October 6, 2010
State incentives of $3.5 million played vital role to substantially upgrade airport
Gov. Nixon helps dedicate new Hangar 10 project at Downtown Airport in Kansas City; project expected to create 94 new jobs
KANSAS CITY, Mo. - Gov. Jay Nixon today took part in the grand opening of the Hangar 10 project at the Charles B. Wheeler Downtown Airport in Kansas City. The state of Missouri provided $3.5 million in economic incentives for the project, which includes a new terminal building, hangars and other facilities at the site. The project is creating an estimated 94 new jobs.
"The strategic and effective use of state incentives is helping create jobs and keep Missouri on the economic rebound, and that is evident today," Gov. Nixon said. "With the opening of Hangar 10, Downtown Airport can serve as a pivotal player for economic development for Kansas City and the entire region. I am pleased that the state of Missouri served a vital role in moving this project forward."
The Governor was joined at the grand opening of Hangar 10 by numerous other civic and business leaders from the Kansas City region, including state legislators and local elected officials.
The City of Kansas City had previously invested large sums of money to improve the runways and hangars at the airport, but still needed additional upgrades before the site was considered an airport-related facility. An airport-related facility is defined as having a hangar, a facility housing a terminal and office space containing conference facilities, customer and pilot lounges, a flight planning area and overnight rooms.
Due primarily to poor soil conditions, inadequate utilities and Federal Aviation Association regulations, the project became encumbered with approximately $3,500,000 in unexpected costs that threatened to cause significant delays in completion.
James Stowers III, owner of Hangar Ten LLC, agreed to donate $7 million to the Missouri Development Finance Board (MDFB) in exchange for $3.5 million in economic incentives under the Tax Credit for Contribution Program, enough to defray the outstanding costs and allowing the project to move forward. Under the agreement, Stowers served as the developer to build the new terminal building, fueling facilities and hangars and will lease them from the City of Kansas City, while paying the city's standard ground rent, flowage and landing fees.
The MDFB approved the agreement in September 2009, clearing the way for the project to move forward.
"Kansas City has an asset that is becoming harder to find in large U.S. cities - a major airport in the heart of downtown," Gov. Nixon said. "Private aircraft are becoming an increasingly common way for companies to conduct business, and Hangar 10 will provide a first-class facility within minutes of many of the major companies and corporations in the Kansas City area."
The Tax Credit for Contribution Program, administered by the MDFB, is designed to assist in the funding of capital improvement costs for qualified public facilities and public infrastructure projects in Missouri. The Board is authorized to grant tax credits equal to 50 percent of a contribution from any taxpayer. The contributed funds are granted to local governments, state agencies or used by the MDFB to finance infrastructure improvements needed to facilitate an approved project.