2008 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 & Friends,

Thank you for joining us to help celebrate our 20th year of service to the community. What startedin 1989 as an underfunded fledgling operation in a donated office at the Door County Chamber ofCommerce has grown into a dynamic and respected full-service economic development program. Thecredit for this metamorphosis rests squarely on the shoulders of our private and public sector partnerswho collaborated to grow this organization and to strive for a better quality of life for all citizens ofthe county. We are forever indebted to the many early visionaries and leaders who put in the hardwork to get us to this point.

We’ve worked on many projects and programs over the years, but none took longer or required moreperseverance than the two major transportation projects we saw completed in 2008. Work to secureapproval and funding of the four lane highway to Green Bay started in our very first year of operation;similar work on the downtown Sturgeon Bay bridge began a few years later. We can’t explain the pride thecompletion of these projects provides. Not many developments in the history of the county will be able toclaim a greater stimulus to the economy or enhancement of public safety.

2008 marked the start of a global economic recession, the severity of which has not been experienced in along time. It is in times like this that we are reminded of the quality of our local business community. Someof our companies remain busy because they are the best in the world at what they do; many are taking thisopportunity to upgrade facilities and equipment to be more efficient, and more are investing in employeetraining so they are prepared for the recovery. But most every business is working with their employees tofind ways to survive the recession and retain the workforce they worked so hard to assemble. DCEDC standsready to support our business community through this difficult period.

Please take a few minutes to review this report to learn more about the business expansions and initiativesthat are working to improve the quality of life in our county. None of this work would be possible withoutthe support of our investors and dozens of volunteers. We respectfully request your continued support tohelp ensure a brighter future for all county residents. Thank you.

Sincerely,

William D. Chaudoir,Executive Director

FINANCIAL RESOURCES

While developing and administering an aggressiveeconomic development program, DCEDC strives tocontrol costs and direct resources where they aremost beneficial. The graphs below were developedusing information from the Door County EconomicDevelopment Corporation’s year-end financialstatements. Schenck Business Solutions, CertifiedPublic Accountants, will be conducting an audit of

2008Revenue

these statements this spring. Revenue for 2008totaled $360,571 and expenses totaled $365,944.

Most DCEDC investor revenues are raised throughthree-year pledge drives. The DCEDC has receivedpublic sector commitments through 2011 andprivate sector commitments through 2009. Currentpledge commitments total $138,720 for 2009.

2008Expenses

Roger Kinnard,Chair

EXISTING BUSINESS ASSISTANCEn In the year gone by, DCEDC responded to requestsfor business consultation from 43 existing localcompanies, including Palmer Johnson Yachts,Sunshine House and e-tailer, inc

n In May, N.E.W. Industries was recognized as theDoor County Industry of the Year atDCEDC’s Annual Meeting, andLaVonne & Dave Callsen and Kaaren& Steve Northrop, co-owners of theMain Street Market in Egg Harborwere recognized as Door County’sEntrepreneurs of the Year for 2008.N.E.W. Industries went on to win theGreen Bay Chamber Manufacturersof Distinction Award for regionalmedium size companies.

n On December 31, 2008, the Italian companyFincantieri completed its purchase of the

Manitowoc Marine Group, whichincludes Bay Shipbuilding Company.The new owners have already indicated adesire to begin implementation of thefinal recommendations from theSturgeon Bay Shipbuilding Cluster Master

Plan, which include a new boat launch system andother facilities improvements for the shipyard.

n DCEDC assisted Warner-Wexel LLC in theexpansion of their local customer base; the companysells restaurant, janitorial and industrial supplies to

customers throughout the area.Wexel Industrial Supply and WarnerWholesale Company merged in 2007to become Warner-Wexel LLC andconsolidated their operations in theSturgeon Bay Industrial Park.

n DCEDC began offering monthly office hours inNorthern Door County – part of the ongoingimplementation of the Door County EconomicDevelopment Adjustment Plan – to help growimportant sectors of the economy around the entirecounty, including the tourism industry.

BUSINESS RETENTION

n DCEDC staff and Business Retention committeevolunteers conducted 23 business retention interviewswith a diverse group of local manufacturing, service,construction, retail and tourism businesses to thankthem for doing business in the county and to assistthem in resolving any issues constraining theirgrowth.

n Staff and volunteers continued to utilize ExecutivePulse, an on-line business retention software packagebeing employed throughoutNortheast Wisconsin, whichallows for data mining andreporting capabilities on both the local and regionallevel. Findings from Executive Pulse are included inthis report.

ENTREPRENEURIAL SERVICES

n During 2008, DCEDC assisted over 140 entrepreneursinvestigating the feasibility and/or start-up of newbusiness ventures. Besida Health Innovations,Sturgeon Bay Cold Storage, Orthopedic SpineTherapy and Retail Deployment Solutions werejust a sampling of the new business venturesestablished in Door County in 2008.

n Sturgeon Bay Cold Storage, LLC was created in June2008 to provide cold storage services to Dan’s Fish,Inc. as well as otherfood manufacturersin the area. Dan’sFish is the largestseafood distributor,processor, importerand exporter in Door County. The company decidedit was more cost efficient to build a cold storage facilityin the Sturgeon Bay Industrial Park to support itsneeds, rather than continue storing product in andtraveling to Green Bay.

n In 2008, DCEDC joined the Community VentureNetwork (CVN), a regional organization that bringshigh growth businesses togetherwith rural economic developmentprofessionals seeking to attractbusiness expansions and relocationsto their community. DCEDC staffattended CVN sessions inMinneapolis and Chicago throughout the year andheard presentations from 41 start-up or high-growthbusiness prospects in a wide range of industry sectors.Four of those businesses followed up with morein-depth conversations about Door County and twocompanies made site visits to the area.

n The Door County Business Development Center(business incubator) continued its successful track

record with 90% occupancy for theyear. In 2008 PeaPod Homes,Affordable Portable Spas of DoorCounty, Chapman TechnicalServices and EnglewoodElectrical Supply Company wereadded to our list of clients, whileTrillium Herbal Company andDoor County Natural StoneSurfaces leased additional space inthe Center.

n The Business Development Center is currently hometo 12 businesses with 31 employees. Nineteen businesseshave graduated from the Center, creating 79 jobs to date.

n PeaPod Homes was a winner in the BusinessServices category of the fifth Wisconsin Governor’sBusiness Plan Contest, and took second place and thePeople’s Choice Award in an Elevator Pitch

Competition held as partof the Entrepreneur’sConnection Conferencein Green Bay. The company

designs and distributes energy efficient passive-solarhome packages that rely on patent-pending computermodeling and a unique combination of buildingmaterials.

n DCEDC co-sponsored the seventh annual DoorCounty entrepreneurial training program, teaching

16 new and existingbusiness owners howto write a businessplan to grow theircompanies. Nell andJ.R. Jarosh, owners ofEdgewood OrchardGalleries in FishCreek won a $1,000

cash award provided by Associated, Baylake andCitizens banks, and a $5,000 advertising packagefrom DoorCountyDailyNews.com for their businessplan, judged to be the best from the class.

n Jeffrey Hirsch, a student at Sturgeon Bay HighSchool, received a$500 cash prize forthe best businessplan coming out ofan Entrepreneurship

course “adopted” by DCEDC. Jeffrey used the fundsto start a summer business, Superior Lawn Service.

n DCEDC presented the introductory workshop“How to Start a Business in Door County” incooperation with Northeast Wisconsin TechnicalCollege and the Sturgeon Bay Noon Rotary Club.

BUSINESS FINANCINGn DCEDC administers Revolving Loan Fundprograms for the County of Door, City of SturgeonBay and DCEDC Board of Directors, providing lowinterest financing for new or expanding businesses.In 2008, the City of Sturgeon Bay made a loan of$225,000 to Sturgeon Bay Cold Storage. In addition,funding of $2.2 Million through the State’sCommunity Development Block Grant programwas provided to Peninsula Dairy and PalmerJohnson Yachts which, when repaid, will increasefunds available to lend through the County by upto $1.1 Million. These three projects cumulativelyleveraged $3.97 Million in private funds, will create222 jobs and retain 208 over the next three years.There are currently 21 active loans between thethree revolving loan funds.

n During the 18-year history of the Door Countyrevolving loan funds, DCEDC has serviced 50 loanswith a value of over $5.9 Million. Cumulative impactof the three Revolving Loan Fund programs includesover $30.7 Million in private investments, and thecreation of 443 jobs and retention of 66 jobs. DCEDCcurrently maintains a loan fund balance of $1.1Million that is available to lend to eligible growingbusinesses.

COMMUNITY DEVELOPMENTn The City of Sturgeon Bay Plan Commission,Common Council and Joint Review Board assistedthe plans for the relocation ofWireTech Fabricators to theSturgeon Bay Industrial Park throughthe creation of a new Tax IncrementFinancing district and changes toexisting TIF districts. These actions will help financethe move and the acquisition and eventualredevelopment of the current WireTech site forworkforce housing. Plans call for the companyto relocate in 2009 and for a developer to sub-sequently begin construction of model homes.

n The Wisconsin Department of Transportationcompleted two major projects in Door County in2008. In September, Sturgeon Bay celebrated theopening of the new $32 Million channel bridgecrossing, connecting Maple and Oregon Streets. InOctober, the County opened the final section of State

Highway 57 as afour-lane dividedhighway, allowingfor uninterruptedtravel from GreenBay to Sturgeon

Bay. The $72 Million four lane highway project andthe Maple-Oregon bridge will dramatically improvethe transportation infrastructure in Door County,enhance public safety andimprove accessibility ofthe county for all sectorsof the local economy.DCEDC was at the fore-front of advocacy for bothof these projects, datingback to the organization’s founding in 1989.

n DCEDC staff actively participated in the developmentof both the County of Door and City of Sturgeon Baycomprehensive (“Smart Growth”) plans, contributingon committees and work groups, in interviews and viasurveys.

n In conjunction with the Door County VisitorBureau, DCEDC co-sponsored informational sessionsfor local businesses regarding the Healthy Lifestyles

Cooperative, an affordable healthinsurance alternative for small firms.Seventeen Door County businesseschose to join the cooperative toexplore their healthcare options. To

date, six Door County businesses have takenadvantage of this health insurance option.

WORKFORCE DEVELOPMENTn DCEDC and the Door/Kewaunee Business &Education Partnership (DKBEP) received a $44,000Community-Based Economic Development grantfrom the state Department of Commerce to fund a

Regional Training andDevelopment Program,providing career awarenessfor area youth and to helpfill future employment

needs in the region. The program consists of fourinitiatives: develop a certified nursing assistantprogram; expand the high school home constructionprogram to incorporate students interested in

complimentary industry sectors; develop a girl’scollaborative program; and launch a DKBEP website.

n DKBEP produced and released a series of e-mailablevideos featuring nine high-demand manufacturingoccupations with current availabilitiesin the Door/Kewaunee region. Thevideos present duties and skillsrequired at local manufacturing andshipbuilding businesses, along withprojected wages for each career.These videos will serve as a tool forarea high school technical educationprograms and workforce recruitmentefforts. The videos will help keeplocal high school graduates in thearea and assist businesses securequalified employees. To view the videos, visitwww.doorcountybusiness.com/dkbep.html.

n The inaugural DKBEP High School HomeConstruction Program, which included thirteen juniorsand seniors from four Door Countyschool districts, completed a ranch stylehome in May 2008. The home sold just 55days after completion and revenuegenerated from the sale was used asseed money for the 2008-09 homebuilding project. Students who participate in theprogram have the opportunity to become skilledin all trade areas associated with home construction.Five graduates of the program have already joinedthe local workforce and six are continuing theirconstruction education.

n The DCEDC Workforce Taskforce implemented awork plan to address current and future workforceneeds, including: development anddelivery of a brochure to entice USCoast Guard personnel to considermaking Door County their home after leavingactive service; hosting educational sessions on thechallenges of a multi-generational workplace; andconducting an employer needs assessment to judgethe future workforce needs of local manufacturingcompanies.

n The Workforce Taskforce organized a scootergiveaway during the annual Sevastopol AlumniClass Tournament over the Labor Day weekend,which gave the Taskforce the opportunity to raise

awareness of locally available career opportunitiesto the hundreds of Sevastopol alumni and

spouses attending. The giveawaywas generously sponsored by DoorCounty Memorial Hospital,Therma-Tron-X and Port PlazaAuto of Door County. TheTaskforce will continue to targetlocal high school reunion groups

as an avenue to recruit graduates to return toDoor County and become part of the localworkforce.

ATTAINABLE HOUSINGn DCEDC completed the final administration of the$467,500 Community Development Block Grant thatfunded the Door County Housing Assistance programfrom August 2004 to December 2007. Zero-percentinterest down payment loans of $371,677 were madeto 20 eligible first-time homebuyers in the County,with an additional $53,333 granted to theMeadowWoods development in Liberty Grove tofund infrastructure improvements.

n DCEDC Attainable Housing Committee hostedtwo informational sessions for the local real estateand mortgage lender communities. Participants

learned about the opportunities availableto make homeownership a reality forlocal residents. Representatives fromstate, local and regional organizationspresented tools to maximize affordabilityfor first-time home buyers. WisconsinHousing and Economic Development

Authority Executive Director Antonio Riley was aspecial guest speaker at each session.

n DCEDC and the City of Sturgeon Bay secured anextension of the $350,000 CommunityDevelopment Block Grant contract that willpartially finance the move by WireTechFabricators into the Sturgeon Bay Industrial Park,allowing for the development of their existingsite for workforce housing.

TECHNOLOGY COUNCILn In 2008, the County of Door released a request forproposals from service providers for a countywidefiber optics telecommunications network. Fiveproposals were received, and DCEDC was a memberof the County’s review committee. From that process,the County also received a separate proposal fromNorlight Telecommunications for the deployment ofa fiber optic backbone around the county, providingfiber to the premises service to select areas of thecounty, supported by a robust wireless deployment toreach more remote residences and businesses. Theproposed network would help to advance the abilityof existing businesses to grow and also provide anappealing lure for potential new business opportunities.

n IBEC’s Washington Island broadband overpower lines service, in partnershipwith the Washington IslandElectric Cooperative, began fulldeployment, providing high speedconnectivity to the island community.

THE YEAR AHEAD

The DCEDC Board of Directors and Staff have established priority strategic objectives for 2009, includingsecuring the funding and approvals to implement the final phases of the Sturgeon Bay Shipbuilding ClusterMaster Plan; support for improvements to the County’s telecommunications infrastructure; partneringwith other groups to help grow and strengthen the tourism industry; planning and execution of DoorCounty Legislative Days in May 2009; develop and implement a Workforce Taskforce action plan toaddress labor market issues; grow our database of target groups to continue electronic newsletter marketingprogram to attract entrepreneurship; rejoin the Community Venture Network to identify and investigate newbusiness leads for the County; continue the High School Home Construction program and initiate newDKBEP programs; secure a developer and begin redevelopment of the WireTech site for workforce housing;assist in the creation of a Door County angel/equity investment pledge fund; and implement sustainablepractices and energy saving initiatives at the Business Development Center. To view the entire DCEDC2009 Strategic Work Plan, visit www.doorcountybusiness.com/pdfs/workplan2009.pdf.

2008 Board of Directors

OfficersCynthia Weber - ChairSturgeon Bay Visitor Center & Door County YMCARoger Kinnard - Vice-ChairDC Manufacturers Assn & Therma-Tron-X

John Severson - TreasurerAnchor Bank

William Chaudoir - SecretaryDoor County Economic Development Corporation

DirectorsDan AustadCounty of Door

Joseph InnisSouthern Door County School District

Will JeanquartCounty of Door

Steve LaLuzerneAmbient Homes

Robert StarrDC Board of REALTORS & ERA/Starr Realty

Greg Stephan Door County Visitor Bureau & Associated Bank

Peter TrenchardVillage of Sister Bay

Thomas VoegeleCity of Sturgeon Bay

Ex-Officio DirectorsRob BurkeUW-Extension

Robert KufrinVillage of Sister Bay

Robert LossNortheast 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 Business Retentioncommittee volunteers regularly conduct confidential interviews with adiverse group of local manufacturing, service, construction, retail andtourism businesses to thank them for doing business in the County andto assist them in resolving any issues constraining their growth.

In late 2006, the DCEDC Business Retention Committee began usingExecutive Pulse, an on-line business retention data management system.Economic development organizations and technical colleges throughoutNortheast Wisconsin are using Executive Pulse to track and manage thedata collected in interviews with corporate leaders. The Executive Pulsesystem allows for local and regional reporting, including aggregate trendanalysis, comparative jurisdictional analysis and predictive reports.

During 2008, DCEDC staff and Business Retention committeevolunteers conducted interviews with 23 area firms, representing2,325 employees. Results from those interviews are excerptedbelow to give a general impression of the Door County economicclimate, as viewed by the business leaders of our community.

• 92% of employees are residents of Door County;• 95% of area companies see employment either increasing or

staying the same;• 40% plan to hire additional employees within the next year;

• 70% rate the quality of the local workforce as Goodor Excellent;

• 81% rated housing in Door County as Good or Fair;

• 95% rate the recreational and cultural amenities of Door County as Good or Excellent;

• 68% rate economic development in Door County as Good or Excellent;

• 78% rate K-12 education in Door County as Good or Excellent;

• 100% rank the Internet as Important or Somewhat Importantto their business;

• 81% rate local telecommunications services as Good or Fair;

• 48% rate the local business climate as Good or Excellent;

• 24% rate the local business climate better now than five years ago;

• 75% forecast that the local business climate will be better five years from now;

• 77% indicate a positive corporate attitude towards the community.

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 InvestorsBecause economic development in the Door County Peninsula is good for all businesses, existing

companies are an important 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 andother initiatives designed to strengthen the local business climate. These private funds are combined with localgovernment 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

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

Baylake Bank Door County Memorial Hospital Palmer Johnson Wisconsin Public Service

Silver ($1,000 - 2,499)American Transmission CompanyAssociated BankCitizens Bank

Hatco CorporationMarine TraveliftPortside Builders

Village of Sister BayWireTech FabricatorsWulf Brothers

Alberts PlasteringAmbient HomesBayland Buildings, Inc.C&S Manufacturing CorporationFred J Peterson FoundationHoward Immel, Inc.Keller, Inc.

Kerber, Rose & AssociatesN.E.W. IndustriesNorth Shore BankPalmer Johnson Enterprises, Inc.Parcus Medical LLCPeterson Builders, Inc.

Bank MutualBaudhuin, Inc.Bay Electric SystemsBay PharmacyW. Gerald Berg, D.D.S., S.C.Bergstrom AutomotiveBissen Asphalt, LLCBraun Investment GroupBridgeport ResortCarquest of Door CountyCasperson Funeral HomeC-Clearly Window WashingThe CookeryCountry OvensDan’s Fish, Inc.DC Printing, LLCDoor County Advocate

Door County Coffee & Tea Co.Door County Eye AssociatesDoor Peninsula WineryEagle MechanicalERA/Starr RealtyFLS BannersForbes Funeral HomeForemost ManagementForestville BuildersFour Sail RealtyGoing Garbage & RecyclingGordon’s West Side ElectricHedeen FoundationHeyrman Construction Co.HTF, Inc.Idlewild Golf ClubInsurance Center of Sturgeon Bay

Bronze ($500 - $999)

Copper (under $500)

In-Kind Contributors

Jim Olson Motors, Inc.JR Vacation RentalsJust In Time CorporationKey Industrial PlasticsKurth Electric, Inc.LeFevre Tire & AutoMain Street MarketMay RealtyMcDonald’sMeissner LandscapeMurrock LandscapingNeuville Family Limited PartnershipNortheast WI Technical CollegeNorthland Steel Co. Inc.Peninsula Title (Bay Title & Abstract)PIP PrintingProperties of Door County

DoorCountyDailyNews.comDoor County Visitor Bureau

Master Care Cleaning ServicesSchenck Business Solutions

Sturgeon Bay Visitor Center

Pinkert Law FirmPioneer Credit UnionPlainfield StampingRoen SalvageStone Harbor ResortTherma-Tron-X

Pro ProductsRobert W. Baird & Co.Simon Creek Vineyard & WinerySoik CommunicationsStoneman Schopf AgencySturgeon Bay Iron & Scrap MetalTitle Services of Door CountyVan’s Lumber and BuildersVeolia Environmental ServicesViking ElectricW.E. BuildersWarner-WexelWashington Island Ferry LineWDOR-FMWitt Peninsula FordWoodrow EngineeringYoung Automotive