AB 492

This bill authorizes the Wisconsin Economic Development Corporation to

award a loan of up to $50,000,000 to the Consolidated Cooperative or other eligible

borrower in relation to the Verso Paper Mill in the city of Wisconsin Rapids. The loan

may be used for any or all of the following:

1. Purchase of the Mill.

2. Improvements to infrastructure related to the Mill.

3. Equipment upgrades at the Mill.

The loan is to be for the term and upon the conditions as may be agreed upon

between the parties, except that the loan contract must provide WEDC with a

security interest in the Mill to secure repayment of the loan. Under the bill, WEDC

may establish an interest rate for the loan that is below the market rate, and at the

corporation's discretion, the loan may be forgivable. Additionally, the bill provides

that before awarding the loan WEDC may determine that substantial additional

funding for the purposes specified above has been secured from both nonstate

revenue sources and in the form of a loan issued by the Board of Commissioners of

Public Lands to an entity eligible for the loan.

The bill also authorizes WEDC to award a loan of up to $15,000,000 to the Park

Falls Mill Multi-Stakeholder Cooperative or other eligible borrower in relation to

the Park Falls Pulp and Paper Mill in the city of Park Falls. The loan may be used

for any or all of the following:

1. Purchase of the Mill.

2. Improvements to infrastructure related to the Mill.

3. Equipment upgrades at the Mill.

The loan is to be for the term and upon the conditions as may be agreed upon

between the parties, except that the loan contract must provide WEDC with a

security interest in the Mill to secure repayment of the loan. Under the bill, WEDC

may establish an interest rate for the loan that is below the market rate, and at the

corporation's discretion, the loan may be forgivable. Additionally, the bill provides

that before awarding the loan WEDC may determine that substantial additional

funding for the purposes specified above has been secured from both nonstate

revenue sources and in the form of a loan issued by the Board of Commissioners of

Public Lands to an entity eligible for the loan.

If the loans described above are awarded, the bill also provides additional

funding for the University of Wisconsin System under its general program

operations appropriation and additional funding for special education aid the

Department of Public Instruction pays to school districts, independent charter

schools, cooperative educational service agencies, and county children with

disabilities education boards.