Superior joins state in asking Kestrel to pay back millions in l - KBJR 6 Your Weather Authority: News, Weather & Sports

Superior joins state in asking Kestrel to pay back millions in loans

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SUPERIOR, WI -

The Superior City Council is siding with the state, in asking Kestrel Aircraft to pay up.

This comes after the company was awarded millions in loans on the promise of creating jobs that the city never saw.

According to Wisconsin Public Radio, Superior City Councilors made that decision during Tuesday night's meeting. 

WPR reports Kestrel was issued $4 million in loans by the state, a $2.6 million loan from the City of Superior, and a roughly $500,000 loan from Douglas County. 

The state hoped the company would build an airplane manufacturing facility, a deal that they expected would create about 600 jobs in Superior. But, according to WPR, as of now, the company employs a fraction of those workers and hasn't made loan payments since late 2016. 

Last fall, the Wisconsin Economic Development Corporation said it would pursue legal action against Kestrel. 

Superior Mayor Jim Paine told Wisconsin Public Radio that Kestrel reached out to the city, asking them not to join any lawsuit filed by the state. But Paine added that it's better to side with the state here. 

There is about $2 million outstanding on the city of Superior's loan. A spokeswoman with Kestrel Aircraft Company and its parent company, One Aviation, declined WPR's request for a comment.

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