Bombardier considering plant in KC

The Wichita Eagle

March 25, 2008

Montreal-based Bombardier Aerospace is exploring Kansas City, Mo., for a potential $375 million aircraft assembly site.

Bombardier is looking for a site to assemble C Series 110- and 130-seat passenger jets. It eventually would employ up to 2,100 people. It hopes to begin production in 2013.

Wichita, home to Bombardier's Learjet plant, bid on the project in its early stages, with the city and state making what Wichita's director of economic development Allen Bell said is 'a pretty aggressive offer.'

However, the city received a rejection letter in October 2004, said Kim Young, Greater Wichita Economic Development Coalition project manager.

'Wichita did not make the short list,' she said.

Bombardier spokesman Marc Duchesne confirmed the planemaker's interest in Kansas City.

'We expect their proposal to be a serious option for Bombardier Aerospace to consider,' he said.

Bombardier has looked at a site at the Kansas City International Airport.

The company also has received interest from other U.S. locations, Duchesne said, although he declined to name the cities.

Bob Marcusse, Kansas City Economic Development Council president, said landing Bombardier would be a 'game-changer for Kansas City.'

'We would suddenly be major players in the aviation industry,' he said.

The deal has some obstacles.

Bombardier made a preliminary deal two years ago to build the plant in Canada and is under political pressure to honor the deal.

And it has just begun marketing the C Series aircraft and must take enough orders to justify the plant. A decision on whether to move ahead with the project is expected this year.

The declining U.S. dollar could make building the plant in the U.S. attractive.

'We must find the best economic condition,' Duchesne said.

Missouri state officials outlined legislation Tuesday to provide state tax credits to help land the plant.

Missouri economic development officials want to give Bombardier tax credits through an amendment to the Enhanced Enterprise Zone program, which would be for projects that hire a minimum of 1,000 employees and invest at least $300 million.

With Bombardier, the state would cap the amount of tax credits at $40 million annually over the 22-year life of the deal. And Bombardier would gradually repay Missouri for the tax credits, with interest.

The details are still being negotiated, said Greg Steinhoff, Missouri Department of Economic Development director. Kansas City also would issue a bond under which the city owns the property and leases it back to the tenant. The lease payments would repay the bond.

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