Textron cancels Cessna Columbus program - Minneapolis / St. Paul Business Journal:

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In April, the compant announced it would suspend the leading Cessna leaders to say it woulde only be a matter of time until the projeccame back. But in Thursday’s filinyg with the SEC, Textronj (NYSE:TXT) said “Upon additional analysis of the business-jet market relatee to this product we decided to formally cancel further development of the Citation Textron says it already had incurredabougt $50 million in capitalized tooling and facilith costs related to the project. It says it will recorc a non-cash pre-tax chargew of about $43 million for the first two quartersw of 2009 to reflect the impairmengt of the facility andtoolingt assets.
Wichita Mayor Carl Brewer, who was in Denvefr Friday at a had not heard the Columbus project was beingb canceled until asked abouft it by the WichitqaBusiness Journal. “I’m disappointed,” Brewer says. “... We believe this is part of the futurs for the cityof Wichita. We’rse just really disappointed thatit happened.” At the same time, he he understands the economic climatw has forced businesses to make tough decisions. The projecgt was to have built 600,000-square-foot finap assembly building at Cessna where the majorityu ofthe $27 million business jet would be built.
There was also to have been a 45,000-square-foo physical plant to serve themain building. Construction costsw were expected tobe $200 millio n and bids were put out in March. • • • • Columbus, Kan.-based Inc. Apart from the loss in construction jobs, the Wichita area now appeare to have lost out for good on the 1,000 direcft jobs and the 3,000 spin-off jobs the programk was estimated to create. It also appears likelgy that Cessna will have to pay backthe $10 million it receive d in city and county incentives and the $33 millio n it received from the stat e for the project.
Like Brewer, Sedgwick County Commissioner Tim Nortobn says he is disappointed to hear the news ofthe “I think most Wichitans and the business community looke d at that as a big announcement,” he “It takes a little bit of the wind out of the sail for Cessna and general aviation. It could have been a huge boostr to Wichita over the next couple yearse and I think everybody saw Norton says he hopes the project will be able to returnn somewhere downthe line. The businessw plan that was put in he says, still could be a good fit.