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Development News for the week 9/26/09-10/2/09

Olympic pick of Chicago would be tourism boon to Madison, Wisconsin

We will learn Friday if the Isthmus, Old Sauk Road, Blue Mound State Park and Tyrol Basin become Olympic venues. Sounds surreal, doesn't it? But if officials in Copenhagen select Chicago over Rio de Janeiro, Tokyo and Madrid for the 2016 Summer Games, road cycling and the mountain biking events will be hosted in Dane County. That means thousands of spectators, Olympic officials and athletes will need places to sleep, eat and be entertained. They may grab a hamburger at the Hooterville Inn in Blue Mounds, take a day trip to Spring Green, New Glarus or Monroe or gravitate to the shops and restaurants of Monroe and State streets in Madison. It also could mean the creation of more businesses and improved passenger train service. "It's a once-in-a-lifetime opportunity for the entire state of Wisconsin," said Kelli Trumble, state tourism secretary. "We couldn't purchase this kind of worldwide exposure."Hosting tourists is nothing new to Wisconsin, whose lakes, rivers, forests and cities coaxed travelers to spend $13.1 billion here in 2008, according to the state Department of Tourism. But the Olympics would put the state on an international stage that could bring dividends not only during the 10-day August spectacle but also in the years leading up to the event and for decades after the closing ceremonies.

Developer's possible challenge to Feingold stirs buzz

U.S. Senator Russ Feingold is an all-but-announced candidate for re-election in 2010, and the three-term senator has an announced Republican opponent: Watertown small-businessman Dave Westlake. Westlake, a Christian conservative who highlights his enthusiasm for "pro-life issues and traditional marriage" and "faith-based organizations," has been campaigning hard around the state. But national Republican strategists and fund raisers, who have not targeted the Feingold race as a high priority, have been slow to rally to his candidacy. It is no secret that GOP insiders would like to see someone with more money and a higher profile enter the race. And they might get their wish. Madison developer Terrence Wall, an economic conservative who has resources and a penchant for political infighting honed on the tough turf of heavily Democratic Dane County, has made a number of moves that position him as a possible Republican contender.

Residents irritated at developer's plans for East Mifflin, Frank Lloyd Wright's Lamp House

Architect Matt Tills was taking the crowd on a virtual reality tour of blocks just east of Capitol Square. Zooming in and out on his computer, projected on the wall, he showed the neighborhood group some visions for the 200 block of East Mifflin Street, the area including the historic Lamp House, built by Frank Lloyd Wright. But as Tills zoomed in and out to get the right view of this computerized vision of Madison, he said, “I hope I’m not making anyone nauseous.” “I was nauseous from the beginning,” muttered Guy Martin, a Capitol Point resident. That was pretty much the mood of most of the people who were at the neighborhood meeting at the Gates of Heaven Synagogue at James Madison Park Monday night, to get a first glimpse at plans Apex Enterprises has for the area. Steve Yoder, president of Apex, told the group of about 50, “we’ve come here to show you some concepts. Nothing is set in stone. We’d like to get some feedback.”

Proposal could lead to more tickets for landlords

Ald. Bryon Eagon is "trying to put some teeth" in Madison's tenant protection laws by letting police write citations against landlords for more of the city's housing laws. The proposal would also increase maximum fines. Landlords oppose the proposal and are threatening to change the timing of the annual Aug. 15 college student move in order to avoid possible fines for not having units ready. City Council President Tim Bruer, a cosponsor, said he wants to facilitate a discussion between tenant advocates and landlords so the proposal can be refined with "cooperation, not confrontation."

Sustainable Madison meetings set

Can Madison meet its current needs without compromising the needs of future generations? The sustainability of Madison will be on the table at three community meetings in October and November, with residents and city leaders getting together to look at how sustainability works. "Learn about what the city is doing to make Madison's community, economy and environment sustainable," Jeanne Hoffman, facilities and sustainability manager for the city, said in a statement. "We will also talk about Madison's Green Capital City projects and how your ideas can help make us an even greener city tomorrow." The Sustainable Madison meetings are on Oct. 22 at 6 p.m. at the Goodman Community Center, Oct. 29 at 5:30 p.m. at the Wisconsin Studio in the Overture Center, and Nov. 5 at 5:30 p.m. at the Sequoya branch library.

Around the State and Points Elsewhere
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Brookfield Hyatt delayed a year to pursue financing

Oxford Real Estate Advisors, a Pittsburgh real estate investment management firm, has been granted a one-year extension for its plans to develop a Hyatt Summerfield Suites in Brookfield, a city official said Wednesday. Jason Williams, neighborhood planner for the City of Brookfield, said the approval process required building permits for the project be obtained by Oct. 8. The company was bumping up against that deadline and asked for the extension, he said. Such extensions are often sought and granted for various projects in the city, Williams said. In a letter to the city, the company says the credit crunch that has hammered U.S. financial markets in recent months is the reason for the extension. "Due to current capital market conditions both domestically and international, we have been delayed in assembling acceptable financing to start construction of the project," the company's letter says. "We continue to pursue any and all funding opportunities that will provide us the ability to complete the project in the best interest of the Oxford Development Co. and our investors and anticipate being able to do so as market conditions improve."

MATC, Johnson Controls to build state's largest solar power project

Milwaukee Area Technical College and Johnson Controls Inc. will build the state's largest solar power project, a $6.9 million "solar education farm" that will help train technicians in the renewable energy field. The project initially will be installed near the Milwaukee River, north of Capitol Drive. It will be portable, allowing the panels to be moved to a different location in the future, said representatives of MATC and Johnson Controls. The project was given the go-ahead Wednesday by the Wisconsin Technical College System Board during the board's meeting in Rhinelander. The solar farm will be built on MATC property that is home to the transmitter used by Milwaukee Public Television. The project is expected to save the station $70,000 a year in energy costs for powering the transmitter.

Manufacturer will leave Milwaukee for new facility in Richfield

Kaman Industrial Technologies Corp. will move from its current location on the northwest side of Milwaukee to a new 27,596-square-foot facility that will be built in Richfield. Kaman Industrial Technologies Corp., a division of Bloomfield, Conn.-based Kaman Corp., will move from its current location on the northwest side of Milwaukee at 8220 W. Sleske Ct. to a new 27,596-square-foot facility that will be built at 2340 Richfield Parkway in Richfield. The building will be constructed on a 3.3-acre site in the Endeavor Business Park, which is being developed by Helsan Development Company LLC. A groundbreaking ceremony for the project was held Tuesday. The developer for the project is Appleton-based Rollie Winter & Associates Ltd. The general contractor is Keller Inc. The new facility is expected to be complete on Jan. 31.

Saint Johns completes bond sale for tower, will break ground Oct. 15

Saint Johns on the Lake has successfully sold $83 million in tax free municipal bonds for its planned 21-story, 88-unit expansion project. Saint John’s on the Lake, a senior apartment complex at 1840 N. Prospect Ave. on Milwaukee’s east side, has successfully sold $83 million in tax free municipal bonds for its planned 21-story, 88-unit expansion project, spokesman Rick Romano told BizTimes Milwaukee. A groundbreaking ceremony for the project will be held on Oct. 15, Romano said, the same day that the financing package will close. “We think this is a pretty extraordinary accomplishment in a tough economic climate,” Romano said. “We’re very excited for ourselves, but also for the community. There are going to be 150 to 200 workers on this construction project.”

MU to build new College of Engineering facility

Marquette University announced that it plans to build a new, $100 million College of Engineering facility at the southwest corner of Wisconsin Avenue and North 16th Street in Milwaukee.   Marquette University announced that it plans to build a new, $100 million College of Engineering facility at the southwest corner of Wisconsin Avenue and North 16th Street in Milwaukee. Four university-owned apartment buildings on the site will be demolished. The first phase of the project will be a 5-story, 100,000-square-foot building. Groundbreaking for that project is expected in the spring, and construction is expected to be completed in August of 2011. The building will feature the Discovery Learning Laboratory, a 2-story engineering materials and structural testing laboratory and other teaching and research laboratories, common areas for students and office space.

Aurora Advanced Healthcare opens clinic in Whitefish Bay

Aurora Advanced Healthcare recently opened a new clinic at 325 E. Silver Spring Dr., Whitefish Bay. Aurora Advanced Healthcare recently opened a new clinic at 325 E. Silver Spring Dr., Whitefish Bay. Construction of the clinic started in March 2009 and completed in September. “We are excited to be a part of the new life coming to the village shopping district along Silver Spring Drive,” said Marc Olsen, a family physician at the clinic and a Bayside resident. “Mostly, we are excited to be offering more convenient healthcare to the North Shore and Whitefish Bay.”

 Large data center proposed for West Milwaukee

nGenX Corp. might build a new data center, with up to 20,000 square feet, in a redeveloping area of West Milwaukee. The first phase of the center would have 5,000 square feet, and it could have up to four phases, said Robert Bye, executive vice president of nGenX, an information technology services provider based in Overland Park, Kan. It would be built on an  Electric Ave. lot owned by developers BoulderVenture Inc. and General Capital Group, said Interim Village Administrator Kim Egan-Mueller. That site is next to the U.S. Drug Enforcement Administration offices, 4725 W. Electric Ave. The center's first phase would cost $5 million to develop, with each additional phase costing $4 million apiece, according to village records. The center would have 15 employees. nGenX would continue to operate the Norlight data center, in Brookfield, Bye said.

Brookfield Hyatt Summerfield Suites plans delayed

Plans to develop a 129-room Hyatt Summerfield Suites extended stay hotel, at 555 S. Executive Drive in Brookfield, have been delayed, my colleague Joe Taschler reports. The developer blames the credit crunch.  Jason Williams, neighborhood planner for the City of Brookfield, said the approval process required building permits for the project be obtained by Oct. 8. The company was bumping up against that deadline and asked for the extension, he said. Such extensions are often sought and granted for various projects in the city, Williams said. In a letter to the city, the company says the credit crunch that has hammered U.S. financial markets in recent months is the reason for the extension.

von Briesen & Roper looking for new, larger headquarters

The von Briesen & Roper law firm has hired Terence McMahon, of Boerke Co., to help it look for a new, larger  Milwaukee headquarters. The firm now leases around 53,600 square feet at on two and one-quarter floors at the 411 Building, 411 E. Wisconsin Ave. That lease expires in 2013, and von Briesen & Roper is seeking up to 75,000 square feet, with additional available space for growth, says Randall Crocker, president and chief executive officer. The firm, in conjunction with Boerke Co., is seeking proposals for both existing Class A buildings and proposed new office towers in Milwaukee. The firm could be an anchor tenant for a new office tower. von Briesen & Roper has been in the 411 Building since 1985. The firm would consider staying there, but would prefer to move, Crocker said. In part, that's because the 411 Building's largest tenant, law firm Quarles & Brady, has a large building sign noting its presence there, he said. The firm, which has 165 employees at its downtown offices, is committed to Milwaukee as its corporate headquarters, Crocker said. von Briesen & Roper also operates offices in Madison, Racine and Mequon.

Redevelopment of ex-Color Press building moves forward

The redevelopment of a long-vacant industrial building on Milwaukee's northwest side is moving forward, with the help of a loan from a local non-profit group. Nature Tech LLC, a start-up business that will make building insulation from recycled  materials, hopes to begin operating by spring 2010, said owner William Sellars. Nature Tech will use the 174,000-square-foot former Wisconsin Color Press Inc. building, 5300-5400 W. Good Hope Road, which Sellars bought in 2007 for $1.3 million, according to assessment records. Wisconsin Color Press closed in 2002. Sellars, with the help of a $381,700 state environmental clean-up grant, has already done a lot of work on the building. He plans to complete the renovations over the next several months. The Northwest Side Community Development Corp. is providing a $640,000 loan to Nature Tech, the non-profit group announced..

Moderne gets preliminary fed OK on loan guarantee

The Moderne apartment high-rise proposed for downtown Milwaukee has received preliminary approval for a loan guarantee from the U.S. Department of Housing and Urban Development. Under that program, developers can obtain loans with 40-year repayment terms. In return, the developers pay interest rates that are higher than rates for conventional loans The preliminary approval for the loan guarantee means the Moderne has leaped over a big hurdle in assembling financing for the $55.2 million project, Barrett told me this afternoon. With the guarantee, Barrett will be able to obtain a $41.4 million loan through Horsham, Pa.-based Capmark Financial Group Inc. and the Washington, D.C.-based AFL-CIO Housing Investment Trust. 

Value of August building contracts plunges

The total value of August construction contracts for future building projects in the Milwaukee area dropped by 57% compared to contracts from August 2008, according to data released Tuesday by McGraw-Hill Construction. The total value of building contracts for Milwaukee, Waukesha, Ozaukee and Washington counties was $44.4 million, compared to $102.2 million, according to McGraw-Hill. Non-residential contracts totaled $15.1 million, compared to $52.1 million, while residential contracts totaled $29.3 million, compared to $50.2 milion.

Maysteel leases Mount Pleasant facility

Menomonee Falls-based metal enclosure maker Maysteel LLC will expand into a Racine County facility, adding 30 employees. Maysteel said today it has signed a lease with Chicago-based HSA Commercial Real Estate for a Mount Pleasant facility with just under 41,000 square feet. The 125,000-square-foot building is at 1400 International Drive, and is part of the 83-acre Park 94 business development, which includes a 323,610- square-foot LEED-certified warehouse/manufacturing building, Maysteel plans to move into the building by the end of November. The lease was brokered by Dickman Co. and Colliers Barry. The company in September said it would open a plant in Racine County. But it also announced it was closing one of its Menomonee Falls factories, cutting 165 jobs, by the end of the year.

Home sale contracts surge

Homebuyers signed more sales contracts in August than in any month this year, boosted by the looming expiration of a homebuyers' tax credit, according to an industry report released Thursday. The August Pending Home Sales Index from the National Association of Realtors (NAR) surged 6.4%, the seventh straight month-over-month improvement in the indicator. The increase far exceeded economists' expectations -- a panel of analysts surveyed by Briefing.com had forecast a 1% rise. Pending home sales rose 3.2% in July.

Development News for the week 9/19/09-9/25/09
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Edgewater Hotel subsidy not worth it

So many things have gone wrong in downtown Madison it's understandable Mayor Dave Cieslewicz wants to make a big, bold statement by supporting the $109 million Edgewater Hotel renovation and expansion, including a public plaza overlooking Lake Mendota.  The central city has taken its share of lumps over the past decade. The mishandling of the design and operation of the Overture Center has had heartbreaking consequences. Unsold units in high-end condo projects now serve as a stark reminder that the much-celebrated "return to downtown living" was overblown. And one large-scale mixed-use proposal after another has collapsed — most notably Gary Gorman's Avenue 800 and the McGrath family's Union Corners. Certainly, the recession hasn't helped. It's added an air of urgency, if not quite desperation, to get something built downtown. That may explain why nearly every business leader has fallen in behind the Edgewater expansion. There's just one problem. A $16 million city subsidy — in the form of tax-increment financing — may turn out to be just one more mistake in a long decade of mistakes downtown. Sure, the Edgewater remodeling should be welcomed and perhaps supported by a small subsidy. By any measure, the hotel is ripe for remaking into a hip, urban outpost like the Hotel Metro in Milwaukee or the Burnham in Chicago. But $16 million? Who's kidding who? The Edgewater project simply doesn't justify that kind of public investment. The downtown and the city as a whole need a much smarter approach to building the economy. That vision still seems lacking.  What can one make of the city council's recent rejection of a tiny $300,000 TIF for Danisco USA, the Danish owner of the old Marschall dairy lab? The multinational corporation was considering a phased $50 million expansion here, but now may turn to its American branches in Waukesha and Rochester, N.Y. At stake were an estimated 179 new jobs — not just professional positions, but blue-collar jobs that pay a family-supporting hourly wage of $16 to $23.

Assembly backs board appointment for DNR secretary

In a move that would sharply weaken the powers of the governor to manage natural resources, the Assembly voted to return authority to appoint the secretary of the Department of Natural Resources to a seven-member citizens board. In a move that would sharply weaken the powers of the governor to manage natural resources, the Assembly voted Tuesday to return authority to appoint the secretary of the Department of Natural Resources to a seven-member citizens board. The Assembly voted 61-32 in favor of a bill that's been pushed by conservationists and environmentalists since 1995. The vote could put the Legislature on a collision course with Gov. Jim Doyle, who opposes an independent DNR secretary. If the Senate also passes the measure, Doyle could veto the bill. The last time a governor had a veto overturned in Wisconsin was 1985, when Democratic Gov. Anthony Earl - a former DNR secretary himself - was in office. It's unclear whether there are enough votes in the Assembly to override a potential veto from Doyle. The 61 votes fell short of the 66 necessary for an override, but four supporters weren't present. Bill author Rep. Spencer Black (D-Madison) said he thought there is a "very good chance" the Assembly could get the necessary votes.

Minnesota drops tax reciprocity deal  

About 57,000 Wisconsin residents who work in Minnesota will have to file income tax returns in both states starting in 2011. The two states have had a reciprocity agreement since 1967 that allows taxpayers who live in one state and work in the other to file a return only in the state where they live. But Minnesota Gov. Tim Pawlenty announced Friday his state would withdraw from the program at the end of the year. Wisconsin officials said the change will not increase taxes for state residents. The agreement was put in place to make filing taxes easier for residents of the two states. Wisconsin sends Minnesota money at the end of each tax year because more people live here who work in Minnesota than live in that state and work in Wisconsin. Minnesota officials complain that Wisconsin pays Minnesota about 17 months after taxes are collected, under the agreement. Wisconsin officials noted that they pay interest on anything they owe. Still, million for that state over two Minnesota says the change will generate $131 years because it will receive payments more quickly and directly from taxpayers.

Homebuilder teams up with We Energies to build solar homes as part of energy conservation study

Tim O’Brien Homes has partnered with We Energies to build 12 solar electric homes across southeastern Wisconsin by spring 2010. This endeavor is part of a multi-year study that We Energies is conducting to evaluate homeowners’ lifestyle habits in response to utilizing solar energy. Along with analyzing trends in energy usage and demonstrating the impact of using solar energy, the study also will provide insight on how solar may influence market value and overall electric demand. This is the first time that a solar electricity study of this magnitude has ever been done in the Midwest.The study is being conducted by the We Energies Renewable Energy Development Program and will examine the solar energy production of the twelve homes along with homeowners’ consumption. Four of the twelve solar homes are currently under construction or nearing completion, with solar panels being installed by Renewable Energy Solutions. The homes are being built in neighborhoods such as Jackson’s Sherman Parc, Milwaukee’s Oak Hill, Waukesha’s Rolling Ridge South and Kenosha’s Leona’s Rolling Meadows .

Habitat for Humanity agrees to build homes on Royster-Clark site

Habitat for Humanity of Madison has reached agreement with Canadian-based Agrium U.S., to buy the 26.7-acre Royster-Clark property on Madison's East Side, one of the biggest remaining developable areas in the city and a long-standing neighborhood eyesore. Habitat intends to partner with other nonprofit groups and developers to build about 70 single-family homes, 40 to 50 multifamily units, and commercial space along the Cottage Grove and Dempsey Road corridor, as well as a 2- to 4-acre headquarters on the property of the defunct fertilizer plant, Habitat Chief Executive Officer Perry Ecton confirmed Wednesday. "We've made an offer, and it's been accepted," Ecton said. He wouldn't divulge the price. "That offer is subject to a bunch of conditions, including Habitat's board of directors' approval of the overall project."

Road rage: 4-lane highway plans have Springfield farmers up in arms

TOWN OF SPRINGFIELD - For Dan Roth, it was the last straw. Five years ago the U.S. 12 project took a chunk of his town of Springfield farmland. Then the state told him the highway is being converted into a freeway, which likely will close off easy access to his fields on the other side of the road. Now Dane County is proposing to divide his farm again with the North Mendota Parkway, an up-to- 300-foot-wide, four-lane roadway north of Lake Mendota proposed to connect the north end of Madison with U.S. 12. Roth, who wants to maintain his dairy and cash crop operation so he can pass it along to his son, Chris, has turned down several good offers from developers. But now he's changing his tune."Me and my son just figure, if it goes through as planned, let the developers have it," he says, his voice a mixture of anger and resignation. The Roths are among several farmers whose future has been soured by the North Mendota Parkway. It's been kicked around for nearly two decades, and many farmers have hoped that the subject would just die off. But to the dismay of residents and officials in the town of Springfield north of Middleton, which will bear the brunt of the road's impact, it keeps coming back.

Mueller Sports Medicine

Mueller Sports Medicine in Prairie du Sac has broken ground on a $6.5 million, 150,000-square-foot expansion project. The manufacturing and warehousing space will be used to help the company handle increased production, warehousing and staff needed to keep up with demand, driven in part by increased international sales over the past year, according to Curt Mueller, founder and chief executive of the company. The new facility, being built next to several existing warehouses on the Mueller campus and on a former golf driving range, is scheduled for completion in June. The structural steel building will have 12 shipping and receiving docks and will increase Mueller's storage capacity by 30 percent. The expansion will also allow for space to be freed up in other buildings to accommodate the nearly 30 new employees Mueller has hired in the past 18 months. Mueller has 140 employees and 240,000 square feet of office, manufacturing and warehousing facilities at 1 Quench Drive on the village's west side. "This expansion allows us to essentially combine four warehouses into one, which makes us even more efficient and competitive," Mueller said. The building was designed by Architecture/CSH Inc. and is being built by Ideal Builders, both of Madison. Mueller Sports Medicine, founded in 1961, makes a variety of athletic braces, tapes and supports, as well as Quench gum.

Roundys Supermarkets Inc. is working on plans to open a Pick n Save grocery store in the former Sears Grand store at N77 W14435 Appleton Ave., Menomonee Falls read more

The city of Milwaukee Redevelopment Authority last week voted to approve $10 million in city loans for The Moderne read more

Lowes Companies Inc. on Monday closed its store at Midtown Center, at 5800 W. Hope Ave., Milwaukee. read more

Auto Zone, Rocky Rococo, Anytime Fitness, Great Clips and a stand-alone Buffalo Wild Wings restaurant could replace the vacant former dealership. read more

The City of Milwaukees Common Council approved the creation of the Housing Infrastructure Preservation Fund, to pay for restoring and preserving vacant residential properties. read more

Fed slows $1.45 trillion program to aid housing market

New jobless claims drop unexpectedly to 530K

Mueller Sports Medicine

August existing home sales slide unexpectedly

What the housing 'rebound' means for you

Around the State and Points Elsewhere
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Could E. Greenfield Ave. morph from wasteland to water campus?

I've been spending some time on the stretch of E. Greenfield Ave, where University of Wisconsin-Milwaukee's Great Lakes WATER Institute is located, overlooking the harbor. The institute's 8-acre grounds looms as a possible location for UWM's School of Freshwater Sciences now that the Pieces of Eight site is no longer an option. The institute is where dozens of UWM scientists, faculty and students conduct ecological research, and it might make sense to have the school in close proximity. But the area is pretty rough, to put it charitably. There are huge coal piles, dilapidated industrial buildings, and a railroad crossing that could knock your teeth loose if you drive over it too quickly. The private sector backers of the freshwater school want a building, and a location, that will impress the executives from water technology companies they hope to recruit to Milwaukee. I will be examining the pros and cons of this area as a potential school location in an upcoming Journal Sentinel article. I'll be interested in hearing your comments once you've read the story, which should be appearing soon. 

A new marketing campaign for the Milwaukee area

A new marketing campaign, featuring a color brochure touting the  Milwaukee area's entertainment, arts, business and education assets, is being rolled out. The campaign was created through a partnership among Visit Milwaukee, which seeks to attract visitors to the area; the Milwaukee 7 economic development group, and the Spirit of Milwaukee civic marketing group. The brochure is designed to help attract businesses to the Milwaukee 7 region, which encompasses Milwaukee, Waukesha, Washington, Ozaukee, Walworth,  Racine and Kenosha counties. It includes comments from such leaders as Bill Otto, president of Marcus Hotels & Resorts; Kevin Mansell, president and CEO of Kohl's Corp., and Carlos Santiago, University of Wisconsin-Milwaukee chancellor. I'll have more details later today at JSOnline.com, and in Friday's Milwaukee Journal Sentinel. 

Pick n Save planned for former Sears Grand space in Falls

Milwaukee-based Roundy’s Supermarkets Inc. is working on plans to open a Pick ‘n Save grocery store at the site of a former Sears Grand store at N77 W14435 Appleton Ave., Menomonee Falls, according to a village official.The Sears Grand store closed early this year when the company closed several low performing stores. The Sears Grand store opened in 2006 in the building, which previously was occupied by a Kmart store. Roundy’s spokeswoman Vivian King said she was unaware of plans for a new store in the former Sears Grand space. Roundy’s currently has a Pick ‘n Save store next door in a smaller space at N78 W14501 Appleton Ave. Presumably that store would be relocated to the larger Sears Grand space, if those plans come to fruition.

Redevelopment Authority approves loans for The Moderne

The city of Milwaukee Redevelopment Authority last week voted to approve $10 million in city loans for The Moderne, a long-delayed 30-story residential building proposed for a vacant lot at the southwest corner of West Juneau Avenue and Old World Third Street in the downtown Milwaukee Park East corridor. The $60 million project has been delayed for nearly 2 years while the developer for the project, The Moderne LLC, has struggled to obtain financing. The building would have 203 apartments, 14 condominiums, 204 structured parking spaces and 7,500 square feet of retail space. Under the current financing proposal for the project, the primary lender would be Capmark Financial Group Inc., which would provide financing under the U.S. Department of Housing and Urban Development's 221(d)4 loan program, which insures mortgage loans to facilitate the new construction or substantial rehabilitation of multifamily rental or cooperative housing. The plan includes two proposed loans from the city of Milwaukee, a $6 million loan with 6.4 percent interest and a 4-year term and a $4 million loan with 15 percent interest and a 4-year term.

Lowes closes Milwaukee store

Charlotte, N.C.-based Lowe’s Companies Inc. on Monday closed its store at Midtown Center, at 5800 W. Hope Ave., Milwaukee. The store closure resulted in the elimination of 77 jobs. A letter from Lowe’s to the state Department of Workforce Development indicated that the store was closing “due to market conditions.” “Lowe’s representatives have expressed regret over closing the store at Midtown Center and I am thankful for the efforts of the company as it tried to sustain a business that generates a large portion of its profit from home, landscaping and remodeling work amid troubling times in these areas,” said Ald. Joe Davis Sr. “I am confident that space at Midtown Center will be filled with a thriving business promptly and am constantly pleased with how the area around the center continues to develop and sustain a vibrant shopping district. I am confident this progress will continue and though I am saddened Lowe’s can no longer be our partner in this center, I must thank each proprietor in Midtown Center for their commitment to our residents and I welcome the next business to join the shopping district.” Lowe’s now has 3 stores in the Milwaukee area, located in Wauwatosa, Franklin and Brown Deer.

Foster Pontiac redevelopment plans include Buffalo Wild Wings

The city of Milwaukee Redevelopment Authority last week approved a plan to provide $500,000 in tax incremental financing (TIF) funds for the redevelopment of the former Foster Pontiac property at 3636 S. 27th St. The property has been vacant since 2006. Under the development plan, the dealership building would be remodeled into a 19,550-square-foot multi-tenant retail building and an 8,000-square-foot stand-alone restaurant building would also be built on the property. The developer for the project is Foster Endeavor LLC, according to city documents. The redevelopment is 78 percent pre-leased. The tenants will include Auto Zone, Rocky Rococo, Anytime Fitness, Great Clips and a stand-alone Buffalo Wild Wings restaurant. About $500,000 in TIF funds would be provided for the $5.5 million redevelopment of the Foster Pontiac site, if the project is approved by the Common Council. There are several vacant sites along the South 27 Street corridor, but city officials are hopeful the area can be revitalized because there are about 30,400 households, with an average household annual income of $45,700, within a 3-mile radius. The street gained a new business recently when Rosen Automotive Group opened a new $2 million Rosen Kia dealership at 5575 S. 27th St. The new dealership is located next to the Rosen Nissan dealership, built in 2006, and a Rosen used vehicle store.

Milwaukee establishes housing preservation fund

The City of Milwaukee’s Common Council Tuesday approved the establishment of a permanent, dedicated funding source, called the Housing Infrastructure Preservation Fund, to pay for restoring and preserving vacant residential properties. The fund was created in part because of the large number of foreclosed homes in the city that are not being taken care of. It will be used to take care of homes that will eventually be sold. “The city currently has far too many properties in its inventory that are in need of some restoration and rehab work to get them ready for sale, but there’s no money available to do that work,” said Ald. Robert Bauman. “The Housing Preservation Fund now can provide that critical dedicated funding to help turn these properties around, thereby preserving the city’s tax base, avoiding demolitions and increasing the city’s residential housing stock.” The money for the fund will come from a variety of sources including the tax levy, general obligation borrowing and proceeds from sales of restoration properties.

Fed slows $1.45 trillion program to aid housing market

Signaling confidence in a recovery, the Federal Reserve decided Wednesday to stretch out the pace of a program intended to lower mortgage rates and prop up the housing market. Even so, rates on home loans are expected to remain low.To foster the recovery, the Fed also decided to hold the target range for its key bank lending rate at a record low of between zero and 0.25 percent. Stocks fell as a brief rally followed the Fed's statement and then faded. The Dow Jones industrial average came within 82 points of crossing 10,000 for the first time since October but ended with a loss of 81. Stocks often trade erratically on days when the Fed issues policy decisions as investors pore over the statement. Some analysts said the Fed's statement was anticipated and didn't give the market enough reason to go higher — especially with stock indicators up more than 50 percent from their March lows. "The market got exactly what it was expecting," said Thomas Wilson, a managing director at Brinker Capital in Berwyn, Pa.

New jobless claims drop unexpectedly to 530K

The number of newly laid-off workers seeking unemployment benefits fell for the third straight week, evidence that layoffs are continuing to ease in the earliest stages of an economic recovery. The Labor Department said Thursday that initial claims for unemployment insurance dropped to a seasonally adjusted 530,000 from an upwardly revised 551,000 the previous week. Wall Street economists expected claims to rise by 5,000, according to a survey by Thomson Reuters. Fewer layoffs "would be an important sign of improvement ... lessening the critical threat to consumer spending — and to the overall economy — represented by falling employment," Pierre Ellis, an economist at Decision Economics, wrote in a note to clients. The Federal Reserve said Wednesday that spending "remains constrained by ongoing job losses," tight credit and falling home values. But consumer spending, which makes up 70 percent of the U.S. economy, could improve as workers feel more secure about their jobs.Meanwhile, home resales dipped unexpectedly last month after four straight gains, a sign the housing market recovery remains fragile.The National Association of Realtors said sales dropped 2.7 percent to a seasonally adjusted annual rate of 5.1 million in August. Sales had been expected to rise to an annual pace of 5.35 million, according to economists surveyed by Thomson Reuters. The median sales price fell to $177,700, down 12.5 percent from the same month last year.

A new marketing campaign for the Milwaukee area

A new marketing campaign, featuring a color brochure touting the Milwaukee area's entertainment, arts, business and education assets, is being rolled out.The campaign was created through a partnership among Visit Milwaukee, which seeks to attract visitors to the area; the Milwaukee 7 economic development group, and the Spirit of Milwaukee civic marketing group.The brochure is designed to help attract businesses to the Milwaukee 7 region, which encompasses Milwaukee, Waukesha, Washington, Ozaukee, Walworth, Racine and Kenosha counties.

Mayor: stalled Pabst Farms retail plans likely to change

The plans for a large shopping center at the Pabst Farms development, which have been on hold, are likely to change, says Oconomowoc Mayor Maury Sullivan. Sullivan made those comments in light of the recession, which has led to chain store closings throughout the country. You can read more in Paige Smaga's article at LivingLakeCountry.com.

Oak Creek's lakefront area gets a closer look

Redevelopment prospects for Oak Creek's lakefront will be the subject of a presentation Thursday by an advisory panel of the Urban Land Institute. The presentation, hosted by the City of Oak Creek and development firm Wispark LLC, comes after a three-day study of the lakefront area, and its redevelopment potential. The 250-acre study area, which includes one mile of Lake Michigan shoreline adjacent to Milwaukee County’s Bender Park, was once an industrial area. Effort to redevelop the area, sometimes referred to as Carrollville, have moved slowly. The presentation begins at 8:00 a.m. Thursday, at the Oak Creek Community Center, 8580 S. Howell Ave. For more information, contact Doug Seymour, Oak Creek director of community development, at (414) 768-6526.

Bay View, Northwest side improvement districts move forward

The Milwaukee Plan Commission has recommended approval for three new business improvement districts, including one in the Bay View neighborhood, and the other on the city's northwest side. Both districts would raise funds through annual assessments on commercial properties, with the money spent within each district's boundaries. The Bay View district  would raise about $47,000 annually along S. Kinnickinnic Ave., between Becher St. and Morgan Ave. The money would be spent on graffit removal, private security and business development efforts. The other district would raise around $86,000 annually, in the area around W. Silver Spring Drive, Highway 45 and N. Lovers Lane Road. The money would be spent on security, and boulevard strip maintenance. Both districts, which need Common Council approval, would make the areas more attractive to retail customers and others, say their backers. Opponents say they cannot afford to pay additional taxes. The commission on Monday also recommended approval for a district that would raise $175,000 annually along S. 27th St. between Oklahoma and College avenues. It would include properties in both Milwaukee and Greenfield, and would be the first of around 80 Wisconsin districts to cross municipal borders.

North side apartments planned for seniors

A 45-unit apartment building for low-income seniors would be built on Milwaukee's north side, under a proposal to be considered at today's Plan Commission meeting. The Volunteers of America and Shiloh Tabernacle Church have proposed the development for a site bordered by N. King Drive, N. Port Washington Road and W. Keefe Ave. The four-story building, known as Shiloh Manor, would have mostly one-bedroom units, and at least half of the apartments would be within an assisted living center. The development would be partially financed through affordable housing tax credits. Those tax credits are given to apartment developers that agree to rent some of their newly built units at below-market rates to low- and moderate-income tenants. Also, the commission will consider a plan to develop 47 apartments, mostly one-bedroom units, at Lapham Park, a low-income development operated by the Housing Authority, at 1901 N. 6th St.

August existing home sales slide unexpectedly

Existing home sales fell in August, snapping a four-month streak of increases, according to a report released Thursday.  Sales of previously-owned homes fell 2.7% last month from July, but were up 3.4% from a year ago, said the National Association of Realtors.  Sales had jumped 15.2% in the previous four months. "This is an unpleasant surprise," said Ian Shepherdson, economist at High Frequency Economics, in a research note. The NAR report said August home sales hit a seasonally-adjusted annual rate of 5.1 million units, down from 5.24 million in July. That's well below the analyst consensus estimate of 5.35 million annual units compiled by Briefing.com. Shepherdson noted that the July pending sales index, which had been a good predictor of actual sales lately, pointed to sales hitting 5.4 million units or even more. "The gap between the two numbers is not unprecedented, but we had hoped for better," he said.

What the housing 'rebound' means for you

Home sales are rising. Builders are buying lots. And prices are no longer in free fall. After so much pain, there are signs of life in the housing market.  But the "recovery" is far from universal. In many cities cheaper homes are selling fast -- but mid-range properties are still lingering, and high-end homes are gathering dust. "The luxury market still looks ugly," says economist Joshua Shapiro at economics consultancy MFR. If you're selling or buying, your strategies should depend on the value of the home you want or own. The bottom tier (hot) The lowdown: A big chunk of the 1.9 million post-boom foreclosures have been among the least expensive 35% of homes. Bargain prices on these foreclosures and a new tax credit of up to $8,000 for first-time buyers have lured investors and would-be homeowners back to the market, even in hard-hit areas, says Pat Lashinsky, CEO of online brokerage ZipRealty. Sales of homes between $100,000 and $250,000 are up 9% from a year ago. Meanwhile, many banks halted foreclosures earlier this year while waiting for details on the Obama administration's foreclosure-prevention plan. Greater demand combined with less supply is providing a strong spark to the market. "Buyers in most areas are now going up against multiple offers," says Lashinsky.

Development News for the week 9/12/09-9/18/09
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Edgewater project pauses to build support

In a major turnabout, the developer seeking to remake the Edgewater Hotel and neighborhood opponents will try to work together to resolve differences and make the project happen. The proposed $109 million redevelopment has split the Mansion Hill neighborhood and faces significant challenges related to historic preservation, the height of a new hotel tower, traffic and parking. Now, Robert Dunn, president of Hammes Co., is pausing to explore options that would be more acceptable to opponents. A committee of Capitol Neighborhoods Inc., which has been critical of the project, will help shape those plans and, depending on what emerges, could even become an ally in securing city approvals.

What's in Edgewater plan for us?

Stand on the rooftop of the Edgewater Hotel to look at the Capitol or over Lake Mendota, and it's difficult to imagine the idyllic setting promoted by hotel officials when they expanded it in 1973. "The roof of the addition will be built as a public promenade, with entertainment facilities available," a 1972 Wisconsin State Journal article described the future expansion. Other public amenities, like a rooftop garden overlooking two of the city's most scenic views, were touted as part of an expansion made possible by a city's agreement to cede part of the Wisconsin Avenue right-of-way to the Edgewater Hotel in 1965.

Edgewater Hotel design may get do-over

But the amount of city subsidy is not expected to change Jay Rath on Monday 09/14/2009 4:56 pm, (1) Recommendation Mayor Dave Cieslewicz will include a $16 million financing package for Edgewater Hotel redevelopment in his budget, even though the developer is withdrawing plans and canceling city meetings for the proposed $109 million project. Hammes Sports and Entertainment will instead come up with a new design for expanding and renovating the hotel.

Location, location, location

One of the key players in discussions over a controversial city-backed Edgewater Hotel expansion has also been one of the quietest. But National Guardian Life, a small mutual insurance company founded here in 1910, owns a crucial piece of lakefront real estate that apparently makes the entire $109 million venture feasible. If the deal goes forward as planned, the insurer stands to collect $3 million - nearly three times the assessed tax value - for a 20-foot-wide strip of land along Wisconsin Avenue. The land is needed to make room for a new 11-story hotel tower that is part of the Edgewater Hotel makeover envisioned by the Hammes Co,, which would develop the site.

Whitney Gould: Timid Edgewater design needs lighter touch

What a lovely artifact the Edgewater Hotel is. Designed by architect Lawrence Monberg and opened in 1948 as an apartment building, the Edgewater was a last gasp of the Streamline Moderne style, which celebrated the sleek profiles and aerodynamic shapes of luxury liners, locomotives and other symbols of the machine age.

With its portholes, wraparound windows, curved portico and buff brick, the Edgewater (it became a hotel in 1950) is all of a piece with two other Monberg buildings nearby: the Quisling Terrace apartments (formerly the Quisling Clinic), at 2 W. Gorham St., and the Quisling Towers apartment building, 1 E. Gilman St.

Dane County home sales up 0.7 percent in August

Dane County home sales in August were about even compared to a year ago, while year-to-date sales and sale prices remained stronger a year ago. The South Central Wisconsin MLS reported 581 house and condominium sales in Dane County in August, compared with 577 in August 2008, for an increase of 0.7 percent. Sales this August droppe considerably from this July, when 754 sales were made, which had been a 7 percent increase from July 2008. From January through August this year, there were 3,716 sales, down 9 percent from 4,084 for that period last year. The median sale price in Dane County in August was $212,352, a drop of 4 percent from last year. A preliminary data analysis by DaneCountyMarket.com - a Web site compiled by Keller Williams Realty using the MLS - found the greatest sales activity in the "very bottom of the market" for condominiums, agent Dan Miller said.

Around the State and Points Elsewhere
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Cudahy wanted to control design, construction of UWM lakefront project

Philanthropist Michael Cudahy, not UW-Milwaukee, would have largely controlled design and construction of UWM's proposed School of Freshwater Sciences headquarters on the lakefront, according to a newly obtained document. Philanthropist Michael Cudahy, not University of Wisconsin- Milwaukee officials, would have largely controlled design and construction of UWM's proposed School of Freshwater Sciences headquarters, if the university had developed it at the former Pieces of Eight lakefront site, according to a newly obtained document. Cudahy's proposal stirred concerns - from university officials as well as influential supporters of the nearby Milwaukee Art Museum - that led university Chancellor Carlos Santiago to drop plans to develop the building there.

Moderne loans get preliminary nod but face questions

The proposed apartment and condominium tower should receive $10 million in city loans, the Redevelopment Authority's board recommended Thursday. But the proposal will face questions, and a possible delay, when it goes before the Common Council. An apartment and condominium tower proposed for downtown Milwaukee should receive $10 million in city loans to help finance the $55.2 million project, the Redevelopment Authority's board recommended Thursday. But the loan proposal will face questions, and a possible delay, when it goes before the Common Council. Developer Rick Barrett hopes to begin construction in November on the 30-story Moderne high-rise. It would have 14 condominiums and 203 apartments at the southwest corner of N. Old World Third St. and W. Juneau Ave. The city loans, if approved by the council, would help complete the financing package for the Moderne, city Development Commissioner Rocky Marcoux told the authority's board.

Saint John's apartments finally moving forward

Saint John 's on the Lake's long-delayed plans for a 21-story senior apartment tower on Milwakee's east side are finally proceeding, with a groundbreaking expected in mid-October.

The 88-unit building, which will be on the parking lot just south of Saint John's current facilities, 1840 N. Prospect Ave., had been delayed for over a year by tightening credit markets. But, with 66 units sold, Saint John is moving forward with a bond sale to finance the $46 million development, said Rick Romano, marketing director. The building should be completed by mid-2011. Entrance fees for the planned apartments range from $285,000 to more than $500,000, with monthly rents of $2,600 to $5,400. The apartments will range from 1,100 to about 2,000 square feet, and amenities in the building will include a swimming pool and fitness center.

Details revealed on proposed city loan for Moderne

 The $10 million city loan sought by developer Rick Barrett for the proposed Moderne residential high-rise would actually be broken into two loans, each with a repayment term of up to four years.That's according to Department of City Development documents that I obtained this morning. The Moderne would be built in downtown Milwaukee, at the southwest corner of N. Old World Third St. and W. Juneau Ave. A feasibility study on the proposed loans, and a proposed term sheet, show that the city would provide Barrett's investment group with a "mezzanine loan" of $4 million, which would carry interest rates ranging from 14% to 15%.

Public park planned near The North End development

The city would create a small public park near Mandel Group Inc.'s The North End housing development, just north of downtown, under a proposal to be considered Thursday by the Redevelopment Authority. The authority's agenda says up to $1.7 million would be spent on the park, and on administrative costs relating to a financing plan for the Park East redevelopment area, which includes The North End site. But I have since seen another public document that shows about $750,000 of that $1.7 million is budgeted for the park. The park would be about 25,000 square feet, says Martha Brown, deputy development commissioner. It would be on a triangular block formed by the intersection of N. Water St., N. Broadway, and the planned future extension of E. Ogden St., Brown said.

One entrepreneur's view of King Drive development efforts

My colleague, Eugene Kane, had an interesting column today about entrepreneur Gaulien Smith's views of redevelopment efforts on King Drive, and in the Bronzeville area. Smith is the owner of Gee's Clippers, a popular barbershop at 2215 N. King Drive, and is talking about leaving the area. He says a big problem is the neighborhood's lack of parking.

Downtown high-rises seek public funding

Downtown Milwaukee might soon see two new residential high-rises - with each tower seeking some financing help from City Hall, along with loans insured by the federal government. On Thursday, the Redevelopment Authority will consider developer Rick Barrett's request for two city loans, totaling $10 million, to help finance the $55.2 million Moderne. Barrett hopes to begin construction in November on the 30-story building, which would have 14 condominiums and 203 apartments, and its own parking structure, at the southwest corner of N. Old World Third St. and W. Juneau Ave.

State jobless rate hits 8.4% as job losses continue

Wisconsin employers continued to scrap more jobs than they created last month as the unemployment rate hit 8.4% and the year-to-year job loss deepened. Wisconsin employers continued to scrap more jobs than they created last month as the unemployment rate hit 8.4% and the year-to-year job loss deepened. The state Department of Workforce Development reported Thursday that employers had 112,000 fewer jobs last month than in August 2008, a 3.9% drop that was slightly larger than the 3.8% gap in July.

But after even wider deficits from March through June, Dennis Winters, the state's chief labor economist, took heart from the latest data. "The fact that we're under 4% now in year-to-year job losses is another indicator I think that things are slowly turning around," Winters said.

Lawsuit could result in $125 million charge for Alliant

Alliant Energy Corp. warned it could record a third-quarter charge of $125 million, or $1.13 per share, as it seeks to resolve a federal lawsuit with U.S. Bank. Alliant Energy Corp. warned it could record a third-quarter charge of $125 million, or $1.13 per share, as it seeks to resolve a federal lawsuit with U.S. Bank. The Madison energy company has announced plans to buy back debt linked to its investment in McLeodUSA, a telecommunications firm that went bankrupt. The company said it would pay a maximum of $40 per note for nearly 6 million notes, or nearly $240 million, in an offer that expires Oct. 15. In exchange, those who buy the notes would have to agree to direct U.S. Bank to dismiss the suit it filed against Alliant last year.

Navy combat ship on schedule in Marinette

Marinette Marine and defense contractor Lockheed Martin Corp. are on schedule to complete their second U.S. Navy combat ship similar to the USS Freedom launched last fall.

The second ship, named USS Fort Worth, is about 13% complete, Lockheed Martin said Thursday. More than half of the ship's modules are under construction at the Marinette shipyard, and delivery of the vessel to the Navy is expected in 2012. Congress approved $1.02 billion for the Navy to purchase two littoral combat ships for fiscal-year 2009 that runs through September. The Navy had budgeted for three more of the ships, designed for use in shallow, coastal waters, in 2010 and has said it eventually wants about 55 of them. Wednesday, the Navy said it canceled plans to buy the three ships in fiscal 2010 due to cost concerns. Instead, it will award a fixed-price contract for up to 10 ships, two of which will be built in the coming fiscal year.

A.O. Smith buys interest in Chinese firm

With a $77 million acquisition in China, A.O. Smith Corp. Thursday said it is plunging into the fast-growing global market for water purification and expanding beyond its signature water-heater business. With a $77 million acquisition in China, A.O. Smith Corp. Thursday said it is plunging into the fast-growing global market for water purification and expanding beyond its signature water-heater business. The Milwaukee-based company acquired a controlling 80% stake in Tianlong Holding Co. Ltd., which it calls "the leading residential and commercial water purification company" in the world's most populous nation. Tianlong's headquarters is in Hong Kong, but its manufacturing base and major market are in China. Tianlong produces a broad line of water technologies for industrial users, including filter systems, water softeners and most critically an increasingly common form of filtration called reverse osmosis that is used in stripping impurities for everything from ocean-water desalination to bottled water.

A second life for Lena's on E. Capitol Drive

The family that operates the local Lena's supermarket chain plans to reopen a store at 709 E. Capitol Drive, where a Lena's closed in July 2008. M.F. Holdings Inc., owned by the Martin family, wants to buy the 80,000-square-foot building and remodel it into three retail spaces, with Lena's occupying most of the building. That's according to information released today by the Milwaukee Economic Development Corp., a business lending agency affiliated with the City of Milwaukee. M.F. Holdings is seeking a $500,000 loan from MEDC to help finance the $5.5 million project, which also would receive a loan from Legacy Bank. The agency is to consider the loan application at a Tuesday meeting.

Crowne Plaza lands conference; downtown's loss

The new Crowne Plaza Milwaukee Airport Hotel, 6401 S. 13th St., has landed a business conference that usually has been in downtown Milwaukee. The 2010 Wisconsin Entrepreneurs’ Conference will be held in June at the Crowne Plaza, said Tom Still, president of the Wisconsin Technology Council. The conference was held at the Hyatt Regency Milwaukee, 333 W. Kilbourn Ave., from 2003 through 2009. Conference organizers looked at other hotels after learning the Hyatt wouldn't have dates available next June, Still said.

New Goodwill store opens next week

Goodwill Industries will open a new retail store Sept. 25 at 12121 W. Feerick  St. in Wauwatosa. The store is in a 39,000-square-foot former industrial building near the intersection of W. Capitol Drive and N. 124th St. The selling floor will take up 19,000 square feet, making it the largest Goodwill store in the area. The rear of the building will be used as a warehouse and distribution center. "We are on a trend for growth," said Goodwill spokeswoman Cheryl Lightholder. 'The economy is helping us." This is the second new store for Goodwill this year, following the recent opening of the agency's Retique boutique shop in the Third Ward. With the new store, Goodwill will have eight stores in the metro Milwaukee area.

Green Building Council honors City Hall

Milwaukee City Hall has been recognized for its energy efficiency by the U.S. Green Building Council. The three-building municipal complex has been honored with a Leadership in Energy and Environmental Design silver award for building operations and maintenance. Changes recognized by the award include moves to save water through addition of low-flow aerators on sinks as well as installation of several low-flow toilets. The city also revamped its cleaning services at the building, including a switch to cleaning chemicals that meet “Green Seal” standards. The U.S. Green Building Council presented the LEED award to Milwaukee during the Wisconsin Green Building Association’s sixth annual Sustainability and Energy Efficiency Leadership Conference at the Italian Community Center.

August housing construction rises to highest level in 9 months, boosted by apartment building

Housing construction rose in August, but the results were mixed, with the large single-family sector falling for the first time in six months. The August performance added to signs that the housing industry has begun to recover from its worst downturn in decades. Still, economists cautioned that the rebound likely will be slow and tentative, given the glut of unsold homes and record levels of home foreclosures. Construction of new homes and apartments rose 1.5 percent to an annual rate of 598,000 units last month, the Commerce Department said Thursday, but the strength all came from the multifamily sector. The increase was slightly lower than the 600,000-unit pace that economists had forecast - and it's more than 70 percent below the peak hit in 2006.

More signs of a housing revival

New home building increased overall in August, a government report said Thursday, but the gain was clouded by a dip in new construction of single-family homes.  The Census Bureau reported Thursday that builders broke ground for 598,000 new homes during August, up 1.5% from a revised 589,000 in July. That matched a consensus analyst forecast compiled by Briefing.com. Building permits rose 2.7% to 579,000 from a revised 564,000 in July. A troubling aspect of the report was that starts of new single-family homes fell 3% in the month. Overall starts were higher due to a big gain in multi-family housing starts. According to economist Jeff Rosen of Briefing.com, multi-family home starts tend to vary much more than those of single family homes. He places more importance on the drop in single families than what could be an anomalous rise in multi-family starts.

Builder confidence rises

An index of home builders' confidence rose in September for the third month in a row, but an industry group said Wednesday the fragile residential real estate market recovery could be cut short if a popular government tax credit isn't extended. The National Association of Home Builders said that its Housing Market Index, which it compiles for Wells Fargo, rose one point last month to 19 -- the highest level since May 2008. The index, which fell to an all-time low of 8 in January, has increased steadily in 2009 as the housing market picked up in many parts of the country.

Home construction quality up

Builders may not be putting up as many houses as they did during the boom, but what they are building, they're building better. According to the J.D. Power and Associates 200 U.S. New-Home Builder Customer Satisfaction Study, overall customer satisfaction increased for the second consecutive year, up 32 points to 811 on a 1,000 point scale. Satisfaction with the quality of the home also grew, to 825 up from 799. The rate of customer-reported problems dropped to 9.55 problems per home down from 11.51 problems in 2008.

Development News for the week 9/5/09-9/11/09
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Greyhound service may move to Madison's East Side

Janice Adams, of Savannah, Ga., bid a doleful adieu as she boarded a Greyhound bus Friday at the Downtown Badger Bus depot. She was saying goodbye to her son Donald Kovach and his wife Vesna after seeing their son Ulysses off to kindergarten - but on this annual visit to Madison, she was also saying goodbye to a place full of hello-and-goodbye memories. Every arrival at the Badger Bus depot meant a trip to the China Wok on Fordem Avenue, and every departure meant ice cream sandwiches from the vending machine or the purchase of a souvenir bus bank for Ulysses.

Mayor Cieslewicz's blog defends TIF for Edgewater

I've had a few emails and seen some online comments about the Edgewater Hotel project that lead me to think I need to clarify a point. These comments are along the lines of "you, Mr. Mayor, can find money to help developers but you can't spare a dime for orphans and widows." I am paraphrasing, but some of the comments are not that polite. I have three responses. First, we haven't cut funding for other services. Spending on community services is up 36% since I took office, about the same as the police department and greater than the rate of general inflation. We just put in place the largest service expansion for Madison Metro bus riders in over a decade. We've added two new fire stations and two new ambulances in four years. We've stepped up water main replacement and street repair. I could go on.

Catching up: What will fill empty lot off Mineral Point Road?

Remember where Chi-Chi's used to be, at Mineral Point and Grand Canyon roads? The restaurant closed in 2004 and was later torn down, leaving a very visible gap for the past several years. But construction could begin before the end of 2009 on the first of a pair of buildings designed to house offices, shops, and, yes, even restaurants. Total Care Dental is the first tenant to sign a lease to occupy space in one of the buildings. When another tenant signs, construction can begin, said Ryon Savasta, a commercial leasing agent for Sara Investment Real Estate. Sara Investment is management agent for the property, at 414 Grand Canyon Road, which is owned by an investment group.

Madison: the low-cost biotech alternative?

Madison ’s biotechnology scene gets an unflattering mention in a new report detailed in the Scientist magazine — for having some of the lowest life sciences salaries in the nation. Wisconsin economic development gurus love to tout Madison as one of the world's rising biotech "hot spots." But Madison's biotechnology scene gets an unflattering mention in a new report detailed in the Scientist magazine - for having some of the lowest life sciences salaries in the nation. More than 4,700 professional scientists in the U.S. reported their salaries, providing a rare glimpse into the field according to gender, race, region and specialty.

Dane County's bond rating takes a hit

Dane County 's immaculate bond rating has been taken down a notch, which means the county will pay $25,000 more in interest over 20 years for the $25 million it plans to borrow this year. Investment services firms Moody's and Fitch Ratings adjusted the county's annual bond rating from Aaa to Aa because of "the deterioration of general fund revenue levels … primarily due to the ongoing economic downturn." The county expected to have a general fund reserve of $10.4 million at year's end, but may eat through the entire cushion as sales tax and other revenues are far weaker than expected.

Van Galder to start double-decker bus service in Madison

Van Galder Bus Co. is starting double-decker bus service Thursday to serve growing demand for travel from Madison to downtown Chicago. The closed-top, two-level bus can carry 81 people, up from the 57-passenger capacity in a regular coach-style bus, spokesperson Amanda Mullin said. The price for the route, at $27 each way, is the same as it was before, she said.

Green economic conference in Madison this week

Helping businesses adapt to a green economy is the focus of a conference at UW-Madison this week.

GKA Research of Madison and the UW-Madison School of Business are hosting "Innovative Approaches in Behavioral Marketing for the Green Economy." The conference begins with a Wednesday evening reception at the Memorial Union terrace and concludes on Friday. General sessions will be held at the Fluno Center. The conference is designed to guide business leaders through changing regulations related to sustainability and help them market their products under the new guidelines.

Bargain Nook to open store in Mount Horeb

The nonprofit organization that owns and operates Bargain Nook clothing stores in southwest Wisconsin has announced it will open its first store in Dane County. The 2,900-square-foot store, at 126 East Main St. in downtown Mount Horeb, is scheduled to open Nov. 1, said Lynne Johnson, retail sales director for the Hodan Center, a Mineral Point-based community rehabilitation program for adults with disabilities.

CUNA Mutual completes acquisition of crop insurer

CUNA Mutual Group has become sole owner of Producers Ag Insurance Group, a multi-peril crop insurer based in Amarillo, Texas, serving farmers and agricultural producers nationwide. ProAg will operate as a stand-alone subsidiary, and its acquisition supports CUNA Mutual's need to find new growth opportunities and diversify the risks its insures, president and chief executive officer Jeff Post said in a CUNA Mutual news release.

Around the State and Points Elsewhere
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Legislation introduced to help troubled TIFs

Two state lawmakers have introduced legislation that would allow more time for financially troubled tax incremental financing districts to pay off their debts. With a TIF district, a community typically borrows money to help fund a real estate development. The project's property taxes are used to pay off that debt. Once the debt is paid, the taxes flow to the community, its school district and other local governments.

However, such districts are running into trouble. They include districts in smaller communities, such as Warrens and Necedah, as well as larger cities, including Milwaukee.

Bauman: Milwaukee should woe UWM engineering project

Retired business executive Michael Cudahy’s decision to drop plans to help fund University of Wisconsin-Milwaukee’s engineering campus in Wauwatosa could open the door for Milwaukee to convince university officials to consider downtown as a site for that project, Ald. Robert Bauman says. Bauman issued a statement after I reported Wednesday that Cudahy was no longer going to fund the Michael J. Cudahy Innovation Park, at the Milwaukee County Grounds. The development, planned for east of Highway 45 and north of Watertown Plank Road, would include graduate facilities for the College of Engineering and Applied Sciences, and private development.

Apartments near Timmerman Airport sell for $2.4 million

The 65-unit Timmerman Terrace apartment development, 5144 N. 105th St., has been sold for $2,425,000, according to broker Marcus & Millichap Real Estate Investment Services. The building, constructed in 1975, was sold by Atlas of Wisconsin LLC to Berrada Properties 4 LLC. The sale was brokered by Matthew Whiteside, of the Milwaukee office of Marcus & Millichap. The sales price amounts to $37,308 per unit, and $40 per square foot.

Brookfield TIF district performance reviewed

Brookfield's only tax incremental financing district, created to spur development in the area near Brookfield Square mall, gets a performance review in this article by Alan Hamari, of sister publication Brookfield Now.

Doyle renews push for transit plan

Gov. Jim Doyle announced a revised plan to jump-start regional transit Tuesday, including giving Milwaukee County the authority to raise local sales taxes by 0.5% to help pay for local bus service and a commuter rail line. Racine and Kenosha counties, which have resisted earlier regional transit moves, could get state matching money to prod them into joining the effort, Doyle said at a news conference at the Milwaukee Intermodal Station.

The renewed transit push is timed to give southeastern Wisconsin a leg up in securing federal transit aid for the proposed $200 million Kenosha-Racine-Milwaukee commuter rain line.

Transit authority or no, commuter rail hearings roll on

Even without an engineer in the cab, the train is still moving forward. Regional planners are holding public hearings next week on plans for a commuter rail line connecting Milwaukee to Racine, Kenosha and the southern suburbs. But at the moment, they have no one to whom they can report the results of those hearings. The temporary Southeastern Wisconsin Regional Transit Authority went out of business last week. Its successor, the new Southeastern Regional Transit Authority, hasn't started operating yet. And the law that authorized the new RTA could be changed by legislation being negotiated by Gov. Jim Doyle and lawmakers behind closed doors.

Cudahy drops UWM engineering donation

The marriage of philanthropist Michael Cudahy's money and University of Wisconsin-Milwaukee Chancellor Carlos Santiago's vision appears to be on the rocks. At a black-tie event at Discovery World in November 2007, Cudahy, one of the region's best-known philanthropists, announced plans for a major donation to help UWM develop an engineering campus at the Milwaukee County Grounds. He didn't specify an amount, but he told the Journal Sentinel then that he hoped the donation would "be enough to assure the purchase of that land." At the time, the land's value was estimated at $10 million to $12 million. On Wednesday, however, a university official confirmed that Cudahy will not be helping fund the new College of Engineering and Applied Science graduate research facilities at the county grounds in Wauwatosa. And Cudahy himself said he never made a formal pledge of financial support.

Real Estate: Changes abound for airport hotels

In the area around Mitchell International Airport, two new hotels recently opened, another opened early this year, and several others have changed brands within the last two years. The newest hotel additions to the airport area are a 100-room, three-story Candlewood Suites hotel at 6440 S. 13th St. and a 120-room Fairfield Inn & Suites at 6460 S. 13th, both in Oak Creek, which were developed next door to each other by Wisco Hotel Group. Wisco also developed the 138-room Comfort Inn & Suites in 1999 and the 115-room Holiday Inn Express in 2005.

Town hall meeting to rally support for Hoan Bridge

Milwaukee County Supervisors Marina Dimitrijevic and Chris Larson will host a town hall meeting to discuss the future of the Hoan Bridge on Monday, Sept. 21. The meeting, which will take place at 5:30 p.m. in the South Shore Park Pavilion, is the latest in a series of events intended to gather community input about the Wisconsin Department of Transportation's consideration of replacing the Hoan Bridge with a street-level lift bridge and roundabouts.

Doyle unveils Southeast WI regional transit authority proposal

Wisconsin Gov. Jim Doyle on Tuesday announced a framework of a proposal crafted with legislators from southeastern Wisconsin on a plan to improve bus and rail service in Milwaukee, Kenosha and Racine through a Regional Transit Authority. The proposal would give Milwaukee County the authority to raise local sales taxes by 0.5 percent to fund local transit and a commuter rail line. “Investing in safe, reliable modes of transportation allows people to travel and commute efficiently and it strengthens the economy,” Doyle said.

Coakley acquires another Milwaukee warehouse

C.H. Coakley & Company, a full-service business operations management firm, has expanded its warehouse and distribution division by purchasing an additional facility on Green Tree Road in Milwaukee. The acquisition adds another 172,000 square feet to the company's warehouse offerings and will result in the creation of 12 to 14 new jobs.

Bradshaw Medical to build new HQ in Kenosha

Bradshaw Medical Inc., a manufacturer of orthopedic and spinal surgical instruments, plans to build a new 60,000-square-foot headquarters building at 104th Avenue and 58th Place in Kenosha. The facility will replace the company's current 15,000-square-foot headquarters at 5732 95th Ave. , Kenosha. The site of the new facility is about one mile west of the company's current headquarters. The company, which has 75 employees, is growing and needs more space, said marketing coordinator Rebecca Lyyski. "Despite current U.S. economic conditions, BMI remains on track for another substantial growth year in the industry," said Chairman Guy Bradshaw.

Volvo Rents planning locations in Waukesha, Washington counties

Volvo Rents is looking for a franchisee in the Milwaukee area to open stores in western Waukesha and southeast Washington counties. Ashville, N.C.-based Volvo Rents, a division of Volvo Construction, which is a subsidiary of Volvo Group, is looking for a franchisee in the Milwaukee area to open stores in western Waukesha and southeast Washington counties. Volvo Rents leases general construction and industrial equipment including backhoes, excavators, saws, lifts and generators. The company's customers are typically small businesses. "Our end user is generally a small business that doesn’t want to own all of the equipment that they need to do a job," said Volvo Rents vice president of marketing Mick Mavrick.

Concordia professor buys former Thiensville State Bank building

Concordia University associate professor of history and economics Van Mobley and his wife are buying the original Thiensville State Bank building. By the end of the month Concordia University associate professor of history and economics Van Mobley and his wife will close on the purchase of the original Thiensville State Bank building, located at 136 Green Bay Road in downtown Thiensville. The 1,300-square-foot, one-story, brick building was constructed in 1910.

The Mobleys are buying the building from long-time Thiensville businessman John Burbank. Mobley declined to disclose the terms of the deal.

County seeks 'frivolous' complaints fee

La Crosse County officials have proposed charging a fee for "frivolous" complaints brought to its Ethics Board. The county's Executive Committee voted 6-Wednesday to assess a fee against "egregious" complaints, or those the board finds to be without merit. The city of La Crosse has had recent problems with complaints its Ethics Board ultimately threw out, County Corporation Counsel William Shepherd said. One was against Dorothy Lenard, who in April lost the mayoral race to Matt Harter. It had been filed by Harold "Deak" Swanson, who unsuccessfully ran for mayor in 2005.

Wisconsin unemployment claims fall again

Wisconsin 's employment picture continued to brighten last week with another fall in unemployment insurance claims.
Initial claims for unemployment insurance in the state fell by 1,147 to a total of 15,803 for the week ending Sept. 5, according to the latest figures by the Wisconsin Department of Workforce Development.
Even more impressive was the number of continued claims for unemployment insurance, which decreased from the prior week by 8,027 to a total of 137,405.

Fond du Lac County Board approves sales tax, loan for Mercury Marine

Mercury Marine won overwhelming approval from the Fond du Lac County Board Wednesday night for a $50 million, publicly financed loan - a key incentive in what appears will be a successful effort to keep the big employer here.   Mercury Marine Inc. won overwhelming approval from the Fond du Lac County Board on Wednesday night for a $50 million, publicly financed loan - a key incentive in what appears will be a successful effort to keep the big employer in town. With little dissent, the board approved borrowing the money for the company, and passed a half-cent-on-the-dollar county sales tax to pay the debt service.

12% aided by Obama plan

Mortgage servicers have picked up the pace of loan modifications over the past month, after coming under fire for not doing enough to help troubled borrowers. Servicers have placed 12% of eligible troubled borrowers into trial modifications under President Obama's foreclosure prevention plan, the Treasury Department said Wednesday. The progress report, the second issued by the government, says that 360,165 homeowners who were at least two months behind in payments received relief through August. A month ago, just 9%, or 235,247 borrowers, were in trial modifications.

Task force recommends steps to reduce foreclosures

A task force formed to help reduce home foreclosures is recommending legislation that would make state licensing of home appraisers mandatory and require mortgage brokers to put borrowers' financial interests ahead of their own. Assembly Speaker Mike Sheridan's "Speaker's Taskforce on Preventing Home Foreclosures" also recommends a law requiring court officials to notify municipal clerks when a home has been abandoned, and wants Wisconsin's financial education standards for students to include information on the types of mortgages and the risks associated with them.

Rockwell's Nosbusch takes manufacturing pitch to Washington

Rockwell Automation Inc. chief executive Keith Nosbusch joined other manufacturing leaders Wednesday in prodding Congress and the Obama administration for greater federal investment in manufacturing. Arguing that manufacturing is "shovel-ready," representatives from industry associations challenged Congress to invest $2 billion in U.S. manufacturing through a public-private partnership. At a briefing at the National Press Club, the panelists pushed for an increase in federal research and development funding, tax credits for energy-efficient manufacturing systems, and the development of a "smart grid."

State's alt-fuels grant is biggest in U.S.

A $15 million alternative fuels grant won by Wisconsin recently from the U.S. Department of Energy is the single largest grant awarded across the country, the governor’s office said Wednesday. A $15 million alternative fuels grant won by Wisconsin recently from the U.S. Department of Energy is the single largest grant awarded across the country, the governor’s office said Wednesday.The grant will be used to help more than 119 Wisconsin communities and businesses invest in more than 500 alternative-fuel vehicles.

GM cutting most Cadillac dealers

General Motors Corp. is dropping the franchises of 70 percent of Cadillac dealerships nationwide and southeast Wisconsin is no exception, leaving only two area dealerships confirmed as continuing beyond 2010 — Metropolitan in West Allis and Crest in Brookfield. Metropolitan Cadillac, in fact, is running commercials urging customers whose dealers are closing to switch to its dealership. “My understanding is that there are a lot of Cadillac stores closing,” said Metropolitan president Max Stephenson. “The only two that are staying open are Metropolitan and Crest.”

Milwaukee Democrats speak out against mayoral takeover of MPS

U.S. Rep. Gwen Moore, state Democratic lawmakers from Milwaukee and a host of labor and civil rights leaders joined forces Tuesday to speak out against Milwaukee Mayor Tom Barrett's proposal for the mayor to control the Milwaukee Public Schools system. But because there's no proposed legislation yet in Madison to change state law and transfer power over MPS from the School Board to the mayor, critics such as Moore and several state legislators - Sen. Spencer Coggs, Rep. Fred Kessler, Rep. Barbara Toles and Rep. Annette Polly Williams - were left with few new arguments to make against the plan.

Foreclosure filings dip from July to August

The number of U.S. households threatened with losing their homes held steady last month, a sign that lenders' efforts to help distressed borrowers may be having a gradual impact. The number of U.S. households threatened with losing their homes held steady last month, a sign that lenders' efforts to help distressed borrowers may be having a gradual impact. But one month does not make a trend. More than 358,000 foreclosure-related filings were recorded in August, meaning one in 357 U.S. homes received a filing, RealtyTrac Inc. reported Thursday. That number, up 18 percent from a year ago, includes default notices, scheduled auctions and bank repossessions.

Fed: consumers cut debt by record $21.6B in July

Consumers slashed their borrowing in July by the largest amount on record as job losses and uncertainty about the economic recovery prompted Americans to rein in their debt. Economists expect consumers will continue to spend less, save more and trim debt to get household finances decimated by the recession into better shape. Such behavior, though, is a recipe for a lethargic revival, because consumer spending accounts for 70 percent of economic activity. The Federal Reserve reported Tuesday that consumers in July ratcheted back their credit by a larger-than-anticipated $21.6 billion from June, the most on records dating to 1943. Economists had expected credit to drop by $4 billion.

New normal for home sales: Buyers have the power

The American dream of homeownership is still attainable. Buyers just have to deal with a new set of realities. A year after the collapse of the housing market triggered the financial meltdown, lenders are demanding more money up front, high credit scores and proof of income. Paperwork must be in perfect order. Patience and persistence are required. And don't even bother asking about a subprime mortgage.

It's a vastly different set of rules from earlier this decade, when home prices soared and mortgages were easy to come by.

New frugality is the new normal, by necessity

A year after "shop 'til you drop" stopped, the nation fixates on this question: Will consumer spending ever return to pre-recession levels? Increasingly, the answer appears to be no. Belt-tightening in bad times is normal. And after every other recession since World War II, penny-pinching quickly fell out of fashion and Americans resumed their demand for houses, cars and everything else. This time it's different. Like the Great Depression in the 1930s, the Great Recession seems destined to turn many Americans into lasting coupon-cutters, scrimpers and savers. Consumers dug a debt hole over the past decade from which there's no easy climb out. The population segment that drives spending the most _ baby boomers _ faces special pressure: Boomers are running out of time.

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