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Development News for the week 4/18/09-4/24/09
LANDMARKS COUNCIL VOTES AGAINST PLAN
The Landmarks Commission voted against a plan to demolish 11 Downtown houses and refurbish eight others to make way for three apartment buildings in the 600 block of East Johnson and East Gorham streets. After the 5-2 vote Monday night, the proposal goes to the Plan Commission. The Landmarks Commission cited the loss of the 19th-century houses, the size and scale of the new proposal and the proximity of the project to the Fourth Lake Ridge Historic District, said Rebecca Cnare, urban design planner and acting preservation planner for the city.
3 RAIL CROSSINGS MAY CLOSE PROPOSAL COULD AFFECT CENTRAL PARK PLAN
For the second time in four years, the Wisconsin and Southern Railroad has asked state officials for permission to close three crossings on Madison's east Isthmus - one of which could affect the operation of the proposed central park. The railroad is looking to close the Livingston, Brearly and Blount street crossings because of concerns over how Madison's population growth will affect safety at the sites.
NEW LIVES FOR OLD FIREHOUSES IN MADISON, RETIRED FIRE STATIONS RARELY DIE. SEVEN HAVE BEEN RENOVATED AND REBORN FOR OTHER USES.
Standing inside 301 N. Broom St., you can't hear the clanging alarm bells or the "wheeoo!" of the siren, but there are clear signs this otherwise modern office building was once home to firefighters and the tools of their trade. There's the station house doors, never again to be swung open in an emergency, and the original foot-thick sandstone walls in the basement. A hose tower - used to dry out hoses when they still had mildew-susceptible cotton jackets - graces the entryway to one of the office suites.
SLUMPING ECONOMY PRODUCES RECORD AMOUNT OF DELINQUENT PROPERTY TAXES
The biggest property tax deadbeat in Dane County is hoping to shed the title by selling some of its holdings at bargain basement prices. Kraus Real Estate and Builders, Inc. of Sun Prairie next month will attempt to unload 60 properties that have contributed to an overdue tax bill of more than $815,000.
ON THE FAST TRACK FOR HIGH-SPEED RAIL
Madison , Dane County and state officials are generally agreed that high-speed rail service linking Wisconsin's capital city with Chicago, Milwaukee and Minneapolis could provide a dramatic boost to this vital region. Now, however, they must move beyond agreement and high hopes to rapid response.
MARCUS SCALES BACK DOWNTOWN HOTEL PLAN
After months of informal talks, Marcus Corp. is proposing to build a 275-room hotel - smaller than previously envisioned - to serve Monona Terrace. The hotel, which would incorporate the landmark Madison Municipal Building, is more modest than earlier discussed and far smaller than the 400 rooms recommended in a recent study and sought by the Greater Madison Visitors and Convention Bureau.
DEVELOPER OFFERS $3M DONATION FOR DOWNTOWN LIBRARY IF HIS PLAN IS PICKED COMPETITOR SEES IT AS 'CHICAGO-STYLE INFLUENCE'
Real estate developer Terrence Wall has upped the ante in the contest to build a new downtown library. The local real estate developer and president of T. Wall Properties is ready to donate $3 million toward the Madison Central Library -- provided the city moves forward with his vision for the project.
Central Library talk heats up; mayor urges 'bold, aggressive' action
Madison 's Central Library was the talk of the town Wednesday, garnering a prominent mention in Mayor Dave Cieslewicz's "State of the City" speech and drawing about 100 people from all over Madison for a public hearing on rebuilding it. The public forum, hosted by Capitol Neighborhoods Inc., was the first public meeting after the city's Central Library committee heard about the potential for renovating rather than rebuilding the library. Currently, the committee is grappling with two plans to rebuild the library at a cost of $38 million or $43 million, as well as several remodeling schemes that cost between $15 million and $20 million.
HOME VALUES DROP IN MADISON CITY BEGINS MAILING NEW ASSESSMENTS
For the first time in decades, the value of an average home in Madison has dropped, falling 1 percent in the last year to $245,424. But a modest rise in the value of commercial property and new construction has resulted in a 0.7 percent increase in the city's overall real estate value, according to figures released by the city assessor's office Friday. Even so, the $378 million in new construction was the lowest sum since 1999.
Foreclosures more than doubled here in first quarter
The number of Dane County households threatened with losing their homes more than doubled in the first quarter this year, according to data... The number of Dane County households threatened with losing their homes more than doubled in the first quarter this year, according to data released Thursday. That compared with a 57.0 percent increase in Wisconsin and a 23.6 percent increase nationally, RealtyTrac Inc. reported. There were 675 foreclosures in Dane County in the first three months of the year, compared to 328 in the first quarter of 2008, the foreclosure listing firm reported. That is one in every 312 homes here.
Roche Madison enjoys greatly expanded quarters
Madison welcomed officials of its parent company, Swiss pharmaceutical giant Roche, to its new quarters on Thursday. Formerly Mirus Bio, the company was purchased by Roche last year for $125 million. It has moved from the MGE Innovation Center, 505 S. Rosa Road, to a building on the other side of University Research Park, at 465 Science Drive, which has been updated and equipped in a $4.4 million project. The move more than doubles space for the company, from a previous 9,000 square feet to the current 24,000 square feet.
Globe University to open in July in Middleton
Madison-area workers looking to retool in a harsh economy will have one new option this summer -- and another one likely next year -- as... Madison-area workers looking to retool in a harsh economy will have one new option this summer — and another one likely next year — as Minnesota’s Globe University spends $12 million to open two branches of its for-profit, career college network here. First up is Middleton, where campus director Brock Vander Velden said the 31,000-square-foot building under construction at 1345 Deming Way, east of the Marriott Madison West, is “on track” to open in mid-June. Degree programs in business, health care, criminal justice and other high-demand areas such as massage therapy and veterinary technology will start July 20, he said.
IS FITCHBURG THE SETTING FOR THE NEXT REALITY TV HIT? RESTAURATEUR OFFERS A JOB AND PIECE OF HIS BUSINESS AS TOP PRIZE.
A Madison-area businessman is giving half ownership of his restaurant and bar as the tantalizing top prize in a reality TV show pilot. The show is being filmed now at Good Times in Fitchburg after drawing thousands of online applicants.
IMPACT ON TOTAL DANE COUNTY EMPLOYMENT GOES FAR BEYOND HOSPITAL WALLS
In the first article in this series, we learned that businesses create jobs in three ways. First, they hire employees (direct employment). Second, businesses spend money on the goods and services they need to operate. This spending supports additional employment in the firms that provide those goods and services (indirect employment). Finally, more jobs are created as people employed by the business and those employed by their suppliers spend their wages and salaries (induced employment).
EYE-OPENING INNOVATIONS INVENTIONS FROM THE ENGINEERING EXPO, INCLUDING MANY FROM STUDENTS, RESULT IN HUNDREDS OF PATENTED IDEAS AND NUMEROUS SUCCESSFUL SPIN-OFF COMPANIES EACH YEAR.
An environmentally friendly soda vending machine that doesn't use bottles. A snowmobile powered by an electric engine so that it doesn't pollute or sound like the Indy 500. An inexpensive windmill that can be built from junk and provide power to homes. A golf cart that can raise paraplegic golfers into a standing position so they can swing their clubs.
Dane County's homeless population rises
Dane County ’s estimated homeless population last year increased 17 percent from 2007, though area social service providers say the fallout from the recession has yet to hit home. Annual data collected by the Community Development Block Grant office showed:The number of children served by local shelters was the highest in 10 years, increasing to 1,310 from 848 in 2007, a 55 percent rise.
Around the State and Points Elsewhere
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MLG drops Lisbon development plan
MLG Development has dropped its plans for a 100-acre residential and commercial development along Highway 164 between Good Hope and Plainview Roads in the Town of Lisbon, according to a report by our sister publication, the Sussex Sun.
Nehring's Family Market planned for Brady and Water
A 15,000-square-foot Nehring's Family Market, operated by John and Anne Nehring, is planned for the former Habhegger Wheel and Axel shop, at E. Brady and N. Water streets. The Nehrings have agreed to lease the building from New Land Enterprises, and are now assembling financing to remodel the property, Anne Nehring tells me. She hopes to have the upscale grocery open by the December holiday season. The market will be similar to the couple's other stores: Nehring's Sendik's on Oakland, in Shorewood, and G. Groppi Food Market, in Bay View.
Protein Plant Built On Fast Track
Consolidated Construction Co., Inc., Appleton, WI, was the general contractor overseeing construction of the country's first plant that can process many types of whey into concentrated protein for use in specialty products like animal food, pill and candy coatings, nutrition bars, protein shakes, and infant formula. The new plant sits in the south-central Wisconsin city of Reedsburg and is owned by Wisconsin Specialty Protein (WiSP), which will seek LEED Silver certification under the United States Green Building Council's Green Building Rating System. It is the first — and so far, only — facility in the United States set up to process the different kinds of whey (a protein-rich liquid left over from cheese making) that come from making cheese with cow, sheep and goat milk.
Slumping economy produces record amount of delinquent property taxes
The biggest property tax deadbeat in Dane County is hoping to shed the title by selling some of its holdings at bargain basement prices. Kraus Real Estate and Builders Inc. of Sun Prairie next month will attempt to unload 60 properties that have contributed to an overdue tax bill of more than $815,000. The properties up for auction include condominiums, single family homes and undeveloped lots in the Liberty Square development on Sun Prairie's north side. It also includes 20 condo units in Fall River. Developer Herman Kraus did not return phone calls for comment. But in a statement announcing the auction he said, "We wanted to get buyer traffic to our properties and decided the auction method was the best business decision to move inventory. The auction will eliminate the carrying costs and pass savings on to the buyer."
Madison's smoking ban hits five-year anniversary
These days, Steve Holtzman enters a Madison tavern and takes a breath of satisfaction. Five years ago — April 20, 2004 — the former City Council member won a hard-fought battle he led to enact the state’s first full smoking ban in bars, restaurants, bowling alleys and other workplaces. Now, nearly four years after the ban went into effect in July 2005, smoke-free advocates say bar employees are healthier, bans are taking effect elsewhere in Dane County, the hospitality industry is doing fine and the Legislature is considering a state ban.
LAKE DELTON LOOKS LIKE LAKE
Ten months after the water rushed out of Lake Delton, the Wisconsin Dells area attraction is back in business. Passengers on the Wisconsin Original Ducks tours splashed into the lake Thursday. They're among the first to enjoy the restored 264-acre lake. The popular amphibious tours were among tourism businesses affected when a series of storms caused the lake to swell June 9, producing a breach that drained the water in less than three hours and washed away five homes and part of a highway. The lake is about 2 feet from being fully refilled. It's expected to reach its original level by late May.
Developer may build extended stay hotel near Brady Street
Ajit "Jay" Walia, one of the owners of the Comfort Inn and Suites in downtown Milwaukee, is working on plans to build an extended stay hotel near the Brady Street business district. Milwaukee, is working on plans to build an extended stay hotel near the Brady Street business district on Milwaukee's east side. The hotel would be a Candlewood Suites, according to a source. Walia has not formally submitted any plans about the project yet to the city, but he has met with city officials and neighborhood groups about the project. Walia could not be reached for comment Tuesday.
Downtown office space vacancy spikes
The office space vacancy rate in downtown Milwaukee spiked upward during the first quarter of 2009, according to a new report from Boston-based Colliers International. The office space vacancy rate in downtown Milwaukee spiked upward during the first quarter of 2009, according to a new report from Boston-based Colliers International, whose local affiliate is Milwaukee-based Colliers Barry. The downtown Milwaukee office space vacancy rate was 18.62 percent at the end of the March, up from 17.54 percent at the end of 2008. The vacancy rate in downtown Milwaukee is considerably higher than the national average of 12.79 percent for downtown office space vacancy, according to Colliers Barry.
Franklin Energy plans major expansion
Port Washington-based Franklin Energy Services LLC, which implements energy efficiency programs, which advises businesses on how to reduce utility costs and improve overall energy efficiency, is currently looking to add locations in Michigan, Minnesota, Colorado, New Mexico, Nevada, and Wisconsin. Franklin Energy specializes in the implementation of energy efficiency and renewable energy programs for utilities, municipalities, and states. Franklin Energy’s staff consists of professionals in program management, engineering, technical field staff, marketing, information technology, finance, and office support. They currently employ over 150 employees working from eleven offices in Wisconsin and throughout the United States., stressed the importance of using time tested expertise in critical growth oriented tasks.
The Edge condo complex opens
The Edge, a 66-unit condominium buildilng, at 1902 N. Commerce St., had an open house this week. Developer Paul Marks, who operates Chicago-based Tandem Developers LLC, told me that 60% of the units have been sold. Some of the first residents have started moving into the building, which overlooks the Milwaukee River. Tandem has plans to eventually develop a second building.
Two more Park Lafayette buyers try to drop their contracts
Two more people who agreed to buy condominiums in Milwaukee’s Park Lafayette high-rise are suing the project’s developer, seeking to kill the contracts--and a return of their earnest money deposits. The latest suits were filed in Milwaukee County Circuit Court by John Pocernich, of Denver, and David Wells, of Brookfield. They join three earlier suits that make the same claim: developer Renaissant Lafayette LLC started construction on the project’s second tower before it reached the proper level of condo sales. As a result, they claim Renaissant Lafayette broke its contracts with them, and should return their earnest money.
Hotel operators look for brighter summer
Several hotel executives say summer has the potential to be a bit stronger than the first quarter, according to a report from Robert W. Baird & Co.
A decline in booking trends has "somewhat subsided," said Baird analyst David Loeb, in a note issued Monday. "At least one observer believes April could mark the bottom," Loeb wrote. If true, that's good news for Milwaukee hotel operators, who typically make a larger share of their money during the summer tourism season. Among the new hotels to open this summer are the Crowne Plaza, 6401 S. 13th St., and the Staybridge Suites, 1150 N. Water St.
Developers team up for affordable housing projects on north side
Local developer Melissa Goins is partnering with Brinshore Development LLC, from the Chicago area, to build two affordable apartment projects on Milwaukee's north side. Brinshore, and Goins' Maures Development Group LLC, will receive federal tax credits to help finance the 36-unit Franklin Square, near the northwest corner of N. Teutonia Ave. and W. Center St., and the 24-unit Heart and Hope Place, at 3400 N. King Drive. The federal credits are given to developers that agree to rent apartments at below-market rates to moderate-income people.
Investor group sues Park Lafayette developer, Renaissant
A new lawsuit filed against the developer of Milwaukee's Park Lafayette condominium towers claims there are plans to rent, instead of sell, some of the units. As a result, local investors group JLS Holdings LLC says its agreement to buy a unit at Park Lafayette should be scrapped and its $75,995 in earnest money should be returned. JLS filed the suit Wednesday in Milwaukee County Circuit Court against building owner Renaissant Lafayette LLC. Park Lafayette, at N. Prospect Ave. and E. Lafayette Place, does have a program to sell units through a lease-to-own program, said Warren Barr, president of Oak Brook, Ill.-based Renaissant Development Group LLC, which formed Renaissant Lafayette.
Developer: no apartments at Park Lafayette
A new lawsuit filed against the developer of Milwaukee's Park Lafayette condominium towers claims there are plans to rent, instead of sell, some of the units. As a result, local investors group JLS Holdings LLC says its agreement to buy a unit at Park Lafayette should be scraped, and its $75,995 in earnest money should be returned. JLS filed the suit Wednesday in Milwaukee County Circuit Court against Renaissant Lafayette LLC. Park Lafayette, at N. Prospect Ave. and E. Lafayette Place, does have a program to sell units through a lease-to-own program, said Warren Barr, president of Renaissant Development Group LLC, which formed Renaissant Lafayette.
Goins going forward on apartments
Local developer Melissa Goins is partnering with Brinshore Development LLC, from the Chicago area, to build two affordable apartment projects on Milwaukee's north side. Brinshore, and Goins' Maures Development Group LLC, will receive federal tax credits to help finance the 36-unit Franklin Square, near the northwest corner of N. Teutonia Ave. and W. Center St., and the 24-unit Heart and Hope Place, at 3400 N. King Drive. The federal credits are given to developers that agree to rent apartments at below-market rates to moderate-income people. The Wisconsin Housing and Economic Development Authority on Thursday announced it will provide credits to 37 projects throughout Wisconsin, including several Milwaukee developments.
Hyatt's $19 million makeover nearly complete
The Hyatt Regency Milwaukee's $19 million makeover is nearly complete. I checked it out this morning. The place is looking pretty cool. The breakfast buffett restaurant and adjacent sports bar that once dominated the lobby are gone. Instead, there are places for guest to sit and use their laptops, watch flat screen TVs or just relax. There's also an upscale cocktail lounge, Bar 333, and a smaller restaurant, Bistro 333. Other changes include remodeled guest rooms and an upgraded fitness center. The renovations occurred after the 481-room hotel was sold in 2007 by developer Gary Grunau and his partners to Atlanta-based Noble Investment Group for $43.9 million.
There ARE retailers looking for space
There ARE retailers looking for space, despite the country's worst recession since the Great Depression. That's the message from brokers Josh Minkin and Peter Glaser, of C.B. Richard Ellis. They led a discussion on the Milwaukee-area retail market Tuesday at the Commercial Real Estate Roundtable Forum sponsored by the Commercial Association of Realtors-Wisconsin. "People are doing deals out there," Minkin said. A list provided by Minkin and Glaser of active retailers include several restaurant operators, such as Sonic and Tazino's Pizza; Gold's Gym and other fitness centers; AutoZone and other auto parts suppliers, and thrift-oriented stores such as Dollar Tree, Citi Trends and Aldi.
Vacant offices abound downtown, 'burbs
If you're shopping for a large block of office space, there's an ample supply available throughout the Milwaukee area. That's one of the take-aways from Tuesday's Commercial Real Estate Roundtable Forum sponsored by the Commercial Association of Realtors-Wisconsin. The event occurred at the Italian Community Center. At a discussion of the office market, broker Andrew Jensen, of Boerke Co., provided a list of 36 buildings that each has contiguous blocks of vacant space of at least 30,000 square feet.
Year-to-year plunge in Milwaukee-area jobs sets record
Metropolitan Milwaukee registered a record year-to-year plunge in jobs last month as local unemployment continued to climb, according to preliminary numbers released Wednesday. The unemployment rate in the four-county Milwaukee area jumped to 9% from a seasonally unadjusted rate of 4.8% in March 2008, the Wisconsin Department of Workforce Development reported. Each of the state's 12 metro areas had much higher rates than the year before, with three hitting double digits - Janesville at 13.5%, Racine at 10.7% and Fond du Lac at 10.4%.
Green Bay has highest jobless rate in 19 years
The city of Green Bay's unemployment rate reached a 19-year high last month, increasing to 13 percent from 11.9 percent in February. The March unemployment rate is the highest recorded in Green Bay between 1990 and the present, according to state Department of Workforce Development statistics. The previous high was the February rate of 11.9 percent. The lowest rate, 3 percent, came in September and October 1999. More than 1,000 people in the Green Bay area joined the unemployed in March, according to the latest report from the state Department of Workforce Development.
Fond du Lac unemployment third highest in state
For the fourth month in a row, the Fond du Lac metro area has one of the highest unemployment rates in the state. The local rate for March was 10.4 percent, up from 9.2 percent in February, according to the Department of Workforce Development. Fond du Lac ranked only behind Janesville, 13.5 percent, and Racine, 10.7 percent. At the same time last year, unemployment was 5 percent in the Fond du Lac metro area. The city of Fond du Lac posted a 12.6 percent unemployment rate, up from 11 percent in February and 5.8 percent a year ago.
Wausau's jobless rate tops 12%; Great Dane brew pub to hire about 120
Unemployment in March topped 12 percent for the city of Wausau and 9 percent for Marathon County, intensifying concern over job loss and bringing the severity of the recession closer to that of the 1980s. The numbers, released Wednesday by the Wisconsin Department of Workforce Development, showed an estimated 12.1 percent of Wausau's work force looking for jobs, compared with 10.9 percent in February. Unemployment in Marathon County reached 9.4 percent. That's up from February's rate of 8.7 percent, which already was the highest the county has seen since 1987
Hospital lays off 23 employees
Saint Joseph 's Hospital issued layoff notices to 23 employees Wednesday as part of an effort to reduce its parent company Ministry Health Care's total annual expenses by $12 million. Employees affected are in support positions not directly connected to patient care, said Dr. Michael Kryda, chief executive officer of Saint Joseph's. Sixty of the 12,000 employees throughout Ministry's system were given layoff notices, Kryda said, as the company tries to restructure to meet current needs in an unstable economy.
Johnson Controls posts $193 million first quarter loss
The struggling U.S. auto industry is hurting Glendale-based Johnson Controls Inc. The company today reported a loss of $193 million, or 33 cents per diluted share, for the second quarter of the 2009 fiscal year, down from a profit of $289 million, or 48 cents per diluted share, for the second quarter of 2008. The company had net sales of $6.3 billion for the second quarter of 2009, down from $9.4 billion of sales for the second quarter of 2008. The second quarter 2009 results include restructuring charges of $230 million ($185 million net of tax), $81 million in non-recurring tax benefits and a $7 million tax benefit resulting from the increase in the first quarter effective tax rate from 24 percent to 31 percent. Excluding these items, the loss in the quarter was 16 cents per diluted share, the company said.
Chrysler told to prepare filing
The Treasury Department is directing Chrysler to prepare a Chapter 11 bankruptcy filing as soon as next week, people with direct knowledge of the talks said Thursday. The company faces a deadline of April 30 to come up with a viable business plan supported by its cr editors, the United Auto Workers union and Fiat, the Italian car company that wants to acquire a stake in Chrysler billion The Obama administration has told Chrysler it would provide up to $6 billion in loans it has already given the in new financing, on top of the $4 company, if Chrysler could complete a deal by next Thursday with a cost structure that gives it a chance of survival. The cr editors have, so far, balked at the terms suggested by the Treasury Department.
'Stress test' methodology could roil bank industry
Regulators trying to stabilize the financial system could unwittingly roil it when they explain their methods Friday for stress-testing the largest banks. Officials will privately begin telling the largest 19 financial institutions how they performed. But investors will be scrutinizing the test methodology for clues about which banks are in trouble. The results won't be publicly released until May 4.The slow-motion rollout is intended to blunt market reaction to the news of which banks are healthy, which ones could fail if the recession worsens and which need more money to survive.
Development News for the week 4/11/09-4/17/09
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UW economist says underground economy thriving
While the overall economy is struggling, the underground economy is surging, based on research by a University of Wisconsin-Madison economist. Reported income in the United States has likely ballooned to as much as $2.25 trillion, creating a ratio of unreported income to reported adjusted gross income that is approaching the peak levels of the World War II era, the university said Monday. That is creating for the federal government an unpaid tax liability of more than $600 billion, the university said.
SOUTH MADISON LIBRARY BACKERS HOPE ECONOMY WON'T STIFLE FUNDRAISING
Nellieyah Ngai gives the South Madison Branch library a lot of credit for the poised young woman she has become. "It's done wonders for me," said Ngai, who recalled seeking refuge there from a chaotic home life while growing up nearby. The library was a "safe place" where she discovered books and supportive adults. Such safe public places for children "are more lacking in this neighborhood than any other," Ngai said last week at a meeting on the planned new branch library on South Park Street that she and civic leaders hope will be a vibrant hub of activity in a hardscrabble neighborhood that has served as an entry point for generations of new residents.
DEMOLITION OF HISTORIC HOSPITAL CHALLENGED A DEVELOPER SAYS THE $541,000 EXPENSE - AND THE BUILDING - CAN BE SAVED BY LETTING HIM REHAB IT AT NO COST TO THE STATE.
A run-down but historic hospital building on the Mendota Mental Health Institute campus finds itself in a familiar tug-of-war between preservation and the wrecking ball. The state is about to spend $541,000 to tear down the old Wisconsin Memorial Hospital, built in 1922 and listed on the National Register of Historic Places. State officials say the building, empty and deteriorating for 15 years, is a firetrap, but housing developer Gary Gorman says he can rehabilitate it at no cost to the state, then lease it to Catholic Charities of Madison as a home for Hope Haven-Rebos United, which provides drug and alcohol treatment.
BOARDWALKS AND PARK PLACE
Imagine a two-acre park built on fill with a marina and a Frank Lloyd Wright-designed boathouse on Lake Monona. There's a boardwalk from James Madison Park to UW-Madison's Memorial Union and another marina on Lake Mendota. And a new warehouse district offers space for entrepreneurs and up-and-coming companies near the Kohl Center.
HEADING FOR HOME HISTORIC RATES AND A BOOST FROM GOVERNMENT ARE HELPING FIRST-TIME BUYERS SEEK A NEW BASE
To Don Olsen, a recent UW-Madison graduate who will start at UW's Law School in the fall, it makes more sense to buy a house than rent for three more years. And because of the new $8,000 federal tax credit for first-time home buyers, good only on purchases in 2009, it makes the most sense to buy now, he said. "It definitely was an incentive to go ahead and take the risk at this time," said Olsen, 23, originally of Union Grove. "The stars aligned for me right now." Olsen plans to close later this month on a two-story, four-bedroom "fixer-upper" on Madison's South Side where he will live with three roommates to help him pay the mortgage
Dane County home sales continue to rise
Home sales in Dane County continued to see an increase last month from February, although the total sold and average sales price still trailed those measures from a year ago. The South Central Wisconsin MLS on Thursday reported 320 home and condominium sales in Dane County in March, up from 207 sales in February and 142 in January. There were 403 sales in March 2008, and 921 from January through March 2008 compared with 684 this year during that period. The average sale price in Dane County last month was $214,049, the listing service found, compared with $243,368 in March a year ago. The average sale price through March of this year was $226,245, compared with $244,832 through March 2008.
Dane County home sales down in March
Home sales in Dane County were down 20 percent in March compared to March 2008, according to sales figures released Thursday by South Central Wisconsin MLS. Sales data show 320 homes and condos were sold in Dane County in March, compared to 403 sold last year and 552 in March 2007. For the first quarter of 2009, 684 homes were sold in Dane County, a 25 percent drop from the 921 homes sold the first three months of 2008 and 45 percent below the January-March sales of 1,244 homes in 2007. The average sale price of a Dane County home in March dropped more than $29,000, or 12 percent, from $243,368 to $214,049.The median sale price also fell in March, going down $13,500, or 6.4 percent, from $210,000 to $196,500. The number of new listings in Dane County dropped 28 percent in March compared to March 2008, with 1,072 new listings in the month compared to 1,495 new listings a year ago.
TIPS FOR NEW BUYERS
So you've got the federal tax credit. That's up to $8,000 you didn't have to come up with. But that's only the beginning. Housing experts say the following things are key to getting a loan and affording a house over time. Housing experts say the following things are key to getting a loan and affording a house over time. CREDIT SCORES - That's the big driver behind mortgage loan approval. The floor used to be 620, but the minimum score for many loan programs these days is 680. To get the best terms, typically a borrower needs 740 or higher. SAVINGS - It's the key to making home ownership work. Once a home owner, you become responsible for the maintenance the landlord or property manager used to do. It's never too late to start a rainy-day fund. Try to save the difference between your current rent payment and a mortgage payment (say $1,000 minimum). Ask yourself how that feels. Did I have to pinch? Was it OK?
HEADING FOR A HOME
As real estate agents are seeing a surge in first-time home purchases, in part because of the new $8,000 federal tax credit for first-time home buyers. As these lower-priced, first-time sales are completed, a positive "trickle-up" trend is expected to occur as sellers move up to the next level of house, resulting in the potential for a broader boost to the housing market.
ABOUT THE TAX CREDIT
In 2009, qualifying taxpayers who buy their first home before Dec. 1 can claim the credit on either their 2008 or 2009 tax returns. They do not have to repay the credit, provided the home remains their main home for 36 months after the purchase date. They can claim 10 percent of the purchase price, up to $8,000, or $4,000 for married individuals filing separately. The amount of the credit begins to phase out for taxpayers whose adjusted gross income is more than $75,000, or $150,000 for joint filers. The maximum credit is $8,000, and the credit is claimed using Form 5405.
Wisconsin Realtors Association campaign to push awareness of tax credit for first-time home buyers
The Wisconsin Realtors Association will spend at least $126,000 on a statewide campaign starting Friday to educate people about this year’s federal tax credit for first-time home buyers. The campaign, to last through the end of October, aims to get more people into homes using a media blitz of ads and social networking tools, including an interactive Web site at www.wisconsinhomebuyer.org and content designed to be shared on Facebook and Twitter.
Its goal is to highlight facts about the credit of up to $8,000 and to connect eligible buyers with agents and sellers.
BY THE NUMBERS
A national survey of potential first-time home buyers done by Century 21 Real Estate Corp. in early March showed concerns about the economy but most respondents were eager to buy. The survey found: 78% said now is a good time to buy. 85% consider current home prices affordable. 73% said taking advantage of lower prices was a major reason to buy now. 56% were open to buying a foreclosed home. 63% would buy a fixer-upper. 77% were more likely to buy in the next six months because of the $8,000 tax credit. 72% considered current mortgage rates affordable. 75% believed it was more difficult to get a home loan now. 59% rated their understanding of the home buying process as only "fair" or "poor." The survey covered 1,000 people and had a 3.1 percent margin of error.
CLASSES FOR HOME OWNERS
The Dane County Housing Authority offers free classes for home owners and prospective buyers. The pre-purchase course is a six-hour class offered over two consecutive Tuesdays from 6 to 9 p.m., several times a year. Topics include becoming mortgage-ready through budgeting and credit, working with real estate agents, home owners' insurance and home inspections. Practitioners in lending, real estate, insurance, home inspection and not-for-profit agencies will present sessions and answer questions. To register, call 608-224-3636, ext. 20.
Madison Dairy to close; 120 to be laid off
Land O’Lakes Inc. announced Wednesday it plans to lay off 120 employees and close Madison Dairy, 1002 E. Washington Ave., a butter manufacturing plant, within 60 days.Land O’Lakes officials said the plant no longer is economically feasible to operate. Employees were notified of the closure Wednesday. The volume of butter produced in Madison will be absorbed by other Land O’Lakes plants around the country, said corporate communications director Jeanne Forbis, adding that the company does not make public the production volumes of its plants.
New State Bank to break ground
Groundbreaking is planned for Wednesday, April 22, at 9 a.m., for the new Waukesha State Bank at E. Racine Ave. and Highway 164 with an anticipated opening during the fall of this year. Scheduled to attend the groundbreaking is Waukesha County Executive Dan Vrakas, City of Waukesha Mayor Larry Nelson, and Waukesha County Chamber of Commerce President Patti Wallner. Attending from the Bank will be Ty R. Taylor, president and CEO; Dan Shepard, executive vice president; Devon Arnold, vice president and manager of retail banking; and Marynell Costa, vice president and manager of operations.
Around the State and Points Elsewhere
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Wisconsin's unemployment rate hits 27-year high of 9.4%
Recession-watchers have to look back to 1982 to find unemployment rates higher than those released Thursday. Wisconsin's unemployment topped out at 10.9% that year. It's official: This recession is the worst in a generation in Wisconsin. The state's unemployment rate rose to 9.4% in March, the Department of Workforce Development reported Thursday. March unemployment skipped past February's 8.8%, and surpassed the national rate for the first time since June 2007. The U.S. unemployment rate was 9% in March. Wisconsin lost a total of 8,700 non-farm jobs last month and has shed more than 112,000 jobs since March 2008. Recession-watchers have to look back to 1982 to find unemployment rates higher than those released Thursday. Wisconsin's unemployment topped out at 10.9% that year.
Cutting dealerships key to reducing GM and Chrysler's costs
Car dealers -- sponsors of Little League, fixtures of Main Street, vibrant symbols of the American entrepreneurial dream -- could now prove to be the biggest threat to the future of the very industry they built. For much of the last century, in exchange for selling Detroit's new models and providing a public face to distant industrial giants, dealers were richly rewarded with a steady, lucrative business and received community respect. Now, with the industry in crisis, it's clear that there are too many outlets for the two most desperate carmakers, General Motors Corp. and Chrysler, economists and industry analysts agree.
Lake Delton back in business
Ten months after the water rushed out of Lake Delton, the Wisconsin Dells area attraction is back in business. Passengers on the Wisconsin Original Ducks tours splashed into the lake Thursday. They're among the first to enjoy the restored 264-acre lake. The popular amphibious tours were among tourism businesses affected when a series of storms caused the lake to swell June 9, causing a breach that drained the water in less than three hours and washed away five homes and part of a highway.
Downtown Milwaukee buildings could be Des Moines model
The Des Moines Register recently reported on plans by a developer to convert the former downtown Younkers department store building into retail space and apartments.
Developer Michael Alexander might want to consider downtown Milwaukee's Boston Store building, or the former Marshall Field's building. They're not quite the same projects, but there are similarities--including the use of historic preservation tax credits to help finance the work.
Rehab projects compete for tax credits
In another week or so, the Wisconsin Housing & Economic Development Authority will announce which projects will receive the latest batch of affordable housing tax credits. The agency allocates the credits in a competitive process. Developers use the credits to help finance apartments that they must rent at below-market rents to moderate-income people. Several projects in the Milwaukee area are seeking credits. Some of the more interesting proposals involve renovating older buildings into apartments.
Associated earnings fall 47%; dividend cut to 5 cents
Associated Banc-Corp reported Thursday that profits fell almost 47% in the first quarter and that it is cutting its dividend by 27 cents. The Green Bay-based parent company of Associated Bank said net income million, or 52 cents, declined to $35.4 million, or 28 cents a share, from $66.5 in first quarter 2008. The bank more than quadrupled its quarterly allocation to reserves for potential loan losses, adding $105.4 million. In the first quarter of 2008 the bank added $23 million to its loan-loss reserves. Paul S. Beideman, chairman and chief executive, said the decision to cut the dividend to 5 cents from 32 cents was difficult, but "it is in the best long-term interests of our shareholders to preserve capital during this time of unprecedented economic uncertainty and market volatility."
Go green, save green
Zero is the latest buzzword for green building - as in houses that generate as much power as they use. Although going green often is seen as more expensive than conventional construction, some homebuilders are trying to change that. Zero is the latest buzzword for green building - as in houses that generate as much power as they use. Although going green often is seen as more expensive than conventional construction, some homebuilders are trying to change that. Instead of granite countertops and fancy playrooms, the homes have solar panels and heat pumps. Tom and Verona Chambers of Black River Falls recently moved into a new home that includes solar panels on the roof, a ground source heat pump and a gizmo that reuses shower water to preheat water coming in from the city.
Pabst shows signs of life
At a time when many large real estate projects are bottoming out, the reinvention of downtown Milwaukee's Pabst brewery remains on tap. The former brewery's first redeveloped commercial building just welcomed its largest tenant and is mostly full. Two other buildings, including one leased to Cardinal Stritch University, are being renovated into commercial space. The former keg house, remodeled into 95 apartments, is filling up with renters. The main parking structure for the 21-acre complex, now known as The Brewery, will be completed by fall. Meanwhile, negotiations continue for other proposed uses, including the University of Wisconsin-Milwaukee's School of Public Health and a Hofbrauhaus brew pub and restaurant.
Condos go up, step by step
Condos under construction at Garden Prairie condominiums, on Racine Ave. west of Highway 164 in Waukesha, feature a garden plot for each unit (visible through window). Ten units have been built or are under construction, but work won’t begin on the last four until late spring. Developers of suburban condos held at least one advantage over their counterparts in downtown Milwaukee when the housing bubble burst. It's a lot easier to delay building in the burbs, where condominiums are typically developed within relatively small buildings, than in a downtown high-rise or other large, multistory project. So, while Milwaukee's suburbs have empty condos waiting for buyers, developers there have been able to hold off on building additional units - while waiting for demand to pick up. "Why try to push a product when there's so much uncertainty out there?" asked Jeff Scrima, a condo broker who operates Canterbury Realty LLC.
Attorney general wants legal custodian appointed for Conserve School
Wisconsin Attorney General J.B. Van Hollen has asked that a retired state Supreme Court justice be appointed custodian for the entity that runs an environmentally focused North Woods boarding school embroiled in a lawsuit over plans to change how the school operates. The request comes as part of a motion by the state to intervene in the lawsuit pending in Vilas County Circuit Court in which parents of students at Conserve School in Land O'Lakes are trying to keep it a four-year high school. Plans call for converting the school in 2010 to one in which juniors from other schools would spend one semester.
State bankruptcy filings up 35% through March
Bankruptcy filings in Wisconsin soared 35% in the first quarter of the year, as mounting job losses, reduced working hours and the weak economy took a toll on consumers. Among those declaring themselves insolvent were an increasing number of people in their 50s who lost a job or suffered a big household pay cut, and workers whose commissions have dried up, attorneys who handle bankruptcy cases say. With unemployment rising, they foresee no let-up to bankruptcy filings for the rest of year. Robert Waud, a bankruptcy attorney with Schober & Radtke, said job cuts have made it impossible for more people to keep up with their financial obligations.
Brookfield development faces delay
Citing the ailing economy and tight credit markets, the developers of Percheron Square, a major mixed-use project between I-94 and Blue Mound Road, have been given more time to start construction. City officials have granted an extension until Oct. 21 for AVS Development Inc. to file engineering, landscaping and site plans on the project, which will include office, retail, condos, senior housing and an extended-stay hotel.
City of Oconomowoc considers taking reins on Pabst Farms fire station
Pabst Farms developers have asked the city to take over construction of a fire station intended to serve the 1,500-acre residential and commercial complex. The development group still is willing to pay $2 million for the fire station, as required by the 2006 settlement of a lawsuit over Aurora Health Care's hospital under construction at Pabst Farms. But city officials are weighing the benefits of taking control of the project, along with the drawbacks of investing more staff time in it.
Farmland is disappearing in Waukesha County, and statewide
The farmers who are left in Waukesha County say they are adjusting to being surrounded by subdivisions, shopping centers and industrial parks, but there is no question the complexion of the county has changed and is likely to continue changing. Millions of business, lost more Waukesha County , where crops and livestock are a $45 than 10% of its farms from 2002 to 2007, according to the latest U.S. Department of Agriculture census of farming. The farmers who are left in the county say they are adjusting to being surrounded by subdivisions, shopping centers and industrial parks, but there is no question the complexion of the county has changed and is likely to continue changing.
Mayfair Mall operator files for bankruptcy
General Growth Properties Inc., which operates Mayfair Mall, filed for Chapter 11 bankruptcy protection early Thursday after it failed to persuade a majority of its debt holders to give it more time to refinance billions of dollars in debt racked up during the housing boom.
Statewrap: A Wisconsin news sampler
In Eau Claire, the Redevelopment Authority is trying to work with developers to resolve the stalled North Barstow project. The Leader Telegram has the story. The Green Bay Press Gazette says Mayor Jim Schmitt was optimistic - but realistic - in his "state of the city" address.
Briggs & Stratton reports 35% drop in profits
With lawn and garden equipment sales down, Briggs & Stratton Corp. Thursday said its third-quarter profit fell 35% to $25.4 million, or 51 cents per share, and it was cutting its dividend in half to 11 cents per share.
State headlines: Louisiana's perks lure manufacturer away from Sheboygan
Gardner Denver Inc. announced Monday that it will close its Thomas Products manufacturing division in Sheboygan, where the company employs 366 people, and move the operation to Monroe, La. "This is a huge win for Monroe and our entire state," said Louisiana Gov. Bobby Jindal at a press conference. "Gardner Denver's expansion shows that Monroe and all of Louisiana can compete with any other state in the country." As part of its relocation package, the State of Louisiana will reimburse Gardner Denver for most of its moving costs and provide annual payroll and sales tax rebates, along with employee recruitment and training assistance.
Prevailing-wages mandate could thwart volunteers-driven projects
Volunteers would find it nearly impossible to help build playgrounds or improve school athletic facilities if lawmakers require that workers on some publicly financed construction projects be paid prevailing union wages, opponents of the proposal say. "No civic projects will ever get done since you would have to pay volunteers for a municipal project that costs more than $2,000," Port Washington City Administrator Mark Grams wrote in a recent memo to aldermen. "That's INSANE!" "However unreasonable it may sound, that may be the outcome," said Dan Thompson, executive director of the Wisconsin League of Municipalities.
Fed economists say mortgage changes may not stem foreclosures
Policies aimed at easing home-loan terms for troubled borrowers may not be as effective in preventing foreclosures as more-direct aid to homeowners, Federal Reserve economists found. Job losses and falling home prices have a bigger impact on delinquencies than mortgage terms, and modifications aren’t necessarily a better deal for investors than foreclosures, according to a paper by two current and one former economist at the Boston Fed Bank and one Atlanta Fed researcher .
Company hopes to create 500 green jobs
President Barack Obama and Gov. Jim Doyle have said they want green jobs, and they want them now. A young Wisconsin company wants to answer the call and create hundreds of sustainable green jobs in Janesville. In fact, the partners in RecyGrow have a handshake agreement to lease a building in Janesville that could employ up to 500 people in its first year. "We're ready to get to work," said Dave Farb, the start-up company's strategic officer. "The potential for this company and technology is huge." RecyGrow would use green technologies to grow plant life from processed recycled materials. In Janesville, it would grow sod and other groundcover plants indoors on racks under grow lights.
10% Mexican tariffs hurt Appleton Papers
As if the crippled economy weren't enough of a challenge, the folks at Appleton Papers in Wisconsin now have to cope with a price disadvantage in trying to sell their carbonless paper in Mexico. That’s because the Mexican government has imposed a 10 percent tariff on carbonless paper, one of 90 U.S. exports being taxed at a rate of 10 percent to 20 percent and as high as 45 percent in one case. Mexico admits the tariff is in retaliation for Congress' termination of a program that allowed Mexican truckers to ferry goods across the border and deep into the United States.
With earnings down, Harley to cut more jobs
In its second job loss announcement since January, Harley-Davidson Inc. ( HOG) said Thursday that it's cutting up to 400 more positions, including up to 80 at its Milwaukee-area factories. The company reported a 37% drop in first-quarter profit and said it would eliminate an additional 300 to 400 manufacturing jobs over the next 21 months. Net income fell to $117.3 million, or 50 cents a share, from $187.6 million, or 79 cents, in the year-ago period. Revenue declined to $1.29 billion from $1.31 billion. Harley's worldwide motorcycle sales declined 12%, and U.S. retail sales declined nearly 10% from last year's first quarter. "While we are mildly encouraged by the fact that the U.S. retail sales rate declined less in the first quarter than in the prior two quarters, we remain cautious and continue to expect 2009 to be an extremely challenging business environment," said Jim Ziemer, president and chief executive officer.
CREDITORS MAY BUY OLSEN'S MILL, DISMISSAL OF BANKRUPTCY PETITION CLEARS THE WAY FOR $18.2 MILLION DEAL.
Creditors of Olsen's Mill, a Berlin-based grain supplier with a dozen Wisconsin locations, are poised to buy the company for $18.2 million after a flurry of court activity this week, including dismissal of a last-minute bankruptcy petition. RM Wisconsin, a company controlled by several creditors, was the winning bidder after an eight-hour auction on Tuesday. PRM Wisconsin has said it plans to retain all current Olsen's Mill employees.
Development News for the week 4/4/09-4/10/09
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Metro Innovation Center provides incubator for University of Wisconsin-Madison entrepreneurs
A landmark Near East Side factory building has come back to life as a high-tech business incubator aimed at brewing the big ideas of University of Wisconsin-Madison students and faculty. A landmark Near East Side factory building has come back to life as a high-tech business incubator aimed at brewing the big ideas of University of Wisconsin-Madison students and faculty. The Metro Innovation Center is open for business — a sleek set of 10 suites equipped with the latest voice and data technology as well as two conference rooms and a small kitchen.
Business Beat: Urban digs for University Research Park
Madison has long dreamed of a leafy " Central Park" in the blighted industrial corridor between East Washington Avenue and Williamson Street. Ambitious plans there have included water features, gardens, market space and walking paths. While the concept has been generally well received -- who's against turning a train yard into a parkway? -- hassles with the railroad, tight budgets and other priorities at City Hall have the project on a slow track.
Garver Arts Incubator referendum wins in landslide
Madison voters declared a resounding "yes" Tuesday in support of the proposed Garver Arts Incubator project, a plan to redevelop the crumbling, century-old former Garver Feed Mill at Olbrich Botanical Gardens. The final tally was 30,260, or nearly 77 percent of votes, in favor of the city conveying the property to Common Wealth Development for the project, and 9,045, about 23 percent of votes, against it, according to the Dane County Clerk's Office website. The project garnered the most support in its east-side neighborhood, where more than 90 percent of voters backed it in a 1,026-111 tally. But support was strong in wards throughout the city.
ECONOMIC FORUM TO FOCUS ON RECESSION
A City Council meeting this week on the global recession's effect on Madison's economy could be a "reality check" for its members, council President Tim Bruer said. Bruer said he organized Wednesday's "economic forum" to help city leaders understand how bad things are likely to be so they can begin mapping out a strategy to boost a lagging local economy and maintain city services despite a slowdown in tax revenues.
Some think Badger Bus plan to close West Wash depot is shortsighted
By most accounts, the proposed redevelopment of the Badger Bus depot on West Washington Avenue into a mixed-use retail and luxury apartment site is a relatively modest project, maxing out at five stories along one of the city's most prominent corridors. But it's what the development will replace -- a downtown transit hub that has been in place for decades -- that is generating controversy and sparking discussion about the future of downtown transportation in Madison.
A FLOOD OF COMPLAINTS MANY OREGON RESIDENTS BLAME STORM WATER RUNOFF FROM THE HILLY BERGAMONT DEVELOPMENT FOR THE FLOOD PROBLEMS.
The situation is a reflection of just how difficult storm water can be to regulate, according to experts. The quality of storm water ordinances and their enforcement is uneven in Wisconsin because regulation is mostly left up to local communities, said Ken Potter, a civil engineer with UW-Madison who is an expert on storm water management. And many people, including some planners and builders, underestimate the flooding problems that can result when developments with their expanses of pavement alter the land's natural ability to soak up water from rain and snow.
DANE COUNTY SEEKS BIDS FOR COW POWER PROJECT
You better get a mooove on if you want to bid on constructing Dane County's $18 million cow waste conversion machines. Dane County issued requests for proposals Monday for a community manure digester facility that would be built in Waunakee.
Two Wisconsin Tilt-Up Projects Earn Awards
Construction Company, Madison, WI, has earned achievement awards from the Tilt-Up Concrete Association (TCA) for two buildings the company constructed using site-cast tilt-up concrete panels. The TCA is a nonprofit organization serving the tilt-up construction industry. This year, the judges recognized 44 projects from more than 100 entries. One of Newcomb's honored projects was the University of Wisconsin Medical Foundation's 200,000-square-foot office building in Madison.
Dean Health System to lay off 90
Dean Health System, one of three high-profile integrated health operations headquartered in Madison, will eliminate 90 of its 4,500 positions immediately, officials announced Wednesday. The company runs dozens of area clinics and health-related entities, a health insurance company and a foundation. Also announced was a Dean Health System board decision to suspend the company’s matching contributions to employees’ 401(k) savings plan, beginning May 1. An earlier decision froze compensation for physicians and executives "for the foreseeable future
AnchorBank to close three branches, eliminate 19 jobs
AnchorBank of Madison, which lost $167.3 million during the last quarter of 2008 and whose parent company owes $116.3 million to US Bank, will eliminate 19 positions and close three branch offices on Aug. 31, including one in Madison, as part of an effort to reduce costs. The offices closing are at 2000 Atwood Ave. in Madison; 3 Neenah Center in Neenah; and 1492 W. South Park Ave. in Oshkosh.
Verona's Latitude Corp. may lay off up to 113
Latitude Corp. of Verona may lay off up to 113 employees in June depending on customer forecasts, the company has announced. The company, which started in a garage in 1990, does metal fabrication, stamping, assembly, machining and welding at a 130,000-square-foot plant at 1003 American Way. In a letter to employees, local officials and the state Department of Workforce Development, the company said layoffs could begin June 5.
Around the State and Points Elsewhere
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Park East plan gets review Monday
A proposal to build over 350 apartments, including some for moderate-income renters, on a 2-acre lot in downtown's Park East area will be reviewed by a County Board committee Monday. Fair Market Development LLC, owned by Harry Drea of Madison and Robert Schultz of West Linn, Ore., was the only development firm to respond to Milwaukee County's request for proposals for the county-owned lot, which is bordered by N. Broadway, E. Ogden Ave. and N. Water, N. Milwaukee and E. Lyon streets.
Plans tabled over drive-up's spot
After heated debate over whether the location was the right place for a drive-through, the city of Brookfield's Plan Commission on April 6 voted to table a proposal for a new CVS Pharmacy to occupy the soon-to-be-vacant V. Richard's grocery store on Bluemound Road. CVS plans included renovations to the main entrance of the retail space and the construction of a drive-through window on the west side of the building that would be large enough to accommodate three cars. But Plan Commissioners said they were worried about the effect the drive-through window would have on internal traffic in the rest of the V. Richard's Plaza site.
Pick 'n Save details plans for proposed Metro Market
Members of Brookfield's Plan Commission on April 6 saw a proposal from Roundy's Supermarkets to transform the Pick 'n Save grocery store on Bluemound Road to a Metro Market, an upscale, specialty grocer that focuses on fresh, ready-to-eat food. Roundy's would add 10,000 square feet of space and a drive-through pharmacy window at the store, as well as raze a 15,000-square-foot freestanding retail building on the property to make room for more parking. Members of the Plan Commission said they were generally supportive of the proposal but tabled a vote on approval until later this month to give the developer time to tweak the architecture of the store.
Vacant warehouse at new brew pub eyed for development
An abandoned warehouse next to the just-opened St. Francis Brewery and Restaurant may soon be converted into a $3 million retail development called Lakeside Village Square. City officials and the Community Development Authority are reviewing cost estimates and tax revenue projections to determine how much the development might receive in tax-incremental financing. The proposed warehouse conversion near the northwest corner of Kinnickinnic and Howard avenues would be the second phase of development for the site. The first-phase brew pub opened this week.
Study finds millions in waste within MPS
Milwaukee Public Schools could save as much as $103 million a year if it operated like a well-run business, according to a much-anticipated report that has Gov. Jim Doyle and Milwaukee Mayor Tom Barrett taking steps that could lead to a takeover of the system. The report, released Thursday, concludes that MPS does not have a culture aimed at achieving good results, and is in tenuous financial shape that will worsen without systemic changes. The report mostly sidesteps the academic side of MPS, concentrating instead on business operations, from busing to lunch programs to purchasing practices to health insurance policies. It found waste in every area - inefficient payroll processing, overqualified maintenance teams, even pencil sharpeners that cost more than $100. The report also found more than five dozen central office jobs with six-figure salaries.
Real Estate: Burlington plans downtown redevelopment
City of Burlington officials plan to acquire several downtown properties to assemble sites for a proposed redevelopment project that will include a hotel, a 45,000-square-foot mixed-use building and a parking structure. The city plans to acquire seven properties along North Dodge Street between East Washington Street and East Chestnut Street. Burlington Co-Op occupies the block to the east of Dodge Street. Most of the properties on the eastern half of the block to the west of Dodge Street are vacant.
WillowTree Development to purchase Delphi site in Oak Creek
Milwaukee-based WillowTree Development LLC plans to purchase the former Delphi property in Oak Creek, according to Milwaukee commercial real estate industry sources. WillowTree principal Michael DeMichele could not be reached for comment. WillowTree was part of a partnership that sold a former Delphi parcel to Janesville-based Woodman's Food Markets Inc. for the grocery store on Howell Avenue in Oak Creek. WillowTree has also built other retail development, or sold lots to other developers, on former Delphi property on Howell Avenue. "They've been pretty active with those sites," said Oak Creek director of community development Doug Seymour.
UWM engineering college action delayed
A proposal to sell county-owned land to University of Wisconsin-Milwaukee for a new engineering campus will not come before a County Board committee until May. The proposal to sell the tract, which is on the Milwaukee County Grounds, east of U.S. Highway 45 and north of Watertown Plank Road, was to come before the board's Committee on Economic and Community Development on Monday. But the committee's agenda doesn't include that item. Instead, it will likely be scheduled for the May 11 meeting. Next week is a traditional spring break and vacation period, which was a factor in the delay.
Former Prospect Mall could become apartments
The former Prospect Mall on Milwaukee's east side would be converted into apartments targeted to workers at a nearby hospital, under a tentative plan from a Chicago-based housing developer. The 42,000-square-foot building, 2217-2239 N. Prospect Ave., which has been vacant since 2006, could be remodeled into around 100 apartments and street-level retail space, said Lisa Kuklinski, director of public affairs for Mercy Housing Lakefront. The apartments would be aimed at employees of the nearby Columbia St. Mary's Hospital Milwaukee campus, which is being expanded. Kuklinski said Mercy Housing, a nonprofit developer, could form a partnership with Columbia St. Mary's to do the project.
Carpenter wants to stop I-94 expansion
State Sen. Tim Carpenter (D-Milwaukee) said Tuesday he will try to pass a law that would prevent the Department of Transportation from expanding I-94 in Milwaukee, Racine and Kenosha counties. "Reconstruction of the freeway is needed; expansion is not," Carpenter said in a press release. The department has begun preliminary work on widening I-94 from six to eight lanes from southern Milwaukee County to the Illinois border. The total project will cost about $1.9 billion, with about $200 million of that going toward the lane expansions. Carpenter said the $200 million could be more wisely spent to create jobs. The project is funded primarily with state and federal gas taxes.
Federal-Mogul lays off 103 in Manitowoc
A Federal-Mogul official says it has laid off 103 workers at its Manitowoc plant that makes piston rings for heavy-duty diesel engines. Federal-Mogul spokeswoman Paula Silver says its business has been hurt by the economy and problems in the auto industry. The company previously said it would cut shifts at the plant from three to two. The Manitowoc plant employed 580 people in January. Federal-Mogul Corp. ( FDML) is based in Southfield, Mich. It announced in December it would cut 4,600 jobs, or 10% of its work force, in response to weak demand for cars and trucks.
MMAC economic survey indicates housing market could be stabilizing
Economic weakness continues in southeastern Wisconsin, with only three of 20 business activity indicators monitored by the Metropolitan Milwaukee Association of Commerce (MMAC) registering improvement in February from year-ago levels. "Not much has changed between January and February, with local indicators showing limited prospects for near-term improvement," said Bret Mayborne, economic research director for the MMAC. "Yet the door to improvement could be cracking open a bit with perhaps early signs that housing and real estate indicators are turning the corner. Significantly smaller decreases have been posted in mortgage activity in recent months and declines in existing homes sales continue, but at rates below its longer term trend."
663,000 WORKERS LOST THEIR JOBS LAST MONTH
The nation's unemployment rate jumped to 8.5 percent in March, the highest since late 1983, as a wide swath of employers eliminated 663,000 jobs. It's fresh evidence of the toll the recession has inflicted on America's workers, and economists say there's no relief in sight. If part-time and discouraged workers are factored in, the unemployment rate would have been 15.6 percent in March, the highest on records dating to 1994, according to Labor Department data released Friday.
Harken puts new factory on hold
The global recession has blown some head winds into Harken Yacht Equipment Inc., million manufacturing facility in which has put on hold its plans for a new $8 the city of Pewaukee. Harken Yacht will wait for the economy to revive before it begins building the 100,000-square-foot building on 28 acres along Highway JJ, north of I-94 and east of Highway 16, said Peter Harken, co-chairman. The company, which makes sail-handling accessories for racing yachts and other boats, is now in a 60,000-square-foot building at 1251 E. Wisconsin Ave. in the village of Pewaukee.
Manitowoc Cranes to cut 159 jobs
Manitowoc Cranes eliminated 159 jobs, or about 13% of its work force in Manitowoc and Port Washington, on Monday, according to a statement from the Manitowoc Co. The company, one of northeast Wisconsin's largest employers, said it must reduce its work force to reflect the lower demand for its products. "These cuts are an unfortunate necessity in the reality of the current economic crisis," Dennis Rooney, vice president of human resources, said in the statement. Before the announcement Monday afternoon, the company's stock closed at $4.09 a share, up 1 cent. It is down 91% from its 52-week high of $45.47.
International Paper to close Cedarburg plant
International Paper Co. said Friday it will permanently close its Cedarburg corrugated container plant in June, resulting in the loss of 114 jobs. "The economic recession, coupled with the addition of box plants in this region with our acquisition of Weyerhaeuser's packaging business has left us with more capacity than our customers need," Kate Egeland, plant general manager, said in a statement. "A driving factor in the decision to close Cedarburg is that the other locations are much closer to a majority of the customers we serve," according to Egeland. The company will discuss plans for severance and other benefits with the local union, Production and Chemical Workers Local 30.
Lab work turns green
When it embarked on the laboratory addition and renovation, Waukesha Memorial Hospital had twin missions: build something large enough so lab services could be consolidated into one centralized area and do it in an environmentally friendly way. Waukesha Memorial Hospital needed more room for its lab services, the place where tests are run on blood, other body fluid samples and tissue specimens to help determine what ails people.
Rising foreclosure rate blamed on job losses
With job losses mounting in Wisconsin during the first quarter, foreclosure filings in the state shot up 29%. There were 7,497 new foreclosure actions started in the state from January through March, up from 5,817 during the same period a year earlier, according to the University of Wisconsin Extension. An increase in foreclosures in Milwaukee County for the quarter mirrored the statewide jump. Analysts thought foreclosures might be leveling off in the state's most populous county at the end of last year, but a big increase in filings in March alone - 685 compared with 489 in February - showed the tenacious effects of the recession.
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