GREATER BELOIT COMMUNITY AND ECONOMIC DEVELOPMENT UPDATE GBEDC - PowerPoint PPT Presentation

GREATER BELOIT COMMUNITY AND ECONOMIC DEVELOPMENT UPDATE GBEDC Board Meeting March 11, 2015

UPDATE ON RECENT ECONOMIC DEVELOPMENT ACTIVITY

Economic Development Activity City Center (Downtown)

Ironworks Redevelopment  Location: 655 Third St.  $38 Million renovation  YMCA may relocate to the south end  A $1 Million WEDC Idle Industrial Sites grant awarded to the City of Beloit to support the project

PHOENIX BUILDING DEVELOPMENT Downtown Mixed-Use Development ▫ 40,000 SF ▫ $4 Million Investment 23 of 27 Residential Units are Rented Lucy’s #7 Burger Bar ▫ 430 E. Grand Ste. 101 ▫ 2,709 SF ▫ Open end of April Zen Sushi & Grill ▫ 430 E. Grand Ste. 102 ▫ 3,000 SF ▫ Open late summer

200 West Grand / 100 East Grand 200 West Grand – Former Kerry Manufacturing Facility purchased by HCP ▫ Partial demolition work to begin in 2015 ▫ Ironworks type mixed-use redevelopment 100 East Grand – Former Kerry Office Building HCP in final negotiating stages to purchase from the City ▫ Retain FatWallet as a tenant ▫ Undertake a complete external renovation

Economic Development Activity Industrial Development

Pratt Industries Vertically integrated manufacturer of corrugated  packaging materials Announced major project this past December  50 Plants US/Mexico  $1.6 Billion in Revenue  4,400 Employees  5 th Largest in the Country  World’s largest corrugated packaging company,  privately-held 100% recycled paper & packaging

Proposed Project  Construction of a new corrugated container board manufacturing facility  Producing 600 tons a day at capacity  350,000 SF Facility, 10,000 SF Office  $52 Million Private Capital Investment  140 New “Green Collar” jobs

Time is of the Essence  Pratt has an aggressive goal to begin construction this April.  Gaining DNR Approval to mitigate the previously delineated on-site wetlands at 1901 Gateway Blvd would have required an extended review period that would not accommodate Pratt’s required start date.  Therefore, Pratt has elected to build the facility at an alternate site at 1405 Gateway Blvd.

Proposed Site Plan 1405 Gateway Boulevard

Proposed Perspective

GBEDC Discretionary Grant  $200,000 discretionary grant  Grant proceeds to be used for construction related activities  Source: GBEDC retained earnings  Agreement includes a “Clawback Provision” if the job creation/retention goals are not met

Summary of Incentives Value Combined City/State Incentives City/GBEDC $3,834,519 WEDC/WisDOT $4,850,000 Alliant Energy $200,000 GRAND TOTAL $8,884,519

Project Milestones Original Development Agreement Approved • 12/22/14 Amended Development Agreement Approved • 2/23/15 Close on land transaction by March 31, 2015 • Begin construction by April 2015 • Facility fully operational by January 2016 • Job creation/retention schedule: •

Ecolab  Entered into a long term lease for the former SEC building at 1630 Apex Dr.  244,233 SF  Warehouse distribution

Chicago Fittings  Specialty Fitting Manufacturer  Relocating from Belvidere to the Gateway Business Park (3170 Colley Road)  4.26 acre site  30,000 SF building  $2.36 Million Investment  15 new jobs  Klobucar Construction – Design/Build contractor Closed February 27 th  Begin Construction as early as April 

Western Container  10,000 SF Addition- completed late 2014

CCI/Blackhawk Transport H.Q. Project  New H.Q. building for both businesses  To be located on Townhall Road (East of Gateway)  2 Story 22 ,000 square foot office building  $1,760,000 construction cost  Nearing completion

Medical Radioisotopes  Company plans to develop a production facility linear accelerators to produce isotopes used in diagnostic medical imaging  50,000 SF facility nearing completion  Phase 1 will create 12 new jobs  Recently received a $5.2 Million Dollar Grant from the DOE

General Commercial Developments (Greater Beloit)

The Beloit Club  Hendricks Commercial Properties purchased property August 2014  Groundbreaking October  New 24,000 SF Clubhouse  New Pool Area  Improved Golf Course  Open May 2015  New Flexible Membership Levels

Ironworks at South Beloit  Southwest corner of I-90 and IL Rt. 75  Proposed 450,000 Square Foot Retail Development  15-16 Tenants  Meijer Supercenter Anchor Tenant  Final Plat Approved in May  On Hold 2016 or 2017

Woodman’s Markets  Multiple projects: warehouse expansion, gas station, car wash and convenience store  21,546 square foot addition  $3,500,000 Investment  Final Phase (Warehouse to be complete in 2015)

BELOIT SENIOR HOUSING Proposed New Assisted Living Residential Complex  2250 West Hart Road  44-100 units being proposed  5 acre development  Project will create 24 new jobs  $5,000,000 private investment

Cherry Tree Assisted Living  72 total units located between Shuster Drive and Cranston Road  48 Residential Care Units  24 units will be in a Community Based Residential Facility with a Memory Care Center  4 acre development  Project will create 60 new jobs  $5,000,000 private investment  Developer has purchased property

OTHER NOTABLE COMMERCIAL PROJECTS Buffalo Wild Wings  2747 Milwaukee Road  $875,000 Renovation  Open fall South Beloit  In the process of creation TID #1

Workforce Development Activity

Full-time Career Advocate position hired at BMHS  Lindsey Healless started in February  Funded by the Hendricks Family Foundation (3 years)  Forge a line between local current workforce needs and students  Data driven with goal orientated objectives  Pilot program with goal to expand regionally, state and national

PUBLIC IMPROVEMENT and SCHOOL PROJECTS Town of Beloit Sewer Treatment Expansion Project $3.9 Million Dollar Project will allow for increased capacity • Fran Fruzen Intermediate School 102,500 SF New construction • $17,250,000 (estimated) Capital Investment • Estimated completion July 2015 •

Milwaukee Road Improvements – Phase I • Sidewalk improvements • New crosswalks • Signal updates • Landscaping • Construction to begin this summer

Business Retention and Expansion program 204 Interviews conducted to date

RLF Update • Loan Portfolio Update • 4 loans • $157,969 lent out • 1 loan delinquent • Funds Available • $274,620

Juicy Veggie Closed on loan in December 2014 ($25,000) Maggie Finley Juice Retail Bottling / Distribution Business • 2090 Shopiere Road • 900 SF • 7 jobs Hopes to open this week

Investors Update  Paid Investors YTD: 64  Past Due: 5  New Investors YTD: 4  Budgeted Income: $65,000  Income YTD: $60,247

Unemployment for the City of Beloit Month/Year Rate Rank December 2013 9.6% 2 January 2014 10.5% 2 February 2014 10.6% 2 March 2014 10.3% 2 April 2014 9.2% 2 May 2014 8.9% 2 June 2014 9.5% 2 July 2014 9.5% 2 August 2014 8.2% 3 September 2014 7.0% 3 October 2014 7.4% 3 November 2014 7.4% 2 December 2014 7.7% 2 *Source: Wisconsin Department of Workforce Development, Bureau of Workforce Training – Labor Market Information Section

Economic Development Activity Summary of Current Economic Development Activity New Number of Jobs Square Feet Value Total 252 1,015,546 $166,595,000 Summary of Economic Development Activity Since 1999 New Number of Jobs Square Feet Value Total 3,286 4,199,948 $692,428,195

Thank You!