BizTimes Daily

Thursday, September 13, 2007

Exclusives in this week's SBT

Gordon Segal, who founded the crate and Barrel retail empire in Chicago 45 years ago, still actively manages his company with a keen eye for retail designs. Segal's weekend home is in the midst of southeastern Wisconsin's rolling Kettle Moraine, where he is an advocate for Old World Wisconsin. Segal shares his business insights in the cover story of this week's Small Business Times. Other highlights from this week's SBT include a story about the Milwaukee Athletic Club's rich 125-year history, a report about a change in direction for the Association for Corporate Growth in Milwaukee and a Technology Spotlight on software that helps companies manage their human resource functions.

Advertisement

Future 50 awards go to 'cool companies'

Meet some of the fastest-growing companies in southeastern Wisconsin with the annual Future 50 program presented by the Council of Small Business Executives (COSBE). The Future 50 companies are profiled at www.biztimes.com.

What makes these Future 50 companies so cool? Well, Small Business Times asked that question, and you can find out by going to www.biztimes.com/cool, where you'll learn how these innovative companies are doing "cool things" to position themselves as preferred employers in a tight labor market.
Also, the latest edition of SBT Around Town features a slideshow of photographs from Tuesday night's reception to honor the Future 50 winners at at the Lakefront Brewery in Milwaukee.

CDW Berbee to expand with new tech center in Fitchburg

CDW Berbee announced today it will open a new cutting-edge enterprise data center and office building near its corporate headquarters in Fitchburg in 2008.
The new structures will collectively total 70,000 square feet of additional space, doubling CDW Berbee's data center capabilities to serve clients and providing offices for its growing work-force.
The company will break ground today at the future site of the data center in the Fitchburg Technology Campus. A company spokeswoman told SBT this morning that the new site will initially create 50 new jobs.
"Since CDW Berbee opened its doors in 1993, they have brought more than 500 new jobs to the state of Wisconsin," said Fitchburg Mayor Tom Clauder. "I am excited to see them on a path of continued growth and look forward to their sustained investment in our workers, and our community."
"The ground-breaking for our new enterprise data center comes as we approach our first anniversary with CDW. It testifies to our tremendous growth in the last year and highlights strong growth prospects for 2008," said Paul Shain, senior vice president of CDW Corp.
In October 2006, Berbee Information Networks Corp. in Fitchburg was acquired by Vernon Hill, Ill.-based CDW Corp. a provider of technology products and services to business, government and education.
The new Enterprise Data Center will be CDW Berbee's third and is expected to begin serving clients next spring.
"The new facility will be built with more than twice the power and cooling specifications of our existing data centers," said Phil LaForge, director of CDW Berbee's hosting and managed services practice. "When combined with managed services, it will provide our customers with a robust and resilient hosting platform that will help grow their business, reduce cost and achieve regulatory compliance."

Moneypenny will leave Visit Milwaukee for Door County

Jack Moneypenny, the vice president of sales for Visit Milwaukee who plays a key role in bringing conventions and events to the city, will leave the organization next month to become the president and chief executive officer of the Door County Visitor's Bureau.
"It's a great opportunity for me," Moneypenny said. "I always wanted the chance to be the president of a bureau."
Moneypenny has worked for the Greater Milwaukee Convention and Visitors Bureau, which became Visit Milwaukee, for more than 10 years.
"I think Milwaukee is a great (visitor's) destination," he said. "I'll always believe that."
Doug Neilson, president and CEO of Visit Milwaukee, said, "You always hate to see good people go, but we certainly are extremely proud and excited for this opportunity for him."
Neilson said Visit Milwaukee will conduct a nationwide search for Moneypenney's replacement.
"Obviously his position plays a key role in what we do here," Neilson said.

Jockey launches new line of men's underwear

Kenosha-based Jockey International Inc. today announced the launch of its GO Collections underwear, a new line of high-performance underwear for men with active lifestyles.
Developed using technologically advanced body scanning research to ensure the garments move with a man's body, GO Collections underwear also includes unique properties that address the specific demands of men on the go.
According to a recent survey conducted on behalf of Jockey, nearly two out of three American men have experienced underwear discomfort during a workout or other athletic activity. The top underwear issues for active men include: underwear that rides-up (34 percent); discomfort from moisture (34 percent); elastic that is too tight or too loose (25 percent); and discomfort from heat (21 percent).
Jockey International said its GO Collections underwear is designed to address those concerns through unique construction and fabrication that provide superior support, fit and comfort, as well as innovative features such as moisture management, quick-drying technology and breathable fabric.
"Jockey has a long history of being at the forefront of using technology and innovation to develop new product offerings," said Tim Pitt, vice president of global marketing and advertising. "Based on a deep understanding our customers' wants and needs, the GO Collections underwear was created to deliver valuable features and benefits that cater to the demands of an active lifestyle."
GO Collections underwear offers two distinct men's lines within the collection, GO Stretch Classic and GO Mesh. GO Collections garments are available in Brief, Low Rise Brief, Boxer Brief and Midway Brief. The suggested retail price is $19.50 for a two-pack, and the underwear is being featured at J.C. Penny stores.

Actuant acquires Illinois manufacturer

Actuant Corp. announced today that it has acquired Templeton, Kenly & Co. Inc. (TK) for approximately $48 million in cash.
Funding for the completed transaction came from the Actuant's revolving credit facility.
Headquartered in Broadview, Ill., TK produces hydraulic pumps and tools, mechanical jacks, wrenches, and actuators. Its products are sold under well established brand names including Simplex, Uni-Lift and Pow'r-Riser. TK generated approximately $33 million in sales in the last year, and has approximately 120 employees.
TK will operate within Actuant's Industrial Segment, which includes Enerpac.
Mark Goldstein, chief operating officer of Actuant, said, "TK is a great addition to our global industrial platform. Their leading positions in the mechanical jack product line and the railroad end market represent attractive market extensions for Actuant, and we are excited about the prospects for utilizing our global distribution network to accelerate the sales of these products. In addition, TK's hydraulic pumps and tools are an excellent complement to our Enerpac product line. TK president Tom Danza and his management team have been successful in creating a growth platform, and we look forward to them joining the Actuant team."
Headquartered in Butler, Wis., Actuant is a diversified industrial company with operations in more than 30 countries.

Midwest Airlines reports record month

Midwest Air Group Inc., the Oak Creek-based parent company of Midwest Airlines, today reported record traffic and load factors for the month of August.
The company reported a 28.2-percent increase in traffic, which outpaced a 22.8-percent increase in capacity, resulting in a 3.4 percentage point increase in load factor, compared with August 2006.
Midwest's revenue per total available seat mile decreased 1.6 percent in the same time period.
Midwest is in the process of being acquired by TPG Capital L.P. and Northwest Airlines Inc. for $17 per share.

We Energies begins environmental pilot project in Pleasant Prairie

Construction has begun on a pilot project to significantly reduce carbon dioxide emissions at the We Energies power plant in Pleasant Prairie.
The project is the first of its kind in the United States. The partners in the project are We Energies, Alstom and the Electric Power Research Institute (EPRI).
The system will separate carbon dioxide from a slipstream of boiler flue gas at the 1,210-megawatt (MW) power plant. The unique process for separation was developed by Alstom, a manufacturer of power generation systems, equipment and services.
The construction of the carbon separation facility is scheduled for completion in late 2007, with startup anticipated at the end of the year. The project will remain operational for at least one year. During that time, EPRI will conduct extensive testing to collect data and evaluate technology performance. Results of the demonstration project are expected to be published in late 2008.
The Alstom process uses chilled ammonia to dramatically cool flue gas, thereby increasing both the volume and the rate at which carbon dioxide can be isolated in a highly concentrated form.
"The development of cost-effective carbon capture technology is one of the most important environmental challenges facing the utility industry in the 21st century," said Gale Klappa, chairman, president and chief executive officer of Wisconsin Energy Corp., the Milwaukee-based parent company of We Energies. "This pilot is a crucial step in the research and development process necessary for achieving a long-term technology solution."

Shopko to open more Express pharmacies

Shopko Stores Operating Co. LLC announced today that the company expects to open two additional Shopko Express pharmacy stores in mid-2008.
The new stores will be opened in Appleton and in the nearby Town of Buchanan.
Shopko Express is a neighborhood drug store format focused on providing professional pharmacy services, health and wellness products and information, home business solutions, photo processing, as well as a convenient assortment of food and beverages and traditional drug store merchandise. Shopko started the Express strategy in 2005 and currently operates stores in Howard, Ledgeview and Port Washington, Wis.
"This announcement is exciting in that it represents another step forward in our overall growth plans. It also reinforces our excitement about the prospects for the entire Express store strategy," said Michael MacDonald, chairman and chief executive officer of Shopko.
Shopko Stores is an affiliate of Sun Capital Partners Inc.

Mandel donation will help transform ACRE program

A gift of $105,000 from Barry Mandel, president of Mandel Group Inc., will fund Marquette University's Associates in Commercial Real Estate (ACRE) program for the next three years.
The program will also undergo changes aimed at enhancing students' experience. The three-year-old program, started by Mark Eppli, Bell Chair of Real Estate in Marquette's College of Business Administration, educates, trains and prepares minorities for careers in commercial real estate throughout southeastern Wisconsin.
"We really feel strongly that there should be more minority representation in commercial real estate in the Milwaukee area," Mandel said. "Fundamentally, there is not enough opportunity for minorities in commercial real estate and I felt as a company we were in a position to offer a path toward this profession.”
This year the program will incorporate changes to its curriculum. The class will be smaller and all students will work on an actual commercial real estate deal with guidance from the program's industry partners, Eppli and his colleagues. Additionally, the industry partners will serve as mentors to the ACRE students.   
"I feel this could be a national model for other commercial real estate programs," Eppli said.  "The ACRE students will be immersed in commercial real estate by actually working on a real development deal, which will really bring the classroom to life.  It's not hypothetical."
"People like Barry Mandel have been tremendously instrumental in the program's success so far and his gift will ensure its future success," Eppli said.

Moore proposes bill to protect homebuyers

In the wake of a nationwide home mortgage crisis, U.S. Reps. Gwen Moore (D-Wis.) and Paul Hodes (D-N.H.) introduced legislation Wednesday to protect homebuyers from risky loan practices.
The Homebuyers Protection Act would require all subprime loans to include an escrow account for the life of the loan - just as prime loans do - so that subprime borrowers aren't hit with a large tax bill at the end of the year, but rather pay on a monthly basis. The huge tax bills can often contribute to early foreclosures, Moore said.
The legislation also would help to prevent faulty appraisals - and the higher homeowner taxes that result from them - by requiring a licensed appraiser to appraise all residential homes when a consumer seeks a mortgage. The requirement also would provide assurance to the secondary mortgage market that the home is properly appraised, Moore said.
"This legislation is about putting the interests of homebuyers first. These safeguards would protect our consumers, but would also benefit the secondary market and our economy," Moore said. "Buying a home is daunting enough and this legislation would help to protect consumers against risky financial practices that can lead to foreclosures."

Discovery World names captain for the Denis Sullivan

Discovery World announced that Hugh Covert has been chosen as senior captain of the Denis Sullivan sailing vessel in Milwaukee.
In his new position, Covert is leading marine educational and conservation missions for Discovery World.
Covert, 46, spent much his life in the Upper Peninsula of Michigan, where he operated a saw mill and gained experience building docks, repairing engines and fostering his love for tall ships. Most recently, he spent seven years a captain of the Manitu, a 114-foot, two-masted schooner out of Traverse City, Michigan.  
"We are excited and pleased that Hugh has joined us," said Michael Cudahy, co-chair of Discovery World. "His experience in and around tall ships, as well as his proven leadership with the Sullivan as a relief captain makes Hugh the perfect choice for Discovery World."
"Ever since I first laid eyes on the Sullivan, I was keen on expanding my role with her," Covert said. "Getting my feet wet as captain during two of our winter passages proved to be an enlightening and adventurous experience."
The Denis Sullivan schooner will leave for its winter passage in late September and will navigate its way through the St. Lawrence Seaway, out the North Atlantic and down to Miami and the Bahamas.
"My plan is to create more opportunities for adventure, education and just plain fun on the Sullivan," Covert said.
Details of the southern passage are still being developed and will be published at www.discoveryworld.org.

State headlines: Cable companies don't budge on Big Ten Network

The Wisconsin Badgers will make their Big Ten Network debut Saturday, but thousands of fans won't be able to watch, because local cable television companies have not been able to reach a deal to carry the network. Read more in SBT's daily roundup of headlines from newspapers across the state at www.biztimes.com.

Milwaukee Biz Blog: Wisconsin Development Fund

New North Inc., a business coalition for economic growth in northeastern Wisconsin, is calling for the state Legislature to approve Gov. Jim Doyle's proposed budget hike for the Wisconsin Development Fund. Read more in today's Milwaukee Biz Blog.

Stock market perks up

The stock market snapped out of its funk this morning, sparked by an analyst upgrade for General Motors Corp. and McDonald's Corp.'s doubling of its cash dividend for shareholders. The BizTimes Stock Index fell .74 points to close at 176.31 Wednesday, but local stocks bounced back with the broader market today. The largest local advancers this morning were Kohl's Corp. (up $2.38 to $55.65) and MGIC Investment Corp. (up $1.77 to $30.70). The largest local decliners were Brady Corp. (down 96 cents to $36.09) and Harley-Davidson Inc. (down 54 cents to $46.81). 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.

Developer's revised Park East plans include 2 hotels

Rebuffed in its request for tax incremental financing (TIF) assistance from the City of Milwaukee, Chicago-based developer RSC & Associates has submitted a new development proposal for a vacant two-acre block in the Park East Freeway corridor bordered by Milwaukee, Jefferson and Lyon streets and Ogden Avenue.

The company's new, $65 million, 288,825-square-foot proposal calls for two extended-stay hotels, five townhomes and a 100-unit apartment building. Parking would be centralized in the interior of the block. The project also includes 6,880 square feet of retail space.

The hotels would have 228 total rooms. RSC has been planning to have a Hyatt Place boutique hotel in the development. The company's latest plans show a Hyatt Place hotel and a Hyatt Summerfield Suites hotel.

RSC revised its plans for the block after city officials balked at the firm's request for $9 million in TIF assistance. The company's previous $70 million, 481,000-square-foot development plan for the block included 127 residential units, a 143-room Hyatt Place hotel and 80,150 square feet of retail space. City officials said they did not want to subsidize a project that would compete with existing hotels and stores in downtown Milwaukee.

RSC said that without the TIF assistance, it could not afford to build a large parking structure for the project. Therefore, the retail and commercial space was almost totally eliminated in the updated plan.

According to RSC, the new development plan will provide a similar amount of tax revenue, but fewer permanent jobs (64 to 74 instead of 150-200) and fewer construction jobs (230 instead of 310) than the previous plan.

However, unlike the previous plan, Department of City Development officials are supporting the new plan, according to DCD spokeswoman Andrea Rowe Richards.

In a letter to RSC chief executive officer Rich Curto, DCD Commissioner Richard "Rocky" Marcoux said RSC's new proposal "appears to conform to the zoning regulations imposed by the Park East redevelopment plan and it also complies with the city's adopted master plan for the Upper Water Street District."

Curto could not be reached for comment.

The Milwaukee County Economic Development Committee will review the updated development plan at its meeting on Monday, Sept. 17. RSC plans to purchase the property from the county. The county must approve the development plan before the sale of the property closes.

RSC plans to begin construction of the hotels, retail space and townhomes by the end of the year and complete that work in early 2009. Construction of the apartments would begin in early 2009 and be complete in 2010.

The company also has an option to purchase and plans to develop the vacant two-acre block to the west of the site from Milwaukee County.

Advertisement

SBT Partners

  • Wis Business.com
  • On Milwaukee.com