The City of Park Falls received welcome news today from the Executive Director of the Wisconsin Housing and Economic Development Authority (WHEDA), as two high profile projects are expected to move forward, saving and creating jobs and spurring further development.

Making the announcement from the site of Flambeau River Papers, Riley announced a partnership with Impact Seven, First National Bank of Park Falls, and a consortium of other lenders to provide financing for two new towers at the paper mill. WHEDA has approved a $1.76 million Neighborhood Business Revitalization Guarantee on a $2.3 million package that is a critical component for the project to move forward.

In doing so, more than 300 jobs at the mill will be preserved.

WHEDA Executive Director Antonio Riley made the announcement this afternoon at the mill.

“We are so proud at WHEDA to use our financing tools to help a community like Park Falls retain an industry that has been the lifeblood of the city for over a century,” said Riley. “What’s more, we’re not only saving jobs right at this mill, but we’re protecting hundreds of lumber and related jobs across the northwoods. Flambeau River Papers, under the leadership of Butch Johnson, has demonstrated a commitment to this community, and the State of Wisconsin is committed to Flambeau River Papers.”

“Mr. Johnson and his team have been on the front lines each day working to keep this business running smoothly. They have a sound management plan and years of experience under their belt,” said Riley.

Flambeau River Papers also received nearly $12 million in grants from the Wisconsin Department of Commerce and Department of Energy Independence as well as low cost financing from the Department of Commerce between 2006 and 2008.

In addition to the financing for Flambeau River Papers, Riley also announced a $3.4 million grant from the American Recovery and Reinvestment Act (ARRA) that will allow the Lincoln School Apartments development on 2nd Avenue to move forward.

Lincoln School Apartments will be an adaptive reuse of the now-vacant Park Falls Elementary school, converting it into 24 family rental units.

“Not only is Park Falls going to keep a significant employer, the residents will have 24 new affordable apartments to look forward to ˆ in what will be a great reuse of an existing building,” said Riley. “What’s more, we expect to create 39 new construction jobs as a result of the work on the school.”

The grant is part of $100 million in Recovery funding for affordable housing being built throughout Wisconsin. The funding, in the form of loans and grants, was approved by WHEDA for 36 developments that were stalled last year or awarded a Low Income Housing Tax Credits allocation earlier this year.

Through ARRA, WHEDA as a tax credit allocating authority received $35.5 million in Tax Credit Assistance Program dollars and over $100 million in Exchange dollars earlier this year. The TCAP program was created to fill gaps where private investment does not meet the construction cost. The Exchange program, which funded the Park Falls project, allows WHEDA to exchange previously allocated tax credits for cash. Currently, WHEDA has approved 19 TCAP deals for $30 million and 17 Exchange deals for $72 million to create 2,252 units and over 2,076 construction and construction-related jobs. Developers with stalled deals needed to apply for the funding.

Earlier in the day, Riley celebrated the grand opening of the Washington Building Apartments in Superior and Northwoods Creative Kids in Minocqua.

“Today has been a day to celebrate the good things happening in the northwoods— new, high quality affordable housing, creative rehabilitation of vacant buildings, and the growth and preservation of business in our small towns,” said Riley.

WHEDA is an independent state authority that works with lenders to provide low-cost financing for housing and small business development in Wisconsin. For more information about WHEDA’s housing programs, call 1-800-334-6873.

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