Springfield Plans Tax-Sharing Grant for Electra Aerospace Facility
Aerospace manufacturer Electra is poised to secure a seven-year employment incentive grant with the city of Springfield, sharing 50% of generated local taxes for a planned $1 billion manufacturing campus. The Springfield City Commission heard the first reading of the agreement on Tuesday, Oct. 6, paving the way for the Virginia-based company to build a 1-million-square-foot production facility at the Springfield-Beckley Municipal Airport.
The project centers on the production of the EL9 Ultra Short, a nine-passenger hybrid-electric aircraft capable of taking off and landing within 150 feet. Electra plans to invest $850 million initially, allocating $680 million toward construction and business fixtures alongside $170 million for machinery and equipment across 87 acres in the Green Township Joint Economic Development District (JEDD). The company also intends to base its corporate leadership at the Clark County site.
Employment Projections and Tax Revenue Structure
Tom Franzen, director of economic development and assistant city manager, told the commission that Electra’s expansion qualifies as a state-designated “mega-project.” The company projects creating up to 1,975 jobs with a combined payroll of $181 million. Under the proposed 7-year agreement, the city expects to generate approximately $1.4 million in income tax revenue.
Franzen emphasized that the tax-sharing arrangement functions on an earned basis. “The great thing about that program, it’s an earned program, so the company created the jobs, the income tax gets paid and then we pay off of what they’re actually paying,” Franzen said at the meeting. “It’s not a projection; it’s what’s actually paid.”
The projected incentive window spans from 2027 through 2033, with the agreement stipulating that the incentive period must begin no later than Jan. 1, 2034. Workforce numbers are slated to scale from two employees initially to 1,182 during the active window, eventually hitting 1,975 by 2035. Electra will submit annual summary reports to track the economic impact.
Electra Construction Begins in 2027 with Tax Exemptions
Dan Levy, Electra’s director of marketing and communications, stated that construction is scheduled to begin in the second or third quarter of 2027, with full project completion targeted for around 2035. The city commission anticipates voting on a $2.5 million land purchase agreement at its Oct. 20 meeting, with funds designated for airport infrastructure improvements.
Clark County commissioners previously established a Community Reinvestment Area granting Electra a 100% property tax exemption for 30 years. Additional compensation agreements guarantee that Green Township, the Greenon Local School District, and the Clark County Career Center each receive 25% of the real property tax revenue they would have normally collected.
What Is a Joint Economic Development District?
What is a Joint Economic Development District?
A JEDD is a formal agreement where one or more municipalities partner with a township to develop commercial or industrial land without annexing the township. The participating municipality receives a portion of the taxes generated within the district to support local infrastructure.
How short is the runway requirement for the EL9 Ultra Short?
The Electra EL9 Ultra Short hybrid-electric aircraft is designed to take off and land in only 150 feet, allowing it to operate in regional spaces that traditional commercial planes cannot access.
What are the projected hiring milestones for the project?
Electra’s workforce schedule expects employment counts to grow from two workers up to 1,182 employees during the 2027–2033 incentive window, reaching a projected total of 1,975 jobs by 2035.
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