Heath E. Combs
WHITEHALL, Wis. — This city’s government has created a tax district that could help manufacturer Ashley Furniture expand its plant here.


Ashley hasn’t submitted formal plans but has worked with the city to plan a facility that could be built in the future, according to Lynn Johnson, city administrator.

The expansion would add up to 70,000 square feet to Ashley’s 74,000-square-foot components and finishing facility here, Johnson said. Ashley scaled back plans for a 200,000-square-foot expansion in Whitehall, according to company Chairman Ron Wanek.

The Whitehall City Council voted to create an 800-acre tax increment financing district. Ashley owns about 20 acres in the district. An expansion would retool production lines with new equipment but wouldn’t add many jobs to the 350-employee plant, Johnson said.

Money from the financing program would help pay for infrastructure improvements such as roads, sewer and water to the district. Tax increment financing uses future real estate tax benefits to pay for present improvement costs.

Wanek also said that Ashley is still considering the feasibility of a big East Coast project the company said earlier this year it was exploring. It would be an upholstery factory and distribution center of about 1.2 million square feet, possibly with a 300,000-square-foot case goods production facility as well. Locations the company was considering included the Carolinas and Virginia.

Also, Ashley is just completing a 750,000-square-foot expansion in its Arcadia, Wis., facilities, including 100,000 square feet of production space; 50,000 square feet for replacement parts; and 600,000 square feet of additional warehouse space.

The expansion also includes a new logistics office, rail tracks and an expanded intermodal yard.