Surprise loan to help fund 127 Darien jobs

By CATHERINE IDZERDA ( Contact )   Saturday, April 16, 2011
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— Surprise! Your town has been awarded a $1.3 million loan to help create 127 jobs in your community.

You just don’t know it yet.

According to a news release from the Department of Commerce, Birds Eye Foods is planning a $39.4 million expansion supported by a $1.3 million loan from the Community Development Block Grant Economic Development Program administered by the Department of Commerce.

“I’m pleased to announce a partnership with the Town of Darien to help facilitate the expansion of Pinnacle Foods Group LLC,” Gov. Scott Walker said in the release. “My top priority is to continue to invest in our communities and companies and create good-paying jobs for Wisconsin families.”

Elizabeth Rowland, spokeswoman for Pinnacle Foods, said 127 jobs would be created.

The company will use the money to buy equipment, according to the release. The township plans to use it for administration.

Cecil Logterman, town chairman, was surprised to hear about it.

“We knew about their expansion,” Logterman said. “They had to come before the board.”

The expansion will take place in two phases, he said. Phrase one will involve building a lagoon to handle the wastewater used for washing vegetables. The second will add on to the building itself.

“It’s going to be a nice expansion,” Logterman said. “We’ve always tried to be supportive of Birds Eye.”

As for the loan, Logterman said: “We haven’t heard anything. We haven’t gotten a letter or anything.”

The town has just started considering reconstructing some roads to handle the truck traffic and will be searching for assistance for that project.

Birds Eye is part of Pinnacle Foods Group, a distributor of dry and frozen food products. Its brands include Birds Eye vegetables, Duncan Hines baking mixes and frostings, Vlasic pickles, and Log Cabin syrups.

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(33)
Shrek
Apr 19, 2011 at 7:57 p.m.
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Maybe I misread the story, but I don't remember seeing that they were $8.00 per hour.
***
But I guess it would be better not to add any jobs at all. (sarcasm)

bignik
Apr 19, 2011 at 3:22 p.m.
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GO LITTLE SCOTTY DUBYA GO!!!!

127 $8.00 an hour job with no benefits!!! YIPPPEEE!!!!!!!!!!!

mirandadee
Apr 19, 2011 at 8:34 a.m.
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belman--- you are SO correct! they have living corridors on property for them. i bet more then 1/2 their employees now are illegal and this will just make it more.

youkillme
Apr 18, 2011 at 12:12 p.m.
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The Gazette's motto should be "We're here to keep you guessing." I have yet to see a block grant "loan" designed to spur economic development that was a real loan that did not come with low interest, performance or employment stipulations attached. If this was a conventional loan without forgiveness, why sidestep the private loan market? I thought businesses wanted government out of the way.

CallitasIseeit
Apr 18, 2011 at 11:56 a.m.
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"The company will use the money to buy equipment, according to the release. The township plans to use it for administration."

I too find this confusing. If the company gets the $1.3 million loan, what money is the township planning on spending for administration?

As for this being corporate welfare, I disagree. It is a loan, not a hand out. It represents only 3.3% of their investment. Some people will twist anything to show the other side is wrong, facts be damned.

donnaw
Apr 18, 2011 at 10:38 a.m.
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This doesn't make sense. The article says the town plans to use the money for administration, yet Logterman didn't know about the grant so how could they say the town was going to use it for administration. Not good reporting. Did they mean for road expansion?

justmy414
Apr 18, 2011 at 10:12 a.m.
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Two words: corporate welfare.

truth1
Apr 18, 2011 at 8:33 a.m.
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hooters- good catch.

wando
Apr 18, 2011 at 8:10 a.m.
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janesvillean: Touche'. I don't think jodymac/cass/joel_rogers is capable of an intelligent thought. It drives me crazy that the Gazette doesn't remove him/her again. Literally every single one of their posts is riddled with lies and the scary thing is that some people probably believe them!

youkillme
Apr 17, 2011 at 9:23 p.m.
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Public private partnerships are not in the Constitution. Where's the Tea Party when you need them?

belman
Apr 17, 2011 at 6:11 p.m.
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127 un-documented workers! Plan and simple.

Shrek
Apr 17, 2011 at 3:49 p.m.
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So they are investing $39.4 million dollars and people are complaining about a $1.3 million dollar loan?

This is a small investment to employ 127 people and encourage a company to expand. I would think that a number of local contractors will get a large portion of the $39.4 million. This is a great thing for the area.

freedomfighter608
Apr 17, 2011 at 3:21 p.m.
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janesvillean-have you gotten a surprise that you did not expect? Maybe the administration did not expect anything to come this way or for that huge amount. And if the State asked for expecting a no, then it would not have been useful to broadcast that the State or business was asking for the money and being turned down. Now, if it was a Democrat in office, their supporters would be down that the money never came, and the spin would be that he/she tried the best to get the money (double standard).

hooters
Apr 17, 2011 at 12:54 p.m.
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Sure...the township plans to use it for administration as in "give themselves a raise"!
That's the problem with all these grants. Seems the majority of the money goes for those who "administer" services.

MDCCLXXVI
Apr 17, 2011 at 10:28 a.m.
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This is a confusingly worded article. Who is getting money: the company, the town, or both? "The township plans to use it for administration." Huh?

janesvillean
Apr 17, 2011 at 10:11 a.m.
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wando: Local81 is not spreading rumors. He is merely broadcasting the electrical impulses that pass from one brain cell to another inside his head. I'm not sure those qualify as "rumors" which are usually spread from one human being to another.
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donnaw, if this is an example of how the Walker administration will work -- subsidies handed out in secret to major corporations who don't need them -- there's plenty to complain about. Essentially the taxpayers are buying jobs, or paying so this multi-billion-dollar company can get some free labor.
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Sometimes these are worth it, sometimes not, but the way this is done in secret is not encouraging. Wisconsin has a great tradition of open government, which Walker is treating as something of a joke. When deals happen in secret, there is no way for the taxpayers to know who, how, or why. Perhaps this is all on the up-and-up, but if this had proceeded in the sunlight we would not even need to ask these questions.

donnaw
Apr 17, 2011 at 9:56 a.m.
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Talking of livable wages, I worked in a food plant in HR for several years and while entry level workers were not paid much, they had an opportunity to work their way up by on the job training, showing up for work on time, and doing a good job. Those that wanted to make a better life for themselves, the opportunity was there. And for those who wanted to just make enough money to drink it away on the weekends, didn't get very far. So a livable wage is out there if one is willing to pay their "dues". And we were not a union company.

analertcitizen
Apr 17, 2011 at 7:27 a.m.
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Let me preface- Scott Walker has to go has to go for what he he has done to our state... but this is a good thing. It's been done for years and years to help businesses start or expand. I'm happy about this. I just hope the wages are livable.

donnaw
Apr 17, 2011 at 6:29 a.m.
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What a bunch of sour grapes! Can't you guys just be happy there are some new jobs and a company that has been good to Darien and other small towns is going to expand? Also construction jobs, material jobs, etc will be given a boost. Why not be positive for once.

jcd3391
Apr 17, 2011 at 6:27 a.m.
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Get the dang federal government off our backs! No dang federal grants!

bailsub
Apr 17, 2011 at 5:52 a.m.
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i wonder how much money Pinnacle Foods or The Blackstone Group contributed to campaigns ?

wando
Apr 16, 2011 at 10:09 p.m.
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loco81: Harley stopped all Buell production, completely. I would love for you to provide some proof that it was because of the corporate tax rate (Although that might take you awhile because, guess what? The tax rate had nothing to do with Buell closing up shop). Would you PLEASE stop spreading rumors all over the Gazette website?

bailsub
Apr 16, 2011 at 8:55 p.m.
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this is great i am glad our administration can help out Pinnacle Foods, are you aware that they are owned by New York investment firm The Blackstone Group L.P., with a market cap of 8.41 billion dollars, how about they give us some free money for allowing them to do buisness here and take advantage of our workers
do they really really need the money, i would much rather see it go to our schools

mikeykohl
Apr 16, 2011 at 7:37 p.m.
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Are these 127 good jobs processing and washing vegetables? Can the laid off teachers apply for them?

janesvillean
Apr 16, 2011 at 6:11 p.m.
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It seems everything from the Walker administration is a "surprise". This should be an open and transparent process. The lack of oversight suggests the possibility of non-meritocratic approaches to making these grant or loan decisions.

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