Of all the state’s regions, it’s clear that the recession has hit Northeast Wisconsin hard. It’s a region where one in four workers has traditionally made a living in the manufacturing sector, and some of the counties in the region now have unemployment rates in double digits, above the national average.

But there also are bright spots like the growth in the state’s iconic cheese industry, especially in Sheboygan County. And a total of $32.3 million in federal economic stimulus funds is speeding up a seven-year, $988 million rebuilding of the U.S. 41 Corridor providing much-needed construction jobs and a highway system that will bolster future economic growth. In Green Bay, a $3.5 million loan from the city and a loan from the Wisconsin Housing and Economic Development Authority are slated to allow Vetter Denk Architects of Milwaukee to close on the financing this month for a $10.5 million redevelopment of a former Younker’s Department Store site on the east bank of the Fox River. The project will include the WaterMark residential and commercial project as well as the new Children’s Museum of Green Bay, Hagemeister Park Restaurant and a two-level parking garage.

Say cheese

Three cheese companies, Sargento Foods, Masters Gallery Foods and Sartori Foods, all based in Plymouth, are experiencing robust growth, have completed plant expansions and are in the process of adding a total of several hundred jobs. Sargento, the nation’s second largest cheese company, is projected to have sales of more than $1 billion this year, up from $600 million in 2006, according to Mark Rhyan, executive vice president and chief operating officer. “We’re very excited about that,” he says. Expansions of its plants in Plymouth, Kiel and Hilbert will allow Sargento to add nearly 500 jobs over the next four to five years.

Masters Gallery Foods, a leading supplier of cheese-related products to many of the nation’s grocery chains, has had double-digit growth to more than $500 million in sales. An $8-million plant expansion has greatly increased its cold storage capacity and the company’s workforce has expanded employment 30 percent to about 300 employees, says Jeff Giffin, Masters Gallery president and CEO.

Sartori, which has grown by producing award-winning artisan and specialty cheeses for three generations, opened a new 100,000-square-foot packaging, preparation and distribution plant this winter.

The story of the rebound of Wisconsin’s cheese industry began about 2001, according to John Umhoefer, executive director of the Wisconsin Cheese Makers Association. The industry was faced with stiff competition from California. The preceding decades had been characterized by plant closures and a lack of new investment in plant facilities.

“The return of Wisconsin’s cheese industry started with 1,000 decisions on 1,000 dairy farms to not sell out, to not give up and to add cows and barns,” Umhoefer adds. “Two billion pounds of new milk was added in the state between 2005 and 2007.”

“The milk supply in Wisconsin has had a fairly healthy increase after years of stagnation and decline,” agrees Giffin of Masters Gallery.

At Sartori, consumer interest in higher-end cheeses has made an impact.

“The trend toward specialty and artisan cheeses helps business [at Sartori],” says Brad Nicholson, Sartori’s vice president of organizational development.

Sartori’s SarVecchio Parmesan was voted the best cheese in the United States this spring. It’s a product of the skill and craftsmanship of the cheesemakers and the consistent high quality of the milk from nearby Wisconsin farms, notes Nicholson.

“People who try it say they’re addicted to it,” he says.

Sargento continues to expand its lines of shredded, sliced, cubed and snack cheeses and other value-added innovations. Masters Gallery, which Umhoefer described as a big behind-the-scenes player in wholesale cheese, saw continued growth in its private-label cheese offerings.

“Folks continue to have to eat,” says Rhyan. “In a down economy, people are trading off a restaurant experience for more meals at home.” Umhoefer concurs, adding that value-added products and artisan cheeses are still selling well and “add a little bit of luxury” for those hosting parties.

In all, the cheese and dairy industry is a $20.5 billion component of the state’s economy, Umhoefer says. He foresees Wisconsin’s traditional role as America’s Dairyland continuing in the coming years.

Corridor construction

The U.S. 41 Corridor is the “Main Street of Northeast Wisconsin,” and the expansion and improvement of 31 miles of the highway in Winnebago and Brown counties will be one of the largest highway projects in the state’s history. Four projects in Winnebago County were selected to be advanced with economic stimulus funds because they met the federal guidelines of being “shovel ready,” according to Kris Schuller of the Wisconsin Department of Transportation. The projects include a new, eight-lane, lighted causeway over Lake Butte des Morts, overpasses at Witzel Avenue and Fountain Avenue-Snell Road and roundabouts at Highway 45 and Snell Road.
The total project, which could allow the highway to be designated as an interstate highway, will include rebuilding 14 miles in Winnebago County and 17 in Brown County. The work will include:

• Road expansion from four lanes to six to 10 to accommodate traffic volume.

• Forty-four roundabouts, which are safe intersection alternatives that reduce delays and allow traffic to keep moving.

• Sixteen improved interchanges with 13 complete rebuilds.

“The US 41 Corridor is vitally important to Northeast Wisconsin,” Schuller says. “The existing highway is extremely old and overworked.” He adds that much of it was built between the 1950s and 1974 to accommodate rural highway volumes. The U.S. 41 Corridor connects the Fox Valley with Southeast Wisconsin, the state’s two largest regional economies representing 56 percent of the state population, 57 percent of its manufacturing facilities and 52 percent of its retail and wholesale businesses.

“Bringing it up to standard best serves business and industry,” says John Casper, president and CEO of the Oshkosh Chamber of Commerce. “Traffic (to support the expansion) is already there in terms of volume. The need was recognized 20 years ago. It was one of the first things I heard from business groups.”

Jerry Murphy, executive director of NEW North, adds that the US 41 Corridor project is important for the hundreds of construction jobs it will bring to the region over the next seven years. It also provides selling points for economic development, particularly if the highway receives interstate designation. Finally, it’s also important for bringing people to the area because preliminary plans for possible high-speed passenger rail service in the state do not include the Fox Valley and Northeast Wisconsin.

New development

John Vetter of the Milwaukee architecture and development firm of Vetter Denk Inc. calls the financing of his project on the Fox River in Green Bay “amazing.”

“In today’s economic climate it’s not really feasible to finance such a project conventionally,” he adds. “This is a great example for other municipalities on how you can finance projects in tough econ-omic times.”
Green Bay Mayor Jim Schmitt says, “We don’t have a history of that [city loans for development]. But in a recession you don’t want to stop everything.”

The WaterMark project is a redevelopment of a former Younker’s warehouse that will include retail, office and condo space. New construction on the site will include the Children’s Museum of Green Bay, the Hagemeister Park Restaurant, named for the first field on which the Packers played, and a parking deck.

Vetter bills WaterMark as the “gateway to the CityDeck,” the $12-million river walk along the Fox River now under construction between East Walnut and Main streets. The first phase of this river walk project, which includes a pedestrian walkway, benches and a bike trail, will be completed this October, according to Mayor Schmitt. Phase two will include boat landings and boat slips and phase three will include stage areas for entertainment.

Vetter has been a prime mover in converting a downtown area that five years ago was characterized by closed factories, parking lots and shuttered commercial space into an increasingly vibrant urban residential, commercial and office district. Using conventional financing, his company completed Riverfront Lofts, a 26-unit condominium development in which all but two units have been sold, he says.

Three business improvement districts have played roles in downtown development. Downtown Green Bay Inc., in the center of downtown, focuses on financial, insurance, government, services and entertainment. Olde Main Street Inc., on the east side of downtown, emphasizes arts, entertainment and services. Across the Fox River, On Broadway Inc., centered on Broadway Ave., specializes in boutique retail, eating establishments, arts and services.

Jeff Mirkes, executive director of Downtown Green Bay Inc. and Olde Main Street Inc., says a survey found a 95-percent occupancy rate for office space east of the Fox River. His assistant, Molly Vandervest, says completion of the Children’s Museum in 2010, planned to be one of the premier children’s facilities in the Midwest, combined with the nearby Neville Museum and a projected art museum will bolster the downtown’s image as a prime cultural and arts district.

West of the Fox River, On Broadway Inc. was one of five Main Street Programs in the country to win the prestigious 2009 Great American Main Street Award, recognizing successes in economic revitalization and historic preservation. Its Larsen Green redevelopment project for the 21-acre site of the former Larsen Canning Co. includes plans for a mix of residential and retail space that developers hope will be Green Bay’s first LEED neighborhood development, according to Kelly Czypinski, director of On Broadway.

Indeed, even during a recession, the renaissance of Green Bay’s downtown continues, and it bodes well for the future.

By John Hill

You can contact John Hill by e-mail at jhoythill@sbcglobal.net.

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