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Superior City Council Takes Up Kestrel, Community Of Color Commission

Councilors Also Address 5-Year Capital Improvement Plan

By
Elle McMahon for Wisconsin Public Radio

The Superior City Council decided Tuesday to join with the state in efforts to recover millions in loans awarded to an aircraft company for jobs that never materialized. The Wisconsin Economic Development Corporation said it would pursue legal action against Kestrel Aircraft Company last fall.

Kestrel Aircraft Company was issued $4 million in loans by the state in addition to a $2.6 million loan it received from the city of Superior and a roughly half-million-dollar loan from Douglas County. The governments announced their support in 2012 with the hopes the company would build an airplane manufacturing facility for its single-engine turboprop plane, the Kestrel 350. The deal was anticipated to create more than 600 jobs in Superior. However, the company employs a fraction of those workers and hasn’t made loan payments since late 2016.

Wisconsin Public Radio first reported in 2015 that the state signed off on the deal without proper review despite reservations surrounding the risk of the project.

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Superior Mayor Jim Paine said it’s better for the city to join with the state in any legal challenge against the company.

“The fact is the state had a much larger stake in this project then the city did so it would be surprising if they didn’t pursue their interest,” he said. “But, we definitely were following their lead on it because they were in first position on the loan. I think it’s a wise decision to join with them, to recognize that everyone that went in on this project is going to go forward together even if going forward isn’t very pleasant.”

Paine said the company reached out to the city, asking them not to join any lawsuit filed by the state.

“We tried for a very long time to work with the Kestrel organization to build a project in Superior. Failing that, we want them to repay the loan we made in good faith. That’s really our only interest,” he said. “If Kestrel were to reach out even today with the money that they owe us, I think the world changes quite a bit. That’s all we’re really asking for because that’s money that belongs to citizens of Superior.”

There is about $2 million outstanding on the city’s loan. A spokesman with WEDC released an updated statement this week, saying the agency has not yet gone to court to recover the money. However, WEDC went on to say it will “pursue any and all remedies available to protect the state’s investment.”

A spokeswoman with Kestrel Aircraft Company and its parent company, One Aviation, declined to comment on Tuesday.

Community of Color Commission

The Superior City Council also unanimously signed off on the creation of a community of color commission at its Tuesday meeting.

Superior’s mayor is appointing four people to serve on the commission to research and develop policy on issues facing communities of color in the city. Four people were appointed to serve on the commission, including Kym Young. She said the body is needed to move the city forward as a more diverse, accepting community.

“It’s all of us coming together to make our community better,” she said.

Young said one of her priorities for the commission will be to do more to attract and retain people of color in Superior.

“Our communities of color are pretty transient right now. If they can’t make it in Superior within six months, they usually leave,” she said. “We’d like to see young families start to stay here. We need to increase job opportunities, housing opportunities, educational opportunities not only for the white citizens of Superior but the people of color here.”

Superior Mayor Jim Paine said the creation of the commission is long overdue.

“People of color live in this community. They have every bit as much value as every other citizen in this community. We also need to recognize that they haven’t been treated that way. There are some very really systemic and direct inequalities that are perpetuated against people of color in this community,” he said.

The commission will be tasked with setting the mission and priorities it will undertake. However, Paine said he would like to see the group examine diversity in hiring at the city, community and police relations, and police and fire training. Natasha Lancour, Stephan Witherspoon and Jerel Benton are among those who will serve on the commission.

Five-Year Capital Improvement Plan

Superior’s Committee of the Whole also approved a roughly $64 million capital improvement plan for the city over the next five years. The plan includes funding for street projects, improvements to city buildings, a new fire hall and sidewalks.

Around half of the money for capital improvements will be generated by the city’s oil pipeline terminal tax. Finance Director Jean Vito said that fund has grown to about $5 million annually and reduces the city’s reliance on the general fund to pay for capital projects.