CITY OF RIPON COMMON COUNCIL MEETING - Conference room, City Hall
Thursday, October 1, 2009 - 6:30 p.m.
1. Call to order/roll call
2. Adjourn to closed session under Wisconsin Statutes 19.85(1)(e) “Deliberating or negotiating the purchasing of public properties, the investing of public funds, or conducting other specified public business, whenever competitive or bargaining reasons require a closed session” RE: Developer’s agreement for financial assistance under TIF District #11
3. Adjourn (by 6:55 p.m.)
COMMON COUNCIL MEETING - Conference room, City Hall
Thursday, October 1, 2009 - 7:00 p.m.
I. Call to order/roll call
II. Discussion on 2010 City budget
Staff’s presentation of proposed 2010 budget
Council’s questions, comments, and discussion
Information requested for next budget meeting?
III. Announce next budget meeting – Tuesday, October 13th at 6:00 p.m.
IV. Adjourn
Wednesday, September 30, 2009
CITY COUNCIL, BUDGET MEETING ON THURSDAY
Posted by Aaron Kramer at 9/30/2009 09:42:00 AM
Tuesday, September 29, 2009
ANNOUNCEMENTS FROM THE CHAMBER
From Extreme Auto Body & 24 Hour Towing
Join us at our Open House - Saturday, October 3rd, 10 a.m. to 3 p.m. - Light refreshments, register for giveaways, and meet our Extreme family!
From Ripon College
Arts and All That Jazz - Friday, October 2, 5:30 - 9:30 p.m. - Great Hall, Harwood Memorial Union
A benefit auction for scholarships in the Arts - 1920's Speak Easy theme; live and silent auctions - $45 includes appetizers, dinner & 2 drinks - For more information or to register call 748-8351 or go to www.ripon.edu/aatj
From Tango/Uncorked
Australian Winemakers Dinner at America Restaurant - Thursday, October 1st - $45 per person (tax & tip not included) - Gathering 6:15; Seating 6:30; Guest Speaker Trevor Jones - Please call America at 748-3524 to book your reservation
From Ripon College
37th Ripon Performance of the Milwaukee Symphony - Sunday, October 11th, 7 p.m., Storzer Center - Conducted by Edo de Waart; special musical guests include Frank Almond on the violin and Joseph Johnson on cello - Adults - $15; seniors 62+; Ripon College faculty and staff - $12 - Youth age 18 and under - $8, Ripon College students - free - For tickets or more information call 748-8791
Posted by Aaron Kramer at 9/29/2009 04:45:00 PM
CITY TO HOLD FIRST BUDGET MEETING THURSDAY
The Ripon Common Council will hold the first meeting regarding the proposed 2010 budget this Thursday evening at 645 PM. The proposed budget includes a tax increase of 1.65 percent, mainly driven by the decrease in property values across the city. The meeting is open to the public
The council is tentatively scheduled to meet in closed session at 630 PM in regards to the proposed final agreement with the development firm of Boca Grande.
Posted by Aaron Kramer at 9/29/2009 04:35:00 PM
Monday, September 28, 2009
COUNCIL AGENDA - SEPTEMBER 28th
CLOSED SESSION - 6:15 p.m.
1. Call to order/roll call
2. Adjourn to closed session under Wisconsin Statutes 19.85(1)(e) “Deliberating or negotiating the purchasing of public properties, the investing of public funds, or conducting other specified public business, whenever competitive or bargaining reasons require a closed session”
RE: Developer’s agreement for financial assistance under TIF District #11
Adjourn to closed session Wisconsin Statutes 19.85 (1)(c) “Considering employment, promotion, compensation or performance evaluation data of any public employee over which the governmental body has jurisdiction or exercises responsibility”
RE: Employee health insurance issue involving the City’s labor unions
3. Adjourn (6:55 p.m.)
REGULAR SESSION - 7:00 p.m.
I. Call to order/roll call
II. Pledge of Allegiance/Invocation
III. Public communications and comment
IV. Consent calendar (Unless the Mayor, Council or staff asks that one or more of the items listed below be pulled, this list may be approved with a single vote.)
1. Common Council minutes – July 27th
2. Resolution – authorizing participation in DNR municipal dam grant program - Staff note: As of now, it’s unknown whether significant repairs are needed to our dam, but we will learn more as we continue studying this into 2010. In order to qualify for DNR grant funds toward the repairs that may be required, we need to approve the attached resolution. Funding for our share of project cost has not been determined as yet, but this is just to get the process going.
3. Request for street closure – “Tiny Terror on the Square” (October 29th) - Staff note: Ripon College and the Ripon Area Chamber of Commerce are again co-sponsoring “Tiny Terror on the Square”, a Halloween-type event for young children. They’re asking for closure of the 100 block of Watson Street {both sides} from 5:00-7:00 p.m. on Thursday, October 29th. This event went well last year, and staff has no objections to the request, subject to execution of a “hold harmless” agreement and proof of insurance coverage.
V. Other business
1. Resolutions – authorizing debt for downtown redevelopment projects
a. Providing for sale of $6,320,000 note anticipation notes - Staff note: This is for that portion of debt related specifically to the Ripon Inn & Spa project, which will be tax-exempt bonds.
b. Providing for sale of $3,875,000 taxable note anticipation notes - Staff note: This is for that portion of debt related specifically to the other renovation projects, which will be taxable bonds.
2. Presentation – current restrictions and citizen complaints on burning - Staff note: After meeting with staff, Mayor Kramer chose to step back on the burning ordinance issue to review the regulations (state/local) in place today, and get a report on complaints received from our citizens over the past year. The police chief, fire chief, and a state fire inspector will offer information that should give the Mayor and Council a better foundation as we consider tightening our requirements.
3. Request to reserve land for future expansion – Ripon Public Library - Staff note: On September 2nd, the CDA voted, if no proposals were received to redevelop the former Smuckers site by the September 4th deadline (which occurred), to recommend that Council “reserve” the east 100 feet of this site for possible future library expansion. A copy of the minutes and a map showing the land in question are attached.
4. Proposed new building façade grant program under TIF District #1 - Staff note: The approved project plan for TIF District #1, the original downtown TIF district, included approximately $30,000 to start a fund for downtown building improvement loans/façade grants. I’ve attached a proposal from Craig Tebon on how Main Street might administer a façade grant program for your review.
5. Proposed Ripon Area Fire District budget in excess of 5% increase - Staff note: As indicated in the attached page from the Ripon Area Fire District agreement, budget increases above 5% require approval of the governing bodies of all participating municipalities. The fire district board is proposing a budget that includes an increase of approximately 8%. Board Chairman Pape will address this issue and seek Council’s approval for the additional increase.
VI. Mayor’s communications and appointments
VII. Agenda items for future Council meetings
VIII. Adjourn
Posted by Aaron Kramer at 9/28/2009 04:12:00 PM
Insurer ranks state 8th in vehicle-deer collisions
SOURCE: Milwaukee Journal-Sentinel
Wisconsin ranks eighth in the U.S. for the likelihood of drivers crashing vehicles into deer, State Farm Insurance said Monday.
The likelihood of a Wisconsin motorist striking a deer is 1 in 116, Bloomington, Ill.-based State Farm said in a statement.
West Virginia was the top-ranked state with the chances of striking a deer there at 1 in 39. Michigan was second at 1 in 78. The average for the United States is 1 in 208, according to the State Farm analysis.
Using its claims data, State Farm estimates 2.4 million collisions between deer and vehicles occurred in the U.S. between July 1, 2007, and June 30, 2009. That's 100,000 per month and 18.3% more than five years earlier. That's roughly equal to a vehicle-deer crash occurring every 26 seconds. And those crashes are much more likely this time of year as the animal's annual mating season begins.
State Farm ranks second in private passenger car insurance in Wisconsin, with 12.9% of the market, according to the state Insurance Commissioner's Office. Madison-based American Family is No. 1, with 22.5% of the market.
Posted by Aaron Kramer at 9/28/2009 03:23:00 PM
Hicks-Sorensen: Relief for Fond du Lac after 'roller coaster' of Merc Marine saga
SOURCE: WisBusiness.com
Fond du Lac’s recent, unsettling experience with Mercury Marine -- one day the company was headed to Oklahoma and soon after officials said it would remain -- was an emotional “roller coaster” for most of those involved.
At least that’s the description from Brenda Hicks-Sorensen, president of the Fond du Lac County Economic Development Corp.
“I experienced some of the most incredible highs I’ve ever felt and probably some of the most incredible lows,” she said. “And some of those came within five minutes.”
She said things changed so rapidly during the back-and-forth negotiations and on-and-off contract votes in late August and early September that she had a hard time keeping up.
Ultimately, Mercury Marine decided to stay put, but not before it had wrung concessions out of its labor union, as well as public backing by Fond du Lac County and the city of Fond du Lac.
That support includes a $50 million low-interest loan from the county that would be paid for with a first-ever, half-cent county sales tax that will start on April 1 of 2010. Mercury Marine would have to meet certain job creation goals, however, Hicks-Sorensen said.
In addition, the city will provide $3 million to purchase land owned by Mercury Marine or provide loans and grants to the company.
“We were thrilled with the ultimate outcome, but it still seems kind of surreal because it was so pervasive and on everyone’s thoughts and minds for such a long time,” she said.
She noted that that the community could gain upwards of 1,000 new jobs over seven years at Mercury Marine as part of the agreements. The company now employs 850 union factory workers in Fond du Lac.
“They are talking about some significant employment numbers,” she said.
Labor leaders have complained about the concessions they had to make. Community leaders in Stillwater, Oklahoma were especially bitter and said they felt used by Mercury Marine. The company has a plant with 385 workers in the Sooner state. They will all be moved to Wisconsin over the next 24 months, officials said.
In addition, Hicks-Sorensen said, some county residents are not happy about the new tax.
“That is definitely not what we wanted as an outcome,” she said. “But overall, the magnitude and the scope of what would have happened had Mercury left far outweighs the concerns about the sales tax.”
Still, she said she has spoken to many business people who are “very, very supportive and thrilled” that Mercury Marine, which is celebrating its 70th anniversary in Fond du Lac, will stay.
Though in competition for jobs with Stillwater, Hicks-Sorensen said she has compassion for that community’s impending job losses.
“It’s unfortunate, but we forget that we are dealing on a global economy and this is a global company making global business decisions,” she said. (Mercury Marine is owned by Chicago-based Brunswick Corp.)
“But when the day is done, there are still families affected, whether they are in Fond du Lac or Stillwater,” she said. “We definitely feel for them and wish them the best.”
With a strong manufacturing base, Hicks-Sorensen said her county has been hit by the recession. Its jobless rate now stands at more than 9 percent, compared to the state’s 8.4 percent rate.
“We’ve experienced some challenges, but we also have had some opportunities,” she said.
Chicago Tube and Iron recently opened a 120,000-square-foot facility in Fond du Lac’s Fox Ridge Industrial Park. In addition, a new steel plant is expected to begin operations later this month, she said. Together, they will employ up to 70 workers.
“We also have a number of other projects that we hope will come to fruition in the next month,” she said, noting that her agency has an aggressive, customized marketing campaign and works closely with site selection companies to bring new companies to the county.
It is also working to stimulate start-ups generated from within the county and to generate new business for existing firms.
She said her agency recently received a $440,000 “economic gardening” grant that is focused on “growing our own.”
Posted by Aaron Kramer at 9/28/2009 03:22:00 PM
Thursday, September 24, 2009
EXECUTIVE SUMMARY OF BOCA GRANDE PROJECT
City Assistance
• City’s TIF assistance to Developer will be provided in the form of a single advance, in the amount of $8,620,000, payable into escrow on the effective date of the agreement, a portion of which will be directly repayable by Developer to City.
• The grant portion of the advance will be allocated as follows:
Ripon Inn & Spa Project (B-1): $5,500,000
• The repayable portion of the advance will be allocated as follows:
Other Projects (B-2 through B-10): $3,120,000
Developer Guarantees and Security
• Developer will guarantee a certain dollar amount of investment in the Ripon Inn & Spa project. Developer also will guarantee a specified increase in assessed value for each property included within the other projects.
• Developer also will provide a “key-man” life insurance policy on the life of Frank Cumberbatch for the first ten years of the project to cover one-half of the City's total investment, and a construction completion bond to ensure the completion of the Ripon Inn & Spa and insure City’s investment in that project.
• All of Developer’s obligations will be further secured by subordinate mortgages on the properties included within the projects.
Other Terms
• The amounts advanced will be held by an escrow agent, and City will obtain the benefit of any interest accruing on the balance of the advance held in the escrow account.
• Disbursements of funds to Developer will only be made upon Developer providing to City evidence satisfactory to City that the funds have been or will be spent properly.
• Developer will commence all of the projects it undertakes within 40 months and will complete all such projects within 50 months.
Posted by Aaron Kramer at 9/24/2009 03:49:00 PM
ANSWERS TO COMMON QUESTIONS ABOUT THE BOCA GRANDE TIF PROJECT
Why does the Boca Grande project need the support of a TIF?
The State of Wisconsin’s TIF law requires that the City and the other relevant taxing authorities determine that the proposed development would not occur “but for” the TIF. In other words, if city financial assistance is not provided, the developer will not pursue the redevelopment project.
It would be highly unusual for a developer like Boca Grande to undertake and finance a project like this without some form of city assistance. Cities routinely provide assistance to development projects in order to make them financially viable, recognizing that the successful development will provide long-term benefits to the city. Without TIF in this instance (which will result in lower interest rates and more flexible repayment periods), the anticipated income stream from this development would not justify the costs of undertaking the development. More specifically, this TIF assistance will bridge the gap between the cost of the project and the amount available from Boca Grande’s investment funds and conventional bank loans.
What will happen if Boca Grande does not receive the TIF assistance?
Unfortunately, if the TID or the development assistance is not approved, Boca Grande will not be in a position to move ahead with its plans. It is likely that no significant new development or redevelopment would be undertaken by Boca Grande in the downtown area for the foreseeable future.
Why can’t TIF be used to fix the potholes?
As noted above, the effectiveness of TIF depends upon an increase in property values and the amount of taxes generated by the property. That increase will come about as a direct result of the development activities receiving TIF assistance.
Despite the importance of, and value inherent in, fixing potholes and having well-maintained roads, sidewalks, and other public improvements, simple maintenance and repair of those existing facilities does not cause property values to increase. As a result, those activities also do not generate additional property tax revenues. Conversely, development or redevelopment of new building projects cause properties to be more valuable and, as previously noted, generate increased tax revenues. Those activities are necessary in order to justify the City borrowing money that will be paid back by increased tax revenue. Simply put, without development or redevelopment, there is no increase in tax revenue to pay back the City’s investment.
As noted above, however, only the increase in tax revenues is applied to repayment of the financial assistance. The original, pre-development base tax associated with the property remains continuously available to pay for municipal services, including fixing potholes.
What this TIF is NOT.
This TIF assistance is not a handout. The City will not write Jim Connelly a check. Rather, City funds will be deposited into an escrow account, and the developer will submit invoices and similar evidence that specific work has been completed on the project, at which point funds will be disbursed to pay for that work. In short, invoices will be submitted to the City and paid from the escrow if the City is comfortable the payment is justified and in keeping with the agreements between the City and the developer.
Use of TIF also is not a tax break. The property owner/developer will pay full taxes on all of its properties included in the tax increment district. As noted above, all parties anticipate a significant increase in the taxes on the properties being redeveloped. The only difference from the normal taxing process is that a portion of the developer’s property taxes (i.e., the amount of the increase in taxes) will be applied to pay back the assistance provided by the City.
TIF is NOT a tax increase; it is a method of allocating taxes in order to enable cities to provide development incentives that will, over the life of the TID, be repaid through increased tax revenues stemming from property development. The only way a property owner’s taxes will increase is if the value of that owner’s property actually increases.
What happens if this project is not successful or completely fails?
Jim Connelly has agreed to personally guaranty (a) completion of construction of each redevelopment project that the developer starts, and (b) payment of taxes reflecting a significant and agreed upon increase in the assessed value of certain of the properties for a period of 10 years after opening of the project. City representatives have reviewed and approved Mr. Connelly’s personal financial statement in order to verify his ability to satisfy these guaranty obligations.
Where will the people come from to fill the Ripon Inn and Spa?
Some guests will be from nearby locations, and others will be out-of-town visitors from up to 250 miles away drawn to the attractive and historic development in Ripon. The Ripon Inn and Spa is being designed to feature a level of quality and service similar to the American Club in Kohler, which draws repeatedly from a similar 250-mile regional radius. However, the Inn and Spa in Ripon will feature more modest room rates, making it more affordable, and therefore more attractive, for a broader spectrum of people.
We have no water or golf course; can the Ripon Inn and Spa really work?
Many different shopping, activity and eating alternatives attract people to a community. The developer and its hospitality consultants believe strongly that a renewed sense of vibrancy and a sense of history stemming from restoration of the historic downtown district and the Republican President’s Museum will attract families, empty nesters, and businesses to the community, both as visitors and as new residents. As a part of the development efforts, the infrastructure of Ripon will be brought to the leading edge of technology through a community-wide wireless broadband to create a uniquely attractive environment for businesses seeking to relocate their operations and/or headquarters to a community that provides an unparalleled quality of life for its employees.
When will this project start? When will it be finished?
Boca Grande plans to begin construction in the Spring of 2010, with an anticipated opening of the Ripon Inn and Spa and most of its other projects by the Summer of 2012.
How many jobs will be created?
The development efforts are expected to create 60 to 80 full-time construction jobs for an approximately two-year period. In addition, the new businesses are expected to require 75 to 100 new employees. The developers have pledged to hire local contractors for construction whenever feasible. In keeping with past practices, they will make it a priority to try to hire local employees in connection with each of the businesses included in the project after construction is completed.
What is being done to address parking?
Boca Grande will be retaining a traffic consultant to fully analyze downtown traffic patterns, traffic flow, and parking needs, including how they will be affected by future development. Based upon the results of that evaluation, the developer will work with the City to address any additional parking or traffic flow needs, and it will undertake all of its construction projects with a view toward minimizing to the extent feasible impacts on parking and traffic flow.
What if I have more questions?
Boca Grande has established an Information Hotline that you can call if you have additional questions. The Hotline can be called any time, 24/7, and your questions will be responded to within twenty-four hours. The Hotline can be reached at (920) 896-1082.
Posted by Aaron Kramer at 9/24/2009 03:47:00 PM
WISCONSIN IN BOTTOM TEN FOR BUSINESS CLIMATE
SOURCE: The Taxpayer Foundation
South Dakota has the most "business-friendly" tax system, and New Jersey has the least, according to the Tax Foundation's 2010 State Business Tax Climate Index released today. The Index measures the competitiveness of the 50 states' tax systems and ranks them accordingly based on the taxes that matter most to businesses and business investment: corporate income, individual income, sales, property and unemployment insurance taxes.
The states are scored on these taxes, and the scores are weighted based on the relative importance or impact of the tax to a business. Keeping a state competitive in today's global marketplace can be difficult, but there is one factor lawmakers have direct control over: the quality of state tax systems. The Index measures how well a state's tax system encourages investment by maintaining a broad tax base and low rates.
"When policymakers are considering tax changes in their states, they should remember two rules: Taxes matter to business, and states do not enact tax changes - increases or cuts - in a vacuum," said Kail Padgitt, Ph.D., who authored Tax Foundation Background Paper No. 59, "2010 State Business Tax Climate Index." The Index represents the tax climate of each state as of July 1, 2009, the first day of the standard 2010 fiscal year, and is available online at http://www.taxfoundation.org/research/show/22658.html.
The top 10 states in the 2010 Index, from 1st to 10th, are South Dakota, Wyoming, Alaska, Nevada, Florida, Montana, New Hampshire, Delaware, Washington and Utah. The bottom 10 states, from 41st to 50th, are Vermont, Wisconsin, Minnesota, Rhode Island, Maryland, Iowa, Ohio, California, New York and New Jersey.
Oklahoma saw the biggest drop in ranking this year - from 19th in 2009 to 31st in 2010 - due not to legislative changes, but to the fact that the Tax Foundation was able to obtain much more detailed nationwide data on local-option sales taxes, which are much higher in Oklahoma than in most states (above 4 percent in several municipalities).
Kentucky's ranking improved the most - up 14 spots from 34th in 2009 to 20th in 2010. Many economically damaging changes were enacted in other states that previously ranked better than Kentucky - especially in the personal income tax - so other states' rankings fell while Kentucky remained stable.
HIGHLIGHTS (or lowlights) FOR WISCONSIN:
* Wisconsin dropped three spots this year to finish with a rank of 42nd best. The
blame for Wisconsin’s drop falls on the creation of a new income tax bracket: 7.75 percent on taxable income over $225,000.
* Twelve states have an Alternative Minimum Tax on individual income: California, Colorado, Connecticut, Iowa, Maine, Maryland, Minnesota, Nebraska, New York, Rhode Island, West Virginia and Wisconsin. These states are penalized accordingly.
* Cigarettes were in the crosshairs of a large number of state legislatures this year. Ten states enacted cigarette tax increases this year: Arkansas, Florida, Hawaii, Kentucky, Mississippi, New Jersey, New Hampshire, Rhode Island, Vermont and
Wisconsin. Florida and Rhode Island raised their rates by the most, a dollar per pack. In percentage terms, Florida’s tax hike was the largest: 300%. The highest
rate state rate remains with Rhode Island at $3.46, and the lowest rate is still in
South Carolina at $0.07. These rates do not take into consideration the local cigarette taxes. New York City has a combined rate of $4.25.
Posted by Aaron Kramer at 9/24/2009 02:19:00 PM
ALL I CAN SAY IS WOW...
SOURCE: Fox News
A video posted on YouTube appears to show a New Jersey elementary school class being taught to sing praises of the "great accomplishments" of President Obama. The video shows nearly 20 young children taught a song overflowing with campaign slogans and praise for "Barack Hussein Obama," repeatedly chanting the president's name and celebrating his accomplishments, including his "great plans" to "make this country's economy No. 1 again.
The video identifies the kids as students at the B. Bernice Young Elementary School in Burlington, N.J., with taping taking place last June. The song quotes directly from the spiritual "Jesus Loves the Little Children," though Jesus' name is replaced with Obama's: "He said red, yellow, black or white/All are equal in his sight. Barack Hussein Obama." Among other lyrics, touting a fair-pay bill Obama signed in January: "He said we must be clear today/Equal work means equal pay."
The author of the full lyrics is unknown, but a woman -- possibly a teacher -- can be heard in the beginning of the video correcting and helping a student who has forgotten the words. The office of the superintendent of Burlington Township School District did not provide comment or confirmation to FOXNews.com that the songs were recorded at B. Bernice Young Elementary when contacted by phone Thursday. The video was originally posted Sept. 6, two days before Obama made an address to the nation's schoolchildren in which he praised the American education system as the best in the world and urged students to stay in school.
"At the end of the day, we can have the most dedicated teachers, the most supportive parents, and the best schools in the world," Obama said.
Song 1:
Mm, mmm, mm!
Barack Hussein Obama
He said that all must lend a hand
To make this country strong again
Mmm, mmm, mm!
Barack Hussein Obama
He said we must be fair today
Equal work means equal pay
Mmm, mmm, mm!
Barack Hussein Obama
He said that we must take a stand
To make sure everyone gets a chance
Mmm, mmm, mm!
Barack Hussein Obama
He said red, yellow, black or white
All are equal in his sight
Mmm, mmm, mm!
Barack Hussein Obama
Yes!
Mmm, mmm, mm
Barack Hussein Obama
Song 2:
Hello, Mr. President we honor you today!
For all your great accomplishments, we all doth say "hooray!"
Hooray, Mr. President! You're number one!
The first black American to lead this great nation!
Hooray, Mr. President we honor your great plans
To make this country's economy number one again!
Hooray Mr. President, we're really proud of you!
And we stand for all Americans under the great Red, White, and Blue!
So continue ---- Mr. President we know you'll do the trick
So here's a hearty hip-hooray ----
Hip, hip hooray!
Hip, hip hooray!
Hip, hip hooray!
The Burlington Township School District, to which B. Bernice Youngs Elementary School belongs, posted the following Letter to Parents this morning.
Dear Burlington Township Families:
Today we became aware of a video that was placed on the internet which has been reported in the media. The video is of a class of students singing a song about President Obama. The activity took place during Black History Month in 2009, which is recognized each February to honor the contributions of African Americans to our country. Our curriculum studies, honors and recognizes those who serve our country. The recording and distribution of the class activity were unauthorized.
If you have any further questions regarding this matter, please do not hesitate to contact me or Dr. King, Principal of B. Bernice Young School, directly.
Sincerely,
Dr. Christopher M. Manno,
Superintendent of Schools
I wonder where this story is going to go.......................................
Posted by Aaron Kramer at 9/24/2009 12:09:00 PM
Town-rights bill draws municipal backlash
SOURCE: Daily Reporter
City and village leaders are fighting a state bill that would limit their rights to review developments in neighboring towns.
“It’s a bad idea,” said Jeff Miller, DeForest’s village president. “If towns don’t like the fact that cities or villages can deny development, then incorporate. Become a city or village.
“But they don’t want to do that. You can’t have your cake with frosting and eat it, too.”
Towns, unlike incorporated areas, are not required to offer such public services as police and fire protection, nor are they required to provide libraries or sewer services.
Still, state Rep. Jeff Smith, D-Eau Claire, argues state law could be more balanced for towns. He and state Sen. Pat Kreitlow, D-Chippewa Falls, are ushering identical bills through the state Assembly and Senate to encourage more cooperative planning between incorporated and unincorporated areas.
A 1963 state law established cooperative planning between towns and cities or villages. If a dispute over, for example, lot size or street layout could not be resolved, the city or village had the right to delay or reject the development.
Cities and villages with populations exceeding 10,000 can review developments within three miles of their borders. Those with populations less than 10,000 can review developments within 1 ½ miles.
But a 2003 Wisconsin Supreme Court decision threw out the cooperative planning, giving cities and villages the right to reject developments within the review areas if the municipalities disagreed with the way land would be used.
Rick Stadelman, executive director of the Wisconsin Towns Association, said that led to cities and villages denying developments proposed for townships but then approving those same projects if the property owners petitioned for annexation into the cities or villages. Towns are losing a lot of land, he said, simply because cities can arbitrarily block development.
“The bill is not as dramatic as what we would ultimately like to see, but it’s a step in the right direction,” Stadelman said. “Towns should have more of a say in what can be built on their land.”
The bill does not strip cities and villages of their review rights, Smith said. It just forces incorporated areas to base the reviews on the cooperative standards established before 2003.
But that might not improve relations between incorporated and unincorporated areas.
Stadelman said the bill still lets cities and villages deny development proposals over lot size or street layout disputes.
Dan Thompson, executive director of the League of Wisconsin Municipalities, said the bill further fragments state development patterns.
“There’s too many levels of government in this state, and there are about 1,850 land-use plans right now that don’t mesh,” he said. “You’re going to still have industrial parks proposed next to residential neighborhoods, and we don’t have a mechanism for disputes.”
And there are plenty of disputes. The city of Eau Claire is trying to reach a compromise with five neighboring towns over a land-use plan that prompted a lawsuit last year, with the towns arguing the plan stymied their developments.
DeForest has blocked town of Windsor developments within 1 ½ miles of the village border for several years, and the town and village have not agreed on land use.
Miller said incorporated areas have earned the right to control the developments that spring up on their borders, even if it leads to, in DeForest’s case, lingering bitterness with a neighboring town. Yet despite Miller’s advice that towns incorporate if they don’t like the arrangement, he said he might not sign off on a petition if Windsor tried to do just that.
“It would depend on what they’re incorporating and where,” he said. “It’s hard to say. We’d have to take time to weigh in.”
Posted by Aaron Kramer at 9/24/2009 11:55:00 AM
REMINDER: BOCA GRANDE MEETING TONIGHT
There will be a Public Information Meeting on the proposed Boca Grande Developer's Agreement tonight (Thursday) beginning at 6 PM in the City Hall Council Chambers. Representatives from the city and Boca Grande will be present to discuss the framework of the proposed agreement, as well as answer questions on the proposal. IF you are unable to attend, or have a question that may require some research in advance, please feel free to call me at 920-291-5250 or email me at arkramer@charter.net or post your questions here on the blog. At this time, there are no further public information meetings planned, and the Council is scheduled to vote on the proposal this Monday evening.
Posted by Aaron Kramer at 9/24/2009 09:50:00 AM
Wednesday, September 23, 2009
BOCA GRANDE LAUNCHES WEBSITE
Boca Grande LLC has launched a website for their project in downtown Ripon:
http://www.bocagrandecapital.com/
There is not much there yet, but here are some of the highlights:
OVERVIEW
Wisconsin-based Boca Grande Capital, LLC is dedicated to the goal of reinvigorating downtown Ripon, Wisconsin through a series of developments and redevelopments that will restore the buildings of downtown Ripon, while simultaneously bringing a new energy and vitality to the downtown area. Ripon is the only remaining Wisconsin community with its original historic downtown still nearly intact, and the new development and redevelopment that will take place will be designed in a way to fully restore the original beauty and luster of these historic buildings. Over the next 36-months, Boca Grande Capital plans to invest an estimated $30 million dollars on projects that range from new restaurants and retail spaces to the luxurious Ripon Inn & Spa and a National Republican President's Museum.
ABOUT US
Jim Connelly - Mr. Connelly is the Chairman and Chief Executive Officer of, as well as the principal investor in Boca Grande Capital, and it is his vision that has lead to the development of these plans. Introduced to Ripon as a teenager, Mr. Connelly developed a soft spot for the City that never faded. He was asked to join the Ripon College Board in 2001, and quickly fostered moves that restored the college to its place among the most prestigious private, liberal arts and sciences colleges in this country. An attorney based in Milwaukee, Mr. Connelly has lead many successful real estate development projects, and considers the renewal of downtown Ripon a legacy commitment.
Frank Cumberbatch - The former Senior Advisor for Economic Development under the Mayor of Milwaukee, Mr. Cumberbatch is now the President and Chief Operating Officer of Boca Grande Capital. He and his wife and two children live in Ripon.
Andy Landgraf - Serving as the Vice-President of Operations, Andy manages the Boca Grande Capital properties and coordinates new business development efforts.
PROJECTS
Ripon Inn & Spa - The centerpiece of the new development will be the luxurious Ripon Inn & Spa. The Spa will be built at the intersection of of Watson and Blossom Streets, where the original Mapes House hotel and the American House now stand. The $15 million dollar facility will serve as a major draw and anchor for the entire downtown district.
National Republican President's Museum - Plans also call for a high-tech National Republican President's Museum immediately adjacent to the Little White School House (the founding location of the Republican Party) on Blackburn Street. Ripon, Wisconsin is the birthplace of the Republican Party, and a museum dedicated to the lives of the twenty-three GOP presidents in American history is a fitting tribute to the unique place Ripon holds. A conference center will also be part of the plans, to be built and operated in conjunction with the Ripon Inn & Spa.
Restaurants & Retail - Numerous other projects are also planned, including adding several new restaurants, rehabbing several storefronts for new retail operations, and offering more than twenty fully renovated, affordable apartments.
They also have a website for their properties: http://www.riponapartments.com/Home_Page.html
They have also put up some of their properties on YouTube:
Posted by Aaron Kramer at 9/23/2009 01:18:00 PM
Tuesday, September 22, 2009
THE UNITED FOOTBALL LEAGUE - 21st Century technology
SOURCE: USA TODAY
(T)he four-team United Football League, with weeknight games kicking off Oct. 8 on Versus, wants to sell traditional TV football. Says UFL chief operating officer Frank Vuono: "When you tune in it will be just like tuning into a high-level NFL national game on CBS or Fox on Sunday afternoons."...Vuono says the UFL is looking into putting microchips on balls — to see when they crossed goal lines — and using lasers to measure first downs without chains. But ultimately, he says, the UFL's angle seems to be no angle: "We're going for real football, not gimmicks. We don't want avid NFL fans to tune us out because we're playing tricks on them."
I will be curious to see how this new technology works and whether it will makes it way to the NFL, colleges and high school.
Posted by Aaron Kramer at 9/22/2009 09:46:00 PM
RIPON COLLEGE - Repeat offenders will have tires locked if they neglect to pay their parking tickets
SOURCE: RIPON COLLEGE DAYS
Students may no longer have to invent parking spots in the Kemper lot, trudge through the snow up the hill from Storzer, or complain to their RA that there are no spots in the lot which they have rightfully paid for.
This year, physical plant created new ways to enforce policies concerning parking in different areas on campus for people who do not own the proper parking permit.
"I found that the same vehicles, with no registration or expired registration, were causing the issues day after day. These chronic offenders caused students with legally registered vehicles to hunt for an open spot," says Brian Skamra, director of physical plant.
Although the procedure states to park in the overflow lot by Storzer, it inconveniences students who have paid for a parking spot in their designated area.
However, students don't realize they are adding to the problem by putting someone else with a spot out of their lot.
Parents, students, and college staff have asked the physical plant about towing and impounding the non-registered or illegally parked vehicles.
"Instead of immediately towing the chronic offenders I presented the option of the tire boot as the first step to restrict illegal vehicle parking and insure registration compliance," says Skamra. "This is the same device used nationwide by police departments to enforce parking regulations."
To stop a student or guest from receiving a boot on their car, they must pay the total balance of their parking tickets to the physical plant when they are open.
To prevent the then booted car from being towed, the car owner must pay in a reasonable time frame.
In the instance that a student would get their car towed, Skamra explains the procedures necessary to retrieve the vehicle.
"The owners of these vehicles will need to pay the fine and towing cost, if any, in order to have the vehicle released," says Skamra. "If they are in violation a second time they will have to pay the registration fee, the fine, and the towing cost, if any, prior to their vehicle being released."
Although there may be multiple monetary punishments, the goal for the new policies is not to make money but to ensure that students who have paid for a parking spot receive what they bought.
"The goal [of the new enforcement policies] is to protect the rights of the students who have paid for designated parking on campus, by enforcing the parking policies. It is not intended to penalize students or earn money for the college," says Skamra.
The decision to create a new enforcement policy was created within the last year with the ideas of students, parents and college leaders to help create a solution to the problem students have been having trying to find parking.
Although it will be assisting students, the plant department needed to provide the locks and tags at a cost of about $800.
Reasons why tires will be locked
1. Unregistered vehicles parked in parking lots, after three violations.
2. Unregistered vehicles in faculty parking lots, after three violations.
3. Illegally parked vehicles in handicap spaces, after two violations.
4. Vehicles parked in fire lanes or undesignated parking areas, after three violations.
Posted by Aaron Kramer at 9/22/2009 03:31:00 PM
HOMECOMING 2009 -
This letter was sent out by the Ripon High School via the Chamber of Commerce today:
Greetings Ripon Community Businesses,
I am writing to you as your local high school principal regarding the topic of “Homecoming.” In the fall of 2008, an incident occurred during Homecoming Week, which got many people’s attention. As some young people were running around town one evening things escalated and went way too far—two students were secured to trees and at least one student was urinated on. Another series of incidents which was very concerning was the rise in “egging” incidents. In addition to the damage to property, as students are running and driving around in the evenings, there is an obvious safety concern.
These matters lead to a discussion at the School Board level of Homecoming and the related activities—both school sponsored and non-school sponsored. Some school districts have eliminated Homecoming from their calendars, while others continue to have Homecoming and the related activities. While I sometimes feel that life (at least for Assistant Principal Rick Bunge and me) would be much easier without Homecoming, there certainly have been many more positives than negatives which have resulted from Homecoming Week. Therefore, I do feel it is a positive thing that the School Board continues to support the concept of Homecoming here in Ripon. That being stated, the School Board does expect us to do our best to work with the community to avoid problems, and if problems persist, Homecoming could certainly be in jeopardy in the future.
As adults, we have all “survived” Homecoming festivities. Different towns and school communities have varying traditions regarding their idea of what Homecoming includes. From my five years in Ripon for example, it is clear to me that many teenagers and adults feel that toilet papering is “OK” during Homecoming, while others do not. A key concern that Police Chief Dave Lukoski and I discuss every year is the type of incidents and behavior that toilet papering leads to. Sooner or later, people push the envelope and behaviors which hurt someone can be the result.
So what can you do to help? School Superintendent Zimman, Chief Lukoski, School Resource Officer Butters, Assistant Principal Bunge, and I respectfully request that we work together in a proactive manner on this topic and that your place of business not sell items such as toilet paper and eggs to teenagers as we approach Homecoming Week (September 27 – October 3). We fully realize that you have a business to run, and that we are living in difficult economic times. Many of you also actively support our students and school programs—thank you. You and I also know that many communities and other stores are just a short drive away for the teenagers who do want to get involved in toilet papering and egging. I even hear reports about parents who drive their children and friends around or who provide items to students. To state the obvious, we also need parents to work with all of us to keep Homecoming a positive week. We have communicated with our parents and students and will continue to do so.
I would like to end this letter on a good note. Too often, teenagers are painted in a negative light. Our high school students are coming off of a year with a great deal of positive student involvement at school for events like Homecoming and Winterfest. To be honest, the students have been handling the school sponsored events during these special weeks extremely well. We have many wonderful young people in Ripon which is a testament to our families and our community. Thank you for considering our request and for all that you do for our school and our student body. Please feel free to contact me if you have any questions, concerns, or suggestions (748-4616).
Sincerely,
Dan Tjernagel, Principal
Homecoming 2008 Facts
Much of the following information is reprinted from the report Principal Dan Tjernagel prepared for the Ripon Area School District School Board in October of 2008.
There was some serious misbehavior during the week of Homecoming 2008 when some students were running around town in the evenings. Here is a summary of the Ripon Police Department complaints received during Homecoming Week 2008:
• Reports of 24 egging complaints
• Reports of 11 toilet papering complaints
• Reports of 12 vandalism complaints
• Report of two students being the victims of a hazing incident. (Among other things, they were saran-wrapped to trees and were urinated on.)
• Report of one carrying a concealed weapon complaint
• Reports of two disorderly conduct complaints
• Report of one graffiti complaint
• Reports of two theft complaints
• Report of one illegal discharge of fireworks complaint
Our students have behaved well at school-sponsored events and activities during Homecoming Week.
• One of the 55 incidents to the Ripon Police department listed above took place during a school-sponsored activity on school grounds. It involved an RMS student and took place at the Friday night football game.
Parent and Community Member complaints and contacts
• I spoke with six different adults about litter, misbehavior, or illegal activity. Three were parents of high school students and three were parents of graduates. One of the parents of a high school student came in for a face-to-face meeting. I encouraged him to share his feelings with the Board, which he did. I had email correspondence with one of the parents I talked with on the phone (mentioned above) and also emailed with the person’s spouse.
• As of October 8, 2008, Officer Butters had spoken with and/or met with 27 different parents either during Homecoming Week or during the week after Homecoming Week while conducting investigations.
• Toilet papering is something that . . .
o some people do in good fun, and some people think is OK,
o some people do not like at all, and sometimes leads to more serious misbehavior.
• The community and high school where I began my teaching career got rid of Homecoming due to excessive problems outside of school—especially what students were doing in the evenings.
• Approximately 320 Homecoming breakfasts were served to students, parents, and community members on the Friday morning of Homecoming.
Mark your calendars for Friday morning, October 2, 2009. You are all invited!
• Let’s work together to avoid problems during Homecoming 2009 so we can keep our young people physically and emotionally safe—both at school and in the community. Thank you for your assistance and positive support.
Posted by Aaron Kramer at 9/22/2009 01:39:00 PM
Monday, September 21, 2009
BREAKING NEWS - Tentative Agreement Reached with Boca Grande, City of Ripon
The Ripon Common Council, by a unanimous vote, agreed tonight (Monday) to a tentative framework for a developer's agreement with the investment firm of Boca Grande, LLC. The firm has proposed a $30 million re-development in downtown Ripon, including a Republican President's Museum, several restaurants and a $12-14 million inn and spa.
"As I have said right up until Friday morning, there was no agreement in place between the City of Ripon and Boca Grande, LLC. We were literally negotiating right up to that evening," said Mayor Aaron Kramer. "It has been a very delicate balancing act to insure the safety of the public's money and the viability of the developer's investment. Several new pieces to the puzzle were added after we heard concerns from the public at the two informational meetings we held in August. I would stress that the negotiations have been and remain cordial and not adversarial, as we continue to work toward a project we believe is in the best interest of the downtown, the city, the developers and, yes, even the region."
The Council also approved a proposal to hold an informational meeting this Thursday evening at City Hall, beginning at 6 PM, to discuss the tentative framework of the agreement, and answer questions from the public. Officials from the City and Boca Grande are expected to be in attendance for the meeting.
"We will be bringing together financial numbers and projections, as well as a summary of the components of the financing package, so the public can ask questions," said Kramer. "The financing, the developer's agreement, the Tax Increment District being created for this project are all complicated and complex. I, along with the Council and Boca Grande, want as many residents as possible to understand the nuts and bolts of what we are doing."
The City Council is scheduled to vote on a final Developer's Agreement, which is being drafted, in closed session at its September 28th meeting.
Posted by Aaron Kramer at 9/21/2009 09:09:00 PM
The impact of an Ohio school district's decision to cut sports
This is an interesting piece from Sports Illustrated on the impact on one town when it eliminated high school sports:
GROVE CITY, Ohio -- That first Friday at Grove City High was so quiet. Any other school year, the school's nationally acclaimed band would have ended the day by marching through the halls blasting the fight song. Any other school year, more than 11,000 would have gathered later that evening at the stadium behind the school to watch the Greyhounds -- better known as the Dawgs -- open their season. Any other school year, Friday would have meant something.
On Aug. 28, football players didn't come to school in their jerseys. Cheerleaders didn't wear their uniforms. The band didn't march, and the team didn't play. Exactly one hour after the final bell rang, the doors were locked. "Every day feels like a Tuesday," said Mike Mayers, the senior who thought he would start at quarterback this season. "Fridays are the days that everybody realizes things aren't the same."
Read more: http://sportsillustrated.cnn.com/2009/writers/andy_staples/09/16/nosports/index.html?eref=shareDigg#ixzz0Rlas7gGN
Posted by Aaron Kramer at 9/21/2009 01:26:00 PM
THE CARNEGIE BUILDING
A poster asked about the ownership of the Carnegie Library building (now the office of the Ripon College president). This comes directly from the Ripon Main Street site:
Ripon College Carnegie Building
401 Watson Street - Downtown Ripon
In early 1902, Richard Hughes, the president and chief fundraiser for Ripon College, traveled East to ask philanthropist Andrew Carnegie for his support for the development of a library. To his dismay, he returned to Ripon empty-handed. That very April, however, as a result of his visit, Carnegie offered the City of Ripon $10,000 to help build the community facility.
The City of Ripon accepted the gift and chose the old Robert Lyle Livery Barn lot as the site for the new Ripon Public Library. Construction began in September 1904 with the agreement that the move-in date would be the following fall. The library operated in this location until 1973. After that, the building housed Pearl's House of Fashion, a women's clothing store, and later Accurate Controls, an integrated security and communications business.
In 2005, a generous donor acquired the building for Ripon College. A gift from college alumni Don and Marilyn Anderson made it possible to further renovate the building. The President, Vice President and Dean of Faculty were relocated into the building in spring 2006, creating a physical link between downtown Ripon and the College.
PHOTO Courtesy of Ripon Main Street, Inc.
Posted by Aaron Kramer at 9/21/2009 09:53:00 AM
RIPON COLLEGE - Parking problem result of miscount, Velorution still rolling strong in second year with 76% FY participation
SOURCE: Ripon College Days
By: Paul Meuer
Posted: 9/16/09
For many students the start of the new school year began smoothly, but for so many others, it began with frustration caused by an issue that is not new to campus.
By Sept. 2 students were required by law to remove their vehicles from the streets and to park within their assigned lots. There was a problem that arose because students had been told that all remaining lots had been filled up.
This is only the second year that students have not been able to park on the streets of Ripon between 3-6 a.m.
Ripon College President David Joyce noted that the biggest complaint he heard, "was parking."
However, according to Plant Director Brian Skamra, the parking problem was not an issue of availability; it was an issue of accounting.
Skamra said that when he was looking over parking and registration, he "returned to update the registration book and found an accounting error."
The Storzer storage lot, which has 178 spaces, listed 110. The upper campus lots were filled but there actually were 68 spaces available at Storzer.
The accounting error threw off the listed number of available parking spaces, but the error has been resolved and "we have put internal controls in effect to insure this accounting problem will not happen again," said Skamra.
Students who received parking tickets because they parked in Storzer lots prior to Sept. 11, will be granted a grace period and have their tickets discarded, stated Skamra.
Despite the concerns and the rumors, there was in fact no issue with parking availability this year, and measures are being put into action to prevent any such hassles in the future.
Some of the rumors in the midst of the parking space issue stated that the "Velorution Project" was failing.
"The Velorution is not failing," said President Joyce. "76% of first year students took bikes, and only 24% brought cars. Earlier studies showed that would make plenty of space available."
This is the second year for the Velorution Project, headed by Director of Publications & Institutional Image Ric Damm.
By keeping the number of students with vehicles down, the Velorution Project has helped the school avoid an actual space issue.
"It didn't make any logical reasoning to me," commented Joyce upon receiving the news.
Even though the "Velorution Project" has kept the school safe for now, plans for new parking areas are already underway.
Plans are being developed that will "create more parking spaces on campus by building asphalt lots in areas that will minimize the impact on campus green space and maximize availability to campus facilities," said Skamra. "I can assure you no one at the college wants this to ever happen again and we will work together to insure parking availability."
Posted by Aaron Kramer at 9/21/2009 09:50:00 AM
IN THE RIPON TIME MACHINE
The 100 and 200 blocks of Watson St., Ripon, Wisconsin on Maxwell Street Days 1962:
After the success of Septemberfest this past weekend, let's take a little trip to the past.
Posted by Aaron Kramer at 9/21/2009 09:48:00 AM
When does it end?
SOURCE: Milwaukee Journal-Sentinel
Posted: Sept. 18, 2009
That's a question for the Fond du Lac County Board to answer, after it approved a new sales tax without a sunset clause. The board should take another crack at this one.
The Fond du Lac County Board gave Mercury Marine Inc. a big vote of confidence when it approved a $50 million government-financed loan, one of a basket of incentives the company received when it threatened to move operations and hundreds of jobs to Oklahoma.
The board was right to approve the loan, which was a key reason jobs are staying in Fond du Lac. But board members also need to ensure that a new sales tax backing the loan won't be levied in perpetuity and that any additional money raised by the tax will be spent wisely.
The board approved a 0.5% sales tax on county residents to pay the debt service on the year loan. The board decided not to attach a sunset clause to the ordinance after the county's corporation counsel warned that doing so might run contrary to state statute.
William Bendt, the corporation counsel, is expected to seek an opinion from state Attorney General J.B. Van Hollen on whether the ordinance can be amended to add a sunset provision. We favor such a provision. Taxpayers should not have to pay any more than is necessary. At the very least, the board should signal its wishes to future boards in a resolution.
The new Fond du Lac County tax is expected to raise twice as much money as is needed to service the loan, but because state law gives counties only one option - 0.5% - a smaller tax bite wasn't possible, said Fond du Lac County Executive Allen J. Buechel. Counties that want to exceed 0.5% must have state legislative approval.
Buechel said he would recommend that some of the excess tax dollars be used to replenish the county's revolving loan fund for economic development. That's fine with us. But we think that most of the rest of the leftovers should be fed to property owners in the form of tax relief.
Posted by Aaron Kramer at 9/21/2009 09:44:00 AM
New sales tax: Transfer of wealth through coercion
SOURCE: Fond du Lac Reporter
By Michael Fredrich
We were scammed.
Now that all of the key players have posed for their holy pictures and the backslapping has subsided, it is time to take an unemotional look at two questions that should have been — but were not — addressed before 16 people on the Fond du Lac County Board voted to encumber the county with a new tax:
æ 1. Was Mercury Marine really going to move production to Stillwater?
æ 2. Should taxpayers be forced to subsidize a private sector business?
The answer to both of these questions is an unqualified “no.”
Mercury is owned by Brunswick Corp. — a publicly traded company. Financial statements are easily accessible.
Brunswick’s earnings have deteriorated the last three years. In 2008 it lost $788 million. Through the first six months of 2009, Brunswick lost an additional $347 million. That is more than $1 billion in losses in 18 months.
The company has been scrambling to raise cash and refinance its debt. On Aug. 11, the company completed an offering of $350 million on 11.25 percent senior secured notes due in 2016. The money will be used to repay notes that are coming due in 2011 and 2013.
On July 4, 2009, Brunswick had cash on hand of $461 million. That seems like a lot of cash, but the company has been losing cash at the rate of nearly $50 million per month for the last 18 months. An amount of $461 million does not last long at that rate.
I can only imagine being a fly on the wall when Brunswick was meeting with its banks and its other lenders. Brunswick undoubtedly was told that it needed to reduce its labor costs and approach the communities in which it operates for below-market loans or grants.
Closing the Fond du Lac facility was never a credible option for one simple reason: The company could not afford it. Its financial position is so poor that it could never raise the capital to fund such a move.
Fond du Lac and Stillwater were bidding against each other, but Fond du Lac was always going to win. Why do you think the machinists union was allowed to vote twice?
If I had the option of operating a union plant in Wisconsin or a non-union plant in Oklahoma, it would take a nanosecond to make a decision.
The second question of using taxpayer money to fund a private sector business is more esoteric, but the answer is always no. The political class and people directly affected always provide plenty of creditable arguments for the transfer of money.
On the surface it may look good, but there are two sides to every transfer of wealth. The great 19th century French economist Fredrick Bastiat said it best in his book “Essays on Political Economy.” He proffered that every transaction should be viewed through the prism of “that which is seen, and that which is not seen.”
What is seen in the Mercury sales tax is the money raised, at least part of it, will be used to save an important business and related jobs. What is not seen is the taking of $6 million (the estimated annual revenue from the county sales tax) from the citizens of Fond du Lac County. This is nothing more than the transfer of wealth through government coercion.
Before the vote was taken, I pleaded with my representatives to delay the vote so there could be public hearings. I also thought a decision such as this should be decided by a referendum.
You know the result. To the two supervisors who voted “no” — thank you. To the 16 who voted “yes”— shame on you.
Michael J. Fredrich of Fond du Lac serves as president of MCM Composites in Manitowoc. He points out that he spent 15 years in commercial banking in Milwaukee and five years as chief financial officer of Star Cablevision.
Posted by Aaron Kramer at 9/21/2009 09:40:00 AM
Saturday, September 19, 2009
SPECIAL COUNCIL MEETING ON MONDAY EVENING
Conference room, City Hall - Monday, September 21, 2009 - 7:00 p.m.
I. Call to order/roll call
II. Adjourn to closed session under Wisconsin Statutes 19.85(1)(e) “Deliberating or
negotiating the purchasing of public properties, the investing of public funds, or conducting other specified public business, whenever competitive or bargaining reasons require a closed session” RE: Developer’s agreement for financial assistance under TIF District #11 (the new Downtown TIF)
III. Adjourn
For the record, this closed session deals with the Boca Grande development.
Posted by Aaron Kramer at 9/19/2009 11:42:00 AM
Friday, September 18, 2009
Boca Grande prepares to move forward on 30 million dollar revitalization project
SOURCE: RIPON COLLEGE DAYS
Less then two years removed from concocting Chinese food, the Republican House prepares to get Americanized, as it readies itself to be the home of the National Republican Presidents Museum. This transition is only a small part of a mass revitalization attempt of the Ripon economy headed by the Boca Grande Capital group.
After intense discussions among the citizens of Ripon, Ripon College Trustee Jim Connelly and Frank Cumberbatch, co-owners of the Boca Grande group, have been granted the financial approval to move forward on an over 30 million dollar project that aims toward a July 2012 completion. Boca Grande expects to renovate more than 25 buildings throughout Ripon.
"The redevelopment of our downtown is a major investment, the likes of which we have not seen in many generations," says Mayor of Ripon Aaron Kramer.
One of the signature projects being spearheaded by Boca Grande is the transforming of the Republican House to a presidential museum. The location is ideal, as it is directly to the left of the Little White Schoolhouse, which is the birthplace of the Republican Party.
"The National Republican Presidents Museum would be a great place for history students or any students for that matter to study about our past Republican presidents and understanding our political structure and history as well," says Cumberbatch.
Tentatively the museum would contain artifacts, audio, visual, and will be in collaboration with presidents' libraries to get documents on loan. While it will be a great place for history students to learn, it has potential to reach a much larger market.
"The museum has a potential to draw people from all over the United States and the world," says Kramer. "If it is done right and if it is done in a manner which attracts not just one segment of the population but the entire segment of the population [it would be a major draw for Ripon]."
The museum is only one of the more than 25 buildings that will see renovation. With so many changes to come, the legitimate concern is raised about the potential loss of cultural history in Ripon.
"We have no intention of changing this community, we don't want it to be something it's not," says Cumberbatch. "When you look at the outside of this building (former Mansion on Main) it looks no different than it did back then. This city has great culture and tradition in these buildings and we are going to try our best at maintaining that."
These renovations will come with minimal loss of cultural history as all but one building will remain intact. The only building that will be demolished in the revitalization of Ripon is the Mapes Apartment building on the corner of Blossom and Watson St.
The building was deemed unsafe due to structural reasons. Going to be built in its place is the other marquee project and that is the luxurious Ripon Inn and Spa, a project which will cost approximately 15 million dollars.
"The Ripon Inn and Spa would be really good for students' parents and alumni to stay as it is very close to the college," says Cumberbatch.
As the plans are drawn up right now, the construction of the inn and spa will also mark the end of a segment of Blossom Street. The area of Blossom St. which will likely be removed is between Ransom and Watson St. Ripon is not new to the discussion of removing roads, as just one year ago there was intense debate on whether to take out the road running through the campus.
"In terms of a transitional area between the college and the downtown, if it is done right and all indications are that it will be done right, it becomes sort of a gateway, a conduit from the campus to the downtown," says Kramer. "It will be done with aesthetic improvements. [The removal of the road] will be something that people will just have to get used to."
Boca Grande also has numerous other projects planned for the City of Ripon. One such project is a themed restaurant called Norman's. This restaurant is an enterprise with a Norman Rockwell theme and will employ a place for parents to send their kids off to following ordering. The youngsters who are sent away from their parents will be watched by students of Ripon College.
"In that restaurant there will be a direct positive impact on college students as we are going to hire them to supervise young children, while their parents or guardians are having quiet conversations as they await their food," says Cumberbatch.
Other notable projects include doubling the size of Roadhouse Pizza, a larger kitchen for Dos Gringos, and a steakhouse named McGuires, which would serve made-in-house brews.
Overall, Cumberbatch believes that construction will require over 400 workers, while the new businesses in Ripon will require the employment of an additional 100 full time workers.
Despite the advantages, not all citizens of Ripon have expressed a desire to move forward.
Recent listening sessions indicate that at least a small percentage of Ripon residents question the value of the projects and Ripon's substantial investment.
Of the 30 million dollars, over 8 million will come from the city of Ripon in the form of grants and loans.
However, it is clear that many in the business community wish to see the projects move forward to revitalize a downtown that has seen limited recent investment.
"These improvements will generate more activity and interest, making people want to come to downtown Ripon," says Chamber of Commerce Executive Director Paula Price. "In small communities downtowns are kind of like the focal point of activity and if the downtown area is vital it spreads out to the rest of the community. It is important to have good active, strong businesses in the area."
Making change. The transformation of the Republican House to a presidential museum is one of the numerous projects that will be headed up by Boca Grande, LLC.
Media Credit: Jonathan Bailey
Adios. The building on the corner of Watson and Blossom, as well as the street leading up to Todd Wehr, will likely be demolished in the coming years. An inn and spa will liven up the area.
Posted by Aaron Kramer at 9/18/2009 09:59:00 PM
RECENT WRPN PODCASTS
September 18th - I was on to discuss the sales tax for Fond du Lac County, Boca Grande, and the lifting of the parking restrictions in downtown Ripon
September 17 - Brenda Hicks-Sorenson from the Fond du Lac County Economic Development Corporation discussed the Fond du Lac County sales tax
Posted by Aaron Kramer at 9/18/2009 11:30:00 AM
Thursday, September 17, 2009
Former National Security Adviser Allen to speak at Ripon College Sept. 23
SOURCE: RIPON COLLEGE
RIPON, Wis. – Richard V. Allen, former national security adviser to Ronald Reagan, will give a special presentation at 4:15 p.m. Wednesday, Sept. 23 in the Great Hall of Ripon College’s Harwood Union. The title of Mr. Allen’s speech is “National Security and National Interest: Steering a Realistic Course.” Ripon College welcomes and encourages all members of our community and its surrounding areas to attend this spellbinding and timely event at no charge.
In addition to serving as national security adviser under the Reagan administration from 1981-82, Allen was also a senior staff member of President Nixon's National Security Council in 1968 and served various Republican administrations in the intervening years.
“9/11 awakened the entire electorate to the importance of national security. It is a topic that is a concern to all Americans, regardless of their political leanings or party,” said Lamont Colucci, assistant professor of politics and government, and national security studies coordinator at Ripon College. “We have a rare and unique opportunity to host as our guest a former national security adviser to the President of the United States. I welcome the Ripon College community and guests to this extraordinary event.”
Mr. Allen currently is a senior fellow at the Hoover Institution and a member of the Heritage Foundation's Asian Studies Center Advisory Council, the Council on Foreign Relations, the United States Defense Policy Board, the American Alternative Foundation, and the United States National Security Advisory Group. He also serves on the advisory council of the Nixon Center and oversees the Richard V. Allen Company, a Washington-based consulting services firm.
Posted by Aaron Kramer at 9/17/2009 11:37:00 PM
H1N1 Novel Influenza Information - Ripon College
SOURCE: RIPON COLLEGE - September 17, 2009
To the Ripon College Community,
This memorandum is to update you on the campus’s interventions regarding the H1N1 flu virus (also known as swine flu).
Ripon College has had emergency plans in place to address wide-ranging campus issues and health concerns for many years. These preparedness efforts have been extended in order to respond to the H1N1 influenza. The following information has been provided to our campus thus far:
The H1N1 influenza has continued to cause illness in Fond du Lac County over the summer months, which is highly unusual. The Centers for Disease Control and Prevention (CDC) anticipates that novel H1N1 influenza and seasonal influenza will be circulating this fall and is anticipating an upsurge in people with influenza-like illness. It is unpredictable how severe H1N1 or seasonal influenza will be. Fortunately, the majority of cases are mild and, at this point, the H1N1 virus appears no more virulent or severe than most seasonal flu. This strain does seem to be more frequent in children and young adults. High risk groups include pregnant women and people between the ages of 6 months and 24 years. Most college students are at risk for infection.
Classes and Activities
Classes and other activities will continue as scheduled this semester. Our campus Emergency Operations Team will monitor developments, working with the Fond du Lac County Public Health team, and make recommendations regarding changes in campus activities on the basis of any flu outbreak. The Dean of Faculty, after consulting appropriate parties, will make decisions regarding the cancellation or suspension of classes. Any decisions will be communicated broadly to faculty, students and staff through email and other communications.
Public Health Precautions
It is strongly recommended that all faculty, staff, and students take the following flu/respiratory disease precautions:
•Cover your nose and mouth with a tissue when coughing or sneezing. Throw the tissue away after single use.
•If tissues are unavailable cough or sneeze into a sleeve or elbow.
•Wash hands often with soap and water or alcohol-based hand cleaners.
•Avoid touching eyes, nose or mouth as germs spread this way.
•Frequently touched surfaces should be cleaned on a regular basis.
•Practice social distancing; avoid people with influenza-like illness.
•Do not share food, drink, or utensils.
•Get the seasonal influenza vaccine.
•Get the H1N1 influenza vaccine when it is recommended.
Treatment and Response
The symptoms of H1N1 influenza are similar to the regular seasonal influenza and include fever (over 100 degrees) and cough and sore throat and can also include headache, chills, fatigue and body aches. The majority of individuals who contract a flu virus will not need to seek a doctor’s treatment. Faculty, staff, and students who are ill with an influenza like illness should remain at home (or in their room) for 24 hours after they are fever-free (and without medication that would lower temperature). A mild, lingering cough may occur. Barring any other flu symptoms, this cough should not prevent students from returning to class.
It is important that the spread of disease is limited as much as possible. Students who exhibit symptoms of a flu like illness that live within 250 miles of campus are expected to leave campus and return home until they are free of fever for 24 hours without the use of fever reducing medications. Accommodations will be made available to students from further away. The Dean of Students office will be working closely with faculty, housing and dining staff to meet the needs of students if they become ill.
If you have been in contact with someone who has the flu, onset of the virus can take up to three days. If you experience any flu symptoms within this time period, please stay home to limit the spread of the virus. If you are pregnant or if you have a chronic medical condition such as diabetes, cancer, asthma, heart or lung problems, or a weakened immune system, you should consult with your physician or campus health services to see if an antiviral medication is needed.
Medication and Vaccinations
Generally, Tamiflu, an antiviral medication, is prescribed for individuals with flu who are either hospitalized, have a chronic medical condition (as listed above, under Treatment and Response), or have a suppressed immune system. Tamiflu for influenza is not a cure—and only reduces symptoms and decreases length of recovery time by about 24 hours.
Both the seasonal influenza and the H1N1 vaccines are recommended for ALL students.
•Seasonal Flu Vaccine: This vaccine is currently available at Health Services on campus. The cost is $25.00 and students can pay with cash, check or charge this to their student account.
•Novel H1N1 Vaccine: Recent recommendations from the CDC have placed individuals under age 24 in the top priority group for receiving the H1N1 vaccine. More information will be available in the coming weeks regarding how and when this vaccine will be given.
Additional Information
More information on the H1N1 flu is available on the following websites:
www.cdc.gov/h1n1flu/qa.htm
www.pandemic.wisconsin.gov
All members of the Ripon College community are strongly encouraged to take the standard precautions adopted during the flu season and to play an active role in our public health prevention efforts. Although the spread of this virus can’t be eliminated, our collective efforts can significantly minimize its reach and overall impact.
Posted by Aaron Kramer at 9/17/2009 11:36:00 PM
EDITORIAL - Velorution doesn't fix parking isssues
SOURCE: Ripon College Days
The first weekend of school brings the same activities held year after year at Ripon. Students flock to the quad or Merriman in hopes of having a fun night of socializing, first year students are attempting to find their niche on campus while not losing who they are, and cars find their ways into made up parking spots within the lots from students placing their precious automobiles into safe storage.
This weekend was much the same, yet there were still streets full of cars, and students anxiously awaiting an answer from physical plant as to whether or not their car will find a happy home on the college's pavement. This year, despite the Velorution project, cars are strewn around campus with no great scheme for storage.
The change in parking registration is the first culprit for the problem. Expecting students busy with finals, not to mention those abroad, to figure out where they would want to park their vehicle months in advance poses a huge challenge. There were no problems or complaints from upperclassmen setting their alarms earlier than the sun rose to go to plant for registration in the fall, so the shift in timing seemed to occur without real necessity. Although it was changed so that payment was not needed at the time, it was difficult for students to determine which higher-cost lot they wanted to park in with the tumultuous economy. A student who registered for a more expensive lot may have only been able to afford a storage lot stall, creating even more problems with the system.
Another problem with the lack of parking comes from the laissez-faire approach to enforcement. While parking tickets are given out like candy on Halloween, other portions of policy are not strict enough. A parking pass for the Kemper lot could warrant a student to park either in the upper area, closer to the tennis courts, in the lower area, directly by Kemper, or even in the storage lot if there are no open spots within the lot. It causes too many options for students. Instead of receiving parking lots, students should reserve a parking stall. It would help make parking violations easier to identify. In addition, it would be convenient to know exactly how far you need to carry your groceries to the front door of your residence.
If nothing else, it would provide a sense of ownership for students. Knowing there is something on campus, aside from our rooms and mailboxes, that is strictly ours would help students all over campus take pride in something we've now had to pay more for, despite problems still occurring within the system.
The last issue comes with the changing in parking throughout the college's recent past. The large TriDorms/Johnson Hall lot had been removed to build the Campus Apartments, but not enough parking was created for students to make up for those missing spots. Last year, parking seemed efficient; however about a hundred students opted not to bring a car in lieu of receiving a free bicycle. Those students who pledged not to bring a car for a year now have the ability to have two modes of transportation on campus, instead of one compact choice last year.
The campus is urged to make a change. Although the campus has plenty of lush, green grass and other sources of nature all around, to help students store their cars, trucks and SUVs, it might just take some changes that make for helpful solutions.
Posted by Aaron Kramer at 9/17/2009 11:33:00 PM
PUBLIC HEARING ON 2010 FIRE DISTRICT BUDGET
The Ripon Area Fire District Board will conduct a public hearing on its proposed 2010 budget on Tuesday, October 6th at 7:00 p.m. in the conference room of the fire station at 515 Aspen Street. If you wish to comment, but cannot attend the meeting, please write to: City of Ripon, Steve Barg, City Administrator, 100 Jackson St., Ripon, WI 54971, call 748-4914, or send an e-mail to sbarg@cityofripon.com. Your thoughts will be provided to the fire district board for its October 6th meeting.
AS it stands now, the budget is 8 percent higher than the 2009 budget. The Common Council is schedule to discuss the budget, and votes on its approval or rejection, at its September 28th meeting.
Posted by Aaron Kramer at 9/17/2009 11:31:00 PM
State computer project costs 7 times more than estimate - and counting
SOURCE: Milwaukee Journal-Sentinel
Madison — An effort to consolidate state computer servers has cost $90.9 million so far - more than seven times the original $12.8 million estimate, according to a sweeping report Thursday by the Legislative Audit Bureau. And by the time the project is completed next summer, it will cost almost nine times as much.
The computer project is part of a broad effort to streamline state government launched by Gov. Jim Doyle in March 2005 that has been hampered by unexpected costs and delays.
Under one provision of the Accountability, Consolidation and Efficiency program, known as ACE, the state was to sell $40 million worth of land and buildings over four years but actually shed only $9.6 million in property.
Sadly, in today's world, this is not as shocking as it should be. For more of the gory details, click here
Posted by Aaron Kramer at 9/17/2009 11:29:00 PM
PARKING RESTRICTIONS LIFTED IN DOWNTOWN
Due to the increased parking congestion on our downtown streets due to the Blackburn Street parking lot re-construction, I, Aaron Kramer, do hereby issue an executive order as mayor to suspend the 3-hour parking ban in the downtown area, effective immediately. This order will be be in effect until November 15, 2009, at which time the city's winter parking rules will go into effect. City staff is also directed to cover the 3-hour parking signs in downtown Ripon with a material that prevents them from being viewed.
Posted by Aaron Kramer at 9/17/2009 01:50:00 PM
Wednesday, September 16, 2009
EDITORIAL FROM COUNTY EXECUTIVE
Editorial for the Ripon Commonwealth:
I feel I need to respond to Ripon Mayor Aaron Kramer’s letter in last week’s Ripon Commonwealth. He stated that I did not help when Ripon businesses were considering a move to another state. Although I was briefed by the FCEDC, I must also say that neither the mayor nor anyone else from Ripon asked for my assistance. Whereas the City Manager of Fond du Lac did ask whether I could help to keep Mercury Marine in Fond du Lac. I do not understand Mayor Kramer’s assertion that none of the sales tax to be used to capitalize the County Revolving Loan Fund would go to Ripon businesses, considering that the Revolving Loan Fund was first created to assist Alliance Laundry, Ripon’s largest business. Since that time the Fond du Lac County Economic Development Corporation has helped Ripon businesses receive over $6 million of assistance. In this economy county dollars are now needed to increase the amount of funds available for county businesses located in Fond du Lac, Ripon, or throughout the County.
Mercury Marine’s loss would have seriously damaged the economy of Fond du Lac County and the entire region. Fond du Lac County’s losses alone would have equaled $353 million in payroll from Mercury, as well as other businesses, restaurants and stores around the county. In addition, the 1,800 Mercury employees along with an estimated 4,000 other county workers would have lost their jobs. As County Executive I could not let that happen. If Mercury Marine were located in Ripon I would have been willing to support the same package. The only way to keep Mercury in Fond du Lac County was through a partnership between the State, the County and the City of Fond du Lac offering necessary financial incentives for them to stay if they received the contract concessions from their union employees. Mercury Marine will receive credits towards repayment of the loan for jobs retained and job growth in Fond du Lac. That could result in credits of $1 - $2.1 million annually over a period of ten years. Those credits must be funded either through property tax or a sales tax. I supported the sales tax. A sales tax would also provide the funds required to further increase the County Revolving Loan Fund. All funds are presently loaned out; therefore a business must wait for the dollars needed for expansion or business improvements.
Mercury Marine is thankfully staying in the county, therefore their employees will not be competing for limited available jobs. People will be called back to work as Stillwater jobs arrive here and other local workers take the retirement incentive package. As the economy improves, manufacturing jobs will be added for workers from all over, including Ripon. This is the first time a County has been this aggressive in keeping a business, but it is not uncommon for cities. I am impressed that Ripon City Council has supported the creation of a TID and is willing to borrow over $8 million to support the redevelopment of its downtown. I do wish Ripon much success in that endeavor so that one day that TID does not require property tax dollars. Mayor Kramer, if in the future the County’s help is needed please contact me and I will do what I can.
Allen Buechel
Fond du Lac County Executive
160 S. Macy Street
Fond du Lac WI 54935
920-929-3155
Posted by Aaron Kramer at 9/16/2009 08:37:00 PM
Saturday, September 12, 2009
Mercury to return tax breaks to Oklahoma
SOURCE: Marketplace Magazine
Following the Mercury Marine union vote in Fond du Lac last week, finalize its decision to remain headquartered in Fond du Lac and to shift work there over time from Stillwater, Okla., the company announced today it will return tax relief it had received in Oklahoma.
A bill signed into law June 1 was designed to help such companies as Mercury Marine deal with unprecedented market weakness.
“Depending on who you talk to, it’s either between $1.2 [million] and $1.6 million,” said Oklahoma Rep. Cory Williams (D–Stillwater), a co-sponsor of the tax break.
Mercury union employees voted Thursday and Friday to agree to labor contract modifications. As a result, Mercury is shifting manufacturing from its Stillwater, Okla., facility to Fond du Lac.
“With the decisions made last week around the consolidation of our under-utilized manufacturing capacity, it is unlikely that Mercury Marine will qualify for the criteria outlined by the spirit of the bill in terms of employment levels and the scale and scope of our operation in Stillwater,” said Mark Schwabero, president of Mercury Marine.
Mercury Marine is working with county and state officials in Oklahoma to make an immediate payment for any benefits it has received under this legislation.
Posted by Aaron Kramer at 9/12/2009 10:07:00 AM
Bill yanks records from public eye
SOURCE: Milwaukee Journal-Sentinel
Madison — Information about property owned by Wisconsin judges and district attorneys would no longer be available for public inspection under a bill before the state Legislature.
The Assembly's Committee on Judiciary and Ethics approved the change as part of a bill intended to increase government transparency by allowing the state Government Accountability Board to post on the Internet the annual economic interest statements that roughly 2,100 public officials, including legislators, judges and members of state boards, are required to file each year.
But citing safety concerns, lawmakers added a provision that changes current law by preventing the board from releasing information about property owned by judges and district attorneys. Another provision would limit online posting of client and customer information reported by public officials who own businesses, but that information would still be available to those who request it.
The economic interest forms require officials to report such information as their stock and bond holdings, business partners and noncommercial real estate. They are not required to list the addresses of their principal residences, but that information is available in other places, such as campaign registration forms candidates file with the board.
Members of the public who want to view the statements of economic interest now must provide their names and addresses when requesting them. Bill author Rep. Spencer Black (D-Madison) called that an unnecessary barrier to public information.
But some lawmakers said there's potential for misuse if people have easy access.
Rep. Fred Kessler (D-Milwaukee), a former judge, backed the amendment to limit disclosure of information about property owned by judges and district attorneys, saying that judges are routinely harassed and threatened by people who have appeared before them.
Under the change, the public wouldn't be able to access that information, even if the name and address of a requester were provided.
While some information could be kept off the Internet, Black said it should be available to those who ask for it.
"It would totally exclude members of the press and public from seeing that information," Black said, adding he will try to change that provision in the bill when it reaches the Assembly floor.
Rep. Robin Vos (R-Caledonia), who owns a popcorn business and pushed for limited access to client information, said he's concerned about a competitor accessing his customer list online.
"It will dramatically impact me in a way I don't think is fair," Vos said.
Mike McCabe, executive director of the government watchdog group Wisconsin Democracy Campaign, said the policy of requiring residents to give their names and addresses has had a chilling effect.
"All those records should be accessible via the Internet to the greatest extent possible," McCabe said.
The Assembly's Committee on Judiciary and Ethics voted, 6-3, Wednesday to advance the bill to the full Assembly.
Posted by Aaron Kramer at 9/12/2009 10:06:00 AM
Lake Geneva's mayor suspends four on council
SOURCE: Milwaukee Journal Sentinel
Lake Geneva's mayor has suspended four members of the Common Council, accusing them of neglecting their duties and violating open meetings laws.
Mayor William P. Chesen also accused the four - Penny Roehrer, Mary Jo Fesenmaier, Arleen Krohn and Thomas Spellman - of creating "inefficiencies for staff and the citizens," according to the suspension orders.
Chesen scheduled a "removal from office" hearing for Sept. 23.
The move came on the same day former Mayor Beatrice Dale and others launched a recall drive against Roehrer and Spellman, accusing them of not voting "according to the wishes" of their constituents.
Roehrer, Krohn and Spellman said the suspensions and recall drive are payback for their vote, along with Fesenmaier's, to appoint former Mayor Spyro Condos to a vacant council seat rather than schedule a special election.
Spellman said Condos' appointment gives development opponents a 5-3 majority on the council. That's something Chesen and development proponents won't stand for, Spellman said.
Condos also is the target of the recall effort.
"The underlying issue is the development community has been in control of the city council," Spellman said, noting that the mayor previously held a tie-breaking vote. "The council has always filled vacancies by appointment."
Chesen did not return a telephone call seeking comment Thursday evening.
Dale initiated a successful recall drive that ousted Condos from the mayor's office in 2001 amid accusations of unauthorized spending and other abuses that were disputed by the incumbent.
Posted by Aaron Kramer at 9/12/2009 10:05:00 AM
Wednesday, September 9, 2009
Answers to frequently asked questions regarding the Mercury Marine incentive package
NOTE: I am posting this as an informational item, not as an endorsement of the sales tax. What do you think of the tax? Please vote in the poll (to the left) or share your ideas under the comments section.
At FCEDC, we've been fielding some questions from both the public and the media regarding the recently released local incentive package being offered to Mercury Marine. In light of this, we felt it would be helpful to share these questions and the answers with all of you.
How much land is being acquired and what will it be used for?
There are three parcels near the Hickory and Pioneer intersection – 1.57 acres, 10.10 acres, and 9.41 acres. The City will utilize a Tax Increment District (TID) to fund the acquisition with expectations that the three parcels may be developed as commercial opportunities at some point in time.
Is Mercury Marine being given $50 million as a grant or is this a loan?
The $50 million is being provided in the form of a low interest rate loan with the expectation of repayment over the 12-year term. We are anticipating that the company will not get the entire loan up front, but rather it will be disbursed over an 18-month period of time. The loan will be collateralized and is considered “performance-based.”
So if it’s a loan and it’s going to be repaid, why do we need the sales tax?
With the reduction in the interest rate (the loan is at 2% versus the County borrowing at market rate) and potential credits for job retention and creation, the company won’t be paying enough to cover the debt service from the borrowing. The sales tax is being recommended to cover that “gap."
How much sales tax could be needed to cover that “gap?”
The max “all in” annual amount – that is if the company earns every single credit available to them - is just over $3 million annually.
How does Mercury Marine earn the credits again? Is that what the “performance-based” statement means?
Mercury Marine can earn credits towards the repayment of the loan by retained jobs ($500 credit per retained job) and creating new jobs ($1000 per credit). The credits are based upon how well the company performs. We will be utilizing the same baseline measurement of employment as the Wisconsin Department of Commerce for the measurement. So, for example, if the company retains the baseline number of jobs and adds 300 new jobs, the credit towards the repayment would be $1,063,000.
Is there a limit on how much the company can earn as a credit?
Yes. The agreement caps the total number of jobs at 2,900. This would equate to a maximum annual credit of $2,137,000. This would be deducted from their repayment amount and provides us with the maximum annual gap of $3 million previously mentioned.
How much is that per job? It seems like a very large number.
If Mercury reaches all the credits possible and the sales tax is paying a gap of $3 million annually, it equates to approximately $12,400 per job at Mercury Marine in local incentives. A threshold of $20,000 per full-time job is typical for economic development loans.
So what if the company doesn’t perform? Some people think they are just going to move anyway.
This is a 12-year agreement so if the company doesn’t maintain its presence in Fond du Lac, the loan will immediately becomes due and payable in full. There is also a $500 penalty for each job not retained at the baseline level previously mentioned.
What happens if the company goes bankrupt?
The City of Fond du Lac and Fond du Lac County are guaranteeing the loan and a proportionate rate (28% City, 72% County). The sales tax would still be utilized to cover a portion of the debt service from the borrowing, but then the City and County would need to make up the difference to cover the balance of the debt service. Note though that we previously indicated that the loan will be collateralized. This means that the City and County will have property and/or equipment pledged from Mercury Marine. If something does happen, the City and County would sell that asset to attempt to cover the remaining debt rather than it coming from the taxpayers.
Other businesses, large and small, in Fond du Lac County are also struggling. Why are we only helping Mercury Marine?
While the magnitude of the impact that Mercury Marine has on our community justified the size of the incentive package, the tools being utilized, the programs tapped into and the expertise utilized to put the package together are similar and in some cases identical to those previously used for other Fond du Lac County businesses. Fond du Lac County’s revolving loan fund, for example, at the end of 2008 had a portfolio of $3.6 million. In 2008 alone, $1,592,500 was approved in loans to local businesses from this one fund alone. Existing business development services are available to any business in Fond du Lac County through Fond du Lac County Economic Development Corporation.
So how much will be collected for the sales tax and does Mercury Marine get all of it? If not, what happens to the rest of the money?
The $3 million represents less than half of the estimated annual sales tax revenue (projected at $6.5-$7 million in current economic climate) with the balance planned to be utilized for economic development, reduction of County debt, and property tax relief.
What happens to the .5% county sales tax once the 12-year loan is done? Do we still need to pay the tax or is there a sunset?
A sunset clause has been mentioned and briefly discussed. There will need to be further discussion on whether a sunset date is incorporated into the authorization of the sales tax. County Board action is needed to either extend the timeline, or eliminate the tax, and this can be done at any time with proper notice.
Is the .5% county sales tax the only option?
No. The gap could be placed on property taxes but that would equate to an approximate 10% increase on the County portion of the tax bill. The 2008 rate was $5.03/$1000 so a 10% increase would be $.50 per $1000. An owner of a home worth $125,000 would see an increase of $62.50 annually while an owner of a home worth $250,000 would experience an annual increase of $125. A wheel tax on motor vehicles registered in Fond du Lac County could also be implemented. This would add $100 per each vehicle registered.
The sales tax is consumer driven and many food items, medications and other medical-related items, and motor fuel are not subject to the .5% sales tax. Of the $6.5-$7 million collected annually, approximately 22% is paid by people not living in Fond du Lac County.
If you have any further questions, please do not hesitate to contact us at (920) 929-2928 or info@fcedc.com.
Posted by Aaron Kramer at 9/09/2009 10:29:00 AM