By Dave Fidlin
Correspondent
A Whitewater-based company will soon receive a renewable loan in exchange for adding to the city’s employment base under terms of an agreement that was approved recently by officials.
The Whitewater Community Development Authority on April 22 voted to award a $50,000 community development block grant (CDBG) revolving loan fund to an unnamed gaming league development company.
CDBG funds are funneled to state, county and municipal governments through a federal agency and can only be used in narrow circumstances, including efforts to bolster a community’s economy through such efforts as job creation.
“(The revolving loan fund) is a program based on jobs being created,” Whitewater CDA Executive Director Patrick Cannon said.
During the recent discussion with CDA members, Cannon said up to $20,000 in CDBG revolving loan fund dollars can be allocated toward a business adding each full-time equivalency position. The provision suggests the gaming league development company will bring two new full-time jobs, as well as a part-time one, to the city.
In other recent business, the CDA:
- Discussed, in closed session, the possibility of awarding two forms of capital catalyst funds to an unnamed medical 3D imaging system company in Whitewater. No formal action was taken on the requests.
The capital catalyst program is administered by the Wisconsin Economic Development Corporation (WEDC) and is aimed at giving an extra push to start-up companies that are in their infancy, or incubation, period.
The two types of capital catalyst funds sought by the medical 3D imaging company pertained to an outright grant for operational expenses and a so-called royalty investment request;
- Discussed creating an economic development incentive package to help spur development in the city’s fifth tax-incremental financing (TIF) district. Plans call for members of the Common Council and CDA to meet jointly on an as-yet undetermined date to hash over the package plan and discuss in detail the status of each of the city’s active TIF districts.
TIF is a mechanism that allows municipalities to borrow money for infrastructure improvements. The increased property tax revenue from the improved land is then diverted from the tax rolls to pay off the loan.
- Delayed action on a proposal to contribute additional dollars to the city’s Spark program. CDA members said they did not have enough information to make a decision and are requesting Spark officials discuss their funding needs at a future meeting.
Spark is described as a pre-seed incubator that bridges the gap between an idea and company;
- Discussed the ongoing proposal to create a citywide fiber-optic network. Cannon said he did not have an update on the proposal at the April 22 meeting, but several CDA members asserted it was an issue that should remain at the forefront of the appointed body since it can be used as a tool to recruit new businesses;
- Discussed partnering with the state Department of Workforce Development to bring interns and educational opportunities to the city’s business community. Further information is anticipated at future CDA meetings.
