F&E Aircraft Maintenance (FEAM AERO), a provider of aircraft maintenance and engineering services, will locate a new three-bay hangar at the Cincinnati/Northern Kentucky International Airport in Hebron, Kentucky. The $40.2 million project is expected to create roughly 250 jobs.
The company will construct a 150,000-square-foot, three-bay hangar to house Boeing 767 aircraft, with work expected to begin in June of this year and completed by the end of 2023. The location will include 15,000 square feet of back shop space, 5,000 square feet of office space and 175,000 square feet of ramp access.
“We are not only excited for the opportunity to continue growing our relationship with CVG airport, but we are also thrilled in continuing to exceed our customer expectations, delivering them more value at such a critical time in aviation,” said FEAM AERO owner and CEO Fred Murphy, “while at the same time staying true to our values in putting people at the heart of everything we do by investing and growing the FEAM team in the surrounding communities.”
To encourage the investment and job growth in the community, the Kentucky Economic Development Finance Authority preliminarily approved a 10-year incentive agreement with the company under the Kentucky Business Investment program. The performance-based agreement can provide up to $1.75 million in tax incentives based on the company’s investment of $40.2 million and annual targets of creation and maintenance of 124 Kentucky-resident, full-time jobs across 10 years and paying an average hourly wage of $38.50 including benefits across those jobs.
Additionally, KEDFA approved FEAM AERO for up to $300,000 in tax incentives through the Kentucky Enterprise Initiative Act (KEIA). KEIA allows approved companies to recoup Kentucky sales and use tax on construction costs, building fixtures, equipment used in research and development and electronic processing.
“We continue to see existing Kentucky businesses grow and create quality jobs throughout the state, and FEAM AERO is the latest example of a company with a vision for the future in the commonwealth,” Governor Andy Beshear said. “These well-paying positions will benefit well over 100 Kentucky families while also improving support for two of our major air hubs at CVG Airport.”
By meeting its annual targets over the agreement term, the company can be eligible to keep a portion of the new tax revenue it generates. The company may claim eligible incentives against its income tax liability and/or wage assessments. In addition, FEAM AERO can receive resources from Kentucky’s workforce service providers.
“We have tremendous assets in the Amazon Air and DHL air cargo hubs at CVG driving significant growth in aviation maintenance with highly technical and high-paying jobs being created by FEAM AERO,” added Lee Crume, President & CEO of Northern Kentucky Tri-ED. “We are using our Target Industry Analysis to identify new manufacturing operations that support the expansion of companies like FEAM, so that components and parts are easily accessible in the region.”