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Development News for the week 4/24/2010-4/30/2010

In Allied Drive's renewal, home ownership is the goal

Quarnalla Smith's family shuddered when she rented a new, city-built townhouse in the heart of once-notorious Allied Drive. Now, six months later, Smith, a single mother of three, is comfortable in Allied and hopes to soon buy one of the houses that will be part of the next phase of private redevelopment in the area. "Every mother's dream is to own her own home," she said, hoping to qualify for some type of rent-to-own program. Smith's aspiration, and those of neighbors, underscore a challenge for the city as it tries to create the first single-family homes on Allied Drive and support buyer opportunities for current residents. "We want people to move into home ownership," said Florenzo Cribbs, president of the Allied-Dunn's Marsh Neighborhood Association. The city's first phase of rental units, where Smith lives, filled quickly and now have a long waiting list, the mix of apartments and townhouses serving as a cornerstone for the improving neighborhood. As the city prepares to introduce home ownership in the second phase of development on 8.8 grassy, tree-dotted acres to the south, residents want to make sure homes are affordable and accessible, and are pushing for innovations, such as homes that could double as a place to earn a livelihood by hosting a barbershop or other small business.

Appeal of Plan Commission's Edgewater decision may go forward now

First, a quick recap: About four weeks ago, Edgewater opponents filed an appeal of the Plan Commission's March 22 decision to grant the controversial hotel plan a conditional use permit for waterfront development. Days later, assistant city attorney Kitty Noonan declared the appeal invalid, saying that there were not the required number of signatures. The appeal needed 20 percent of property owners notified by the Planning Division about the proposed development to sign on, and Noonan determined the opponents only have six valid signatures of the 31 property owners, or less than 20 percent. (For those of you who are new to town.

Madison's Emerson elementary will get a new library, courtesy of Target Corp. and a nonprofit

Emerson Elementary School found out Wednesday that it's one of 32 schools in the nation that will receive a library makeover this summer, courtesy of Target Corp. and The Heart of America Foundation, a national literacy nonprofit. At the announcement at the East Side school, Target employees in red shirts and khakis mingled with about 15 to 20 third-graders in the cramped library. The long, narrow room has few computers, and the only spots for students to sit and read are four bean bag chairs. "It's an exciting day for Emerson," said Karen Kepler, principal of the East Side school. "It will make (our library) look like a library, not a closet of books."

Will voters accept slow pace of action on city projects?

By average, I mean those who see themselves as strongly invested in the city, appreciate its many attributes, are generally aware of local public affairs, but do not live in the local blogosphere or know the insider acronyms of city government. The question is timely because Mayor Dave Cieslewicz was supposed to deliver his annual state of the city speech to the Downtown Rotary last week. The event was postponed by his late return from a European trip due to flights disrupted by an Icelandic volcano. His office says the speech is now set for June 16. That might work out OK, since the way things are going, any prepared remarks might still be apropos. That’s because the issues most dominating city hall headlines don’t seem to go away.

Does a big grocery store kill new urbanism?

When Veridian Homes was pitching its Grandview Commons "new urbanism" development to potential buyers, it vowed something new and different. But some who bought into the environmentally friendly concept now feel they were sold a bill of goods because of plans for a big-box Copps Food Center grocery store where smaller mom-and-pop stores were once envisioned. And they had a chance to vent before the Madison Plan Commission Monday night during an information hearing on the proposed grocery. "When visiting Grandview Commons, Veridian romanced me with literature hailing the development of a Town Center," says resident Barbara Davis. "But ecologically or socially this does not strike a balance." Veridian -- which has won national awards for its development based on traditional neighborhood concepts of narrow streets, small lots and mixed uses -- has been working for 10 years to find retail tenants for a "Town Center" in the middle of the development.

No reprieve for Warner Park geese yet

After seeing a few blog posts Monday and Tuesday morning that the increasingly controversial plan to round up and euthanize up to 100 geese at Warner Park had been called off in favor of possibly oiling goose eggs (which suffocates the embryos and prevents the population from growing), I made a few calls to figure out what was going on. I spoke with Dane County Regional Airport spokeswoman Jennifer Miller, and she confirmed that the round-up plans were still on and that the 100 geese will be collected in June, when the birds are molting and unable to fly. Over the past week and change since I first covered the story, a Facebook group (more here) has exploded with more than 1,000 people opposing the goose kill for various reasons, including questions about the lack of public input on the plan and whether non-lethal methods (such as habitat modification and dog harassment) could be as effective at reducing the Warner Park goose population.

Madison energy drink company amps up campaign for Flatt Cola

The small orange, black and white can touts world domination. For now, Madison entrepreneurs Dave Kruse and Paul Pucci would be happy just adding a few more convenience stores to sell the energy drink they’ve created and dubbed Flatt Cola. The UW-Madison business school graduates are also trying to attract more investors to their fledgling company so they can increase the marketing campaign that includes “Everyday World Domination,” and purchase more cans for another batch of the high-octane drink. Each 8.4-ounce can of Flatt Cola has 59 milligrams of caffeine and tastes like a non-carbonated cola. By comparison, Mountain Dew soda has 36 milligrams per eight-ounce serving. A one-can serving of Flatt Cola also has 110 calories, 17 milligrams of sodium, 28 grams of carbohydrates and 28 grams of sugar.

Funding shortage jeopardizes bike lanes on Old Sauk project

Thirty years ago, Old Sauk Road was a relatively quiet two-lane farm road, crossing U.S. 12 at grade on its way from Madison into the glacially sculpted hills west of the city. Today, Old Sauk commands a major exit off the Beltline, providing access to the strip malls, fast food restaurants, condos and office parks. At rush hour, the area often becomes a traffic-clogged problem spot. Old Sauk Road also serves as a main commuter route for residents in the sprawling subdivisions of rural Dane County. And scores of bicyclists use the road too, especially on weekends, including athletes training for the Ironman Wisconsin triathlon. But now Old Sauk is in need of a major reconstruction and the town of Middleton is scrambling to come up with the money to include bike lanes on the 1.5-mile section it controls from Pioneer Road to Timber Lane. Town officials would like to add paved shoulders to make life easier for both motorists and bicyclists. Adding the bike lanes would require widening the road, however, adding anywhere from $500,000 to $900,000 to the cost of the estimated $2 million project.

Custom condos for the perfect fit - Spring Condo Preview

Quick survey: What's the biggest advantage now to buying a condominium? Freedom from lawn maintenance? Convenient location? Fewer upkeep chores? Think more about choice of cabinetry, flooring and countertops. Today, many new condominium developments offer custom options that enable an owner to call the shots and make it a home of their own. "We're the kind of folks that know what we want and what we need and aren't shy about saying how can you help us," said Claire Merkt, who with her partner, Mary Gernetzke, bought a custom condominium at Prairie Condominiums in Waunakee four years ago. "We enjoyed the fact that they allowed and encouraged us to pick everything from the drywall in." These options will be among the highlights during this year's Fourth Annual Spring Condo Preview. The free event, which runs Saturday through May 9, features more than 20 condominium developments around Dane County (see the event website for a list of featured properties). Locations of condos in this year's event range from urban, such as Monroe Commons in Madison, to small-town waterfront properties that could be considered vacation homes, like Eagle Island View in Prairie du Sac.

Centurion pedals ahead

A major new cycling event is coming to Dane County, organizers announced Monday, and it will start and end in Middleton. North America Sports, the creator of the worlds largest triathlon series and the team that brought the Ironman triathlon to Wisconsin, announced the launch of Centurion Wisconsin, which will take place Sunday, Aug. 8. Government officials from the region joined with organizers and sponsors at Middleton Municipal Airport/Morey Field on Airport Road – the location of the race’s start and finish lines. “Our mission is really to get people out moving and living a healthier lifestyle,” said Graham Fraser, Centurion Cycling CEO, pictured above. Centurion will feature 25-, 50- and 100-mile races and include an estimated 3,000 riders.

Firefly Coffeehouse to double in size, increase menu and staff

Erika and Mike Weidler bought the Firefly Coffeehouse in the fall of 2006 and have been slowly growing the business in response to customer requests and their own creative impulses. Now, the popular cafe is about to experience a growth spurt. Two years ago, the Weidlers purchased the building at 114 N. Main St., and they’re planning to double the size of the operation by expanding into the half that used to house Weaver Auto Parts. That will give the couple a total of about 5,000 square feet in which to realize their vision for “Oregon’s living room.” “This is what we want to do. It is a huge commitment,” admitted Mike Weidler last week during an interview in the 2,500-square-foot space that’s under renovation. “We just have to keep growing to the next level of being more than just a basic coffeeshop. Coffee will still be our main focus, but we’ll add a number of food items.” 

Around the State and Points Elsewhere
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Madison's first low-cost airline to begin service on Monday

Frontier is the first low-cost carrier to enter the Madison market. Travelers heading west will have one more option beginning Monday when Frontier Airlines returns to the Madison market. The first flight is scheduled to arrive at Dane County Regional Airport from Denver at 6:15 p.m. The first departure, to Denver, is scheduled for 6:50 p.m. "It brings a level of competition to the marketplace and conceivably makes it more economically feasible for travelers to the West," said airport director Brad Livingston. Frontier is the first low-cost carrier to enter the Madison market. "That's a big deal to getting people out West faster and at a lower cost," Dane County Executive Kathleen Falk said. Unlike the major carriers, low-cost carriers generally operate under a business model that uses a single passenger class of service, fewer in-flight services and lower wages and benefits for employees. Flights on the Madison-Denver route will use 99-seat Embraer 190 jet aircraft, with two-by-two leather seating.

Dane County to begin buying compressed natural gas vehicles

Filling up the tank with biodiesel or ethanol is so last decade. In a new effort to cut fuel costs and protect the environment, Dane County plans to begin buying vehicles that use compressed natural gas (CNG). With a $250,000 federal grant, part of $15 million awarded to Wisconsin for clean transportation projects, the county is building a CNG fueling station at its parks department offices on Robertson Road for eight vehicles it plans to purchase with another $240,000 in federal and county funds. The new vehicles are each expected to save $1,500 annually on fuel costs. The county expects to pay the equivalent of 85 cents per gallon of gasoline for the vehicles, down from the $2.30 per gallon it currently pays. The county is also exploring whether it can save more money by converting natural gas from the landfill into CNG fuel. The goal is to convert to CNG as many of the county's 500 vehicles as possible, though its unclear which vehicles can be converted at this time, said Dave Merritt, an aide to County Executive Kathleen Falk. In the United States, CNG vehicles are gaining popularity in California, but because the fuel is stored in larger tanks and CNG stations aren't located on every street corner, they haven't caught on among private consumers in the Midwest.

Doyle signs mental health insurance law

Gov. Jim Doyle has signed into law a proposal that makes changes to insurance coverage for the mentally ill and drug addicts. The new law he signed Thursday doesn't mandate coverage, but all group health plans that offer such coverage would have to provide it at what's known as parity. Essentially, coverage for mental illness and substance abuse couldn't be more restrictive or expensive than the plan's medical and surgical coverage. Employers that provide health coverage for workers could choose not to follow the parity standards if their costs exceed certain levels. Employers with fewer than 10 eligible employees also could choose not to abide by the standards. Doyle says he was proud to sign the bill.

Law firm moving from W. Wisconsin Ave. to 3rd Ward

Simpson & Deardorff, a law firm specializing in civil litigation, is moving from an office building at 735 W. Wisconsin Ave. to the Historic Third Ward. The firm is leasing 6,700 square feet from Niolyn LLC, a local investment group that owns an office condominium unit at 311 E. Chicago St. The lease was brokered by Tyler Hawley, of HawleyStrigenz Development Corp., and Matt Hunter, of C.B. Richard Ellis Inc. The Chicago St. building and two neighboring buildings, at 172 N. Broadway and 153 N. Milwaukee St., once housed Beck Carton Corp. until it moved in 2007 to Franklin Business Park. The buildings were then converted into offices and retail space, and they now house such businesses as Boulder Venture Inc., Schroeder & Holt Architects, Weas Development and La Macchia Group. The Broadway and Chicago St. buildings total 93,000 square feet, and have 20,000 square feet available for sale or lease, Hawley said. The 36,000-square-foot Milwaukee St. building has 6,000 square feet available, he said.

Federal programs red tape discourages use of foreclosure aid

Heather Franz has just lived through a homeowner’s worst nightmare. A year ago while visiting California where her mother lay dying, Franz got word over the phone she’d lost her job back in Wisconsin as a senior kitchen designer. Facing unemployment in a tight job market, Franz knew she’d have trouble making the monthly mortgage payments on the $240,000 Lodi area home she shares with her husband, Jeff, a UPS delivery driver, and his four school-age children. So Franz called CitiMortgage, told them of her situation, and asked for help through one of the government programs created to help struggling homeowners caught in the recession. But Franz quickly discovered it wasn’t easy. She spent hours on the telephone just trying to find someone who could answer questions. There were misplaced forms, endless delays and conflicting stories from talking to different loan servicing agents. “I was trying to be proactive by getting ahead of the situation, but honestly, I never knew if I was on the phone with someone from India or not,” says Franz, 39.

Forecasters optimistic about economy, job creation

Economists are more optimistic about prospects for growth this year as industries increasingly report better profits and add new jobs, though they still expect the recovery to remain slow, a new survey shows. Seventy percent of those recently surveyed by The National Association for Business Economics believe real GDP will grow by more than 2 percent this year, up from 61 percent who said the same in January. Twenty-four percent are predicting real GDP will grow by more than 3 percent in 2010, up from 14 percent earlier this year. "Industry demand moved higher compared to results in the January 2010 report, pointing to stronger growth in 2010," said William Strauss, a senior economist at the Federal Reserve Bank of Chicago. "After more than two years of job losses, job creation increased in the first quarter of 2010, suggesting a better outlook for hiring over the next six months." The NABE forecast, set to be released Monday, shows fewer jobs are being shed, more are being created and more companies are making money. The findings echoed results issued by Conference Board last week for its index of leading economic indicators. The figure jumped 1.4 percent in March, suggesting economic growth is likely to continue for the next three to six months. The growth was at its fastest pace in 10 months. Government data also showed that employers in March added 162,000 jobs, the most in three years.

Judge favors family in dispute with DNR over Marinette County cabin

Gerald Wied said he left a Marinette County courtroom only partially satisfied with the news his family would not need to bulldoze its lakefront cabin near Crivitz. Despite occupying the land on Lake Noquebay for decades, the family has battled over its ownership with the state Department of Natural Resources, which discovered that a portion was not part of the original purchase. In a decision Friday, a Marinette County judge undid a ruling in July in which the DNR successfully argued it owned the land and the 4-acre parcel should be restored to its natural state. In 2003, a survey revealed the Wied family cabin rested 500 feet onto public property. "When you get into a five-year court battle, there aren't many winners," Wied said of the new ruling, which split the property into three sections. "It was a partial victory, though, since we were awarded our land that we've been on since 1965." The family says it has used the land for hunting since it was originally purchased in 1965, but did not build the current cabin until 1985. By law, under a principle known as "adverse possession," if a private party remains unchallenged on a parcel of land, it retains ownership after a set time period.

Battle over proposed Brown County wind farms continues

"Our purpose is to give our towns a voice," said Steve Deslauriers, who lives in the town of Holland. He also is a member of the Brown County Citizens for Responsible Wind Energy, a volunteer group fighting the proposed widespread installation of turbines in the towns of Morrison, Wrightstown, Glenmore and Holland. Kevin Parzyck is the development manager for the Ledge Wind Energy Project, a 100-wind turbine farm proposed by Chicago-based Invenergy. He said the company isn't remaining idle as it waits for Wisconsin's Public Service Commission's decision on guidelines over where wind turbines can be located and what kind of impact they can have on residents and property.             

Milwaukee library proposal calls for fewer but large libraries, mixed uses

More than half of Milwaukee's city libraries would be dramatically reshaped by a 10-year, $18.1 million plan to merge some neighborhood libraries into regional centers and move others into buildings shared with housing, stores or hotels. Struggling with increasingly tight operating budgets, Milwaukee Public Library officials are trying to avoid rising maintenance costs by replacing aging facilities with a new array of libraries more in tune with a digital world. But they will have to overcome skepticism from residents and some aldermen, who cherish the network of 13 libraries, spaced no more than three miles apart. The Library Board is proposing to replace some of its 12 neighborhood libraries with two or three larger area libraries; three mixed-use facilities that would combine neighborhood libraries with housing or other uses; and two or three miniature "express libraries" in supermarkets, coffee shops or other high-traffic spots, leaving three to five traditional neighborhood libraries. The plan wouldn't affect the Central Library downtown. If Mayor Tom Barrett and the Common Council agree during the 2011 budget process this fall, the change would start on the northwest side, where the Mill Road and Capitol libraries would be replaced by a single, larger new building, and on the east side, where developers have suggested housing or hotels to share space with the East Library. Work is under way to move the northwest side's Villard Ave. Library into a new building with multigenerational housing.

Feds order Amcore Bank, six other Illinois banks closed

The U.S. Office of the Comptroller of the Currency ordered Rockford, Ill.-based Amcore Bank closed on Friday night. Amcore Bank had at least 12 branches in Wisconsin. The bank’s branches reopened Saturday as branches of Chicago’s Harris Bank. “The FDIC's effort to help bring greater stability to the industry is something we are pleased to support,” said Bill Downe, president and CEO of BMO Financial Group, the corporate parent of Harris Bank. “This is a perfect strategic fit that accelerates our growth strategy and reinforces our already strong position in the U.S. Midwest. The addition of this franchise – quality locations and a valuable customer base – supports our current market share and expands Harris' branch network into communities in northern Illinois and southern Wisconsin, including Madison and Rockford, where we already have a strong and growing commercial banking presence.”  Harris’ acquisition of Amcore Bank included the assumption of approximately $2.1 billion in deposits, about $2.5 billion in assets (including roughly $2 billion in loans), and about $2.4 billion in trust, investment and brokerage assets. All loans are covered by an 80/20 loss share agreement with the FDIC covering 80 percent of potential loan losses. Northbrook Bank & Trust Company and Wheaton Bank & Trust Company, which are owned by Wintrust Financial Corp., the Lake Forest, Ill.-based parent company of Town Bank in Wisconsin, acquired two of the other Illinois banks that were closed Friday.

State headlines: Student housing, retail development planned for downtown Menomonie

An Eau Claire developer wants to build a 250-bed upscale student housing project with retail space in downtown Menomonie. The project would consist of two, four-story buildings .

State headlines: Office building, parking ramp proposed for downtown La Crosse

The La Crosse Common Council will vote tonight on a combined $28 million in proposed public and private development on the south end of downtown La Crosse. Two years after the doors opened on his second downtown office building, developer Don Weber is exercising his option to construct a third.

Crossroads office building, in Brookfield, sells for $1.2 million

A 20,000-square-foot office building at Crossroads Corporate Center, in the Town of Brookfield, has been sold for $1.2 million. Told Development Co. sold the building, 21075 W. Swenson Drive, to Janesville-based Mid-America Bank, in a transaction brokered by Jeno Cataldo, Tim Brunow and Stephanie Krolikowski, all of NAI MLG Commercial. Mid-America will move a loan production office to Crossroads, which is south of I-94 and east of Highway 18, from 17035 W. Wisconsin Ave., Brookfield, Cataldo said. The loan office will use 8,000 square feet, and Mid-America is leasing out the remaining space. The building, by the way, is the last one at Crossroads that was owned by Told, the business park's developer, Cataldo said.

Educators Credit Union, North End apartments among design award winners

Educators Credit Union's new branch on Prospect Ave. and ONE at the North End apartments are among the Milwaukee projects recognized in this year's annual awards from AIA Wisconsin, the state society of the American Institute of Architects. My colleague Mary Louise Schumacher has the details at her Art City blog.

Nutritional supplements maker enjoys healthy growth

A Jefferson County company that makes nutritional supplements has started construction on a 12,000-square-foot addition to its Palmyra headquarters. Standard Process Inc. says the project will add more processing capacity to its 260,000-square-foot operation. The expansion is to be completed by October 31. Once completed, Standard Process expects to add one to two new jobs to its current payroll of 283 employees. Excel Engineering Inc., of Fond du Lac, designed the addition.  Kotze Construction Co., of Milwaukee, is the builder. 

Former Charter Wire building in 3rd Ward still on sale block

Yes, Summerfest is buying a building that once housed part of Charter Wire, and will demolish it to make room for more parking. But Larry Garland wants people--especially real estate investors--to know that the main building once used by Charter Wire in the Historic Third Ward is still for sale. Garland should know. He owns the 140,000-square-foot building, and its 4.25-acre lot, at 607-627 E. Polk St. The property is listed with Roger Siegel, of C.B. Richard Ellis Inc. The confusion arose when the Journal Sentinel reported last week that Milwaukee World Festival Inc., which operates Summerfest, had agreed to buy a former Charter building at 100 N. Marshall St. That building is owned by the Glass family. The newspaper reported the Marshall St. building once housed part of Charter Wire. But Garland has been hearing from people who think he sold the main building. Charter Wire moved from the Third Ward to a new facility in the Menomonee Valley Industrial Center last year.

Milwaukee Forge bidder seeks MEDC loan to buy real estate

An investment group, led by Milwaukee Forge CEO and President David Mesick, is seeking a loan from a city-affiliated agency to help finance its bid to buy the company's real estate and other assets. DM Acquisitions LLC wants a $750,000 loan from Milwaukee Economic Development Corp. to help finance a pending bid, according to MEDC's agenda published Tuesday. The agency's Loan and Finance Committee meets at 2 p.m. Tuesday to consider the request. Milwaukee Forge is in receivership, a state legal proceeding similar to bankruptcy protection. An auction of its assets is scheduled for 10 a.m. Wednesday at the Milwaukee Athletic Club. Milwaukee Forge's assets include an 8.24-acre site, with 124,150 square feet of industrial and office space, at 1532 E. Oklahoma Ave., in the Bay View neighborhood; a parking lot across the street, and "various business assets related to the operation of the forging operation," according to MEDC's agenda. Mesick and the other investors will continue to operate the business "and hopefully offer jobs to all of its 106 employees," the MEDC agenda says. The document also says the new owners are expecting to add 40 full-time jobs within two years.

For-profit school expands into Milwaukee with Honey Creek lease

Strayer University, a for-profit vocational school operated by Strayer Education Inc., is expanding into Milwaukee -- the latest in a series of for-profit schools opening facilities in the area. Strayer has agreed to lease 14,922 square feet of office space at Honey Creek Corporate Center, a business park on Milwaukee's far west side. Strayer will be located at the Honey Creek IV building, at 9000 W. Chester Ave.  Lyle Landowski and Steve Pape, both of Inland Cos., brokered the deal. This will be the first Wisconsin campus for Arlington, Va.-based Strayer, which has more than 54,000 students at 78 campuses, mostly in the Southeast and mid-Atlantic states. Inland also announced that Corinthian Colleges Inc. has signed its lease of 45,000 square feet of office space at 1311 N. 6th St. Landowski, Mike Fardy and Scott Welsh were the Inland brokers, and with Kurt Van Dyke, of Cassidy Turley Barry. Corinthian's plans to open an Everest College campus in downtown Milwaukee, just a few blocks from Milwaukee Area Technical College, led to objections from college faculty, Ald. Milele Coggs, whose district includes the Everest site, and others. Opponents said Corinthian is a "diploma mill," preying on poor students. They cited lawsuits filed by students who claim they were misled about whether their credits would transfer to other schools, the accreditation status of their school, or their ability to find work after graduating.

New Berlin office building sells for $2.5 million

A 36,772-square-foot office building at 2520 S. 170th St., New Berlin, has been sold for $2.5 million. The building, located in New Berlin Industrial Park, was sold by Percom Investment Co., of Genesee Depot, to Taylor Mills Enterprises LLC, of Kenosha. It is occupied by NCO Group, a collections agency. The sale was brokered by Tom Shepherd and Mike Fardy, of Inland Cos., representing the seller, and Steve Mills, of Bear Realty Inc., of Kenosha, representing the buyer.  

Grafton Water Street Brewery expects late summer opening

Construction started recently on a Water Street Brewery in Grafton, with the brew pub expected to open by late summer, owner R.C. Schmidt said. The 8,000-square-foot building is east of I-43 and south of Highway 60, near the Hampton Inn & Suites. The Grafton brew pub will be the third location for Water Street Brewery, which has operations in downtown Milwaukee and in Delafield. It also will be second brew pub for Grafton, where the Milwaukee Ale House opened a location in 2008, at 1208 13th Ave.

Rockwell Automation profit soars

At Rockwell, the recovery has arrived. The Milwaukee maker of factory automation systems said Wednesday its fiscal second-quarter profit more than tripled from a year earlier. The Milwaukee maker of factory automation systems said Wednesday its fiscal second-quarter profit more than tripled from a year earlier. Net income rose to $137 million, or 95 cents a share, from $40.6 million, or 29 cents, a year ago. "It appears an industrial recovery has taken hold," Keith D. Nosbusch, the company's chairman and CEO told analysts on a conference call. Recent results include income from income from Rockwell's discontinued Power Systems business of $25.1 million, or 18 cents a share. Excluding those results, Rockwell earnings were $111.9 million, or 77 cents a share. Revenue for the three months ended March 31 climbed 10% to $1.16 billion. The financial results beat expectations. Analysts polled by Thomson Reuters were expecting per-share earnings of 52 cents a share on sales of $1.1 billion. In line with its improved earnings, Rockwell raised its 2010 forecast, and now projects earnings of $2.60 to $2.90 a share on revenue of $4.65 billion to $4.8 billion. The company had expected earnings of $2 to $2.40 a share and revenue of $4.4 billion to $4.6 billion. Rockwell shares touched a 52-week high of $63.90 before closing down 10 cents at $61.17. Almost 2.34 billion shares traded, a billion more than the six-month average.

Associated Banc-Corp expects to break even this year, CEO says

Associated Banc-Corp. has begun to make headway in dealing with its bad loans, and it hopes to break even financially by the end of the year, the company's top executive said Wednesday. "We've made big strides to start - and I emphasize start - resolving our credit problems, although a lot of work remains," Philip B. Flynn, president and chief executive, told about 300 people gathered at St. Norbert College for Associated's annual shareholders meeting. The Green Bay parent company of Associated Bank, the second-largest bank based in Wisconsin, lost $161.2 million in 2009 as construction, commercial real estate and other types of loans deteriorated in the weak economy. Flynn was brought in by Associated in December from a top role at California's Union Bank to succeed Paul Beideman, who the company said was retiring after six years as CEO. Flynn told the audience the bank had become "very inwardly focused over this past couple of years" and that had hurt relationships with customers. "We have a lot of work to do as well in restoring the faith of customers," Flynn said. "To those customers who are here today - and I'm sure some of our shareholders are our customers - I want to apologize for that, and I want you to know that we pledge to once again become focused on meeting your needs in the future." Flynn said Associated's goal financially is "to try to break even for this year."

Manitowoc says sales are down, but worst may be over

Sales of Manitowoc Co. construction cranes remain down in North America and Europe, but the worst of the global recession may be over, company officials said Wednesday in a conference call with analysts. There are pockets of strengthening demand for cranes, especially in China and other developing nations. On Tuesday, the company reported first-quarter sales of nearly $722 million, down 30% from $1 billion in the first quarter of 2009. The decrease was attributed mostly to a 45.5% decline in the crane business, with flat sales in the food-service equipment business. Cranes are Manitowoc's largest business. The last 18 months were the worst in that segment's history, according to the company. But there were signs of improvement in some crane markets, and order backlogs continue to grow. "Our strategy has not changed. We continue to focus on positioning this business for growth as we emerge from this downturn," said Glen Tellock, company chairman and chief executive officer.

Development News for the week 4/17/2010-4/23/2010
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East Wash: Poised for a right turn?

Six years ago, local developer Gary Gorman proposed a 10-story building with a contemporary, glass-dominated design for the 800 block of East Washington Avenue, currently home to the Don Miller Budget Outlet, a car dealership. The tower was part of a whole-block redevelopment called Avenue 800 and was to feature more than 300 condominium units, lush landscaping, a private street, a pedestrian walkway and about 15,000 square feet of retail space. It was hoped that the plan, along with the Union Corners project two miles down the street, would spark a wave of East Washington redevelopment from the Yahara River west up to the Capitol, an industrial stretch where change has been modest and piecemeal since the 1950s. Neither Avenue 800 nor Union Corners has happened, however, and by appearances, the corridor has lost more than it has gained during the national recession, with major businesses like Madison Dairy and the Don Miller Dodge dealership added to the long list of vacant properties over the past two years. Yet observers inside and outside government suggest that the prominent avenue — the six-lane gateway to the Capitol and downtown from the east — may need only the spark of a single lead project to become the next urban Madison hot spot.

Grandview Commons residents say Copp's undercuts promises that were made

Barbara Davis found what she thought was her dream home three years ago when she moved to Madison from St. Louis and bought a home in Grandview Commons, on the city's far east side. Now she worries that the addition of a large grocery store could turn that dream into a nightmare. "The area was built on the values of nostalgia — that's neat and romantic," Davis says of Grandview Commons, billed as an "all-inclusive living environment" in the New Urbanist tradition. "Super box stores didn't exist 20 years ago, and we don't want one here."  Developers have pitched a 62,000-square-foot Copps store (see "Neighbors critique plan for new Copps store at Grandview Commons") to help anchor a town center and attract other retail. In response, neighbors including Davis have formed "Grandview Commons Neighbors for Responsible Development," which seeks to reduce the scope of the project (see "Neighbors vow to fight Copps grocery store in Grandview Commons").  According to Davis, the proposed store is much larger than what was suggested when she and others first bought their homes: "The image presented to us was 25,000 square feet, similar to a Trader Joe's or a Brennan's."  Group members have taken aim at Veridian Homes, the neighborhood's developer. But David Simon, the company's president of operations, says Veridian never promised a grocery store at all: "I don't do grocery stores. What we know well is residential, and the realities of the marketplace now suggest they need a successful grocery store in that neighborhood."

New home sales jump from record low

Sales of new homes surged 27 percent last month, bouncing off the previous month's record low and blowing past expectations as government incentives and better weather boosted sales. The Commerce Department said Friday that new home sales rose in March to a seasonally adjusted annual sales pace of 411,000. It was the strongest month since last July and the biggest monthly increase in 47 years. Economists surveyed by Thomson Reuters had expected a sales pace of 330,000. February's results were revised upward to 324,000, but remained an all-time low. Sales had been especially weak over the winter, partly due to bad weather in much of the country. The median sales price was $214,000, up more than 4 percent from a year earlier but down more than 3 percent from February. The new home sales report reflects signed contracts to purchase homes rather than completed sales and thus gives economists a feel for how many buyers were out shopping for new homes in a given month. It is likely capturing consumers who are trying to qualify for federal tax credits that will expire at the end of this month. The government is offering an $8,000 credit for first-time buyers and $6,500 for current homeowners who buy and move into another property.

Proposed sewage-treatment rule comes with $1.3 billion price tag

Nobody wants weeds and algae choking Wisconsin's lakes. But are people willing to pay to clean up the widespread and sometimes dangerous problem? A proposal from the state Department of Natural Resources to toughen standards on phosphorus, a nutrient in fertilizers that causes weed growth in the state's waters, could result in an $85 million bill to the Madison Metropolitan Sewerage District (MMSD) for an upgrade of its treatment systems, according to district officials. That, they say, could add $40 to the average residential customer's annual bill. Statewide, according to DNR estimates, as many as 160 plants could be affected, and the total cost of improvements to treatment systems could run as high as $1.3 billion. "We think this will have the greatest impact on municipal treatment since the Clean Water Act," said Dave Taylor, director of special projects for MMSD. The federal Environmental Protection Agency is requiring all states to put the standards in place. The DNR has been holding hearings around the state on the phosphorus proposal. A final hearing is scheduled for Tuesday in Eau Claire. The plan could go to the state Natural Resources Board, which sets policy for the DNR, as early as June. Todd Ambs, director of the DNR's water programs said that, if approved, the standards could go into effect by the end of the year.  

Pick station with top ridership

Maximizing ridership should be the top criteria for where to locate a high-speed train station in Madison. Economic development, neighborhood concerns and sufficient parking and connections to buses and taxis are important.

But putting more butts in train seats is what will make or break the line. And a lot of riders will eventually be traveling not to and from Madison but right past it. The main goal of the train line is to link Chicago with the Twin Cities. So where should the Madison train station go? The state Department of Transportation is wisely studying the strengths and weaknesses of four possible stops: At the Dane County airport., at First Street and East Washington Avenue, at Monona Terrace, at the Kohl Center. Ideally, Madison would have two stops: one Downtown and one at the airport. That's what Milwaukee will have. But the DOT has indicated it wants only one stop here, no doubt to hold down costs and to keep the train moving once the leg to the Twin Cities is established. Remember, it's supposed to be a high-speed train. Gov. Jim Doyle seemed adamant that Madison's station should be at the airport when he first announced an $810 million federal stimulus grant to make the line happen. He cited ample parking, access to other forms of transportation and quick passage on to other destinations. Doyle now deserves credit for looking carefully before he leaps. The DOT appears to be gathering information with an open mind. Getting this train station in the right spot may well determine whether it succeeds. And there's a lot to say for locating the station Downtown where passengers could step off the train and walk to the Capitol, State Street, campus and the Kohl Center. City officials should avoid playing politics, trying to move the station into one favored neighborhood or another. Maximizing ridership along the entire rail line must be the biggest factor the DOT uses to determine where in Madison to yell: "All aboard!"

Choosing between city rail station sites could breed council tension

Madison city officials sent a clear message Tuesday night: They do not want a high-speed rail station at the Dane County Regional Airport when options closer to downtown are available. But, amidst all of the criticism of an airport station, the high-speed rail resolution the City Council passed Tuesday night foreshadows future tensions over choosing between the three other locations proposed by the state Department of Transportation. The resolution states the city's support for studying high-speed rail sites at the Monona Terrace Convention Center, the Kohl Center, and the proposed Yahara Station at First Street and East Washington Avenue over the airport because the more central sites have "high-quality access" to various varieties of bus service, bicycle and pedestrian traffic as well as the possibility of future commuter rail. But, take a closer look at it, and you can see where some tension may arise over which of the three may end up as the preferred site. The resolution calls for a station that is "centrally located" to the downtown, the state Capitol and University of Wisconsin, and that has "a strong potential to encourage and facilitate transit-oriented development and to serve as an anchor for our economic development efforts."

Council wants Downtown Amtrak site; Clear elected president

Clearly and strongly, the Madison City Council on Tuesday demanded a key role in selecting the location for a new Amtrak station and endorsed three Downtown sites — the Kohl Center, Monona Terrace, and a site at First Street and West Washington Avenue called Yahara Station — while strongly snubbing an airport site. “In the next 18 to 24 months, we’re going to have a station,” said Ald. Bridget Maniaci, 2nd District. “This is going to be the next big issue in the next weeks and months.” Also Tuesday, by an 11-8 vote, the council elected Ald. Mark Clear over Ald. Marsha Rummel as its new president. Clear, 19th District, who was elected to the council in 2007 and served as president pro tem the past two years, succeeds Ald. Tim Bruer, 14th District, who served an unprecedented two straight terms in the top post. The council unanimously elected Ald. Lauren Cnare, 2nd District, as the pro tem. On the rail station, city officials had believed that the facility could be located no closer to Downtown than Yahara Station, but Amtrak and federal Railroad Administration officials recently confirmed that the state Department of Transportation can locate the facility wherever it wants. Gov. Jim Doyle and state officials initially indicated support for the airport site, but are not endorsing any location before an internal review of all four sites is completed. A resolution approved Tuesday calls for a “truly” multimodal station that would serve Metro Transit, intercity bus service, autos, bicycles and pedestrians, plus support future opportunities for commuter rail or rapid bus transit. The council also asked staff to provide a report on financing options for improvements, economic development and impact on neighborhoods in 30 days.

Awe-inspiring Reading Room restoration debuts at state Historical Society

How does one restore a "sense of place" when there is little evidence of what the original looked like? Architectural detective work, attention to quality, brilliant - meaning both bright and intelligent - solutions and persistence were brought to the task of restoring the Library Reading Room at the Wisconsin Historical Society's campus headquarters. For the $2.9 million renovation and restoration project, the society received a room demure in tone, expansive in structure and inventive in meeting an odd challenge of in-with-the-really-old, out-with-the-old. These subjectives the public can test for itself in tours Friday and Saturday, but students and other researchers have already responded positively to the new room: The comfy brown leather reading chairs, the special soothing color tones, the lovingly restored column plaster curleys and cues and dangly bell flowers, the mahogany tables, the handy outlets for laptop computers and the inviting green-shaded lamps. "We had to restore the look and retain the functionality," said Peter Gottlieb, state archivist .

Bunbury realty firm acquires Heffron & Associates

Bunbury & Associates Realtors has acquired Heffron & Associates, a family-owned real estate firm based in Prairie du Sac. Bunbury President Erik Sjowall said the acquisition would provide for additional service in Sauk and Columbia counties, including the Lake Wisconsin area. Bunbury is headquartered in Madison and serves south-central Wisconsin, with offices in Fitchburg, Middleton, Baraboo/Wisconsin Dells, Sauk Prairie, Black Earth, Dodgeville, Edgerton and Downtown Madison.

Mallards' stadium renovation starts with Wrigley seats in VIP section

The Madison Mallards are bringing a little bit of Wrigley Field to Warner Park. The Northwoods League team is installing 228 original wooden seats from the Chicago Cubs' historic venue at the Duck Pond in its new TDS Triple Play Club, the first phase of a three-year renovation plan. The seats will be in place for Mallards' June 2 home opener. This vestige of the Friendly Confines will be installed in a section down the left-field line and are being billed as a VIP experience. Included with a ticket is all-inclusive food and non-alcoholic beverages, three alcoholic drinks and guaranteed giveaway items. Seats in the first row of the section already have been sold. Season tickets in rows 2 through 4 are $700, while nine-game packages are available for $175. All Mallards single-game seats go on sale May 8. The cost for a TDS Triple Play Club ticket will be announced at that time, the club said. "The TDS Triple Play Club will be the most significant ballpark addition in our history," Mallards president Vern Stenman said in a release. "This section is the first phase of a three-year major stadium renovation. "We would like to thank TDS for their continued support of the Mallards and we think are fans will enjoy this one-of-a-kind seating section." The team is constructing a full-service concession stand on the third-base side available to all fans, but with a private window for TDS Club Seat holders. 

Around the State and Points Elsewhere
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Mount Pleasant to build new village campus

Construction will begin this summer on $10.25 million a new village campus for the Village of Mount Pleasant in Racine County. The Mount Pleasant Village Board approved funding for the project recently and awarded the construction contract to Miron Construction Co. Inc. of Neenah. The project will include a new village hall and a new police station, and will ultimately more than triple the square footage of the two current buildings combined.
Construction is expected to be completed in the first quarter of 2011. The village sold the site of the current Village Hall, located at the northwest corner of Green Bay Road and Durand Avenue, to General Capital LLC, which will develop a Pick ‘n Save grocery store there.

Study says Concordia Pharmacy School will provide economic boost to region

In addition to helping to address a shortage of pharmacists in southeastern Wisconsin, the creation of the Concordia University School of Pharmacy will have a strong economic impact on the region, according to a new report. According to a white paper titled “Economic Impact of Concordia University School of Pharmacy,” the new school will create an estimated 101 jobs (direct and indirect), generating up to $8.1 million in additional worker earnings to the Milwaukee region and $956,000 in potential state and local tax revenue. The report was compiled for the university by Bret Mayborne, economic research director for the Metropolitan Milwaukee Association of Commerce (MMAC). The report estimates that 60 percent of the 400 students attending the School of Pharmacy will relocate to the region from out-of-state. Spending by the students would represent a net gain in spending into the state and region. Using data from a 2001 U.S. Bureau of Labor research summary on college student spending patterns, out-of-state students would be expected to spend a total of $2.1 million in non-educational expenditures over the course of an academic year. In addition, the construction of the school’s building also will provide a temporary boost to the region’s job market. Milwaukee ranks only 15th highest among 21 areas studied in the number of pharmacists per 100,000 population.

U.S. Bancorp booming with new loans

U.S. Bancorp today reported first quarter net income of $669 million, or 34 cents per share, up from $529 million, or 24 cents per share, in the same period a year ago. The Minneapolis-based company, which operates U.S. Bank in Wisconsin, continued to strengthen its allowance for credit losses in the first quarter of 2010 by recording $175 million of provision for credit losses in excess of net charge-offs, yet the firm remained profitable. The company reported strong new lending activity of $36.5 billion during the first quarter including, $6.6 billion of new commercial and commercial real estate commitments. U.S. Bancorp chairman, president and chief executive officer Richard Davis said, "Our first quarter earnings of $.34 per diluted common share were approximately 42 percent higher than the same quarter of 2009 and were driven by solid year-over-year growth in total net revenue, moderating credit costs and on-going operational efficiency. Total net revenue benefited from earning asset and deposit growth, as well as an expanded net interest margin, while higher fee revenue, notably in payments and corporate banking, reflected our on-going investments and business line growth initiatives

Startup firm plans new brick production plant in Waukesha County

An investment group is planning to develop a new concrete brick factory in Waukesha County, where it could begin producing bricks later this year. Frontier Brick LLC, a new startup company that will make the bricks, has been certified for $1 million in investor tax credits by the Wisconsin Department of Commerce. The company is working to raise about $6.3 million from investors, who will be able to receive a 25-percent tax credit on the amount they invest in the new company for the first $4 million raised. When the approximate 20,000-square-foot facility is fully operational, it will produce as many as 50 million bricks per year and employ about 15 workers, according to David Franke, a Milwaukee business developer with Venture Accelerator of Wisconsin, a Milwaukee-based firm that is assisting Frontier Brick raise capital and establish its operations. Frontier Brick was founded and is owned by to Milwaukee-area business executives who wish to remain anonymous now, Franke said. Franke declined to give the location where Frontier Brick hopes to build its facility. Traditional bricks are made from clay and are generally baked at temperatures between 900 and 1,000 degrees Fahrenheit. The bricks that Frontier Brick plans to make will not require any baking and will be able to set at air temperatures above freezing.“Our brick will be priced less than regular bricks,” Franke said. “There will be a special formulation (to the concrete). To a certain extent, it can be customized to color, size of brick and some of the technical features like absorbance rates.”

Groundbreaking next week for Whitewater biz incubator

A groundbreaking ceremony will be held on Tuesday, April 27, to celebrate the start of construction for the Innovation Center in the Whitewater University Technology Park. Whitewater University Technology Park is a 125-acre business park at 1231 Innovation Dr., Whitewater, on the city’s east side. The $5 million, 38,000-square-foot Innovation Center will be a business incubator, and it will be the first building in the business park. CESA 2, the state’s largest Cooperative Educational Service Agency, will become the first tenant of the Innovation Center when its 10-year lease begins in February 2011. Construction is expected to begin in May and be completed in January 2011. Janesville-based J.P. Cullen and Sons is the general contractor for the building, which was designed by Milwaukee-based Eppstein Uhen Architects. Whitewater University Technology Park is a joint project of UW-Whitewater, the City of Whitewater and the Whitewater Community Development Authority.

Walmart plans store expansion in Whitewater

The Walmart store in Whitewater is planning a 28,000-square-foot addition to convert it to a Walmart Supercenter. Construction is pending approval from the city, but the company will meet with residents at an open house Wednesday to solicit feedback about the project. The open house will be from 5 to 7 p.m. at City Hall, 312 W. Whitewater St. The expansion will add groceries. Nationally, Walmart has been upgrading its older stores to add groceries. Lisa Nelson, the company’s spokeswoman in Wisconsin, said there are no immediate plans to upgrade the discount stores in Madison, Sun Prairie or Stoughton.

New lakefront restaurant will be named the Harbor House

Entrepreneur and philanthropist Michael Cudahy and restaurateur Joe Bartolotta today they will open the Harbor House the restaurant at the lakefront site of the former Pieces of Eight restaurant in downtown Milwaukee in early July. “It looks like a beehive down there right now,” said Cudahy. “And, we are working hard to open our doors in early July.” The new restaurant will be located between the Milwaukee Art Museum and Discovery World. “You couldn’t find a better location,” Cudahy said. “Milwaukee is a great city and we deserve a great restaurant on the lake that people will be proud to frequent.” Bartolotta said the restaurant’s menu will have emphasis on fresh and ocean seafood and steaks. “There will be many options for diners, from appetizers and small plates to full-course meals at a variety of price-points,” Bartolotta said. “We want people to feel at home at Harbor House.” Architecturally, the new restaurant will have a traditional New England waterfront motif. Harbor House will seat about 260 people, making it one of Bartolotta’s largest restaurants.

Another downtown for-profit school--and it doesn't need zoning OK

At first glance, plans by yet another for-profit school to open a downtown Milwaukee campus appear to be a replay of the controversy involving Everest College. Everest College is a for-profit vocational school operated by Corinthian Colleges Inc., based in the Los Angeles area. Corinthian schools have been sued by students who claim they were misled about whether their credits would transfer to other schools, the accreditation status of their school, or their ability to find work after graduating. Corinthian officials said those lawsuits amount to a handful of complaints from the 100,000 students the company serves annually. Supporters said Everest provides opportunities for low-income Milwaukeeans to receive vocational training. When Everest applied for a special use zoning permit to operate at W. McKinley Ave. and N. 6th St., opponents argued the company had a pattern of preying on poor people. Faculty and students from the nearby Milwaukee Area Technical College called Everest a "diploma mill." The city Board of Zoning Appeals in February voted 4-0 to grant the permit. The board has granted similar permits for other for-profit schools operating downtown, including Kaplan University and Bryant & Stratton College.

Junior Achievement will build headquarters, kids business center at Park Place site

Junior Achievement of Wisconsin has agreed to buy five acres on W. Liberty Drive in the Liberty at Park Place development, and will build a new headquarters there. The 40,000-square-foot facility also will house the new JA BizTown and JA Finance Park programs, said Tim Greinert, group president. Those programs teach work readiness, financial literacy and entrepreneur skills to school-age children. Junior Achievement plans to begin construction this summer on the development, Greinert said Thursday. The group will have the new facility, north of W. Good Hope Road and east of Highway 45, open by spring 2011. The group's headquarters is now at 6924 N. Port Washington Road, Glendale. JA BizTown, for fourth- through sixth-graders, and JA Finance Park, for seventh through 10th grades - allow kids to role play real-life jobs and situations. Twenty-nine cities across the country have set up such Junior Achievement programs since the first one was launched in Indianapolis in 1994.Junior Achievement has secured 90% of its overall project funding target of $10.85 million, and expects to complete fundraising by December, Greinert said. The program got a big boost in January, when Kohl's Corp. provided a $3 million donation.In addition to Kohl's, other donors with replicas of their businesses in BizTown will include Northwestern Mutual Life, M&I Bank, Manpower, Heartland Advisors, Harley-Davidson and Pieper Electric.

Environmental concerns raised on UWM plan for County Grounds

University of Wisconsin-Milwaukee's proposal to develop a science research facility, technology-based business park and other buildings at the  Milwaukee County Grounds drew concerns at a public hearing this week. The hearing is part of the zoning approval process. The Wauwatosa Common Council will decide whether to approve the plan for the 89-acre parcel. The County Board last year approved plans to sell the land, east of U.S. Highway 45 and north of W. Watertown Plank Road, for $13.55 million to UWM Innovation Park LLC, an affiliate of the university's real estate foundation. "Lack of specific plans, the extent of proposed development and traffic congestion ranked as the most prevalent concerns" among those who spoke at the hearing, says an article in Wauwatosa Now.com, by Stefanie Scott. The university's plans include a wildlife habitat zone on the parcel. UWM plans to complete its land purchase by July 31 despite the loss of funding university officials had expected to receive for the project from retired business executive Michael Cudahy.

New Orleans redevelopment leader to speak Friday at UWM

A former official who helped lead redevelopment efforts in New Orleans after Hurricane Katrina will be giving a guest lecture Friday at University of Wisconsin-Milwaukee. "Planners as Leaders and Managers: Lessons from New Orleans," is the title of the address by Edward Blakely, honorary professor of urban policy at the United States Study Centre, University of Sydney. Blakely has over 40 years of international experience in urban and regional planning, disaster management, and sustainable development. In 2007, he was appointed by Mayor C. Ray Nagin to lead the recovery of New Orleans, a post which Blakely held until 2009. Blakely will speak at 7 p.m. Friday at Room 170 in the UWM School of Architecture and Urban Planning, 2131 E. Hartford Ave. This lecture is free and open to the public, with a reception to follow.

Columbia St. Mary's proposes clinic in Grafton

Columbia St. Mary’s plans to construct a 14,459-square-foot medical clinic in Grafton, on a 2.54-acre parcel north of Highway 60 and west of Cheyenne Ave. Columbia St. Mary's plans to begin construction in June, with completion by December, said Darrell Hofland,village administrator. The plans will be reviewed by the village Architectural Review Board on May 13, and the Plan Commission on May 25.

City gets cleanup grants for downtown, north side development sites

A downtown site overlooking the Milwaukee River, and two development sites on Milwaukee's north side, will have their environmental cleanups partly financed by federal grants. The Environmental Protection Agency is providing three $200,000 grants to pay for cleanup work at 1027 N. Edison St.; N. 30th St. and W. North Ave., and N. 21st St. and W. Garfield Ave., the Department of City Development announced Wednesday All three sites are owned by the city Redevelopment Authority, and will be marketed for redevelopment after the cleanup is done. The authority last year granted a purchase option for the Edison St. site to restrauteur Russ Davis, who's proposed a mixed-use building for the lot. Davis, whose businesses include the Red Accordion and Riverwalk Boat Tours, might develop a restaurant, offices or housing on the site. The site at 21st St. and Garfield Ave. would include homes that would be part of The Legacy development, which is building homes on vacant lots in the area. Possible future development at 30th and North Ave. includes light manufacturing and retail storefronts, according to the Department of City Development. Milwaukee has spent more than $20 million in local, state and federal funds to investigate and clean up polluted sites over the last 12 years, according to the department. That work has helped spur private investment in areas such as the Menomonee Valley Industrial Center. 

Process Displays building larger HQ in New Berlin

Process Displays Inc., which makes retail marketing displays, plans to move to a larger headquarters.The growing company, now based at 16333 W. Rogers Drive, New Berlin, will build a 136,000-square-foot headquarters at 5800 S. Moorland Road, about one mile south of I-43, said Bob Zanotti, Process Displays president.The new building will consolidate the company's operations, which are located in separate buildings in the New Berlin Industrial Park, Zanotti said. Process Displays has around 100 employees. The groundbreaking ceremony will be May 4, with the building to be completed by December, he said. 

Park East apartment project getting new developer

A long-delayed plan to build apartments in downtown's Park East area is undergoing a change in developers. St. Paul-based CommonBond Communities has agreed to buy a portion of the site, bordered by N. Milwaukee, N. Jefferson and E. Lyon streets and E. Ogden Ave., from an investment group led by Chicago developer Rich Curto. CommonBond plans to build a five-story building, with 87 apartments and street-level retail space, said Joe Schwenker, spokesman for the developer. Curto would own the retail space, totaling 11,000 square feet, Schwenker said. The project, called Park East Commons, would include 61 spaces of underground parking. The units would have one to three bedrooms, Schwenker said. The developer hopes to begin construction during the third quarter, and the apartments would take a year to complete. CommonBond is seeking federal affordable housing tax credits to help finance the project. In return for the credits, which are sold to raise equity financing, developers must lease apartments at below-market rents to people whose households earn no more than 60% of the area's median income. For a two-person household in Milwaukee  that maximum income is $32,520, with the limits increasing as the household size increases. The Wisconsin Housing and Economic Development Authority is to decide by June 18 whether Park East Commons will receive credits. The monthly rents would range from $420 to $920, Schwenker said.

Stalled Falls hotel project resuming work with $17.7 millon village loan

A long-stalled hotel development plan in Menomonee Falls will resume construction work within a few weeks, thanks to a $17.7 million loan from the village. The Village Board voted Monday night to sell bonds to finance the project. That amount, plus interest, will be repaid to the village by 2026 by Lodging Investors of Menomonee Falls LLC, an investment group formed by Madison-based Professional Hospitality LLC. The investment group plans to have a 135-room Radisson Hotel completed by Jan. 1 at W14776 Main St., just west of Highway 45. Professional Hospitality, which operates 16 hotels in Wisconsin, Minnesota and Colorado, is led by Dean Grosskopf, president. Board members voted 6-0 to approve the loan because Lodging Investors has been unable to obtain private financing to complete the project, said Village Manager Mark Fitzgerald. Without the village loan, the project would have remained uncompleted for years, he said. "That simply was not a viable alternative," Fitzgerald told me Tuesday morning, after the Community Development Authority approved a new development agreement among that agency, the Village Board and Lodging Investors. A long wait would have continued to leave an eyesore at the prominent development site, and would have continued to prevent a larger redevelopment plan for Main St., Fitzgerald said. The Radisson site is now occupied by the concrete shell of the former Falls Inn. That dilapidated building was largely demolished in 2008, and the five-story shell will be redeveloped into the Radisson.The work on the project stopped after the September 2008 collapse of Lehman Brothers, which led to a freeze in the commercial credit markets. I'll have more details later at JSOnline.com, and in Wednesday's Journal Sentinel. 

Fast food resturant plan withdrawn in northern Door County   

Plans for what would have been the first nationally franchised fast food restaurant in northern Door County were withdrawn recently after opposition arose from local officials and county residents. That's according to an article at doorcountyadvocate.com. The developer, Bruce Gajewski, withdrew his plans for a Subway restaurant in Sister Bay after the village Plan Commission decided he needed a conditional use permit--which would require him  to spend additional money to submit more complete plans. But Gajewski also said he would look to place the Subway in an existing buildilng, instead of the new building he had planned to develop. "The village has received numerous letters and e-mails from residents about what would be the first nationally franchised fast-food restaurant in Door County north of Sturgeon Bay. About 20 people spoke at the Plan Commission's meeting March 25 on both sides of the issue, although most objected to Gajewski's plans," read the article, by Warren Bluhm. "Many commentators said that the lack of fast food is a draw for tourists who prefer old-fashioned mom-and-pop operations, prompting Gajewski to ask: "I have one other quick question — so if I came up here with Amy's sub shop — that's my wife's name — would we have to follow all these rules? Would anyone coming in here with a sub shop have to follow all the same rules?"

New Land, AnchorBank litigation stalls upscale grocery plans

John and Anne Nehring's plans to open a Nehring Family Market on Milwaukee's east side have been stalled by a foreclosure suit filed against developer Boris Gokhman, who owns the site. That's the word from Gokhman, who spoke to me Monday afternoon. We chatted during a break in a hearing at the Milwaukee County Courthouse, where Madison-based AnchorBank is trying to get a receiver appointed in its foreclosure suit against Gokhman and partner Walter Shuk. Gokhman and Shuk, who operate New Land Enterprises, said the Nehrings want to make sure the dispute involving Anchor and the developers is resolved before they go forward on the project. "They want us to clean up the issues," Gokhman said. The Nehrings announced last year plans to develop the market at the Habhegger site, at N. Water and E. Brady streets. The bank is seeking to foreclose on that site, as well as on New Land's Oriental Theatre building, on Milwaukee's east side, and the Fox Bay Building, in Whitefish Bay. Anchor claims Gokhman and Shuk owe $15 million from some defaulted loans. New Land has responded by saying Anchor acted in "bad faith" by filing the suit. Anchor was in court Monday trying to persuade Milwaukee County Circuit Judge William Pocan to appoint a receiver to operate the properties. New Land still manages the properties, even though Anchor has been collecting the rent from tenants since the foreclosure suit was filed in January. Anchor's attorney, Andrew Wronski, told Pocan that the Oriental building's roof is leaking and needs repairs, and that Gokhman and Shuk were late in paying property taxes.

3rd Ward building lands large tenant, seeks tax credits

The Dye House, a former Historic Third Ward industrial property that's being redeveloped into offices and other uses, has landed a large new tenant. The eight-story building, at 320 E. Buffalo St., will lease 35,000 square feet on three floors to Arts Institutes of Milwaukee, according to documents released Monday by the Milwaukee Economic Development Corp. AIM is a non-profit education company that offers technical degrees in culinary management, visual arts, graphic design and fashion design, according to MEDC, a business lending agency affiliated with the City of Milwaukee. The building's owner, Gardner Group LLC, is seeking $6.5 million in federal New Markets tax credits to help finance converting the former industrial space into space for the new tenant. The agency's Loan and Finance Committee will consider allocating the credits at its Tuesday meeting. Other project seeking New Markets credits include AlterraCoffee Roaster Inc.'s plans for a new wholesale bakery in the Bay View neighborhood; I ngeteam Inc.'s plans for a wind turbine factory in the Menomonee Valley Industrial Center, Palermo Villa Inc.'s expanded frozen pizza plant, also in the Menomonee Valley, and the Redevelopment Authority's conversion of the former Tower Automotive Inc. plant into a business park, and other uses.

More affordable apartment projects surface on south, northwest sides

I've been learning of more affordable apartment projects proposed for Milwaukee. The plans include the 85-unit River Bend Apartments, proposed by St. Paul-based CommonBond Communities, for 2906 S. 20th St.  That site is about two blocks north of W. Oklahoma Ave. Ald. Terry Witkowski, whose district includes the site, told me he's not supporting the project "at this point." "I am not convinced that it will enhance the neighborhood, and not convinced that the zoning should change from industrial to residential," Witkowski said. I'll have more details on River Bend later at JSOnline.com, and in Tuesday's Journal Sentinel. Also, Chicago developer Robert Kohl, working with Oshkosh-based Keystone Development, has proposed the 104-unit Lakeside Townhomes, overlooking Northridge Lake, south of W. Glenbrook Road. That project, consisting of two-story townhomes, would be built on 13.5 acres at 9251 N. 70th St., said Cal Schultz, Keystone's owner. He said the townhomes would have two to three bedrooms and attached garages. Ald. Robert Puente, whose district includes the site, couldn't be reached for comment. Those projects are among several new proposals to develop affordable apartments in Milwaukee that are partly financed with federal tax credits. The Wisconsin Housing and Economic Development Authority last week released a list of tax credit applicants. The authority is to decide by June 18 which projects will receive credits.

Cudahy Library Square condos, bought in foreclosure, nearly sold out

The developer that last year took control of the foreclosed Cudahy Library Square condominium project just one unit left for sale. CLSC LLC bought project lender Marshall & Ilsley Corp.'s interest in the development, and took ownership of Cudahy Library Square last summer. CLSC is led by Michael Dilworth, president of Greenfield-based development firm Ener-Con Cos. Marshall & million foreclosure judgment Ilsley had obtained a $3.6 against Cudahy Library Square LLC, an investment group led by Milwaukee developer Jeffrey Rodman. Rodman in 2007 completed the first phase of Cudahy Library Square, just east of Cudahy Family Library, but had sold just one of the 30 units before foreclosure occurred. His plans stalled for a second 30-unit building and four townhouses. Dilworth, who was able to buy the bank's interest at a discount, slashed condo prices to find buyers for Cudahy Library Square. The building has just one unit left for sale, said Paulanne Phillips, sales manager. Dilworth plans to eventually build a second phase at Cudahy Library Square.

Assembly votes to regulate payday and auto title loans

Loan companies could still require borrowers to put their cars up as collateral, but they would face regulations if a bill passed by the Assembly early Wednesday morning clears the Senate and is signed into law. Rep. Gordon Hintz, D-Oshkosh, and others introduced an amendment to a payday lending bill at about 3:30 a.m. that adds auto title regulations. It would demand a lender to return any profit from the sale of a repossessed car to the borrower, prohibit lenders from taking copies of borrowers’ keys outright, allow just one auto title loan per customer, and place limits on loan amounts. Under the bill, lenders would have to give notice before repossessing vehicles, and they would be banned from charging interest after taking possession of borrowers' cars. The bill passed by a vote of 60-38. But the bill faces an uncertain future as it heads back to the Senate, where Sen. Jim Sullivan, D-Wauwatosa, had said he has concerns about last-minute changes and "due process" issues. Advocates for the poor say auto title loans are a predatory lending practice that can mean soaring interest rates for already-struggling borrowers.

Harris submits bid for Amcore

Harris, the third largest bank in Chicago, reportedly has submitted a bid to buy all or part of Rockford's Amcore Bank, according to a story Thursday on Chicagobusiness.com, part of Crain Communications. The story cited unnamed sources familiar with the matter. Amcore has 10 branches in the Madison area. Harris has branches in Wisconsin, but not in the immediate Madison area. Amcore stock has fluctuated from 46 cents to $1.30 a share since April 1, closing Thursday at 87 cents, up 16 percent from the previous day. Amcore has been under orders from federal regulators since last year to boost its capitalization or risk being sold or merged with another financial institution. The report on Chicagobusiness.com also said U.S. Bank reviewed Amcore's books as part of the bidding process, but it was not clear if the Minneapolis bank submitted a bid. The Federal Deposit Insurance Corp.'s invitation for bids on Amcore ended Monday, the story said.

Doyle hails Legislature's approval of BadgerCare program 

Gov. Jim Doyle praised the Legislature Thursday for passing a program that he said will provide access to basic health care for thousands of uninsured state residents. “BadgerCare Plus Basic is an important program that will provide access to basic, stripped-down health care to nearly 40,000 people who really need it, at absolutely no cost to taxpayers,” Doyle said. “This is not a Cadillac plan, and the program will be entirely paid for by those who use it,” the governor said. “Basic coverage can be the difference between having protection while you try and get your feet back on the ground and going bankrupt trying to pay for medical care.” The Senate had already approved a version of the program but voted on it again Thursday to adopt changes made by the Assembly when it passed its version earlier in the week. The new health care insurance plan is aimed at low-income adults without children who are currently on the waiting list for an existing program, the BadgerCare Core Plan.

Development News for the week 4/10/2010-4/16/2010
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MATC may raise tax levy nearly 10 percent

A few notes, quotes and observations from the Madison Area Technical College District Board meeting Wednesday night at the school's Truax campus. ** Highlights of the college's proposed budget for 2010-11 were outlined by Roger Price, MATC's vice president of infrastructure services. The item which will likely interest local home owners the most is the projection that the tax levy will increase by 9.8 percent next year. The proposed MATC budget predicts that would equate to an increase in taxes of $28.09 on the average single-family home in Madison, valued at $245,424. For the current year, the school reports that "average" home owner is paying $322.25 to MATC in taxes. Although a nearly 10 percent hike seems like a lot to ask of taxpayers during these challenging economic times, Jim Cavanaugh -- a district board member who is president of the South Central Federation of Labor -- noted that increase was lower than the enrollment spike the college absorbed.

Monroe Commons developer misses $182,700 payment to city

For the first time, a developer is failing to pay the city everything it owes under an agreement for taxpayer financing used to help build a project. The city is negotiating with Monroe Neighbors LLC, developers of the $22.9 million Monroe Commons mixed-use project, 1802 Monroe St., to recover $182,700 owed for 2008. The money was due August 2009. Monroe Neighbors owes another $139,800 for 2009, which is due Aug. 1. The five-story project, which includes 52 condos, a Trader Joe's grocery store, and 129 parking spaces, is producing tax revenue, but not enough to cover projections in a development agreement used to secure a total $2.51 million in tax incremental financing (TIF) assistance. Monroe Neighbors says it lacks the funds to cover the payments, assistant city attorney Anne Zellhoefer said. The company has been challenged due to an early construction problem that caused delays in completing the project, she said. David Keller, spokesman for the development group, did not respond to phone messages. On Thursday, City Council President Tim Bruer sent a memo to Zellhoefer and TIF coordinator Joe Gromacki seeking a status report on the project.

Aldi plans to build store in Fitchburg

Site work has begun at the Orchard Pointe development in Fitchburg for what will be an Aldi discount grocery store scheduled to open this fall. Were anxious to get started, but there is still part of the permit process with the city to complete, Aldi spokeswoman Heather Tarczan said. The project has received conditional approval but building permits have not yet been issued, said Fitchburg city planner Tom Hovel. Tim Neitzel of EZ Nesbitt is the developer and Dimension IV is the project architect. A Taco Bell is also planned for the development. Aldi has more than 1,000 stores in the U.S., including 60 in Wisconsin. There are two in Madison, at 3925 Lien Road and 8222 Watts Road. The new store will be near SuperTarget, which also sells groceries. The Orchard Pointe development, west of the intersection of Verona Road and County PD, also includes Gold’s Gym and various retail shops and restaurants. The new Aldi store, with approximately 16,000 square feet, will be a new prototype, Tarczan said. It will have a raised roof and more windows to allow more natural light

Neighbors vow to fight Copps grocery store in Grandview Commons

A group of battle-ready residents on Tuesday kicked off plans to oppose a proposed grocery store on Madisons east side. The group, consisting of more than a dozen neighbors in the Grandview Commons development, hopes to rally support to block the construction of a 62,000-square foot Copps store in their town square on North Star Drive. “This is a fight we gotta dig in and win,” resident John Driscoll said at the meeting in the Grandview Commons neighborhood. “We’re not opposed to a store. We want a market, we want a city square, but it’s got to be appropriately sized, and put in the right place.” Neighbors take issue with the size of the proposed store, designed to attract customers from outside the Grandview Commons development, which is billed as “an all-inclusive living environment.” Many fear the added traffic will cause safety hazards that families have specifically sought to avoid. Apprehension over safety and size were also aired at a preliminary meeting in February. Developers at that meeting said the economic constraints of the area point to a mid-size store -- larger than a Trader Joe's, but smaller than a Woodman’s.

Spectrum returning HQ to Madison, names new CEO

Spectrum Brands has a new CEO and is moving its headquarters back to Madison. The company -- formerly Rayovac -- announced Thursday morning that Dave Lumley has been named chief executive officer, effective immediately, succeeding Kent Hussey, who is retiring. Hussey has been with Spectrum Brands for 14 years, and has served as CEO since 2007. He will remain as chairman of the board until the proposed merger with small appliance company Russell Hobbs takes effect later this year, and will serve as consultant for the merger for three years. Lumley has been with Spectrum Brands since 2006 and heads the global batteries and personal care division, which includes the Rayovac and Remington brands, as well as the home and garden division. Those units are based in Madison. Spectrum Brands has had its headquarters in Atlanta since 2004 after making acquisitions that turned the former Madison-based Rayovac Corp. into a consumer products company with lawn care and pet care products. The move of its HQ to Atlanta was seen as a blow to the Madison business community, although the company kept its Rayovac and Remington units, as well as its home and garden division, based here with several hundred employees.

Madison's new Hyatt brings a new twist to the hotel experience

Anyone on a Downtown stroll might be forgiven if they walk into the new Hyatt Place hotel and mistake it for a cafe or coffee shop. That's precisely the point. The 151-room Hyatt Place Madison/Downtown, which opened Tuesday, is the first Hyatt brand hotel in the city and a relatively new concept for the corporation. It's the first Downtown hotel to open since the Hilton Madison Monona Terrace in 2001. The $20 million Hyatt Place, at 333 W. Washington Ave., is part of the Alexander Co.'s Capitol West development. The hotel project replaced an earlier plan for a second condominium tower. Hyatt Place hotels are designed for business or leisure travelers, with contemporary convenience being a priority. Areas outside the rooms feature spots where guests can socialize, tuck away to do some work or grab a bite to eat. "The concept is if you have friends over to your home, you make sure they're comfortable and make sure they have everything they'd need at home," said Mark Neubauer, the hotel's general manager. Rooms feature details such as an 8-foot sectional sleeper sofa, 42-inch high-definition televisions, hook-ups for mobile devices, Wi-Fi and cordless phones.

Overture needs mayor's command performance

The wave from behind the camera signaled that less than a minute remained in my guest appearance on Mayor Dave Cieslewicz's city cable television show for March, so the final question and answer had to be succinct. What issue was off the public radar but would soon be front and center? Overture, the mayor quickly answered. To the casual observer, the city's Overture Center on State Street is a spectacular cultural venue, one that famous performers frequently marvel at from the stage and which will soon host four mostly sold-out weeks of "The Lion King" Broadway musical. It was all made possible by the staggering $205 million gift from retired local businessman Jerry Frautschi. But two big and simmering issues are about to boil. One is the center's unresolved debt, now down to about $25 million, and the second is how Overture can be run effectively but less expensively once the debt issue is resolved. Both have been topics of intense behind-the-scenes negotiation and strategy. While the topics are not new - they were framed in depth in The Cap Times in December - there has been recent movement, according to multiple insiders.

UW students vote down Natatorium renovation funding

UW-Madison students this week voted against a referendum to renovate and expand the Natatorium, a project that would cost them $54 per semester for 30 years, beginning in 2013. More than a third of students voted a record, according the Associated Students of Madison and the Natatorium measure was defeated 8,616 to 5,311. The result means the project likely will not move forward for approval from Chancellor Biddy Martin and the UW Board of Regents. Members of the student government created a rule that says 15 percent of students must turn out in order for a capital building project constructed with student funds to be approved. It was created after only 6 percent of students voted in a 2006 question to raise fees by $96 per semester to build a new south campus union. Plans for the roughly $60 million Natatorium project would nearly double the space of the facility, one of three main gyms on campus, adding an indoor turf field, cardio and weight-training rooms and more. Mike Bernatz, part of a group supporting the project called NatUP, said the project is needed to accommodate increased fitness demand from students. Use of the campus gyms has increased by roughly 50 percent over the past 10 years. Peter Rickman, who opposes the project, said it’s unfair to burden future students with the “backdoor tuition hike.”

Madison area home prices won't recover until 2014

Don't hold your breath waiting for home prices to bounce back any time soon. The latest Case Shiller Home Price Index predicts that values in the Madison area won't return to their peak until at least 2014. According to the index, home prices in the Madison area peaked in the 1st quarter of 2008 and won't bottom out until the fourth quarter of 2011. By then, the average home willl have lost 7 percent of its value. But things are a lot worse in many other areas of the nation, including Milwaukee where prices aren't expected to recover until late 2017. Values there are predicted to drop 15 percent from the peak in 2007 before starting to recover in late 2011, according to Case Shiller. The worst housing markets are in Arizona, California and Florida, where values are predicted to drop by over 60 percent in many areas before hitting bottom. For example, in Sacramento, Calif. home values have dropped 54.8 percent since peaking in 2005 and are not expected to recover untiil after 2039. Of course, if you've got a job and good credit rating there are bargains to be had. Make an offer, any offer.

Madison, Dane County at odds over subsidized housing

City and county officials are clashing over how to better disperse Dane County's government-subsidized housing, which a new report shows is disproportionately clustered in Madison and a few neighboring communities. One of the recommendations in the draft report suggests the county should develop a Fair Share Assisted Housing Plan, similar to the work Madison has done over the last 30 years to disperse subsidized housing throughout the city....But Judy Wilcox, chairwoman of the Dane County Housing Authority, said that recommendation is "ludicrous" because the county can't dictate policy to cities and villages and must work cooperatively with them. There are several reasons why subsidized housing is where it is, Wilcox said, such as access to public transit and the concentration of rental versus owner-occupied housing. Suburban communities with more subsidized housing, such as Sun Prairie and Stoughton, built public housing in the 1970s using federal funds - since then resources have been significantly reduced.

Falk, Cieslewicz are walking, biking, taking transit in Europe

Call it planes, trains and ... bicycles. After flying to Europe, Madison Mayor Dave Cieslewicz, Dane County Executive Kathleen Falk and 19 other civic and business leaders this week are touring bicycle-friendly cities in Germany and the Netherlands solely by foot, bike and mass transit to learn how to improve the regions transportation systems. The tour, organized by Chris Fortune, president of Madison-based Saris Cycling Group, includes meetings with bicycle planning, engineering and design experts in Muenster, Germany, and Amsterdam and four other cities in the Netherlands. The cities were chosen because between 25 and 35 percent of daily trips there are made by bicycle, compared to 4 percent of trips made in Madison, Saris said in a statement. “Our goal is to apply what we learn to transform Madison into a world-class city for bicycling,” Fortune said. Cieslewicz, in the statement, said that high-speed rail and a new regional transit authority open new transit options and that he is looking for ideas to make systems more accessible to everyone, by bike, on foot or in a car.

High-tech directory shows Madison area added jobs last year

Even with the troubled economy, the Madison area added about 500 jobs in technology, biotech, medical devices, bioagriculture and computer-related fields in 2009 over the previous year. That’s according to the 2010 Greater Madison Area Directory of High-Tech Companies, released this week.. The directory lists 605 local businesses in the high-tech sector, providing 30,500 jobs, or about 10 percent of the region’s work force, with reported revenues totaling more than $6 billion. The data, compiled by Madison Gas & Electric, shows that between 2005 and 2009, high-tech employment grew 15 percent, and the number of tech-based companies in the Madison area increased 27 percent. Copies of the directory cost $45 and are available online at www.mge.com/ecodev/business/htd.htm or in printed version, by mail from Jim Mohrbacher, Economic Development, Madison Gas & Electric, PO Box 1231, Madison, WI 53701-1231.

Mobile home residents seeking more rights target lawmakers

For the past 12 years, retired state employee Kristen Zehner has been waging a one-woman, grassroots' campaign to bring greater home security to thousands of state residents who own manufactured homes. Lately, that battle has landed her in front of Rep. Leon Young's office in the Capitol with a picket sign. She has singled out the Milwaukee Democrat, calling him the "fly in the ointment" for his reluctance as chair of the Assembly Housing Committee to schedule a vote on a bill that would provide more options and security to mobile home owners when park owners put the park up for sale. Her efforts have pitted her in a David-versus-Goliath-style battle with the Wisconsin Housing Alliance. Composed of industry builders, suppliers and manufactured park owners, it is the only organization to register against the bill. "This is the first bill I've worked for," say Zehner, the founder of Wisconsin Manufactured Homeowners Association, the state's first and only tenants association for mobile home owners. "I'll come and stand outside his office every day until he schedules a vote. I'm not backing down. Nobody should have to live knowing they could be uprooted with little warning if someone decides to sell the land beneath their home." With the current legislative session coming to an end April 22, time is not on Zehner's side. The two sides still disagree on many issues in the bill, even though the bill's primary sponsor, Rep. Kelda Helen Roys, D-Madison, says she has "made concessions, large and small," to appease the Wisconsin Housing Alliance.

Around the State and Points Elsewhere
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Large apartment development proposed for downtown riverfront

A 140-unit apartment development is being proposed for a vacant parcel overlooking the Milwaukee River, just north of Schlitz Park business park. General Capital Group wants to build Beerline B Apartments north of E. Pleasant St. and east of N. Commerce St. A retail center, anchored by an upscale grocery store, had previously been proposed for the site, but those plans last year shifted to a different site. The apartments, ranging from one to three bedrooms, would be in two buildings of three to four stories, with underground parking and a RiverWalk, said Steve Schnoll, a General Capital partner. The 3.5-acre site is owned by Brewery Works Inc., which operates Schlitz Park. General Capital has a purchase option for the parcel, which is just south of Trostel Square apartments and condominiums. General Capital is seeking federal tax credits that are given to developers of affordable housing. In return for the credits, which are sold to raise equity financing, developers must lease apartments at below-market rents to people whose households earn no more than 60% of the area's median income. For a two-person household in Milwaukee, such as a single parent and child, that maximum income is $32,520, with the limits increasing as the household size increases. The Beerline plan is among several new proposals to develop affordable apartments in the Milwaukee area that are partly financed with federal tax credits. The deadline for seeking credits was April 9, and the Wisconsin Housing and Economic Development Authority this week released a list of applicants.

Villard Square apartments, library project moving forward

A proposal to create apartments on Milwaukee's north side that combine senior housing with kid-friendly features is moving forward. Villard Square would include a new city library branch and 47 apartments in the 3400 block of W. Villard Ave. The idea is to put children from broken homes into a stable environment by having them live with their grandparents. Villard Square is being developed by Gorman & Co. of Oregon, Wis., and Northwest Side Community Development Corp., a neighborhood nonprofit group. The $10 million project is getting federal affordable housing tax credits, and the units will be rented at below-market rates to moderate-income people. It received housing tax credits and zoning approval last year. The development is now seeking up to $3.5 million in federal New Markets tax credits, which are provided for projects that generate jobs in low-income areas. The city Redevelopment Authority's board, at its Thursday meeting, will consider a proposal to apply for those tax credits.

Area office market shows signs of stablizing, report says

The Milwaukee area's office market began to show "signs of stabilizing" during the first quarter, according to a new report from Grubb & Ellis/Apex Commercial Inc. The overall vacancy rate remained at 19.8%, similar to its level at the end of 2009, the report said. The decline in rents has slowed, and the area labor market added 5,800 jobs during the first quarter. "These trends provide some optimism that the worst occupancy losses are over," the report said. Still, the report said, "Leasing velocity remains slower with most leasing activity focused on tenant renewals. Tenants continue to forego moving costs by blending and extending current leases in order to effectuate lower real estate related overhead costs immediately. Cash starved landlords continue to propose lower lease rates in exchange for a minimal tenant improvement allowance." The report concluded that there is reason for optimism despite "the continued lackluster performance of the office market." Positive economic indicators, such as increased consumer spending and higher worker productivity, "may be an indication that employers may need to hire sooner rather than later." 

Juneau Village apartments, shopping center change ownership

Litigation among some of Milwaukee's largest apartment owners has been settled, with the properties from their former partnership--including Juneau Village--divided among them. The dispute involved real estate investors Daniel Katz and John Crichton, and the family of Thomas Hauck, a former partner with Katz and Crichton. Hauck, who died in December 2006, and Crichton formed Shoreline Real Estate Co. in 1973. They built Shoreline into a firm that owned around 40 properties in the Milwaukee area, most of them apartment buildings. Hauck and Crichton later formed a partnership with Katz, who operates Katz Properties Inc., to own Juneau Village and other properties. Juneau Village Tower Apartments, with 598 units at 1009-1129 N. Jackson St., is Milwaukee's largest apartment development. After Hauck's death, Katz filed a series of lawsuits seeking the sale of Juneau Village Tower Apartments; the adjacent Juneau Village Shopping Center, home of Metro Market, and the nearby 125-unit Juneau Village Garden Apartments, 1319 N. Jackson St. Katz said the partnership was no longer workable. The Hauck family filed their own suit, and said in court documents that they were being unfairly squeezed out. Under the settlement, the Katz, Crichton and Hauck families exchanged their respective interests in Juneau Village Tower Apartments, Juneau Village Garden Apartments and Juneau Village Shopping Center, according to a statement issued by the Katz and Crichton families.

Milwaukee area housing values wont recover until 2017

Housing prices in the Milwaukee area peaked during the second quarter of 2007 and will not recover from the housing market collapse during the Great Recession until the fourth quarter of 2017, according to Brookfield-based Fiserv Inc.s Case-Shiller Index. The Milwaukee housing market still has not hit bottom, according to the index. That will happen in the fourth quarter of 2011 when prices will have fallen 15 percent from their 2007 peak. Some metro areas are in even worse shape. Several metro areas in California, Florida, Arizona and Nevada will not see home prices return to peak levels until 2025 or later, according to the index. The index projects that the overall U.S. housing market will not begin to recover until next year. “Nationally, Fiserv Case-Shiller data points to a further 7 percent decline in home prices through the end of this year, with a prolonged recovery beginning early in 2011,” said David Stiff, chief economist for Fiserv. “In many markets, the emphasis is on the word prolonged. We see several powerful forces in the market that will severely hinder the housing recoveries of many metro areas, particularly in hard-hit states of California, Florida, Arizona and Nevada. It will take these markets 15 or more years before prices climb back to their peaks.” High levels of unemployment in the U.S. have been a major contributor to home foreclosures, which has provided a significant drain on housing prices. In addition, some low income urban levels had higher levels of subprime loans, many of which have gone into foreclosure as some buyers could not afford to pay the mortgages.

Metro Milwaukee home sales up 20 percent, but prices are flat

Sales in the four county metro Milwaukee were up 20 percent in March and 9 percent in the first quarter of the year compared to the same periods in 2009, according to statistics released by Metro MLS Inc. March home sales were up 23.5 percent in Milwaukee County, up 10.5 percent in Waukesha County, up 29.3 percent in Washington County and up 11.5 percent in Ozaukee County. The prices of homes sold in the four county metro area were flat (up 0.1 percent) for the first quarter, compared to the first quarter of 2009. The average price of homes sold was up 15.1 percent in Milwaukee County to $134,527 and up 2.8 percent in Waukesha County to $267,419, but prices were down 3.0 percent in Washington County to $198,786 and down 6.0 percent in Ozaukee County to $220,412. Home prices were also down 12.5 percent in Racine County to $131,345 and down 11.8 percent to $142,931 in Kenosha County.

Bankruptcy scuttles Park Lafayette condos-for-land deal

When a Shorewood couple agreed to sell their land, on Milwaukee's east side, for a high-rise condominium development, the price included a couple of condos in the new project. But, before those condos could be given to Sik Kin Wu and Wen Chen Wu, project developer Renaissant Lafayette LLC filed for Chapter 11 bankruptcy protection. Renaissant developed the 281-unit Park Lafayette, which has two 20-story towers at N. Prospect and E. Lafayette avenues. The Wus have now filed a complaint in U.S. Bankruptcy Court, arguing that their claim should take priority over a claim filed by New York-based Amalgamated Bank, the project's lender. The Wus, in their complaint, say Renaissant Lafayette, led by developer Warren Barr, agreed in 2006 to provide one condo unit for free, and another unit for the cost of building that condo--$258,000.  But the units had not been turned over to the couple prior to Renaissant's Dec. 23 bankruptcy filing. Barr's attorney declined to comment on the complaint, and a bank attorney didn't respond to a request for comment. Amalgamated is owed $102.8 million, secured by the condo development and other Renaissant property valued at $61.3 million, according to court records. Also owed money by Renaissant are several building contractors and vendors.

Industrial vacancy rate rises; distribution firm moving to Falls

The vacancy rate for industrial real estate in the Milwaukee area was 9% at the end of the first quarter, up from 8.7% at the end of 2009, according to a new survey released by Dickman Co. Increases within the region included Milwaukee County, from 11.3% to 12%; Racine County, from 6.8% to 7.7%; and Walworth County, from 7.8% to 8.2%. Kenosha County saw a big drop, from 11.6% to 10.2%. Dickman, in a statement, said leasing activity is improving, "driven by a sabilization in the overall economy, highly depressed lease rates and attractive landlord incentives such as free rent and above-average tenant improvement packages." Meanwhile, M&M Quality Solutions Inc. has just signed a lease for 85,000 square feet of warehousing and distribution space at N70 W14700 Commerce Drive, Menomonee Falls. M&M will consolidate its Milwaukee-area operations at the Falls location, which is owned by SBM of Wisconsin. Brokers on the deal were Kevin Barry and Kurt Van Dyke of Cassidy Turley Barry and Brian Parrish of Dickman Co.

Barrett, Walker talk nice about downtown Milwaukee

If you we're expecting fireworks between Mayor Tom Barrett and County Executive Scott Walker at Thursday's State of Downtown Economic Forum, then you went away disappointed. OK, I'll admit it--I thought this forum would be a bit more lively. Heck, the only reference to the governor's race--where Barrett is the likely Democratic nominee and Walker is battling Mark Neumann for the Republican nod--was pretty subtle. It came when Barrett said locating University of Wisconsin-Milwaukee's new School of Public Health at the former Pabst brewery should be a top priority for the next governor. Barrett and Walker each spoke for around 10 minutes at the forum, hosted by the Milwaukee Downtown Business Improvement District as part of its annual Downtown Achievement Awards program. What the Wisconsin Club audience heard from Barrett and Walker was mostly non-controversial stuff. They both agreed downtown's lakefront is a huge asset. Attractions, such as the Milwaukee Art Museum, help draw visitors. Etc. Barrett did talk a bit about his plans for a downtown street car loop--a transit project that Walker opposes. "I cannot think of a major American city that is growing that doesn't have rail as part of its transit system," Barrett said. And Walker mentioned his idea of having the Milwaukee County Transit System provide an express bus route between downtown and the County Grounds, in Wauwatosa. But you'd never know from their speeches that these two guys are competing for the same job.

Downtown Achievement Awards announced at forum

The Milwaukee Downtown Business Improvement District hosted its annual Downtown Achievement Awards program Thursday morning as part of its first State of Downtown Economic Forum. The winners were:

Aloft Milwaukee Downtown, winner of the Brick and Mortar Award, for constructing the first new downtown hotel since 2001 and becoming among the first catalytic projects in the Park East corridor. Hyatt Regency Milwaukee, winner of the CPR Award, for its $19 million makeover, which revamped downtown’s second-largest hotel. Milwaukee Holiday Lights Festival Jingle Bus, winner of the Showcase Award, for helping to make downtown a regional attraction during the holidays. Cindy Moran, ArtSpin founder & president, winner of the Downtown Cheerleader Award, for creating a forum for Milwaukee’s visual and performing arts groups. Mark Buetow, former Milwaukee Police Department community liaison officer, winner of a Special Recognition Award, for ongoing dialogue between the department and downtown businesses. Janet Kusko, former Downtown Business Improvement District board member, winner of a Special Recognition Award, for 12 years of service to the group.

Wisconsin unemployment rate moves higher in March

Making it more difficult to talk about an economic turnaround, Wisconsin lost 2,200 jobs in March while the state's unemployment rate notched higher to 8.8% from 8.7% in the previous month, according to preliminary figures released Thursday by the state. The numbers show that the recovery is slow and uneven at best, said David Clark, an economics professor at Marquette University. The March numbers, which are seasonally adjusted, did include one bright side: For three consecutive months, the state slowly but steadily has added manufacturing jobs. Using seasonally adjusted data, which strip out fluctuations related to weather or school schedules to illustrate economic trends, Wisconsin added a net 2,500 manufacturing jobs in March. Without seasonal adjustments, it gained 800 manufacturing jobs. Hiring in the Badger State's factories is important and not just symbolically. A greater share of Wisconsin's total workforce, 16%, is in the manufacturing sector than is the case for any other state in the nation, meaning manufacturing remains the state's single largest economic driver. The Milwaukee 7, the economic development organization for the seven-county metro area, has staked much of the region's reputation on its ability to grow and attract "next-generation manufacturing." The M-7 in recent months managed to recruit two Spanish manufacturing companies to build factories in the city.

Foreclosure rates surge, biggest jump in 5 years

A record number of U.S. homes were lost to foreclosure in the first three months of this year, a sign banks are starting to wade through the backlog of troubled home loans at a faster pace, according to a new report. RealtyTrac Inc. said Thursday that the number of U.S. homes taken over by banks jumped 35 percent in the first quarter from a year ago. In addition, households facing foreclosure grew 16 percent in the same period and 7 percent from the last three months of 2009. More homes were taken over by banks and scheduled for a foreclosure sale than in any quarter going back to at least January 2005, when RealtyTrac began reporting the data, the firm said. "We're right now on pace to see more than 1 million bank repossessions this year," said Rick Sharga, a RealtyTrac senior vice president. Foreclosures began to ease last year as banks came under pressure from the Obama administration to modify home loans for troubled borrowers. In addition, some states enacted foreclosure moratoriums in hopes of giving homeowners behind in payments time to catch up. And in many cases, banks have had trouble coping with how to handle the glut of problem loans.

U.S. Homebuilders Are Seeing A Pickup in Sales

U.S. homebuilders are seeing a pickup in sales and customer traffic as homebuyers rush to qualify for tax incentives set to expire at the end of the month, and that's made them more optimistic. The National Association of Home Builders said Thursday its housing market index, which tracks industry confidence, jumped four points this month to 19, the highest reading since September. It's no coincidence that the last time builders felt this good about their business prospects there was another tax credit deadline looming that motivated buyers. The tax credits — $8,000 for new buyers and $6,500 for current owners — expire at the end of this month. That, coupled with low mortgage interest rates have helped gin up sales for builders. But when asked to look beyond this month, builders remain less hopeful, and with good reason. Many economists contend the tax incentives are making more buyers pull the trigger now, so sales will drop in the second half of this year. In addition, high unemployment and tight mortgage lending continue to keep many buyers on the sidelines.

Development News for the week 4/3/2010-4/9/2010
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Developer eyes student housing where UW building might stand

While the UW-Madison’s effort to condemn property owned by the Brothers Bar & Grill chain has grabbed plenty of attention, a prominent campus-area landlord is also bumping up against the university’s thirst for real estate. For months, Otto Gebhardt has been seeking city approval for a new 87-unit, high-rise student apartment building at 1208 Spring St. Three aging rental houses on the property now would be torn down. Gebhardt and others have been quietly redeveloping other properties in the area between Randall Avenue and the Park Street viaduct. Some of the newer brick Colonial row houses on the narrow streets hint at Georgetown or Cambridge. Despite some initial concerns about the height, the proposed Humbucker Apartments have faced little neighborhood opposition. The project features a mix of unit sizes from one to four bedrooms. Plans include 24 covered automobile parking spaces, 37 scooter spaces and one bicycle space per bedroom. “It’s going to provide some badly needed new housing close to campus,” says Ald. Bryon Eagon, who represents the campus area.

Greyhound changes again: Buses to stop at Metro's North Transfer point

Greyhound Lines officials said Thursday that starting at 6:35 a.m. Friday the company’s buses will pick up and drop off passengers at Metro Transit’s North Transfer point. The relationship between Greyhound Lines and a truck stop on the Interstate was an affair to forget. Greyhound confirmed that starting at 6:35 a.m. Friday the company's buses will pick up and drop off passengers at Metro Transit's North Transfer Point, 1213 Huxley St. That puts the lifespan of the Interstate truck stop as Greyhound's "permanent" terminal for Madison at one day. "Because of comments from individuals, we have decided to move back to that (North Transfer) point, a more centralized point for the residents who use our services," said Timothy Stokes, Greyhound spokesman. "We are looking for a more permanent location," he added. The North Transfer Point is a block off Aberg Avenue, between Packers and North Sherman avenues. The truck stop is on Highway 51 at Interstate 39-90-94, 10 miles from the Capitol, a daunting journey for potential Greyhound bus passengers, especially as there is no public transport to that area, aside from taxi cabs.

St. Paul’s proposes new Catholic Center on campus

Despite concerns by city officials about height and size, St. Paul's University Catholic Center is proposing a striking, 14-story facility with a chapel, student center and residences on State Street Mall — a project Madison Catholic Diocese Bishop Robert Morlino says is more important than rebuilding the Downtown Cathedral. A redevelopment of the Catholic Center would create a "religious learning center" that would serve thousands of Catholic students at UW-Madison and the larger community, church officials said. "We're trying to combine faith and reason so they don't conflict with each other but work with each other," said the Rev. Eric Nielsen, St. Paul's priest. "This is a multi-generational project," added Scott Hackl, the center's director of development. "This is a building that would serve students at the university, Catholic or not, for 100 years." Nielsen and St. Paul's attorney, Ron Trachtenberg, discussed the plan with Mayor Dave Cieslewicz and city staff Wednesday afternoon. "I'm open to it," Cieslewicz said after the meeting. "I appreciate the fact they came in so early. I encourage redevelopment of the site. Some more height and density is needed. It's a question of how much." The mayor and city Planning Division Director Brad Murphy encouraged St. Paul's to study the emerging Downtown plan to see how it might affect the project, meet with Ald. Bryon Eagon, 8th District, who represents the area, and go to the Landmarks Commission for an informal conversation because the site is next to a landmark building.

Owners of Brothers Bar agree to drop UW lawsuit

Just one day before their case was scheduled to go to trial, the owners of Brothers Bar and Grill agreed to stop fighting the UW Board of Regents’ attempt to condemn their bar. Owners Marc and Eric Fortney dropped their lawsuit Tuesday against the university and said they would accept the Regents’ offer of $2.1 million, allowing UW-Madison to build its new School of Music facility on the property. The Fortneys, who are UW-Madison alumni, said they agreed to dismiss the case because it was “the right thing for UW-Madison,” according to their attorney, Mike Wittenwyler. The Regents moved to take the property where the popular campus area tavern sits at 704 University Ave. in 2008. By law, the University of Wisconsin System has the power to condemn private property if its use is in the public interest.

Library board endorses renovation plan, says it doesn't want to wait

Concerned delays could be costly and even threaten prospects for a state-of-the-art central library, the Madison Public Library Board on Monday unanimously endorsed a proposal to renovate and expand the existing facility. The move adds momentum to Mayor Dave Cieslewicz's push to quickly renovate the 45-year-old library rather than reopen stalled talks with the Fiore Cos. and partners to build a new $37 million library on another site followed by a $50 million private project on the current library property. The City Council is expected to make a final decision in the coming weeks. "I'm pleased we can move forward," board President Tripp Widder said after the vote. "I'm extremely concerned there isn't any delay or signal to the council that we didn't want to move forward quickly." For months, Cieslewicz and the Library Board enthusiastically supported Fiore's proposal to build a six-story, 104,000-square-foot central library at the corner of North Henry Street and West Washington Avenue with a second phase of private redevelopment on the existing library site at North Fairchild and West Mifflin streets. But after city negotiations with Fiore collapsed three weeks ago, Cieslewicz has pushed for renovation of the worn library. Meanwhile, Downtown Madison, Inc., which advocates for the central city, and others have asked the city to reopen talks with Fiore. Fiore and a neighboring landowner, Hovde Properties, say issues can be resolved and that it would be prudent to spend some extra time on options. Library Board member Allen Arntsen unsuccessfully pushed a motion Monday asking the city to reopen talks with Fiore, saying there is widespread "discontent and unhappiness" with the loss of the more ambitious plan.

Middleton a finalist for All-America City award

Middleton is one of 27 cities -- and the only one in Wisconsin -- selected as finalists in the 2010 All-America City competition. The 10 winning cities will be announced in June in Kansas City by the National Civic League, organizers of the competition since 1949. Middleton city administrator Mike Davis announced the selection Tuesday morning. "The competition focuses on civic engagement and collaboration to solve problems," Davis said in the announcement. "We included the Workforce Housing development, the Community Sustainability Initiatives and the Lakeview Park improvements in our application." The other 26 finalists are Chandler, Ariz.; Bentonville, Ark.; Dublin, Calif.; Lynwood, Calif.; Rancho Cordova, Calif.; Vernon Central (neighborhood), Calif.; Miami Lakes, Fla.; Acworth, Ga.; Belleville, Ill.; Canton, Ill.; Noblesville, Ind.; Des Moines, Iowa; Lenexa, Kan.; Scott County, Kan.; Bowling Green, Ky.; Salisbury, Md.; Ferguson, Mo.; Riverside, Mo.; Lynbrook, N.Y.; Gastonia, N.C.; West Chester, Ohio; Wyoming, Ohio; Mount Pleasant, S.C.; El Paso, Tex.; and Abingdon, Va. More than 500 communities have been designated as All-America Cities since 1949, including several that have received the award five times. Wisconsin winners include Racine in 2003, Green Bay in 1999 and 1964, Wausau in 1983-84, Madison in 1977-78, Beloit in 1971 and La Crosse in 1965.

Add another Edgewater appeal to the queue

Edgewater opponents filed an appeal of a Plan Commission decision on the Edgewater Hotel late last week, setting the City Council up for yet another voting item when they debate the project. The appeal is related specifically to the commission's decision on the conditional use permit (required for all waterfront developments), which ordinarily would not go before the City Council. However, an appeal means that the permit will be become one of the many items related to the multimillion-dollar downtown project, which proposes an eight-story addition, public plaza and parking expansion, that the City Council will take up as early as April 20. Other items before the council will include (but are not limited to) a rezoning request, a city financial aid package and another potential appeal of the project's appropriateness for a historic district. "The City Council will be voting like fiends that night," quipped city planner Tim Parks, referencing the number of individual items related to the Edgewater Hotel redevelopment. There has been some discussion of a special meeting of the City Council just to tackle the Edgewater project, although no date has been set yet for that.

Fresh Madison Market to offer online shopping and delivery

Fresh Madison Market, a Downtown grocery that opened at 703 University Ave. in January, will begin offering online shopping and delivery Thursday. Customers can order off the stores website, www.freshmadisonmarket, pay online and have their order delivered within the city limits. The cost for the service is $4.95, and delivery can be made within a two-hour window. Customers can also order their groceries online and pick them up at the store’s Lake Street entrance, also for $4.95. Customers can also shop in the store and have their groceries delivered within the city limits with a $40 minimum purchase.

UW goal: 30% more graduates by 2025

Calling it an ambitious goal, University of Wisconsin System President Kevin Reilly said he wants to increase the number of UW graduates by 30 percent over the next 15 years to create a better-educated and higher-paid workforce in the state. But he said reaching that goal will take buy-in from Wisconsin families and a renewed investment from the state, which didn’t provide funding for the university’s growth plans — called the Growth Agenda — in the most recent biennial budget. “If we do nothing, Wisconsin will fall further behind,” Reilly said. In 2008, 26 percent of Wisconsin adults had a four-year college degree, compared with 32 percent in Minnesota and 28 percent nationwide. The UW System’s goal comes on the heels of an announcement by President Barack Obama last month, who said he wants the U.S. to have the highest proportion of college graduates in the world by 2020. Other states, like the California State University system, have recently announced similar efforts. It matters, Reilly said, because college-educated citizens tend to have higher incomes, better health and be more engaged in their communities.

Goodman brothers were Madisons best friends

Madisonians who are old enough will recall the “golden age of television” commercials for Goodman Jewelers on State Street, in which Robert Goodman offered a rendition of “Diamonds Are a Girl’s Best Friend” that reminded everyone why he had become a jeweler -- as opposed to a nightclub performer. Bob Goodman’s great good nature, which included a delightful willingness to poke fun at himself and his beloved older brother Irwin, made him a Madison original. But, as anyone who has followed the remarkable philanthropy of the Goodman brothers over the years knows, they contributed a lot more than good humor and maybe-not-so-good singing to the community. The Goodmans gave and gave and gave, to create pools (including Madison’s fabulous municipal facility), community centers, programs for poor kids and the disabled. The list is long, and the Goodmans, modest to a fault, would be embarrassed if it was over-emphasized. (In fact, many of their donations were made anonymously.) But now that we have lost both Irwin, who died last August at age 94, and Bob, who died last week at age 90, it is only appropriate to say that, while Bob Goodman may have told us that “Diamonds Are a Girl’s Best Friend,” history will record that “The Goodman Brothers Were Madison’s Best Friends.”

Dane of My Existence: Orpheum for sale

The Orpheum Theatre is for sale at a cool $1,995,000. That's not news. The historic downtown movie theater went on the market last October. But it stayed under the radar until Dane County supervisor Wyndham Manning posted Keller Real Estate Group's flyer for the property on Twitter this afternoon. In a response tweet, comedian "Dan Potacke" (aka Alan Talaga) joked that Brothers owners Marc and Eric Fortney, who today accepted a $2.1 million offer and dropped a lawsuit against the UW Board of Regents, might snap up the property with the money and tear out the theater to increase the capacity for Brothers' famous "Friday After Class" drink specials. Yikes. Fortunately, it looks like there's little chance of that happening. Orpheum owner Henry Doane said he doesn't have plans to leave town or move onto a new venture, nor is he looking to disrupt his previously announced intention to host more live performances in the venue. The sale represents a search for "investors and opportunities," he said Tuesday afternoon. He's been hesitant to broadcast the Orpheum's sale too much, he added, because he doesn't want to give the impression that the venue will soon close or change drastically. "It's not closing by any stretch of the imagination," said David Keller, who is one of two brokers working on the Orpheum sale.

Dane County airport gets money for more capacity for private aircraft

A $760,000 taxiway expansion at the Dane County Regional Airport is expected to add capacity for corporate jets and other private aircraft. Gov. Jim Doyle announced Tuesday he has released $608,000 in state aviation funds, which Dane County will match with $152,000, for the design and construction of Taxiway L. The expansion will allow for the future construction of six or more private hangars, airport spokeswoman Sharyn Wisniewski said. "This fits right in with the airport and it being a vital economic development engine," said Josh Wescott, spokesman for Dane County Executive Kathleen Falk. Construction is scheduled to be completed by August 2010. Last year the airport built 10 major airfield improvements for $22.13 million, $4 million of which came from federal stimulus funds. The projects included taxiway reconstructions, an electrical system upgrade, expanded parking areas for airplanes, improved roadways, more space for general aviation and corporate hangars and a more environmentally sound system for handling antifreeze runoff. The projects were the most the airport had under construction at one time in the past 20 years.

Property owners near the Edgewater file legal petition to force supermajority vote

As expected, seven property owners near the proposed $93 million-plus redevelopment of The Edgewater hotel have filed a legal petition in an effort to force a supermajority of the City Council to approve the project. The petition asked that the council reverse the Plan Commission's decision to let the waterfront development move ahead. City Planning Division Director Brad Murphy said the council will hold a public hearing on the appeal after the city has verified ownership of the properties. Murphy said it would take approval from a supermajority of the council — 15 of 20 members - to uphold the Plan Commission's action. The Edgewater project is moving toward a final council vote April 20.

More recreation opportunities coming in Capital Springs master plan

One of the larger outdoor recreation areas in Madison could be expanding its offerings. The Capital Springs State Recreation Area, a nearly 2,500-acre expanse of land on the city's south side, is being considered for more bike and hiking trails, more hunting land and fishing access plus other recreational opportunities, in plans being rolled out Thursday at a public information meeting. The meeting will begin at 7 p.m. at the Lussier Family Heritage Center, 3101 Lake Farm Road, in the Lake Farm County Park. The Wisconsin Department of Natural Resources and the Dane County Parks Division have been working for nearly a decade to develop the master plan for the recreation area. The preferred alternative master plan is now ready to be reviewed by the public and is available online here. The recreation area stretches from Upper Mud Lake along the Beltline south of Monona west to the Department of Natural Resources facility on Fish Hatchery Road in Fitchburg. It includes the Capital City State Trail, Nevin Springs Fish and Wildlife Area, Jenni and Kyle Preserve, E-Way, Lake Farm County Park, and the Lussier Family Heritage Center. Other improvements in the plan include an ampitheater, canoe landings, disc golf and a dog exercise area. At Thursday's meeting, park planning staff will provide an overview of the plan, followed by an opportunity for the public to ask questions and review plan maps. The Dane County Board and the state Natural Resources Board are expected to consider the plan for adoption in mid-June.

Rate dispute might doom local wind power project

A local company's plan to build a small wind farm just outside Madison and create more than 100 jobs is hanging by a thread amid a standoff with Madison Gas and Electric Co. over the price of electricity to be generated at the site. The company, Wave Wind LLC of Sun Prairie, says it needs 8 cents per kilowatt-hour to make the project viable. MGE is only willing to pay 2.9 cents. The company, Wave Wind LLC of Sun Prairie, says it needs 8 cents per kilowatt-hour to make the project viable. MGE is only willing to pay 2.9 cents. "That rate won't even allow us to put a shovel in the ground," said Tim Laughlin, president of Wave Wind at 4589 Highway TT. "The utilities have to recognize that (green power) will be part of the culture. It will be part of what we're dealing with on all levels, and they'll have to figure out a way to make it work." Wind-farm supporters say the project - which the company likely will move to another state if a deal can't be worked out - would produce clean energy for 2,400 homes annually, for just a few pennies more on a $50 monthly bill. But MGE says it can get renewable energy even more cheaply now and potentially well beyond 2020. Renewable energy expert Michael Vickerman agreed that locally produced wind energy wouldn't be the cheapest option, given competition from states like Iowa and Minnesota, which have stronger, steadier wind patterns.

Brewery tries to keep up with demand for new Supper Club beer

Supper Club, the newest beer from Capital Brewery, appears to be a hit. Retailers are running out of the American lager, and the Middleton brewery is scrambling to make more of the beer. Almost 5,000 cases hit store shelves last week. Carl Nolen, president and chief executive officer, said another batch is being brewed and will be shipped Thursday to Stevens Point for packaging. Another brew is scheduled for April 23. Typically, the brewery brews beer a month before it gets to stores, but both new batches will be shipped directly to distributors who are hearing from retailers that they are either out or almost out of the beer. The Supper Club variety is designed to be served with classic Wisconsin table fare. “For the next couple of weeks, it will be hard to find,” Nolen said. “We have accounts that haven’t had the chance to buy it.” 

Around the State and Points Elsewhere
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Edgerton Hospital and Health Services Moves Forward With Plans to Build New Hospital

Exceptional health care is about to move forward as Edgerton Hospital and Health Services (EHHS) announced today it has secured financing and will be moving ahead with plans to build a new hospital. The $26 million dollar hospital will be located on a 69-acre site east of Edgerton on Highway 59. The hospital has been awarded a Federal Housing Administration mortgage insurance loan which has given it the financial backing it needs to begin construction. “Our area residents deserve a health care facility that matches the high quality care our patients already receive,” says Jim Pernau, CEO of Edgerton Hospital and Health Services. “Our community is growing and has unique needs. This new facility will be able to meet those needs while exceeding everyone’s expectations.” “The FHA loan demonstrates the tremendous value of federal/local partnerships in helping communities and families improve their quality of life,” said Congresswoman Tammy Baldwin (D-WI). “With federal support, the Edgerton Hospital project will create much-needed jobs, improve health care services, and save money. This is great news to start off the New Year.” Hospital services will include inpatient, outpatient, surgical, diagnostic, 24-hour emergency care, urgent care and rehabilitation services.

Alterra Bay View project subject of public neighborhood meeting

Alterra Coffee Roasters Inc.'s proposal to buy a Bay View building and convert it into a wholesale bakery. and other new uses, will be the subject of a neighborhood meeting, at 6:30 p.m. Monday at the Bay View Library, 2566 S. Kinnnickinnic Ave. The meeting was called by Ald. Tony Zielinski, whose district includes the site. Zielinski said the meeting will give people an opportunity to voice their opinions about the proposal prior to Tuesday's Common Council meeting. As I reported last week, Alterra plans to renovate the building, which is between Kinnickinnic and Howell avenues, south of Lincoln Ave., and also build a new cafe in Shorewood, and renovate cafes in Grafton and at 2211 N. Prospect Ave. Alterra would finance the project with $7.8 million in industrial revenue bonds issued in the city's name. The city would not be a lender on the project, and Alterra would be responsible for repaying the debt to the bond purchasers. Issuing the bonds in the city's name would make them tax-exempt, allowing Alterra to pay a lower interest rate to the bond purchasers. The Common Council's Community and Economic Development Committee this week unanimoustly recommended approval of the bond issue. But opposition has surfaced from Bay View neighborhood bakery and cafe operators, who fear Alterra would include a retail operation in the project. Those fears appear to be confirmed by this new report by the Bay View Compass, which says Alterra's plans include a cafe. The Bay View facility would add 20 jobs, and the new Shorewood cafe would add 15 jobs, according to the Department of City Development .

Developers show interest in Neenah sites

Three commercial properties in front of Plexus Corp.'s new global headquarters, which is under construction in downtown Neenah, have begun to draw interest from developers. About 350 Plexus employees will work in the four-story, 103,000-square-foot headquarters building. City officials are hoping the Plexus headquarters will attract additional commercial development nearby.

Developer plans 15-story office building in downtown Milwaukee

Weas Development Co. is shopping around for anchor tenants to occupy a new 15-story office building that could be constructed at the southeast corner of North Broadway and East Michigan Street in downtown Milwaukee.

Indoor sports complex proposed for industrial building 

This is an unusual redevelopment idea: an indoor sports complex is being proposed for part of a 116,000-square-foot manufacturing building in Milwaukee's Riverwest area. Courthouse Sports Complex LLC would lease space at the building, 301 E. Vienna Ave., for an indoor recreational facility, according to a filing with the Board of Zoning Appeals. The building housed Production Stamping Corp. before it closed in 2007. It is owned by CJF4 LLC, a Chicago-area investment group. The board will consider granting a special use permit for the sports facility at its April 15 meeting.

Walker, Barrett to talk about downtown Milwaukee

Mayor Tom Barrett and County Executive Scott Walker will discuss the current and future state of downtown Milwaukee at the upcoming annual meeting of the downtown business improvement district. Did I mention they're both runing for governor? Seriously, this could be an interesting meeting, especially when they start talking about the Park East area, the Grand Avenue, etc. The meeting is Thursday, April 15, at the Wisconsin Club, 900 W. Wisconsin Ave. It begins with breakfast at 7:30 a.m., with the program starting at 8 a.m. To register, contact Pat Abram, at 414.220.4700 extension 21, or pat@milwaukeedowntown.com by Thursday.

Troubled Park Lafayette condo towers on verge of being sold

UPDATED

The financially troubled Park Lafayette condominium towers, on Milwaukee's east side, are on the verge of being sold, according to U.S. Bankruptcy Court documents. That word comes from court minutes summarizing a status conference held Monday on the Chapter 11 bankruptcy reorganization of Renaissant Lafayette LLC, which owns Park Lafayette. The minutes say Renaissant Lafayette's attorney, Forrest Lammiman, said at the hearing, before Bankruptcy Judge Pamela Pepper, that the parties "are on the verge of completing a deal that would result in a sale." He said a sale motion would likely be filed by April 16. Lammiman told a reporter Tuesday that a local investment group, led by developer Frank Giuffre, is interested in bidding on the 281-unit Park Lafayette complex, which has two 20-story towers at N. Prospect and E. Lafayette avenues. The Journal Sentinel reported in January that the Giuffre group was negotiating to buy the property. Other prospective buyers could emerge, Lammiman said. The negotiations involve New York-based Amalgamated Bank, the project's chief lender. Renaissant Lafayette, led by Chicago developer Warren Barr, filed for bankruptcy protection in December, after New York-based Amalgamated filed a foreclosure suit. Amalgamated is owed $102.8 million, and the debt is secured by the condo development and other Renaissant property, valued at $61.3 million, according to court records. Neither Giuffre nor Peter Blain, an attorney representing Amalgamated, could be reached for comment Tuesday. Park Lafayette is the largest new condo development in Milwaukee, but has sold only a handful of units.

Another large patio coming to area tavern as smoking ban looms

I reported last week that Horny Goat Hideaway, a brew pub on Milwaukee's south side, had begun construction on a large patio and outdoor entertainment area.Now comes word that Muskego Gateway Entertainment Complex is adding a 600-square-foot patio outside its building at S67W19491 Tans Drive, Muskego -- just east of Racine Ave., about one-half mile south of I-43. Gateway, which includes a sports bar, banquet room and billiards hall, is seeking Plan Commission approval for the project. The commission meets Tuesday night. Gateway's owners are moving to get the patio completed by July 5, when the statewide smoking ban for restaurants and taverns takes effect, said Jeff Muenkel, Muskego planning director. That ban doesn't apply to outdoor patios.

Developer seeks OK for downtown West Bend apartments

St. Paul-based developer Real Estate Equities is seeking approval for a 36-unit townhome apartment project planned for downtown West Bend. The conceptual plan will be reviewed Wednesday by the Plan Commission. It's proposed for a city-owned site, totaling around 2.5 acres, on the west side of Wisconsin St. The parcel was formerly a railroad freight yard. Real Estate Equities is proposing two- and three-bedroom townhomes, said John Capelle, the city's community development director. The project would be financed with federal tax credits given to developers that agree to lease apartments at below-market rents to people earning no more than 60% of the area's median income. Real Estate Equities has received credits from the Wisconsin Housing and Economic Development Authority that total $6.8 million over 10 years.

Homebuyers scramble as mortgage rates jump

The era of record-low mortgage rates is over. The average rate on a 30-year loan has jumped from about 5 percent to more than 5.3 percent in just the past week. As mortgages get more expensive, more would-be homeowners are priced out of the market _ a threat to the fragile recovery in the housing market. And if you wanted to refinance at a super-low rate, you may have missed your chance. Mortgages under 4 percent are still available, but only for loans that reset in five or seven years, probably to higher rates. Rates are going up because of the improving economy and the end of a government push to make mortgages cheaper. For people putting their homes on the market this spring, rising rates may actually be a good thing. Buyers are racing to complete their purchases and lock in something decent before rates go even higher. "We are seeing some panic among potential buyers who have not found houses yet," said Craig Strent, co-founder of Apex Home Loans in Bethesda, Md. "They're saying: Man, I should have found a house three weeks ago or last month when rates are lower." It's all about affordability. For every 1 percentage point rise in rates, 300,000 to 400,000 would-be buyers are priced out of the market in a given year, according to the National Association of Realtors.

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