The state's failed bid for Kansas-based Hawker Beechcraft to move its headquarters to Louisiana included giving $75 million for the company to build a new facility, a $1.1 million payment for infrastructure expenses, a $16.8 million grant for research and development and a break on property taxes. Had Wichita, Kan.-based Hawker Beechcraft taken Louisiana up on its offer to move the company's corporate headquarters to the Pelican State in 2010, the aircraft manufacturer would have signed on to $500 million in incentives from the state.
According to a report from Kansas' KWCH, the state's failed bid for Hawker Beechcraft to move its headquarters to Baton Rouge included giving $75 million for the company to build a new facility, a $1.1 million payment for infrastructure expenses, a $16.8 million grant for research and development and an exemption on property taxes:
The agreement also said Hawker would have to give preference to local businesses for all of its parts and supplies.
But, the agreement asks Hawker to transfer ownership of the new factory over to the airport after it moves in. Also, if Hawker failed to meet certain criteria for these incentives, such as non-performance, it would be required to pay back an amount equivalent to 12-16 percent of the payroll or expenditure shortfall for each year. That would result in the company paying back all of the received incentives, over time, if it produced no jobs, or a proportionate amount of the initial incentives if it produced a proportion of the total required jobs and payroll.
KWCH reports that Hawker ultimately settled on an offer from the state of Kansas, Sedgwick County and the city of Wichita, all of which contribute to paying the company $45 million over a five-year period, dependent on the company's pledge to maintain a minimum of 3,600 jobs.
Read the full story here.