Honda has big plans for airport expansion at Greensboro

GREENSBORO - Now that the Greensboro City Council and the Guilford County Board of Commissioners have been briefed on Honda Aircraft's incentives request, the scope of the project has become more clear and far-reaching.

The company's proposed $80 million expansion of its HondaJet operation at Piedmont Triad International Airport could include a parts center, a regional service center and a manufacturing component.

"There are three aspects of the incentive request," said Councilman Zack Matheny. "(But) I am looking at it as one big, giant project."

The expansion could generate up to 419 jobs over five years, local officials say. Most of those positions would be created in the manufacturing operation.

Efforts to get job breakdowns for each part of the expansion were unsuccessful Friday, but one local official called the manufacturing piece "the big prize."

It still isn't clear what part of the $4.5 million jet the company would make here.

In exchange for the jobs, Honda wants $775,000 in incentives from the county and $520,000 from the city. The numbers differ because the municipalities have different incentives policies.

On top of that money, the expansion would require $8.1 million in infrastructure improvements at PTI, where Honda has a 70-acre campus.

That money could come from Piedmont Triad Airport Authority coffers, Federal Aviation Administration grants and state job development grants.

"We would look for help in funding projects like this," said Kevin Baker, executive director of the airport authority. "We don't have anything in our budget for any specific project like that."

Baker said the authority does have some site development money but could not say how much. He did not rule out the possibility that Honda could cover some of the cost.

City officials said the $8.1 million could be used for site preparation, taxiway extensions and extending an apron to the new building or buildings the company would erect.

Local leaders say they have not been able to identify the city's competition for the expansion.

"I just know they already have a place in Tennessee they could use," said County Commissioner Billy Yow when asked about other possible sites. "We didn't get a total overview."

It could not be determined Friday whether the proposed parts center would cover HondaJet's national operation or just the company's northeast region, of which North Carolina is a part.

The company has five regions nationwide. Each will have a sales and service center. Those will provide annual inspections and regular maintenance on the jets and various support services for the jet owners.

Typically, these centers won't provide as many high-tech jobs as the manufacturing operation.

"We take care of everything from the nose to the tail," said Bob Van Riper, vice president of sales for HondaJet Southeast in Tallahassee, Fla. "You have everything from janitors to parts people to mechanics. There's a wide range."

Van Riper stressed that he could speak only for his operation and not for Honda Aviation.

A spokeswoman for American Honda Motor Co. in Torrance, Calif., would provide no details about the company's plans.

"At this point, that is just speculation," said Jennifer Cody, when asked about project details. "We can't confirm anything on that."

Cody also would not say when the company plans to select a site. But it could be soon.

County Commissioner Kirk Perkins said he was told the company wants to break ground in September.

At this point, at least two major questions remain.

The first concerns how the parts of the project will be divided.

One local official said PTI could win one, two or three parts of the package, or it could get none. That obviously would affect the number of jobs that would be created and the amount of Honda's investment.

The second question concerns what jet part Honda might make here.

One possibility would be the wings.

A spokesman said last week that Honda made the wings for the jets it is using in FAA testing at PTI, but added that no decision has been made on where the company would make the wings it uses in production.

Local officials say they don't get that type of information when they're briefed by economic development officials.

"They tell us as little as possible," Perkins said. "They ... just don't want to lay it all out."

More details may have to wait until the incentives hearings scheduled for next month. The City Council will hold its meeting Aug. 16, and the County Commissioners will meet Aug. 25.

Contact Donald W. Patterson at 373-7027 or don.patterson @news-record.com

nProposed incentives involve possible plans to service, maintain and even build jet parts here.