2011 Annual Report

“The Door County

Economic Development Corporation

is a public/private partnership

dedicated to improving the

economic vitality of the County

and its residents.”

BUSINESS

By

NATURE

Dear Investors and Friends,

Though the last few years have presented many economic challenges, the ability to adapt, refocus, and forge ahead with new strategies are key tactics that separate successful businesses and organizationsfrom the rest of the pack. Door County residents and businesses are renowned for our resilience anddetermination, and it is these same time-honored qualities and strategies that will lead us back again.

This report recognizes dozens of local organizations and businesses that fought through the recessionand are focused on a brighter future. Here are just a few examples:

• HTF, Inc doubled the size of their manufacturing plant in the Sturgeon Bay Industrial Parkto accommodate new contracts for their industrial heat treat equipment;

• Palmer Johnson Yachts landed two new yacht contracts, signaling a dramatic turnaroundin a significantly depressed global industry sector;

• Door Peninsula Winery expanded their operations and added a new business, DoorCounty Distillery, in a beautiful addition to their facilities in Carlsville;

• The wineries of Door County organized and promoted the entire industry through theirnew marketing entity, Door County Wine Trail, Inc.;

• Nsight/Cellcom began the build out of a new fiber optic telecommunications network inthe county that will enable them to offer 4G wireless service while also providing fiberbased broadband services to most of our larger businesses and organizations;

• Frontier Communications upgraded their infrastructure and began offering enhancedbroadband services to residents and businesses in Northern Door.

The Board of Directors applauds the scores of individuals and organizations who step up every day tobuild a better economy for the residents of Door County. If this report inspires you to take part or domore, please contact us to offer your time and talents.

The greatest strengths of this organization are its volunteers and investors. We do not exist without you.On behalf of the entire community, we are grateful and we thank you.

Sincerely,

Bob Starr,Chairman

FINANCIAL RESOURCES

While developing and administering an aggressiveeconomic development program, DCEDC strivesto control costs and to direct resources where theyare most beneficial. The graphs below were developedusing information from the Door CountyEconomic Development Corporation’s year-endfinancial statements. Schenck Business Solutions,Certified Public Accountants, will be conducting

2011Revenue

an audit of these statements this spring. Revenuefor 2011 totaled $308,880.52 and expensestotaled $307,876.68.

Most DCEDC investor revenues are raisedthrough three-year pledge drives. The DCEDChas received both public sector and private sectorcommitments through 2013.

2011Expenses

William D. Chaudoir,Executive Director

EXISTING BUSINESS ASSISTANCE■ In the year gone by, DCEDC responded to requests for business consultation from 47 existing local companies, including HTF, Inc., Jim Olson Motors, The Cookery, Sail Door County, Seaquist Orchardsand Warner-Wexel.

■ HTF constructed an expansion of their facility,doubling the size of their Industrial Park plant after

purchasing a oneacre lot from theCity of Sturgeon Bay.The new buildingwill accommodate the company’s

projected sales growth, which is anticipated to retain6-8 jobs for the company and create 3-5 new jobs.

■ Sail Door County expanded its fleet with the purchase of the 62-footschooner Edith M. Becker,which will allow the companyto accommodate larger partiesup to 25 people.

■ The James Olson Automotive Group established thenew Jim Olson Express service facility on Egg Harbor

Road, putting back into service an existing building that had been empty for some time in one of Sturgeon Bay’sprimary business corridors.

■ DCEDC and the Door County Visitor Bureauhosted four educational/informational sessionsfeaturing guest speakers on electronic and socialmedia marketing, and organized a half day workshopon business succession planning, especially targetingthe Northern Door business community and thetourism industry. Combined, the five sessions drewmore than 240 participants.

■ In May, WireTech Fabricators was recognized asthe Door County Industry of the Year at DCEDC’sAnnual Meeting, and Dale and Kristin Seaquist andJim and Robin Seaquist, owners of Seaquist Orchards

were recognized as DoorCounty’s Entrepreneurs of theYear for 2011. WireTech subsequently received aManufacturers Award ofDistinction from the Green

Bay Area Chamber of Commerce; DCEDC nominatedWireTech as our reigning award winner.

■ DCEDC continued to offer monthly office hoursin Northern Door County during the off season tohelp grow the important tourism sector of the economy. Over eight sessions, DCEDC met with 17 entrepreneurs and business owners.

■ DCEDC and the Door CountyVisitor Bureau co-hosted a Winning the Future Roundtable with American Business for US CommerceUndersecretary David Kappos with 20local business and community leaders, on behalf ofthe White House Business Council.

BUSINESS RETENTION

■ DCEDC staff and Business Retention committeevolunteers conducted 18 business retention interviews with a diverse group of local manufacturing, service, construction, retail andtourism businesses to thank them for doing business in the county and to assist them in resolving any issues constraining their growth.

■ Staff and volunteers continued to utilize ExecutivePulse, an on-line business retention software packagebeing employed throughout Northeast Wisconsin,which allows for data mining and reporting capabilitieson both the local and regional level. Findings fromthe Executive Pulse survey are included in this report.

ENTREPRENEURIAL SERVICES

■ During 2011, DCEDC assisted over 120 entrepreneursinvestigating the feasibility and/or start-up of newbusiness ventures. Among the new business venturesestablished in Door County in 2011 are TechnologyManagement Solutions, Door County Distillery, LilyBay Soaps, Door County Floral, Universal GuardiansInc., Frame Fitz, The Lodge at Leathem Smith, TheDraft Haus, EZ Green Lawn Care, Czarnuszka SoupBar, Peninsula Building Systems, and J. Allen Signs.

■ The Door County Business Development Center(business incubator) is currently home to 10 businesseswith 23 employees. Peninsula Building Systems, Inc.became a new Center client in 2011. Eighteen businesseshave graduated from the Center, creating 80 jobs todate.

■ The Business Development Center was one of nineWisconsin Business Incubation Association membersites to receive a video conferencing system, financedby a grant from the Wisconsin Economic DevelopmentCorporation. The new system was installed in theDCEDC conference room, where it is available to incubator clients, as well as other local companies ororganizations.

■ DCEDC co-sponsored the tenth annual DoorCounty entrepreneurial training program, teaching15 new and existing business owners how to write abusiness plan to grow their companies. Patrick andJessica Markham of start-up marine services companyArneson Aftermarket in Sturgeon Bay won a $1,000

cash award for their business plan, judged to be thebest from the class. The award was provided byAssociated, Baylake and Citizens banks.

■ DCEDC and the UW-Green Bay Small BusinessDevelopment Center have a close partnership, whichincludes monthly visits to Door County by a SBDCBusiness Counselor. A total of 143 counseling sessions

were held in DoorCounty in 2011,accounting for 312counseling hours

with 57 distinct clients. Fifty percent of clients wereexisting business owners. Nine counseling clientsstarted businesses in 2011 and two more expandedexisting operations. Total capital raised or approved forSBA guarantees for Door County counseling clientstotaled $1,439,800 in 2011.

BUSINESS FINANCING

■ DCEDC administers Revolving Loan Fund programs for the County of Door, City of SturgeonBay and DCEDC Board of Directors, providing lowinterest financing for new or expanding businesses.

■ In 2011, loans totaling $374,200 were approved forfive businesses, including The Draft Haus,Czarnuszka Soup Bar, Kick Coffeehouse, TheCookery, and The Lodge at Leathem Smith.Collectively, these projects leveraged $2.003 Million inprivate funds, will create 45 jobs and retain 3 jobsover the next three years. There are currently 21active loans between the three revolving loan funds.

■ During the 21-year history of the Door Countyrevolving loan funds, DCEDC has serviced 70 loanswith a value of over $9.943 Million. Cumulativeimpact of the three Revolving Loan Fund programsincludes more than $41 Million in private investments, and the creation of 580 jobs and retention of 213 jobs.

COMMUNITY DEVELOPMENT

■ The Sturgeon Bay Waterfront RedevelopmentAuthority and Common Council approved a plan fromconsultants Vandewalle & Associates for the

redevelopment of the city’s west side waterfront,which includes the vacant Applebee’s and the formerDoor County Co-op site. The plan calls for severalnew uses in the area, including: a four seasons market;a franchise suite hotel; space for future expansion ofthe Door County Maritime Museum; and a commercialbuilding for retail and office. Other sites in the immediate vicinity are slated to provide workforcehousing and additional lodging or residential development. DCEDC assisted the City in the successfulapplication for a grant to study the feasibility of thefour seasons market; the study is now underway. Nextsteps are to begin the process of soliciting developersand businesses for projects, and securing grants forwalkway extensions and further detailed plans.

■ The DCEDC Board of Directors passed a resolution in support of the Peninsular Agricultural ResearchStation and helped coordinate a campaign todemonstrate community and business support for thestation to state and university officials. The Station hasbeen part of Door County since 1922 and is the onlyone in the state that studies specialty crops such asapples, cherries and grapes. Agriculture contributes closeto $200 Million annually to the Door County economy.The Station sustained cuts to its budget, but remainsopen and operational.

■ The Door County Buy Localprogram grew membership tonearly 150 members in 2011and hosted seven business networking mixers at local companies throughoutthe county. The program, a grass-roots economicdevelopment initiative, seeks to strengthen local businesses, increase employment opportunities andeducate the public about the importance of buyinglocally whenever possible.

■ A survey of Buy Local membership reported thatparticipating companies make 40% of their purchases locally. One goal of the Buy Local programis to ask local firms to do as much business as is practical with Door County businesses and increasethat percentage.

■ The Buy Local Ag-Grow Local subcommittee got offto a strong start, surveying local agriculture producers,chefs, restaurateurs, institutional users, consumers andsupporters of sustainable, local agriculture; sharing thesurvey results with the public; and working toexpand markets for local producers with commercial and personal consumers.

■ The Federal Highway Administrationawarded $355,000 in grants to twoDoor County Coastal Byways projects:enhancement for public access to LakeMichigan at Anclam Park in Baileys Harborand development of a comprehensive interpretive

for almost 100 high school students, had 276 studentsembarking on business tours of 18 area companies,and provided guest speakers in the classroom toaddress more than 145 students on career prospects ina variety of local industries.

■ DKBEP and NWTC unveiled a ComputerIntegrated Mobile Manufacturing Lab, which willaddress the need forCNC (computer numericcontrol) education inthe schools, to exposelocal youth to excitingand rewarding CNCcareers, and to grow thelocal workforce. Area businesses have indicated thisindustry is growing significantly and the availability of a qualified workforce is the major deterrent limitingthe growth of jobs in this sector. The Mobile Lab isable to bring training and experience directly to areaschool districts, and provide customized training fordislocated workers, incumbent workers and highschool graduates for area businesses. DCEDC assistedwith the study demonstrating demand for the projectand secured local industry support to help fund operations.

■ DKBEP’s High School Home Construction program completed and sold its fourth home.Fourteen students representing Gibraltar, Sevastopol,Sturgeon Bay, and SouthernDoor school districts built ahome from start to finish duringthe 2010-11 school year.Participants were involved in allaspects of home construction,and each earned 16 credits inthe Wood Tech program at NWTC. Students who participate in the program become skilled in all tradeareas associated with home construction, with the goalof continuing their education or joining the localworkforce. Six graduates of the 2011 program are continuing their education in trades-related programsat universities or technical colleges; seven graduateshave joined the workforce; one is completing theirhigh school education.

ATTAINABLE HOUSING

■ Private developer Keith Garot began constructionon Stony Ridge Condominiums, a new condo development in Sister Bay. He is building 8-unitduplexes, withplans to buildsix buildingsfor a total of48 units. Inmost cases,

master plan, with assistance from a professional consulting firm, to better convey the Byway story to travelers. DCEDC has assisted with the Coastal Bywayproject from the beginning, serves as the fiscal agentfor the Byway and is currently coordinating the interpretive master planning process for the CoastalByway Council.

■ DCEDC helped organize and facilitate seven Doorand Kewaunee County wineries to form the Door County WineTrail, Inc. The wine trail isdesigned to expand the DoorCounty wine market with newand experienced wine drinkers,

while also growing the industry and continuing tosupport the local economy.

■ DCEDC is collaborating with others on thepreparation of an application for Coast GuardCity status for Sturgeon Bay. We are also workingwith the City on an initiative to relocate andenhance shore support facilities for the CoastGuard cutter Mobile Bay.

■ DCEDC and Mike Ward of Waypoint PrivateCapital, Inc. began the process of identifying anddeveloping potential investment opportunities for the Door County Opportunity Fund. It is hoped that making seed financing available in the area willencourage and entice entrepreneurs to start or relocatepromising businesses to the peninsula.

WORKFORCE DEVELOPMENT

■ DCEDC completed its fourth wages and benefitssurvey of local manufacturing companies fromDoor and Kewaunee Counties. The data collectedenables companies to better understand the locallabor market and keep employee compensation packages competitive. Sixteen companies participated:twelve from Door and four from Kewaunee. DCEDCalso partnered with the Door County Visitor Bureau tocomplete a second annual wage and benefit survey oflocal tourism businesses. 54 innkeepers, restaurateursand retail business owners responded to the survey.

■ The Door/Kewaunee Business & EducationPartnership (DKBEP), our sister organization whosemission is to build lasting business and education

partnerships through educationand local employment opportunities for students, provided a number of careerawareness programs for areaschool districts. Over 340

students participated in the 8th Grade Career Fair andmore than 500 3rd-5th graders attended the Careerson Wheels program. DKBEP also arranged job shadows

the units are being sold to year-round members of the Northern Door workforce. Construction is alsounderway on one 16-unit rental building alongCountry Walk Drive. Future plans call for the development of single-family homes as well as a 65+senior rental facility. DCEDC served as an advocatefor the project, encouraging village support andapproval of the housing initiative.

■ Wisconsin Partnership for Housing Developmentagreed to provide technical assistance in setting up aDoor County Housing Trust to provide long-termattainable housing units in Door County.

■ Action Realty hosted a ribbon cutting and openhouse for the completed model homes on the formerWireTech factory site in Sturgeon Bay. The two homesare the first in a 17-lot workforce housing developmentfor V&A of Sturgeon Bay, a partnership between “R”Van Rite Construction and Heritage Custom Homes ofGreen Bay. The City of Sturgeon Bay has created a

Down Payment AssistanceProgram which will providea $5,000, zero-percentinterest, forgivable loan to help fund the down payment needs for the

first nine qualified home buyers in the development.DCEDC continues to provide a leadership role with theCity in the redevelopment of the former WireTech site,and administers the Down Payment AssistanceProgram as well as the Wisconsin Housing andEconomic Development Authority model home construction financing loan fund for the developers.

■ Attainable Housing Committee members began the process of compiling data for development of anupdated Housing Needs Analysis for Door County.The purpose of the study is to analyze the housingmarket and housing trends, document housing conditions and provide an action plan to meet thedemands that exist.

TECHNOLOGY COUNCIL

■ Nsight began building a new fiber optic network inDoor County. The network will deliver high-speedInternet access, increase capacity for data services,expand the wireless network and prepare the networkfor wireless 4G technology in the entire county.DCEDC and Cellcom worked with city and county representatives to plot a fiber route into Sturgeon Baythat can provide telecommunication services to high-demand users, including theSturgeon Bay Industrial Park, thehospital, shipyards and others thatcould benefit from this ultra-highbroadband network. The fiber linewill continue up to Gills Rock toconnect all Nsight/Cellcom wirelesstower sites in Door County. The rest of the county willbenefit from enhanced wireless services, includinghigh-speed voice and data services.

■ Frontier Communications upgraded their infrastructure and began offering DSL service inNorthern Door. The first areas served are near thecompany’s exchanges in Jacksonport, Egg Harbor,Baileys Harbor, Sister Bay andWashington Island. Ephraim,Gills Rock and parts of FishCreek will get DSL service in2012. The original plan was to enter the marketwith basic speeds, but while building the network,Frontier determined that it would be in the best interest to provide their total high speed portfolio. Residents therefore have the option of upto 7mg service; 2012 will see additional higherspeeds become available.

THE YEAR AHEAD

The DCEDC Board of Directors annually adopts priority strategic objectives to guide the work of the Corporation. For2012, those priorities are: implementing the final phases of the Sturgeon Bay Shipbuilding Cluster Master Plan;partnering with other groups to help strengthen the tourism industry; assisting local communities develop andimplement downtown redevelopment plans; continuing the process to have Sturgeon Bay designated as a CoastGuard City; surveying the business community to identify any regulatory barriers to business; coordinating withNWTC and local businesses for use of the mobile CNC training lab; investigating ways to increase organic agri-culture production and expand markets for local producers; and beginning to leverage telecommunicationsimprovements for business retention, attraction and expansion. As always, the DCEDC staff will continue to beavailable to provide on-going guidance and assistance to the entrepreneurs and business owners of Door County.

2011 Board of Directors

OfficersRoger Kinnard - ChairDC Manufacturers Assn & Therma-Tron-X

Robert Starr - Vice-ChairDC Board of REALTORS & ERA/Starr Realty

Greg Stephan - TreasurerDC Visitor Bureau & Associated Bank

William Chaudoir - SecretaryDoor County Economic Development Corporation

DirectorsDan AustadCounty of Door

Thad BirminghamCity of Sturgeon Bay & Birmingham Builders

Patrick Duffy/Scott BakerVillage of Sister Bay

Joseph InnisSouthern Door County School District

Leroy LiebeCounty of Door

Leslie GastSB Visitor Center & Baylake Bank

Dr. David Ward Northstar Economics

Vicki WilsonDC Visitor Bureau & DC Coffee & Tea

Ex-Officio DirectorsRob Burke/Dean Volenberg/Karen HintzUW-Extension

Robert KufrinVillage of Sister Bay

Robert Loss/Cheryl TiemanNortheast Wisconsin Technical College

Steve McNeilCity of Sturgeon Bay

Jack MoneypennyDoor County Visitor Bureau

Michael SerpeCounty of Door

Jim StawickiSturgeon Bay Utilities

Dale SwansonWisconsin Public Service Corporation

Todd TrimbergerSturgeon Bay Visitor Center

185 East Walnut StreetSturgeon Bay, WI 54235

920.743.3113 800.450.3113www.doorcountybusiness.com

The future strength of the Door County economy is highly dependentupon the success and growth of businesses that already exist in DoorCounty. The Door County Economic Development Corporation workswith existing businesses on an ongoing basis to determine the health andstrength of the local economy. DCEDC staff and our Business Retentioncommittee volunteers regularly conduct confidential interviews withlocal businesses, to thank them for doing business in the County and toassist them in resolving any issues constraining their growth.

The DCEDC Business Retention Committee began using ExecutivePulse, an on-line business retention data management system, in late2006. Economic development organizations and technical collegesthroughout Northeast Wisconsin are using Executive Pulse to track andmanage data collected in interviews with corporate leaders. The ExecutivePulse system allows for local and regional reporting, including aggregatetrend analysis, comparative jurisdictional analysis and predictive reports.

During 2011, DCEDC staff and Business Retention committeevolunteers conducted interviews with 18 area firms – a diversemix including manufacturing, construction, retail, health care,accommodations and food service – representing a total workforceof 654. Results from those interviews are excerpted below to give ageneral impression of the Door County economic climate, asviewed by the business leaders of our community (2010 responsesin parentheses for comparison).

• 94% of current employees are residents of Door County (89%);• 100% of surveyed companies see employment either increasing or staying the same (69%);• 33% plan to hire additional employees within the next year (42%);• Surveyed firms projected creating 150 jobs in 2012 (70 in 2011);• 77% project sales growth in 2012 (78%);• 71% rate the quality of the local workforce as Good or Excellent (79%);• 41% rated housing in Door County as Good or Excellent (45%);• 94% rate the recreational and cultural amenities of Door County as Good or Excellent (83%);• 82% rate K-12 education in Door County as Good or Excellent (77%);• 100% rank the Internet as Important or Somewhat Importantto their business (100%);• 65% rate local telecommunications services as Good or Excellent (42%);• 24% rate the local business climate as Good or Excellent (31%);• 18% rate the local business climate better now than five years ago (18%);• 82% forecast that the local business climate will be better five years from now (71%);• 89% indicate a positive corporate attitude towards the community (82%).

Anyone interested in participating in the DCEDC Business Retention efforts, either as a volunteer or as aninterviewee, should contact the DCEDC office at 920-743-3113.

THE DOOR COUNTY BUSINESS CLIMATE

DCEDC 2011 InvestorsBecause economic development in the Door County Peninsula is good for all businesses, existing companies are animportant source of financial support for DCEDC. This voluntary investment, donated over a three-year period,enhances the ability of DCEDC to provide business assistance, financial incentives and other initiatives designedto strengthen the local business climate. These private funds are combined with local government investments,

grants and contract service fees to provide the money necessary for DCEDC to fulfill our mission “to improve the economic vitality of the county and its residents.”

We encourage you to support the companies that invest in DCEDC.

Diamond ($55,000 & up)County of Door

Platinum ($5,000 - $54,999)Bay Shipbuilding Company City of Sturgeon Bay Sturgeon Bay Utilities

American Transmission CompanyAssociated BankAurora Health CareBe’s Coffee & Vending

Marine Travelift/ExacTechN.E.W. IndustriesTherma-Tron-X

Village of Sister BayWireTech FabricatorsWulf Brothers

Alberts PlasteringBank of LuxemburgC&S Manufacturing Corp.Door County AdvocateDoor Peninsula Winery & DistilleryFederated Insurance

Frontier CommunicationsKeller, Inc.Kerber, Rose & AssociatesMain Street MarketNortheast WI Technical CollegeNorthstar Economics

Bayland Buildings, Inc.Boettcher CommunicationsBridgeport ResortCarquest of Door CountyCitizens BankThe CookeryCountry OvensDan’s Fish, Inc.DC Printing, LLCDoor County Coffee & Tea Co.Door County Eye AssociatesDoor County HardwareDoor Landscape & NurseryDoor County Lavender & LemonEagle Mechanical

ERA/Starr RealtyFlanigan DistributingFLS Banners, Ltd.Foremost ManagementFour Sail RealtyGoing Garbage & RecyclingHedeen InternationalHeyrman Construction Co.HTF, Inc.Huehns Funeral HomeInsurance Center of Sturgeon BayJim Olson Motors, Inc.JR Vacation RentalsJust In Time Corporation

Bronze ($500 - $999)

Silver ($1,000 - $2,499)

Baylake BankHatco Corporation

Ministry Door County Medical CenterNsight/Cellcom

Wisconsin Public Service

Gold ($2,500 - $4,999)

Copper ($499 & under)

In-Kind Contributors

Key Industrial PlasticsLeFevre Tire & AutoThe Linen PressLfp Design!Little Fish StudiosMay RealtyMcDonald’sMeissner LandscapeNeuville Family Ltd. PartnershipNorthland Steel Co. Inc.North Shore BankPine Crest VillagePIP PrintingPremier Search Associates

DoorCountyDailyNews.comDoor County Visitor BureauMastercare CleaningSchenck Business Solutions

Stone Harbor ResortSturgeon Bay Visitor CenterSturgeon Bay Florist

Peninsula Building SystemsPioneer Credit UnionPlainfield StampingPortside BuildersRoen Salvage Co.Stone Harbor Resort

Pro ProductsRobert W. Baird & Co.Simon Creek VineyardsSoik CommunicationsStoneman Schopf AgencySturgeon Bay Metal Products, Inc.Tait & MorrowTrue North Real EstateVan’s Lumber and BuildersViking ElectricW.E. BuildersWashington Island Ferry LineWelcome Home RealtyWoodrow EngineeringYoung Automotive

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