APPLETON - Elected officials are hearing diverse viewpoints on whether and how Appleton should proceed withthe U.S. Venture project and an associated underground city parking ramp that figures tocost $36.4million, nearly $10 million over budget.
On one side are business leaders and nonprofit organizations that work with U.S. Venture. They are encouraging the Common Council to proceed with the development, which would be among the largest in the city's history.
On the other side is a group of concerned taxpayers. They are askingthe city to pull the plug on the project.
Aldermen listened to both camps during the council's public forum earlier this week. More than 20 people spoke on the topic, with a majority of them aligning with U.S. Venture and some wearing "Ramp Up Support" stickers.
Officials must decide whether the city should investabout $48 million to facilitate U.S. Venture's move from Kimberly to downtown Appleton. The total includes$34.8 million for the city's share of the parking ramp (U.S. Venture wouldpay $1.6 million), an $8 million incentive payment for U.S. Venture, $4.6 million to acquire and clear property for use by U.S. Venture, and $400,000 for concrete and stormwater work.
If interest costs are added, the city's investment would exceed $76 million. And that doesn't account for anymoney needed to extend Oneida Street south of Lawrence Street to the parking ramp.
In return, U.S. Venture wouldbuild its new headquarters on top of the parking ramp. The building wouldhave a guaranteed taxable value of $54.5 million and initially wouldhouse 450 to 500 employees.
John Schmidt, president and CEO of U.S. Venture, said the company is planning for significant growth.
"We're building a building that will hold 700, with plans to build to 1,000 after that," Schmidt told the council.
U.S. Venture distributes and markets energy, automotiveand lubricant products. It is the sixth largest privately owned company in Wisconsin, based on sales revenue.
A study released by the city placed the annual economic effect of a company similar in kind and size to U.S. Venture at $770 million. Schmidt said he didn't know if the figure is correct, buthe knows the impact would be significant.
"If we're only 5 percent accurate on that study the city did, that's $38 million a year," he said. "We think it's far more than 5 percent, but yet we don't know the number ourselves."
Supporters said the U.S. Venture project would be a catalyst for other developments in downtown Appleton.
“I can tell you that since U.S. Venture’s announcement, there have been several businesses that have either expressed interest or have decided to relocate downtown solely because of the U.S. Venture decision," Appleton developer Paul Hoffmantold the council."You have no idea the impact that that building and that commitment by U.S. Venture is going to have.”
Hoffman didn’t identify the businesses.
Appleton resident Nathan Litt said the U.S. Venture development would have "a far-reaching, long-lasting impact.”
“U.S. Venture’s presence in downtown is a strong statement, reflecting the type of city we are and who we aspire to be," Litt said. "This is an important point that can’t be overlooked when it comes to attracting and retaining top talent and young professionals that our city desperately needs to remain competitive in today’s global market.”
Others described U.S. Venture as a generous corporate citizen that supports nonprofit organizations in the community.
Mike Thomas, representing a group called Appleton Concerned Taxpayers, said U.S. Venture's philanthropy is not in question, but the city's ability to pay for the project is.
“It’s not the issue of how fine they are and what they do in the community,” Thomas said. “It’s the dollars and the cents."
Financial models show Appleton would need to make advance payments from its general fund to pay for the project because the revenue streamfrom the city's parking utility and tax incremental financing districtswon't be sufficient to cover the public investment.
The commitment to U.S. Venture also could hamper the city's ability to pay for any replacement of its existing parking ramps or the construction of any new ramps.
Appleton resident Deb Blank asked the council to slow down.
“It’s a project that started out palatable, and now it’s really blossomed into something that’s really difficult to swallow,” she said.
No date has been set for the council's vote on the project.
Contact Duke Behnke at 920-993-7176 or dbehnke@gannett.com.Follow him on Twitter at@DukeBehnke.
