2009 Annual Report

2009 Officers andExecutive Committee Members

ChairmanThomas V. Ptacin

Klobucar Construction Co., Inc.Vice Chair

Jim FisherThe JBF Group

Secretary/TreasurerJohn Nicholas

Beloit CollegeLargest Financially ContributingLocal Government Jurisdiction

Larry N. ArftCity of Beloit

Business/Education Partnership Committee Co-ChairRick Barder

M & I BankImmediate Past Chair

Tom BarnesABC Supply

Business Development Committee ChairRick Bastian

Blackhawk BankLoan Committee Chair

Ed HansenGateway Community Bank

At Large RepresentativeRandy KirichkowCity of South Beloit

Investment/Recruitment Committee ChairKeith Kruse

Tricor InsuranceDesignated Strategic Planning Committee Member

Joel PatchCommercial Property Group, LLC.

MESSAGE TO INVESTORS

By anyone’s measure, 2009 has been an exceptionally painful for thenation as well as the Stateline Area.

One noted exception would be the food cluster, which GreaterBeloit is fortunate to have in the Stateline Area.

Even though most economic activity hasslowed down, the Greater BeloitEconomic Development Corporation hasnot. The Corporation has remained busywith many projects; and we are pleasedto report that our investor count hasremained stable. The staff has focusedsome new energy on cooperative effortswith the surrounding communities andRock County.

It is our hope that these collaborative efforts will better position theGreater Beloit community as the recession ends and the economyrebounds.

The Corporation currently has seven standing committees, whichare composed of forty-two active members and over fifty activevolunteers. These volunteers have been extremely beneficial ingetting some of our project off the ground, including the Lunch &Learn Program and our Mock Interviews Program. Informationregarding these programs, and others, can be found in the Business/Education Partnership Committee’s report.

The Corporation has been working since January 2008 on ourStrategic Plan, which was adopted in September of this year. Wemeet with our Vision Beloit Partners on a monthly basis to keeptrack of our progress, to keep the implementation of this plan ontrack.

There is so much more going on, that time, nor space, allows me totouch on all of them. I appreciate all the support that I havereceived from the investors of the Greater Beloit EconomicDevelopment Corporation, and hope that support continues for thein-coming chairperson.

It has truly been an honor to serve as the Chair of the Board for theGreater Beloit Economic Development Corporation and theirefforts to help the Stateline area grow and prosper.

2010 PROPOSED BUDGET

2009 YEAR IN REVIEW - STAYING THE COURSE DURING DIFFICULT TIMES

Year 2009, undeniably has been extremely challenging with unemployment peaking at over 18 percent, Alcoa closing, a practically non-existent pipeline ofnew projects, and many of our traditional manufacturers struggling to remain competitive. Nonetheless, not all the news was bad as there were a fewbright spots. Those being: The opening of the Hydroblend Phase I food processing facility in the I-90 Business Park creating 8 new jobs that will grow to38; Frito-Lay, Greater Beloit’s largest private sector employer, will be receiving a $2 million dollar forgivable loan to support a $28.5 million dollarexpansion and modernization project. The project will include the addition of a new Cheetos line and the installation of a state of the art automatedpackaging system. The project will result in the creation of 25 new jobs. The GBEDC has pledged to offer a CDBG funded loan in the amount of$153,000 to support this significant expansion project. The project was announced on September 9th and is expected to be completed next year. Frito-Lay is one of many Greater Beloit food processing/technology companies that have had a banner year despite the deepening recession.

As traditional economic activity was at a lull in 2009, the GBEDC staff, and volunteers, became more creative and entrepreneurial by launching several newStrategic Investment Initiatives and Strategic Collaborations.

The most significant Strategic Collaboration announcement was the unveiling of Rock County 5.0 Initiative in October. Rock County 5.0 is a new five-yearpublic/private initiative designed to foster collaboration, communication, and connections in unprecedented ways. The initiative involves five key strategiesincluding: Business Retention and Expansion, Business Attraction and Investment, Small Business and Entrepreneurship, Real Estate Positioning, andWorkforce Profiling. The effort is being led by an 18 member Advisory Board made up of a diverse group of private sector leaders. The day-to-day dutiesfor implementing the strategies and tactics will be the responsibility of the members of the Rock County Development Alliance of which the GBEDC is apartner. The initiative is being co-chaired by Diane Hendricks (ABC Supply, Beloit) and Mary Willmer-Sheedy (M & I Bank, Janesville) who have set a goalof raising $1 million from the private sector to support the program. More can be learned about this exciting new effort by visitingwww.rockcounty5.com.

Other Strategic Collaborations undertaken in 2009 include:■Launching a formal Business Retention and Expansion Program■Partnering in the BMHS First Impressions Program■Initiating a Child Care Needs Assessment Study■Anaerobic Digester Waste Stream Cost Reduction Project■Lead Generation Pilot Program■Customer Diversification Analysis Pilot Program

In late July, construction began on Gateway Boulevard that will be extended to the Hart Road intersection. It is anticipated that the northern portion willbe completed by the end of this construction season and the southern portion will be completed by mid-year 2010. This new roadway will not only createa new linkage to an additional interstate interchange for the Gateway Business Park, but will create access to new industrial development sites including railserved sites that, in the past, were inaccessible.

In downtown Beloit, the Riverbend/City Hall area has been the focus of a significant redevelopment program that includes: elevation and reconstruction ofa portion of Shirland Avenue, reconstruction of City Hall’s parking lots, reconfiguration of Water Street, construction of a new bike path, and constructionof a new Transit Transfer Facility, which is expected to be completed by next February. Once all construction activity is completed, the Riverbend site willoffer an extremely attractive redevelopment, in-fill housing, or mixed-use development site.

Other major development projects that were completed in 2009 represented the creation of 15 new jobs, a total private investment of over $25 milliondollars, and added 88,013 square feet. These include:

■Beloit Memorial Hospital ER Expansion■Blackhawk Technical College Expansion■Two CVS Pharmacies■Gateway Community Bank■Hydroblend Phase I■Tricor Insurance

Other development projects that are under construction, or have been announced in 2009, will add an additional 75 new jobs, result in the privateinvestment of almost $44 million, and add an additional 72,830 square feet. These projects include:

■Alliance Development Spec Building

Hydroblend, Inc.

Beloit Memorial Hospital ER

Alliance 02

Frito-Lay

Blackhawk Technical CollegeGateway Blvd

■Country Inn and Suites■Frito-Lay Expansion■Hampton Inn

Between completed and announced projects, the region cananticipate the creation of 120 new jobs, the addition of260,843 square feet, and private investment contributionstotaling $74,202,540.

2008 RECAP 2009 RECAPProjects 19 11New Jobs 764 120Total Investment $144,240,000 $74,202,540Square Footage 757,061 260,843

STRATEGIC PLANNING COMMITTEE:This has been an extremely productive year for theStrategic Planning Committee in that the Plan nowincorporates the associated priorities of the GBEDC, theChamber of Commerce, Visit Beloit, and the DowntownBeloit Association. On a monthly basis the ExecutiveDirectors meet to discuss progress on our agreed-uponinitiatives, develop new ideas, and to coordinateactivities. On an on-going basis, the Plan will be modifiedto reflect changing priorities within the economicdevelopment landscape.

John Nicholas, Beloit College

LOAN AND FINANCE COMMITTEE:There are presently six (6) loans outstanding which total over $440,000 as part of the City of Beloit’s Revolving Loan Fund (RLF) program. Theoriginal balances of these loans were over $500,000 and all but one (1) have been handled as agreed. There remains over $339,000 in available fundsto be disbursed for qualified City of Beloit businesses. In addition, local financial institutions are making an additional $1,275,000 available for loans forqualified projects relating to economic development. An updated brochure that outlines these programs has been produced and is also detailed onour web page www.greaterbeloitworks.com making this information accessible to all potential loan applicants.

Ed Hansen, Gateway Community Bank

BUSINESS DEVELOPMENT COMMITTEE:The last year has proven to be very challenging for our local economy. Economic development activity throughout the region came to a screechinghalt. We have used this past year to initiate a formal external prospecting process, improve the quality of our marketing and communications,increase the focus on client retention and satisfaction and enhance the quality of our product offering.The food technology and processing industries are a core competency of the region. These industries also tend to be recession resistant. Workingin partnership with the Rock County Development Alliance, we will be using the services of Montreal based ROI for qualified lead generation for foodtechnology and processing companies from around the country with expansion plans. The ROI methodology will eventually be extended to othertarget industries.The website was redesigned last year. During 2009, the addition of Google analytics and search engine optimization features has increased thesophistication of our website in communicating the attractive characteristics of our area for development or expansion opportunities. The initiationof a formalized business retention and expansion survey has also allowed us to stay in touch with existing businesses to identify issues and concernsthat might either limit or enhance their success.The availability of shovel ready sites is a competitive advantage for us, even in this tough economy. We completed the preliminary engineeringstudies, making shovel ready two of the sites in the Gateway Business Park. We have also begun to explore the feasibility of an on-site childcarefacility, both for existing area businesses, as well as a differentiation feature to those companies considering us for their expansion plans. Lastly, wehave agreed to work with the City of Beloit, Downtown Beloit, and Beloit 2020 in looking at ways to enhance the southeast gateway into downtown.

Rick Bastian, Blackhawk Bank

INVESTMENT/RECRUITMENT COMMITTEE:Our committee continues to look for ways to increase investor commitment to ourorganization. In 2009, we saw a minor reduction in investor income with a final totalof $52,840, which is understandable in light of what’s happening to the localeconomy. For 2010, we plan to broaden our potential investor list to include moreof the small companies which tend to see a more direct benefit from area economicgrowth. Our overall presentation to area businesses will include our new flip chartpresentation as well as our new email video presentation that should allow potentialinvestors an opportunity to understand what we do for the local economy. We alsointend to increase the advertising option on our website, which will also increaseinvestor revenue, so we can ultimately reach our goal of $66,000 in total for 2010.

Keith Kruse, Tricor Insurance

BUSINESS/EDUCATION PARTNERSHIP COMMITTEE:In 2009, Education & Training Committee was combined with the Business Education Partnership. The 3rd Annual Business/Education Summit washeld at Beloit Memorial High School and was very successful with many good ideas stemming from the roundtable discussions. In May, the 2nd AnnualConnections Initiative was conducted with over 450 freshman students visiting 27 local companies. A pilot mock interview program was initiated inthe spring at Beloit Memorial High School, with over 25 students participating. The Speaker’s Bureau Pool was designed and made available to allarea schools. The Business Education Blog was initiated. The Lunch & Learn Program was initiated and has over 20 adults mentoring freshmanstudents. SAT testing grants were funded for students at Beloit Memorial High School in collaboration with the Stateline Community Foundation andwe are working on a grant program for Blackhawk Technical College applicants. We have continued collaborations with the Greater Beloit Chamberof Commerce with their 2nd Annual Career Fair which will also include Turner and South Beloit students. We have continued to support the Dare toDream initiative as well as the Stateline Career and Technical Education Academy.

Rick Barder, M & I BankJim Agate, Culvers, The Rock & Papa Murphy’s

Profit Loss Budget vs. ActualOctober 2009

October2009

Actual

2009Annual

Budget

2009YTD

Actual

Income

Billboard Lease (Lamar) 0.00 4,500.00 4,500.00

Business Education Summit 18.00 5,300.00 2,682.00

Crop Lease 0.00 38,408.00 17,140.48

Interest Income 75.62 1,000.00 719.13

Investor Dues 250.00 65,971.00 52,840.75

Other Income 0.00 0.00 8,798.00

Rental Income - 520 E. Grand 3,600.00 14,400.00 9,600.00

Total Income 3,943.62 129,579.00 96,280.36

Expense

Accounting/Audit 0.00 3,500.00 3,480.00

Advertising & Marketing 0.00 20,000.00 15,902.50

Bus/Educ Summit/Connections 20.00 7,000.00 4,073.97

Contingency 0.00 0.00 0.00

EDA Grant Match 0.00 5,400.00 3,000.00

Insurance - D&O 0.00 800.00 750.00

Insurance - Liability 0.00 2,500.00 2,496.00

Legal Fees, Filing Fee, Etc. 10.00 500.00 50.00

Loan Interest - FNB 752.43 11,979.00 7,682.57

Loan Payment #2 - CDBG 0.00 1,500.00 0.00

Meals & Entertainment 40.00 1,000.00 308.92

Meeting Expense 0.00 3,500.00 636.08

Office Supplies 0.00 4,700.00 3,615.33

Professional Services 0.00 5,000.00 7,944.00

Project Signs 0.00 5,000.00 250.00

Rent/Utilities 2,970.80 20,000.00 17,079.74

Repairs - 520 E. Grand 0.00 10,000.00 506.92

Staff 0.00 2,256.00 2,255.50

Strategic Plan 0.00 0.00 0.00

Subscriptions & Reports 149.00 500.00 149.00

Training/Conference 0.00 2,000.00 2,435.00

Travel 210.00 500.00 1,322.72

Utilities - Signs 51.14 400.00 303.71

UW Engineering Program 0.00 2,000.00 2,000.00

Total Expense 4,203.37 110,035.00 76,241.96

Net Income (259.75) 19,544.00 20,038.40

Net Cash Provided by Financing Activities (495.79) (3,674.63)

Adjusted Net Income (755.54) 16,363.77

500 Public Ave.Beloit, WI 53511

Phone: 608-364-6748Fax: 608-364-6756Email: jankea@ci.beloit.wi.us

Our Mission:The GBEDC is a public/private investor-based non-profit organization that

fosters economic development in the Greater Beloit area.

Our Vision:We will be a broad-based, public/private partnership that creates a

common focus on economic development activities in Greater Beloit.

Greater Beloit Economic Development Corporation

Visit us on the web:

www.greaterbeloitworks.com