WICHITA, Kansas —The Wichita City Council approved a property tax exemption on Tuesday that should keep aircraft jobs in Wichita. Capps Manufacturing is expanding its business to do work for Hawker Beechcraft. It is work that could have been sent to Mexico.
“My father, Barney Capps, started the company in the 60’s in our two car garage,” said Ron Capps.
Today the company takes up the better part of a city block in southwest Wichita. Capps employs more than 150 people and is about to grow.
“Hawker Beechcraft is closing Plant One,” said Capps. “It’s in their long-term plan. That’s fabrication work and that’s what we do.”
Capps Manufacturing will buy the equipment Hawker currently uses, build the parts, and sell them back to Hawker. This keeps work in Wichita that may have otherwise gone elsewhere.
“Between now and the end of the year we will probably add around 31 jobs,” said Capps. “The average wage will be around $40,000 a year.”
It’s not a first for the homegrown company. In the past, Capps has brought jobs from Mexico to Wichita, a move praised at Tuesday’s City Council meeting.
“They just weren’t happy with the work quality down in Mexico,” said Michael O’Donnell, Wichita City Council member.
The current expansion is thanks to an 80 percent property tax exemption approved Tuesday by the City Council. It’s a deal that will last at least five years and could be extended to 10 years.
In return, Capps will invest $2.2 million for equipment and a 27,000 square-foot building.
In all, the deal costs Wichita $8,250 in lost taxes, but the city estimates its return on the investment to be 1.83 to 1.
“It’s a win-win for everybody in the state and city,” said Capps.
A city that’s seen many jobs go south of the border, this time bringing them back the other way.