Piper, State Of Florida Amend Incentive Agreement | Aero-News Network
Aero-News Network
RSS icon RSS feed
podcast icon MP3 podcast
Subscribe Aero-News e-mail Newsletter Subscribe

** Airborne 08.25.14 ** HD iPad-Friendly -- Airborne 08.25.14 **
** Airborne 08.22.14 ** HD iPad-Friendly -- Airborne 08.22.14 **
** Airborne 08.20.14 ** HD iPad-Friendly -- Airborne 08.20.14 **

Tue, Dec 11, 2012

Piper, State Of Florida Amend Incentive Agreement

Will Keep The Company In The Sunshine State

The Florida Department of Economic Opportunity and Piper Aircraft Inc. have agreed to amend an earlier contract to retain the company's operations in Florida and increase investment in aircraft manufacturing facilities.

Because the company is staying in Florida and has exceeded by about $30 million its capital and research and development investment obligations under the agreement, the state of Florida will permit Piper to retain half of approximately $6.6 million in economic development incentives already awarded to the company. Piper will be permitted to keep the other half, or about $3.3 million in previously awarded incentives, if it meets certain employment obligations for the next four years.
 
"Following a worldwide economic recession in general aviation, Piper is managing to emerge as a strong company with a backlog and a global presence in the aerospace industry," said Piper President and CEO Simon Caldecott. "As the largest manufacturing exporter in Indian River County, we are gratified that the state has recognized our ongoing contributions to Florida, Indian River County and Vero Beach."

The amendment calls for Piper to retain a specified number of 650 full-time equivalent positions, with an annual average salary of at least $46,500 for the four-year period. For each year the company meets the minimum employment threshold, its obligation to repay the approximately $3.3 million already received will be reduced by 25 percent. If Piper fails to meet the minimum employment threshold in any year, then it must repay significant amounts plus penalties.
 
Currently Piper is maintaining more than 650 full-time equivalent positions generating more than $40 million in annual payroll. The state of Florida has already received more than $13.3 million in escrowed funds that Piper has agreed will not be paid to the company under the original agreement, which was executed in 2008 prior to an unprecedented precipitous drop in the worldwide general aviation economy.
 
Piper requested that the state renegotiate its economic development incentive package in light of the unusual market realities for new aircraft sales and employment in the future. The recent amendment is a result of those negotiations. Since the original agreement and despite serious global economic challenges, Piper invested more than $100 million in the Vero Beach operation in addition to annual payroll and Florida supplier purchases. Piper's investment in the community, through product development costs and capital expenditures, has directly returned more than $9 for every $1 invested by the state and local governments in economic development incentives for the company and its employees.

FMI: www.piper.com

Advertisement

More News

Airborne 08.25.14: SpaceX Setback, AMA Fights FAA, Redbird Migration 2014

Also: Copperstate Fly-In, No-Fly List Changes, Volcano Alert, Inhofe Campaigns In RV-8 In an initial report, ANN space correspondent, Wes Oleszewski, said that on the evening of Au>[...]

Aero-TV: In The Nick Of Time? - A NextGen GA Fund Update

The GA World Needs All The Help It Can Get... IF It Can Get It A hot topic at EAA AirVenture 2014 was the subject of the FAA requirement to be ADS-B equipped by January 1, 2020. In>[...]

ANN's Daily Aero-Linx (08.27.14)

International Republic Seabee Owner's Club (IRSOC) A website dedicated to the Seabee seaplane. You can find information about the airplanes and events, and talk to other Seabee ent>[...]

ANN's Daily Aero-Term (08.27.14): GPS Approach Overlay Program

An authorization for pilots to use GPS avionics under IFR for flying designated existing nonprecision instrument approach procedures, with the exception of LOC, LDA, and SDF proced>[...]

Aero-News: Quote Of The Day (08.27.14)

“We are grateful to Bruce for his years of unparalleled dedication to general aviation, and are delighted that he has agreed to continue on as our senior safety advisor.&rdqu>[...]

blog comments powered by Disqus



Advertisement

Advertisement

Podcasts

Advertisement

© 2007 - 2014 Web Development & Design by Pauli Systems, LC