CAPITOL REPORT
Mining Bill Passage Prompts Debate
The recent unveiling of Assembly Bill 426, Wisconsin’s new mining legislation is seen as a pathway for economic growth for some and a threat to the environment for others.

The bill’s goal is to streamline the regulatory process of iron ore mining in Wisconsin and it specifically allows an applicant for an iron mine to consolidate some of their regulatory permits under their mining permit — particularly for high capacity wells and wetlands. Another change would require the Department of Natural Resources to approve a mining application within 360 days.

The impetus for the legislation is the construction of a $1.5 billion iron ore mine southwest of Hurley by Gogebic Taconite, an operation that the company estimates would employ 600 to 700 workers. The average salary of the proposed jobs is projected at $83,000 a year, including benefits which proponents of the mine say would provide an economic boost to one of the poorest regions of the state. 

Opponents of the legislation, however, are concerned it could conflict with the Great Lakes Compact, adopted in 2008 by eight Great Lakes states to prevent others from drawing water from the basin. Gogebic requires large amounts of water for its operations, and the bill allows the DNR to give strong weight to economic considerations when evaluating the effects of a well at the expense of protecting water resources.

We’ll have more on this on-going debate with an in-depth analysis by John Rondy in the March issue of Corporate Report Wisconsin.

Potential Recall Election Costs Looming
County clerks around the state already faced with tight budgets are questioning where they’ll find the funding to pay for a gubernatorial recall election.

Efforts to recall the governor started while local officials throughout Wisconsin adopted their 2012 budgets, but most county officials did not earmark money for a recall due to the uncertainty of the situation. Many counties most likely will look at cost-saving measures or will turn to their general fund or any contingency funds on hand.

As of presstime, recall supporters say they have collected over 500,000 of the 540,208 signatures needed to bring the issue to a vote. The deadline for submission is Jan. 17.

Conceal Carry Permits Swamp State Agency
On Nov. 1, Wisconsin became the 49th state in the country to allow the concealed carry of weapons, prompting thousands of people to flood the state Department of Justice with paperwork.
 
The applicants so far amount to about 1 percent of the state’s population, and very few requests have been rejected. The number of state background checks for handgun purchases is also up more than 50 percent for the year — another sign of the large numbers of people taking advantage of the new concealed carry law.

The state Department of Justice has been able to process all the applications and background checks within the deadlines set by state law, but the time frame for handling concealed carry permits changed from 45 days to 21 days on Dec. 1. 

According to DOJ spokeswoman, Dana Brueck, “People are working weekends and doing everything they can to meet the new deadline.” Brueck said DOJ officials had expected 100,000 concealed-carry applications to be filed in Wisconsin in the first year.

Walker Signs Executive Order
The child abuse case at Penn State has prompted Gov. Walker to sign an executive order that would penalize University of Wisconsin System employees if they don’t report child abuse or neglect.

Staff affiliated with the university system are now subject to the same obligation as teachers, law enforcement officers and social workers to report any suspicion of sexual abuse.

Violation of the executive order doesn’t carry a legal penalty, but those who violate the order could be subject to discipline by the university system, a Department of Justice spokeswoman said.

STATEWIDE
More Venture Capitalists Sought By Investment Board
In an attempt to help Wisconsin and the Midwest gain more attention from coastal venture capitalists, the State of Wisconsin Investment Board (SWIB) will invest as much as $80 million in California-based Northgate Capital. 

According to Tom Still, president of the Wisconsin Technology Council, the investment should translate into a benefit for high-potential start-ups in Wisconsin and surrounding states.
Northgate is big enough in size and reputation that the investment will open channels for SWIB that otherwise would not have been available and allow SWIB portfolio managers to tout the region’s best entrepreneurial efforts, Still said.

Business Plan Contest Accepting Entries
The ninth annual Wisconsin Governor’s Business Plan Contest is accepting entries online for the 2012 competition until 5 p.m. on January 31. The contest is designed to help entrepreneurs turn their ideas into business plans, to prepare them to launch a company, to get feedback from mentors and to interact with investors and other professionals. Finalists will share in more than $100,000 in cash and in-kind prizes. Visit www.govsbizplancontest.com for details

E-Cycling Program Has Collected 35 Million Tons
Figures released by the state Department of Natural Resources indicate the electronic recycling program is having a positive impact.

The E-Cycle Wisconsin program is a result of a 2009 state law that requires electronic manufacturers to fund a recycling program for old televisions, computers, monitors and other electronics for homeowners and schools. The program was initiated in January 2010 and during its first six months, 10.4 million pounds of old televisions, computers and other electronics were collected. Over the year that ended this past June collectors took in 35.1 million pounds.

NORTHEAST
BUSINESS BRIEFS
Wisconsin Business Leaders Optimistic
Business leaders in northeast Wisconsin said their companies outperformed those in the Madison and Milwaukee areas in 2011, and they are more optimistic about their prospects for 2012. Dane County and the Milwaukee-Waukesha region also saw cause for optimism. The results are based on the First Business Economic Surveys for Dane County, the Milwaukee/Waukesha area and the northeast region.

Here are some survey highlights from Fox Valley executives:
•    Forty-five percent said they were more profitable in 2011 than 2010.

•    Fifty-six percent said their companies had higher sales in 2011 than the year before.

•    Seventy-five percent expect their companies to perform better in 2012.

State’s Largest Wind Farm Complete
Glacier Hills, the 90-turbine wind park near the village of Friesland in Columbia County is online, and is expected to generate 162 megawatts of electricity or enough over a year’s time to power 45,000 homes.

WE Energies operates the wind farm and says when costs are finalized, the project will come in below the target of $363.7 million set by the state Public Service Commission.

Wisconsin contractors participating in the project included Edgerton Contactors, Michels Corp. and Boldt Construction with towers manufactured by Broadwind Energy, formerly TowerTech of Manitowoc.

Playoff Games in Green Bay Pay Huge Dividends
During the Super Bowl XLV run, the Green Bay Packers played all three playoff games on the road. This year the possibility of two extra games at Lambeau Field during this year’s charge to the Super Bowl would be worth more than $20 million in outside spending in the community.

A study of the 2009 season for the Green Bay/Brown County Professional Football Stadium District determined that 85 percent of people attending regular-season Packers home games are from outside Brown County, and they provide an economic impact of $12.3 million per game.

NORTHWEST
BUSINESS BRIEFS
New Medical School in Wausau Explored
Aspirus and the Wisconsin College of Osteopathic Medicine are investigating the possibility of developing a medical school in Wausau. According to Duane Erwin, president and chief executive officer for Aspirus this is just a preliminary discussion to address an impending physician shortage in the state. According to Erwin, a new medical school, however, would also drive economic activity throughout the region, and increase access to healthcare.

The Wisconsin Hospital Association recently issued a report on the state’s physician workforce, asserting that Wisconsin must attract and keep 100 new physicians a year to meet rising demand. This number is in addition to the physicians Wisconsin currently is adding.

Paper Company Sells Timberland
The Lyme Timber Co. based in Hanover, N.H. and The Forestland Group of Chapel Hill, N.C. will buy a total of about 80,200 acres from Wausau Paper. The deals, which encompass land in northern Wisconsin are worth $42.9 million and will provide Wausau Paper with funds to finance an expansion of its tissue division at a facility in Kentucky. 

Peter Stein, managing director of Lyme Timber, said the company intends to manage the 72,800 acres of forest land it is acquiring much as it was managed by Wausau Papers.

According to Stein, Lyme Timber has no near-term changes for the land, meaning it will continue to provide Wausau Papers with a wood supply for its pulp and paper operations.

He added that Lyme Timber is likely to talk to state officials about the possible sale of a conservation easement — a practice the company has pursued with other forest land.

SOUTHEAST
BUSINESS BRIEFS
Milwaukee No. 2 in Manufacturing
According to a new study by Praxis Strategy Group, Milwaukee is ranked number two in the nation in terms of how it expanded its “heavy metal” manufacturing sector. The study indicates Milwaukee is well positioned for the future with a wide array of manufacturing firms ranging from machine tools to energy. Over the past years, the study says the region added almost 3,900 heavy metal jobs, and has consistently led other Great Lakes communities in job creation.

Milwaukee Company to Build Chinese Equipment in Midwest
Oldenburg Group has signed an agreement to build wind-turbine cranes and other heavy construction equipment for the Chinese firm Zhengzhou New Dafang Heavy Industry Science and Technology Co.

“At a time when so many American products are produced in Chinese factories, we are happy to return the favor,” said Oldenburg President Timothy Nerenz.

The contract, valued at more than $100 million, will bring several hundred jobs to Oldenburg factories, which are located in Rhinelander, northern Michigan, and Virginia.

DNR Gives Initial Okay to Waste Facility
Construction Materials Recycling, LLC is proposing to build and operate a facility that recycles concrete, plastics and metals from construction and demolition projects at the B.R. Amon & Sons asphalt plant and gravel pit, located northeast of Elkhorn.

A preliminary assessment by the DNR indicates the business should not have a negative impact on the environment. A screening process will eliminate inappropriate products.

According to the company’s proposal, materials that cannot be recycled will be hauled to a licensed landfill. The company estimates it will accept an average of 104 tons of material daily.

SOUTHWEST
BUSINESS BRIEFS
Rock County Still Reeling from Loss of Manufacturing Jobs
The number of Rock County businesses, the number of employees and their average pay is at an all-time low in the 2000s.
Once known as a manufacturing hub with high wages to match, Rock County has suffered a more significant hit in the manufacturing sector, primarily because of the demise or decline of several major manufacturers in the last five years, including General Motors and several of its suppliers.

James Otterstein, Rock County’s economic development director indicates, there are pockets in Rock County where wages have increased significantly.

Examples include the plastics, food and metalworking machinery manufacturing sectors, which experienced an average annual wage growth of 33 percent since 2001.

These companies tend to be smaller, privately held, niche manufacturers with fewer employees.

Madison Company Chosen by Soft Drink Giant
Virent Inc., a Madison company working on renewable fuels, has been chosen by The Coca-Cola Co. as one of three companies to supply plastic bottles made entirely from plants, not petroleum.

Virent’s process uses plant sugars to create a range of products with the same molecular structure as those made from petroleum. The chemicals are being developed for use in gasoline, diesel and jet fuel, plastics and synthetic fibers.

The agreement with Coca-Cola will let Virent continue to develop the technology and design a plant to make its chemical, BioFormPX, which can be produced from agricultural waste products such as corn stalks and pine tree scraps.

New Dairy Opens Near Janesville
Late last month the $30 million Rock Prairie Dairy welcomed the first of 4,600 cows to its 160-acre parcel in the Town of Bradford. The mega dairy houses cows in barns more than 1,000 feet long and varying in width from 100 to 128 feet. The facility will be capable of housing 5,200 cows, making it the fourth largest in the state.

When the system is running at full capacity, it can milk 700 cows an hour, and can transfer milk from the cow to the milk truck in about one minute, according to Scott Argall, whose Belleville company, Argall Dairy Systems, installed the dairy’s milking system.