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County approves IRB for wide-body hangar; tax abatements to reduce near-term revenue
Summary
The board authorized the city to issue industrial revenue bonds up to $12 million to finance a speculative wide-body hangar to be leased to Air Capital Flight Line LLC, with property tax abatements (95% first 5 years; 50% second 5 years) and an estimated first-year abatement value of about $369,368.
Sedgwick County commissioners voted to approve a resolution allowing the City of Wichita to issue industrial revenue bonds of up to $12,000,000 for construction of a speculative wide-body hangar to be leased to Air Capital Flight Line LLC. The Division of Finance said the project is located at 4174 South Oliver in the Aerospace Industrial District and would be eligible for substantial property tax abatements.
"On November 5, the City of Wichita Council adopted a resolution to issue an industrial revenue bond not exceeding $12,000,000 for the construction of a speculative maintenance repair and overhaul building," Anissa Redd said in the briefing. She told commissioners the estimated value of the 95% property tax abatement for the first full year is approximately $369,368, and county analysis estimated a positive benefit-cost ratio of 2.26 to 1 for the county over time. Commissioner discussion clarified the abatement term is 10 years (95% for first five; 50% for second five) and that the building is a speculative facility intended to attract tenants.
Deputy CFO Brent Shelton confirmed the abatement schedule and explained that, because the building is speculative, occupancy determines the second five-year abatement. Commissioners said they were supportive of pursuing maintenance, repair and overhaul capacity in Wichita; the motion to approve the recommended action carried by roll call.
