The city is one step closer to paying a company to bring jobs to Racine.The Finance and Personnel committee voted 3-1 Monday night to allow the city to enter into a developer's agreement with American Tire and Recycling, which is based on the Wisconsin-Michigan border in Niagara, Wis.
The city would pay American Tire $39,600 to cover the company's rent at 2301 S. Memorial Drive for 18 months. In exchange, the company is committed to creating 88 jobs over 18 months, with city residents getting first shot at the jobs.
City Development Director Brian O'Connell said the jobs incentive grant was "unique" for Racine.
"I don't think I've brought anything to you that's only a jobs incentive grant," O'Connell said.
Committee members passed the proposal despite unanswered questions. Aldermen asked City Development Director Brian O'Connell to find out how much the jobs will pay and if they're union jobs.
Alderman Terry McCarthy also requested the company lay out a specific schedule for when it will create jobs, and then have the city tie the rent payments to job creation.
O'Connell said the city would pay American Tire's rent on a quarterly basis, with the first payment of $6,600 coming when the company takes occupancy of the South Memorial Drive Building.
The company is committed to immediately hiring 33 low-skill workers and 20 truck drivers for the Racine site. It intends to ramp up to two shifts with a total of 88 workers over the next year and a half.
While the low-skill jobs may not pay great, O'Connell said, they're needed in Racine. The city has a large unskilled workforce that could use jobs that don't require degrees or advanced training.
"There are a lot of people without skills who need money," O'Connell said.
The meeting started with O'Connell taking some heat from the committee for providing a written review of the agreement on Monday, the same day as the meeting.
"Is there any way this committee can be better informed?" Alderman Q.A. Shakoor II asked O'Connell.
O'Connell said he didn't have an excuse. "It's the simple press of business," O'Connell responded to Shakoor. "I don't have a better reason."
Shields wanted to defer action on the proposal until the committee's Dec. 21 meeting, which may get canceled because it's the week of Christmas. That would push off a City Council vote to Jan. 5.
Instead, the committee voted to pass the proposal with the understanding O'Connell would bring more information to the City Council meeting on Dec. 15.
This was the second city committee to take up the proposal. The Redevelopment Authority approved the developer's agreement last week.
Keary Ecklund, head of American Tire and Recycling, did not attend either meeting, leaving O'Connell to present the agreement and answer questions.
HOW INSANE IS RACINE GOING TO BE? EVERYONE WHO VOTED YES TO THIS NEEDS TO GO!!
ReplyDeleteJust a few questions
ReplyDelete1) if they do not hire the numbers (and they will not) what will happen?
2) Of course you know that the $8.00 jobs will not get anyone off AFDC or Badger care so no one is gaining... well no one other then this company will gain any benefit.
3) Will Dickert now quit saying we are a green city since Biomass is not even close to being green?
So this company has yet to provide information to the city, and Brian O'Connell is giving different information to different committees? Why is the city passing this so quickly with so many questions?
ReplyDeleteNumber one to be asked is what does the company actually do. Redevelopment was told it was recycled tires to be used in playgrounds and other similar things. What was this committee told?
9:40
ReplyDeleteDoes it matter? They are are lap dogs of the Mayor and got to go.
Why is it ok for the information to be delivered so late, yet it still passes. The same men grill other developers for late delivery of information, while staff does whatever they can to delay the delivery. Hypocrites! With such obvious contradictions to their behavior, maybe they should all be relieved of their duties.
ReplyDeleteThese guys got a leg up really, at this rate it wont be long before a whole lot of us are burning tyres to keep warm.
ReplyDeleteBurning tyres wow and people are worried about coal.......
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ReplyDeleteAll of you CLOWNS, and yes, I mean CLOWNS, who voted for Dickert should be proud of yourselves.
ReplyDeleteAll of you should pay this amount out of your own pockets, not the pockets of taxpayers who were adamantly against him.
Becker was better than Dickert, minus the Pedo.
Many of the voting residents will be watching this one close! Any Alderman foolish enough to approve this without a contract stating ATR will employ, from Racine, 80 fulltime people will be removed from office! This threat, or as I see it promise, is not directed towards Digkerthead as that moron has not a chance in "HELL" of getting reelected!
ReplyDeleteWe need to start planing the defeat of Dickert and his lap dogs now.
ReplyDeleteHow many of these jobs you think will be filled with Hispanics without Documentation?
Yes Racine now on her way to be the new Detroit
Some of you have some very sharp words toward our city leaders(?).
ReplyDeleteDo you have anything constructive to say about city support for job creation?
There is a valid point to be made regarding the current supply of unskilled workers. The thing is that they made it sound like city of Racine people get "the first crack" at these jobs. I think that statement needs to be explored further because that was one of the bargaining chips for the $40k. We deserve to understand exactly what first crack means, and what language will be used in the contract.
ReplyDeleteIt was also stated that the $40k was an unusual tactic. I think we deserve to understand why it was used then, if it is so unusual, and will this be a tactic moving forward. If so, what are the basic guidlines for when to offer the incentive, and when not.
I don't necessarily disagree with the decision, as it takes money to compete for new business, but it raises questions and highlights Dickert's inability to articulate a coherent 10 year plan as promised during the campaign.
Once again, the city is bendinh over backwards for an outsider meabwhile long time Racine business owners and taxpayers can't get a return phone call from city hall. I want all involved to remember, that is our 40K.
ReplyDeleteA few years ago the Historic Sixth Street Association tried very hard to interest the city in Bucketworks, an exchange of skills program. If we taxpayers have $40,000 I think a better idea would be to give free rent to a program which offers training so that you can go an apply for a job that pays at least $10 with benefits. Otherwise you are dooming the workforce of Americans who are Racine residents to hopeless poverty problems. I don't believe the City should be in the real estate business.
ReplyDeleteTraining of Racine's residents is a better use of taxpayers' money. Funding a program such as Bucketworks and, in tandem, a serious consideration for welcoming defense training, guardian angels perhaps. This answers the fears expressed by so many residents for safety issues by acknowledging visable concern by the people.
6:59
ReplyDeleteI will when they do that. In fact I can name at least two groups that wanted to come and start businesses but were told no. Maybe because there was nothing in it for the good old boys.
Biomass is green. Trees are a renewable resource that's available in Wisconsin. Coal is not renewable and needs to be shipped in from long distances.
ReplyDeleteAs for this company being a "green" company, it is mentioned that the rubber product added to the biomass makes it burn more efficiently. Is the amount of electricity used to process the rubber until it is suitable to burn taken into account? if they're using so much energy to process it that it's making the lights dim in the town they were in, it sure seems that they're using a lot of energy (probably made by burning coal?) to add a little extra efficiency to the biomass fuel. It sure would be interesting to see the breakdown on this.
ReplyDeleteO'Connell and the RCEDC need to leave town now!
ReplyDeleteI have a dumb question. Is it even legal to require a company to hire from within the city limits? Or is this a handshake deal?
ReplyDeleteIt is nice to see all the Tousis sycophants out today. Keep it up, Tommy. Your friends are talking you right out of your fancy gas station.
ReplyDeleteDustin - apparently you haven't been reading new estimates of available biomass and that it is insufficient to sustain current let alone projected uses. Heather 8:07 and Anon 8:31 have great points/questions. Again, I'll ask if you or ANYONE has seen a business plan - prerequisite #1 for any entrepreneur ANYWHERE top get a single penny of funding.
ReplyDeleteThis whole thing is just plain stupid. The city is setting a dangerous precedence when, according to this post, "The city is one step closer to PAYING A COMPANY to bring jobs to Racine." And look at the jobs: $8 per hour unskilled labor jobs. It appears that when DICKert referred publicly to Racine as a "low-income city" that he meant it and intends to keep it that way. Spending $40,000.00 of taxpayer dollars to set up a privately owned, non-public company in business is obscene. That is over $2,200 per month that the taxpayers are putting out for only $21,000.00 per month in wages to be divided amongst 88 people (averaging only $240.00 per week per employee).
ReplyDeleteAdios to the pseudo-mayor and all of the city council members that vote in favor of this ignorant proposition, in the next election.
Dear 6:52 AM, I just returned from a trip to Detroit. Believe it or not, the Motor City looked pretty good compared to and with our town. Let's hope that Detroit doesn't backslide and morph into the new Racine!
ReplyDeleteMaybe I'm missing something, but don't states and cities give concessions to businesses all the time to attract them to their areas???
ReplyDeleteConservatives have no right to complain. This is what they always wanted ans promised was the only thing that could save the city. Well, here it is.
ReplyDeleteAnd all of you people that threaten the council that if they vote for this, then you're out are full of it. You know how many times that has been said? Empty threats with no follow-up is all it is. It is said so often that I don't think anyone on the coucil takes you seriously.
Anon 9:32,
ReplyDeleteYou are correct in stating that Conservatives are all for helping business to grow. This is usaully done through tax breaks and incentives not wellfare. It is our intention as fiscal conservatives to help increase business and decrease government, a philosophy that Liberal pigs such as yourself can not grasp. In reference to your statement about not being able to remove Alderman and even the Mayor from office, on election day, sit back and watch you maybe amazed to see how fast voters can remove those fools from office.
How is a tax cut any different??? That is corporate welfare too. It is an artificial subsidy that would nit otherwise exist. So what if was a lease payment or "tax cut". It is spending, period.
ReplyDeleteThe bottom line is that you're all talk and no action. If a tenth of thise threats were real the entire council would be gone by now.
Party on lying John!
ReplyDelete10:01
ReplyDeleteYou are right we need to act to remove the lap dogs.
10:53
ReplyDeleteYep, and until then we seem to have a contest going on for who is more full of crap.....conservatives ir the mayor
I agree as a business owner you contact the city for something you don't get a person and takes weeks to respond.They make False promises that are not kept! Would not recommend any other places I know to move here.EMPTY CITY HALL!
ReplyDeleteRight on queue....how many fake threats is that on this thread now?
ReplyDeleteGo ahead, Mr 10 year plan, do whatever you want because nobody will stop you. Oh, they say they will, but don't count on it. You have free reign to do and lie as you wish.
Why are we trying to set up a Michigan resident with a sweetheart deal?
ReplyDeleteHere is a crazy thought why not set up a Racine family with a business?
Why not set up a "Growing Power" site. We could sell all those products. The demand is there and that is truly green.
12:08
ReplyDeleteO'Connell has shown what he thinks of "Growing Power" type groups, that why The Racine Composting Co-Op is using land in the county. Interesting I understand that that group plans to employee a few from the inner city at around $12.00 Hr . Will they be offered any help from the City? I think not no cronies of the Mayor is involved
I found the business plan!
ReplyDeletewww.americantireandrecycling/nonsense/reviewedbycorridorexpert/giveusmoneyasap.com
Not so environmentally friendly as we are being led to believe:
ReplyDeletehttp://www.energyjustice.net/tires/
Dickert and his clowns must go. Dickert is nothing but a loser as far as government business, don't know him, don't want to. Turner was the guy and the people let it slip.
ReplyDeleteDickert's Trolls are starting to go after those they feel will not back The Mayor in his reelection bid. That being 90% of the City be busy guys.
ReplyDeleteSo much for Dickert's Green Industry jobs for Racine. Probably why they misrepresented it at a previous city meeting. Sounds better to say they are recycling tires rather than polluting the earth by burning them. I don't think that the mayor's concern for the environment (like for Racine's Beaches and lakefront) is sincere. I think that his only concerns and photo ops and big headlines. At least most of us here at school think so.
ReplyDeleteThank you Terry McCarthy for having the sense to ask the questions that you asked and for setting benchmarcks that will protect the tax payers!
ReplyDeleteJim Spangenberg g back to doing what you do best attemting to sell ugly furniture. You are such a wind up troll for whom ever is Mayor!
Agreed on Terry McCarthy. Good job and thanks for asking the good questions.
ReplyDeleteAnon 9:47am wrote: "In reference to your statement about not being able to remove Alderman and even the Mayor from office, on election day, sit back and watch you maybe amazed to see how fast voters can remove those fools from office."
ReplyDeleteOk Anon, you gonna run? You can't remove "these fools" if nobody runs and by the look of things, doesn't look like there is that much interest in the spring election. My prediction-incumbents by a landslide and all run unopposed.
http://www.journaltimes.com/news/local/article_8d0cf1fe-e456-11de-8038-001cc4c03286.html
ReplyDeleteDickert's Folly
Exactly 8:44
ReplyDeleteThe council has nothing to fear because nobody cares enough to do anything, especially the fake threats here.
Bob Turner! even Keith Fair
ReplyDeleteDustin:
ReplyDeleteWhy did you or do you support Dickert? Just curious.
NEWS FLASH
ReplyDeleteOrbs Carbs, Jody Harding, Graham, Wayne Clingman (Colt), Kate Remington, Pizzaman, Navrita, Racineres run for Alderman....NOT!!!!
And don't forget the guy from Dimples, the eyeglass guy, Wanek's daughter who spews smack and George Meyer -will they put their money where there mouth is or will they pass once again on their civic duty.
ReplyDeleteSee, the above is Dickert's trolls at work.
ReplyDeleteScrew alderman, I'm running for mayor!
ReplyDeleteOrbs, Or Else!
Another empty threat.
ReplyDeleteOther people should be allowed to compete for the help they are giving this guy. The opportunity should be open for many proposals. After all the tax payers are footing this bill. Lets see what our options are.
ReplyDeleteWe do need some new blood on the council. Hopefully none of these alderman get a free ride come election time. Let them defend themselves and convince the voters they are doing the job they were elected to do.
ReplyDeleteHave you looked at Keary Ecklund on CCAP???
ReplyDeletehttp://74.125.93.132/search?q=cache:X6RGiE082I8J:cjonline.com/stories/111501/spo_indoorfb.shtml+Kerry+Ecklund&cd=16&hl=en&ct=clnk&gl=us
ReplyDeletehttp://www.escanaba.org/bdscomm/ENVIRON/minutesENVIRON030507.pdf
ReplyDeleteMr. Ecklund said they are putting in a tire shredder in Painesdale, and the product from that operation would be used as Tire Derived Fuel (TDF) at various locations in the Upper Peninsula. TDF was a very efficient source of fuel and burns at 15,000 degrees.
Mr. Ecklund said more and more tires would be burned. The shredder would be a start.
http://www.escanaba.org/bdscomm/ENVIRON/minutesENVIRON030507.pdf
ReplyDelete"Mr. Ecklund also said in Wisconsin, communities receive money back from the State for
what they recycle, and that could be looked at in the State of Michigan."
NIAGARA, Wis. - After some delays, the city of Niagara, Wis. is set to receive a property deed from NewPage Corp. for 47 acres of the former Niagara paper mill sometime next week.
ReplyDeleteOnce the city receives the deed, limited operations can begin at American Tire & Recycling, said Niagara Mayor George Bousley.
American Tire & Recycling, owned by Keary Ecklund, is a tire recycling plant that has set up on Niagara's portion of the mill property. Bousley said that it will initially provide between 10 and 12 jobs, but numbers should grow with production.
http://74.125.93.132/search?q=cache:f_7lwy65AEwJ:www.ironmountaindailynews.com/page/content.detail/id/512386.html%3Fnav%3D5002+%22Keary+Ecklund%22&cd=22&hl=en&ct=clnk&gl=us
Also, when the deed is turned over, WE Energies will be able to run a power line into the property so the tire recycling plant can begin full operations, said Bousley.
For more details, see Thursday's Daily News.
http://www.florenceminingnews.com/newsread.asp?ID=945
ReplyDeleteCity poised to get mill property; tire recycling expected to begin soon
Hank Murphy
The launch date for American Tire & Recycling at the Niagara Mill drew closer Tuesday night after the Niagara City Council OK’d an agreement that will convey to the city 47 acres of NewPage Corp. property, which includes the mill’s pressurized ground wood facility and wood room.
The deal is expected to be finalized within five working days. American Tire & Recycling, which already has tires at the site, can begin limited recycling operations as soon as its lease with the city of Niagara is signed. That could be as early as Dec. 8 or 9. After a new electrical power line is brought into to the property, full-scale shredding can begin, possibly in two to three weeks, according to Roger Allen of We Energies.
American Tire & Recycling is expected to begin operations in Niagara with 12 newly hired employees. As many as 30 to 60 employees ultimately could work there after the plant ramps up production.
In June, Marinette County agreed to lend American Tire & Recycling $200,000 from its revolving loan fund to get the recycling operation in Niagara off the ground. Under terms of the city’s lease agreement with the company, American Tire & Recycling will pay $44,280 per year to Marinette County Industrial Development Corp. for repayment of the loan.
http://online.wsj.com/article/SB954202228556721802.html
ReplyDeleteFinally, a fourth league is called the Indoor Football League, which has 21 teams but doesn't follow the franchising model. League owner Keary Ecklund owns 20 of the teams, and he likes the continuity that affords him.
His control over all those indoor football teams allows Mr. Ecklund to share his best stage prop. It is a large castle -- which players run through during pregame introductions -- that he says he purchased from the heavy metal group AC/DC.
"The expansion that we have for this next year, we're going to expand to somewhere between 20 and 24
ReplyDeleteteams. Next week, we're announcing another 3 teams. But we will not announce a team unless we have
a signed arena deal. In this business, that seems like that is quite the opposite. Leagues are announcing
here, there, everywhere, and they don't have a signed arena deal. We don't follow that pattern. We will
announce a team when the deal is set and we will officially be there. That's when we announce a team."
said Keary Ecklund about his football league. The league doesn't exist any longer.
Do we trust our money in the hands of a man that made similar promises but failed to deliver?
http://www.sedgwickcounty.org/countyclerk/1999/Regular/reg06-02.pdf
Again, has anyone seen a business plan???????
ReplyDeleteI would love to see the business plan. Not much is done these days without one. I hope our council has studied it. Maybe it is written in the same ink on the same paper as the 10 year plan? (imaginary)
ReplyDeletePost the business plan online since taxpayers are funding the lease, then we should be able to review this investment.
ReplyDeleteSounds fair to me.
Our government is not about fairness.
ReplyDeleteSDJ
Anon 10:01, how many times do you have to be told? Tax breaks are not OUT-OF-POCKET expenditures!!!!! Taking money out of the city's bank account to pay a company's operating expenses is NOT the same as giving them a tax break incentive. Yes, they are both spending incentives. But, digging into the city's pocket to spend money on a company's operating expenses (money that could and should be used elsewhere) is not what tax dollars are for.
ReplyDeleteAssume a company wants to come to Racine but needs $100,000.00 to establish itself. It asks the city to absorb 50% of that cost over 5 years. If the city says no, the company does not open and goes and finds another location. The city loses because there is no future tax income and no jobs are created.
If the city says yes, then the company opens with loans it secures from banks and investors. The city now has an obligation to provide tax relief to that business of $10,000.00 per year for the next 5 years. So, the business opens, it turns out that they typically owe $15,000. per year in taxes. The city deducts $10K from the first year and receives $5K in tax revenue. Because the city agreed to the tax incentive it is now receiving $5K per year in taxes (which after 5 years will then become the full $15K).
Notice that NO money was taken out of the city's bank account (taxpayer dollars) to pay any of the company's operating expenses. We still have all of the taxpayer's dollars to use for CITY SERVICES (NOT a private company's cost of doing business), plus the city is receiving an additional $5K per year in taxes for 5 years, and then the FULL tax income after that.
To expend $40,000.00 in taxpayer dollars for 80 low-income jobs is rediculous. It might be worth it if a much larger firm wanted to come here and create several hundred jobs at family sustaining wages (say $12 to $18 per hour). Now that would be a real shot in the arm for Racine. But, such a large out-of-pocket expenditure for so few low-income jobs is really a waste. It makes about as much sense and shoving 55 gallon recycle bins down the throats of property owners who don't want them.
Graham- Except this is not a loan. The city is paying for rent for American Tire. Every month Racine will have to write a check and send it to American Tire's landlord. This is a grant and American Tire does not have to pay it back.
ReplyDeleteAnon 9:55, I never said it was a loan. You're right, it's out-of-pocket taxpayer dollars spent on a company's operating expenses that is never to be paid back to the city. It's a bail-in. The headline of this article refers to it as "unique" way to pay a company to bring jobs here. I call it a very dangerous precedent that's being set.
ReplyDeleteAlso, watch to see how badly mismanaged this will be under DICKert's and the city council's supervision. Let's also be vigilant about how much more this company is going to try and wring out of the taxpayers and city hall, and whether or not they actually hire Racine residents and how many jobs they REALLY provide. I'll bet the total number for 2 shifts and drivers is going to be more near 30 than 88.
This is an out of pocket expense, it just depends on what time period you're talking about.
ReplyDeleteThe tax rate is what it is for a reason, and any subtraction from it is spending. If costs for services, etc go up for the city then the rest of us lowly non-tax incentivized people foot the bill.
That might be well and good, but let's not pretend it isn't spending. Call it a lease, call it a tax cut, call it a grant, call it whatever you want. Money is being spent that would otherwise come into the government to cover costs of running the city.
It might be worth it, it might not. Each of these has to be judged on an individual basis.
If you're willing to give them $40k in tax incentives, then why not $40k in lease payments? The money is spent one way or the other no matter what you call it or when you choose to count it as out of pocket expense (now or later).
Who is the landlord ? connected to someone in city hall ?? Kick back for election help ??
ReplyDeleteAnon 11:51, please read my post of 11:14 AM and try to use the pathetic education you received in the RUSD to try and understand what I explained. In fact, try to read is slowly, then if you can't understand it as it is laid out, you probably aren't worth explaining it to AGAIN.
ReplyDeleteGraham,
ReplyDeleteDid you used to work for Enron or something? All you're doing is smoke and mirrors to cover up the same net result.....spending $40k on this company for jobs.
Calling it a tax incentive and stretching out the time frame doesn't change the $40k figure. You are hilarious. Instead of having a problem paying a company to come here, you have a problem with the label of the spending.
The only reason the tax incentive is "not out of pocket" is because you didn't put it in your pocket to begin with. In yourworld, taxes that should be collected (that everyone else pays too) don't count as an expense if you never collected it to begin with. So if Johnson Wax never paid a dime in property tax, you would be cool with that if we gave them an incentive when they first started that never collected the tax to begin with.
In your world, that isn't lost revenue because we never had it to begin with even though all of the costs are still thete and ultimately paid by the only people w/o a tax incentive.....everyday folks.
Bottom line: you either support spending money to attract business or you don't. You can't say government should encourage business and then complain when that's what they do.
Racine, much like the rest of America, better get used to the new paradigm. Mercury Marine negotiated to collect all the revenue from a new half-cent sales tax in Fond du Lac. Details are still sketchy. Janesville has been playing banker with private developers and business start-ups for years by offering forgivable loans (doesn't have to be paid back if employment promises are kept) and transfering TIF funds from one district to another. All legal. Instead of admitting that capitalism is severely broken, we call the reverse flow of tax revenue back to the wealthiest among us, "job creation." When in reality it is extortion.
ReplyDeleteuh, it's $40,000. That's not a lot of money. What the hell are you guys on about?
ReplyDelete