The state of Wisconsin is taking legal action against an airplane manufacturer that received $4 million in state loans and millions more in tax incentives in 2012 to build a plant in Superior that was to employ 665 people.
Five years after the loans were made to Kestrel Aircraft, the manufacturing plant hasn’t been built, there are no aircraft manufacturing jobs in Superior, and Kestrel – now part of ONE Aviation, headed by Northland aviation mogul Alan Klapmeier – hasn’t made a loan payment to the state in 11 months and is in default.
In a memo Monday from the Wisconsin Economic Development Corp. obtained by the News Tribune, state officials told the company they are “moving forward with legal action” because of “Kestrel’s inability to show measurable progress toward obtaining financing.”
“We will pursue any and all remedies available to us to protect the state’s investment,” the memo says.
Meanwhile, one year after being offered $1.5 million in public financial incentives to expand to the Grand Rapids airport, a subsidiary of ONE Aviation still hasn’t accepted the money.
Iron Range Resources and Rehabilitation Board officials confirmed this week that Albuquerque, N.M.-based ACC Manufacturing Inc., which makes composite airplane parts for its parent company, ONE Aviation, hasn’t used the $1.5 million Iron Range loan.
ONE Aviation – formed in 2015 by the merger of Kestrel Aircraft and Eclipse Aerospace – also hasn’t moved any work into a vacant hangar at the airport purchased by the Grand Rapids Economic Development Authority last year with a $293,000 loan
Article source: http://www.pressherald.com/2017/10/12/wisconsin-suing-kestrel-aircraft-over-loan-debt-stalled-financing/