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Development News for the Week of 11/24/2011-12/2/2011
Downtown facelift planned, but Soglin says costs currently prohibitive
A proposed plan for Downtown Madison proposes dramatic lakefront improvements, new parks and more, but Mayor Paul Soglin says tight finances will prevent the city from doing big public projects any time soon. The 133-page plan — three years in the making — also tries to balance tensions between preservation and development with new building heights and a vision for neighborhoods. The plan has recommendations to build the economy, increase transportation choices and for energy efficiency. Under the plan, Law Park on Lake Monona would be transformed into "signature" gathering space. The city would expand the shoreline with fill to create a festival grounds and add a boat house based on a Frank Lloyd Wright design, fishing pier, boat docking and rentals, and connect the area to Downtown with two land bridges over John Nolen Drive and railroad tracks. The plan calls for a bicycle-pedestrian path along the Lake Mendota shore connecting James Madison Park and UW-Madison's Memorial Union. Fourteen city committees will review the plan. The City Council will consider it as soon as this spring.
Another only in Madison moment
The never-ending Edgewater hotel saga has triggered plenty of "You gotta be kidding me" moments. Well, here's another doozy: Wealthy Downtown property owner Fred Mohs just asked the Wisconsin Supreme Court to take up his frivolous lawsuit against the city for approving the project in May 2010. Mohs continues to push delay tactics in court even though the Madison City Council has now reversed itself, apparently killing the project. Confused? That's understandable, given all the twists, turns and tie-ups to this $98 million project that would have created hundreds of union construction jobs, added tens of millions of dollars to the city tax base and given the public a beautiful terrace overlooking Lake Monona. Suffice it to say that Mohs should give it a rest. The Supreme Court has enough to do — and enough of its own troubles — without getting dragged into Madison's long-running soap opera. Mohs has been a leading and big-spending opponent of the Edgewater redevelopment for years now. And when he didn't get his way at City Hall, he went to court. That ate up a lot of time. But both a Dane County judge and the 4th District Court of Appeals swatted his lawsuit aside. Yet a funny thing happened on the way to dramatically improving the outdated and deteriorating Edgewater: So much time went by after city approval that a new mayor — Paul Soglin, whom Mohs backed — was elected. Then Soglin reneged on the city's financial commitment to The Edgewater developer.
Edgewater developer pushes ahead for TIF; appeals court ruling challenged
The developer proposing a $98 million remake of the Edgewater hotel intends to do everything possible to access $16 million in city public assistance available only until Dec. 31. Meanwhile, two Madison residents are asking the state Supreme Court to review a state appellate court ruling that in late October removed a final legal roadblock for the redevelopment. Robert Dunn, president of the Hammes Co., was unable to secure private financing for the Edgewater project until after the appellate court ruling and now has little time to obtain $16 million in city tax incremental financing (TIF) support available in the 2011 budget. The council on Nov. 16 approved only $3.3 million in TIF — a sum Dunn has said won't work — for 2012. Speaking publicly for the first time since the council vote, Dunn said he will submit all remaining documents required of him this week to access the $16 million. He is hoping the city will do everything possible to deliver the money by year's end. Dunn and city staff still must complete a TIF agreement, and the council must approve the borrowing with a supermajority vote. The city attorney's office has said it's virtually impossible to get all that done by Dec. 31. "I will continue to focus on doing the things I have control over to move the Edgewater forward," Dunn said. "There's no question the timing makes it difficult. It's up to the city."
Time running out for Edgewater
The developer behind the Edgewater hotel project said Thursday that he is fulfilling the last of more than 70 conditions to secure public funding for the proposed redevelopment. But City Attorney Michael May sent a letter Thursday to Hammes Co. President Robert Dunn and his attorney attempting to clarify numerous hurdles the city still faces. The letter also said the public financing is not likely to come through this year, which the developer has said would effectively kill the $98 million project. After the Madison City Council on Nov. 16 shot down an amendment to reauthorize $16 million in tax incremental financing for the project, it’s been unclear whether it would move forward. After the vote, Dunn seemed to agree it was almost impossible that the TIF financing could be completed in 2011, May wrote in his letter. He added, “The events of the last two weeks make it even less possible.” Dunn said he didn’t agree with some of what was laid out in May’s four-page letter, but added the letter does identify a way the city “can meet its obligations” and he’s prepared to work closely with the city to do that.
Decision on forgiving $1.1 million Genesis loan on tap
The Madison City Council is scheduled to decide Tuesday whether to forgive $1.1 million in loans to the Genesis Enterprise Center amid questions about where money loaned to the financially troubled business incubator has gone. The nonprofit entity associated with the enterprise center, Genesis Development Corp., hasn't filed required tax forms with the IRS since the 2007 tax year, according to GuideStar, which tracks U.S. nonprofits. The forms are designed to disclose payments to top officials, income and other financial information. The IRS automatically revokes an organization's tax-exempt status if it fails to file the required disclosures three years in a row. That's what happened to another Genesis entity — the Genesis Community Development Corp. — which lost its standing as a nonprofit in 2010. And Genesis Development Corp. was administratively dissolved by the state Department of Financial Institutions last month, raising further questions about its status. The brainchild of Madison's Mt. Zion Baptist Church, the Genesis Enterprise Center opened in 2002. The incubator has helped more than 100 minority and disadvantaged business startups, Mt. Zion pastor Richard Jones said in a letter to Mayor Paul Soglin.
City Council delays decision on forgiving $1.1 million loan to Genesis
The Madison City Council delayed a decision on whether to forgive $1.1 million in loans to the Genesis Enterprise Center on Tuesday evening. Salli Martyniak, president of Forward Community Investments, said her group and the Wisconsin Housing and Economic Development Authority have asked for a delay until January. Madison is just one of the lending partners in nearly $3 million in loans made in 2005 to Genesis, and "to unravel just one piece of the transaction could cause certain things to happen that would not be in the best interests of some of the lenders," Martyniak said. Mayor Paul Soglin had requested the city forgive its portion of the loan, saying the business incubator is in foreclosure and the city was unlikely to recoup the federal Community Development Block Grant funds it loaned to Genesis. The city is not required to repay those funds. "There were a good deal of analyses over the last four years or so, reviewing exactly what happened here. What were the errors in the decision-making process? I want to point out that the purpose of that is not to lay blame but it's to learn from the mistakes ... made so we can move forward," Soglin said at Tuesday's council meeting.
School Board members float alternatives to Madison Prep charter school
Two Madison School Board members who say they are likely to vote no on Dec. 19 when the Madison Preparatory Academy proposal comes before the board for final approval or denial have some ideas they believe would better serve all of Madison's students. Marj Passman, School Board vice president, says she hopes the local Urban League and its president, Kaleem Caire, will pursue funding for Madison Prep as a private school if the proposal fails to gain approval from a majority of board members. Passman says it's likely she will vote against Madison Prep as a public charter school, although she will look at an administrative analysis due by Dec. 4 prior to making her final decision. "There's been a lot of community support and I'm sure he (Caire) can come up with the money for the school as a private academy," Passman told me in a recent phone interview. "Then he could pursue the school in its purest form, he won't have to compromise his ideas, and he can showcase how all these elements are going to work to help eliminate the achievement gap, increase graduation rates and raise GPAs for minority students," she says. Passman suggests that the district could work closely with Madison Prep on a contract basis to provide some of the services or resources it might need, like playing fields for athletics or library/media materials.
Fast-growing Monkey Bar Gym swings for more success
Jon Hinds now has 14 national and international locations of his Monkey Bar Gymnasium and about 400 members in Madison, but for the first two months after opening his original gym at the top of Williamson Street, Hinds had just one client. Hinds had just moved back to his native Madison from Los Angeles, where he was charging $150 an hour training professional basketball and baseball players, and was essentially giving the gym's sole member daily private lessons for $75 a month. "Everybody was telling me just close it up, close it up. Just get a job at UPS or something," Hinds recalled. "I said, 'nope, I know this is going to work.'" Now there are people using Monkey Bar principles all over the world with licensees in Australia, Japan, Canada and soon Sweden. Last year, the fast-growing company was featured in five national fitness magazines. Monkey Bar Gym specializes in natural movements, or what is known as "functional fitness" in workout jargon. It relies on body weight training and resistance, eschewing the usual weight benches and health club machinery for equipment like ropes, kettlebells, sandbags and tires.
Chamber of Commerce and Madison School District join forces on student jobs program
Students who are bored with high school have some constructive options: Get involved with sports, music, drama, debate or a service club. Take more rigorous, challenging classes. Volunteer with a charity outside of school. By contrast, there are other, less constructive, options many teens choose: Distract classmates, engage in social drama, pick fights, defy teachers, cut classes, quit school, get in trouble with the law. "There are students for whom conventional schoolwork isn't all that compelling," says Jennifer Alexander, president of the Greater Madison Chamber of Commerce. She should know. She's a former high school teacher and principal. But her interest in students who aren't always fully engaged with school goes far deeper. "In all honesty, I have to say, I was one of them. I always wanted to do things that felt more immediate, more relevant, more real. I think a lot of students may feel that way," she says. Alexander may have been somewhat bored by school, but she has successfully navigated a top-flight career that's included powerful roles in academic, government, nonprofit and business circles.
Madison's AquaMost raises additional $4 million
AquaMost, a Madison company developing a new type of water purification technology, has received another $4 million in investment funds and grant money. Led by Golden Angels Network of Milwaukee with participation by Inventure Capital and Wisconsin Investment Partners, both of Madison, investors have provided $3 million in second-round financing. AquaMost also has received a $1 million phase 2 Small Business Innovation Research grant from the National Institutes of Health. AquaMost's technology, called photoelectrocatalytic oxidation, was invented at UW-Madison.
Spectrum Brands lands $4 million from the state to hire 60, expand factories
A year ago, Spectrum Brands moved its headquarters back to Madison after a six-year run in Atlanta. On Tuesday, the former Rayovac Corp. announced a deal with the state to invest $40 million in its Wisconsin operations, hire 60 new staffers immediately and keep its headquarters in Madison through 2016. For help, Spectrum Brands is receiving an interest free, $4 million forgivable loan from the Wisconsin Economic Development Commission. If Spectrum follows through on its plans and maintains at least 470 full-time employees in Madison until Oct. 1, 2016, it doesn't have to pay the money back. "This award has been provided to preserve jobs at Spectrum Brands headquarters as part of the company's investment in its operations," commission CEO Paul Jadin said in a prepared statement. It's unclear exactly how Spectrum will invest $40 million. In addition to its worldwide headquarters on the West Beltline, Spectrum has battery manufacturing plants in Fennimore and Portage and a small returns center in DeForest.
A smaller footprint for a new Union Theater lobby was approved by a UW-Madison committee Thursday in response to public outcry over the original plans. Members of the public said the initial design, part of $52 million in renovations to the Memorial Union, would obstruct views and inhibit seating on the Union Terrace. Students voted against the original design in a non-binding referendum in October, 50.24 percent to 49.76 percent. The new plans approved by the Union Design Committee on Thursday create a lobby that extends 30 feet north onto the Terrace, not the 53 feet called for in the original design. “I’m glad they’ve scaled it back,” said Dierk Polzin, one of the creators of Save The Terrace, a group opposed to the original design. “I think it’s more what the students would like.” The plans call for the removal of a historic oak tree to the east of the theater, which also has sparked opposition. Union officials say an analysis by an arborist shows the tree is rotting.
Around the State and Points Elsewhere
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The union which represents Milwaukee janitors is planning a rally Thursday after the replacement of a unionized cleaning firm with a non-union contractor. The Service Employees International Union Local 1 represents employees at Regency Janitorial, which on Wednesday was replaced by a non-union firm, said Dave Somerscales, a union spokesman. Regency had a contract to clean an office building at 875 E. Wisconsin Ave. owned by an affiliate of Wangard Partners Inc. As a result, 10 of the building's 12 janitors have been fired, Somerscales said. He said the building's new janitors, including the former Regency employees being hired by the non-union firm, will earn less than $8 an hour, with no health insurance, compared to wages of $11 an hour, and health insurance, under the union contract. The name of the new firm couldn't be verified. "We respect the role of labor unions, and we regularly use union contractors on many of the projects in which we are involved," said Daniel Crowe, of Wangard Partners. "However, in this case, based on a review of the building regarding maintenance, we decided to seek competitive bids from both union and non-union firms for the work," Crowe said, in a statement. "Several companies responded, and we selected an organization that will help raise the quality of the maintenance work at the building. "The decision on the company selected was based on merit and the ability to meet the high standards and sustainability practices we set for the care and attention we provide to our tenants." The union is leading a protest at noon outside the 225,000-square-foot building.
Units have already been sold for a 56-unit condo development near Seven Stone and Williams Drive off Highway 164 said Sussex Village Administrator Jeremy Smith. "They are building for people," Smith said Tuesday. He said the final lift of asphalt was put down recently. Site grading, installation of water mains, sanitary sewer, and storm sewer, as well as curbs and gutters for streets were also completed recently. Village officials provided more than a million dollars for public improvements in order to help spur sales next spring in a private condominium project whose developers have entered into a unique agreement with the village. The land owners, Peter and Herbert Gross, along with John Whalen of Corner Stone Development, have agreed to repay the village for the improvements through special real estate tax assessments. Construction contractors D.F. Tomasini of Sussex submitted the lowest competitive bid for the project at $1,043, 237. Smith said Tuesday the next phase of construction is a clubhouse and the first unit before the end of the year and coming out of spring the goal is to be working on the next couple of buildings.
Jake's Delicatessen has dropped plans to open a second location at Glendale Market shopping center, and is instead considering other nearby sites. Jake's, known for its corned beef sandwiches, had planned to lease space at the shopping center, 6969 N. Port Washington Road, in a former Nick-N-Willy's Pizza location. Those plans won city approval. But the operators of a Jimmy John's Gourmet Sandwiches at Glendale Market objected, citing a provision within their lease that grants exclusivity rights at the shopping center, said Richard Maslowski, Glendale city administrator. The owners of Jake's and the shopping center thought Jake's wouldn't directly compete with Jimmy John's, a sub sandwiches chain, said Cory Sovine, a Siegel-Gallagher Inc. commercial real estate broker who's representing Jake's. But the Jimmy John's operators threatened to sue, Sovine said. He said Michael Weiss, who operates General Capital Group LLP, owner of Glendale Market, decided to drop the effort. Weiss declined to comment, and I haven't yet heard back from Jimmy John's area manager. But Sovine said he didn't blame Weiss for bowing out.
Construction resumed this week at an apartment building, on Milwaukee's east side, after work stopped for nearly a month. Developer Wangard Partners Inc. halted work earlier at the 68-unit 1910 on Water project after the site excavation showed structural deficiencies in an existing stairway built by a previous developer on the site, said Wayne Wiertzema, executive vice president. Those problems have been resolved, and the apartments are still scheduled to open next summer, Wiertzema said. 1910 on Water is being built east of HighBridge condominiums, which was developed by New Land Enterprises in 2001. New Land dropped plans to expand HighBridge, which had construction problems, leading Wangard to buy the parcel for its project.
A ceremonial "wall smashing" to celebrate the start of the new Marriott hotel project, in downtown Milwaukee, is set for 1 p.m. Monday, at the development site. Local and state officials, and members of the development team, will take sledgehammers to an interior wall that's being demolished as part of the $54 million project, near the southwest corner of E. Wisconsin Ave. and M. Milwaukee St. It will take about two years to complete the 200-room hotel, which will be a combination of new construction and the renovated portions of some 19th century buildings at that site.
Sussex business park plan draws cautious response
MLG Development's proposal to create a Sussex business park on nearly 400 acres, financed partly with public funds, is drawing a cautious response from village trustees. The business park, proposed for the former Meissner farm located near Highway VV (Silver Spring Road) and Highway 164, behind the Kohl's-anchored shopping center, would need a tax incremental financing district to be viable, say MLG executives. When a community creates a tax incremental financing district, it usually borrows money to help pay for roads, sewers and other public improvements tied to a development. The property taxes generated by the new development then repay that debt, usually over the course of several years. Once that debt is paid off, that portion of the property taxes will flow to the community, its school district and other local governments.
New medical school planned for Wausau would be state's third
A new medical school in Wausau would open in 2013, admit up to 150 students a year and reduce Wisconsin's looming doctor shortage, according to organizers of the plan announced Wednesday. The Wisconsin College of Osteopathic Medicine, likely to be built next to Aspirus Wausau Hospital, would be the state's third medical school. It would be the first to train osteopathic doctors, who are like other doctors but focus on disease prevention and sometimes do hands-on manipulations. The school would help curb a shortage of 2,200 doctors predicted by 2030 in a report Tuesday by the Wisconsin Hospital Association, said Dr. Gregg Silberg, dean of the school being formed. He said two-thirds of osteopathic medical school graduates go into primary care, the main need identified in the report. "We will focus on the rural and underserved areas of the state," Silberg said. He is working with Aspirus — a Wausau-based nonprofit health system with six hospitals in northern Wisconsin and Michigan's Upper Peninsula — to raise money for the school. Aspirus is looking for partners to share start-up costs of $70 million to $75 million, said Sid Sczygelski, chief financial officer of Aspirus.
Fond du Lac firm to lead construction of downtown Marriott
Fond du Lac-based C.D. Smith Construction Inc. is the general contractor for the Marriott hotel project in downtown Milwaukee. C.D. Smith will receive support and assistance on the $54 million project from KBS Construction Inc., which has offices in Milwaukee and Madison. A “wall-smashing” ceremony was held this week to celebrate the start of construction for the hotel project. Construction is expected to take 18 to 20 months and the hotel is expected to open in mid-2013. The hotel will create 175 to 200 full-time jobs when it opens. “We’re extremely excited about this project,” said Paul Loehr, vice president of lodging development for Marriott International. “It’s going to be a fantastic location. We think it’s going to be a very successful project. We’re thrilled to be bringing it to the community.” The developer for the hotel project is Milwaukee-based Jackson Street Management, which includes Wave Development principals Ed Carow and Mark Flaherty. The project was financed by foreign investors through Milwaukee-based First Pathway Partners via the federal EB-5 program (under which foreign investors receive green cards for investing in projects that created jobs in the U.S.) and by $25 million in federal new market tax credits, allocated by the Wisconsin Housing and Economic Development Authority (WHEDA). Doug Nysse of Kahler Slater is the architect for the project. The hotel will be managed by Merrillville, Ind.-based White Lodging Services Corp. “We plan on delivering great guest service here in Milwaukee,” said Jon Peck, chief operating officer of White Lodging Services. White Lodging Services executives are promising to offer a level of service unique to the downtown Milwaukee hotel market.
Developer proposes 275-unit student apartment for Riverwest
A $35 million development that would bring 275 apartments to Milwaukee's Riverwest neighborhood is being proposed by a firm that specializes in building rental units for college students. Trinitas Ventures LLC, based in West Lafayette, Ind., wants to construct the four-story building on part of a parcel now occupied by a warehouse at 634 E. Keefe Ave. The warehouse would be demolished to make way for the apartments, which would house about 600 people, said Travis Vencel, Trinitas director of site acquisition and planning. The firm is still working on the project's design. Trinitas would market the apartments primarily to University of Wisconsin-Milwaukee students, Vencel said. The proposed site is about 2 miles from campus, and Trinitas would provide a shuttle service to UWM and other locations, he said. The development would include a fitness center, Internet cafe and swimming pool for its residents, Vencel said. He said the project would be privately financed. The site is zoned for industrial use, and the project would need approval from the Common Council and Mayor Tom Barrett. Trinitas will likely file a proposal with the Plan Commission in January, Vencel said. Projects like the one proposed by Trinitas have raised concerns from neighborhood residents about the effects on traffic and parking. Vencel said the development would include surface parking, but the firm expects a lot of residents to rely on the shuttle service instead of using cars. He said residents would be required to either lease a parking spot from Trinitas or have a leased parking space at another off-street lot.
Rockline Industries to expand, add 60 jobs
Sheboygan-based Rockline Industries plans to build a 6,000-square-foot addition to its facility at 4343 S. Taylor Dr. and will add 60 jobs. The project will include a $10 million investment in new technology, the company said. The company said it recently signed an agreement with a large multinational company that would result in expanded production at its Sheboygan plant. “This is a proud and special time in our company’s history, and it is due to the dedication, hard work and long-term commitment of our employees,” said Rockline president Randy Rudolph.
Sites spur interest in state gold mining revival
A drilling company is evaluating three possible gold mining sites in central and northern Wisconsin. It is too early to say whether Aquila Resources, which is incorporated in Canada with U.S. offices in Menominee, Mich., will begin the long regulatory process to mine gold, company president Thomas Quigley told the Milwaukee Journal Sentinel. But the company emphasized in third-quarter financial statements that "Aquila intends to be a mover in the state to acquire mineral properties and work toward permitting and commercial development." Wisconsin's strongest site is an area of Marathon County known as the "Reef," which has proven gold reserves. Aquila says recent drilling in the Reef east of Wausau supports findings from the 1970s that the spot holds 119,000 ounces of gold, worth about $200 million at today's prices. "If you were to go anywhere in the world, this is where you would go," Quigley said. "It's conveniently located. It's not in some remote corner of the world. There is good potential. And there's an infrastructure to get it out." With the heavy capital costs required to mine the gold, "that's not enough to warrant any great amount of work," said Thomas J. Evans, assistant director of the Wisconsin Geological and Natural History Survey. "But there could be additional resources, and that's what Aquila is" trying to find out.
Bukacek to lead construction of Ruud expansion project
Ruud Lighting, a subsidiary of Durham, N.C.-based Cree Inc., selected Racine-based Bukacek Construction LLC to be the general contractor for its $24.5 million, 208,000-square-foot expansion project at its headquarters and production facility in Sturtevant. The current facility, located at 9201 Washington Ave., has 500,000 square feet of space. Construction began recently. The project is expected to be complete in the fall of 2012. When the expansion is complete, Ruud will add 469 jobs at the plant. The company already has about 750 employees. This is the fifth time that Rudd has selected Bukacek Construction for a major project
Two Walmart sites sold in West Milwaukee, Greendale
Two sites for future Walmart stores, in West Milwaukee and Greendale, have been sold, according to records filed with the Milwaukee County Register of Deeds. In West Milwaukee, a parcel that has a largely vacant strip shopping center, at 4140 W. Greenfield Ave., was sold to Walmart by the Israel family trust for $3.6 million. The Greendale property, the former U.S. Bowling Congress headquarters, 5301 S. 76th St., was sold by that organization for $4 million. In both communities, those buildings will be demolished to make way for combined supermarket-discount stores.
Farming for jobs: Can local food movement prove a broader economic engine?
Marathon County entrepreneur Tony Schultz is bubbling over with thoughts on growing Wisconsin's economy. "Honestly, I've got about got 10 micro-food enterprise ideas in my mind right now," says Schultz, a third-generation farmer who, with partner Kat Becker, runs Stoney Acres Farm near Athens, about 30 miles northwest of Wausau. Schultz and Becker grow a variety of vegetables and fruits, along with raising pasture-fed beef and pork. They also run a successful community-supported agriculture business, or CSA, where customers pay in advance for boxes of fresh produce during the growing season. Their latest brainstorm involves making wood-fired pizzas featuring garden produce. They're remodeling an old barn into a commercial kitchen to test out different combinations, with plans to rent space to other farmers. "The way I see it, every little business we can create is something Dean Foods or Kraft or Monsanto doesn't have," says Schultz, 32, who fired up the crowd with a local food speech at a progressive political rally, Fighting Bob Fest North, in May. From Fifth Season Cooperative in Westby to Will Allen's Growing Power urban agriculture initiative in Milwaukee, there is unprecedented interest these days in local food.
Europe races to stop debt crisis
European leaders rushed Monday to stop a rampaging debt crisis that threatened to shatter their 12-year-old experiment in a common euro currency and devastate the world economy as a result. One proposal gaining prominence would have countries cede some control over their budgets to a central European authority. In a measure of how rapidly the peril has grown, that idea would have been unthinkable even three months ago. World stock markets, glimpsing hope that Europe might finally be shocked into stronger action, staged a big rally. The Dow Jones Industrial Average in New York rose almost 300 points. In France, stocks rose 5 percent, the most in a month. More relevant to the crisis, borrowing costs for European nations stabilized. Allowing a central European authority to have some control over the budgets of sovereign nations would create a fiscal union in Europe in addition to the monetary union of the 17countries that share the euro currency. Some analysts have said would be a leap toward creating a United States of Europe. More delicately, it would force the nations of Europe to swallow their national pride, cede some sovereignty and agree to strengthen ties with their neighbors rather than fleeing the euro union during the crisis. "The common currency has the problem that the monetary policy is joint, but the fiscal policy is not," Germany's finance minister, Wolfgang Schaeuble, said in a meeting with foreign reporters in Berlin. The monetary union has existed since the euro was created in 1999, but the European Union, which includes the 17 euro nations and 10 others that use their own currencies, has no central authority over taxing and spending .
Development News for the Week of 11/19/2011-11/23/2011
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Wisconsin home sales up in every region of state for fourth straight month, WRA reports
For the fourth straight month, sales of existing homes and condos rose over last year in every region of Wisconsin, while median sales price was down almost everywhere. Statewide, sales in October were up 13.5 percent, from 3,825 to 4,342, the Wisconsin Realtors Association reported Monday. Median price fell by 7.8 percent to $129,000. WRA officials again attributed the year-over-year sales rise to the federal tax credit for home buyers ending last July, which resulted in unusually weak sales for the rest of 2010. This year's post-July sales look strong compared to 2010's "depressed levels," noted WRA Board Chairman Rob Keefe, just as this year's sales from January through July were weak compared with that period last year, when the credit was boosting sales.
The Madison area's rental vacancy rate was at its lowest level since at least 2005 in the third quarter of this year, reflecting continuing "very strong demand" for rental housing. The information comes from Madison Gas & Electric's latest survey of apartment buildings that appear to be vacant due to utility shut-offs or service moved to an owner's name. The survey showed the third quarter's vacancy rate of 2.57 percent was down from the 3.7 percent posted for July through September 2010. It also was less than half the 6.43 percent vacancy rate recorded in the same period of 2005 - during the housing boom, not coincidentally. And 2.57 percent also was the single lowest rate recorded for any quarter since the start of 2005, according to MGE's full report on multifamily rental vacancies, which you can see here. The MGE report also breaks down current area vacancies by zip code and total rental units. Madison's 53715 district, with 2,697 total units, had the lowest rate at 0.92 percent, while the highest, at 5.07 percent, was in Madison/Monona's 53716 district, with 1,716 total units.
Some officials want continuing role for Madison Cultural Arts District after Overture hand-off
The entity that's run Overture Center since its opening may not be going away when the private, nonprofit Overture Center Foundation takes over operations of the arts facility on Jan. 1. But it's still unclear if or exactly how the quasi-public Madison Cultural Arts District, allowed under state law and created by the City Council in 2000, will continue. Mayor Paul Soglin said he supports keeping MCAD, partially because "we don't know what the future holds." MCAD was created to run Overture, built with philanthropist W. Jerome Frautschi's $205 million gift, and to ensure public access and accountability. It has a board appointed by the mayor, governor and Dane County executive. With Overture built and the nonprofit foundation assuming operations in January, the MCAD board is considering a resolution to temporarily suspend operations until a request for further activity is presented by the foundation, an MCAD board member, the city or county.
Commission recommends $16M Hy-Vee grocery
The prospect of a $16 million building and 400 jobs outweighed warnings about possible traffic congestion as the Fitchburg Plan Commission voted 4-2 to approve an 85,000 square foot Hy-Vee grocery store at the Orchard Pointe Shopping Center Tuesday. A staff report and two commissions had recommended rejecting the proposal. The Common Council will consider the proposal when it meets on Nov. 22. Mayor Shawn Pfaff praised the economic benefits of the proposal and said the city shouldn’t dictate “what business goes where.” Proponents said a full-service Hy-Vee grocery store filled a niche not available at Super Target and Aldi, which also sell groceries, and that it would not pose excessive competition for businesses in the shopping center, such as Steve’s Liquor.
Business incubator wants city to write off $1.1M loan
A nonprofit Madison business incubator that helps minorities and lower-income people start companies is asking the city to write off a $1.1 million federally-funded loan to help it avoid a foreclosure sale. Genesis Development Corp., which has helped launch more than 100 businesses creating more than 600 jobs since 2002, wants the city to forgive the federal Community Development Block Grant loan to reduce debt costs as part of a plan to return to sound financial footing. The nonprofit, which lost several major tenants and had financial challenges at the turn of the decade, faces foreclosure on its 70,000-square-foot incubator building at 313 W. Beltline on the South Side. The incubator currently has 34 businesses — 62 percent occupancy — employing 165 people, center director Richard Harris said. "We still feel Genesis Development Corporation was a good idea," Harris said. "We've been in business 10 years. We hope to stay longer. It's certainly much needed."
Proposed downtown plan could change Bassett neighborhood, extend bike path along Lake Mendota
Developers introduced a new Downtown Plan to Madison's Common Council earlier this week, which includes the installation of a bike path along Lake Mendota and redeveloping some downtown neighborhoods. According to Principal Planner Michael Waidelich, the plan seeks to enhance economic and real estate development downtown. One major redevelopment in the plan is to "preserve, rehabilitate and modernize" student housing units in the Bassett, West Washington and Mifflin Street Neighborhoods, which according to Waidelich, emphasizes "fairly heavy on conservation." Waidelich said the redevelopment will impact students who view the neighborhood as a relatively cheap residential area on campus where "you don't have to worry about taking care of [the house] too much."
Super-enriched soil from Royster-Clark site to be spread on farm fields
Decades after spilled fertilizer first started soaking into the soil on a Madison industrial site, plans are in place to dig up the contaminants and use them for their intended purpose — helping plants grow. The $3.8 million demolition of the sprawling, tattered Royster-Clark plant on Cottage Grove Road near Lake Monona is expected to begin next month. In a key part of the project, a Madison developer plans to dig up 60,000 tons of the super-enriched soil and spread it on 1,700 acres of farm fields in the countryside about seven miles to the east. "The goofy thing is that it's 'contaminated,' but the solution is to spread it on farm fields," said David Nelsen, engineering director for Ruedebusch Development and Construction.
As fewer buy homes, apartment construction surges
Builders have found a way to make money in a decrepit home market: Apartments. The number of permits to build apartments jumped to a three-year high last month. In 12 months, they've surged 63 percent. Blame the housing bust, which left many people without the means, the credit or the stomach to buy. More people need apartments. The demand has driven up monthly rents. And apartment-home builders are rushing to cash in. That said, the overall home market remains depressed. Builders are still struggling. They broke ground on a seasonally adjusted annual rate of 628,000 homes last month, the government said Thursday. That's barely half the pace that economists equate with a healthy market. High unemployment, stagnant pay and waves of foreclosures have slowed sales of single-family homes, which make up about 70 percent of the home building market. Apartment construction may be surging, but it's a small portion of the industry.
Madison lands 2013-2014 U.S. cycling championships
In what should be a major tourism draw, the Madison area will host the top bicycle racers in North America when the 2013 and 2014 National Championships take to the hilly roads of western Dane County. USA Cycling announced its schedule Monday and has picked Madison for the Elite, U23, Juniors & Paralympic national road races. The races will utilize road courses used in the 2010 and 2011 USA Cycling Collegiate Road National Championships. Among the routes is a course around Blue Mounds, which would have been used if Chicago's bid to host the Summer Olympics succeeded. "The Greater Madison area has a rich history of hosting premiere cycling events. We are thrilled to be able to share our extraordinarily scenic, yet incredibly challenging landscape with USA Cycling athletes," said Jamie Patrick, director of sports sales & program development for the Madison Area Sports Commission in a release.
Around the State and Points Elsewhere
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Area counties question new Wisconsin Economic Development Corp.
It's no longer a "department," but a "corporation." Its head, Paul Jadin, is not called a "secretary," but rather a "CEO." Out of the dissolution of the Wisconsin Department of Commerce arose the Wisconsin Economic Development Corp., which Frank Frassetto called a "public-private partnership" that helps the state work with counties, municipalities, schools, economic development associations and businesses to bring new jobs to Wisconsin. But some participants in Monday's monthly meeting of the Intercounty Coordinating Committee questioned Frassetto - one of the WEDC's six regional account managers - about the effectiveness of the WEDC, and of Gov. Scott Walker's campaign promise to create 250,000 new Wisconsin jobs by 2015. ICC is a consortium of representatives from six counties: Columbia, Dodge, Green Lake, Jefferson, Marquette and Sauk. Frassetto said the dissolution of the commerce department, and the transfer of its former regulatory functions to the Department of Safety and Professional Services, has made the new WEDC more responsive to the needs of new and expanding businesses. The WEDC's goal, he said, is to be "new, nimble, innovative, responsive and accountable."
A Common Council panel is recommending approval for a proposed apartment building in Milwaukee's Riverwest neighborhood, but some aldermen aren't happy about including a digital billboard on the roof. The billboard would overlook E. North Ave., where developer Todd Davies plans to build the five-story, 122-unit 1150 North apartments, just west of N. Commerce St. The Zoning, Neighborhoods and Development Committee on Tuesday unanimously recommended zoning approval for the project, and the sale of a city-owned 1.3-acre lot, for $666,000, for part of the project site. The vacant development site includes a billboard owned by Clear Channel Communications Inc., which has a lease until 2024. Clear Channel declined offers to buy out its lease, so Davies has reached an agreement to replace the traditional billboard with a digital billboard that displays changing messages. Ald. Bob Bauman, a committee member, asked if Department of City Development officials had considered using eminent domain to condemn the Clear Channel property. A forced purchase by the city, and subsequent resale to Davies would allow the apartments to be built without the billboard.
Shelly Mayer says she would never do anything to put her three children in harm's way on their family dairy farm, but she worries that proposed regulations could put an end to many jobs for farm kids. As Americans, Mayer says, we are too protective of our children when it comes to physical labor. "We have raised a generation of 'bubble-wrap' babies," she says. "Parents dote so much on kids, they practically need an oxygen mask to go outside. And we wonder why they can't function in society." Mayer and her husband, Dwight, have children ages 15, 13 and 8 on their farm near Slinger. They are among farmers nationwide who believe proposed U.S. Department of Labor regulations go too far in restricting what work kids could perform on farms, such as driving tractors and handling livestock. The changes, they say, could dampen kids' enthusiasm for becoming farmers, especially youngsters who don't live on farms but have part-time jobs to gain farming experience. Under the proposed rules, according to the Wisconsin Farm Bureau Federation, someone under 18 would not be allowed to do many chores for a neighbor or even their own family's farm if it's set up as a corporation or a business partnership.
A proposal to demolish Milwaukee's East Library branch and replace it with a new library and upper level apartments was approved Tuesday night by the Library Board. City Librarian Paula Kiely said she will now work with officials from the Department of City Development and city attorney's office to negotiate a developer's agreement with HSI Properties LLC. That agreement will need approval from the Common Council and Mayor Tom Barrett. The HSI plan was recommended earlier this month by the Library Board's Building and Development Committee. Waukesha-based HSI is proposing 92 one- and two-bedroom units built above a new library, with 113 underground parking spaces for the residents. Forty enclosed parking spaces would be set aside for library patrons on the street level. The $14.9 million development would be financed mainly through a $10.9 million commercial loan guaranteed by the U.S. Department of Housing and Urban Development, along with equity cash from the developers. Three other Milwaukee-area apartment buildings now under construction, including an HSI project in Wauwatosa, are being financed with HUD-guaranteed loans.
A court-appointed receiver has been named to operate the new Radisson Hotel in Menomonee Falls--a move made at the request of the village, which provided a $17.65 million loan to finance the hotel's development. The loan's first payment, due this month, has not been made. The receivership filing was supported by the hotel's owners, an investors group led by hotel operator Dean Grosskopf, and Minneapolis-based Radisson Hotels International Inc., which franchises the Radisson brand, according to a statement issued Tuesday by the Village Board. The filing still leaves Grosskopf's firm as manager of the Radisson, the statement said. Milwaukee attorney Seth Dizard is the receiver, and Grosskopf will answer to Dizard, said Village Manager Mark Fitzgerald. Fitzgerald said Dizard's appointment, by Waukesha County Circuit Judge Donald Hassin, likely pre-empts a pending request to appoint a different receiver for the 135-room hotel on Main St., just west of U.S. Highway 45. That request, in Dane County Circuit Court, was made by investors groups that have filed a civil fraud suit against Grosskopf's ownership group, Lodging Investors of Menomonee Falls LLC. That suit, filed by groups led by Madison investor George Raupp, claims Professional Hospitality LLC, a hotel management firm led by Grosskopf, wrongfully diverted $1.2 million from bank accounts for two Fairfield Inns, in Green Bay and Beloit.
Little Switzerland ski hill in Slinger, which closed after the 2006-'07 season, is to reopen under new ownership in November 2012. A group of investors, including the owner of two other Midwest skiing and snowboarding areas, has agreed to buy most of the property, with the purchase to close by the end of December, said Mike Schmitz, who's part of the group. Once they control the 47-acre ski area, the new owners will rebuild the snow-making machines, improve the lifts, and make other renovations, said Schmitz, vice president of Mequon-based Deshur Homes Co. The new owners also will renovate the lower part of the lodge, which they will lease from current Little Switzerland owner Wayne Erickson. That portion of the lodge will be used for the skiing and snowboarding operation, and will include the rental area, ticketing and a snack bar, Schmitz said. Erickson, who bought Little Switzerland earlier this year, has been remodeling the lodge's upper portion into a new restaurant and tavern, which he hopes to open by next spring.
Developer Charles Trainer's plan to buy and renovate the Iron Block Building, one of downtown Milwaukee's best-known historic buildings, has resurfaced. But the work will apparently proceed without a $100,000 grant from a city development fund. The Common Council's Community and Economic Development Committee on Monday placed on file a resolution that recommended the grant to help pay for building repairs. That move indefinitely postpones consideration of the resolution, and is tantamount to killing it. Ald. Joe Davis, the committee's chairman, said he's asked the Department of City Development to find another city fund to provide a grant for the project. Davis said the development fund is meant to help finance projects that generate long-term job growth. He said a city facade grant would be a more appropriate source for the Iron Block project. The Iron Block, built in 1861, is at the southeast corner of E. Wisconsin Ave. and N. Water St.
One the eve of our national day of Thanksgiving, be grateful we're not on this list, Wisconsin. A Baltimore Sun blog known as the Real Estate Wonk noted in an entry this week that at the going rate of turnover, it'll take 21 years(!) - two decades-plus - to get through Maryland's foreclosure backlog. And New York, D.C. (the only non-state listed) and New Jersey are even worse, with backlogs of 57 years, 57 years and 52 years, respectively, according to the list compiled by industry consultant LPS Applied Analytics. Illinois, with an estimated 10 years of foreclosure backlog, was the closest state to Wisconsin to make the list. From a past Property Trax entry, here's the latest foreclosure numbers for Dane County. New filings have been dropping here for months now, though there's still plenty to get through the pipeline. On a final note, Happy Thanksgiving to everyone, and just a heads-up that this blog will be going mostly quiet for the next week or so.
Development News for the Week of 11/12/2011-11/18/2011
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Plans to redevelop part of the 100 Block of State Street ran into skepticism at Monday’s joint meeting of the Landmark and Urban Design commissions. Representatives of Potter Lawson Inc. delivered an informational presentation that detailed the vision of philanthropist W. Jerome Frautschi and his wife, Pleasant Rowland, to redevelop the historic block, and they encountered significant scrutiny from the commissioners. Ald. Marsha Rummel opened the questioning by asking the presenters what problem they were trying to solve, before adding she favored working with the existing buildings. The plan involves razing six buildings, including two landmarks, along State, South Fairchild and West Mifflin streets to build space for retail, restaurants and office space. The redevelopment would generate a net $200,000 or so annually, which would go to Overture Center. Frautschi’s private Overture Foundation, under the name Central Focus LLC, paid $6.5 million for the six properties, more than the combined assessed values of $3.8 million. Eric D. Lawson, president and CEO of Potter Lawson, said the project presents an opportunity to revitalize the block, which would be surrounded by the Overture Center, a reconstructed Central Library and potentially a new Historical Society and Veterans Museum building.
The largest hurdle facing the redevelopment of State Street's 100 block was made explicit at a city meeting Monday: public disapproval of the demolition of six historic and landmarked buildings. In a joint meeting of the Urban Design and Landmarks Commissions, representatives of the Jerry and Pleasant Frautschi-sponsored project presented their proposal for the buildings bordered by State, N. Fairchild and W. Mifflin Streets. All of the buildings slated for demolition were constructed within the first quarter of the 20th century; several are designated historical landmarks. The 100-block project is designed to do "something special" by contributing to downtown's "cultural arts district," according to architect Eric Lawson, referencing the area in the vicinity of the Overture Center, the new Central Library and the proposed site for a new Veterans Museum and Historical Society building. The presenters believe the project maintains the "fabric and character" of State Street through the reuse of existing facades, but many worry that the proposal does not do enough to retain the historical significance of area. "Historic places are designated because they ... contribute a great deal to our sense of place and identity," said Jason Tisch, executive director of Madison Trust for Historic Preservation. Others were in favor of the project. In describing the condition of one property, Gus Paras, the former owner of 122 State Street, contended that a poorly kept building, landmarked or not, has "nothing to save."
In a setback even before filing formal plans, city planning staff don't support a proposal by philanthropists W. Jerome Frautschi and his wife, Pleasant Rowland, to demolish and redevelop part of the historic 100 block of State Street. Instead, staff want Frautschi and Rowland's Block 100 Foundation to reconsider the proposal and incorporate landmark and historic buildings in the project. George Austin, the project manager, said developers are confident the $10 million proposal is the right approach for the block, but will continue to listen to city officials, residents and other interested parties before deciding "if and when to submit a formal application." The foundation, scheduled to make an informational presentation to the Landmarks and Urban Design Commissions on Monday, will not offer formal plans until after the New Year, Austin said. "With any project of high visibility there are hurdles," he said. "This is just a part of moving forward." Austin couldn't say if Frautschi and Rowland would abandon a redevelopment if their original proposal is rejected. The developers want to raze six buildings — including two landmarks — on half the triangular block and reuse some original facade features and facsimiles to preserve the look of State Street. They would use a modern stone and glass design to dramatically transform the worn look of North Fairchild and West Mifflin streets.
City planning staff opposes key aspects of a $10 million proposal to redevelop the historic 100 block of State Street. On Thursday Steven Cover, director of the city's Department of Planning & Community & Economic Development, outlined staff concerns in a letter to George Austin, manager of the project, which is backed by philanthropists W. Jerome Frautschi and his wife, Pleasant Rowland. As proposed, the redevelopment would raze part of the block, while some of the original facades of the old buildings would be integrated into modern designs and new structures to completely transform North Fairchild and West Mifflin streets. The project would involve the partial or complete dismantling of six buildings -- including two city landmarks -- on half of the triangular block. In his letter to the developer, planning director Cover says that while the project has not yet been formally submitted to his department, "due to the significant amount of public dialogue that has already occurred, I wanted to provide you with our initial thoughts." He notes that two buildings at 125 State St., known as the Castle and Doyle buildings, and a third at 120 West Mifflin, the Schubert building, have been designated historic landmarks by the City of Madison. "Demolition of landmark buildings is something the city takes very seriously and should only be considered in rare instances for truly extraordinary projects," Cover writes, going on to suggest that that is a standard that city planners have apparently decided the State Street plans do not meet.
Hot off the press Madison's long-awaited Downtown Plan!
It's finally out! I'm talking about what in certain political and development circles is far more exciting than the latest Harry Potter movie — the city's long-awaited Downtown Plan, which has been in the works since 2008 and is the result of hundreds of meetings, exhaustive city staff work, and input from thousands of Madisonians. The 138-page document lays out various development paths our city can choose to follow — or not — sort of a vision for the next decade or two. It lists nearly 200 recommendations. The plan will be introduced to the City Council on Tuesday and then is likely to be referred by the council to various city boards, committees and commissions for approval. Then it will get tossed right back to the council this winter for final approval. (Of course, it could take longer than that given that this plan was supposed to be done a couple of years ago, but then various things like the Edgewater and other issues slowed things down.) Check out the city's spiffy website about the plan and the painstaking research and planning process behind it as well. You might find yourself more interested than you would expect. After talking with principal city planner Bill Fruhling, I realized that a document many of us might think dull reading could be as exciting as a Lonely Planet guide to our next vacation. Only this is a guide to Madison's future.
Fate of tiny Spaight Street house sets off interesting tussle
Nondescript hardly says it. Dingy might. The little house at 1112 Spaight St. is one most passersby wouldn't notice. Neighbors probably want to see it fixed up. But the hard-used rental house is 112 years old and stands in the Third Lake Ridge Historic District on Madison's near east side, so a proposal to tear it down and build a new house on the site has stirred a controversy of sorts. The controversy is playing out as the city braces for a battle over a major redevelopment plan -- already drawing heat from city planners -- that would raze a chunk of a historic area of downtown Madison next to the Overture Center. The important role of the city's Landmarks Commission in determining the fate of six buildings on State Street eyed for demolition for that project puts its actions with the house on Spaight Street under heightened scrutiny. There's more history then you might suppose attached to the modest house at 1112 Spaight St. Not only is the house in a historic district recognized by both the city and the National Register of Historic Places, it is across the street from Orton Park, a former cemetery that was the city's first public park, and right next door to the landmark Curtis-Kittleson House at 1102 Spaight. I have to admit that 1112 Spaight didn't look like much of a landmark to me when I stopped to look at it a few weeks ago and took a photograph of it -- especially in the shadow of the stunning Curtis-Kittleson House.
Soglin delivers letter to Edgewater developer demanding proof of financing
Mayor Paul Soglin and Edgewater developer Bob Dunn are playing a high stakes heads up poker game over funding for the Edgewater hotel project. Dunn put his latest chips into the pot a few days ago with an announcement that he had finally secured financing. Just a few hours ago, the mayor called the bet and had a letter hand delivered to the developer's posh downtown office demanding proof. In the letter, the mayor lists the daunting tasks still to be done for the developer to get the $16 million in tax incremental financing promised in this year's budget and says time "may not be sufficient" to get them done by the end of the year. That makes tonight's vote by the City Council over how much money to give the project next year all the more crucial. Soglin wants to slash it to $3.3 million and has complained the process giving Dunn more than that was seriously flawed. In the letter to Dunn the mayor repeats his promise to nevertheless execute the $16 million TIF loan agreement in 2011. There's a catch, though. Getting the subsidy before Dec. 31, Soglin tells Dunn, "is predicated upon meeting all of the necessary approvals and requirements" of the TIF resolution approved by the City Council last year.
Council votes down $16M in TIF for Edgewater, possibly killing project
In a stunning turn, the Madison City Council early Wednesday refused to reauthorize $16 million in public assistance next year for the $98 million redevelopment of the historic Edgewater hotel. The move may kill the project. The council, with lots of questions for staff but no debate, deadlocked 10-10 with Mayor Paul Soglin refusing to break the tie — denying the 11 votes needed — to provide the Hammes Co. $16 million in tax incremental financing (TIF) assistance for the controversial redevelopment in the 2012 capital budget. Soglin, who opposed the $16 million, will see his proposal for $3.3 million in TIF for the project be part of next year's budget. Hammes President Robert Dunn, who has fought for the project for over two years and secured land use approvals and $16 million in TIF in the current budget, has said failure to reauthorize the money would kill the project. He quickly left the council chambers after the vote and refused comment. Earlier, he told the council, "My hope is we can finally put this project on a course to go forward. The project does not happen without the $16 million in TIF. I appreciate how difficult this is for all of us. But this is an opportunity to create a landmark for the next generation of this city."
Edgewater lender got $15 million bailout
Whether you like the Edgewater redevelopment proposal or not, one thing is clear: Developer Bob Dunn isn't shy about using public dollars. Dunn and his Hammes Co. partners are looking for $16 million in tax incremental financing from the city of Madison to make the $98 million hotel project a go. A year ago, Dunn landed $14 million in WHEDA tax credits for redevelopment of his family-owned Red Crown Lodge on Trout Lake in Vilas County. Now, a financing plan for Edgewater unveiled by Dunn includes borrowing money from a central Wisconsin bank rescued by a $15 million taxpayer bailout. Dunn told the Wisconsin State Journal the financing package for Edgewater includes $16 million in TIF, $8 million from the sale of top-floor condos, $35 million in private equity and about $35 million in borrowing from National Exchange Bank and Trust of Fond du Lac and River Valley Bank of Wausau. River Valley was one of 24 banks in Wisconsin that received money under the federal government's Troubled Asset Relief Program or TARP. While some TARP recipients have paid all the money back with interest, River Valley still owes $12.5 million, according to this website which tracks bank bailouts. As of June 30, the bank still had a troubled asset ratio of nearly 30 percent compared to the national median of 15 percent, according to FDIC figures compiled by American University.
The Madison Community Foundation has delivered some good news to the campaign that hopes to raise $9 million toward the building of a new central library downtown. The foundation announced earlier this week that it is contributing $500,000 because, as President Kathleen Woit, put it, "libraries are part of the thread that holds communities together." The new library will be built using part of the existing central library at the corner of Fairchild and Mifflin Streets, just off Capitol Square. The old library was closed this week so that construction can get underway. Library users will have to use one of the several branches located around the city for a few weeks, until a smaller space in the under-construction building can be opened to temporarily offer library services. The Community Foundation's $500,000 is the second major contribution that the Madison Library Foundation has received in recent weeks. In September, philanthropist Jerry Frautschi pledged $500,000 for the project. "Raising $9 million for the central library is the most ambitious endeavor that the library foundation has ever undertaken," said Jenni Collins, executive director of the library foundation. "MCF's grant is a great endorsement from an enduring communty partner.
Elven Sted lays out welcome mat in Stoughton
It looks for all the world like a block of riverside row houses, maybe in a European capital. Sounds like one, too. But Elven Sted is a new workforce housing development in Stoughton that is allowing city natives to stay in town and providing disabled residents an affordable place to call home. The 33-unit, $7.2 million rental development is the largest housing project built so far by Madison-based Movin' Out, Inc., a nonprofit agency that helps people with disabilities find affordable housing. Elven Sted -- Norwegian for "river home place" -- sits, appropriately enough, along the Yahara River in central Stoughton, a city settled by Norwegian immigrants. The "row houses" are a mix of apartments and townhouses, all of which are accessible to tenants with physical disabilities. But as they are now leased, only about one-third of residents have disabilities. That's a good mix, says Howard Mandeville, executive director of Movin' Out. "We wanted to create an integrated experience. So, this was built as workforce housing and our marketing included people with disabilities," he told me when I visited Elven Sted early one recent morning and got the chance to speak with some residents. "This is the nicest place I've ever lived," said 48-year-old Barry Wendt as we chatted in the community room. Both Wendt and his roommate are clients of Community Living Connections, Inc., a nonprofit agency with offices in Madison and Stoughton that assists developmentally disabled adults.
Verona development foiled, again
Frustrated Verona officials plan to consult with their attorney about the Capital Area Regional Planning Commission’s latest refusal to open 265 acres for development around Badger Mill Creek and the Upper Sugar River. A minority of commission members on Thursday blocked the proposal in defiance of the state Department of Natural Resources, setting the stage for a third vote in as many months on Dec. 8. “Verona is unwilling to go through additional delays,” city administrator Bill Burns said Friday. “It appears that (commissioners) are unwilling to support the proposal regardless of what requirements or conditions are included and regardless of what scientific studies show.” For the second month in a row, the commission failed to muster the eight votes needed to recommend opening the land south of Highway 151 around Paoli Road for eventual construction of homes and medical facilities. Opponents say rain and snowmelt runoff from the development would threaten the trout streams by clouding and warming the water. “In terms of water resources in Dane County, we have some real gems,” said Caryl Terrell, one of five commission members who voted no. “I think it’s worth the extra effort to make sure we don’t have unintended consequences for the Sugar River and Badger Mill Creek.”
Council OKs operating budget after veto threat from Soglin
With Mayor Paul Soglin threatening a veto, the Madison City Council early Thursday approved a $250.8 million operating budget — including $500,000 more for the Overture Center — for 2012. The spending plan, approved amid drama and tension unseen on the council floor in years, will raise city taxes by $75.13 on the average $239,239 home. As the council prepared to take a vote near midnight, Soglin threatened to veto the budget if it included an earlier-passed amendment that nixed his proposed $125,000 for a study of performing arts venues. A combative Soglin, who had opposed the extra $500,000 for Overture but didn't voice objections earlier in the evening, said the arts center has failed to develop necessary support in the community and that the city needs to do the study. "What's the plan for the next four years?" he asked. Ald. Bridget Maniaci, 2nd District, told her colleagues, "You want to get bullied. You want to get lectured at. Fine."
Will Madison School Board go for non-union Madison Prep?
Backers of the Madison Preparatory Academy are now recommending establishing the proposed single-sex public charter school as what's known as a "non-instrumentality" of the district. Ultimately, that means the school's staff would be non-union, and the Urban League-backed charter school would have an unprecedented degree of autonomy in its operations, free from district oversight. With the recommendation, made at a meeting Wednesday, Madison Prep supporters, the school district and the local School Board wade into uncharted waters. Because of the change, school officials will need to revise their administrative analysis of the charter school proposal in advance of a School Board vote on whether to approve the Madison Prep plan. But despite a potential legal challenge over the non-union staffing, and risks associated with turning over public funding to a school that would operate with very little district administrative oversight, School Board President James Howard says he's inclined to give the Madison Prep proposal a green light. He will be looking to convince at least three other board members to take the plunge, as well. "I'm prepared to go out on a limb on this," he says. "This Madison Prep proposal is a pilot, an experiment, and we need to find a solution to the problems of the kids we are not reaching."
Madison Prep projected costs increase $10.4 million
A proposed Madison charter school would cost the School District $10.4 million more than planners previously estimated because they didn't account for hiring unionized employees, according to a district analysis. The increased cost and other legal issues could push back the School Board's scheduled Nov. 28 vote on the proposal, officials said. Superintendent Dan Nerad said he would support a proposal to establish Madison Preparatory Academy if it didn't increase net costs to the district by more than $5 million over five years, which would add about $11.40 a year in property taxes on an average home. The current proposal, however, would boost costs by $13 million. The district didn't calculate the property tax impact of the higher proposal because it is not recommending it.
First state pay plan under union law up for vote
A Republican-controlled legislative committee on Thursday approved the first Wisconsin state employee pay plan created under a new law that takes away nearly all collective bargaining rights for public workers, despite objections from those who will be covered by it. The plan, put forward by Gov. Scott Walker's administration, includes no pay raises for roughly 41,000 state workers and 25,000 University of Wisconsin employees over the next two years. It makes a number of changes related to how overtime is assigned and the way raises are awarded, but leaves virtually unchanged provisions related to vacation, sick leave and other benefits. Union members and leaders, as well as two Democratic lawmakers, spoke out against the plan, saying it undoes numerous provisions including required discussions between workers and management that they said led to the creation of a safe workplace. They also said the plan was created by Walker's administration with no input from rank-and-file workers. Marty Beil, director of the 23,000-member Wisconsin State Employees Union, called the plan unconscionable and said morale among state workers is at an all-time low.
Business boosting effort to cost $140K
The Madison area pretty much stinks compared to several peers when it comes to creating private sector jobs and generating new companies, according to a new study. The good news is that a local business-boosting group didn't have to spend its own money to document those shortcomings. A federal grant is covering $97,500 of the $140,000 cost of an eight-month process to grow the local economy. American Family Insurance and Madison Gas & Electricity are picking up the balance. The first piece was creation of the Advance Now Competitive Assessment, a detailed look at the Madison region's demographic, socioeconomic and economic trends. The 180-page report was released last week by Thrive, the regional development wing of the Greater Madison Chamber of Commerce. The study compared an eight-county region of southern Wisconsin to three similar-sized regions: Lincoln, Neb., Austin, Texas, and Des Moines, Iowa.
New head of WMEP says manufacturing is big part of recovery
Buckley Brinkman remembers his career focus on manufacturing getting set in the mid-1980s, when he was an MBA student at Harvard Business School, commiserating with his classmates over what the fading dominance of General Motors might mean for the American economy. "That's when people thought the Japanese were going to own about half of America," said Brinkman, who became the new leader of the Wisconsin Manufacturing Extension Partnership, a nonprofit consulting group, in June. "I remember my classmates telling me how I didn't have to worry about that, because we were going to be the knowledge and technology leaders of the world," he added. "But I've never been smart enough to figure out how to have an economy where somebody isn't making something." As executive director and CEO of the WMEP, Brinkman, 51, helps small and mid-sized manufacturers in the southern half of the state work faster and more efficiently through individualized programs adopting industry best practices. Created in 1995, WMEP gets state and federal tax money for about two-thirds of its budget, supplemented by client fees.
Brown Shoe to close Famous Footwear distribution center in Sun Prairie
Three years after pulling Famous Footwear's headquarters out of Madison, where the company started, parent Brown Shoe Co. says it will close Famous Footwear's huge distribution center in the Sun Prairie Business Park in early 2012, ending 144 jobs. Sun Prairie city officials say they had no warning. "As recently as two months ago, the city visited with the operations manager at the facility, and all indicators seemed to point towards a continuing presence here including a growing role for their Shoes.com operation," Neil Stechschulte, Sun Prairie's economic development director, said in a written statement. "The announcement appears to have been a surprise to employees as well as the city as a whole." Brown Shoe said late Tuesday it will phase out operations at 1615 Commerce Drive in Sun Prairie over the next six months. Forty-two positions will end in January; the other 102 will continue through April when the distribution center will permanently close, Brown Shoe said in a plant-closing notice to the state Department of Workforce Development. Fifteen of the Sun Prairie employees will be transferred to other Brown Shoe locations. The others will receive severance, and an outplacement agency will be available on site, the company said. The work will be moved to distribution centers in Lebanon, Tenn., and Tejon, Calif., Brown Shoe vice president Peggy Reilly Tharp said in an email.
Dane County home sales up 3 percent in October, while median price drops 4 percent
Existing home and condo sales in Dane County increased for the fourth month in a row compared with last year, though the gain was more modest this time. There were 277 sales in October, compared with 268 in October 2010, for a 3.3 percent increase, according to the South Central Wisconsin MLS. Sales were up by 34 percent, 18 percent and 23 percent in July, August and September, respectively. (You can see the full report here.) Median sales price for Dane County in October was $201,500, down 4 percent from $209,950 in October 2010. It was up by about 3 percent compared to October 2009, when median price was $195,000. Year-to-date through October, the sales volume gap between this year and last year - when a federal tax credit boosted sales for the first six months - continued to narrow. The gap in Dane County dropped from 25.6 percent at the end of June to 10 percent through October, when there were 3,987 sales compared with 4,422 through October 2010. Median sales price year-to-date through October was $206,000 - nearly identical to last year's $205,726 through October.
Around the State and Points Elsewhere
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Streetcar supporters outnumber opponents at hearing
Milwaukee Streetcar supporters outnumbered opponents 2-1 among speakers at a public hearing Wednesday night. More than 60 people came to the Frontier Airlines Center for the federally required hearing on the planned streetcar line's environmental impact. Of those who spoke, 12 backed the project, six opposed it and one was unclear in his position. Mayor Tom Barrett has advocated for the $64.6 million streetcar line, which initially would run from the lower east side to the downtown Amtrak/Greyhound station but eventually could be extended elsewhere. Comments on both sides followed familiar lines. Supporters said the streetcar project would improve transportation and stimulate economic development. Opponents focused on the cost - including the cost of moving utility lines - and said expanding bus service would make more sense.
School levies drop statewide, sparking debate
Property tax levies adopted by the state's school districts declined $47 million this year - or 1% - and the office of Gov. Scott Walker cited the figures as evidence that GOP efforts to control school spending were working. State education officials and the state's largest teachers union argued, though, that the levy cuts, along with a $749 ? million decrease in state aid to public schools, were harming many schools throughout the state. "Our reforms are protecting taxpayers while keeping our schools great," Walker said in a written statement. "Taxpayers are seeing their levies go down for the first time in six years, while our schools continue to meet the needs of Wisconsin students." A statement from state School Superintendent Tony Evers saw it differently: "These cuts impacted students across the state and hurt the quality of their education," he said. The new levy numbers were contained in a filing made available Tuesday on the website of the state Department of Public Instruction, which Evers leads. The filing listed property tax levies for all 424 of the state's public school districts. The property tax levy for a district is the total amount it expects to collect in taxes to help run the schools.
Cray deal helps Chippewa Falls
Supercomputer maker Cray Inc. expects to add manufacturing workers in Chippewa Falls after the University of Illinois awarded Cray a contract to take over construction of a stalled $300 million supercomputer project, three months after IBM pulled out of the university project. "There may likely be additions for us in manufacturing," said Cray spokesman Nick Davis. "It's too early to discuss the hiring impact. We just announced the contract." Cray has its headquarters in Seattle but carries out all its manufacturing in Chippewa Falls, the city where Seymour Cray founded the company in 1972. IBM had pulled out of the university project, called Blue Waters, citing cost and technical concerns. Cray expects to have the computer online next year, keeping the project, which is being primarily paid for by the National Science Foundation, on track to finish on time. "We clearly had to do it real quickly," said Thom Dunning, the director of the school's National Center for Supercomputing Applications. "NSF's goal was to keep the project on track as much as it possibly could be." The cost and financing will stay essentially the same, Cray CEO Peter Ungaro said. The NSF will provide just over $200 million with the remaining $100 million coming from the university and the state of Illinois. Cray will be paid $188 million, the equivalent of about half of its total revenue from its most recent fiscal year.
Last New Berlin dairy farm to give way to development
He milks 90 cows and cultivates about 250 acres on the south end of the city. The operation gradually will relocate to Rock County but he does not plan to move with it, Saltzmann said. He will sell the herd to two young men who work for him now. They are not relatives but Saltzmann intends to help them get started. The farm northeast of Moorland Road and College Ave. has been in the family since the early 1860s, he said. After 150 years, the community has changed so much around it that Saltzmann accepts the end of an agricultural lifestyle here. He intends to live in the old farm home after retirement and watch as new employers arrive on the landscape. He has no doubt they will come. Representatives of developers knock on his door from time to time to inquire about buying the land, Saltzmann said. "There are always feelers out," he said. "I'd prefer to see a conversion to businesses rather than residential lots. Businesses will bring jobs and more money into the community." The Westridge Business Park, north of the Saltzmann farm on Moorland Road, sold out of big lots a few years ago and the city needs more space to attract large employers, Community Development Director Greg Kessler said.
A building that has been repeatedly described as an "eyesore" on East Wisconsin Avenue may be replaced by an assisted living facility. The Plan Commission on Thursday heard preliminary plans for a 20-bed facility proposed at 559 E. Wisconsin Ave. The building, which is now partially used as a residence, had been a bait shop for many years. Lori Paprocki of Healthspan Inc. is proposing to build the facility that sits between two apartment buildings along the Pewaukee River. If the property would move forward, it would have to be rezoned from residential to institutional. Plan Commission Chairman and Village President Tom Calder said the site is challenging. Calder said there has been a call for no more multifamily developments in the village and added that "spot zoning is not popular in this community." "I don't call it multifamily," said Commissioner Tom Reilly. "It's an eyesore property." Reilly said the property could remain as is "or this could move forward. "I'm glad to see something like this come before us." "It's a tough piece of property to do something with," said Commissioner and Trustee Cathy Baumann, who noted she did not think the use could be considered multifamily. "It's a good fit. A single-family home would be tough to sell with apartments on each side. I think this would work there. It would be very quiet. I'm not worried about noise," she said.
Two nonprofit groups are proposing a 39-unit senior apartment development for a location near Milwaukee's Washington Park. United Methodist Children’s Services of Wisconsin and the Hmong American Friendship Association want to buy city-owned vacant lots at 3701 to 3717 W. Vliet St. to provide a site for the project, called Friendship Gardens. The groups would pay $30,000 for the lots, totaling 18,737 square feet, according to the Department of City Development. The Redevelopment Authority board, at its Thursday meeting, will review the groups' request for a purchase option. The project would include office space for the Hmong American Friendship Association, now at 3824 W. Vliet St., and a senior center for neighborhood residents. The apartments would be financed in part through federal affordable housing tax credits. Those credits are given to developers in an annual competitive process. Developers that receive the credits agree to provide apartments at below-market rents to people earning no more than 60% of the area's median income. The Wisconsin Housing and Economic Development Authority usually announces in April which developers receive credits from that year's allocation. United Methodist Children's Services also helped develop the 24-unit Washington Park Apartments, a transitional living facility, at 3940 W. Lisbon Ave.
A stretch of E. College Ave. that's been expanded to four lanes is scheduled to open Friday after a ribbon-cutting ceremony set for 11 a.m. The $5.8 million project widened College Ave. between S. Howell and S. Pennsylvania avenues, which runs along the border between Milwaukee and Oak Creek. It also created a new tunnel for the road to run beneath an expanded runway safety area at the southern end of Mitchell International Airport. The improved road, funded mainly by the federal government, will provide a new entry into the former 440th Air Force Reserve facility at the airport. Milwaukee County took ownership of the 102-acre parcel in 2010. County and City of Milwaukee officials plan to eventually redevelop the parcel, and its 80 buildings, into MKE Regional Business Park, which would target aviation-related businesses, The city's plan for the parcel also calls for providing up to 46 acres to be used as an additional runway for the airport.
A property just west of the new Radisson Hotel, in Menomonee Falls, might be redeveloped. The Village Board met Thursday night in closed session to discuss a possible development agreement for land at N88-W14822 Main St., according to the meeting agenda. State law allows such closed sessions to discuss real estate negotiations. The board did not meet in open session to act on the matter, said Village Manager Mark Fitzgerald. He declined Friday to comment on the possible development, which is being proposed by an investors group called La Concepts LLC, according to the agenda. The 1.65-acre property is in the village's Main St. tax incremental financing district. It now houses Metropol Apartments. The 135-room Radisson Hotel opened in May on Main St., just west of U.S. Highway 45. The Village Board in 2010 approved selling bonds to finance the conversion of the former Falls Inn into a Radisson. The $17.7 million loan, plus interest, is to be repaid to the village by 2026 by Lodging Investors of Menomonee Falls LLC, an investment group formed by Madison-based Professional Hospitality LLC
They were dubbed the Millionaire Monks, a small monastic community in rural Wisconsin feted around the world for its wildly successful Internet business selling laser printer inks and toners. As recently as 2009, the Cistercian Abbey of Our Lady of Spring Bank was projecting annual sales of $3.5 million for its for-profit business, LaserMonks Inc. And their prior and chief executive officer, Father Bernard McCoy, was talking expansion - of both the company and the abbey. Today, the monks' 15,000-square-foot home on 500 acres in Sparta is all but empty. They sold off their belongings - everything from furniture and farm equipment to religious artifacts - at an auction last month. And they have put much of their land and buildings up for sale. LaserMonks ceased operating in the spring, though the abbey has since sold its name and customer list to a California firm. And the monks have gone their separate ways. McCoy, who was touted as the LaserMonks' marketing genius, is now in Ireland, overseeing a community of nuns, according to a family member. Both she and the monks' lawyer said they did not know how to reach him. Attorney Kevin Roop of La ? Crosse, who represents the abbey, blames increased competition and the downturn in the economy for the liquidation of LaserMonks; and the dissolution of the abbey on the business failure and a dwindling interest in monastic life. But the monks have a history of failed or attempted business ventures. And now their seemingly sudden change of fortune has raised questions about their business acumen and some say less-than-Spartan lifestyle.
Few large employers plan to stop offering health benefits once key provisions in federal health care reform kick in. Health plans that pair high deductibles with savings accounts are becoming more common. And health benefits on average now cost more than $10,000 per employee. Those are some of findings from an annual survey released Wednesday by Mercer, a benefits consulting company. The cost of providing health benefits in the Milwaukee area increased to $10,441 per employee this year, up 6.7% from last year, according to the survey. That was slightly higher than the national average of $10,146 for each employee, a 6.1% increase from last year. Forty-five employers in the Milwaukee area participated in the national survey of 2,844 employers with 10 or more employees. The survey includes the employee's share of the premium but not out-of-pocket expenses, such as deductibles and co-pays. The estimates - while well below the double-digit increases early in the last decade - are well above the rate of inflation. They also make clear that health benefits have become a significant part of workers' total compensation. And that trend is expected to continue. Nationally, employers participating in the survey estimate costs will increase 5.7% next year. In the Milwaukee area, employers estimate costs will increase 6.6% next year if they make no changes in their benefits. But they expect to hold the increase to 3.1% by making changes, including raising deductibles and other out-of-pocket expenses or changing health insurers or health plan administrators.
Milwaukee Mayor Tom Barrett can see what's happening in the area around Bradley Center. With the NBA lockout still in effect, and both the players and the owners headed to court, Barrett knows the bars, restaurants and the hotels around the Bradley Center are taking a financial hit. There are 41 home games each season and tens of thousands of people coming downtown for each game. And right now, that economic activity is non-existent. "They are all being affected," Barrett said about the impact on downtown businesses. "It's unfortunate collateral damage that's very, very real. It's a fallout of what's happening because of the inability of the two sides to reach agreement." But Barrett is also a realist. Like many other mayors of cities that have NBA franchises, he can't necessarily use the bully pulpit to pressure NBA Commissioner David Stern and the players association to head back to the bargaining table. His concern is that, whatever deal is reached, there has to be contract language that gives small-market teams like the Milwaukee Bucks the tools to remain financially viable. "They have to have an agreement that allows them to remain viable. I'm supportive of the Bucks. I want to come up with an agreement that allows them stop losing money," Barrett said. Barrett said he had conversations with top Bucks officials about the lockout and its impact on the teams. But Barrett, a basketball fan himself, is just like any other fan right now: watching and waiting.
Development News for the Week of 11/5/2011-11/11/2011
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Epic Systems goes ahead with another epic expansion
Epic Systems Corp . is moving ahead with plans for another set of office buildings on its rural Verona campus. The third office cluster, nicknamed the Farm Campus, will add 900 offices and will be built at the south end of the campus. It will sit in fields between Epic Lane, the road that guides motorists to the company's headquarters from Highway 18/151, and Milky Way, the stretch that curls up a hill to the Epic galaxy. Two buildings would occupy part of a cornfield, nestled in front of a grove of hardwood trees. A third building, connected by an overhead walkway, would sit beside an orchard of apple, pear, plum and cherry trees that Epic has planted. The exteriors will look more like farm buildings than regular office buildings, and may have barn siding instead of brick, said Stephen Dickmann, Epic's chief administrative officer. "We might even have a silo, for all I know," he added. At least 700 stalls of underground parking will be built next to the two buildings at a site that is currently a soccer field. When the parking is in, the soccer field would be rebuilt above it, said Dickmann.
T Wall's new Bishops Bay subdivision in Middleton to feature 7 neighborhoods, some 6,000 residents
In the business section of Sunday's Wisconsin State Journal print addition, I have a story about Terrence Wall's ambitious plan to transform nearly 800 acres of prime Dane County farm land and natural space north of Middleton into what the developer promises will be a first-of-its-kind residential subdivision known as Bishops Bay. Envisioned to be the size of a small city, and poised for a March kickoff, the subdivision planned by T. Wall Properties would offer seven distinct neighborhoods over the next 10 to 20 years. The developer is promising loads of amenities for the subdivision's 6,000 hoped-for residents, with an emphasis on sustainability and plenty of preserved open space, all on a sprawling swath of land that offers some of the clearest views of the Madison skyline from some of the highest elevations in Dane County. Sources say making good on all those promises may be Wall's biggest challenge in the years ahead, apart from simply getting the 3,000 homes, condos, townhomes and apartments built and filled in the face of a local housing market that remains fairly soft, at least right now. One thing I didn't have space for in Sunday's Bishops Bay package was a full breakout of the subdivision's seven neighborhoods, with a few facts about what the developer says will make each one unique.
Soglin says he's 'open' to more funds for Overture, more aid for Edgewater
Mayor Paul Soglin on Tuesday said he's willing to negotiate on more funds for Overture Center and more city assistance for a developer seeking to remake the historic Edgewater hotel in the city's 2012 budget. "I'm open," Soglin said at as press conference Tuesday afternoon. Soglin, in his proposed operating and capital budgets, initially offered $1.35 million for Overture, a slight increase over 2011, and $3.3 million in tax incremental financing (TIF) support for the $98 million Edgewater project, far less than the $16 million in TIF for the redevelopment in the 2011 capital budget. The mayor said he'd discuss additional funds for Overture "between $5,000 and $500,000" and TIF support for the Edgewater between "$3.3 million and significantly less than $16 million." "There's always some flexibility," he said. The city, Soglin stressed, has met its obligation with the Hammes Co., which is seeking to remake the Edgewater. If Hammes can fulfill two last requirements — proof of financing and a construction contract — the mayor said he'd sign any final paperwork put before him by Dec. 31 to deliver the $16 million in the 2011 budget.
'Wheel tax' proposed by three county board members
Three Dane County Board members on Tuesday proposed a $20 annual registration fee on motor vehicles as a way to stop proposed cuts to human services and to beef up the county's reserve fund. The proposal faces an uphill battle because many board members don't want to add a taxes or fees when so many of their constituents are being hurt by the recession, but proposed cuts to social services for the county's most vulnerable residents are a worse alternative, said Sup. Kyle Richmond, 27th District, a leading proponent of the fee. "It's less than half the cost of a tank of gas," Richmond said. "We are the fastest-growing county in the state. If we're going to have acceptable quality of life here we have to find a way to fund basic services." Board committees have proposed adding more than $1 million to the $491 million budget proposed by County Executive Joe Parisi. The budget cuts nearly 50 positions and raises property taxes 4 percent. The full board is scheduled to begin deciding on the budget on Monday.
Do the ends justify the means in debate over the Edgewater?
If you're just tuning in to the Edgewater hotel soap opera as the City Council prepares to decide (again) whether to commit $16 million in public financing, here's what you need to know. At this point pretty much everyone agrees that a number of exceptions to city rules, policies and processes were made for the $90.5 million project to renovate the Lake Mendota hotel. (Though I did get into a discussion with Ald. Mark Clear, a key Edgewater backer, about whether the term "special treatment" was fair to use.) What still is at dispute is whether this unusual deal involving $16 million in public assistance for a luxury hotel will be worth it. Developer Bob Dunn, president of Hammes Company, a multibillion-dollar development firm, has been awarded very close to the amount he has been asking for in public assistance — after more hassle than he had hoped for, however — from that very first day in July 2008, when he started meeting with then-Mayor Dave Cieslewicz to broach what soon became their shared vision and campaign for a new "destination" hotel.
Developer sends alders polished new video in push to close Edgewater deal
Life would be swell with a boat, though a pair of skates would do too. And Madison would be better off with the Edgewater Hotel redevelopment project. That's the basic message of a sophisticated new five-minute video making the rounds today. The project's developer sent the video, called "Great City Great Moments" and made by local film maker John Roach, to the mayor and City Council members Monday and posted it on YouTube. It is full of rousing orchestral music, lovely lake scenery, and idyllic scenes of happy people doing fun things like sailing, docking their boats and kids at the pier, and skating in a rink near a Christmas tree. The video also features inspiring testimonies from Madison notables like former UW Athletic Director Pat Richter, UW Foundation president Mike Knetter, and Trek Bicycle President John Burke, who says that the Edgewater "is just waiting ... it's crying to be built." Also making appearances in the "Great Jobs" section are a couple of union workers impatient to be employed by the project and, in the "A Grand Investment" section, Mansion Hill resident Judy Karofsky, who says the hotel will reverse what she describes as her neighborhood's "deterioration."
It's not easy going green
The earth's population hit the 7 billion mark last week. Perhaps just as eye opening is the fact that the planet is adding more than 200,000 people to that total every 24 hours. That's nearly another Madison each day. "We need to start thinking proactively about energy use and other sustainability issues, or we'll be forced to face the consequences of having to be reactive," says Craig Benson, who this summer was named UW-Madison's first director for sustainability research and education. "Resources are no longer plentiful, so it behooves us to think much more strategically about our energy resources." I remember my fourth-grade teacher making similar statements after the 1979 oil crisis. Several book reports on wind and solar energy followed in the next couple of years. It wasn't difficult finding material on this issue because it was a mainstream topic of interest. And yet, here we are more than three decades later, and renewable energy still is struggling to gain serious traction.
Foreclosure filings drop by nearly a third in Dane County in October
Dane County foreclosure filings dropped in October for the tenth decline compared with the previous year in the past 11 months, and for the 13th month out of the last 16. There were 105 new cases in October, compared with 155 in October 2010, for a 32.3 percent drop, according to court records analyzed at DaneCountyMarket.com . Statewide, new filings also fell, from 2,519 in October 2010 to 1,875 last month, for a 25.6 percent year-over-year drop. Year-to-date through October in Dane County, the number of filings was down 23.9 percent to 1,122, compared with 1,475 during the same period in 2010. Statewide, filings fell 17.7 percent year-to-date through October, with 20,661 compared with 25,118 in the same period last year. But foreclosure filings remain historically high, after steadily increasing over the past several years. The 105 filings in Dane County last month were 184 percent higher than the 37 seen in October 2004.
Region falls short in key areas
The Madison area is at a "critical turning point" and its stable employment base and high quality of life cannot be taken for granted any more. That's the main conclusion of a 184-page report released to local officials Thursday as part of the Advance Now process for planning the region's economic growth. The report compares the eight-county Madison region with Austin, Texas; Des Moines, Iowa; and Lincoln, Neb. It concludes that this area comes up short in terms of population growth, ethnic diversity and the percentage of young adults who live here.
Advance Now to identify region's economic development possibilities
Thrive is the economic development partnership for the eight-county Madison Region with a vision to create a dynamic environment where people and businesses prosper. We create value with initiatives that focus on long-term, sustained results aimed at building the region's competitive advantage while preserving and enhancing quality of life. Thrive works in the spirit of collaboration to ensure resources are available to the people and organizations that do business here. We serve the Wisconsin counties of Columbia, Dane, Dodge, Green, Iowa, Jefferson, Rock, and Sauk.
Sardine owners eye new restaurant on Monroe Street
The owners of Sardine are planning a similar type of restaurant on the ground floor of the new Parman Place mixed-use development at the corner of Monroe Street and Glenway Street on the city's near west side. No name has been released but co-owner John Gadau told 77 Square Thursday they were looking to create the "same kind of vibe as Sardine" which offers bistro-style dining and a lively bar scene. "It will be a neighborhood place, warm and cozy," Gadau said. The new Monroe Street restaurant will take the entire 4,000 square feet of ground floor space of the development, which is under construction and won't be completed until 2012. "It's a great space and we feel totally lucky to have it," said Gadau. Gadau and co-owner Phillip Hurley both have roots in the Chicago and West Coast restaurant scene. They moved to Madison and in 2000 opened Marigold Kitchen, a breakfast and lunch spot a block from the Capitol. In 2006, they opened Sardine in the redeveloped Machinery Row at Blair and Williamson Streets. Parman Place is replacing the circa 1941 gas station long operated by the Parman family. The station has been torn down and will be replaced by 18 apartment units on the upper two floors and 19 underground parking spaces.
As the closing of the Central Library looms, many library users are prepared to deal with slight inconveniences, knowing that a larger, more vibrant building will soon take its place. Until then, however, Downtown patrons will have to go a few weeks without any library at all, followed by a year and a half in a temporary facility much smaller than what exists now. Patrons will only be able to browse the main collection online, and seating will be at a premium. "It will be a challenge in terms of people who like to sit and read," said Carol Froistad, community services manager for the Central Library, which closes its doors at 6 p.m. Friday. Library administrators have not announced a date for opening the temporary location. Froistad said library staff hope to have the move complete by Thanksgiving and the temporary library at 126 S. Hamilton St. open by the first week of December. The Hamilton Street location will have the same hours as the current Central Library: 9 a.m.-9 p.m. Monday-Thursday; 9 a.m.-6 p.m. Friday; and 9 a.m.-5 p.m. Saturday. At the temporary location, people will be able to pick up holds and browse a limited selection of the most popular periodicals, books on CD, new and popular fiction and nonfiction, the full collection of DVDs and CDs and a small children's section.
Levitan tired of waiting for details of Frautschi State Street purchases
Madison Landmarks Commission Chairman Stuart Levitan is demanding details about philanthropist W. Jerome Frautschi's Overture Foundation's quiet acquisition of properties to redevelop the historic 100 block of State Street. Frautschi, who donated $205 million to build Overture Center, and his wife, Pleasant Rowland, recently proposed a $10 million redevelopment on half of the triangular-shaped block across the street from Overture that will involve razing two city landmarks. Levitan has questions about why Overture Foundation used a third party to quietly buy six properties on the block at far above the assessed value and is frustrated Frautschi and Rowland's Block 100 Foundation has spent recent weeks build public support for the project rather than focusing on standards in the Landmarks Ordinance related to demolishing landmarks. "I'm tired of waiting for information," Levitan said. Project manager George Austin could not be reached. In a Nov. 7 letter to Austin, Levitan said the commission can't authorize a demolition if developers created a self-imposed hardship or failed to maintain landmarks and now claim it's not economical or structurally feasible to preserve or restore them. He also said the ordinance seeks to stabilize and improve property values and strengthen the economy.
Wisconsin shed about 3,400 education positions this year, triple the number from last year. At least one-third of the state's districts increased elementary class sizes. And at least four in 10 districts are using one-time federal stimulus funds to balance their budgets. But there have been no widespread reductions in course offerings, and the number of students per teacher, librarian and counselor remained about the same. Those are the findings of a statewide survey of school superintendents about their 2011-12 budgets. Two-thirds of those responding to the Wisconsin Association of School District Administrators survey anticipate next year's staff cuts will be as bad or worse than this year. The survey didn't ask about property taxes, but the Legislative Fiscal Bureau has projected an average increase of just 0.6 percent on the December tax bills, far less than the average 4.84 percent annual increase over the previous decade. The survey results, to be released by the Department of Public Instruction Thursday and provided to the State Journal, offer the most comprehensive picture yet of how Gov. Scott Walker's budget cuts are affecting public education. "The true picture is bleak," said Miles Turner, the association's executive director.
Around the State and Points Elsewhere
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European-style bakery likely to open
With restaurants Cranky Al's and Il Mito, upscale resale boutique U-Turn and Rosebud Cinema proving popular stops along North Avenue, the 68th and 69th street blocks have become the heart of East Tosa's commercial district. Wauwatosa resident Geoff Trenholme hopes to launch another successful business, Rocket Baby Bakery, across the street. He received unanimous support from the city's Plan Commission and Community Development Committee this week. If the Common Council follows suit next week, he hopes to have his European-style retail bakery and coffee shop open in February. Trenholme plans to fill his shop with artisan breads, breakfast pastries, cookies, scones and muffins, as well as heartier fare such as soups, sandwiches, salads and quiches. All food products would be made from scratch and baked in-house, which would lead him to hire the equivalent of seven full-time employees for the kitchen and service counter. He received a Community Development Block Grant from the Wauwatosa Economic Development Corp. to help get his business off the ground because he pledged to create jobs. A full coffee, tea and espresso drinks menu will come from Anodyne Coffee in Bay View. Before he can start baking, he has the challenge of converting the outdated office building at 6822 W. North Ave. into a welcoming shop and eatery. The building, which last housed a commercial real estate property management company, will see new utilities and exterior and interior renovations. When it opens, there will be seating for 14 patrons inside and eventually a few outdoor seats.
Board committee to consider East library redevelopment proposals.
The Milwaukee Public Library Board of Trustee’s Building and Development Committee will consider three proposals for the redevelopment of the East Library property on Wednesday, November 9, 2011 at 5:30 p.m. at the East Library. In July of this year, Milwaukee Mayor Tom Barrett challenged the development community to help the City reinvent Milwaukee Public Library’s East Library as part of the vibrant East Side community. The Milwaukee Public Library (MPL) and the Department of City Development issued a Request for Proposal for developers to acquire the current East Library site and redevelop it with a mixed-use building which would house a 21st century library on the ground floor and a secondary use above it to serve the community. Conceptual proposals were sought and three Wisconsin developers responded: Stone House, Gorman & Company, and HSI Properties. All proposals include housing to complement the library.
Viterbo, Community Theatre partner in downtown project
Construction will begin Wednesday on a new $9.6 million downtown theater called the La Crosse Performing Arts Center. In a press conference Wednesday, the La Crosse Community Theatre and Viterbo University announced they had formed a partnership and set a new fundraising goal for the Front Street theater. The community theater group had announced earlier this year a plan to raise $6.7 million to build a 23,000 square-foot theater center on Front Street. The Performing Arts Center will be 30,000 square feet, seat 450 and cost about $3 million more to accommodate extra space and state-of-the-art technology for Viterbo students. The partners have raised about 75 percent of the cost to build the center's shell. They expect to occupy the building by January 2013.
Wausau is competing not just with Eau Claire to land a valuable, high-tech manufacturing center planned for the state, but also with Milwaukee and at least a dozen other Wisconsin municipalities. Milwaukee 7, a regional economic development group tasked with attracting new businesses to the Milwaukee area, was in touch early this year with California-based W Solar, which plans to relocate to Wisconsin and create more than 600 jobs by 2015. The state announced last December that Chatsworth, Calif.-based W Solar was eligible for $28 million in tax credits if it brought its headquarters and manufacturing facilities to Wisconsin. In an email to the state, W Solar President and CEO Chris Hamrin wrote that Milwaukee 7 "seem to want to make a serious effort for the manufacturing facility for that region."
Milwaukee's East Library branch would be demolished, and replaced with a new library and upper level apartments under a plan recommended Wednesday night. Waukesha-based HSI Properties LLC is proposing 92 one- and two-bedroom units built above a new library, with 113 underground parking spaces. Forty enclosed parking spaces would be set aside for library patrons on the street level. The $14.9 million development would be financed mainly through a $10.9 million commercial loan guaranteed by the U.S. Department of Housing and Urban Development, along with equity cash from the developers. Three other Milwaukee-area apartment buildings now under construction, including an HSI project in Wauwatosa, are being financed with HUD-guaranteed loans. HSI would develop the four-story project, which would include 2,500 to 5,000 square feet of retail space, in a partnership with Wired Properties and Engberg Anderson Architects. The new 16,000-square-foot library portion of the building would replace the East Library, 1910 E. North Ave., with the new library building shell and parking for library patrons provided at no cost to the city. The city would fund the new library's interior furnishings. The current one-story, 13,800-square-foot library opened in 1968. HSI would provide temporary library space while the new library is being built. The HSI proposal was recommended by the Library Board's Building and Development Committee, said Paula Kiely, city librarian. The full Library Board will review the recommendation, and the proposal also will need approval from the Common Council and Mayor Tom Barrett.
An expansion of the operations of Paul Davis National in Milwaukee could create about 100 jobs here over the next six years, the Metropolitan Milwaukee Association of Commerce said Wednesday. Paul Davis National specializes in cleanup, restoration and reconstruction of properties hit by disasters such as the 2010 flooding at Nicolet High School in Glendale. The firm is partly owned by Daniel Druml, who also is the southeastern Wisconsin franchisee of Jacksonville, Fla.-based Paul Davis Restoration Inc. Druml and other Paul Davis Restoration franchisees started Paul Davis National about six years ago to work at large-loss sites, and this summer began to focus more intently on growth, co-owner Howland S. Russell said. Gov. Scott Walker, speaking at the commerce association's annual membership meeting at Miller Park, announced Wednesday that Paul Davis National would locate its headquarters in Milwaukee and create 100 jobs. He said the company chose Milwaukee over Houston, Indianapolis and Omaha, Neb. Walker didn't say that the job count is approximate and is expected to be built up over six years. Those details were released by the commerce association.
I reported Friday that plans to convert the former Northridge Mall into a hub for Chinese businesses to sell wholesale merchandise, and operate retail outlets, appear to be dead. That was based in part on an email conversation I had with Julie Lee, Milwaukee attorney for Beijing-based Toward Group, which owns the property. Lee, whose client announced the plan in December 2009, told me Toward Group has talked with real estate brokers about listing the Northridge property for sale. I received a second email Sunday night from Lee, who provided additional comments from Wu Li, Toward Group's president. Wu said his firm secured interest "from a number of organizations in having a presence" at Northridge, which is west of N. 76th St. and north of W. Brown Deer Road. "However, financing issues and delays in obtaining necessary approvals for those companies to do business here have forced (Toward Group) to consider alternative plans for the property," the email said. "Options include selling the property to an appropriate buyer as well as pursuing development opportunities with other collaborators." Toward Group "continues to view the property as an attractive site for development that can benefit the surrounding community and is working to pursue the best option for all stakeholders," Wu's statement said.
Survey finds school districts have taken hits; Walker touts reforms
A new survey of the majority of the state's school districts shows many of them were forced to make staff reductions and increase class sizes as a result of school aid cuts in Gov. Scott Walker's state budget, according to the state Department of Public Instruction and a school administrators association. But the governor's office, briefed Wednesday afternoon on the survey to be announced at a Thursday news conference, says the Walker administration's reforms are working and points out that the majority of teacher layoffs have been in districts that didn't adopt the reforms - notably in Milwaukee, Kenosha and Janesville. The survey, by the Wisconsin Association of School District Administrators, was conducted in the early fall of the current school year, after the state Legislature passed a two-year budget that trimmed $749 million in aid to public school districts, in addition to reductions in the limits of what districts can levy in property taxes. The survey was sent to administrators in all 424 state school districts, and 83% of the districts responded.
Holiday hiring close to 2010 levels so far
The holiday hiring season is off to a relatively strong start in 2011, with retail employment growing by a non-seasonally adjusted 141,500 jobs in October, according an analysis of federal job data by Chicago-based outplacement firm Challenger, Gray & Christmas Inc. The 141,500 retail job gains last month nearly matched the 144,100 retail jobs added in October 2010, it said in a news release. The first month of holiday hiring both this year and last represent big improvements over the recession years of 2007 through 2009, when retailers added an average of just 57,200 seasonal workers in October, according to the release. In 2008, the worst holiday-hiring season in 22 years, retailers added only 38,600 seasonal workers in October and only 324,000 workers during the entire holiday season of October through December. “November will give us the best indication of how 2011 stacks up when it comes to holiday hiring. That is usually when we see the highest number of jobs added,” CEO John Challenger said in the release.
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