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Home > BizTimes Daily > Archives > April 14, 2006
Political opposition drives company out of valley
Published April 14, 2006 - BizTimes Daily
Opposition by two local politicians is prompting a company to abandon its plans to build a 200,000-square-foot corporate headquarters complex in Milwaukee's Menomonee River Valley and look elsewhere.
New Berlin-based BuySeasons Inc. had planned to build a new warehouse and distribution center in the valley.
However, Jalem Getz, president and chief executive officer of BuySeasons, which owns BuyCostume.com, an Internet retailer of costumes, said he was discouraged by opposition to his plan by Milwaukee Alderman Robert Donovan and U.S. Rep. Gwen Moore (D-Wis.).
Getz said Milwaukee Mayor Tom Barrett and the Department of City Development Commissioner Richard "Rocky" Marcoux had been supportive of his project.
Getz said he is in final negotiations over several potential sites for his new headquarters now, both in and out of the state of Wisconsin.
BuySeasons currently employs about 60 full-time workers, and between 300 and 350 seasonal workers. Getz said he expects to hire about 400 seasonal workers this year.
The company had about $30 million in sales in 2005, and Getz is projecting "significant growth" for 2006.
BuySeasons currently occupies about 81,000 square feet in New Berlin. The company wanted to move into about 200,000 square feet of leased space in the valley, with options to lease up to 400,000 square feet, Getz said.
BuyCostume.com's busiest season is Halloween, and Getz said the firm needs to move to a new facility by April 1, 2007, to be ready for that season next year. The city's Redevelopment Authority recently delayed action on BuySeasons' plans to move to the valley, after several members requested more information on the proposal.
Getz said the delay would have pushed his move back to May or June 2007, which would not give his company enough time to prepare for the Halloween season.
"We're a highly seasonal business and we need that time to get our systems built up," Getz said. "A May or June move would have put our business at risk."
The site that BuySeasons was looking at on the western edge of the Menomonee Valley next to the Miller Park parking lot was ideal for the company for several reasons, Getz said.
Many of the company's employees reside near the valley, and the site also would provide easy freeway access, Getz said.
"This was a happy compromise for our employees coming from the suburbs," Getz said.
Donovan said he would welcome BuySeasons to come to Milwaukee, but he didn't think the valley location was appropriate because so many of BuySeasons' jobs are seasonal.
"We've spent close to $50 million to revitalize the valley because of the premise that once we did this, the land would be used to attract family-supporting manufacturing type jobs," Donovan said. "I think the vast majority of the types of jobs that would be created would be part-time seasonal, with little or no benefits. I would hope he would consider other sites in the city. I don't know why he has a pre-occupation with the valley.”
Getz said his seasonal workers generally pay between $9 to $16 per hour, and most full-time employees at the company started as seasonal workers.
Donovan said he believed the company's seasonal wages are lower than Getz's stated range. However, Donovan declined to identify the source of his information about the wages.
A request for Getz to provide the names and addresses of employees who live in Donovan's district was not met, Donovan said.
“There's a discrepancy in the information I got from the pay and benefit structure,” Donovan said. “I thought it would be best if I got it from the horse's mouth. I wanted to talk to the constituents that work there. If they told me this was the greatest company to work for, it would have changed my opinion on the entire matter.”
There are several other sites in the city, particularly on the northwest side, that could be suitable for BuySeasons, Donovan said.
Moore, in a letter to Barrett, had expressed concerns that BuySeasons might not be the best return on investment, given the amount of resources the city has devoted to redeveloping the Menomonee River Valley.
"It appears that placing corporate headquarters and a distribution center in the Menomonee Valley departs from the oft-repeated goal of preserving this valuable land for light industrial and manufacturing development," Moore wrote. "Moreover, it is unclear from the information reported that the proposed project meets job quality and job density standards set out by the Menomonee Valley Partners."
Moore could not be reached for comment today.
Getz said he was disappointed that his proposal was opposed.
"It seemed like an excellent location," Getz said. "The mayor and Rocky (Marcoux, DCD commissioner) put us through our paces to make sure we met the requirements of the Menomonee Valley Partners. And we met them with flying colors.”
Getz said he doesn't want to leave the Milwaukee area or Wisconsin, but he has got to find the right site for his company, even if it is out state.
"The reality is, we need to grow our business," he said.
