Brew City plans Third Ward store

Brew City Beer Gear Inc. is extending its brand of Milwaukee- and Wisconsin-related products to the Historic Third Ward. Brew City’s first non-mall location, at 407 E. Buffalo St., will sell local apparel, posters, books and glassware.

Brew City has also teamed up with Stone Creek Coffee to sell its locally made coffee, and will release a custom Third Ward blend.

Another attraction will be a Class A beer license, so that Brew City can retail Wisconsin-made micro-brews from its Third Ward location.

The new retail location is just below Brew City’s corporate headquarters and production facility, where it designs and prints its products for wholesale and retail markets. Its Third Ward location will feature several warehouse sales each season, with special pricing.

In the past two years, Brew City Beer Gear has opened three locations, grown its wholesale business through in-house production facilities, and developed an integrated retail Web site with e-commerce engines, at www.brewcityonline.com

Brew City currently has retail locations at The Shops of Grand Avenue, Mayfair and Brookfield Square. Brew City Beer Gear Inc. has been in business since June, 1986.

Wisconsin’s new governor focuses on small business

By Steve Jagler, of SBT

As the state’s new governor, Jim Doyle is making two promises to Wisconsin’s businesses: 1) He’s not going to raise your taxes and; 2) He’s going to do what he can to limit your costs for employee health insurance.
If Doyle is successful, those objectives would provide welcome relief to business owners, who repeatedly identify their tax burdens and employee health insurance costs as two of the largest impediments to economic growth in Wisconsin.
Doyle, who was inaugurated as the state’s governor Jan. 6, acknowledges his task won’t be easy. As a Democrat, he has always subscribed to the notion that government can help people. Yet, with the reality of inheriting a projected state deficit now estimated at $4.3 billion, his options for social programs are limited, at best.
In a recent interview with Small Business Times executive editor Steve Jagler in Madison, Doyle insisted he will keep his campaign pledge to hold the line on taxes and will find a way to create a pool for Wisconsin’s small businesses to join with the state and negotiate for lower employee health care insurance premiums.
Doyle, who actually lived for a time on an Indian reservation, also intends to enlist the help of Wisconsin’s Native American tribes to help build some of the state’s infrastructure. The tribes told Small Business Times in 2002 they would like to spend $600 million in economic development in Wisconsin, but they need longer gaming compacts and a handful of other concessions from the state to make that happen.
Doyle’s cabinet has more of a Milwaukee flavor than the cabinets of recent administrations: Marc Marotta, a partner at the Foley & Lardner law firm in Milwaukee, is Doyle’s nominee for secretary of the Department of Administration; David Riemer, a former City of Milwaukee employee, is Doyle’s nominee for budget director; Michael Morgan, a former City of Milwaukee employee and officer of Milwaukee’s Helen Bader Foundation, is Doyle’s nominee for secretary of revenue; Frank Busalacchi, a Teamster and a member of the Miller Park and Summerfest boards, is Doyle’s transportation secretary nominee; Antonio Riley, a Democratic Assemblyman from Milwaukee, is Doyle’s nominee to oversee the Wisconsin Housing and Economic Development Authority; and Cory Nettles, an attorney at Quarles & Brady, Milwaukee, is Doyle’s commerce secretary nominee.
The following are excerpts from the SBT interview with Wisconsin’s new governor:

SBT: Marc Marotta, David Reimer, Michael Morgan, Frank Busalacchi, Antonio Riley and Cory Nettles — these are people with credibility in Milwaukee. You’ve got to be thrilled with the level of competence you’ve been able to bring on board here.
Doyle: Well, I am. We’re still in the process of putting together a very strong team. It certainly is a team that is tuned in well to business. I understand that it’s not going to be in the state government that we’re going to be creating jobs in the state. It’s going to be in the private sector. In fact, I want to reduce the number of state jobs, so I want to really be working with businesses to expand the job base and (the base) of good-paying jobs in the state, and I also understand that small businesses really are the lifeblood of that.

SBT: I’m sure you’re aware there are many business people who don’t like the notion that ANY Democrat is in the governor’s office. What do you think your administration can do to bridge that gap, that perception that people might have in the business community?
Doyle: (Laughs) Well, I would assume and I would hope the appointments I made would send a pretty clear signal of how I regard our need to grow and develop our business base here. And there are some people who have voted Republican and are never going to vote for a Democrat, but I think people in Wisconsin realize this is a time we really have to pull together.
I’ve inherited a $4.3 billion deficit. So, business fighting labor, and Democrats fighting Republicans, big cities fighting rural interests. … Maybe in flush times you can have all those fights, but in the times we’re in, you can’t have them. We really all have to pull together.
I have a very strong belief that there is no social program that is better than a job, and that’s what we should really be focused on — getting this economy growing and growing in a way that’s producing good jobs. The only real long-term answer to this is economic growth, and I’m going to be very focused on that.

SBT: Can this budget be balanced without raising taxes?
Doyle: Well, sure. I believe it has to be done without raising taxes. I just read that we are the fourth-highest taxed state in the country, so I don’t think we have any more room to go. So, it has to be done.
Now the question is can it be done painlessly. The answer to that is no. There are going to have to be some very difficult decisions made. This is not going to be business as usual. We are going to have to reverse the trend where the government spends more year after year, even if the revenues aren’t there.
I’ve been elected governor. Those are the circumstances we’re in. My job is to be the leader of this state as we get our spending back in line and budget back in balance.
SBT: Internally, will it be somebody such as Marc Marotta who will be really focused on maximizing efficiency and making cuts where there need to be cuts?
Doyle: He’ll play a very key role. As the head of the Department of Administration, he’s in charge of putting together the state budget. He is the person I selected for one of the most important jobs in the administration.

SBT: Some people are skeptical, that although you might not raise taxes, you’ll instead raise fees. There already are many government fees imposed on Wisconsin businesses. Many people simply consider them taxes. Will fees be increased?
Doyle: Well, I have no intention of trying to figure out how to "trick" people into paying higher fees to help balance this budget. I don’t think that’s appropriate.
If there would be any fees raised, it would only be because over the years, the costs of running a program perhaps have grown significantly and the fees have not.
But I think you have to adhere very closely to the purpose of the fee. It should not be a disguised tax. It shouldn’t be a way of, "Oh, we need more money, can’t we up that fee?"

SBT: What about the notion of repealing the personal property tax? Is that on the table?
Doyle: Well, not right now. I’ve got to balance this budget. So I don’t think this is the time to go through major changes of our tax policy. I’m always open to new ideas (about shifting tax burdens), but frankly, between now and this budget I have to put together by June, I think what we basically should do is keep our tax structure as it is and say, "OK, this is the income we have. Now, we have to figure out how to get our spending in line with that income."

SBT: The two issues that business people talk to me about every week are: 1) taxes and, 2) employee health care costs. We’ve already talked about taxes. Is the notion of establishing a pool for small businesses to link with the state government to get more bargaining power for lower premiums a priority for your administration?
Doyle: Yes, it’s a very high priority. What you’ve just described, I’ve heard it constantly for the last two years. I hear it all across the board. I hear it from small business. I hear it from farm families, which really are small businesses. I hear it from labor, where they’re going to the bargaining table, and they’re finding the employer saying, "Look, you’re going to have to give back on wages to cover your health insurance," and they know the employer isn’t lying to them. It’s not the employer who’s making the money here.
I would like to help, and I think the place to start is with small businesses and farm families to be able to get the benefit of the state’s bargaining power. I hope what we’re going to be able put together by the time the budget is finally passed is a pool in which small businesses and farm families can sign up, and when the state bargains for health insurance coverage for the state workers, it can bargain for better prices. It wouldn’t be the state paying for the insurance.
SBT: Right.
Doyle: It would be the state using its leverage to try to bring those insurance costs down for people.
You know, it really pains me, and I’m sure you do hear it too, when a small business (owner) will say to me, "You know, we’ve prided ourselves in providing health coverage for our workers, and we’re not able to do it anymore. With 15, 20, 25 percent increases in health premiums, the choice is between going out of business or cutting the health insurance."
I know that these employers just feel terrible about it, because it’s something they’ve prided themselves in taking care of their employees, and it’s just getting tougher and tougher to do.
So I hope we can use the state’s leverage to try to bring some of those costs down for small businesses and farm families.

SBT: Is there anything else that comes to mind that can be done to help control health care costs?
Doyle: Part of it is, I hope the market really goes to work. Some insurance companies are now developing different-tiered systems. I think you’re going to find that more and more people are going to choose those second and third tiers, and it’s going to make the high-end providers have to come down.
In prescription drugs, if small businesses and others are able to purchase through buying pools that the state has established, we can bring down prescription drug costs. And maybe it’s true with hospitalization costs as well.
I don’t know if we can get all of that done in the first six months here. … But over my four years as governor, believe me, I’m going to be very much focused on how we try to make health insurance more affordable for ordinary men and women, whether they’re employers or employees. They’re all facing the same crunch right now.

SBT: Switching to Indian gaming — I know your life experiences when it comes to Native American issues, tribes and compacts. The tribes recently told Small Business Times they can "rebuild" this state. At a time when the state is essentially broke, is the notion of longer compacts and some of the concessions they are pushing for in return for that investment in the state an appealing idea?
Doyle: Yes. I hope we can go into these negotiations with a win/win kind of attitude here. I have no problem negotiating longer compacts with the tribes. These enterprises are here to stay. Potawatomi isn’t going to shut down in Milwaukee.
So I think the tribes make a good argument that they are able to finance their operations better and make better long-term investments in their businesses and in surrounding businesses if they have longer-term compacts.
I’ve also indicated that I’m more than willing to talk about increasing the kinds of games. I’ve never quite understood the logic that said, "You can go play Black Jack, but there’s something wrong with roulette."
So I think there are things the state can do for the tribes and things the tribes can do for the state. Our interests in many ways are very much aligned, if we can strike the right deal.

SBT: Does the right deal involve the state taking a larger percentage of the tribes’ gaming revenue?
Doyle: Yeah, if you look at what the state needs right now, it needs money. And this is a source of money that is not a one-time deal. This is an ongoing deal. But I want to make it clear. I really want to work closely with the tribes on this. I think we’re at a spot right now, where we have some very common interests in getting these compacts done and getting them done very quickly.

SBT: To switch gears again — I saw Frank Busalacchi in the hallway before I came in here, and I asked him whether we are going to build freeway lanes or railroad tracks. Would you consider the Marquette Interchange the highest priority of transportation issues in the state?
Doyle: It’s the highest, single-most visible one. Generally, making sure we have good roads that allow raw materials to be brought into the state and manufactured products to be taken out of the state, and good roads for farm products to move on and good roads for the people to move on. … It’s very, very important.
Now, the Marquette Interchange is clearly the most visible immediate need. It clearly is, not only for Milwaukee, but for the eastern part of the state and even coming out of the west from Madison. So much of the commerce in this state comes out of that Marquette Interchange, so it’s very important we take care of it.
At the same time, we can’t just say all of our road money is going into the Marquette Interchange. We have a lot of very important road needs all around the state.
We have other very important transit needs. This is a massive balancing act that we’ve got to accommodate all of these needs with shrinking dollars. It’s one of the significant challenges that’s been handed to me.
I wish in the 1990s somebody had been putting money away for the Marquette Interchange, but they didn’t. So now, we’ve got what almost everyone agrees is an outdated road system, and its life is coming to an end, and we’re going to have to do something about it.

SBT: Wisconsin Energy Corp.’s Power the Future Plan — What is your take on that? Is it the answer to the state’s energy needs?
Doyle: I think the general notion of trying to get a plan on the books that people can look at … is very important. Whether this is exactly the plan — the Public Service Commission still has to make some major decisions on it.

SBT: Wisconsin tried to jump on the dot-com bandwagon in the 1990s, and so much of that economy collapsed. How important is the state’s high-tech economy?
Doyle: I see the high-tech economy as not only being the stand-alone dot-com companies, but it’s how we’re making sure that our long-time manufacturing base has the best production technology and is using the Internet and other technology to find market for its products.
I also hope that we’re really going to work to develop the sort of higher-octane, smaller businesses that are information-based. I think that is one of the real strengths of our state — the level of education of the workforce.
We have fallen behind in this area, and it’s not right that we’ve fallen behind. When you look at what we have in this state, we should really be a high-tech, biotech center. We have one of the greatest research universities in the country.
This is Wisconsin’s great strength – our educational system.

SBT: There’s so much to do. And such a limited pool of money with which to do it, even with the best of intentions. How can we as a state and you as a governor accomplish all of these things, given the current economic reality?
Doyle: Well, it’s going to be tough, but I liken the position that I am in very much to someone who’s brought into a company that’s a good, solid company. The state of Wisconsin is a wonderful place. The basic, the most important building blocks are all here — the educational system, the environment, the work ethic of the people, the intelligence and creativity of the people. This is really a great, great place.
We are in unprecedentedly difficult economic times. So, just as someone coming in taking over a sound company that is having some real serious problems, we’ve got to get to the other side of these problems. We’ve got to address them honestly. Clearly, it’s going to call for a reduction in spending to get our budget back in line with our revenues. It’s going to call on us over four years I am governor in this term to see what we can do to get businesses growing. There’s no doubt about it, we’re going to suffer some real pain, more than Wisconsin is used to.
I believe, once I do deliver an honestly balanced budget that is going to put Wisconsin back on the track of having a sound financial picture, that we’re going to be much healthier and we’ll be much more able then to concentrate on the things we really want to do — good education, good business development, protecting the environment, helping young people get into the business world. Those are all things we want to do.

Jan. 24, 2003 Small Business Times, Milwaukee

CEO predictions for 2003

By Harry S. Dennis III, for SBT

Where do you begin? The stock market in 2002 was the third consecutive year that, as one pundit said, "clawed everyone."

On the other hand, the economy grew at a 4% clip in the third quarter. Fourth-quarter growth, many "econs" say, is anticipated to be half that.

Well, it’s been traditional each year in this column that I report what our TEC members are saying as we launch 2003. We’re only looking at viewpoints in Wisconsin and Michigan. So here are the viewpoints.

We surveyed 540 TEC members and got a 30% response. First on the list was the status of the US economy. Forty-nine percent believe a rebound will occur in the second or third quarter of 2003. Only 6% think it will happen in 2004.

Better than half surveyed see a growth rate of 1% to 2%. And because of that expectation, the outlook for capital expenditure and operating expense increases/decreases for the next two quarters is as follows. Nearly 40% see a decrease in capital expenditures, and 53% report that they intend to reduce their operating costs from figures a year ago.

No matter how you cut the mustard, our members are telling us that we are not out of the woods, at least for the next two quarters. But for the year as a whole, a more positive picture emerges:

— 54% indicate that they will increase capital expenditures by 10% or more.

— 49% plan to increase their employee base by 5% or more.

— 88% see their revenues increasing from 10% to more than 20%.

Very interesting is that only 12% of our members report that they intend to "retrench" over the next six months. Fifty percent state that they are repositioning to accelerate growth, and nearly a quarter of them intend to make capital investments to make that possible.

A war against Iraq looms in everyone’s thinking. Seventy-eight percent of our TEC member sample sees such a war as having no impact or a mild negative impact on their business. And if you think high-energy prices are a concern, it ranks far behind concerns about higher taxes and the lack of qualified, skilled labor.

Home security remains an issue with 40% of the respondents saying that they are more concerned than they were a year ago. On the other hand, 78% report that home security issues have no impact on their businesses.

Here is an interesting data point: nearly 90% expect to see health insurance costs increase by at least 20% this year!

For the manufacturers out there, concerns about business moving offshore, specifically to China, remain alarming. One-third of the respondents see offshore, low-cost labor as a major threat to their businesses. A similar percent intend to increase outsourcing to compete with the offshore problem.

One TEC member said it best: "They can import manufactured goods into our country duty free; we export goods to their country and pay the piper!"

Where are most TEC businesses included in our survey focusing their efforts in this new year? Three categories surfaced as major priorities:

1. Sales, marketing and customer efforts

2. Financial efforts (internal)

3. Launching new products

So where does this leave us now in 2003? Actually, this year’s survey was far more positive than last year’s survey for companies in our neck of the woods. Sure, we have our disappointments. But if you read the press, you cannot help but note that much of the news deals with big local area companies making changes that are condemning to our local Wisconsin/Michigan economy (e.g., Briggs recently moving its 9HP line back to Alabama, affecting a net 47 jobs).

The news about small and medium-size businesses is not that bad at all in the grand scheme of things. We are tough and getting tougher. I keep hearing these fundamentals over and over again:

1. Stay very close to the customer.

2. Everything is negotiable.

3. Hire smart.

4. Fire smart.

5. Keep a close eye on the cash.

6. Build for the future, not the past.

7. Use trusted advisors!

Until next month, stay warm, smile, and enjoy great business progress in our new year!

Harry S. Dennis III is the president of TEC (The Executive Committee) in Wisconsin and Michigan. TEC is a professional development group for CEOs, presidents and business owners. He can be reached at 262-821-3340.

Jan. 24, 2003 Small Business Times, Milwaukee

Partnership launches commercial real estate market report

By Steve Jagler, of SBT

Measuring the pulse of the Milwaukee area’s commercial real estate market is about to get a lot easier.

The first Southeastern Wisconsin Commercial Real Estate Report has been completed, documenting the state of the market in the third and fourth quarters of 2002.

The report for the first quarter of 2003 is forthcoming, and the report will be completed quarterly on an ongoing basis, according to Mark Eppli, Marquette University’s Robert Bernard Bell Sr. chair in real estate in the school’s Department of Finance.

The initial reports have been compiled by Marquette interns Jonathan Mulcahy and John Amman, who were assigned to the project by Eppli.

The detailed report is a product of the Wisconsin Commercial Data Exchange (WCDE), which was formed in June 2002. The WCDE research director is Brian Parrish, and its market analyst is Thomas Makarewicz.

The WCDE is partnering with the Marquette University Real Estate Program and The Business Journal’s Commercial Real Estate Quarterly for the report.

The report is being offered by the Commercial Association of Realtors Wisconsin (CARW), a nonprofit association of more than 525 members from various commercial industries.

The report condenses information from 215 commercial real estate brokers from about 50 local companies.

Each quarterly report will provide market statistics, investor survey results, market forecasts and other information about the commercial real estate markets in eight counties: Milwaukee, Waukesha, Racine, Kenosha, Walworth, Washington, Ozaukee and Sheboygan.

The report also breaks down the information by submarkets within the counties.

In addition, the report provides information on comparable sales, lease rates, sublease rates and investor surveys.

In its first edition, the report noted the following vacancy rates for the eight-county region: industrial, 5.9%; office, 10.4%; shopping center retail, 3.7%; and freestanding retail, 3.4%.

In Milwaukee County, the report indicated the following vacancy rates: industrial, 7.9%; office, 11.4%; shopping center retail, 4.9%; and freestanding retail, 4.4%.

The highest vacancy rates in southeastern Wisconsin, according to the report, are: industrial, 7.9% in Milwaukee County; office, 12.1% in Waukesha County; shopping center retail, 11.1% in Ozaukee County; and freestanding retail, 15.1% in Walworth County.

Trends noted in the survey include:

— The average industrial lease rates in Waukesha County are consistently higher than the rates in Milwaukee County.

— Class A office lease rates in Milwaukee County are consistently higher than those in the surrounding counties.

— Retail lease rates in Waukesha County are higher than those in Milwaukee County.

The decision by the CARW board of directors to create a commercial information exchange system that produced the data for the report was applauded by Christopher Ruditys, executive vice president of the organization.

"That choice hopefully will prove to be the biggest asset for the commercial real estate industry in Wisconsin since Juneau and Kilbourn first plotted the streets for what eventually became downtown Milwaukee," Ruditys stated in the first report.

Ruditys predicted the CARW will expand from southeastern Wisconsin to cover the entire state by the end of 2003.

He also predicted the organization will form its first political action committee (PAC) to amplify the voice of the state’s real estate industry.

Further information about the report is available by contacting CARW at (414) 271-2021.

Jan. 24, 2003 Small Business Times, Milwaukee

Swartzberg & Dugan merges with Madison law firm

DeWitt Ross & Stevens, Madison’s largest law firm, is expanding its range of legal and professional services in the Milwaukee market by combining its practice with the Swartzberg & Duggan law firm in Greenfield.

The newly expanded firm will continue to use the Swartzberg & Duggan offices at 5075 S. 76th St. In addition, the office will continue to add other attorneys and will combine additional law practices in the coming months.

The firm plans to relocate its Milwaukee-area attorneys to new offices in the Brookfield area in the early part of summer.

“Milwaukee and the I-94 corridor between Madison and Milwaukee continue to be an area of growth and development for Dewitt Ross & Stevens,” said Stephen A. DiTullio, managing partner and president of Dewitt Ross & Stevens. “Combining our areas of practice with those of the well respected firm of Swartzberg & Duggan allows us to more effectively serve our clients and create an even stronger legal presence in this important market.”

Sandy Swartzberg, managing partner of Swartzberg & Duggan, said, “The partnership offers our firms opportunities for continued growth as well as to meet the demands of our clients’ growing needs.”

Swartzberg, who will oversee the Milwaukee office operations, founded Swartzberg & Duggan in 1979.

Dewitt Ross & Stevens currently represents several Milwaukee-based companies in the insurance and environmental industries, and plans to expand that representation to include additional Milwaukee-area companies.

New attorneys joining Swartzberg and the current ream of attorneys in Milwaukee are M. Susan Churchill, who has had her own law practice for the last 12 years with an emphasis on employee benefits law, and David V. Meany, whose 20 years of experience includes commercial litigation and e-business areas.

Dewitt Ross & Stevens expects to announce the combining of additional practices into the Milwaukee office in the coming months. The firm currently has nine focused practice groups with more than 30 practice areas.

Dewitt Ross & Stevens has more than 70 attorneys. Its three offices include the new Greenfield office, on the Capitol Square in Madison and on the west side of Madison. The firm is on the Web at www.dewittross.com.

Christine Clements, dean of UW-W’s College of Business and Economics, plans to reach out to the business community

By Kay Falk, for SBT

Christine Clements became dean of the University of Wisconsin-Whitewater’s College of Business and Economics in July 2002. She’s been at UW-W for 13 years, beginning as an assistant professor in the Management Department. As one of two women deans in the UW system, she plans to take a good college and make it better.
"The preceding dean was here for 25 years and did an outstanding job. I came into a college with very good basic talent and resources," she says. "The climate for universities in general and colleges of business has changed in the past few years, however. I want to retain the quality, but launch some new initiatives."
An external focus is key to her initiatives. In the past, colleges tended to look at their accrediting agencies to tell them where to improve. They would then look internally to put those things in place and evaluate progress.
"Now we need to be externally focused," Clements explains. "We must look at all constituencies — not only the students and faculty, but also the employers of our students both for internships and permanent jobs; businesses throughout the region and state; and the state of Wisconsin itself. So when we look at our distinctive competencies, we have to ask ourselves how do we use them to serve all constituencies."
The educational trends that relate to her external focus include:
— Better assessment – Constantly looking at how business views the product the college is producing. The college has a business advisory board in place for a number of years but, in addition, over the past five or so years, it has been expanding advisory boards to each academic program.
"These professionals in the field meet with the program’s staff once or twice a year to get feedback on how well we’re doing," she notes. "This is important because, besides seeing if students are learning what we’re teaching, we need to assess its relevance to the environments where they’ll be working. We also need to figure out how life in business is going to change and make sure we’re preparing students to be leaders."
— An international viewpoint – "Many of UW-Whitewater’s students are regional and have never been outside this region," Clements says. "But they’re going into a global economy; all business is global these days. So we need to do a much better job of preparing them to understand how to operate in business on a global level. We would like to do that by increasing international experiences for our students and faculty by getting them into an international environment and having more international people on campus."
— Seamless transitions from school to work – This requires integration of the world of business with the academic world before students walk out the door. "We continuously work on the quality and quantity of internship opportunities," she says. "It’s the rare student who graduates without the experience."
Bringing industry into the university also helps the transition. "We have expertise in the classroom, but it’s powerful when we integrate that with the day-to-day experiences of people working in those professions," Clements affirms. "Professionals spending time in classroom is very useful. And having students go out, have the experience and carry that back and relate it to academic work is great, too. To be truly effective, our faculty has to be involved, as well."
— Including small businesses in the curriculum – The college has an entrepreneurship emphasis in its general management degree program. "We offer courses in most departments that focus on small business, and also have a small business consulting class. In it, teams of students work with small businesses to address problems," Clements notes. "For example, a business might need help in selecting an accounting system or developing a policy and procedures manual. In our entrepreneurship class, students develop business plans and feasibility studies they could take to a financial institution to request funding."
That class also brings in two or three entrepreneurs during the semester. One is termed the entrepreneur in residence, and he or she comes back several times to help teach the course. "There’s nothing like hearing it straight from the horse’s mouth," she emphasizes.
Because the regional economy has a number of small businesses, Clements would like to enhance opportunities to work in those organizations, either through internships or consulting teams. "We’d like to expand our offering of services at greatly reduced rates in the accounting or technology areas, for instance. Many companies don’t have the expertise in those areas and can’t afford to hire major consulting firms," she says.
— Greater number of nontraditional courses and platforms for offering courses – Most universities focus on degree programs, yet there’s a tremendous demand for certificate programs. "For example, work has changed and some people don’t have the background they need," she explains. "We now offer a non-degree certification programs in e-commerce and human resources management. That type of program should expand to meet the demand."
The Web and technology are allowing flexibility in course platforms and distance learning to reach nontraditional students. "We do have an online MBA program that was ranked in the top 25 in the country last year," Clements comments. "We have a large number of faculty in the college who are trained to teach effectively online. We have the technical support necessary to reach companies that are looking for specific training, but don’t want to send employees out of house to get it. It’s very exciting for us. We first offered the on-line MBA program in 1997 and we currently have 200 to 300 students in it. Right now we just offer the graduate program, but we have several undergrad courses online too. This is likely to expand."
She continues, "These courses do not isolate students, either. Students can be put into discussion groups or online course rooms where they’re actually interacting with other people and working together on projects, even though they never leave their workplace or home. Some argue that it’s more broadly interactive because introverted people who might not participate in traditional classroom discussions are more comfortable participating. The faculty can also monitor who is participating and who isn’t."

Jan. 24, 2003 Small Business Times, Milwaukee

Opponents say plant would turn Oak Creek into ‘Coal Creek’

The organizers of Responsible Energy for Southeastern Wisconsin’s Tomorrow (RESET) are lining up their arguments against Wisconsin Energy Corp.’s plans to build three new coal-burning plants in Oak Creek.

— Coal-burning power plants are the single largest source of industrial air pollution in the nation.

— Coal-burning power plants release more mercury into the environment than any other industry in Wisconsin. By contrast, natural gas plants emit no mercury, no sulfur dioxide and far less particulate matter, nitrogen oxide, carbon monoxide and carbon dioxide emissions.

— An expanded plant in Oak Creek would diminish property values, prohibit future development near Bender Park and the lakefront, damage agricultural crops, spew more mercury into Lake Michigan and scare businesses (and jobs) away from the region.

— The number of trains, "two miles long," carrying coal into the plant would double, disrupting the lifestyles and commerce of the community.

— The new plant would require two smokestacks, each 675 feet high (higher than the U.S. Bank Center in Milwaukee).

— "Superconcentrated" solid waste would need to be stored on the site.

— The cheaper costs of coal generation would be far outweighed by the added costs on the environment and the health of residents in the region.

Jan. 24, 2003 Small Business Times, Milwaukee

Lori Jochem has been named corporate administration manager at Wauwatosa Savings Bank. Her previous position was manager of the HR department. The bank also has promoted Wendy Rice to IRA department supervisor.

Victor Baez has been named vice president of corporate program management at MGS Mfg. Group in Germantown. MGS is a provider to the plastics industry, with facilities located in Wisconsin, Illinois and Texas.
Amanda Robinson has been named marketing firector for the Wisconsin Ready Mixed Concrete Association. Most recently, Robinson was marketing coordinator for Hunzinger Construction Co. Prior to Hunzinger, Robinson served as technical communication coordinator for Johnson Controls. She received a bachelor’s of science in communications from UW-La Crosse with an emphasis in journalism.
Lisa A. Olson has been named a personal trust administrator at Associated Trust Co., part of Associated Wealth Management. Throughout her more than 20 years in the financial services industry, Olson has served in a variety of investment capacities, most recently as a trust advisor with Bank One Private Client Services in Milwaukee. Michael D. Jerrett has joined Associated Trust Co. as an employee benefits administrator in the Milwaukee area. Throughout his more than 10 years in the financial services industry, Jerrett has served in a variety of investment capacities, most recently as a retirement services account manager with Wells Fargo Retirement Plan Services in Milwaukee. Jerrett earned a bachelor’s degree. in business administration from UW-Platteville.
Jim Goetz has been named director of corporate finance in the Mergers and Acquisitions Group of Wipfli Ullrich Bertelson. Goetz’s primary responsibility will be working with businesses in eastern Wisconsin (from Green Bay to Milwaukee. Goetz has more than 25 years of in-depth experience working with equity/debt placement, divestitures and acquisition assistance.
Patsy Lederer has joined KeyLink Solutions in Thiensville as human resources manager. Lederer has more than 25 years of experience in human resources/benefits management and is a current member of the Society for Human Resources Management. She has held positions of HR manager, senior HR manager, corporate HR manager, and vice president of human resources in the manufacturing industry. Patty Enders has been promoted to supervisor of Self Funded Administration at KeyLink Solutions. In addition to supervisory experience, Enders has had first hand experience as a senior administrative representative. Enders has been with KeyLink Solutions since August 2001.
James S. Swiderski has joined the Milwaukee law firm of Weiss Berzowski Brady as an associate in the Business Law practice group. Swiderski’s practice will include corporate law, securities law, international law and Indian law. Swiderski is a graduate of the University of Notre Dame (B.A., 1992) and the University of Wisconsin-Madison (J.D., cum laude, 1999). He was previously with the law firm of Reinhart Boerner Van Deuren.
R&R Insurance Services, Inc., one of Wisconsin’s largest and most diverse independent agencies, is pleased to announce the promotion of
Sue Voigt has been promoted to the position of account executive, personal lines, at the West Bend office of R&R Insurance Services. Voigt brings more than 17 years of insurance-related experience. She has been with R&R Insurance Services since July 2001. Elisabeth Wright has joined R&R with 13 years of claims handling and customer service and sales at Blue Cross Blue Shield of Wisconsin. Wright is currently attending Marquette University in pursuit of her degree in law studies with a minor in business organization and leadership.
Kirk Thomas and Marcia Deckert have been named application support analysts at Virtual Care Provider in Milwaukee. The company, which serves the technology needs of the long-term-care profession, also has appointed John Wilson as its system engineer, Lisa Kutil as senior software QA specialist, and Melanie Fogt as business systems consultant. Sherry Cribb has joined the company as a call center operator while Peter Kiely and Kurt Knipper have been named sales representatives.
Elisa Mason has joined Extendicare Health Services in Milwaukee as a payroll specialist while Jessica Sengejo has joined the company as a senior file clerk.
Lance Capps has been named executive chef at The Pfister Hotel in Milwaukee. Capps comes to The Pfister from the Grad Geneva Resort in Lake Geneva, where he served as executive sous chef for seven years. He holds a degree in culinary arts from Johnson & Wales University in Providence, R.I., and is an American Culinary Foundation certified chef de cuisine. Capps will oversee menus and day-to-day culinary operations for The Pfister’s food-and-beverage outlets including Celia, Café Rouge and the Lobby Lounge. Meanwhile, The Pfister has named Peter Zellmer its director of sales and marketing. Zellmer spent the last six years as assistant director of sales at the Grand Geneva Resort, and earlier worked in sales with Hilton Hotels and Renaissance Hotels in Chicago. He is a 1990 graduate of UW-Stout with a degree in hotel and restaurant management.

Jan. 24, 2003 Small Business Times, Milwaukee

We Energies defends Oak Creek proposal

Commentary, by Bob Hall, for SBT

Editor’s note: This is Wisconsin Energy Corp. response to concerns over its Power the Future plan, which proposes building three new coal-fired electricity generating systems at its Oak Creek plant. This response was written for Small Business Times by Bob Hall, plant manager at the Oak Creek Power Plant operated by We Energies, a subsidiary of Wisconsin Corp.

When the topic of this area’s future energy needs is discussed, the response offered by critics of our Power the Future plan needs to recognize some powerful facts.

Here are three:

1. Energy use growth is reliably projected to be 3% to 4% per year. Our area is experiencing a growing energy shortage that is manageable if we act soon.

2. People and companies in this area are doing an excellent job of conserving energy, so very little additional reduction is possible from just a conservation approach. The growth in need is real.

3. There will be cost and availability uncertainties of fuel supplies for the foreseeable future.

This fundamental reality requires that any plan We Energies develops to address the growing electricity shortage take into account both the environmental impact of our decisions and the effect on the families and businesses of the region as they seek fuel for heating and other personal uses.

Power the Future is our company’s 10-year growth strategy, designed to address our region and Wisconsin’s growing energy needs. The plan involves building 2,800 megawatts of new, in-state generation, improving our existing generating facilities and upgrading our electric distribution system.

We have stressed a mixed fuel strategy that relies heavily on coal in Power the Future. We have proposed building both natural gas-fueled and coal-fueled power plants. We believe a diverse fuel mix strategy enables We Energies to deliver what the public expects in energy supplies, protects customers from fuel shortages and to some extent moderates the huge price spikes that occur when there is market uncertainty.

There are some other important realities. Power the Future will have a positive environmental impact. When our Power the Future plan and our agreement with the Wisconsin Department of Natural Resources are fully implemented, our system-wide emissions will be lower than they are today. For example, sulfur dioxide will be reduced more than 50%, nitrogen oxide more than 65% and mercury more than 25%, while we generate 50% more energy.

We Energies is currently investing $137,000 every day to cut emissions from our existing fossil-fueled power plants. Those investments will continue for at least the next 10 years. The three coal-fueled units that are proposed for Elm Road Generating Station in Oak Creek will benefit from the most advanced technology available and meet the toughest environmental regulations, and will remove 80 percent of mercury, 95 percent of sulfur dioxide and 85 percent of nitrogen oxide.

I have worked on and off at the Oak Creek Power Plant for the past 24 years and have lived in the area for just as long. The company has 537 employees and 160 retirees that live in Racine County and 190 employees and 29 retirees that live in Oak Creek. All of us, including our families, have to look at what our company proposes and does from the perspective of local residents, because that’s who we are.

Whatever impacts our proposal has on Oak Creek will be felt and experienced by all of us as well.

This issue is about resolving a growing energy shortfall, a situation being experienced virtually everywhere in America. Traditional simple solutions, like just buying excess energy elsewhere, will be increasingly difficult to accomplish as everyone seeks to respond to their local growing energy requirements.

We believe that when Power the Future is thoroughly examined by regulators, government officials and the public, together, the correct decision will be made and our area and the state will have an environmentally sensible, reliable, sustainable energy plan that will be affordable for customers.

To get there, we need to focus on the right question, which is "Where is the energy we know we’ll need going to come from?"

Jan. 24, 2003 Small Business Times, Milwaukee

Telfer named provost, academic vice chancellor at UW-W

Richard Telfer has been selected as the University of Wisconsin-Whitewater’s new provost and vice chancellor for academic affairs, the top academic post at the university, Chancellor Jack Miller has announced.

Telfer, who has been an associate vice chancellor for academic affairs since 1997, has also served as interim provost since April 2002. He emerged as the top choice from a national pool of candidates and five finalists who interviewed on campus in December.

"Dr. Telfer has done an excellent job since he began the position nine months ago and I believe he will continue to function at a very high level in the future," said Miller. "He is greatly committed to helping this campus move forward."

Telfer, has been with UW-Whitewater since 1985 as a professor of curriculum and instruction.

Despite difficult financial issues facing the state, UW-Whitewater needs to stay focused on its areas of strength, Telfer said. "My hope is, by keeping a longer view, we will get past the tough financial times with our focus on our core values and our mission intact," Telfer said.

Many initiatives started in recent months have the potential to create a lasting impact on the university, Telfer said. One such example is the new Advisement Center, which will make six new advisors available to UW-Whitewater freshmen this spring. The project is supported by student tuition and has a goal of improving retention and graduation rates.

Diversity is another issue getting renewed attention, Telfer said. UW-Whitewater a state leader in recruiting and graduating students of color, but a campus committee recently suggested more work is needed to promote a diverse curriculum. The chancellor launched a campus-wide training program that will make up to $100,000 in funding available to faculty and staff, and Telfer will help steer that effort this spring.

Other works in progress include a core values campaign that is helping the university steer a long-term course for the campus. Telfer is also working with the faculty personnel rules committee on an effort to redefine faculty personnel rules to give young faculty a clearer picture of their expectations.

"I see a lot of our future progress being a continuation of these efforts," Telfer said. "We also have the potential for growth in the sciences, in technology programs and in online and blended curriculum."

On the facilities front, the current Upham Hall renovation and the upcoming business building project will greatly enhance science, business and technology instruction, he said. Strong demand is also pushing enrollment growth in technology programs such as the online MBA and management computer systems. On the other side of the coin, budget cuts will force the university to manage enrollment with the expectation of taking fewer students. Telfer said the university will also work to improve the academic profile of its freshman class, while remaining committed to being a campus of opportunity for students from disadvantaged or under-represented groups.

"One strong feeling across the university is that we would like to increase our quality as measured by class rankings and ACT scores," he said. "We are working with the Faculty Senate on this effort."

The position of provost and vice chancellor for academic affairs serves as the chief academic officer for the university, steering the planning, development and review of all academic programs. The position oversees a $48 million budget, more than 400 faculty and staff, and all academic and outreach programming.

Jan. 24, 2003 Small Busines Times, Milwaukee

Saying no in negotiations
How to reject an offer without causing rancor

By Christine McMahon, for SBT

Question: I am having a difficult time rejecting the offer of the other party in a negotiation without causing rancor. What are some techniques I can use to be more effective?

Answer: Rejecting an offer can be a delicate balancing act. While most customers are forthright in communicating that an offer is unacceptable, there are situations where such an approach would be inappropriate. I find that to be especially true when negotiating with co-workers and supervisors. That arena is more politically charged and the consequences can be painful.

How you say "no" is critical to the response you are going to receive. You must be prepared. Not only must you have the right words, but you must also practice how you are going to deliver it. This is not the time to test how well you think on your feet.

A defensive attitude will trigger resistance. Anything that may come across as personal in your communication will be interpreted as a personal attack. There are no shortcuts. You must prepare. You must practice your delivery. And you must control your emotions or your outcomes will be compromised.

Here are six ideas that may help you in saying no gracefully:

1. Align and redirect – Give the appearance of agreeing, and then ask the other party if he or she has considered an alternative option that you think is a better solution. For example: "I hear what you are saying about the turbo-cylinder; have you considered the output potential of attaching a max-2B unit?" If the person says "yes" and walks you through the discovered results, then follow by asking a question that addresses your concern about the turbo-cylinder unit. That might sound like: "What was the impact to the turbo-cylinder when the override mechanism hesitated?" That will help you to create doubt in the solution without saying "no." You are merely asking neutral questions.

2. Create common ground by addressing the higher intent – When it feels like conflict is brewing and you need to release some of that negative energy, it’s always helpful to bring the conversation to a higher level of purpose that you all agree to. For instance, when people are on the verge or have already engaged in heated discussion, it’s helpful to say, for example: "We all agree that meeting the customer’s deadline is the most important outcome and in fact is non-negotiable. Is that correct? Then our effort is best invested by focusing on cost-effective solutions. We all agree that time is of the essence."

3. Be positive. Acknowledge the other person’s good intention even though you didn’t like the outcome. It’s like gracefully accepting a birthday present that you think is hideous. It’s the thought that counts. You might say something like: "I appreciate your offer. In other circumstances, I can see how this would work very well. I see several situations where it’s not a strategic fit. I do want you to know that I appreciate your time and effort."

4. Present an alternative and incorporate the other person’s idea if possible. When you turn something down, if possible present an alternative idea that incorporates some aspect from the original offer even if it’s just an acknowledgement about what the other person tried to accomplish. This sounds like: "Joe, I think you are on to something regarding taking X and adding it to Y to get Z. While that formula wouldn’t solve this situation, it leads me to think about another option."

5. Don’t refuse everything. If tempers are rising and it looks like a resolution is not going to happen, you might want to make a concession to show your desire to want to work with the other party. Most times showing some degree of flexibility and willingness to work with the other party can be a deal maker. Select something insignificant to you but possibly an ego-booster to the other party.

6. Offer a conditional "no." Couch your objection in the form of a conditional "no" rather than an outright rejection. In this case, you agree to accept the other party’s offer if he/she in turn accepts your proposal or counter-offer. You would say: "Jerry, I would be delighted to move forward with this project if you get Bill’s approval and signature."

Saying "no" is tough stuff. It’s difficult predicting how the other party will respond unless you have experience negotiating with that person. People take their ideas and solutions seriously. Some people take personal offense when other people take a different position than they anticipated.

When negotiating, you always want to build bridges with the other party, even if you disagree on the issue/solution. People can be disappointed and even angry you didn’t like their solution, but if they respect you and know you have integrity, you have an open door to continue building that relationship.

Christine McMahon is the owner of Christine McMahon & Associates, a training and coaching firm in Milwaukee. She can be reached at 414-290-3344. Small Business Times readers who would like a negotiating situation addressed in this column can send a fax to 414-290-3330, or e-mail her at: ccm@christinemcmahon.com. Her column appears in every other issue of SBT.

Jan. 24, 2003 Small Business Times, Milwaukee

New senior residential project will be ‘centerpiece’ for West Allis

By Mark Kass, for SBT

The City of West Allis has acquired 10 properties that will be sold to a Mequon real estate development firm that plans to build a $7 million residential and commercial development.

General Capital Group has proposed the West Allis development, which will be similar to a project the company has proposed in the Town of Waukesha.

The company plans to take advantage of the growing senior housing market in the Milwaukee area, while at the same time offering retail to the residents of the housing developments, said Michael Weiss, president of General Capital.

The West Allis development would be located on the southeast corner of South 65th Street and West Greenfield Avenue. The four-story project would include 80 units of housing, along with 9,000 square feet of retail development on the first floor that will front on Greenfield Avenue.

"There is so much happening in such a tight geographical area," said Sig Strautmanis, vice president of development for General Capital. "Our studies have found that West Allis is an attractive market for this type of development. There has been a very quick absorption of this type of housing in this area."

The firm was directed to the site by city officials, said John Stibal, director of planning and development for West Allis. He said the city required a "new urbanist" look for the building, with parking in the rear, a high amount of density and retail on the first floor of the development.

he city has granted the necessary approvals for the project.

Stibal said he has followed General Capital’s work in other Milwaukee-area communities and was pleased the company chose West Allis for the project.

"I have been impressed with the quality and the unique type of development they have done throughout the area," he said. "They don’t build junk."

In West Allis, the city’s requirements involving the appearance, density and quality probably added 15 percent to the cost of the project, Stibal said.

"We have a high benchmark for developers, and General Capital was willing to step up to the plate," he said. "This is going to be the centerpiece of our redevelopment efforts in that area."

In the town of Waukesha, General Capital has proposed a $7 million mixed-use development that would include 78 units of housing and 20,000 square feet of retail. The 6-acre site on West Sunset Avenue is located adjacent to a Kohl’s Food Store that General Capital developed about three years ago.

Strautmanis said General Capital is working to find a restaurant and about nine stores or service businesses that would cater to the apartment residents and larger community.

In both projects, General Capital has applied for state tax credits from the Wisconsin Housing and Economic Development Corp., which will require the firm to set aside a number of apartments for households earning 60 percent or less of the county’s median income. The company expects to begin construction on both projects over the next several months.

General Capital has quietly built a long resume of projects since Weiss started the firm in 1996 after leaving Midland Development, a Cincinnati, Ohio-based retail developer. Weiss, who grew up in the Milwaukee area and attended Brown Deer High School, returned to Milwaukee in 1992 after six years as a real estate loan officer for Citibank in New York City, where he participated in loans totaling more than $3 billion.

After leaving Citibank, Weiss joined Midland Development and opened a Milwaukee office. In 1996, Weiss left Midland to start General Capital with his brother, David, who also worked for Citibank. The firm’s third partner is Steve Schnoll, a former Trammell Crow Co. executive.

In all, Weiss and his partners have developed about 20 projects in the Madison and Milwaukee areas.

General Capital’s two most prominent developments to date are the redevelopment of the former Brown Port Shopping Center near Interstate 43 in Fox Point and the redevelopment of the dilapidated Germantown Square Mall at North Pilgrim and West Mequon roads in Germantown.

The Germantown project was complex because of environmental contamination on the site from a former dry cleaner. The land was remediated, and the shopping center is now almost 100 percent leased with a Kohl’s Food Store as the anchor.

"Every deal presents unique challenges but we’ve been able to work through them and complete projects that have added value to the community," Weiss said.

General Capital is currently working on its largest development proposal in the City of Milwaukee. In October 2002, the firm proposed a major shopping center for Milwaukee’s northwest side, in partnership with Milwaukee developer August Urbanek. The $25 million, 380,000-square-foot development, called The Boardwalk, would be built on 43.5 acres just east of Highway 45 and south of West Good Hope Road.

If built, it would be the largest retail shopping center built in the Milwaukee area since the development of Northridge Mall and Southridge Mall in the early 1970s. Weiss said General Capital is working with the City of Milwaukee to rezone the land from office and hotel to retail. He is confident the rezoning will occur in the next few months.

"We have already had a host of retailers interested in the development," Strautmanis said. "I believe we will have a number of new retailers to the area that will have only one store in Milwaukee."

Over the years, General Capital, which had specialized in retail development, has moved into other areas of development, such as residential and office. Rather than following the lead of many other developers, who have specialized in working with large retailers and following them around the country, Weiss decided he wanted to limit the firm’s developments to Milwaukee and Madison.

"We are all young guys with families, and I didn’t want to spend three to four nights a week on the road," he said. "Milwaukee is a good market, but there are not unlimited deals to be done. We knew that we had to diversify our development plans."

Julie Penman, commissioner of the Milwaukee Department of City Development, said the city and General Capital have enjoyed a good working relationship for several years.

"They understand the value that lies in urban markets – on both retail and industrial development deals," she said.

Penman said the city partnered with General Capital in the late 1990s on the development of a 45-acre business park near North 68th Street and West Calumet Road. The project increased the property value of the site by $10 million and served as the city’s first joint effort to develop a business park.

"(General Capital) took the initiative to assemble the property in what was previously a fairly inaccessible location," she said.

Jan. 24, 2003 Small Business Times, Milwaukee