Kestrel’s Expansion Plans In Superior Uncertain

Mayor Hagen: 'I'd Put It At A 50-50' Chance

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Superior Mayor Bruce Hagen told FOX 21’s Dan Hanger Monday there’s a very real possibility Kestrel Aircraft won’t be expanding into Superior and creating 600 jobs.

Mayor Hagen admits he got overly excited about the project and never expected the process to get so complicated, especially with the much-needed New Market Tax Credits.

But that said, Hagen is determined as ever to get Kestrel what it needs to open a manufacturing plant in Superior.

It was Jan. 16, 2012 when the official announcement came down in a press conference about Kestrel expanding production into Superior.

“This may be the largest economic development project coming to our community since the end of WWII,” Hagen said at that news conference.

But, now, that development may not be happening after all.

“I’d put it at a 50-50,” Hagen said.

Hagen says Kestrel was under the assumption the State of Wisconsin would put $90 million worth of New Market Tax Credits toward the project.

But so far only $30 million has come through – and even that number, Hagen says, is significantly lower by the time all the hands are out of the pot.

“As it was described to me, it’s a very good piece of legislation for attorneys,” Hagen said while explaining the process of dispersing the money.

Hagen met with Kestrel CEO Alan Klapmeier last week to try to figure out alternative sources of funding to help make up for the loss in state tax credits.

“If they decide they’re going to build them elsewhere because of their unhappiness with the State of Wisconsin, I can’t control that,” Hagen explained.

“How real is that,” Hanger replied.

“It’s very real,” Hagen answered.

Meanwhile Hagen says Kestrel has only gotten through about 60 percent of the new aircraft review process from the Federal Aviation Administration, which he believes, can make investors weary.

“As Alan puts it, you need a plane to build before you need a building,” Hagen said.

Right now, the proposed future spot for the building remains a big parking lot on the Superior Fairgrounds next to the Bong Airport.

“I don’t think we are at a danger point,” Hagen said.

Mayor Hagen remains committed to make sure Superior stands proud with Kestrel until construction begins and the new planes start to fly.

“I was very excited and still continue to be. I was probably overly excited with the regard of anticipation versus the reality of what it takes to get certification for a new airplane in this world,” Hagen said.

A bit of positive momentum has recently moved in on the project with Kestrel going after much larger investors – investors that are showing signs of interest, according to Hagen.