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

2. 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

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

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

5. C.E. Machine
Existing Facility

6. C.E. Machine
Existing Facility

7. C.E. Machine Job Creation = 32.5% tax exemption
Capital Investment = 25.0% tax exemption
TOTAL = %, year tax exemption
Base
New
5 Year Projected
Jobs 82 15 97
M & E
$750,000
Real Prop
$1,000,000

8. 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 State $ 173
County $3,378 USD $6,472

9. 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

10. 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.

11. Office of Urban Development
C.E. Machine
Economic Development Exemption Request
Office of Urban Development
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