WisBusiness: Fond du Lac firm to build new La Crosse HQ for Logistics Health

By Gregg Hoffmann

LA CROSSE – Construction on a six-story Logistics Health Inc. corporate center will start on this city’s riverfront in July.

Don Weber, chairman and CEO of the company, and Tommy Thompson, who serves as president of the firm, met with community leaders last week to give some updates on the project.

Some had expressed concerns and raised questions that C.D. Smith Construction of Fond du Lac received the general contractor contract. Officials of that firm have been major contributors to past campaigns by Republican candidates, including former Gov. and HHS Secretary Thompson.

Thompson told local media he knew nothing about the contract, which was let before he joined LHI. "This is Don Weber’s building," Thompson insisted. "I can tell you he has since showed me the contracts and that C.D. Smith will do the work for around $2 million less (than other bidders)."

C.D. Smith has said it will make its "best effort" to hire local subcontractors for the $10 million to $12 million project under an agreement between the City of La Crosse and Riverside Center LLC, the developer. The agreement defines local as within a 75-mile radius of La Crosse.

Whenever a nonlocal subcontractor or supplier is hired, the choice will be reviewed to make sure there is an appropriate reason, said Michael L. Krolczyk, project manager for C.D. Smith.

The city engineer is to be included if possible in all bid openings and work with C.D. Smith to provide guidelines for selecting subcontractors and suppliers.

Others have expressed concern that the view looking south from the La Crosse Center ballroom will be partially obstructed by the center.

"We are going to lose some view, but in exchange we’re getting LHI in there," Art Fahey, center director, told the La Crosse Tribune. "It is the price you pay for the growth of the company here. It is not the ideal situation, but we are trading it off for upwards of 500 jobs. We will still have the views west (across the river) and north to Riverside Park."

The city and Riverside Center LLC, developer of the project, agreed to move the building north to allow a view of the river from Jay Street. Last Thursday, the La Crosse Common Council approved a modification of the site plan that will allow the building to go six feet over a previously established line.

Original plans for the building called for five stories, but a sixth story has been added so the width of the building does not encroach on views of the river.

Plans for the center call for a ground floor restaurant, office space and parking facilities. Construction on the LHI headquarters is to begin July 5 and be completed July 1, 2006.

LHI, founded by Weber as National Health Screening in 1987, has grown into a leader in the health systems field. The company works with government and commercial clients in several areas:

  • Managing the health care of Army Reserve and Army National Guard personnel.
  • Providing valuable education and training to a vast network of healthcare providers, preparing them for the diverse situations they might encounter because of terrorism and other threats.
  • Protecting the lab technicians in all of the Centers for Disease Control and Prevention labs from anthrax by ensuring they receive vaccinations.
  • Providing asset visibility, temperature control and distribution of vaccines for government.
  • Coordinating information for clinical studies and focus groups.

With offices in Atlanta, the location of the CDC, and Washington D.C., LHI coordinates the massive health care system of the Department of Defense and other government agencies.

The firm’s growth has been rapid. At the time of an interview with WisBusiness.com this winter, Weber said LHI employed more than 230 people and could reach 500 in the not-too-distant future.

Thompson, who was brought on as president in late winter, has predicted LHI could reach 1,000 employees. He said one of his main roles is to help the company land government contracts.

Some have questioned how much time Thompson can devote to LHI when he also is doing work for some Washington D.C. legal and consulting firms. They also wonder if he won’t run for office again.

When asked about the latter possibility last week, Thompson said he has not ruled out another run for governor or the Senate. He said he would make a decision next March about his future in politics, but was concentrating on LHI and the private sector at this time.