City of Janesville to invest in development
JANESVILLE — Janesville City Council members on Monday agreed to spend $22,300 to ramp up economic development efforts and aggressively market the city to domestic and possibly international companies who might locate here.
Vic Grassman, economic development director for the city, urged the council to approve a contract for that amount with Applied Marketing Sciences of Carmel, Ind. The contract also would help the city create a database of businesses it could pursue on its own in the future.
Councilwoman Kathy Voskuil called the contract a proactive business development plan.
The city's economic development needs have changed since General Motors left town, and Janesville can no longer afford to wait for companies to approach it, Grassman said.
Applied Marketing Sciences will work with site selectors hired by companies to find locations in which to expand or relocate, Grassman said. The company will help the city better profile itself to qualified leads.
Often, the city doesn't even know companies are looking for sites, Grassman said. If site locators visit, the city might not know the identity of the interested company.
This new direction is an "opportunity to go out and educate industries about Janesville," Grassman said.
The city also will get feedback on the kinds of information different companies might look for in relocating, Grassman said. It then would develop a database so that it could manage its own relationships in the future.
The city is targeting several industries, including manufacturing and health care products. Councilman Yuri Rashkin suggested the city focus on agricultural industries, as well.
The $22,300 being spent also includes money for a trade show in South America to introduce Janesville to international companies. Cost to send city staff to the trade show could be another $30,000.
Councilman Tom McDonald said the city might have better luck using the money it would spend on a trade show to instead concentrate on developing more relationships with site selectors.
"To be honest, I'm not completely sold on the idea of an international trade show for Janesville," he said. "I think there's going to be plenty of competition for worldwide trade shows. If we've got site selectors right here in the U.S., I think our money is better spent here."
City Manager Eric Levitt said the city looked at South America because it already has some connections through Tigre USA, a Janesville-based company that manufactures and markets plastic pipe fittings.
"All it takes is one company," Levitt said. "If that one company comes it's a long shot—but the $19,000 is paid off right there."
In supporting the contract, Councilwoman Deb Dongarra-Adams noted the city has only Grassman in its economic development office.
The money to hire Applied Marketing Sciences will come from the city's TIF districts. Staff also will seek grants to help fund the contract.
Other business
The Janesville City Council on Monday:
-- Agreed to demolish a home at 203 Linn St. The city bought the foreclosed property from Rock County for $3,954.
-- Agreed to sell property at 407 Lincoln St. for $80,000. The city rehabilitated the home it had bought for $51,000 as part of its blight elimination program. A neighbor from the area thanked the council, noting the city has worked with 32 properties in the Fourth Ward neighborhood.
The council has made a "major difference" in a neighborhood the size of the Fourth Ward when one considers past problems caused by criminals who lived in the blighted homes, resident Burdette Erickson said.
The city's Neighborhood Stabilization Program is not meant to be an instant profit maker, he added. But it will bring profit down the road by returning homes to property tax rolls and raising housing values throughout the neighborhood, he said.
-- Approved a $28,030 tax increment financing agreement with Fab-Masters, 1111 W. Racine St. The company is expanding on the city's south side.
-- Agreed to raise parking fines. Council members said they increased public safety violations—parking in handicapped stalls goes from $40 to $120, for example—to encourage compliance. "This is not for raising funds," Councilman Sam Liebert said. "If anything, I hope revenue drops … (to show) people take it more seriously and (do) not park in a handicapped stall."
-- Sold the historic Hugunin house, 2739 Beloit Ave., for $70,000.
Mar 1, 2012 at 5:02 p.m.
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Being just one grumpy old man, I agree with the other Grumpy_Old_Man.
Mar 1, 2012 at 8:19 a.m.
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Ag doesn't mean just farming. It could meen genetics companies, chemical companies, food processors, agricultural manufacturing and other year round enterprises.
Feb 29, 2012 at 2:46 p.m.
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TTTT, that statement about ag by Rashkin must really have your goat. Promoting ag when Janesville is surrounded by top choice glacial driven soil is a very forward thinking if not common sense thing to do. But it obviously flies in the face of the neanderthal sprawl wealth redistributors in charge of economic development. It's like giving away the diamond to attract people to market the tin clips that hold it in place. Morons.
Feb 29, 2012 at 12:45 p.m.
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We've been lobbied to give away free land and tax dollars to private-for-profit businesses while banks are awash in money and interest rates are at record lows, while we're increasing fines, water rates, garbage and waste water rates, permit fees and instituting a new vehicle tax on the people who can't afford a lobbyist. Ahhh, so refreshing. So this is what economic growth looks like? Thank you Forward Janesville!!
Feb 29, 2012 at 12:28 p.m.
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My daughter is a project manager with USAID, specific to South America. She is bringing a delegation of South American businessmen to Madison in March. The city could save themselves a bundle by simply going to Madison.
Feb 29, 2012 at 12:04 p.m.
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Are we going to change the signs at the edge of the city that say "City of Janesville" to "Janesville Inc." ???
Feb 29, 2012 at 11:03 a.m.
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cost for each employee to fly round trip might run $1500. A weeks lodging another $1000. Food another $750. Miscellaneous another $250. Thats only $3500 per employee. Lets say we send two employees and they get 1 rental car at $1000 for the week. That only adds up to a total of $8000 for the week. Are we planning on sending 8 employees on this boondgogle??
Feb 29, 2012 at 9:48 a.m.
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The idea of spending money for a trade show in South America is lubricious.
"he $22,300 being spent also includes money for a trade show in South America to introduce Janesville to international companies. Cost to send city staff to the trade show could be another $30,000."
So the total is $50,000, they break it into two figures so it doesn't sound so bad.
How about this city council work with the governor of Wisconsin in creating jobs? There have been numerous events promoting our state and trying to bring jobs here, we don't need to send people to South America to find businesses.
I am so glad they saved that money by getting rid of two crossing guards, so they can spend money on silly junk like this.
Feb 29, 2012 at 8:39 a.m.
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I have no problem with any of this except for the cost of sending city council members to South America. Unless ---A. We are sending the whole city council and their families. or B. The trade show is two months long, 30 k seems a little high off the hog livin to me. for that kinda money I could vacation the better part of a year.
Feb 29, 2012 at 7:49 a.m.
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The article is kind of confusing, but I believe the consulting company will represent Janesville at the trade show, and that is included in the 23,000. If city reps wanted to go it could be an additional 30,000, but the article didn't say they are actually going, at least thats how I interpreted it. Later, a $19,000 figure is quoted, again confusing. Anyway, I think the 23k is well spent, don't know about the addional 30k for the trip.
Feb 29, 2012 at 7:37 a.m.
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Let me get this straight. $22,300 to pay a company to do what Vic is already being paid to do. Then possibly $30,000 to send him on vacation to South America while the company does his job? Shame on you council members and shame on the city manager for allowing his staff to even propose something like this!
Feb 29, 2012 at 6:23 a.m.
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Just for kicks I looked at the website for Carmel, Indiana to see what that city looked like, then I looked up Janesville's website. A couple of things struck me. There were people in the pictures from the Indiana town. It looked like a city with life. If the company the city is thinking about hiring for marketing Janesville did the marketing for its own city, hire them. Carmel looks like a great place. Janesville might consider working on a new website.
Feb 29, 2012 at 5:49 a.m.
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Thirty thousand bucks seems a little high for a nice trip south of the border. Does that money include learning how to speak Spanish ? Would it not be better and cheaper to just visit some of the folks who are living here from south of the border and ask them if they know of any companys that might enjoy moving to Janesville where there all ready is a nice workforce who speak the language. Or why not just send more of the Janesville companys down there, that is a novel idea.
Feb 28, 2012 at 11:07 p.m.
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If it's such a 'long shot', then why not buy powerball tickets with the money instead? This whole thing is simply BOLOGNA.
Feb 28, 2012 at 10:38 p.m.
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Too bad we gotta pay for this ridiculous escapade. At least the 14 democratic senators paid for their own southern journey.
Feb 28, 2012 at 10:34 p.m.
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It looks like South America will be getting a business boost from Janesville's heavy spenders - why do we always come out as the losers when the city council decides to spend our money so carelessly?
Feb 28, 2012 at 10 p.m.
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liberals invest in losers
Feb 28, 2012 at 9:40 p.m.
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I wonder why we couldn't find someone in state to handle this.
Feb 28, 2012 at 8:22 p.m.
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More needs to be done in fining those who park in handicapped parking spots too many people without the right to park in them do it!
Feb 28, 2012 at 8:22 p.m.
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More needs to be done in fining those who park in handicapped parking spots too many people without the right to park in them do it!
Feb 28, 2012 at 8:20 p.m.
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Seriously going to spend money to go to a trade show in South America?!?!!? Sounds more like a vacation for city council than it does anything!
Feb 28, 2012 at 7:03 p.m.
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Wow. Just, wow.
Feb 28, 2012 at 6:52 p.m.
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Applied Marketing Sciences? I love to read a good SCIENTIFIC study. I hope that this investment will really pay off with jobs and will not result in an unused text (study) sitting in some city office gathering dust. I question an additional $30,000 being spent to fund some individuals' trip to South America. Shouldn't we also fund some trips to Mongolia, China, Japan and Russia? Some businesses are booming there. Where are our priorities? We can afford this but not a full compliment of crossing guards for our kids? Janesville citizens - "How much is in your wallet?" Perhaps sponsoring a good agricultural trade show would be the best route to take. Couldn't we invite people from other countries to come here for the show? Could Janesville be an agri-business Mecca?
Feb 28, 2012 at 5:50 p.m.
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The more they spend,the more we pay.More taxes,more fees,more fines with little return on our investment.Janesville city council members,look in your rearview mirror.It's the citizens of Janesville and we are coming to vote you out!
Feb 28, 2012 at 4:40 p.m.
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Now if only the schools had slush funds to steal money from to pay for crossing guards.
Feb 28, 2012 at 4:29 p.m.
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What is Mr. Grassman salary & what is his job responsiblity. The city should not be sending staff on a paid vacation to South America for any reason.
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