Sign up for any or all BizTimes newsletters and stay informed of all the latest innovations, news and industry tips.
 
BizTimes Daily

Tuesday, October 16, 2007

Davis is Republican budget maverick

As the only Assembly Republican to break ranks and vote in favor of Wisconsin Gov. Jim Doyle's compromise budget bill Monday, Rep. Brett Davis (R-Oregon) was compelled today to explain his decision.
The Assembly voted 53-44 against Doyle's bill, which had been approved by the Senate, leaving Wisconsin as the only state in the nation without a budget.
Davis is receiving criticism from some of his Republican colleagues and conservative talk radio outlets. In a statement today, Davis said, "On Monday, Oct. 15, the state Legislature voted on Gov. Jim Doyle's Special Session budget bill. As the only Republican in either the state Assembly or state Senate to vote in favor of the bill, I want to explain why. Put simply, when you take out the political rhetoric from both the Republican and Democratic parties during this budget process and focus on public policy, the governor's bill represents a compromise that a majority of my constituents would support. The governor's budget bill is not perfect, but there are a few issues that stand out: lowering property tax increases and investing in health care, education, and public safety. I've learned that when you're working on a nearly $58 billion budget bill with 132 other elected officials with strong opinions, you are not always going to get your way. It doesn't mean you have to give in, but there is a place for true compromise and it's time. Not just by the leadership of both political parties, but by every legislator that has a vote. This action must happen soon or state residents will soon see the dramatic impact of not having a budget. To me, no state budget is an unacceptable answer. I'm calling on my fellow legislators to join me. We must move the state forward.”
Doyle said, "Extreme elements of the Republican Assembly have again won out by not supporting this compromise. Under the Constitution, it is the Legislature's job to pass a budget, and for nearly nine months they have failed to do it. They have failed once again and do not seem to have any plan on how to meet their duty. The only budget the Republican Assembly has passed slashes health care, education, and public safety, and I will not let that happen. Lawmakers have created a fiscal nightmare for this state. The cost to operate school buses, pay heating bills, and maintain roads has gone up, and lawmakers refuse to deal with it. The state is spending more than we are taking in, and we will be unable to fund essential services that protect the health and safety of our citizens. The people of this state count on their legislators to make the tough choices necessary to lead this state, and they have failed. The Legislature's failure has real and far reaching consequences for families and businesses in this state. In the coming weeks, all across the state, homeowners will see an increase in their property taxes because the Legislature has failed to do its job. I hope that lawmakers get the message now – we are nearing an emergency."
Assembly Speaker Mike Huebsch (R-West Salem) is holding his ground in opposition to Doyle's bill. "Our state budget is more than three and a half months overdue, and Democrats are still clinging to the notion that taxing first and asking questions later is the only way to get it done. Thankfully, (Monday's) referendum on Gov. Doyle's $1 billion tax hike made it crystal clear that Wisconsin won't accept that excuse," Huebsch said. Wisconsin is the eighth-highest taxed state in the nation. That rank was too high in February when Gov. Doyle proposed $1.7 billion in new taxes, it was too high in June when Senate Democrats proposed $18 billion in new taxes, and it's too high today. Gov. Doyle and Senate Democrats negotiated with themselves to craft a new budget for (Monday's) session, and there was still a bipartisan vote against it."
Read ongoing coverage of the budget impasse and its impact at WisPolitics.com, a media partner of Small Business Times. The budget deadlock also is being debated in a recent edition of the Milwaukee Biz Blog.

Advertisement

Cheese production flourishes in Plymouth

Masters Gallery Foods Inc., a leader in the private label, retail and food service cheese business, today announced it intends to build an $8 million addition to its Plymouth packaging and distribution plant.
The expansion, which could create up to 40 new local jobs, would double the size of the company's facility at 411 County Highway PP and enhance the firm's production, warehousing and shipping/distribution capabilities, said Jeff Giffin, president and chief executive officer of Masters Gallery Foods.
The company hopes to begin site development later this year and complete the expansion in late 2008, Giffin said.
"Masters Gallery Foods has seen significant growth over the past several years, and expanding our facility will help position our company for even further success in the national marketplace," Giffin said. "In addition to increasing our warehouse and distribution capabilities, the expansion will allow us to reconfigure manufacturing operations to enhance efficiency and better incorporate 21st century technology into our business.  It's an exciting, dynamic time for our company - this proposed expansion is testament to that."
Jeffrey Gentine, the company's executive vice president and son of late company founder Leonard "Butch" Gentine, said, "Plymouth has been Masters Gallery Foods' home from the very beginning. We've built a successful family business here, with a dedicated local workforce and some of the best cheese suppliers in the country. We are proud to be part of the Plymouth community, and we are thrilled to be growing right here in our hometown."
Masters' existing plant was originally built in 1989 and expanded in 2000. The company is working with the City of Plymouth on the possibility of establishing a tax incremental finance (TIF) district to help pay for the expansion and related infrastructure and to help enhance neighboring properties.  
"We anticipate moving forward in the very near future and are certainly hopeful that a new TIF district will help Masters Gallery Foods complete our expansion goals," Giffin said.
Plymouth Mayor Don Pohlman said the TIF is important to making Masters' new plans for growth a reality.
"Masters has been an important and committed part of the Plymouth community for many years," Pohlman said. "Its presence has had a significant economic impact here.  Masters is a fine corporate citizen, and we are glad to see this Plymouth original succeed and grow. This expansion is positive economic development that will add jobs, grow our local tax base, increase commerce and strengthen our city."
The Masters' announcement comes just weeks after Sartori Foods Corp., another Plymouth-based cheese maker, announced plans to build a 110,000-square-foot plant on 24 acres north of Highway PP and halfway between Highway 57 and Willow Road. The Sartori facility will be the first tenant in the city's new South Industrial Park. The company's future plans for the facility also includes a 130,000-square-foot second phase and a 100,000-square-foot third phase.
Another major Wisconsin cheesemaker, Sargento Foods Inc., also is based in Plymouth.

Housing slowdown prompts A.O. Smith to close plants

A slowdown in the American housing market is prompting A. O. Smith Corp. to close its production plants in Scottsville, Ky., and Mebane, N.C.
The Milwaukee-based manufacturer of electric motors and water heaters also plans to close a smaller plant in Budapest, Hungary.
The company today reported third-quarter net earnings of $24.7 million, or 79 cents per share, which was up from $17.0 million, or 55 cents per share, in the same period a year earlier. The firm's quarterly sales were $553.5 million, down 2 percent from the same period a year ago.
"Although we are pleased with our operating results in the third quarter and the first nine months of the year, we are concerned about the outlook as we enter 2008," said Paul Jones, chairman and chief executive officer of A.O. Smith. "The weaker-than-expected housing market has negatively impacted existing plant utilization rates in our residential hermetic motor businesses."

Genesee Depot company launches green division

Genesee Depot-based Mitchell Pace & Associates, a manufacturers' representative company in the commercial and construction products industry, has launched a new division to provide providing sustainable and other green building products to contractors in Wisconsin and the Upper Midwest.
The new division for the 69-year-old company is called Mitchell Pace Environmental and was created in response to the increasing interest in building products that are healthy alternatives and have minimal adverse impact on the earth.
"Architects, developers and contractors are more frequently asking for sustainable and green building products for new buildings, additions or renovations," said Jeff Pace of Mitchell Pace Environmental. "Our company has deep experience in sustainable and healthy building products through our residential-oriented Safe Building Solutions company. That knowledge, combined with Mitchell Pace & Associates' solid grasp of the commercial construction market, will allow us to be an even greater resource for people and companies involved in commercial building projects."
Mitchell Pace Environmental initially will offer EcoTimber flooring, IceStone surfaces and AFM Safecoat paints, and is lining up a variety of other environmentally friendly commercial construction products.

We Energies sells land in North Woods

We Energies announced today that it has completed the sales of more than 2,500 acres of land in northern Wisconsin the Upper Peninsula of Michigan to the Wisconsin Department of Natural Resources (DNR) and The Trust for Public Land (TPL).
The land sold to the DNR includes more than 500 acres in Florence County, and the transaction with TPL encompasses approximately 2,000 acres in Michigan's Upper Peninsula.
Woods Creek, a main tributary to two of Wisconsin's designated Wild Rivers, runs through a portion of the 500 acres sold to the DNR. Woods Creek provides upstream protection for the Popple and Pine Rivers and is a Class 1 brook trout stream.
"It's gratifying to take ownership of these remarkable lands and to assure they will be available to our children and grandchildren," said DNR Secretary Matt Frank. "We Energies has carefully tended to these wild places and the state is honored to take over that duty. We would not have been able to do this without the state's unique Stewardship Fund, the tool that allows us to preserve what's so special about Wisconsin."
DNR ownership of land in and adjacent to the Spread Eagle Barrens Natural Area, also in Florence County, will maintain the existing protection of this unique oak-pine barrens landscape. Spread Eagle Barrens has been identified as a land legacy area and has been recommended as a priority for meeting Wisconsin's future recreation and conservation needs.
The 2,000 acres sold to TPL are located in Upper Michigan's Sturgeon River Gorge Wilderness in the Ottawa National Forest.
"This is a rare opportunity to conserve a spectacular wilderness area for public use," said Shaun Hamilton, Director of TPL's Northwoods Initiative and manager on the project. "The transaction protects breathtaking Sturgeon Falls and adds more than six miles of the Sturgeon National Wild and Scenic River to the Sturgeon River Gorge Wilderness. Just east of this wilderness area is a ten-mile portion of the North Country National Scenic Trail. Natural areas like this must and can be protected."
The price for the land sales was not immediately disclosed.
The latest transactions are part of We Energies' overall sale of 11,000 acres in the Upper Peninsula and northern Wisconsin. The company completed the sale of over 7,400 acres of land in Upper Michigan to Wild River Properties, LLC in July 2007.

Ruth's Chris Steak House comes to Wisconsin

Ruth's Chris Steak House Inc. announced the opening of its first Wisconsin restaurant, with a new franchised location in Middleton.
"Ruth's Chris Steak House is excited to continue its growth by opening this beautiful restaurant as our first Wisconsin location," said Craig Miller, chairman, president and chief executive officer of the Heathrow, Fla.-based company. "We are fortunate to have great franchise partners, and we are confident the Livesey Co. will successfully bring Ruth Fertel's legacy of sizzling steaks and superb guest service to the Madison area."
Located in a Frank Lloyd Wright-inspired building, the Middleton restaurant includes a large, horseshoe-shaped bar, stonework and three fireplaces.

Marcus to manage refurbished Orlando hotel

Marcus Hotels and Resorts, a division of The Marcus Corp., today announced it has been selected to manage the four-star Venturella Resort and Spa in Orlando, Fla. Marcus also will provide technical and pre-opening services for the project.
The property, which opened in 1988 as the Riu Hotel, is undergoing a $22 million renovation and will reopen in mid-2008.
"Marcus Hotels and Resorts is the perfect partner to manage the renovated Venturella Resort and Spa," said George Venturella, an owner of the hotel. "Marcus Hotels has vast experience in hotel and resort management. The company's success is the direct result of its business formula. That formula involves offering uncompromising guest service, containing costs and growing revenue."
When it reopens, the newly renovated Venturella Resort and Spa will feature a Mediterranean/Tuscan theme. Situated on slightly more than six acres near the entrance to Walt Disney World, the 155-room hotel will have two restaurants, a lounge and a spa, as well as more than 7,000 square feet of meeting space. The property will also feature new landscaping, including a lake with a beach.
"We are very pleased to be selected to serve as the management team for the Venturella Resort and Spa," said Bill Otto, president of Marcus Hotels and Resorts. "This four-star property will truly be a gem in the Orlando destination market. We look forward to exceeding the expectations of Venturella guests in every area of their stay as well as growing revenue for the hotel."
Otto said the Venturella agreement is another step forward in the company's strategy to grow primarily through management contracts. In addition to the Venturella property, Marcus Hotels has added seven properties to its portfolio in the past 12 months, increasing the total rooms under management to more than 5,000.

Annual Baird award goes to M&I

Marshall & Ilsley Corp., the Milwaukee-based parent company of M&I Bank, is the recipient of the 2007 Baird Management Excellence Award.
The award was to be presented today to M&I chairman Dennis Kuester during a luncheon at Pier Wisconsin on Milwaukee's lakefront
"“Marshall & Ilsley Corp. is a nationally recognized leader in the financial services industry and a valued business partner to Baird," said Paul Purcell, Baird's chairman, president and chief executive officer. "The company is also a tremendous corporate citizen, generously sharing its success to make Milwaukee and the other communities it serves better places to live and work. It is an honor to recognize M&I as the recipient of the 2007 Baird Management Excellence Award."
Created in 1981, the Baird Management Excellence Award recognizes companies that consistently demonstrate superior performance on behalf of customers, employees, shareholders and the communities in which they operate. Baird selects winners in consultation with officers of the Executive MBA Alumni Association at the University of Wisconsin-Milwaukee.

Bank Mutual adds to board of directors

Bank Mutual Inc., the fifth-largest financial institution holding company headquartered in the State of Wisconsin, announced today that David Boerke and Richard Brown have been elected to the bank's board of directors.
Michael Crowley Jr., chairman, president and chief executive officer of the Milwaukee-based company, said, "We are extremely pleased to have two persons with the qualifications, experience and community standing of Messrs. Boerke and Brown join the bank's board of directors. We will greatly benefit from their insights as we endeavor to implement strategies for the Bank and improve the products and services which we offer our customers."
Boerke is principal and commercial real estate advisor of the commercial real estate group, of The Boerke Company Inc., a member of the Cushman Wakefield Alliance, and president of Boerke Advocates, Inc., both commercial real estate companies. In addition,. Boerke acts as a real estate developer and investor, including the development as a principal or on behalf of clients or partners, of more than 30 commercial development projects, including a variety of office, retail and industrial properties. He also is a private equity investor through Antietam, LLC and Market Street Investors.
Richard Brown was an audit partner with KPMG LLP, an international public accounting firm, until his retirement in April 2006. His experience with KPMG included serving as managing partner of KPMG's Milwaukee office during the last four years before his retirement.

State headlines: Point tries to keep AIG in city

Stevens Point officials are trying to keep AIG-Travel Guard within the city limits. AIG announced earlier this year that it plans to build a new headquarters for its 800 employees. TOLD Development is making a push to land the insurance company and has made an offer to purchase 20 acres of land in Plover for the new headquarters. Read more in SBT's daily roundup of headlines from newspapers across the state at www.biztimes.com.

Milwaukee Biz Blog: Taxpayer Choice Act

U.S. Rep. Paul Ryan (R-Wis.) has proposed the Taxpayer Choice Act, which would repeal the Alternative Minimum Tax and provide a simpler system of personal income taxation. Read more about his plan in today's Milwaukee Biz Blog.

 

SBT Around Town: Women & Public Policy Luncheon

The Women's Fund of Greater Milwaukee held its Women & Public Policy Luncheon at the Midwest Airlines Center recently. The keynote speaker was Adele Simmons, vice president of Chicago Metropolis 2020. A panel discussion took place afterward, focusing on the importance of early childhood education. To see a photographic slideshow of the event, view the latest edition of SBT Around Town.

Local stocks slide again

The BizTimes Stock Index lost 2.50 points to close at 177.22 Monday, and local stocks plummeted today in another volatile session of early morning trading. The largest local decliners this morning were A.O. Smith Corp. (down $3.90 to $41.10) and Weyco Group Inc. (down $1.21 to $31.79). The largest local advancers this morning were Manpower Inc. (up $1.42 to $69.64) and Marcus Corp. (up 53 cents to to $20.51). The BizTimes Stock Index was created by Small Business Times and is monitored by North Shore Bank. The index, which measures the stock values of publicly held companies based in southeastern Wisconsin, is updated daily and can be viewed at www.biztimes.com.

West Bend resort sold

Timmer's Resort on Big Cedar Lake has been sold to George Prescott, a West Bend businessman and philanthropist, for nearly $1.8 million.

The 6.9-acre property in the town of West Bend in Washington County is located on the east side of the 1,000-acre lake. The restaurant and eight cabins, used previously as part of a summer resort, had been on the market since December 2005.

Jack Timmer, the previous owner of the resort, initially was asking $3.5 million for the property. Timmer said he completed the transaction with Prescott within seven days of negotiations last week.

Timmer said he had larger offers on the table but preferred Prescott's offer because "it was a 'clean deal' with no financing."

Prescott issued a written statement about the transaction, saying he appreciated the history of the property, which had been in the Timmer family since 1864.

"Timmer's is the only resort left of the original hotels and lodges on Big Cedar Lake," said Prescott, adding that he feared "some other buyer might not appreciate the lake and its history."

Prescott said he would work to preserve the restaurant, and small improvements will be made in the near future.

Even with the pending sale, Timmer's restaurant has remained open for business. The restaurant is operated by Meredith Imekus.

The sale of the property was completed by Terri Fredrich of First Weber and Prescott's GP Management Services.

Prescott is the former owner of Prescott's Supermarkets. Three years ago, the Prescott family made a $2.1 million donation to fund research into Parkinson's disease. Prescott also recently finished building a new multimillion dollar home on Big Cedar Lake, which is near the Timmer's property.

Advertisement

  • Wis Business.com
  • On Milwaukee.com
  • Big Shoes Network