The Rich get Richer!
The City is giving Duffeks 20 acres in the Industrial Park Area. One of the wealthiest families in this town and they cannot afford to buy thier own land to build on? They sell out their old business to an out-of-town company that drops long time employees pay to $10 an hour… Like it or leave. Now, they need to build a new plant for their rock crushing/sand/gravel, and the City bends over so they will “stay here”?? Gimme a break!!
…
I was a little surprised at the duffek comment.The big picture is they employ alot of people with a liveable wage.Thats more than most do in our community.Mabey we should continue to grow crops in the industrial park.The city should work better with the local people thats were true growth will occur.As for the writer of the duffek comment mabey they should start there own business and see whats it like to have a payroll im pretty sure they dont have a clue.
I understand both comments above. Duffek employs a lot of people in this community but what about all of the other businesses going under in this town. Is it partially because of something the county is doing? High taxes or what? Why aren’t they stepping in to help those businesses? K-Mart, Festival Foods, Kretz’s, Brunswick? Those were a lot of jobs lost in this community. Is Duffek “Only” going to hire Antigo residents? How many’s last name will be Duffek? I’m scrimping every day making $9/hr and that business doesn’t look so hot either. Don’t you think if the person who submitted this blog had the money to start a business, he/she would? The Stimac name is known in this town too, so it is doubtful that your heat bill and electric bill are months past due. How many disconnection notices are in your mailbox? Are you shoveling your “driveway” in 20 below weather with a shovel or are you privileged enough to own a snow blower? or sorry, a brand new pickup with a snowplow. Every person in this town knows that money talks here. Well, money talks everywhere. If only I could afford a pair of shoes that my toes weren’t sticking out of. Oh, if only I could find a decent paying job. Oh, if only my last name were Duffek.
Its amazing that after receiving a large check for the company, that Duffek can’t spend their own money on relocating one division of that. The sand and gravel(crushing) business is only so big and if Duffek didn’t run it, then somebody else would. The city has made uncountable bad decisions and yet we are forced to pay taxes that support their BS. If I could withdraw my property from this city and start my own township I would. I could provide my own septic and water and contract out plowing to my house for much less than my tax bill. What a waste the city government is.
I love when these middle aged overweight waterheads take the time to bash buisnesses in the community …like it’s there fault you have holes in your shoes quit depending on everyone else for once in your life and get a real job one that you actually make a lil change at instead of taking orders at Mcdonalds
YOU people have to realize that these kinds of things that are happening around this town… is because we are a small community and do not have the resources that “bigger” communites have….duh… This is pretty much a “family owned” town… if you cant see that then open your eyes!.!.!.
I’m sorry Homes. All I hear is…”Blah, blah, blah”.
By the way, I don’t have a problem with the businesses in this area and I know Duffek’s are obligated to pay the city back over time. But this isn’t a few thousand dollars we’re talking about. We’re talking about $1.5 million, from what the paper said. Doesn’t anyone think that there are better ways for the city to spend that amount of money? That’s not pocket change and won’t be paid back for quite some time…even for Duffek’s. And then someone in this city is responsible for not allowing “decent” paying jobs to come in. I’m not blaming businesses for my shoes or anything else but I put some blame on the city. I’ve heard of several well-paying businesses wanting to come in but can’t . That’s where my problem is. If we’re such a “family” oriented town then even the underdogs should be considered. There’s nobody working at McDonald’s here, but I know some that have college degrees that work there and other fast food places because there isn’t much else to choose from. So I’m sorry for those that can’t handle my “opinion”. I’m not saying it’s right or wrong. It’s just an “opinion”.
I think that if you have a college degree and are working at McDonalds because we are limited on jobs then you have problems. You would never see me having a college degree and working at McDonalds.. I would end up moving somewhere where that degree will be useful.
Vincent CG, I couldn’t agree more!!!
And jane doe, your are absolutely right about this not being a “bigger” community, but yet many community decisions are being made as if it was. And I don’t think that’s right at all. For the tax payers to take on a larger burden so we can keep up appearances is stupid.
And lastly, with the economy being as crappy as it is, there are going to be a lot more people working at Mcdonalds and the like, because the job market is tough for skilled and unskilled workers. I don’t care where I have to work as long as I can support my family. If that means flipping burgers or scrubbing toilets…so be it.
The city is giving Duffek’s a loan, which is 1% over what they are loaning the money for. Therefore, the city is making money on the property and the loan. It also puts land to use that has been sitting vacant. Sounds look good business for the city to me. I don’t see where this could hurt the taxpayers.
Everyone says that want more jobs in the city. More jobs have been created with this entire transaction. Hopefully County Concrete doesn’t screw over its employees and we now have another industrial site put to use with more jobs created than if Duffek’s would have stayed at their other site.
How many jobs can Duffek create there? Unless they can create 30 or more jobs, then 1.5 million is a horrible investment. Hell, I can use a loan to start up a mouse trap repair shop or maybe sex toy factory. Why doesn’t the city finance every resident with a pipe dream at 1%? Banks use an interest rate that actually creates money beyond the rate of inflation. Factoring inflation against the 1% loan, the city will lose money over the term of the loan. Its people like you that ruin our city, When I read the article in the paper about the “free” park being costructed without tax dollars I laughed aloud at the idea. On Wensday afternoon, I watched 8 city employees with an end loader provided by tax dollars working on this “tax-free” park. If you can afford to be so liberal with my tax dollars, I would like you to pay my tax bill.
I work for a small family owned business in this communittee and watch my boss struggle constantly to get good employee’s. People want and take and want and take but the fact is that very few want to actually work for it and even fewer have good work ethic’s. I don’t make a ton of money but I have worked for many years to get the pay I get now, but the key is I worked for it! I don’t make what others may make is my fault because I didn’t take the time to continue my education with a college degree. The fact is if you are willing to work there are jobs out there!
As far as the family names in town like Duffek, they have their businesses and names because they WORKED for it. Instead of being ridiculed because of their names they should be applauded for making something for themselves and keeping their business in our communittee.
1.5 million dollar loan…at 1% over what the city gets the money for=$225,000 in profit for the city over a 30 year period. The city doesn’t have to do anything, it just fronts the money like a bank. It is not a bad investment, it keeps a profitable and business that has shown its intention to remain long term on the books. This is a good investment. The loan itself is not for 1%.
The silly lights along 5th Ave from Superior St to the hosptial that you can’t see at night anyway because the regular street lights drown them out were a stupid investment and a waste of money. Putting lights on the Hudson St bridge is a waste of money. Using the city employees and equipment to build a “tax free” park is also a waste of city money.
Keeping businesses that employ people at a reasonable wage is good for the community, especially when it involve taking over land that was not being used before.
Thank you for saying I am here to ruin the city. The city needs to spend money on its infrastructure, to encourage development, and beautify the city. We can only trust the people we vote on to run the city are doing it in what they believe are our best interests. Hopefully the Mayor has educated himself in talking to other mayors, attending seminars and training to see what has worked for other communities. Are community is losing people because there are few well paying jobs and because there is nothing for people to do besides waste their money on beer. My suggestion would be that if you have ideas and education on how to spend the city’s money, run for the city council…or mayor. By the lack of interest in the positions, I would say the city is infested mostly with naysayers and armchair quarterbacks. Everybody knows what the city should not do, but those same people have no good ideas on what to do.
I welcome you to start up a sex toy factory, I’ve heard it is such a long drive to find good toys! Maybe the couples in this town that can’t afford to have children would buy them instead of creating more children to go on welfare and increase your taxes even more. I’m sure if you had a good business plan, which would include the creation of jobs, the city would be more than willing to help you with your endeavor to pleasure yourself.
yeah it is hard to believe what is happening with duffeks. and also getting a good jog is a joke. i move from a bigger city to come and get a 6.50 job cause thats all i can get even with my great resume. fact is no one want to pay the people to work so why work when u can collect welfare. i personally cant afford to drive to a surrounding area for a job, i have two kids i have to also fit into my daily routine. i think this town wastes more money on things, its crazy. if u can get all the donations for a train that just sits there, why cant some of these big spenders give to a playground for kids. and i will add that it now sits on contaminated land, with a 5-10 foot drop at the crick, and is in the neighborhood of a few sex offenders, like this is where i want my kids to go and play. get a new mayor and city officials maybe we can turn this town around with improvement.
“1.5 million dollar loan…at 1% over what the city gets the money for=$225,000 in profit for the city over a 30 year period.”
If the lowest rate of inflation is 3%(inflation for the past 12 mo. is closer to 12%) the city is losing a fortune. If the city was creating new jobs(to generate revenue from property tax) to keep the local housing market afloat, I could suport the loan. This situation is a loss in easy terms of black and white. Unless the jobs created will actually help bring in enough tax revenue to double the loan amount, its a losing idea. The city has a track record of backing bad business ideas. The Edison Club and the scrapbook store are two fine examples of money well wasted.
Sorry Tinker, you’ll never find a place that doesn’t have sex offenders somewhat close by. Sad but true!
The lowest rate of inflation within the past twelve months 1.97% in August of 2007. Since 2000 it has fluxuated between 1.07% and 4.31% (inflationdata.com) and changes quite a bit monthly. Where you made 12% up is beyond me. The city will not lose any money on a loan given where more is being paid back than they are paying. Simple finances there…the only affect inflation will have is that the value of the difference will be worth less. In other words, the $10,000 owed the last month of the loan may only be worth $3,000 (for example) in today’s money 30 years from now. Nevertheless, the city is still making money. This move is creating new jobs. The old business was sold and a new one was created. Therefore the old business has existing jobs filled and the new will create new hires.
I don’t believe the city is losing any money on the scrapbook store. The owners have each taken a percentage of responsibility of the existing debt and agreed to pay the city back. Hopefully they will, it remains to be seen.
My inflation % is based on the value of the dollar vs. gold/oil prices in the gloabal market. I have nothing personal to gain either way. Wouldn’t the city benefit more by a “trickle up” plan of not spending 1.5 million of taxpayers money and letting the taxpayers spend their savings how they choose? If Duffeks company is going to be that profitable, they can get the money from the bank. Why don’t they spend some of the check from the sale of the company? If their business is that strong, they should take the risk of borrowing money upon themselves. If Duffek doesn’t sell crushed gracel, then somebody else will. If the proffit is that great, then someone else would do it.
I thought the purpose of the community loan program was to help those businesses who could not get financing through traditional methods, by offering easier qualification and a lower interst rate.
How exactly does Duffek qualify?
They were an existing, operating business that sold out to another company. From my experience in business financing, there should have been no reason why they could not have financed their own move.
It just took more finance options away from the smaller business start-ups. No wonder the town is dying!
And financing a 30 year loan at 1%?? There is a reason financing comes with a 5 or more % rate…it’s to make a profit after factoring in all the variables. A $225,000 return over 30 years is a joke.
It doesn’t affect the taxpayer’s savings, it doesn’t come from the city’s savings. From the ADJ on 03-21-08:
Debt financed through the tax levy totaled $8 million at year’s end, representing 44.27 percent of the city’s allowable level of borrowing.
“That is under the average for A rated credits,” Belongia said, suggesting many communities are at 50 or even 60 percent or higher of their allowable debt.
The Dec. 31 debt schedule lists two industrial projects backed by bond anticipation notes—$1.825 million loaned to Volm Bag Company and $1.79 million to a combination of Super Group, Fallon Neon and Wetterau Wood Products, all to assist with industrial expansions and improvements.
Since then, the Common Council has earmarked $1.525 million to Duffek Sand & Gravel to assist with that longtime industry’s relocation to the city’s northside industrial park.
Using the city’s bonding authority allows the industries to gain the funds at a lower interest rate than would be available privately. They are repaying the city at a rate 1 percent higher than the city is borrowing the money at, with the extra dollars funding community development activities.
To date, the program is working well, officials said.
“The city has taken a verypro-active role in assisting companies within the community,” Belongia said. “They have been able to provide a lower interest rate and the companies are paying the money back.”
In his experience as a municipal financial advisor, Belongia said he has seen many communities borrow dollars for similar projects, both at the utility level and to help industries.
“These are all very typical things a city would undertake to provide services to their communities,” he said. “They are creating assets.”
So, for the third time they are not financing a loan at 1%, it is 1% over what they are getting the money for. They are offering the loan at a lower rate than they could get at a bank. Whatever joke you think the profit is, I would rather have the city making $225,000 over 30 years (I really don’t even know if the loan is that long, I just used it as an example) than getting a loan from an out of town bank. I don’t know where the money went from the sale of their company, but I am sure some of it went towards existing debt. I don’t believe the program has anything to do with businesses that can not get any financing through traditional methods. I do believe they have easier qualifications.
Why so negative? The city is making a positive cash flow move to improve the value of the city and maintain jobs. If you don’t like Duffek’s, fine. I don’t know them, I don’t care. The city is doing what it feels is best fort the city in the long run. More jobs+increased land value+profit from a quality loan =good decision.
If you think a 1% return on your investment for someone who “doesn’t have to do anything”(except assume all the risk) is a good idea maybe you should get in on the program.
There are hundreds of people in this community who would like to expand their business or start a new one, but can’t get past the commercial lending phase (standard commercial terms are 20-30% down, while financing the rest at 10-20% over the term of 20yrs for buildings and property, 5, 7 or 10yrs on equipment.). Most of these people don’t have the resources Duffek’s have (meaning the reputation, recognition, or cash in hand from a recently bought out company), to make the first steps.
Maybe you should put your money where your mouth is and start using your hard earned dollars to finance business in the community with a 1% return. I guarentee you will run out of money long before you run out of people with good sound business plans seeking financing.
I own 2 businesses, I know what the terms are and yours are slightly inflated. I have never been quoted a 20% APR on any loan that I was seeking or have to put 20-30% down. 10% is not out of line, but 20% is. You can see why the program is good for businesses, I’m sure the city is giving them the loan for way under 10%. This is good for the economic development of the city. It is not all about making money, but it doesn’t hurt that the city is making the 1%. My guess is that not a lot of businesses have tried to go through the city. How many people have been turned down? I don’t know that answer, but I hope the city is not just giving money to established businesses. The city is not just making money on the 1% difference in the loans, it is making money on the taxes on the property. Taxing land with 1.5 million in value is much better than leasing out the land to someone to use.
My guess is that the hundreds that want to start a business have not even tried to get the assistance from the city. There are other businesses besides Duffek’s, Merit Gear and such that have been given loans to start a business or make improvements. The only person I know of off hand that has been denied is Stimac.
Once again, why so negative?
I am sure that rates will vary slightly based on several variables, including credit scores, business scores, type of business and when the loan was issued. The terms I used are the terms I was recently quoted by five different financial institutions, regarding busines start up. I am also aware that my current terms, my other employers terms, and my business associates terms are all very similar. I am glad you could finance on better terms, ignorant, as not everyone can.
In theory, the program is a great idea and I am sure it was created for the reasons you stated, but I feel it could be used in better ways. I would like to see the program used to back people of lesser means. I would like to see locals using it to help get a dream off the ground, not the biggest businesses in our community using it to save money. Like I said before, the people you yourself listed, have an existing profitable business and there is no reason they could not use conventional means to finance themselves.
Not to mention the fact, that regardless of what the return is, the city assumes all the risk on these loans. If the loan is defaulted on, the city still has to pay the money back. If the business closes, they are still responsible for the loan, but without the business how are they generating the payments?? (I think that’s what Vincent CG ment when he mentioned the scrapbook store and Edison club). A 1% return isn’t big enough to compensate the city should a loan not go as planned. For example, if the scrapbook store doesn’t honor it’s future payments, is the 1% on Duffek’s enough to make up for it? If you factor in all the loans the city has made, current and in default, is it worth it or is it costing us money?(I am not implying any of the people mentioned above are not making their payments, this is just an example!)
I just don’t think the city should be playing banker. There are plenty of other things the city should be focusing on.
I would also like to see the city focus on bringing in quality, paying jobs. Financing things like the Edison Club and the scrapbook shop don’t do much for the city except fill up empty buildings. A large scrapbook shop was probably not the best idea, a smaller one may have worked.
Another thing the city has to be careful of when giving big breaks to industry is what is going to happen with the factories a few years down the road when the breaks they have given them are done. I think Spartanburg, SC is seeing major problems with this. They brought in a ton of industry, but a lot of it has left (including Waukesha Bearing).
The city shouldn’t be concerned with the Chinese stealing American jobs(Spartansburg’s issue). If the city should be giving out free land and 20 year property tax breaks to any industrial plant willing to relocate here. They own plenty of industrial zoned-land that they are not generating any tax money on already. That is a zero risk way to create growth. I guess that zero risk is too easy of a concept…
Well, I for one, think that If Duffeks wanted to expand their business, why do they need to take out a loan? I for one am aware that about a year ago, both parties that own duffeks withdrew equal amount sums in the range of $100,000 dollars. One spent it on a vacation property. HMMM, Whats more important. Maybe they should have had to invest half of the loan amount from their own equity. talk about wasting money, Perry Duffek and his wife spend an average of 3 to four thoudsand dollars durring Christmas to has Hickey’s floral come and decorate their Christmas tree. Wish I had that kind of cash. Its also nice to have nice jewelry, but does Melissa Duffek really need all of those diamonds. She would probably lose a half pound if she took off the rings and necklaces. And, all tough I know that they work hard for their money, maybe instead of taking out a loan from the city, they could save their money, instead of buying extravagant vacation homes, and sitting down at BB Jacks all weekend getting drunk. What a waste.
Ok. So what your saying is if the city wants to LEND money (ie: get paid back WITH interest, that would mean MAKING money) from a company whom obviously according to the last comment has no problem making it, where do the taxpayers loose? For starters, the loan they gave them is not coming out of taxpayers dollars. I suppose, however that if they defaulted on their loan thats another story. However, like Vincent said – we have empty space, and until someone purchases a plot of land from the city in the industrial park, it will continue to be empty and baron. This is growth. They made their money the old fashion way – by offering a service that people pay for. And don’t you think it helps Hickeys out to have such a great client? At least that money is staying in Antigo…getoverit
I agree. I also don’t think attacking someone’s jewelry choice is really relavent to their business. As for what they do in their spare time, whether it be vacationing or drinking, is their choice. Not yours.
You said it!