Press Release
Overwhelming Support for Economic Development Legislation
Over 80 private business leaders, local government officials and economic development professionals testified or voiced overwhelming support on February 10, 2010 for Senate Bill 399, a bill before the Senate Committee on Economic Development. No one registered or testified in opposition of the bill.
The bill, authored by Senator Pat Kreitlow and co-authored in the Assembly by Representative Donna Seidel, will give Wisconsin a strong economic development tool for job creation and economic activity.
“Senate Bill 399 gives access to capital for both public and private sector projects—access that has been made difficult at best with frozen credit markets and extremely high capital costs,” said WCA Executive Director Mark D. O’Connell. “At a time when our nation and state need it most, government can create a mechanism for the private sector to employ people and create economic activity.”
SB 399 authorizes the creation of a joint powers authority, or commission, which can act at the request of Wisconsin local governments to issue conduit bonds for private entities engaged in public benefit projects through the financing process – or refer them to WHEDA, WHEFA, or the state Department of Commerce – saving individual local governments the financial burden of directly employing the necessary experts.
“Faced with a struggling economy and a declining tax base, this bill is a tool that gives local governments additional financing opportunities to help businesses start and expand in our communities,” said Sheboygan County Administrator Adam Payne, who testified yesterday on the bill in Madison. “SB 399 will allow us to better compete with other states and be more proactive working with the private sector to create jobs.”
Under current law, Wisconsin local governments may issue federally tax-exempt municipal bonds for public purposes and conduit bonds for private projects that serve a public benefit. Additionally, unique financing opportunities have recently been made available for the use of these development tools through $3.8 billion in Midwest Disaster Assistance Bonds and $238 million in Recovery Zone Facility Bonds. However, these financing opportunities have a time limit that requires local governments to act quickly in order to promote needed development in their communities.
“We have people in this state that want to work and businesses that want to hire them,” said Wood County Board Chairman Lance Pliml, who also testified on SB 399. “When this bill passes, we as local governments will have a tool to help grow our economy. It will give private businesses access to low-cost, tax-exempt capital and increase the number of viable public benefit projects and public infrastructure projects.”
Also testifying in support of the bill was Adams County Administrative Coordinator/Director of Finance Barb Petkovsek. “As a nation, we are in the midst of an economic recession and local governments are under increasing pressure to provide more and more services with fewer resources. The passage of SB 399 will provide communities with another economic development tool by expanding access to capital for both public and private sector projects. This bill allows us as government to work hand-in-hand with private businesses to strengthen our communities, employ more people and create economic activity.”
In addition, several Wisconsin businesses testified on projects that could go forward with the passage of SB 399, including:
• Mortenson Family Farms, Adams County: Multimillion-dollar facility expansion.
• Adams-Columbia County Electrical Cooperative: Equipment upgrades and maintenance.
• Chula Vista Resort, Wisconsin Dells: New construction of convention center and hotel property.
• A well-known, existing, high-tech company in Chippewa Falls is considering a multimillion-dollar facility upgrade.
All of these projects have the potential result of increased employment, reduced customer costs and increased revenues for state and local governments.
“This bill has tremendous leadership and support with Senator Kreitlow and Representative Seidel and we are grateful to them for their vision in creating a better Wisconsin,” said O’Connell. “We look forward to continuing our work with them to ensure passage and position Wisconsin in a stronger economic place in the future.”