Milwaukee Biz Blog

The past few months have seen much debate over the 27th Street exit on Interstate 894 as part of the Wisconsin Department of Transportation’s reconstruction and expansion project of I-94 from the Mitchell Interchange to the state border.

The debate is an important one, impacting people's homes and businesses. With much at stake, the debate has become understandably heated. The problem with heated debates, however, is that often times facts get fried.

First and foremost, there is a belief that as a result of this plan, the 27th Street exit will be closed completely. This statement is misleading and fails to tell the whole story.

While it is true that the exit to 27th Street along westbound I-894 for traffic coming from the south will close under current WisDOT plans, all other access to South 27th Street will remain as it does today. As the Small Business Times reported in the BizTimes Real Estate Weekly bulletin, “Southbound traffic coming from the downtown area and eastbound traffic coming from the west would still be able to exit at 27th Street.” Businesses and homes along 27th Street will remain completely accessible to those exits.

This is an important point, because the access points that will remain open to 27th Street are those most heavily traveled. According to information from our city engineer, approximately 16,000 vehicles exit I-894 via S. 27th Street every day, but only 1,500 of those cars – less than 10 percent - utilize the exit that would be closed.

This means the vast majority of vehicles that currently use the 27th Street exit to reach the homes and businesses along this corridor will still be able to under the current plan.

Second, I cannot support a plan that destroys people's homes. The alternate proposal WisDOT considered in an effort to maintain full access at South 27th Street would have required the demolition of ten single-family homes and two 8-unit apartment buildings.

Forcing people from their homes and reducing the city’s property tax base are not alternatives I can support. That is why I have - from day one of this project - urged the state Department of Transportation to design a freeway that not only improves safety and the flow of traffic, but one that avoids the destruction of people's homes.

Which leads to the third and final point: the City of Milwaukee has been engaged throughout this process and has consistently urged WisDOT to produce a plan for 27th Street that is fair to business owners and residents in the area. My commissioner of public works and my city engineer made this point in a letter to WisDOT on Aug. 21, 2007, and in conversations throughout the 27th Street debate. My message has been perfectly clear: keep 27th Street fully open, AND don't destroy people's homes.

Any suggestion that the City of Milwaukee has not fought for this issue is either unfair or uninformed. I understand that when people's businesses and homes are involved, debate can become heated and facts can get fried. But cooler heads must prevail.

As mayor, I will continue to push WisDOT for a plan that keeps all of 27th Street open AND saves people's homes. Those who agree should stand with me.

Tom Barret is the mayor of Milwaukee.

There is finally national concern in the news today about rising foreclosures in the housing market. Unfortunately, this is last year's news.

I wrote about the rise in residential foreclosures in December 2006 and touched upon it again in January 2007. Crain's Chicago Business finally wrote something about it in July 2007. Most of the national business news channels hadn't really featured this until late in 2007. Why's this suddenly an issue? It has been an issue for more than a year for many people.

One of my former students is now in real estate. He says it's busy even though there are so many problems in the mortgage market. He says there are several factors worth investigating:

What happens when the bank takes all the escrow money to cover the shortfall and nobody else gets paid?
Trying to get rich by buying foreclosures is nonsense. Most homes in foreclosure haven't been maintained for years.

Plus, most are sold without inspection or a guaranty of clean title.

What happens to the tax income the government gets when property values go down? Do developers who can't unload the condo glut get government bailouts?

He is right about buying foreclosures. Forget the midnight real estate programs on TV that hype buying foreclosures.

If you think you're going to get a pristine house that has been in foreclosure, guess again. Sure, there might be a few exceptions, but don't hold your breath.

What's next? Smaller property taxes?

What about new assessments of houses? Every government agency figures it's going to get an increase due to the larger assessment they always get from property taxes.

Newsflash to all government agencies and school districts: start looking at trimming your budgets by 10 percent to 20 percent for the next couple years. Can't do it? I guess your degrees in administration are not as good as you profess. Just like there is profit and loss, budgets can go up and down. They don't just go up and up.

Don't say there's no room for cuts. A recent article on school districts said some superintendents are making more than $300,000. Does that sound reasonable to those who have lost jobs at major corporations in the last five years? I don't think so (especially when you see the extra car allowance for these people at $12,000 a year). What are they leasing? Maserati Quattroportes?

There's a lot of fat in those budgets. Start cutting - and don't start with the music courses. Start with administrative perks that have gotten bloated over the years as well as the multiple superintendent positions.

Compare yourself with executive management at a corporation to justify your perks. Many corporations have cut back. Have you? What about those that crank out mediocre products? They are either bought out by a competitor or go out of business. They don't keep getting funded every year by a tax levy. They are out the door.

Many districts are mismanaged and administrators are going to find out the well has run dry in their districts. Properties are losing the values that overzealous tax assessors have assigned to them.

There is one house north of Racine, in a small suburb called Wind Point on Lake Michigan that was foreclosed. The bank or the real estate agent thought they could get a huge return on it. They put it on the market for $595,000 more than a year ago. Though it wasn't worth it, they thought it would command that price because it was in an affluent neighborhood.

The taxes on the property just went up several thousand dollars. The assessor thinks it's worth a lot. That house is now $410,000 without one serious offer on it. Looking at it more than a year ago, I said it should sell close to what the mortgage is on it. That would be somewhere in the upper $300,000s. It's time to adjust the taxes down.

There are still a lot of houses getting into the foreclosure process. Most Chicago-area suburbs that were looked at a year ago still have many houses going into the foreclosure market.

In comparison to about a year ago when I wrote the first column about foreclosures increasing, look how things have progressed.

Junk is going to be discounted while quality items are going to remain high priced. With cars, you don't see 0 percent financing on a Lexus, Infinity or other vehicles in demand. Maseratis that sell for $120,000 are going out the door faster than they are coming into the dealers.

Will there be a lot of new houses and condos for sale at bargain-basement prices? Don't count on that. Builders will take less money, sure, but they won't give houses away. As for condos, some buildings will become apartments until the market bounces back. This is happening already.

Many are hyping real estate courses to take and books to buy that discuss foreclosures.

Most foreclosure properties will be trashed before they get to the market. While you might get them inexpensively, what are the costs to fix them up? Who's going to pay a premium once they are put back on the weak market? It sounds like the formula for success has a couple flaws.

To recap 2007, the housing market, new-car market and the general consumer economy have reflected what we have been pointing out here for several years. The economy may be a bull market for some, but for many, it has been a bear market since Sept. 11, 2001.

Carlinism: Quality is quality. There never is a fire sale on quality.

James Carlini is an adjunct professor at Northwestern University. He is also president of Carlini & Associates in Chicago. He can be reached at james.carlini@sbcglobal.net or (773) 370-1888. This column originally appeared at www.midwestbusiness.com, a media partner of Small Business Times.

Dear readers: It's time to bring you updates on two recent blogs I wrote.

Update No. 1. The adventures of John Jazwiec
As you may have heard, the Milwaukee Police Department has been informed by attorneys representing RedPrairie Corp. president John Jazwiec that he no longer wants to pursue his complaint about an alleged home invasion.

If you recall, Jazwiec sent an e-mail to Mayor Tom Barrett on Oct. 1, detailing an alleged Sept. 27 incident, in which Jazwiec said a gunman invaded his home on Milwaukee's east side and held him and his family hostage, before stealing some computers and a cell phone. Jazwiec told Barrett he had not contacted the police about the incident. Jazwiec said he and his neighbors in the 3100 block of Marietta Avenue had agreed they "can't trust the mayor or the police."

Jazwiec told Barrett his next step will be "the de-annexation process and our large per capita tax revenues which we can then use to fund police, schools, and real paved roads."

Police began investigating when neighbors expressed concerns about the incident after Jazwiec had sent e-mails to other East Side residents. Jazwiec then left town on a business trip to London.

On Thursday, Milwaukee Police spokeswoman Anne Schwartz said, "I have been informed by detectives investigating allegations made by John Jazwiec that Milwaukee Police have been contacted by Mr. Jazwiec's attorneys and they have informed us Mr. Jazwiec no longer wishes to pursue the matter originally reported to police regarding an alleged home invasion … The case is not closed, because his wife still reported a crime."

When informed about Jazwiec's latest stunt, Milwaukee Ald. Michael D'Amato issued the following statement:
"Several weeks ago John Jazwiec, chief executive officer for RedPrairie and a resident of Milwaukee's 3rd Aldermanic District, loudly reported that a crime was committed at his home that included his family being held hostage by a gun-wielding assailant.  At the time, many of us raised questions about his claims because of the bizarre behavior of Mr. Jazwiec.
"This morning Mr. Jazwiec's attorneys contacted the Milwaukee Police Department indicating that he wanted them to stop pursuing this case. Mr. Jazwiec reminds me of a spoiled little boy who throws a tantrum trashing his parents' home in order to get attention, then just wants it all to go away when his father comes home. If only life were that easy.
"In fact, Mr. Jazwiec's actions have unnecessarily besmirched the reputation of one of Milwaukee's finest and safest neighborhoods. Many residents have genuine concerns about crime in their neighborhood that seem to have taken a back seat to Mr. Jazwiec's sensational claims. They deserve not only an apology, but also the truth about exactly what happened that night at Mr. Jazwiec's home, if anything.
"I plan on meeting with both the MPD and the City Attorney to request that they assess Mr. Jazwiec for the total police costs incurred during this episode. Public safety is the number one priority for the citizens of Milwaukee. Police pursuing sensational claims about incidents that may have never occurred reduces their ability to follow-up on real crime. I believe it is unfair that the taxpayers of the city of Milwaukee carry the burden of the cost of the investigation of these spurious claims."

Update No. 2: Downtown parking meters
They say you can't fight city hall. Well, of course you can. Heck, you can even make suggestions, and they listen. And sometimes, they even take action!
A few weeks ago in this space, I wrote a blog that was very critical about "Luke," the new digital parking meter system that was recently installed in downtown Milwaukee. Yes, I fully realize that this was not the most pressing or urgent issue facing civilized society. Maybe it's right up with there with the great Milwaukee Fonzie statue debate.

Regardless, the blog inspired follow-up comments from several people, some of whom agreed, but many of whom were critical of my take on Luke. The critics said the new parking meters were easy to operate and were an upgrade over the garden variety, coin-plugged meters.

Of course, those critics missed the point. I wasn't complaining about digital parking meters. I wasn't even saying that the digital meters were difficult to operate. I was merely complaining that there were absolutely no directions to explain to anyone that the digital meters even existed. There were only numbers on signs next to parking spaces. There was no context as to what the signs meant or what a law-abiding motorist should do.

How can you feed a parking meter, if you don't know one even exists? Nothing directed people to go find the nearest digital box with a "P" on it.
The blog simply suggested that the city should place stickers on the signs, telling people to look for the nearest "P" box, where they could pay for parking.

Well, guess what? The signs now have stickers, telling people to look for the nearest "P" box. Actually, the stickers read, "Note space number. Pay at any meter designated with 'P.'"

Cecilia Gilbert, permits and communications manager for the Milwaukee Public Works Department, said the blog, along with input from the good folks at the Milwaukee Downtown Business Improvement District #21, prompted her agency to react.

"I do know that we did get a report. Milwaukee Downtown - we had engaged them in disseminating information about the Luke. They saw people staring at it, looking blank. They had suggested stickers," Gilbert said.

So, our civilization takes another step forward.

Of course, we'll see how much we still like our fancy-pants "Luke" when it's zero degrees, the wind is howling at about 30 mph, there's two feet of snow and we have to walk an extra block or so to a distant parking meter, remember our sign number, take off our gloves and fumble for the right change or pull out our wallets and stick in our credit cards. And then wait for the receipt.
Maybe then we'll understand why "Cool Hand Luke," the character played by Paul Newman who inspired the name of the new parking meters, kicked off the heads off of those confounded things in the first place.

Steve Jagler is the executive editor of Small Business Times.

As the legendary Ricky Ricardo used to say, when John Jazwiec gets back from his trip to London in a couple of weeks, he's going to have "a whole lot of 'splainin' to do."

Jazwiec, who is the president of RedPrairie Corp. in the Town of Brookfield, lives with his family on Milwaukee's east side.

The Milwaukee Police Department has launched an investigation after … Well, rather than try to describe it, I'm just going to paste here the text of an e-mail Jazwiec allegedly sent to many residents in his neighborhood and to Mayor Tom Barrett. The subject line of the e-mail that police are investigating says, "Taking Action," and the e-mail says it was sent from Jazwiec. Here's the text of the e-mail, dated Monday, Oct. 1:
"I am the resident that had an armed man walk in my house with a police badge. He held the my family (wife, myself, and two young daughters) hostage. We did not have any cash and had recently lost our debit cards. So I bargained with him to take computers and iphones to pawn. He left and thankfully we are safe. Because we were not sure it was not an inside job we did not dare go to police headquarters. The 3100 block of Marietta is not taking this standing down. We met Friday and agreed that we can't trust the mayor or the police. We instead are going to hire a private agency to walk our block. We will also be prominently showing signs on the block what we are doing it in lieu of a demanding a rebate on our taxes which by the way are going up 3.3%. Talk is cheap. This will get in the press I promise you. And our block is one that lazy criminals will just avoid. Anyone else want to 'outsource' beat control? Next step - the de-annexation process and our large per capita tax revenues which we can then use to fund police, schools, and real paved roads.
John Jazwiec
President of Redprairie"

Rumors of the bizarre alleged incident spread throughout the east side and eventually to the Milwaukee Police Department.

"We did try repeatedly to investigate. But he (Jazwiec) wouldn't cooperate," said Anne Schwartz, spokeswoman for the police department.

Jazwiec finally officially reported the incident to police by phone Tuesday, but then left town on his trip overseas, Schwartz said. Police plan to question him in depth when he returns, she said.

Concerns in the neighborhood prompted Milwaukee Alderman Michael D'Amato to send his own e-mail to his constituents. D'Amato chastised Jazwiec for not cooperating with police. Here's text from D'Amato's e-mail:
"There are serious questions as to the veracity of this report at this point. Apparently this gentleman (Jazwiec) was far more interested in contacting the press than he was the MPD. Crime is a serious concern to us all and is something the MPD, the Mayor and I take very seriously. While there has been an uptick in crime in our neighborhood over the past several months, the police have reacted with an increased presence and have made a number of arrests. Despite these incidents OUR NEIGHBORHOOD IS SAFE. DO NOT be afraid to walk outdoors and encourage others to join you. DO NOT lock yourselves in your home and call police immediately if you see something suspicious. Like you, I live in this neighborhood with my spouse and children. I will continue to walk the streets, bike to the store and enjoy the company of my friends on my porch.  I’ll also lock my door and warn my children to beware of strangers. Do not allow a single man with a remarkable story convince you that this is not a great, safe and united neighborhood."

Schwartz issued the following e-mail to concerned residents:
"Milwaukee Police have no evidence that an incident described by a resident in the 3100 block of N. Marietta has occurred. The resident has refused multiple attempts by Milwaukee Police to investigate the incident he is alleging. Milwaukee Police have attempted to contact this resident through his business, by telephone and by appearing in person at his residence as recently as today, October 2, 2007. Milwaukee Police can not investigate an incident that has not been reported to us. If residents in the area have safety concerns, they are encouraged to contact District 5 Community Liaison Officer Ray Robakowski (935-7258) or District 5 Captain Tony Smith (935-7250). Officer Robakowski can assist with the formation of a block watch and can provide information on any criminal activity that has been reported to police. The Milwaukee Police Department appreciates that we all want to live in safe neighborhoods and we commend the residents of this East Side neighborhood in their concern for each other. We also want to assure these residents that if a crime trend is developing in any particular neighborhood, we will provide them that information at the District community meetings."

A spokeswoman for RedPrairie said she could not comment on the incident. She said Jazwiec had departed for London Tuesday and was not available to comment.

In the past, Jazwiec has complained about the state's business climate and government. He first spoke voiced his criticisms as a keynote CEO panelist at the Northern Trust Economic Trends Breakfast in January 2006. To view a Web cast of that speech, visit www.biztimes.com/site/videos/sbtimes_et/jazwiec.

Steve Jagler is executive editor of Small Business Times.

Former Federal Reserve Chairman Alan Greenspan admitted earlier this month that he was caught by surprise by the subprime mortgage collapse and the depths of the credit crunch and the housing bubble.

Greenspan said he never saw it coming.

But Bob Chernow did. Chernow, a Milwaukee businessman, has more than 30 years of experience as a stock broker, a wealth manager and a futurist.
In a keynote speech about the future of the financial services industry during a conference held by the World Future Society in Toronto in July 2006, Chernow predicted the subprime collapse and the mess that would follow.

"In 'hot' real estate markets, many buyers avoid mortgage insurance because lenders encourage them to take out second mortgages as down payments. These second loans have higher interest rates and are often adjustable to variable interest rates. These types of loans encourage speculation by artificially allowing buyers to stretch what they have to buy homes they normally could not afford," Chernow told the Toronto conference last year.
"According to the Federal Reserve, 35 to 40 percent of all recent mortgages were interest-only variable loans. This type of mortgage allows buyers to buy homes when prices are inflated. It is interesting that the last time interest-only and balloon mortgages were popular was during the 1920's. This was a major reason that banks became insolvent during the Depression and was a reason why amortized mortgages were created, as these types of mortgages let buyers pay down principal.
"What is wrong with interest-only mortgages? Well, for one, the homeowner has no economic stake in the property. He can walk away if he cannot pay. He is, in essence, 'leasing' the home in the hope that property values will increase. This is the 'greater fool' theory of investing. What's that joke? If you don't see a greater fool, look in the mirror. Regardless of what the new bankruptcy law dictates, banks will be hard-pressed to collect on much of this debt."

Fast forward to today, with soaring mortgage foreclosures, skyrocketing late payments, home builders and home lenders going out of business and financial institutions tightening their credit standards. The U.S. Department of Commerce reported Thursday that the national median sales price of homes fell 7.5 percent compared with last year, the largest year-over-year decline in 37 years.

If you've got a home on the market right now, you're feeling the pain.

So, what's next?

I asked our resident futurist, who manages other people's money, to give us five new predictions. A short while later, he e-mailed his response. Here's what Chernow sees in his crystal ball:

1. "The lack of regulation and oversight in the hedge fund arena will lead to a major blow-up within the year. In great part, this is because hedge fund leverage is dramatically different than regulated brokerage firms."
2. "A coalition of Syria-Iran-Turkey and the United States will work to stabilize Iraq. This will occur after the 2008 elections, but preparatory work is already underway (Mr. Chernow, a Vietnam War veteran, delivered a talk in 2003 titled, 'The Nature of Terrorism & Advice on Combating It in the Future.')"
3. "Demographic shifts in our population will continue the move from the suburbs to the cities. Milwaukee's population should increase by 10 to 15 percent over the next decade. According to David Pierce Snyder, a leading futurist, one of the fastest-growing industries over the next decade will be the conversion of industrial and commercial properties to residential properties."
4. "Over the next decade, there will continue to be a movement to reduce the cost of health care through technology. This will be true, despite the fact that there will be a shortage of 1 million nurses by 2010. Note: I also predict that nurses will get more control over their schedules and training and that doctors and administrators will change their view of the nurse-doctor relationship to a more positive one."
5. "The manner in which education is dispersed, as well as the purpose of education, will change dramatically. Technology, practical exercises, computer games, lectures through the Internet, the place of corporations and the involvement of families in the education of their children will all combine to reduce the cost of education. (Chernow is part-owner of The Learning Connection, an early childhood learning company located in Florida & New York)."

Thanks, Bob. I'd like to add one prediction of my own: The 2008 U.S. presidential election will be the filthiest, most disgusting election of all time. Special interest groups on both sides will spend more money than the candidates and will drive the agenda. Half-truths and outright lies will be rampant. To save our democracy, it's time to rebuild it from the bottom up.

Steve Jagler is executive editor of Small Business Times.

My wife, Carole, and I opened the first Crate & Barrel store in 1962. We've since opened over 150 stores around the country. In addition to outfitting our stores with merchandise like wall hangings, floor coverings and tabletops to suit regional tastes, we had to equip our stores with their walls, floors and rooftops as well.

In every instance where we have built a new store we have done the design and construction management in-house. Not only did we develop relationships with designers and manufacturers for our products, we were able to work with contractors and tradespeople throughout the country on our buildings.

Since each Crate & Barrel is designed for its particular site, there are hundreds of details to be decided as we build stores that are distinctive, efficient, economical and enduring. To say there is a learning curve involved is an understatement.

Building anything is a full-fledged education in itself.
Fortunately, Carole and I have a place of inspiration near our weekend home and I would recommend it to anybody who is in the construction business or works in a building trade.
Known as Old World Wisconsin, and located in Eagle, about 30 miles west of Milwaukee in Waukesha County, it is America's largest outdoor museum of farm and village life. With its 65 historic structures filled with 50,000 artifacts spread in ethnic villages over 570 acres, you can see how the place would be of interest for those who construct today's buildings.

I think anybody interested in construction would be immediately struck by the countless ways our immigrant ancestors adapted to life in pioneer Wisconsin.

I mentioned earlier how Crate & Barrel avoids a cookie-cutter approach and builds its stores to account for regional tastes and environments. In the store we opened at Mayfair Mall in 2005, we used local stone for interior and exterior architectural elements, oriented the building's details for best solar and thermal efficiency and used Wisconsin prairie plants in the landscaping, both as a foundation planting and in a roof garden. I can find these materials today from a dizzying variety of sources, whether local or from around the globe. I can get them delivered more-or-less on demand and assembled by the most efficient, safety-minded and productive workforce known to history.

Old World Wisconsin, my place of inspiration, gives us a picture of the much different reality the pioneer settlers faced. They were forced to use the materials and tools they had on hand. At the same time, both novice and skilled tradesmen were usually constrained by techniques they had brought from their homelands - for better or for worse.

The earliest settlers, fairly prosperous and from New York and New England, could build their economical saltbox houses and frame storefronts of durable virgin timber. Polish or Finnish immigrants who succeeded them on this cutover land were sometimes obliged to build with stumps a German settler would find unfit to burn. The Kruza Stovewood House, relocated to Old World Wisconsin from Shawano County, is an excellent example.

Buildings like these and the exigencies that caused them to be built in their particular manners can entertain the visitor for hours. One example shows how a 19th century building product developed in Wisconsin found its way back to the original Old World - where it is still used today.

The Grube barn, formerly of Dodge County and now at Old World Wisconsin, provides an example of a lost building form here. Its thatch roof ties the past to the present and the Old World to the New World in a most remarkable fashion.

The first Pomeranian settlers arrived here in 1839 and roofed their buildings with thatch. It was a material they were familiar with, and it was accessible before the days of mass-produced shingles.

It seems that during the latter part of the 19th century, the University of Wisconsin, already a leading research institution, began developing wheat strains for possible commercial production. One batch was rejected by these early food scientists - it produced only negligible amounts of grain, borne on minuscule heads on long, tough stalks.

But those stalks, it turned out, were perfect for thatch, and could produce a roofing material that would survive for 30 harsh Wisconsin winters.

Alas, Wisconsin builders had already replaced thatch with readily available wood shingles, but that wasn't the case in Europe, particularly England, where thatched roofs are still commonplace. The Wisconsin product proved as suitable as or even superior to the wheat strains that had been used there for centuries.

Then, in 1990, the old Grube barn was due to be re-roofed. Since that skill had not persisted locally, thatchers were imported from England. They brought with them their tools, their skills and their experience working with Wisconsin-bred thatch. Their Old World-meets-New World roof still protects the Grube barn at Old World Wisconsin and is just one of the many fascinating details you are free to experience at this magical spot. Won't you make a point of visiting this year?

You might want to bring your company along! Old World Wisconsin is a great teacher, inspiration and morale-booster.

Gordon Segal is the founder and chief executive officer of Crate and Barrel, a nationwide retailer of domestic goods and furnishings. For additional information about Old World Wisconsin, visit www.wisconsinhistory.org/oww.

Whatever you've thought about doing business in Shorewood in the past, it's time to think again! There's so much business and development action going on in Shorewood that unless you've been paying close attention, you're probably not up-to-date.
Shorewood offers attributes that make it ideal for locating a new business or developing a retail or multi-family residential project. 

Shorewood is a unique urban village - just minutes from downtown - with a well-educated, high-income population. Shorewood offers density, diversity and demographics, top-rated schools, responsive government and strong property values. 

Shorewood has created proactive plans aimed at attracting additional businesses and housing options:

• An innovative master plan for redeveloping the Village's Central District along North Oakland Avenue, East Capitol Drive and the Milwaukee River.
• Quadrupling the size of our tax incremental financing (TIF) district by including the entire Oakland/Capitol area, plus riverfront properties. This dramatically increases areas targeted for development, and facilitates increased public support of business activities that will benefit the village.
• A bold strategic plan for Shorewood's already top-rated schools.
• Simplified zoning rules to facilitate business development.
• A new Shoreland Ordinance, ensuring intelligent, ecologically-sensitive development on properties along the Milwaukee River.
• Design guidelines that encourage development of high-quality project.
• Streetscaping activities on North Oakland Avenue and East Capitol Drive that will enhance the area's attractiveness, calm traffic and improve safety on our two main commercial thoroughfares.
• A targeted marketing campaign that promotes Shorewood to key publics.

We've developed a roadmap for intelligent development that will benefit both residents and businesses by actively promoting thoughtful, careful development of successful projects that will benefit the community.

Shorewood has identified 20 top redevelopment sites, ranging in size from less than an acre up to nine acres. Almost all are on North Oakland or East Capitol. The sites are suitable for everything from multi-family housing to retail businesses and medical or commercial buildings.

Shorewood's schools are consistently ranked among the best in the state; a fact which helps to make the village an easy sell to families with children. School Superintendent Blane McCann says, "The schools are the center of the community here like nowhere else I've seen. People support superior education, and they support our programs in many ways."

Our Business Improvement District (BID) is proactive and works aggressively to attract and support businesses to Shorewood as well as helping existing businesses succeed. We're seeking unique, one-of-a-kind businesses that mesh well with the character of the community, rather than large national chains.

Our BID special events drive customers to Shorewood businesses. Not just the Shorewood Criterium bicycling race, but community movie night, Showcase Shorewood events and the Holiday Shopwalk help create awareness and store traffic.

The next logical step in promoting redevelopment has been the Shorewood Marketing Initiative, a targeted marketing campaign aimed at potential residents, realtors, businesses and developers. Beginning in May, ads in local magazines and online media, direct mail and public relations efforts have educated the marketplace about Shorewood. Themed "Just two feet from everything," the campaign features a free Shorewood Walking Kit, which encourages recipients to explore the village's unique shopping and entertainment venues, appreciate its unique and often historic architecture, and learn more about Shorewood schools.

It's time to consider the advantages of doing business in Shorewood. To learn more, click on www.villageofshorewood.org and click on Business & Development. Then call me at (414) 847-2700, and let's talk.

Chris Swartz is the village manager of Shorewood.

Some developers planning projects in the Park East Freeway corridor and City of Milwaukee officials are debating about whether or not the city should provide tax incremental financing (TIF) assistance for projects in the corridor.

The developers say TIF would allow them to do bigger developments creating more jobs and, eventually, a greater boost to the city's tax base.
While supportive of providing TIF financing in some instances, some city officials say they are reluctant to provide a subsidy for projects that compete with existing hotel and retail businesses and developments in the downtown area. After all, why should the tax dollars from existing businesses be used to help create new businesses to compete against them?

With so many residential developments in the downtown area in recent years, city officials have not provided TIF for residential projects unless they are used to assist in redeveloping heavily contaminated properties, such as the former Pfister & Vogel site, which is being redeveloped by Mandel Group Inc. into a large residential development.

But with a weak office market downtown, city officials approved a $25 million TIF for the new Manpower Inc. corporate headquarters, which is under construction. It should be noted that that project will bring about 1,000 jobs downtown.

Non-subsidized projects provide a boost to the tax base faster than TIF projects. If a TIF is used, the increased tax revenue from a development first must be used to pay back the money borrowed for the TIF funds before the local taxing authorities can collect the increased tax revenue. For that reason, local government officials prefer non-subsidized projects.

In some instances, a development could not occur without TIF assistance. But in others, a development could still succeed even without TIF help.

So when is TIF appropriate, and when is it not? Small Business Times posed that question to members of the region's real estate industry. Here are some of their responses:

"On developments that have a financial gap that needs filling if the economic benefits outweigh the immediate costs. Or where the community has a severely blighted area that it needs to be redeveloped and knows that the economics are such that whatever were to be developed on this challenging site would require an economic incentive to attract local developers to it." 

- Bob Gintoft, senior vice president of MLG Commercial.

"I believe TIF is the most effective tool a municipality can apply when it's leaders are wholly committed to redevelopment, growth and quality. Having worked in numerous communities, we see first-hand the benefits of strong and committed leadership at the municipal level. Developers, property owners and businesses admire and value that commitment. When a TIF district is properly conceived, planned and adopted, it sends the signal that a community is dedicated to making positive changes and that investment in that community is protected."

- Steve Holzhauer, principal, Eppstein Uhen Architects. 

"TIFs are only fair if they are structured to benefit a broad group of people in the community, not one or two of the mayor's buddies."

- Robert Clemen, managing member, InvestInLand LLC.

"It's an excellent tool to stimulate economic development that is widely misunderstood. When properly understood and applied, it can lead to incredible improvements to the quality of life for a community. Milwaukee (historically) has not fully embraced the concept, and as a result, the very place where it could bring the greatest benefits have not been realized. It should be used far more than it has been."

- Gary Billington, vice president of client relations for Plunkett Raysich Architects.

"1. TIF should be used to fund expansion or reconstruction of public improvements (streets, sidewalks, utilities) and creation of public spaces and amenities (parks, squares, public parking that supports enhanced density on adjoining parcels). These form the backbone of the public realm that will encourage/support reinvestment on private property. Private parking should not, and cannot under current state law, be built using TIF.
2. TIF should be used to acquire property that creates a blighting influence over other developable properties in the area. There is a 'public purpose' to buying out private property rights when the abuse of those rights results in the devaluation of adjoining property.
3. TIF should be used to stimulate catalytic development. Catalytic development should be very narrowly defined to include those unique or 'stretch' developments whose feasibility is clearly unattainable without creative financing. Catalytic developments should have demonstrable serial impact on adjoining real estate values - in other words, the positive appreciation of adjoining property, or the ability of adjoining developments to move forward 'but for' the catalytic project, should be a measure of a catalytic project's true value to the community. Just because an idea is unique in size, design, use, etc. should not be a reason for it's classification as a catalytic project. It must deliver repeat value for the community.
4. TIF should be used as an economic development tool. Regardless of all our efforts to improve our community, a community without jobs and job growth is in decline. We need to make secure those good jobs we already have - those in higher-paying, high-growth industries - and attract those that complement an overall jobs/economic development platform. We have yet to clearly articulate that platform, although many are at work on it. There needs to be a clear, logical and concise reason to locate your company here based on the unique attributes we offer. To entice you to consider moving or growing your company here, we have an economic development tool - TIF - that can help you overcome the friction of moving here or the cost of growing here. While it is unfortunate that we have to pay a significant share of our TIF resources to Fortune 500 companies, until every state restricts such incentives, we need to realize that there is no other way to stay in the game."

- An executive at a major Milwaukee multi-family residential developer who wishes to remain anonymous.

Farmers, government officials and activists are working together in Madison to plot a healthier future for the area's lakes. That's great news, because Madison's lakes add great value to the city and region, and have been abused for years, decades.

There is not the same level of cooperation in the Milwaukee area about the long-term health of the lakes and water resources here, and policy-makers should wince at the truth of the matter spoken in a Capitol Times story by this one Wisconsin official: "It's all a matter of will," said Kurt Welke, Wisconsin Department of Natural Resources fisheries manager for Dane County. "We have the brains and the political traction in Dane County that they don't have in a lot of other places."

Examples from the news around here:

• Communities in the region are draining each other's water.
• Developers have been allowed to build right on top of open space through which rain and snow naturally replenished underground water reserves.
• And the City of Waukesha tried twice in 2006 confidentially to get permission to remove up to 24 million gallons of water daily from Lake Michigan without returning a drop through treatment. Once that plan got outed, then ignored by Doyle, Waukesha shifted its water-diversion thinking with another environmentally-dubious twist: flushing treated water towards Lake Michigan through a tributary, like the Root River, or Underwood Creek, or the Menomonee River.

Can those rivers and streams safely absorb additional millions of gallons of less-than-pure water, especially during a rainstorm, without causing flooding or damaging the banks?

But again, the issue is being defined by "how-do-we-get-our-hands-on-more-water," not "what-is-the-right-thing-to-do?"

The DNR is working with Waukesha on some answers. If past practice tells us much, the public will be the last to know.

In Dane County, policy-making seems to be driven by consensus respect for the water, and proposals are talked about in the open.

In our region, policy-making is driven by behind-the-scenes maneuvering and money - big fees to consultants, knee-jerk approvals for annexations of farmland for development, billions ticketed for road expansion into rural areas.

While Dane County had tolerated sprawl, allowed manure to run into the lakes and dumped weed-killers into them, too, at least now it seems as if there is movement forward to correct past mistakes.

In southeastern Wisconsin, the mistake-makers are still calling the shots.

James Rowen is a writer, a former reporter and a former mayoral staffer in both Madison and Milwaukee. He is the author of The Political Environment blog.
 

Green is grabbing our attention like never before. Concerns about global warming and the environment are converging with priorities to regrow our economy and to lower energy costs for businesses and families.

Today, green isn't just about planting trees, preserving green space and recycling. It's about green technologies, alternative energies, green buildings and a greener economy. Milwaukee Mayor Tom Barrett believes there are economic opportunities to be realized by growing the green sectors of our regional economy. If you look at the green roofing industry, it has grown nationally by 25 percent last year. Locally, we boast about our energy innovators such as Johnson Controls Inc. and Rockwell Automation Inc. Green-related businesses, from consulting to carpentry, are responsible for one of the fastest growing job sectors.

The health of Lake Michigan will ultimately affect our local economy, as the Great Lakes are the largest source of freshwater in the world. Our image as a "fresh coast" is what can help us attract additional industries and talent to our region but we tarnish our image with each news story about sewer overflows. The City of Milwaukee's mission is to increase use of green technology to keep stormwater runoff from entering our sewer system, our rivers and Lake Michigan. 

Milwaukee's green plan is to influence individual actions, lead by example in use of green technologies and steer the actions of the private sector towards greener developments, greener industries.

So how are we doing? Milwaukee ranks No. 16 on a list of "greenest cities" according to SustainLane, an organization that it tracking the greening efforts of cities. Our city is among the top 10 in its use of green roofs, as noted by the industry. The Sierra Club named Highland Gardens, a Milwaukee Housing Authority development, one of America's Best New Developments. I'd like to share a few additional updates that I believe will raise our ranking next year.

Green buildings

• Buildings constitute 45 percent of energy consumption worldwide. Green building design maximizes use of natural light, reduces energy consumption and can also absorb stormwater. The City of Milwaukee continues to lead by example by its use of green roofs and green building designs with its own buildings. 
• The Housing Authority's Cherry Court celebrates its grand opening this month. This building not only features a green roof, it also includes flooring made from renewable and recycled resources such as bamboo, rubber, recycled fiber carpets, and linoleum that is made with natural products. The building itself is made with locally manufactured and recyclable concrete masonry. Sunshades at corner lounges optimize daylight and solar heat. A heat pump HVAC system will lower energy consumption, as will the Energy Star fixtures and appliances throughout the building. Low-flow toilets were added to the public restrooms to conserve water.
• This spring, a green roof will be added to the building that houses the Department of City Development and the Development (Permits) Center. 
• Wisconsin's first "green street" was opened in the past year in the Josey Heights subdivision, located in a central city neighborhood close to downtown. This street is made of impervious materials and will absorb stormwater runoff. In fact, the street, bioswales and other green features of Josey Heights will absorb 100 percent of stormwater runoff and prevent 1 million gallons of stormwater annually from burdening the sewer system.
• In the near future, the Development Center will provide information on green building technologies and local green contractors, to raise awareness and steer more building projects into the 'green.' 
• The Department of City Development is working with the Mayor's Office on environmental sustainability to develop green building standards. When requests for proposals are issued to develop vacant land, the City of Milwaukee places green building proposals higher on the ranking list. A green standard is being developed in conjunction with city-assisted projects as well. 
• The City of Milwaukee continues to explore options to use its economic development toolbox to encourage more green development.

Green economy, green jobs

• Consumer demand is growing for green innovations, contractors experienced in green technologies and low-cost green products. Milwaukee's Johnson Controls developed a new battery for hybrid cars, based on demand. From rain garden landscapers to water quality engineers, there is a local opportunity to grow jobs to meet the growing demands for these services. We're focused on expanding these industries in strategic locations. 
• Milwaukee has reclaimed Wisconsin's largest brownfield, the Menomonee Valley, producing 2,100 new jobs in 557,000 square feet of high performance, energy efficient buildings. A total of 70 acres of wasteland was converted to new greenspace, including the innovative Stormwater Park to absorb and clean runoff from the Valley Business Park. A decade in the making, this success story will continue to fuel job creation in the future.  
• Mayor Barrett declared the City of Milwaukee will lead a similar long-range effort to renew the 30th Street Industrial Corridor as a "Greenlight District" for jobs. This corridor features many underused sites, presenting an opportunity to expand businesses, especially green businesses. This reinvestment zone could include additional incentives to attract new businesses and fuel growth.

These are just a few of the many green highlights the City of Milwaukee has to share. For more information, please visit www.city.milwaukee.gov.

Richard "Rocky" Marcoux is the commissioner for the City of Milwaukee's Department of City Development.

Editor's note: See the latest in environmentally friendly technologies and products at the Green Pavilion of the Wisconsin Business & Technology Expo, May 2-3, at Wisconsin State Fair Park. For more information, visit www.biztimes.com/expo.