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 11.24.14 ** HD iPad-Friendly -- Airborne 11.24.14 **
** Airborne 11.21.14 ** HD iPad-Friendly -- Airborne 11.21.14 **
** Airborne 11.19.14 ** HD iPad-Friendly -- Airborne 11.19.14 **

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 11.24.14: FAA Ready To Restrict UAVs?, Sonex's 500th!, Trig TT31 AML

Also: SWAPA Files For NMB, XCOR Milestone, RV Video Tips, Levil's New APP, Ready For AirVenture? In breaking news, ANN has learned that the upcoming regs for UAVs are likely to be >[...]

Is The FAA's UAV Policy Imminent?

Some Details Leaking On The Web, AMA Ready With Response Some details of what the FAA plans to propose when it releases its UAV policy are starting to leak out onto the Internet, a>[...]

Airborne 11.21.14: AEA's 3Q/14 Report, Fantasy Of Flight, Modernizing The NAS

Also: Holland Wants Gold, FAA Strangling UAVs?, RAF WWII Trainer For Sale, Bf109s Live, Georgia v Aerospace Engineers The Aircraft Electronics Association has released its third-qu>[...]

Airborne 11.24.14: FAA Ready To Restrict UAVs?, Sonex's 500th!, Trig TT31 AML

Also: SWAPA Files For NMB, XCOR Milestone, RV Video Tips, Levil's New APP, Ready For AirVenture? In breaking news, ANN has learned that the upcoming regs for UAVs are likely to be >[...]

ANN's Daily Aero-Linx (11.25.14)

FAA Air Traffic Controller Workforce Plan The Federal Aviation Administration (FAA) plans to hire and train tens of thousands of air traffic controllers over the next decade. FAA's>[...]

blog comments powered by Disqus



Advertisement

Advertisement

Podcasts

Advertisement

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