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Council hears progress report on Kestrel aircraft project; landfill consultant work to begin

3867793 · June 19, 2025
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Summary

City staff updated the council on the Kestrel aircraft development’s financing status and downtown engineering activity, and reported landfill work including a near‑completion of a containment cell and planned consultant analysis to evaluate operations, revenue options and valuation.

City economic and public works staff updated the Superior Common Council on Oct. 15 about two long‑running projects: the Kestrel aircraft development and the municipal landfill.

On Kestrel, staff described ongoing coordination with project leaders and investors. City staff said project developers have faced financing delays from some outside partners that have pushed key milestones back 10–13 months, but that private investor discussions continue and project principals remain engaged. City staff described about 60 engineers currently working downtown on design and engineering tasks and said the developers planned a December meeting with the Federal Aviation Administration to advance prototype discussions.

Jason (city liaison) told councilors the total development could reach an estimated $120 million to $150 million when built out, and described the project as continuing to pursue private investors and new market tax‑credit partners. Staff offered to set up council visits to the developer’s site and encouraged councilors to contact project leads directly for updates.

On the landfill, staff reported that the second phase of the permitted containment cell (Cell 5) is near completion with liner and drainage material in place and the project on budget. Staff said a one‑time revenue source related to a separate dredging project had improved the landfill’s 2013 financial outlook and that, despite a 2013 operating deficit projection, year‑end results were expected to be roughly $400,000 better than budgeted due to receipt of that revenue.

The council previously authorized a contract with SAIC to evaluate landfill operations. Staff said the SAIC engagement will review current operating costs (trash collection and landfill operations), perform a waste‑shed analysis to estimate additional regional waste flows the facility could capture to raise revenue, and provide a valuation should the city decide to sell or market the landfill. Staff estimated the analysis could conclude in spring 2014 depending on data availability.

The updates were informational; no formal action was taken.