Saturday, October 25, 2003
Kansas City and the State of Missouri have a complicated deal to save the American Airlines maintenance hub in Kansas City. The 25-year agreement calls for Kansas City to arrange bond financing for $40 million. The financing will be used to outfit the facility to handle wide bodied jets.
The financing requires $3 million in annual debt service. The City will pay $2 million, and American will pay $1 million. The City's $2 million is a combination of sales taxes and state development tax credits.
American has made some commitments on maintaining employment at the base, but it seems that people are confused about this point. If jobs fall below 700, the agreement triggers a partial reimbursement from American.
Some Background on EDPro Weblog
The purpose of this weblog is to help economic development professionals -- EDPros -- keep up with the changes sweeping our profession. Strap on your goggles. It's a whole new game. There are no experts any more. The only place to learn about economic development is from other EDPros who are doing it.
One other point: the prevaling approach (paradigm, if you like) in economic development is shifting from competition to collaboration. There are a lot of reaasons underlying this shift, but here's the important insight: You, your community, and your region will do better by collaborating and sharing information.
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Speaking and workshops on Open Source Economic Development
As the idea of Open Source Economic Development starts spreading, more people are asking about it. Visit the I-Open web site to learn more. My colleagues and I are happy to explain the basic concepts in a talk or a workshop. E-mail Susan Alshuler if you'd like to learn more about workshops and speaking.
Background on Ed Morrison
Download some background information on me here.
Details on American Airlines maintenance hub deal
