ARCADIA, WI --  Ashley Furniture will donate a $6 million tax credit from Wisconsin's Economic Development Corporation to the city of Arcadia to help reroute a creek that has been the source of flooding issues in the community.

Arcadia, located in western Wisconsin, is the home to Ashley’s headquarters, as well as a 2.2 million square foot case goods factory. A 2010 flood in Arcadia caused approximately $7 million in damages to the Ashley factory, according to news reports. The city of Arcadia has been working on a creek redirection project for nearly four years.

It took Ashley executives three years to secure the tax credit, but before the money would be approved, the WEDC required Ashley Furniture to agree to $34.9 million expansion of its Arcadia factory and a baseline employment agreement. Ashley Furniture will not be able to go below a little more than 1,900 employees over three years under the agreement, according to news reports.

Earlier this year Ashley Furniture expanded its factory in Whitehall, WI. The $13 million expansion project doubled the size of the original facility, to 160,000 square-feet.