That Scott Walker 600 Job headline? Cost WIS 4 million+! --- With risk to taxpayers on aircraft deal

[Ellipsis]

Last edited Sun Jan 22, 2012, 09:17 AM - Edit history (1)

“We’re talking 600 new jobs,” Wisconsin Gov. Scott Walker said at the morning announcement at Richard I. Bong Municipal Airport. That’s the most associated with any new development since World War II, according to Superior Area Chamber of Commerce President Dave Miner.

http://www.ashlandcurrent.com/article/12/01/16/kestrel-aircraft-decision-brings-600-jobs-north



But Wait...

Kestrel Aircraft deal comes with risk to taxpayers



(snip)

The state of Wisconsin will lend Kestrel $4 million, though dates for when the company must begin repaying the loan haven’t been worked out, said Tom Thieding, a spokesman for the Wisconsin Economic Development Corp., which is administering the loans.

(snip)

More money needed

In total, government entities will provide $118 million in loans, grants and tax breaks and credits to bring the small-plane manufacturer to Superior and help it get off the ground. Because of the way the agreements are structured, that should translate to $28 million to $35 million that Kestrel can immediately access to manufacture its planes.

(Snip)

In its 33-page-plus document, the company said it has a commitment from an unnamed “major insurance company” to fund up to $35 million if the company gets approval for a federal program called New Market Tax Credits. In total, Kestrel anticipates getting $90 million worth of tax credits, which can translate into about $20 million to $25 million the company can directly use.

Kestrel’s Norris said the company will get the credits through the Wisconsin Housing and Economic Development Authority, or WHEDA, which already has offered about $40 million of the credits to the company from previous awards. The rest will come through future allocations, which he said he’s been told by WHEDA have already been requested.

http://www.duluthnewstribune.com/event/article/id/220645/group/News/





That my friends is ...The Scott Walker I have come to know!


.....And I wonder who the insurance company is.

[Scuba]

1. If 600 new, permanent, good jobs were generated for a $4M loan that would be a good deal...

... but at $118M that's almost $200K per job. Since this is a Walker deal, that's unlikely to be the worst of it.

[Ellipsis]

2. And there is no guarantee The FAA will aprove the Kestrel within the timeline ...or at all.

It's corporate welfare and It's so Scotty.

[mzteris]

6. and since most of those 600 will probably make

little more than minimum wage, I wonder where the rest of the $200k will go, eh?

[eShirl]

3. Well, that explains how Kestrel was lured away from a done deal here in Maine.

I knew it had to be something pretty sweet.

[Scuba]

7. Sorry, you can have them back as far as I'm concerned.

[Angry Dragon]

4. Corporate welfare at its finest

[leftyohiolib]

5. Richard I. Bong- gotta love that name. maybe better with a last name of Party or Ball

[Scuba]

8. The Bong Recreational Area in SE Wisconsin is a favorite for funny photos...

https://www.google.com/search?q=bong+recreation+area+sign+pic&hl=en&prmd=imvns&tbm=isch&tbo=u&source=univ&sa=X&ei=xiccT5jGB_KFsgKr6JHXCw&ved=0CCoQsAQ&biw=1280&bih=685&sei=yyccT5ukJ6H_sQKiu8ikCw

[Ellipsis]

9. World War II's number one flying Ace... and he did with this bad boy

P38 lightning




Single 20 mm. Hispano AN-M2C cannon and four .50" Colt-Browning MG 53-2 machine guns.
4,000 lbs of bombs or ten 5 in. unguided rocket projectiles