State Claims The Company Failed To Make Loan Payments
The Wisconsin Economic Development Corporation is pursuing legal action against an aircraft company that once planned to build a plane manufacturing facility in Superior. The state claims the company hasn’t made loan payments in almost a year.
WEDC awarded Kestrel Aircraft Company millions of dollars in loans five years ago with the hopes of creating 600 jobs in Superior. The jobs haven’t materialized, and the company defaulted on its loans earlier this year....
Other Info
Kestrel K-350 POC
Role single engine turboprop
Manufacturer Kestrel Aircraft/One Aviation
First flight 29 July 2006
Number built 1 proof-of-concept
Unit cost USD$3.2 million (projected)
Ken Notes: Ouch, this one will bite us in the... This is why we should restructure our loan/grant programs to a new jobs based tax credit. If there is not enough corporate profit the credits could be sold to other companies to generate revenue.
In my program we would have offered a 12 million dollar corporate tax rebate over ten years based on 600 jobs, a bank would have lent the "up front" cash, in this case since no jobs were created we are off the hook with no need for clawbacks or legal action.
Kestrel is now ONE Aviation Corporation which builds and sell other models but the Kestrel has yet to be built, my guess is that ONE is not on the hook for the Kestral loan...
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- - Volume: 5 - WEEK: 41 Date: 10/12/2017 9:25:33 AM -