SC Johnson saves Laurel Clark Fountain; Donation to reopen Downtown attraction this summer, provide long-term fix

SC Johnson announced Wednesday it was donating money to reopen the Laurel Clark Fountain for public use as a splash pad.

The donation, which could exceed $200,000, is expected to reverse a city policy that had closed the fountain to children this year. City officials had shut down the fountain because chlorine was corroding its pipes and damaging a pump. Rather than replace the plumbing, the city stopped chlorinating the water. This ran afoul of state regulations, and signs were posted threatening anyone who splashed in the fountain with a ticket.

"The residents of Racine – and children in particular – love this fountain," said SC Johnson Chairman and CEO Fisk Johnson. "It's a beautiful, inspiring place for families to gather on a hot summer day so we would like to make sure the fountain is functioning properly and the water is safe."

"The city is fortunate to have a great community partner like SC Johnson step forward to make this generous donation," said Mayor John Dickert. "Funding for the renovation and operation of the fountain would not be possible without their support."

According to media reports,  Fisk Johnson, above, was personally involved in the decision to revive the fountain. The company said it was prepared to take on all costs to bring the fountain up to code, including adding bathrooms and an attendant at the site.

The donation should put to rest persistent rumors that it was Johnson Financial that forced the fountain's closure because they didn't want children splashing near their building. Clearly, the Johnson family supports the fountain.

The family is planning a quick fix to reopen the fountain this summer, and a long-term fix to solve the underlying issues that forced its closure. In the next few weeks SCJ and the city plan to re-chlorinate the water, provide an attendant and bring in portable bathrooms. At the end of the season SCJ plans to overhaul the fountain's plumbing to solve the problem.

"What a tragedy that this fountain is not going to be operating during this summer," Johnson reportedly said. "It's a great fountain for kids and a great memorial to Laurel."

"We talked about it and thought, what a great opportunity to help the city by helping to solve this problem for the kids of the city."

SC Johnson, JohnsonDiversey ordered to recalulate retiree benefits

SC Johnson and JohnsonDiversey retirees won a court ruling against their former employers, forcing the companies to recalculate retirement benefits they paid out. How much this amounts to is yet to be determined.

Read the court ruling here.

The retirees won the ruling in Wisconsin Eastern District Federal Court. The case was filed by Michael J. Thompson and others against the retirement plans for SC Johnson and JohnsonDiversey.

The retirees had asked for two rulings against the companies. They first claimed the retirement plans "backloaded" benefits, which the court dismissed. The second was that SCJ and JohnsonDiversey miscalculated how much it paid out in "lump-sum payments" to the retirees. The federal court agreed with the retirees and ordered the companies to refigure the payments. From the ruling:

The court finds that the unlawful conduct here is the Plans' calculation and payment of lump sum benefits in an amount less than the present value of the participants' accrued benefits at age 65, which generated an alleged forfeiture of benefits to the plaintiffs. A forfeiture of benefits pursuant to an improper calculation cannot occur until the "lump sum" amount is determined and dispersed to the participant.

The two sides have a July 11 deadline to reply to the court. After these filings the court will enter a final order on damages.

SC Johnson accused of racketeering; Ex-employee claims company covered up $5 million in illegal tax credits

SC Johnson knowingly committed international tax fraud and retaliated against an accountant who attempted to bring the fraud to light, according to a lawsuit filed in federal court on Feb. 5.

Michael DeGuelle, a tax accountant fired from SC Johnson, makes the allegations in a 49-page complaint against top SCJ executives and the company itself. The case was filed in Wisconsin Eastern District Court.

Kelly Semrau, SCJ's vice president of global public affairs and communications, said Thursday in a written statement that DeGuelle's claims "have no legal merit." Here's her full statement:

"Mr. DeGuelle’s federal conspiracy and racketeering claims have no legal merit and we will ask the court to dismiss the complaint. This new federal complaint is based on the same allegations Mr. DeGuelle has made -- and the company has denied -- in the company's lawsuit against him in Racine County. We continue to be extraordinarily determined to continue with our defamation, replevin, conversion and breach of contract lawsuits against Mr. DeGuelle in Racine County and look forward to our day in court.

"We don’t believe that any of the claims against the individuals have any merit."

DeGuelle, who managed the company's state taxes, claims SC Johnson illegally took foreign tax credits totaling $5,082,048 between 1998 and 2000, according to the lawsuit. The credits involved SCJ's foreign subsidiaries in Spain, Holland and Canada.

DeGuelle accuses SC Johnson executives with forcing him to destroy paperwork to cover up the illegal tax credits and eventually firing him for attempting to blow the whistle on the credits. At one point, the lawsuit says DeGuelle was inpsired to come forward with the allegations after hearing a speech from SC Johnson CEO Fisk Johnson about "doing the right thing."

The lawsuit explains how DeGuelle, who worked on domestic taxes, got involved with the international taxes. The foreign tax credits required revisions to the company's domestic taxes, which he worked on. But the lawsuit also claims SC Johnson executives encouraged him to secretly locate the incriminating international tax files at night and on weekends, so no one would know he was compiling the information.

The lawsuit also alleges SC Johnson initially received one of the tax credits by mistake, but then filed additional revisions to its taxes to exploit the mistake for further gain.

DeGuelle claims he was fired from his job over his effort to bring the illegal tax credits to light, first to company officials and later to the Department of Labor, which investigates allegations of illegal accounting methods under the Sarbanes-Oxley Act.

After firing DeGuelle, SC Johnson filed a defamation suit against him for taking confidential documents from the company. The case is ongoing before Judge Emily Mueller in Racine County Circuit Court.

The federal lawsuit, filed by attorneys Janet Heins and James Walcheske, lays out a detailed look at the alleged tax violations and DeGuelle's allegations of harassment, and firing, over his efforts to be a "whistleblower" on the alleged illegal activities.

DeGuelle filed the lawsuit against: Kristin Camilli, SCJ's head of human resources, Vice President and Chief Information Officer Mark Eckhardt, Executive Vice President Gayle Kosterman, Donald Pappenfuss, VP of Corporate Tax Robert Randleman, Global Tax Counsel Daniel Wenzel and SC Johnson.

As an interesting legal aside, DeGuelle is suing SC Johnson under the federal RICO Act, which was passed in 1970 as a tool to fight the Mafia. The lawsuit accuses SC Johnson of a conspiracy to silence DeGuelle, which the lawsuit describes as "racketeering."

Read the full lawsuit here.

Earlier stories HERE and HERE.

Racine History: Evolution of SC Johnson's Racine campus

SC Johnson will unveil its $40 million "Project Honor" building on Friday night with an exclusive gala dinner (no, we weren't invited). But in honor of SCJ's newest architectural masterpiece, we have a series of photos documenting the growth of SC Johnson's Racine campus over the past 100 years.

All photos compiled by Racine historian Gerald Karwowski from his collection at the Oak Clearing Farm and Museum. Buy Karwowski's latest book, "Racine: A Postcard History" here.

As a side note, this collection of photos kicks off a year-long project at RacinePost celebrating Racine's 175th birthday. Look for more historical photos and essays in the weeks to come.

Looking at the North east corner of 16th and Howe Street in about 1910 before the buildings were razed to build the New S. C. Johnson & Son administration building. The Victorian house next to the Leon Szczupakiewicz Schlitz Saloon was used as the company's main office from about 1903 to 1910. At left is George Stanton's barbershop.

In 1911,hand-filled cans of wax were hand packed 100 to a hand-made wooden box and hand-trucked to the shipping room where they were loaded into horse drawn drays. The wagons took the load of 100 pound crates to the dock to be shipped by water on the old Chicago-Racine-Milwaukee shipping line.

Advertising billboards and factory buildings which were located at the north east corner of Racine and 16th Streets. At this intersection the sweet smell of wax was so strong that a blind man would know they were near the Johnson Wax factories.

Frank Lloyd Wright chats during a 1930s test ordered by building inspectors to see if the lily pad columns which were a integral part of the Administration Buildings design would hold the weight they were designed for.

The Great Work Room of the Administration Building as it looked in the 1950s.

A rare view during the construction of the Johnson Research tower taken from in front of the Frank Karwowski house at 1537 Franklin Street.

A stunning night view of the S.C.Johnson& Son Research Tower Complex in 1952.

Two children admire the beautiful Johnson world globe. It was the largest of its kind when it was erected at the Racine plant in 1954.

One more aerial view.

Project Honor, SCJ's newest addition to its Racine campus. (See more photos here.)

Carnauba lands in SC Johnson's new Fortaleza Hall

The Carnauba has landed.

A replica of the airplane that launched SC Johnson's fortune is clearly visible inside the new Fortaleza Hall on the company's Racine campus. And it looks pretty impressive.

The glimmering plane hangs from the ceiling of the sleek, cylindrical building near the Frank Lloyd Wright-designed research tower. Sam Johnson and his sons, Fisk and Curt, flew the Carnauba to Brazil in 1998 to retrace the route HF Johnson Jr. - Sam's father - used to discover carnauba wax that became SC Johnson's first major product.

Fortaleza Hall is part of SC Johnson's $40 million "Project Honor," which is a tribute to Sam Johnson. The company hired Lord Norman Foster and his London-based Foster + Partners firm to design the building.

In addition to Fortaleza Hall, which will serve as an educational facility, Project Honor also includes a Community Building for SC Johnson employees. The building will include a dining room, fitness center, bank, company store and concierge service. (See more details about the project here.)

Construction is scheduled to be finished this month.

Now you see it... now you don't.

The plane was gently lowered...

...into the basement Tuesday night.

Revisiting SC Johnson, Uptown and property tax exemptions

Project Honor on the SCJ campus in Racine.

We really don't bash the JT too often, but we can't let a story from Saturday slide. The headline read:

SC Johnson’s new development helping fund district to revitalize Uptown

That's a remarkably upbeat take on SC Johnson's Uptown contribution, which will be about half of what it would have been without a sneaky deal between the company, Gov. Jim Doyle and former Mayor Gary Becker. (Click here for our June 1 story that blew the deal wide open. Click here for a summary of additional stories about the deal.)

The JT's story is based on the Oct. 23 Joint Review Board meeting, which we attended, as well. The board met to create a new tax increment district (TID) for Racine's Uptown (known as TID 16). The TID allows the city to borrow money to make improvements and then pay back the loan by collecting any additional property taxes in district for the next 15 years.

To be clear, the TID gets all additional property taxes in the district. Racine Unified, the county, the state, Gateway and even the city itself do not see a penny of the additional property taxes until at least 2024.

Interestingly, the TID is not limited to Uptown. It extends down 14th Street to to the SC Johnson campus, where the company happens to be constructing a roughly $50 million new building known generally as "Project Honor." (Technically, it's two buildings.)

Here's where things get interesting. SCJ and former Mayor Gary Becker swung a deal that dates back to 2007. SCJ didn't want to pay property taxes on its new building - $50 million is a lot of assessed property - and Becker really wanted to get his Uptown arts district going.

The swap went something like this. SCJ found a tax loophole with the state that allowed education centers next to architecturally significant buildings to be exempt from property taxes. Project Honor, located next to the Frank Lloyd Wright Administration Building and Research Tower, qualified.

Gov. Jim Doyle agreed to sign an executive order exempting a portion of the project - known as Fortaleza Hall - from property taxes. The order also includes the Administration Building and Research Tower, which are valued at $4 million.

Becker agreed to the executive order in exchange for the rest of Project Honor - known as the Community Building - being included in an Uptown TID. (Actually, it's unclear if that was Becker's demand or SCJ wanting to control where its property taxes were spent. The latter seems more likely.) SCJ also agreed to kick in $500,000 over five years for Uptown, as well.

The end result: SCJ is saving at least $200,000 a year - possibly twice that much - on property taxes because of the state tax exemption. (We may never know the actual savings because the state is responsible for assessing the building, but simply won't assess the new building because it's tax exempt.)

The rest of the property taxes from the new buildings on their campus are directed into a district located on the company's door step. SCJ will pay between $160,000 and $200,000 per year in taxes to Uptown for the next 15 years.

The money will be used for:

* $400,000 to renovate buildings owned by the city's Redevelopment Authority. That includes remodeling the facade of 1418 Washington Ave. and putting a new roof on 1511 Washington Ave. The city hopes to sell both buildings to artists or small businesses.

* $50,000 for public arts projects, possibly including another mural in Uptown.

* $75,000 for streetscaping

* $750,000 for marketing Uptown, though that number may be adjusted down, depending on need

From what we can tell, there's nothing wrong with the Uptown TID. The district's historic buildings and unique layout is a potential jewel in Racine and using development tools to revive the district is a reasonable and prudent of city money. (As a side note, the city was set to create the new TID earlier this year, but Becker got arrested the district was put off until the new mayor was put into place.)

It's even hard to argue with SCJ's aggressive tax approach. They're a successful corporation that's really good at managing and saving money. That's the reason it's one of the largest private companies in the world, and we're lucky to have them based in Racine.

But it should at least be acknowledged the company quietly (even secretly) worked with the governor and mayor to save hundreds of thousands of dollars per year at the expense of Racine taxpayers. You can argue the company deserved the tax break for all that it does for the city, but there's no question they received a huge tax break that only went public after the fact.

SCJ is contributing to improving Uptown, which is a potentially valuable project for the city. The company, which is handsomely profiting off the arrangement, just shouldn't receive credit for doing so.

The JT, which chased us on the story, but still reported on it themselves, should have known better than the headline they ran.

SC Johnson launches social media website

There's FaceBook, MySpace and now ... SC Johnson.com.

The Racine-based company has a new website with a strong social media component to it. Here's the company's description:

The revamped site offers consumers information on a variety of topics that are
relevant and important to today's families. The site includes interactive tools
like blogs and Q&A areas, global brand information and coupons and special
offers. Consumers can also get tips on a broad range of topics like organizing
family finances or how to make greener choices in the home or they can share
their own.

Kelly Semrau, Vice President Global Public Affairs and Communication for SC Johnson, said the website will help families acquire and share information.

"With so many parents connecting and building relationships, the revamped site is a way to bring a little bit of our family to yours," Semrau said.

Among the sections on the new site include:

In My Family: A space for families to share their stories and answer questions including, "What was the best advice you ever got from a family member?"

Family Economics: A finance blog that helps families navigate the difficult economy with sections about home care, food and cooking, saving money and getting organized.

Family Matters: A blog written by SC Johnson CEO Fisk Johnson. (Read his first post here.)

Doing Our Part: See what SC Johnson is doing to improve the quality of life around the world from building wind-powered plants in Holland to fighting dengue fever in Indonesia.

Doing Your Part: Tips to help families make little changes in their homes and communities that amount to a big difference.

Coupons: Find coupons and other money-saving offers for SC Johnson products. (Right now they're offering a $5 rebate if you send in proof of purchase of three SCJ products.)

Home Matters Q&A: Advice from SC Johnson experts about home cleaning, storage, air care, pest control and more.

SC Johnson cancels profit-sharing

SC Johnson canceled its June and December profit-sharing bonuses for employees. The announcement amounts to significant pay cuts for employees, who have received the twice-yearly bonuses for decades.

SC Johnson started its profit-sharing program in 1917. Fortune magazine reported in 2006 that profit-sharing added 19 percent to employees' salaries at all levels of the company. (One story that may be more local legend than fact is that car dealerships stayed open late on SCJ's profit-sharing days because employees would show up and pay cash for new cars.) It's unclear if SCJ has ever canceled profit sharing. The company did famously start its pension program in the teeth of the Great Depression.

The news was not necessarily a surprise for SCJ employees. Company executives had previously warned employees that the economy threatened profit-sharing this year.

Here's a statement from SC Johnson Spokesperson Jennifer Taylor about the company's financial health:

As a privately held company, we don't typically discuss financial matters. We are fortunate however that during this difficult and unpredictable economic time, unlike many companies, SC Johnson remains financially healthy. We continue to invest in the business to remain strong for the long term. In the end, that is what is best for the people of SC Johnson and for our community.

In fact, SC Johnson’s profitability and our balance sheet are such that we still have an A- long term debt rating, which is considered very strong. This debt rating information is publicly available so I figured I would provide it to you. Bottom line, SC Johnson remains profitable, and this is a year where we’re investing in our business.

SC Johnson, city emails offer intimate lookat how company secured tax exemption

Foster+Partners rendering of Project Honor's Fortaleza Hall being built on SC Johnson's Racine campus.

SC Johnson used considerable influence, resources and ingenuity to convince former Mayor Gary Becker and Gov. Jim Doyle to approve a property tax exemption for the company's Frank Lloyd Wright buildings and the new Fortaleza Hall, according to company emails obtained by RacinePost.

The collection of emails from 2007 and 2008 provide an intimate look at SC Johnson's top executives orchestrating the deal that one email from an SCJ vice president suggests could save the company $400,000 a year in property taxes. SC Johnson Spokeswoman Kelly Semrau verified that the emails were authentic, but said some of the emails provided to RacinePost were taken out of context.

We've reviewed the emails and and are reprinting select quotes from them as they relate to Becker's deal with the company to trade the property tax exemption for money for the Uptown arts district.

The emails show SC Johnson sought the exemption to limit the amount of taxes it's required to pay on the new building under construction on the company's Racine campus. They also show a close tie between Becker's plans for Uptown and a property tax exemption, and SCJ's ability to successfully lobby the governor for the exemption.

All told, it was a remarkable effort by SC Johnson to minimize the company's taxes, and a questionable decision by Becker to support the exemption -- which ultimately will cost the city, county and RUSD a fortune -- without making it public.

For its part, Semrau said SC Johnson was upfront with Becker about its intention to seek the property tax exemption for its Wright buildings and Project Honor. State law allows the governor to issue executive orders to exempt architecturally significant buildings from property taxes. It also allows educational tourist centers adjacent to the historic buildings to be tax exempt.

SCJ used the law to secure an executive order from Doyle to exempt its Administration Building and Research Tower, and the new Fortaleza Hall next to the Administration Building, from property taxes.

"There is nothing the company did that was wrong," Semrau said. "It was a legitimate tax situation."

The Tax Exemption

The leaked emails begin in March 2007 with company officials pondering ways to limit property taxes on the new Project Honor, which was looking at a $52 million price tag (see below).

On Wednesday, March 28, 2007, Robert Randleman, vice president-corporate tax counsel, wrote an email to Jane Hutterly, executive vice president of worldwide corporate and environmental affairs, seeking guidance on "the company's desire to save property taxes on the Project Honor building additions."

Randleman wrote:

Alternatively, if we were to reduce the annual tax tax cost but agree to provide the city with a one time contribution to develop Uptown, the overall savings would be significant. Also, there is a significant possibility that once the Fortaleza Hall is completed and the plane is in place, the city could assess personal property tax on the aircraft. This would not be the case if the building received a state exemption.

Hutterly responded on April 9, 2007:

My perspective, Bob, is we should take the tax exemption that is appropriate under the law. I also will have some discomfort if this means we are really pushing the regs; while not adding any new jobs; as it could appear that the "rich (Fisk / family) only get richer" when Racine needs the tax revenue. Under the current scenario, I would assume that that would mean the community building is not tax exempt. That portion could be TIF'ed and we could also supplement that with contributions as needed.

Semrau said the tax exemption was not a requirement for Project Honor. SC Johnson would have built the buildings without the exemption, she said.

But the exemption paid off for the company. While Semrau estimated the exemption would save the company between $190,000 and $240,000 per year, one email suggested the number could be closer to $400,000 per year.

Randleman wrote to Fisk Johnson on Jan. 7, 2008:

Attached is a copy of the Executive Order - to be signed by Governor Dole (sic) ... As a result of this designation, we anticipate that the FLW buildings and Fortaleza Hall will be exempt from real estate tax resulting in an annual savings of approximately $400,000.

Racine Unified

Early on, SC Johnson was sensitive to the Racine Unified School District losing tax revenue, according to emails. SC Johnson's Brian Anderson, program manager for community development, responded to a question from Scott Frey, SCJ's director of corporate services and facilities, about Unified losing tax revenue if the Administration Building and Research Tower are tax exempt.

Anderson wrote on May 17, 2007:

The schools lose $8,234 per year if the FLW buildings are excluded. In the total scheme of things at Unifies (sic) this is not a significant amount of money. I am not sure what the district would do with 10,000 annually that is off the tax rolls. One potential idea for the schools is to provide updated technology to them annually in some amount.

Semrau said SCJ does not have a plan to reimburse Unified for tax revenue lost to the exemption of the FLW buildings.

Project Honor's Fortaleza Hall will serve as an educational tourist center for people visiting SC Johnson. This rendering from Foster+Partners shows Fortaleza Hall with Frank Lloyd Wright's Research Tower in the background.

Educational Tourist Center

SCJ carefully considered how Fortaleza Hall could be included in Doyle's executive order. State law allows an educational tourist center adjoining a historic building to be included in the property tax exemption.

Frey wrote Anderson on May 17, 2007 asking:

Is the tax exemption provision written specifically for FLW or simply any historical landmark? Will we have some requirements around displays, messages, etc in Fortaleza Hall in order to assure we are meeting the intent of the exemption?

Anderson responded: "???" But subsequent emails show the company making changes to Project Honor to secure the tax exemption.

The company did not initially call for the Project Honor buildings to be open to the public, Semrau said. But the tax exemption for Fortaleza Hall required public access, she said. (Note: Semrau contacted RacinePost after this story was published to clarify that if SCJ had not received the tax exemption it would have still built Fortaleza Hall. "But maybe we wouldn't have opened it to the public as one example since keeping buildings open to the public are expensive due to upkeep, security, tour guides, etc.," Semrau wrote in an email.)

SCJ will hire tour guides and allow visitors into the building, which will pay tribute to the story of how HF Johnson flew the Carnauba airplane to Brazil to study the carnauba palm tree that launched the company's fortune. Sam Johnson and his sons retraced the trip in 1998.

Initial plans for Fortaleza Hall did not include educational exhibits for tourists.

Randleman wrote to Kristine Banan, title unknown, on June 1, 2007 (Note: MEA is an internal SCJ acronym that Semrau declined to define):

There is little doubt that the Frank Lloyd Wright buildings are architectural landmarks. I would like to see the MEA emphasize the fact that the adjacent Fortaleza Hall will be used as an educational tourist center. This could be accomplished by changing the fifth sentence in the fifth paragraph to read:

"The Hall will provide an area for employees to informally meet and will be used as an educational tourist center for visitors to the Frank Lloyd Wright administration building, Golden Rondelle and other areas of the SCJ campus."

Randleman wrote on June 6, 2007:

Had a brief conversation with Fisk today - he emphasized the fact that he wants us to proceed with the property tax exemptions for Project Honor. He said that we could include specific displays in the exhibit if it would assist us in proving that the exhibit is indeed an educational tourist center. Next step is for Jane to send the presentation deck to Fisk and she and I will meet with him to answer any questions.

Public Relations

SCJ officials carefully considered the ramifications of the tax exemption becoming public - something that didn't happen until RacinePost broke the story on May 7. (See a summary of our coverage on this story here.) The company was particularly concerned about a planned Journal Times story on Project Honor's groundbreaking. Hutterly didn't want taxes mentioned with the story, which was given as an "exclusive" to the JT.

Hutterly wrote to Randleman on Aug. 29, 2007:

I'm confident we can weather the storm on this and any outcry over the FLW / FH application to the state, and ultimately, the time of all of this would be connected by those who are doing their homework and would want to say that SCJ is trying to avoid taxes and doing their part. That said, it would be helpful to us on the public side if we could stagger the actions on all of this.

She added: "It would be very disappointing to all of us if a side bar article on the new building was "SCJ avoids taxes."

Fisk Johnson wrote Sept. 4, 2007 to Randleman:

"... if we want to delay the action (actual filing that may become public?) in this exemption process to avoid something ending up in the papers at the same time as the ground breaking article I leave that to Jane and you to decide. I assume if it is easy enough to make a short delay of the filing (?) and not incur any financial risk and avoid the risk of this ending up in the paper at the same time... then that sounds like a good thing. I would assume the PR to be manageable either way."

Cost of Project Honor

The actual cost of Project Honor is expected to reach $52 million, according to an email. That far exceeds the $36 million figure SC Johnson had shared in the past. Semrau said the $36 million number is the cost of construction of the building. The $52 million figure is the total cost of the project, including landscaping, furnishings and items other than construction, she said.

Hutterly wrote on Aug. 31, 2007, to Scott Frey and others with the subject line, "Fisk's $$ on PH with the Press":

What number are you comfortable sharing with the press? I'm not comfortable with $52MM. How about the construction number of $36.5MM?

Lobbying for the exemption

SC Johnson lobbied the governor for the tax exemption in the summer of 2007, according to emails.

Randleman wrote to Fisk Johnson on Aug. 31, 2007:

"The Pricewaterhouse Coopers representative that will be meeting with Secretary Berk on behalf of SCJ will also be accompanying the Commerce Secretary and Governor Dole (sic) on an Asian trade mission starting September 10. The PwC representative hopes to be able to take advantage of this time with Ms. Berk and the governor to informally pursue the topics discussed during the September 5 meeting and further advocate SCJ's position. This is a fortunate opportunity."

The company also worked Becker for his support, which was secured in November 2007, according to emails. Chip Brewer, director of worldwide government relations, wrote to Michael DeGuelle, SCJ's former state tax manager, on Nov. 12, 2007:

Mike - I spoke to Gary Becker and he is prepared to support SCJ if he gets a call from the Gov's office.

Brewer also wrote on Nov. 20, 2007:

Good news. I just spoke to the Mayor. He happened to be in the Governor's office today with a group of mayors on other business. Susan pulled him aside and asked him about Project Honor and he gave his strong OK.

Becker actually pushed former assessor Tom Kienbaum to sign a letter of support for the exemption. Anderson wrote on Feb. 13, 2008, to Jane Hutterly, Chip Brewer and Theresie Bode:

The assessor has to send a letter to Mike declaring the property tax exempt which is then forwarded to State to finalize this process. The meeting went very well and the mayor was very supportive and kept asking where does Tom sign. The city assessor is retiring at the end of the month so could put this off for his replacement to do, which the mayor assures me wouldn't happen.

Kienbaum didn't actually sign the letter. His successor Ray Anderson signed it on June 2, 2008. The letter, written to DeGuelle, reads:

We have no objection to you submitting the exemption application and our Office confirms its support for the full and timely implementation of the Executive Order's intentions.

Uptown TID

SC Johnson and the city worked closely together to create the Uptown TID, which will use an estimated $166,000 in property tax revenue from Project Honor's Community Building - it's not exempt from property taxes - to make improvements to the area, according to emails.

Semrau said the city approached SC Johnson about the Uptown TID. Emails among top executives indicate SC Johnson knew about the TID in June 2007 - six months before the idea was made public.

Fisk Johnson wrote an email June 7, 2007 to Hutterly stating:

I would like to push for as low an appraised value on the community building as possible (but I am fine agreeing to putting whatever that tax might end up being, based on that lowest appraised value, into a tif).

Hutterly responded on June 7, 2007:

We will put the final plans in place to do that and further make sure that your planned meeting with the Mayor next month coincides at the right time with our approach to the State for the tax exemption. We will also prepare appropriate key messages for the Becker meeting.

On Jan. 4, 2008, Brewer wrote to Brian Anderson, Jane Hutterly and Kelly Semrau:

Mike reports that this has gone to the Governor's desk for signature, probably within the week. We do not expect any press announcement about this. After this is signed, we can let the Mayor know and he can begin the TIF process. That is a public process and it is my understanding there would be publicity surrounding the TIF and the City's plans for Uptown development. We will need to work with the Mayor on those announcements and any announcements about SCJ contributions.

Brian Anderson wrote to Brewer and DeGuelle on Jan. 10, 2008:

I believe that these are two next steps, first a meeting with the city assessor to have the FLW properties taken off the tax roll and to inform him that Fortaleza Hall is not taxable and second, inform the city that we are ready to create a spot TIF to benefit Uptown.

Becker appeared to carefully consider the value of Project Honor in working out plans for the TIF district and the tax exemption, according to emails obtained from the city of Racine. He wrote to Anderson on Aug. 27, 2008:

Brian, just to follow up on our conversation a few days ago. It is my understand that the assessment of the property will be a minimum of $20,000,000. Please confirm if I have this right.

Anderson replied Sept. 2, 2008:

Gary, we have estimated that the construction cost of the taxable portion will be in the area of $20 million, however the actual assessment is determined by the state. We have not stated any amount as a minimum but we will not challenge the assessment that the state assesses.

$500,000 for Uptown

SC Johnson originally wanted to pay the city $30,000 a year for 10 years for Uptown, according to an email. But a series of emails showed the total increase to $500,000 and shifted from a 10-year payout to a five-year payout. The shorter time frame was crafted to maximize the benefit during Becker's second term in office.

Here's Anderson in the May 17, 2007, email (the "he" refers to Gary Becker):

I would go $30,000-over 10 years that is $300,000, which is what he would receive in 20 years under the current tax bill. This grant can be used for what he would like and doesn't go against the general levy or budget.

SC Johnson Chairman and CEO Fisk Johnson wrote June 7, 2007 to Hutterly:

I wonder if we have a better chance of getting the mayor's support if we agree to $100,000 over 5 years versus $50,000 over ten years (since it will be more impactful to his term in office). I leave that to you to decide.

SCJ has yet to make its first payment on the five-year, $500,000 plan, according to city emails. That fact seemed to concern Racine Development Director Brian O'Connell in an email he wrote to Brian Anderson on April 16:

The flyer for the next speaker at the Rondelle came in an SCJ envelope. I thought it might be the check for the Uptown grant. But it wasn't. Everything still OK with that?

Anderson replied April 17:

Everything is OK, but some here want to meet with you and the new mayor after the election to make sure everyone is still on the same page. It is harder with some things here than at City Hall. The money is still committed but probably won't get to you until end of June, first of July. Sorry that this has to be so complicated.

SC Johnson reviewed the TIF budget and raised questions about some of the items planned for Uptown. In an email to O'Connell on Nov. 13, 2008, Anderson asked to see marketing materials planned for the TID and raised questions about the city's budget for the district. Anderson wrote to O'Connell:

Not sure why $50,000 would be needed for the Island at 14th as it already exists and it would seem that to put plantings into the island would not cost $50,000, but maybe I am missing something.

O'Connell replied on March 2, 2009:

The Uptown Association has discussed having an "identity feature" (fountain? planter/garden?) at the island. I like the idea but it is very vague at the moment.

The marketing item is for targeted marketing of the Uptown buildings to "artists." Advertising in specialized publications is one use. This is an item that could benefit from your insights and the insights of any SCJ marketing wizards.

Summary of SC Johnson tax-exempt stories

We've written a few thousand words about SC Johnson's Administration Building, Research Tower and roughly half of its new $39 million Project Honor going tax-exempt thanks to an executive order from Gov. Jim Doyle and a deal with former Mayor Gary Becker.

Here's a timeline of our stories:

• First, we reported SC Johnson's Frank Lloyd Wright-designed Administration Building and Research Tower were exempt from property taxes. That turns out to be about $40,000 per year.
• Then, we learned that Becker and SC Johnson made a deal. SCJ gets the tax-exempt status and Becker gets $500,000 over five years for Uptown. (We filed a records request with the city to gain documents surrounding this deal, but are still waiting to hear back from the city attorney's office.)
• SC Johnson responded to our story noting it was still expected to contribute $166,942 in property taxes from the new Project Honor to the city's Uptown tax incremental district. The money will be used to rebuild streets and buildings.
• We then reviewed SCJ's Project Honor building permit and found the project was expected to cost $39 million to build. The company then estimated it expected to save between $150,000 and $200,000 in property taxes for Fortaleza Hall, the tax-exempt portion of Project Honor that will honor the late Sam Johnson.

That brings us up to today (when WTMJ's Charlie Sykes credited us with a "flagrant act of journalism"). Neither Mayor Tom Friedel nor Mayor-elect John Dickert returned our calls on this situation. It's not surprising. Little can be done to reverse the governor's executive order, and maybe nothing should be done. SCJ is a pillar to Racine's economy and a great local employer.

Our concern with these stories was Becker's backroom dealings. Decisions like this should go before the Common Council and get a public airing before they're finalized. No doubt SCJ and Becker could have made a strong case for approving the tax-exempt properties and moving forward with Uptown. But the fact that they never made that case suggests they knew they some would raise objections - and possibly nix the deal.

I do believe SCJ is getting unfairly tarnished in the comments. It's a good, smart company that makes good, shrewd business decisions. They found a state law that applied to their property and they used it to save money. It's those decisions that will, hopefully, keep local residents employed for years to come.

Becker should be taking heat here, but the former mayor's reputation is so in tatters that a questionable tax deal seems hardly worth mentioning. Let's hope Mayor Dickert and our new cast of city leaders know enough to conduct these deals in the open, if only to minimize the suspicion.

Tax-exempt deal will save SC Johnson at least $190,000 per year

The cover page of the 'Project Honor' plans SCJ filed with the city.

Former Mayor Gary Becker traded away at least $190,000 a year in local property tax payments for money to pay for his vision of an arts district in Uptown.

The city issued SC Johnson a $39 million building permit on May 12, 2008, to build the 60,345-square-foot "Project Honor" on its Racine campus. The project is made up of two buildings: Fortaleza Hall, designed to honor Sam Johnson, and the Community Building, which will include a cafeteria, company store and other employee amenities.

Under an executive order Gov. Jim Doyle signed Jan. 10, 2008, Fortaleza Hall will be exempt from property taxes as an educational and tourist center. The same goes for SCJ's Administration Building and Research Tower, which paid about $40,000 in property taxes last year. (To get an idea of how rare the executive order was, Doyle's order was the only executive order signed by a Wisconsin governor between January 1965 and Dec. 12, 2008 to involve Racine. It was also only the second time a governor made a building tax-exempt for architectural significance.)

But the new Community Building will not be exempt from taxes. Instead, it will be included in the Uptown Tax Incremental District, and property taxes collected on the new building will be used to pay for property and street improvements in the Uptown area. (Read our initial story on Becker's deal with SCJ here.)

So how much money are we talking about?

SCJ's building permit was for $39 million for Fortaleza Hall and the Community Building combined. The Community Building is listed at 44,000 square feet, according to company press release. Fortaleza Hall is about 16,000 square feet.

Dividing the $39 million project strictly by square feet would result in a 75-25 percent split between the two new buildings. The Community Building would then cost about $29.25 million and Fortaleza Hall would come in just under $10 million.

But SCJ's numbers suggest the buildings are closer to equal in value. The company's response to an earlier story said they would pay $166,924 in incremental tax to the Uptown TID district for the Community Building. Assuming that's per year (it's not clear from the statement), and assuming a property tax rate of $21.81 per $1,000 of assessed property value (last year's amount), it appears SCJ is estimating the Community Building's assessed value at closer to $7.7 million.

Our own reporting suggests Fortaleza Hall may be the more expensive, and valuable, of the two new buildings. SCJ doesn't have to break down how much they're spending on the tribute to Sam Johnson, but the company is reportedly sparing no expense. A world-class architect, curved Italian class and the hanging display of the Carnaúba aircraft (the one that launched SCJ's fortune) are all included. (Click here for SC Johnson's response to our initial stories revealing that the Administration Building and Research Tower are now tax exempt.)

SC Johnson Spokeswoman Kelly Semrau said the company estimates Fortaleza Hall, once complete, will be tax exempt from $150,000 and $200,000 in property taxes. An assessment will be conducted after the project is completed, she said. (That runs counter to one of our sources, who said the building won't be assessed because it's already tax exempt.)

Based on current tax rates, that would place Fortaleza Hall's estimated assessment at between $6.8 million and $9 million.

Semrau noted the construction amount and the assessed amount are not the same. She added SCJ officials reduced the square footage of Fortaleza Hall since the company applied for the building permit.

Blueprints for Project Honor taken from the plans SCJ filed with the city. Fortaleza Hall, which will honor Sam Johnson, is on the left. The Community Building, for SCJ employees, is on the right.

So let's put together some pieces.

We've reported in the past (and now have a third source confirming it) that Becker and SCJ made a deal. SCJ would receive the city's support in pursuing tax-exempt status for its Administration Building, Research Tower and Fortaleza Hall, and Becker would receive $500,000 over five years for Uptown. SCJ also agreed to include its new Community Building in the Uptown TID to help pay for street and building improvements in the area.

In other, simpler words, Becker traded away a minimum of $190,000 in annual property tax payments (and probably more) for $500,000 over five years to improve Uptown.

What's incredible about the deal is the disregard Becker showed for other local governments in making the deal. Based on the 2008 tax rate, and assuming $190,000 in annual tax payments:

• Racine Unified lost $59,000 in annual property tax payments.
• Gateway Technical College lost $10,000 in taxes.
• Racine County lost $25,000 in taxes.
• And, the city lost $93,000 in taxes.

We attempted to reach Racine Mayor Tom Friedel and Mayor-elect John Dickert Friday for comment. We'll report their reaction when we get it.

Dave Hazen, Racine Unified's finance director, didn't know specifics about SCJ's tax-exempt properties, but he said the arrangement sounded similar to the tax incremental finance districts local governments setup to attract development. New developments in TIDs pay taxes, but all of the tax money goes to pay off the loans used to build roads, utilities and other infrastructure needed to attract business in the first place. Unified only benefits once the TID's loans are paid off, usually around 15 years after the development is finished.

Case in point, the city created an Uptown TID and will capture all of the property tax from SCJ's new Community Building for the next 14 years. Instead of supporting schools, the county or the city's general fund (ie. police, fire, parks, etc.), the property tax payments will only go toward streets and buildings in Uptown. The result: SCJ is building a $39 million structure, and Racine Unified won't see a dime for 14 years.

Despite being left out, Hazen said it's hard for school officials to oppose TIDs. "It's good for development, it's how the community is going to grow," he said.

He added a key point about TIDs: They never take away tax base from local governments.

The wild card in all of this is whether SC Johnson could have gotten the property tax exemption from the state on its own. If SCJ could have, then Becker swung a deal to at least get something in return.

But two sources with direct knowledge of the negotiations told us Becker and SCJ traded support for the tax exemption for the Uptown money. Maybe SCJ doesn't build Project Honor without the deal, or maybe a great local employer simply deserves the tax break, but it's increasingly clear our former mayor gave away hundreds of thousands of dollars in annual payments to support his vision for Uptown, and he did it without telling the City Council or making the deal public.

This map shows Project Honor's outline, just north of the existing Administration Building.

SCJ: DeGuelle is not a 'whistleblower'

SC Johnson responded to our story this week about a former SCJ employee who claims he was fired for reporting alleged corporate misconduct to the U.S. Department of Labor.

SCJ is suing Michael DeGuelle, the company's former state tax manager, for stealing company materials. DeGuelle says the lawsuit is in response to a "whistleblower" report he sent to the Labor Department.

SCJ Spokeswoman Kelly Semrau said the company did not retaliate against DeGuelle and filed the lawsuit to force DeGuelle to return the materials he took from the company (her full statement is printed below). DeGuelle said in an interview with RacinePost that he doesn't have any SCJ materials.

Here's Semrau's statement:

"We’re very disappointed with the allegations and are sorry that Mr. DeGuelle chose to bring this to the press," SC Johnson Spokeswoman Kelly Semrau wrote.

I can confirm that Mr. DeGuelle is no longer employed by S.C. Johnson & Son, Inc. and that we have filed suit requesting return of SC Johnson materials. We believe, in this circumstance, we needed to take legal action to protect our rights.

SC Johnson adamantly denies that Mr. DeGuelle was a whistle blower and that he was retaliated against. When he complained in fall 2008 that he had been retaliated against, we reviewed his claim and concluded that retaliation had not occurred.

We welcome every opportunity to respond to Mr. DeGuelle in court but will refrain from answering any further questions related to Mr. DeGuelle in the press, pending the ongoing court proceedings. Once again, we are disappointed with the allegations. We look forward to our day in court and intend to vigorously defend ourselves.

SC Johnson's response

SC Johnson responded by email this evening to our stories about the company's Administration Building and Research Tower being tax exempt. Spokeswoman Kelly Semrau clarified some numbers and noted SC Johnson's new buildings will contribute $166,942 to Uptown's TIF district. Here's Semerau's response:

Thanks for contacting us. Governor Doyle did grant a State tax exemption for the Administration Building and the Tower. There is a state law which provides tax exemptions for architecturally significant historic buildings in Wisconsin. The tax exemption is estimated to be $40,000 for the Administration Building and the Tower. However, and very importantly, the new building that we are constructing will provide an estimated $166, 942 in incremental taxes for Racine.

Annually, more than 4,500 visitors from around the world visit our campus and these buildings to tour them and the amount of visitors is expected to grow with our new building. (Please note this number is just the people who take tours and not the people from companies who may call on SCJ for business purposes.) SCJ since the Frank Lloyd Wright buildings were constructed, have painstakingly kept these buildings in pristine condition which is a challenging job. The company spends more than $3.2 million each year for upkeep (new roof, new facades, etc.) This figure does not include maintenance which would be significantly more.

The upkeep on these buildings is done so that the public and our employees can enjoy the beauty and splendor of the Frank Lloyd Wright buildings as well as project a wonderful image of Racine to the world. It’s also important to note that the upkeep is contracted out to local businesses that in turn employ people in our community.

Where there may be confusion which is unfortunate, is that prior to SCJ applying for this state tax exemption, Mayor Becker had notified SCJ about his vision for the redevelopment of Uptown and his desire for a TIF to help fund the redevelopment. The state tax exemption and the city’s Uptown TIF are two separate issues with two separate governmental entities – for example the Mayor doesn't rule on a state tax exemption.

As a matter of fact, the incremental taxes for the new building of $166,942 will be assigned to the Uptown TIF for 14 years. And, Fisk, after hearing about the Mayor’s vision for the redevelopment of Uptown gave a donation of $500,000 from the company towards the Uptown redevelopment effort. This TIF donation is very consistent with our donations in many, many parts of this community.

I hope you can set the record straight.

SC Johnson, Becker traded tax-exempt status for Uptown cash

SC Johnson's response to RacinePost's stories.

So what's the big deal about SC Johnson getting two of its signature buildings taken off the tax rolls?

Commenters have pointed out SCJ is a valuable corporate citizen that provides millions of dollars directly and indirectly into the local economy. A minor tax break for two buildings designed by the great Frank Lloyd Wright doesn't seem like much of an issue.

But there's more to the story.

SC Johnson received the tax-exempt status by swinging a deal with former Mayor Gary Becker. Becker agreed to support SCJ's request to Gov. Jim Doyle, and SCJ agreed to donate $100,000 a year for five years to the city's Uptown program.

The deal was in place by late 2007 and went into affect when Doyle issued an executive order on Jan. 10, 2008 naming SCJ's Administration Building and Research Tower historic landmarks, according to our sources. The executive order, which made the buildings exempt from property taxes, also included the two new buildings being built as part of Project Honor.

City Development Director Brian O'Connell said in an interview Friday that he was involved in part of the agreement. First, SC Johnson officials told the city in 2007 it was pursuing a property-tax exemption from the state for its Wright-designed buildings. State law specifically allows Wright buildings to go tax free with an executive order from the governor.

"It could have been done without city consent," O'Connell said.

The city wrote a letter to the governor saying it would not oppose SCJ's request to make the buildings tax exempt, O'Connell said.

According to a second source, who requested anonymity, Becker supported SC Johnson's request because the company offered the five-year, $500,000 grant for Uptown. By Becker's reasoning, the source said, the deal was OK because SC Johnson was getting less in return than it was giving - for five years. SCJ will save at least $25,000 a year in property taxes (a lot more once Project Honor is complete), but it's paying $100,000 to the city.

Under the deal, the Racine Unified School District, Racine County, Gateway Technical College and the state (who all receive a portion of local property taxes) receive nothing despite losing SCJ's buildings from their tax rolls, as well.

O'Connell said SC Johnson has yet to make its first $100,000 payment to the city. The final details on the five-year grant are being worked out, he said. The first payment will go toward renovating the facade of 1418 Washington Ave., he said.

1418 Washington Ave. is the building on the right

O'Connell said he was not part of any talks between Becker and SC Johnson about the tax-exempt status, and couldn't comment on whether there was an explicit deal to trade the city's support for the governor's executive order for the $500,000 Uptown grant.

But our second source said there was an agreement between Becker and SCJ to swap the tax-exempt status and the Uptown money. Becker felt he had to offer SCJ something in exchange for the money needed to kickstart the Uptown artist program, our source said. So he agreed to support the company's request to the governor.

"He was looking for a quid pro quo on this one because of the money he wanted for Uptown," the source said.

O'Connell said he didn't know if Becker ever considered bringing the city's support of SC Johnson's historic status to the City Council. But the SC Johnson grant was brought before the city's Redevelopment Authority on Oct. 1, 2008. The money can be used to improve public safety, to renovate facades on RDA-owned buildings, to conduct design services, to renovate the residential neighborhood and to market the artist relocation program.

While Becker may not technically have had to bring the deal with SCJ before the council, our source said the deal may not pass the "smell test" for ethical government.

Becker was the type of mayor who got things done and worried about the repercussions later, they said. In this case, he needed seed money for the Uptown project so he made a deal with SCJ.

Under this scenario, SC Johnson actually went out of its way to help the city. The company, which has spent millions maintaining its Wright buildings, likely could have gotten its buildings exempted from property taxes without paying any money to Uptown. Instead, the company engaged the city and worked out an agreement.

But the deal will cost the city, Racine Unified, Racine County and Gateway in the long run. SCJ may pay around $25,000 in taxes on its current buildings, but its new Project Honor buildings will be worth upward of $20 million - millions that are now off the tax rolls forever.

SC Johnson's Administration Building, Research Tower exempt from property taxes

SC Johnson no longer has to pay property taxes on its Administration Building and Research Tower.

Gov. Jim Doyle signed an executive order declaring the buildings designed by Frank Lloyd Wright historic landmarks on Jan. 10, 2008. That was the first step in getting them a tax exemption.

Doyle's order also exempts SC Johnson's "Project Honor" now under construction on the corporation's Racine campus. (See our previous story on the executive order here.) The exemption will save SC Johnson at least $25,000 a year on its property tax bill, plus it won't have to pay taxes on its Project Honor buildings when they are completed.

The company paid $151,731 in property taxes in 2008 for its Racine campus.

SC Johnson received the exemption shortly after Doyle issued an executive order on Jan. 10, 2008, declaring SC Johnson's Administration Building and the 14-story Research Tower "historic landmarks." Construction of the Administration Building started in 1936 and the Research Tower in 1944; they were designated a National Historic Landmark in 1976.

Project Honor, designed by Lord Norman Foster, will house the replica Carnaúba aircraft that Sam Johnson and his sons, Fisk and Curt flew to Brazil in 1998 to retrace the 1935 flight of H.F. Johnson who was searching for a source of wax. The project's two new buildings -- Fortaleza Hall and the Community Building -- will serve as a tourist and educational center. They total 65,000 square-feet in new construction.

Under a 1997 state law, the executive order makes the historic buildings and Project Honor eligible for a property tax exemption.

The main entrance of the Administration Building

City Assessment

SC Johnson used Doyle's executive order to apply for a property tax exemption from the city, according to Ray Anderson, the interim city assessor. "The tax exemption request came through pretty fast," he said -- just three days after Doyle's executive order.

The city collects taxes from the properties, but doesn't assess the value of the Administration Building or Research Tower, Anderson said. Both are considered manufacturing property (although nothing is manufactured there), and such buildings are assessed by the Wisconsin Department of Revenue, "because manufacturing property is unique and they can do it on a uniform basis," Anderson said.

City tax records show the parcel of land that includes the Research Tower and the Administration Building was assessed at $1.615 million in 2008. The land, which is not exempt, was valued at $399,800. Improvements on the land were valued at $1,215,600. The parcel's total tax bill was $35,196.82 plus a $6,354.73 special charge.

To create the exemption, SC Johnson split one of its parcels into two pieces, with one piece including the Administration Building, Research Tower and Project Honor.

Other buildings on the Howe Street property, including the former St. Mary's Hospital, are not exempt from property taxes.

Project Honor, under construction today

State Assessment

SC Johnson may still have to pay some taxes on its Research Tower, Administration Building and Project Honor, Anderson said. The land the buildings sit on is still taxable, he said.

But how much the land is worth is still to be determined by the Department of Revenue, which has yet to report that amount to the city, Anderson said. The Department of Revenue didn't immediately return our calls for this story.

SC Johnson just missed out on its property tax exemption in 2008. Doyle issued his order Jan. 10, 2008, and the the company applied for the exemption on Jan. 13, 2008 -- barely two weeks after the Jan. 1 date the state uses for "setting" the value of property for tax purposes.

Research Tower is vacant, because it's not up to building codes.

Intrigue over Doyle executive order benefitting SC Johnson

An interesting story is brewing (or steeping, if you prefer tea) around this executive order Gov. Jim Doyle issued on Jan. 10, 2008. The order seems innocuous enough. It declares SC Johnson's Administration Building and Research Tower, both in Racine, historic landmarks.

But the award may come with more than a plaque. This state law suggests the designation could remove the Frank Lloyd Wright buildings from the property tax rolls. We offer that suggestion with a caveat: We're not property lawyers and we weren't able to track down the "manual" referenced in the state law.

But there's a lot of chatter about the executive order and possible benefits to SC Johnson. The JT is reportedly working on follow-up story tied to this story by Bridget Thoreson. SCJ is suing former employee Michael DeGuelle over confidential documents DeGuelle allegedly took from the company.

No one is alleging any impropriety by SCJ, but the situation has a lot of people talking.

SC Johnson to preserve historic fire station

The former First Station No. 1 at 1412 Racine St.

We heard back today from SC Johnson about the historic Fire Station the company bought in December at 1412 Racine St. The company plans to preserve the building. Here's the email from spokeswoman Jennifer Taylor:

SC Johnson did purchase the fire house in July and leased it back to the previous owner. When the lease expires, we plan to preserve the building as we believe it's a community treasure. At this time, we are uncertain of how the building will be used in the future but we do understand its importance and value to the community.

That's great news for city history, and a nice gesture by SC Johnson. The building could fit well with the company's plans to rebuild Uptown in conjunction with the city's Artist Relocation program. Perhaps a gallery one day in the former fire house?

SC Johnson chairman gives $2,300 to McCain and Obama

I took a quick look through the local contributions to the presidential candidates' campaigns this morning. Here's some findings:

* Fisk Johnson, head of SC Johnson, is playing both sides. He gave $2,300 to both McCain and Obama. Fisk's sister, Helen Johnson-Leipold, gave $2,500 to McCain. Her husband, Craig Leipold, also gave $2,500 to McCain.


* Jeff Neubauer gave $2,300 to Obama, and Dorri McWhorter gave $2,000 to the Democratic nominee. Here's the FEC's full list of local Obama donations.

* Victoria Brocksopp gave $1,500 to McCain, and Dorothy Metz gave $1,000. Here's the full list of local McCain donors.

* Obama has outraised McCain $39,449 to $15,231 in the Racine area.