Wednesday, July 23, 2008

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KCI plane plant may bring work to Mid-Missouri; Firms here could make parts, REDI says.

 




JEFFERSON CITY - The Missouri General Assembly possibly achieved its biggest accomplishment this session when it sent a $240 million enticement package for a Canadian airplane manufacturer to the governor earlier this week.

Supporters of the project said any positive impact on Mid- Missouri would likely come in the future if Bombardier Inc. decides to build an airplane manufacturing plant in the Kansas City area.

Critics questioned the offer of tax credits to a foreign company, particularly in a time of declining state revenue.

Bombardier, a large aircraft manufacturer based in Montreal, is looking for a location to build a new fleet of civilian airplanes. Missouri has been in negotiations for months to steer the company away from Canada in favor of building a plant near Kansas City International Airport.

Because Canada has proved adept at using subsidies - for example, the country offers some of the most generous film enticements on the continent - lawmakers said a tax credit package was needed.

The plan was nearly grounded after senators balked at the initial version that would have lasted longer and potentially cost much more. A revised version of the legislation sailed through the House and Senate and was sent to the governor on Wednesday.

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