the Chamber, the City of Wichita and Sedgwick County all spoke with one voice and were seamless. Their partnership with the Department of Commerce and help in bringing this message to our state elected leaders was instrumental.”
The Greater Wichita Economic Development Coalition (GWEDC) worked closely with the State Department of Commerce and local partners to help secure financial incentives for the project, as well as the state response. The Coalition’s partners are the City of Wichita, Sedgwick County, 125 business investors through the Wichita Metro Chamber of Commerce and seven counties in the region.
“On behalf of the community, we thank the legislative leadership, our south-central Kansas delegation and the entire Kansas Legislature for securing these great jobs for Kansans,” said Coalition Chairman Steve Martens. “We have an immediate win with immediate jobs, and with this legislation, the Kansas Department of Commerce and Secretary Kerr have new, more flexible ways to compete for product lines and jobs that will secure the future of Kansas.”
Cessna had publicly said their preference was to locate in Kansas, especially because of Wichita’s skilled work force, the National Institute for Aviation Research and the new technical training school at Jabara Airport.
“We needed to make this decision quickly and the Kansas Legislature was very proactive in its response,” Pelton said. “This is a perfect example of our partners at the state level understanding and responding quickly to a very competitive global business environment. We thank all for the support we’ve received from both state and local leaders. We look forward to breaking ground, and we especially look forward to hiring more of the great people of Kansas to be a part of building this exciting new aircraft.”
