BRUNSWICK, Maine (NEWS CENTER) - Maine's Economic development commissioner says state government did everything it could to attract Kestrel Aircraft to build its manufacturing plant in Brunswick. But in the end the company chose to build it in Wisconsin instead, creating an estimated 300 to 600 jobs in that state.
When the company first proposed setting up at Brunswick Landing, Kestrel was offering just the kind of jobs Maine wants. But Kestrel also needed up to 100 million dollars to start up production. And it turned out Maine wasn't able to help the company find that money quickly enough to land all the jobs. Wisconsin was able to provide the needed financing, so Kestrel went West.
Economic Development Commissioner George Gervais says Maine was very competitive with Wisconsin - except for one area. Kestrel was counting on a federal tax credit program called New Markets to provide the financing needed to start up production. A private, non-profit economic development agency called CEI manages the New Markets program in Maine, and Gervais says CEI had assured Kestrel it would provide the company all the tax credits it needed to raise money. But it only approved $20 million in credits, far less that the company required.
Wisconsin reportedly provided up to $90 million in new markets credits. Gervais blames CEI for the loss of Kestrel. But CEI says that's not true. The agency says it never promised Kestrel more than the $20 million in tax credits the board approved last year. Charlie Spies of CEI says that was clear to Kestrel all along. He also says CEI has provided financing for at least one other company setting up at Brunswick Landing.
State senator Stan Gersofsky says he also thinks Kestrel would have stayed if it had gotten all the tax credits it expected. But Gersofsky also says Wisconsin had an inside advantage. He says Kestrel's founder is from Superior, Wisconsin, where the new plant will be built. He says Alan Klapmeir had previously led another successful airplane company, called Cirrus, in the same region. He sates Wisconsin knew him and his business and wanted to keep him there.
Both Sen. Gersofsky and Comm. Gervais says Kestrel still plans to locate about 100 jobs in Brunswick, Those workers will do painting and finishing and deliver the new planes to the customers.
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