Senators praise Bombardier deal

By Ray Weikal

The tax incentive package passed by Missouri lawmakers on May 7 to lure a new airplane factory will ultimately be an economic boon, according to area legislators.

About 45 day ago, the Canadian firm Bombardier announced that it was interested in building a new plant on land adjacent to Kansas City International Airport. The weak value of the dollar, excellent infrastructure and a well-trained and educated local workforce all contributed to the company’s decision, officials said.

Still, the economic honey pot needed a little sweetening. The city of Montreal is also working on a deal to get the factory. State legislators, including Sens. Charlie Shields and Luann Ridgeway, came up with a plan.

As sent to Gov. Matt Blunt, the bill offers Bombardier tax credits worth $240 million over eight years.

“This is a phenomenal deal for taxpayers, because we have sufficient safeguards in place to make sure the company creates jobs before any tax dollars are issued through tax credits,” Shields said in a press release.

If planes begin to roll off the assembly line, Bombardier will also be required to eventually pay back any tax credits that it earns, according to Ridgeway.

“We protect taxpayers by collecting royalties on the company’s product, meaning taxpayers recoup the money issued through the tax credits,” she said. “We create jobs while protecting taxpayers.”

If built, the new factory would produce 110-seat commercial aircraft that are cheaper and more fuel efficient than similar planes. Bombardier plans to invest about $400 million in the plant, according to company officials.

Staff writer Ray Weikal can be reached at 389-6637 or rayweikal@npgco.com.