Janesville council OKs $225,000 loan to MPC
Photo 
Tom McDonald
Photo
Victor Grassman
JANESVILLE — Calling it "great news" and an "exciting opportunity," Janesville City Council members Monday voted unanimously to approve a development agreement with Miniature Precision Components that should mean 90 new jobs in the next three years.
The company, headquartered in Walworth, now will go ahead with plans to begin producing thermoplastic components in Janesville by the end of March. The company is expanding here, not relocating, so all of the jobs are new.
The company will move into 225,000 square feet of the Helgesen Building, 2929 Venture Drive, in TIF 22. The company has signed a 10-year lease with the building's owner.
The council agreed to grant the company a forgivable $225,000 loan that equals $1 for each square foot rented. The figure had in pervious news accounts been $250,000, but it has since changed.
Councilman Tom McDonald said the expansion to Janesville is an "exciting opportunity for both Janesville and MPC."
McDonald said he favors this sort of development agreement because the loan is based on jobs. Also, the company is moving into an existing building.
"It's great to have 90 jobs over three years," McDonald said. "It's just what we need."
The manufacturing salaries will range from $12.57 to $17.30 an hour, plus benefits, said Vic Grassman, economic development director for the city. The company plans to invest $2.3 million in the facility in the three years.
MPC is a major supplier of parts to the auto industry, Grassman said. The company has several Wisconsin operations and facilities in Southfield, Mich., and in Mexico. It has 1,400 employees, including 900 in Wisconsin.
OTHER BUSINESS
The Janesville City Council on Monday:
-- Committed to borrowing up to $3.15 million to automate garbage collection so staff can order needed equipment.
John Whitcomb, operations director for the city, said the cost of picking up garbage would be about the same even though efficiencies will increase. This is because the city must borrow money to buy the trucks and wheeled carts, and residents must pay that amount back over 10 years.
The community should see an increase of $7,000 in revenue because more people will recycle with the single-stream recycling program, Whitcomb said. That means all recyclables can be placed in the same wheeled container.
The city hopes to begin automated collection Oct. 1.
With automation, remotely controlled 12-foot mechanical arms lift wheeled carts and dump their contents into collection trucks.
Many decisions remain, such as the size of the carts and the fate of residents' existing containers, Whitcomb said. He will return before the council with some options in about two months, he said.
Councilman Tom McDonald wondered whether the city would have to buy replacement carts after the first set is paid for. Whitcomb said the carts are durable, and that vendors offer 10-year warranties.
The city must replace five garbage trucks in 2012, so this is the time to switch to automated collection, Whitcomb said. Four existing vehicles must be retrofitted.
"Automation is certainly the industry trend, primarily due to the increase in collection efficiencies and the reduction of workers' compensation claims," Whitcomb said.
McDonald said $3.15 million is obviously a lot of money, but this is the time to switch.
"We're talking about one of the city's core services," he said.
-- Opted against a February primary to whittle the field of city council candidates from nine to eight. Nine candidates will be on the April 3 ballot vying for four open seats.
Jan 13, 2012 at 12:30 p.m.
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Spectrum Brands reported $3.2 Billion in sales and $142 million in cash on hand in fiscal 2011. Sales grew 24.1 percent over 2010. Their CEO picked up a $13.7 million annual compensation package last year. But they need $4 million of our dollars? After Walker gave them the loot, Spectrum Brands immediately announced plans to hire up to 60 persons to fill positions primarily at its Madison headquarters in key functions including sales, marketing and operations. Really? They won’t hire with $142 million in cash on hand and $3.2 billion in demand? But we’re supposed to believe they hired 35 - 60 because Walker (government) because they now have $146 million on hand? This is a sick joke. And, people talk about the power public unions have?
Obama should call for a full investigation in Solyndra. It's got vulture capitalism written all over it.
Jan 13, 2012 at 6:47 a.m.
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And more news today that Solyndra, the company given $535 million in govt money and filed for bankruptcy shortly after wants to give $500,000 in bonuses to employees. If they have $500,000 why don't they pay some of the money back to the govt (us). By the way, govt officials say it is unlikely any of the $535 million will be paid back, ever!
Jan 13, 2012 at 6:29 a.m.
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youkill...thanks, interesting. I wonder too why can't a successful company pay for their own growth. On the other hand they are trying to grow in the battery business which supposedly is a "green energy" business and I noticed they have 35 jobs they are advertising, all requiring education, so they are well paying jobs. Also their Portage plant was in trouble so maybe some of the funds will support that battery manufacturing plant. But still....4 million?
Jan 12, 2012 at 11:27 a.m.
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http://www.nbc15.com/news/headlines/Spec...
Jan 12, 2012 at 10:59 a.m.
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youkill...still waiting....
Jan 12, 2012 at 5:09 a.m.
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youkill..what is your source for the $4million handout to a company by Walker? Name?
Jan 11, 2012 at 2:57 p.m.
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scooter_76- Have you heard anything concerning present employees transferring to the Janesville facility?
Jan 11, 2012 at 12:51 p.m.
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I have been employeed at MPC for many years. Moving the business to Janesville is a sign of continued growth. They are a Wisconsin based company and they are very involved in the community. Business is growing and they need to expand. Many employees live in Beloit and Janesville. I can't speak for the other facilities, but after the major cut backs of '08 & '09 many employees (current & former) still have a bitter taste in their mouths.
Jan 11, 2012 at 12:10 p.m.
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Saxcat, show us the stock collateral or anything from Walker or from these Janesville deals. Walker gave out $4 million to one company just for the asking. Even Wall Street turned over bundles of devalued mortgages for their hand-out. These "deals" are little more than kickbacks to the connected. Why should they even have to show up with hat in hand at the council meeting when the city administration is their agent. We don't even know the individual's names involved in the request or negotiations from MPC. The corruptocracy is fully assimilated.
Jan 11, 2012 at 10:58 a.m.
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I'm sure that many who supported the presidents billion dollar bailouts, rip on Governor walker for giving money to large corporations.
Jan 11, 2012 at 9:26 a.m.
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I cannot believe this city council voted to borrow up to $3.15 million to "upgrade" to automated trash collection that by their own admission will not save us any money. I'm not voting for any of these idiots ever again and anytime my trash or recycling doesn't get picked up because it wasn't positioned exactly where it needed to be (because, ya know, we don't get SNOW or anything in this town) or because my neighbor parked a car in front of it, I'm going to seriously consider taking it all down and depositing on the steps of city hall. And did I mention if they decide to go with those GIANT carts, it won't fit in my garage, next to my garage, or on my terrace without blocking part of the sidewalk? Yea, this is a GREAT idea!
Jan 11, 2012 at 8:29 a.m.
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janesvillean- Thanks for the info and link.
Jan 11, 2012 at 4:34 a.m.
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Of course the governmnet can create jobs. You can hire people in mass to dig a ditches, and then fill them back in, and finance their pay with $$$'s you create out of thin air. What is your point?
Jan 11, 2012 at 3:11 a.m.
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emac, I meant existing in Rock County. It's about getting private and public economic development efforts on the same page.
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One of the things they've done is a business plan contest (Officer Chad Sullivan won). The other is getting the business park certified shovel-ready. Most recently they held a workforce needs summit for the healthcare industry.
http://www.rockcounty5.com/
[FYI, I don't think that slow, widget-heavy site is great advertising for anything. And the news page is a quarter behind the times.]
Outside of the development corporations and agencies that are members, I don't think they have any FTE staff, and I don't know that they do any sort of direct marketing or outreach to individual companies that might be relocation or expansion candidates. That's the job of the agencies, which do have staff.
Jan 10, 2012 at 9:34 p.m.
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So, does government create jobs or not? I'm getting mixed messages.
Jan 10, 2012 at 8:41 p.m.
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Thank you governor walker! Wisconsin is open for business again.
Jan 10, 2012 at 7:20 p.m.
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janesvillean- Isn't MPC an existing business? I was just wondering what they are actually doing? Haven't heard anything since they started out.
Jan 10, 2012 at 7:14 p.m.
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And I am sure many of those who support this ripped the President for the bailouts!
Jan 10, 2012 at 6:45 p.m.
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Oh D'oh. Everyone is up to 5.0, and I'm still running XP.
Jan 10, 2012 at 6:20 p.m.
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emac, you mean Rock County 5.0, I gather? So far as I know they are pretty much limited to marketing our area's opportunities, and coordinating the actions of boosters, developers, and existing businesses -- not in actually inking deals.
Jan 10, 2012 at 6:09 p.m.
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While it's great for the Janesville area that MPC will be adding jobs; maybe the MPC staff could do a better job of communicating to its Prairie du Chien site employees there future. Do they matter? And why the MAJOR difference in starting pay? The starting wage out there is just $9.50 per hour. And that is just for the employees that are actually hired in full time. MPC uses a shameless tactic of working employees out here until JUST before they become eligible for benefits. They are then (if they are liked), told they may reapply in a month or so and do the 6 months over again. I find this distasteful and even shameful. I experienced this first hand, although I WAS fortunate to find a company that hires its employees and treats them with respect. So good for Janesville! But MPC could do better for its employees here in S.W. Wisconsin that daily put out high quality automotive parts and do so for low pay and in low morale.
Jan 10, 2012 at 5:32 p.m.
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So where is Janesville 4.0 in this project. Aren't they the ones who are being paid to get this kind of project underway?
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