Volume 2 - Issue 16 - Circulation 3,500 Week of 4.16.09 to 4.23.09

MADISON - 4/22/2009 - Real estate developer Terrence Wall has upped the ante in the contest to build a new downtown library. The local real estate developer and president of T. Wall Properties is ready to donate $3 million toward the Madison Central Library -- provided the city moves forward with his vision for the project. "We're putting our money where our mouth is," said Wall. ...

Dane County - April 18, 2009 - The biggest property tax deadbeat in Dane County is hoping to shed the title by selling some of its holdings at bargain basement prices. Kraus Real Estate and Builders, Inc. of Sun Prairie next month will attempt to unload 60 properties that have contributed to an overdue tax bill of more than $815,000. The properties up for auction include condominiums, single family homes and undeveloped lots in the Liberty Square development on Sun Prairie's north side. It also includes 20 condo units in Fall River...

Ken Notes: Ouch! Perhaps the county could help out just a little by lowering the interest rate for a brief period. Lenders should also realize that by pushing too hard they accelerate the problem not the solution.

National - 4/22/2009 - Worse-than-expected news on unemployment and home sales Thursday dampened optimism that a broad economic recovery might be near. The Labor Department said initial claims for unemployment compensation rose to a seasonally adjusted 640,000, up from a revised 613,000 the previous week. That was slightly more than analysts' expectations of 635,000...

Madison Area - 4/22/2009 - Ten Wisconsin companies are included on this year's revenue-based Fortune 500 list. With 2008 revenue of $6.4 billion, American Family Insurance, ranking 388th, was the only Madison-based company on the list. It was sixth in the list of Wisconsin companies. Ranking 58th on the national list with revenue of $38.1 billion, Johnson Controls of Milwaukee, was the top-ranked Wisconsin company, followed by Northwestern Mutual of Milwaukee...

Ken Notes: We do have several branches and are growing several new companies that may make the list soon. The UW does also educate more CEO's "on the list" than any other school.

2008 report...

Ken Notes: Special thanks to Chris Richards, Christian D. Caulum, and Oakbrook.

2008 report...

MADISON - April 21, 2009 - After months of informal talks, Marcus Corp. is proposing to build a 275-room hotel - smaller than previously envisioned - to serve Monona Terrace. The hotel, which would incorporate the landmark Madison Municipal Building, is more modest than earlier discussed and far smaller than the 400 rooms recommended in a recent study and sought by the Greater Madison Visitors and Convention Bureau. Marcus, based in Milwaukee, declined to discuss costs or other details....

Ken Notes: 275 helps a lot! Plus plans on other sites.

MADISON - The Marcus Corporation is offering to build a second hotel in downtown Madison, but as negotiations with the city move forward, some are questioning whether the proposed hotel will have enough rooms. Linda Eggert reports...

Ken Notes: Video news story - better details...

Wisconsin - April 17, 2009 - Unemployment in Wisconsin jumped in March to its highest rate in 26 years, surpassing the national rate and signaling the deepening recession. The Department of Workforce Development reported Thursday that unemployment rose from 8.8 percent in February to 9.4 percent last month. That was the highest statewide rate since June 1983, when it was 10 percent. Unemployment is nearly twice as high as a year ago, when the rate was just 5 percent. The national unemployment rate in March was 9 percent...

Ken Notes: I still believe that he most significant problem will be the winners and losers based on who keeps their job. I think if we want to avoid a long term "downturn" we all need to share the burden a little. Of course we will eventually all share it via taxes on the back end but these figures are not even on the radar screens yet. If your are keeping track, the latest figure is around 40K for every US citizen just for recovery efforts plus almost that much (36K) for current deficits. I'd be happy to share my homework if anyone is interested...

MADISON - April 21, 2009 - MADISON - The Landmarks Commission voted against a plan to demolish 11 Downtown houses and refurbish eight others to make way for three apartment buildings in the 600 block of East Johnson and East Gorham streets. After the 5-2 vote Monday night, the proposal goes to the Plan Commission. The Landmarks Commission cited the loss of the 19th-century houses, the size and scale of the new proposal and the proximity of the project to the Fourth Lake Ridge Historic District, said Rebecca Cnare, urban design planner and acting preservation planner for the city....

National - 4/17/2009 - We hear this constant refrain that the banks aren't lending money, particularly money to buy homes. So I did a little snooping -- actually I started by going to the bank that holds my home mortgage, seeking to re-finance -- and lo and behold, I found out some very interesting things. My first stop was Wells Fargo, the bank that "holds" my mortgage. I write "holds" in quotation marks because they don't actually hold my mortgage. They only service the mortgage, collecting my monthly payments, escrowing my taxes and home insurance, and otherwise keeping me informed on the status of my mortgage. The true owner of my mortgage is Fannie Mae...

Ken Notes: A good case for local banks.

WISCONSIN - April 20, 2009 - Madison, Dane County and state officials are generally agreed that high-speed rail service linking Wisconsin's capital city with Chicago, Milwaukee and Minneapolis could provide a dramatic boost to this vital region. Now, however, they must move beyond agreement and high hopes to rapid response. The need is clear. The lack of fast, efficient passenger rail...

Ken Notes: I sat on the governor's (Thompson) rail advisory committee that reviewed this in in 2000. I agree with the need - but the variables are huge. This project needs strong leadership and support from rail lines and private sector to be viable.

WISCONSIN - April 17, 2009 - Increases in excise taxes hurt our industry -- brewers, distributors and retailers -- our workers, our communities and the millions of people who consume our products responsibly. Beer excise taxes are regressive, disproportionately inflicted upon lower- and middle-income Americans. In fact, the effect on households with the lowest incomes is 11 times greater than the effect on those with the highest incomes. Nearly 63 percent of beer in the U.S. is purchased by low...

Ken Notes: Why not go for the obvious win win here, an exemption for beer produced in the state. We keep or increase the jobs in the state, create a small incentive to buy local product and still generate revenue from those who believe beer made in St. Louis is drinkable...

WISCONSIN - This is a comprehensive data base of all business professionals in development, planning, government, commercial real estate, architecture, construction, and service providers to business. Any professional may enter his or her own business card for free. FutureWisconsin is Wisconsin's own social networking data base to promote new business in the state...

Ken Notes: Network with professionals doing business in the state...

Wisconsin - April 16, 2009 - When Wisconsin-based Johnson Controls Inc. announced this week that the company will locate a new battery factory in Michigan, the decision raised an obvious question: Why didn't Wisconsin gain the factory and the 500 jobs it will create? When Michigan confirmed that the Wolverine State lured the factory with nearly $150 million in tax breaks, another question occurred: Why didn't Wisconsin make a better offer? But however tempting it may be to wish Wisconsin could have captured 500 jobs, focusing on those questions will steer the state in the wrong direction when it comes to economic development...

Ken Notes: Too bad we could not have purchased Ray-O-Vac and given the asset to JC. As to the "bidding war" we need to come to the table with chips we just have to know when to fold...

Wisconsin - 1st quarter 2009 edition of "Wisconsin's Growing" and learn more about our state's business successes....

National - 4/20/2009 - The economy is still in decline but results from a new economic survey show evidence the recession is abating as more companies see rising demand for their products, taper plans for job cuts and report profit margins on the uptick. The latest quarterly survey by the National Association for Business Economics, set to be released Monday...

Madison - April 18, 2009 - For the first time in decades, the value of an average home in Madison has dropped, falling 1 percent in the last year to $245,424. But a modest rise in the value of commercial property and new construction has resulted in a 0.7 percent increase in the city's overall real estate value, according to figures released by the city assessor's office Friday. Even so, the $378 million in new construction was the lowest sum since 1999...

LOS ANGELES - 4/21/2009 - Federal Reserve Vice Chairman Donald L. Kohn said steadier consumer spending and home sales, together with favorable earnings results from some banks, may indicate that the U.S. economy is poised to stage a gradual recovery later this year. The Fed's No. 2 official, delivering the annual Hutchinson lecture at the University of Delaware Monday evening...

Recent commercial property listings from PropertyDrive.

Wisconsin - More than $336 million in federal stimulus money has been allocated to counties, cities, towns and villages in Wisconsin. Of that total, about $124 million has been allocated through the state Department of Transportation for road, bridge and transit projects. And more than $48 million in Housing and Urban Development funds has been allocated...

Ken Notes: Great Resource

The seller of real estate is required to file a Real Estate Transfer Return (RETR) with the County Register of Deeds when recording deeds of property conveyances. State statutes require those returns to be filed electronically beginning July 1, 2009. Below is a link to the electronically filed Real Estate Transfer data as of July 1st 2009 and forward. The data will be updated on a weekly basis...

Ken Notes: This link is a regular feature of WDN...

Treasury Department Debt to the Penny Link
CNN Money Scorecard
Government Recovery Website
Wisconsin State Budget Google News

Create a vibrant, innovative and prosperous entrepreneurial business climate, nurturing, connecting and celebrating entrepreneurs and their companies...

Ken Notes: A valuable resource worth visiting for all businesses in the state. A special thanks for BizStarts for compiling and sharing the resource!...

MADISON - April 20, 2009 - For the second time in four years, the Wisconsin and Southern Railroad has asked state officials for permission to close three crossings on Madison's east Isthmus - one of which could affect the operation of the proposed central park. The railroad is looking to close the Livingston, Brearly and Blount street crossings because of concerns over how Madison's population growth will affect safety at the sites. Closing the crossings would create two dead ends on either side of the tracks at each crossing....

Middleton - APR 23, 2009 - Madison-area workers looking to retool in a harsh economy will have one new option this summer and another one likely next year as Minnesota's Globe University spends $12 million to open two branches of its for-profit, career college network here. First up is Middleton, where campus director Brock Vander Velden said the 31,000-square-foot building under construction at 1345 Deming Way, east of the Marriott Madison West, is on track to open in mid-June. Degree programs in business, health care, criminal justice and other high-demand areas such as massage therapy and veterinary technology will start July 20, he said. ...

Ken Notes: Not to be confused with the Global Academy opening this fall in the former Famous Footwear building in Madison.

WISCONSIN - April 18, 2009 - It seems like every day we read more reports of Wisconsin companies forced to lay off employees because of the national economic downturn. With unemployment in the double digits in some Wisconsin cities, and 272,000 Wisconsinites out of work, the economic outlook seems grim. But last week, I happened across a bright spot of news: "Wisconsin Rapids plant to create 400 jobs." This headline stood out in the otherwise-gloomy Business Section. So I read on, and I learned that Energy Composites Corp. will begin construction on a new factory in Wisconsin Rapids this spring. In this challenging economic climate, Energy Composites Corp. must be onto something. Their business? Manufacturing blades for wind turbines...

Wisconsin - This section allows you to access any of our current space needs and acquire some brief detail regarding each. You'll notice that in addition to posting our current RFPs and RFIS, we are listing other significant needs for which we are seeking space....

Ken Notes: Brokers should check this often...

OPINION - April 16, 2009 - I hope something good comes of the area around Olbrich Gardens. That is such an attractive area with the woods and stream. It could very well have been a high-end residential development. I remember the "feed mill" and the "old sugar beet factory." A well-known architect designed several homes on the hill across the street from the factory as a small community for the workers there...

MADISON - April 17, 2009 - As a Madison resident, I support the development of a Downtown plan. I just wish instead of stopping at Blair Street it would continue east along the Isthmus, perhaps to the Yahara River. What a great way to help redevelop the east side of the Capitol. With both Capitol Heat and Power Plant and MG&E Blount Street plants ending their use of coal, it would be a great time to reclaim more of the Isthmus and make better use of such a unique location...

MADISON - April 19, 2009 - Standing inside 301 N. Broom St., you can't hear the clanging alarm bells or the "wheeoo!" of the siren, but there are clear signs this otherwise modern office building was once home to firefighters and the tools of their trade. There's the station house doors, never again to be swung open in an emergency, and the original foot-thick sandstone walls in the basement. A hose tower - used to dry out hoses when they still had mildew-susceptible cotton jackets - graces the entryway to one of the office suites. The rebirth of the old Fire Station No. 2, built in 1921, is not uncommon in Madison...

MILWAUKEE - Apr. 22, 2009 - The Department of City Development is updating the downtown comprehensive plan, and is holding a public workshop on Thursday, from 6 p.m. to 8 p.m. at the Todd Wehr Conference Center on the Milwaukee School of Engineering campus, 1047 N. Broadway...

Ken Notes: City of Milwaukee is updating its downtown master plan - details.

Wisconsin - Apr. 23, 2009 - Thirty-seven Wisconsin apartment developments, including several in the Milwaukee area, will receive tax credits that allow them to pursue additional financing to get built. The Wisconsin Housing and Economic Development Authority will announce Thursday the projects that received federal affordable-housing tax credits...

Milwaukee - Apr. 22, 2009 - John and Anne Nehring are moving forward on their plans to open an upscale grocery near downtown, nearly four years after their initial proposal. A 15,000-square-foot Nehring's Family Market is planned for the former Habhegger Wheel and Axle shop, at E. Brady and N. Water streets. The Nehrings have agreed to lease the building from New Land Enterprises...

WISCONSIN - April 23, 2009 - If you're shopping for a large block of office space, there's an ample supply throughout the Milwaukee area. That's one of the messages from Tuesday's Commercial Real Estate Roundtable Forum sponsored by the Commercial Association of Realtors Wisconsin. The event attracted nearly 200 people to the Italian Community...

Apr. 22, 2009 - There ARE retailers looking for space, despite the country's worst recession since the Great Depression. That's the message from brokers Josh Minkin and Peter Glaser, of C.B. Richard Ellis. They led a discussion on the Milwaukee-area retail market Tuesday at the Commercial Real Estate Roundtable Forum sponsored by the Commercial Association of Realtors-Wisconsin...

Milwaukee - Apr. 22, 2009 - The Hyatt Regency Milwaukee's $19 million makeover is nearly complete. I checked it out this morning. The place is looking pretty cool. The breakfast buffett restaurant and adjacent sports bar that once dominated the lobby are gone...

Milwaukee - Apr. 23, 2009 - Local developer Melissa Goins is partnering with Brinshore Development LLC, from the Chicago area, to build two affordable apartment projects on Milwaukee's north side. Brinshore, and Goins' Maures Development Group LLC, will receive federal tax credits to help finance the 36-unit Franklin Square, near the northwest corner of N. Teutonia Ave. and W. Center St., and the 24-unit Heart and Hope Place, at 3400 N. King Drive...

Lisbon - Apr. 23, 2009 - MLG Development has dropped its plans for a 100-acre residential and commercial development along Highway 164 between Good Hope and Plainview Roads in the Town of Lisbon, according to a report by our sister publication, the Sussex Sun...

Milwaukee - Apr. 21, 2009 - Two more people who agreed to buy condominiums in Milwaukee's Park Lafayette high-rise are suing the project's developer, seeking to kill the contracts--and a return of their earnest money deposits. The latest suits were filed in Milwaukee County Circuit Court by John Pocernich, of Denver, and David Wells, of Brookfield. They join three earlier suits that make the same claim: developer Renaissant Lafayette LLC started construction on the project's second tower before it reached the proper level of condo sales...

A single source for all economic development news for Greater Madison and beyond. Wisconsin Development News, (WDN) is published weekly by Ken Harwood.

Available to commercial brokers, developers, financial professionals, community planners, public officials, the press and others who have expressed an interest in Wisconsin development. All stories should link to their original source in the original context. These pages may contain advertising, and I encourage patronage of both our sponsors and the related advertisers and publications I link too.

We link to Editorial and Opinion articles each week, this does not suggest we agree with the stance of the author. The "Ken Notes" items are the opinion of our editor. We will include any comments or feedback sent to WDN. Ken also writes a monthly column for Capitol Region Business Journal and other state publications.

The focus for WDN is to create a positive view of economic development for the Greater Madison Region. The publication will also feature news from around the state, nation, and world that offers insight to policy, trends, and projects that may be of interest to the reader.

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Ken

Kenneth Harwood
WisconsinDevelopment.com LLC
P.O. Box 930234
Verona, WI 53593-0234
608.334.2174
ken@wisconsindevelopment.com