C E Machine Economic Development Exemption Request Office

C. E. Machine Economic Development Exemption Request Office of Urban Development February 9, 2016

C. E. Machine • Founded in 1975 as manufacturer of medium sized precision parts and assemblies for aerospace industry • Located at 1741 S. Hoover Ct. (near Harry and Hoover streets) • Customers: Bell Helicopters, Cessna, Boeing, Gulfstream, Embraer • Advanced Manufacturing Cluster (BREG); supplier to Aerospace BREG cluster 2

C. E. Machine Harry St. and Hoover St. 3

C. E. Machine • Expand facility by 25, 000 square feet ($1, 000) • Add new machinery & equipment ($750, 000) • Total capital investment = $1, 750, 000 4

C. E. Machine Existing Facility 5

C. E. Machine Existing Facility 6

7 C. E. Machine Jobs Base New 5 Year Projected 82 15 97 M&E $750, 000 Real Prop $1, 000 • Job Creation = 32. 5% tax exemption • Capital Investment = 25. 0% tax exemption • TOTAL = 57. 5%, 5 + 5 year tax exemption

C. E. Machine • Company paid $20, 150 in general property taxes in 2015 • Estimated value of one year tax abatement is $13, 783 (appraised at 80% of capital investment) City $3, 760 County $3, 378 State $ 173 USD 259 $6, 472 8

C. E. Machine Cost/Benefit Analysis: Projected City of Wichita 2. 79 to 1 City of Wichita – Gen Fund 2. 51 to 1 City of Wichita – Debt Serv 3. 17 to 1 Sedgwick County 2. 27 to 1 USD 259 1. 74 to 1 State of Kansas 34. 27 to 1 9

C. E. Machine • Recommendation: • It is recommended that the City Council close the public hearing and approve first reading of the ordinance granting C. E. Machine Company, Inc. a 57. 5% tax exemption on the identified real property improvements for a five-year term, plus a 57. 5% tax exemption for a second five-year term, subject to City Council review. 10

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