Below is an excerpt from the most recent edition of WisBusiness Tuesday Trends.
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RISING
Early-stage investing: After a series of hiccups this spring, a bill to set up a venture capital fund utilizing $25 million in state dollars is on its way to the governor. Critics say more funding is needed and criticize the industries specified in the bill — especially the lack of bioscience — but the bill still gets large bipartisan margins in both houses. Gov. Scott Walker says the measure will provide a needed economic development tool for the state, and that he hopes success with the initial round of funding will lead to more capital investment in the future. In addition, the Wisconsin Economic Development Corp. reports the state’s Qualified New Business Venture program helped 63 early stage companies directly leverage more than $48.4 million in private investment in 2012, an increase of nine percent from 2011.The 2012 Qualified New Business Venture report showed 44 new companies received QNBV certification, bringing the number of companies currently in the program to 160.
MIXED
Mining: Gogebic Taconite takes its first major step toward creating an iron mine in the Penokee Hills of northern Wisconsin by filing a bulk sampling plan and a pre-application notification with the Department of Natural Resources. That notification means that the company could, one year from now, submit its full application to construct and operate a massive pit mine near Ashland. But while the process is moving along on paper as outlined by Act 1 passed earlier this year, the reality on the ground raises the specter of eco-terrorism and spurs a reaction from majority Republicans in Madison. Protesters came out of the woods near GTAC’s site to protest the mining operation and allegedly vandalized equipment, causing $2,000 of damage to a drill rig. The controversy underscores the level of opposition to the mine among certain activists and locals. A preliminary attempt by legislators to keep protesters out of the mining site is removed from a final budget package negotiated by lawmakers — much to the annoyance of mine proponents — as the governor says he prefers to leave the matter to local law enforcement. Meanwhile, the Ashland County Board overwhelmingly approves ordinances backers say would shield local taxpayers from infrastructure costs related to nearby mining, requiring GTAC to make an initial payment of $100,000 and maintain another $50,000 balance for additional expenses. The company says it will look into whether the measures conflict with the new state law.
FALLING
Milwaukee arena: After a few delays, the head of the Metropolitan Milwaukee Association of Commerce says he now intends to finalize a work group in time to meet in July on the issue of replacing the BMO Harris Bradley Center in downtown Milwaukee. The group — which would also tackle other cultural issues in the city — is considered the opening salvo in the bid to address the arena issue before the center’s lease with the Milwaukee Bucks expires in 2017. One potential avenue to help fund a replacement, however, already appears off the table. Franklyn Gimbel, the head of the Wisconsin Center District — which operates three downtown facilities — tells members of the district’s board that the year has been disappointing financially at the Delta Center, U.S. Cellular Arena and Milwaukee Theatre, and that the district faces increasing debt service and doesn’t have the tax revenue available to help build a new downtown arena.
