Steady growth predicted for 2007
BYLINE: Steve Cahalan, La Crosse Tribune, Wis.
Dec. 31--The La Crosse area's economy will experience continued steady growth in 2007, local leaders predict. For example, they look forward to continued redevelopment of the former Rowley's Office Equipment Co. building at Third and Main streets and the Doerflinger building, continued growth of the Three Rivers Plaza retail-office-condominium development that opened in 2006, completion of Kwik Trip's new commissary, and more construction in the International Business Park in La Crosse and the Lakeview Business Park in West Salem, Wis.
And their wish list for 2007 includes the start of construction on a second Logistics Health Inc. office building downtown, the start of redevelopment of the former Holiday Inn site on Barron Island and progress toward redeveloping the former Mobil Oil site.
Bud Miyamoto, Downtown Mainstreet
The first retail stores (including Kick, a women's shoe store) will open in 2007 in the former Rowley's building, noted Bud Miyamoto, executive director of Downtown Mainstreet Inc. Phil and Julie Addis bought the building in 2005 and are renovating it into retail space and apartments or condominiums. Phil Addis said he expects his project to be completed by mid- to late 2007.
Miyamoto said owner Mike Keil will continue renovating the Doerflinger building, and Miyamoto predicted service-type businesses will locate there in 2007.
Cleary Management Corp. will own the new two-story office building at 210 S. Seventh St. that's under construction and expected to be completed by the end of May. Miyamoto noted the local Social Security Administration office will occupy the first floor, and space is available on the second floor.
Miyamoto hopes Logistics Health will begin construction on its second office building in 2007. (LHI Chairman and CEO Don Weber says that could happen, and should happen by at least 2008; Weber hopes the second building is completed by the end of 2008.) "This project would stimulate continued growth in the future as the first building already has done," Miyamoto said. He noted Weber and his wife, Roxanne, have offered space for the La Crosse Community Theater as part of the second building.
Construction of the new downtown transit center should begin in 2007 and be completed in 2008, Miyamoto said. It's expected to include retail space and condominiums.
"I hope 2007 will provide some finalization to planning and design" for redeveloping the former Mobil Oil property, Miyamoto said. "I believe this is the most important project area for the continued future success of our downtown and the entire city," he said.
Streetscaping projects are expected on Sixth Street between King and Cass streets, and on blocks around the transit center site, Miyamoto said.
And the Riverwalk will be extended again when a second LHI building is constructed, he said.
James Hill, La Crosse Area Development Corp.
"I think it will be more of the same, continuing to build," with moderate growth, La Crosse Area Development Corp. Executive Director James Hill said of the local economy in 2007.
"This year has been a good year, and I think 2007 will be very much like that."
Hill said interest rates apparently will be stable and might decline slightly. "That's always a big signal for investment," he said. "Companies in general in the La Crose area I think are doing pretty good overall."
Projects that Hill anticipates seeing built in 2007 include River Steel Inc.'s steel fabrication facility in the Lakeview Business Park in West Salem, Wis. (its French Island facility will remain open), and Custom Metal Fabricating's new facility in the La Crosse International Business Park. Identity Works recently started work on its new facility in the Lakeview Business Park.
Hill predicted other companies will build in the two business parks in 2007. And he hopes to see construction in 2007 in a planned business park in the Town of Holland.
Hill said he hopes a proposed Center for Manufacturing Excellence is built in 2007 in the La Crosse International Business Park. It's planned as a regionally focused and quick-response manufacturing training and entrepreneur center. The center will serve as a place for companies looking to use collaborative efforts to conduct training and/or develop new product lines and bring those products to market.
"We're negotiating with a couple companies that could possibly be anchor tenants in there," Hill said of the center.
On Dec. 20, LADCO unveiled its new Iconic Images of the La Crosse Area marketing campaign, which is just beginning. It includes photos that prospective businesses will associate with the area, such as the twin bridges connecting downtown La Crosse with Barron Island. "And we see it as something other companies could use for their own purposes, either as a marketing tool or as a recruitment tool for workers," Hill said.
Dave Clements, La Crosse Area Convention & Visitors Bureau
"I think we'll see a little bit of growth" in tourism in 2007, said Dave Clements, executive director of the La Crosse Area Convention & Visitors Bureau.
"Overall, 2006 was nice," Clements said of tourism. "Early on it, it was shaky. But the shot in the arm came July through October, and kind of leveled everything out. I think it turned out to be a pretty decent year."
Economists seem to be "cautiously optimistic, like I am" about the economy in 2007, Clements said. "Unemployment is holding pretty steady." Home heating costs can influence tourism spending if they're high. "We've been pretty fortunate so far this winter" with relatively mild weather, Clements said.
The Blue Angels' appearance will boost attendance at this year's Deke Slayton Airfest, Clements predicted. Airfest has been moved up to May 19-20, instead of the usual Fathers Day weekend in June, to land the performance by the famed Navy flight demonstration squadron.
Clements also is pleased the Delta Queen Steamboat Co.'s big boats are scheduled to make 14 stops in La Crosse in 2007, up from only two in 2006. All three steamboats -- the Delta Queen, Mississippi Queen and American Queen -- will visit the city.
"Conventions will be about the same (in 2007) as this year," Clements said. "Hopefully in 2008, we'll start to see the number going up again." He and La Crosse Center Director Art Fahey and their sales staffs have been working hard to attract more conventions, which usually are scheduled a few years in advance. LACVB staff members also are working to increase motor coach visits to the area.
Clements also would like to see a site chosen in 2007 for a viewing stand for watching eagles and other wildlife, along the Mississippi or Black rivers. But it might not be built until 2008.
And Clements said he hopes to build on the "girlfriends weekends" promotions that made their debut in November, and attract more visitors to La Crosse next November.
Dick Granchalek, La Crosse Area Chamber of Commerce
The La Crosse area's economy probably will continue its "solid, stable progression" in 2007, said Dick Granchalek, president of the La Crosse Area Chamber of Commerce.
He noted Kwik Trip is expected to complete its new commissary this year, and Chart Industries has been expanding its industrial heat exchangers plant in La Crosse.
Granchalek predicted Logistics Health Inc. will continue to add employees, and he hopes an agreement is reached soon between the company and the city on a parking ramp that must be built if a second Logistics Health office building is to be constructed.
"I think we'll see the theme of solid and stable continue," Granchalek said of the number of retail stores in the area. He said he has heard of prospective tenants inquiring about planned redevelopment of the former Wal-Mart discount store site in Crossing Meadows shopping center in Onalaska, Wis., but he had no prediction whether new buildings will go up at the cleared site in 2007.
The local real estate market seems to be "pretty solid," and that is likely to continue, Granchalek said. New-home construction seems strong, although builders seem less likely to build speculative houses than they were a year or two ago, he said.
Health-care employment will continue to increase in the area, Granchalek predicted.
In September, the chamber purchased four homes on the north side of La Crosse Street, east of Seventh Street, for a planned new chamber office building. The vacant buildings will be torn down soon because of liability concerns. The chamber will conduct a fundraising campaign for the next two years, and the new building may be built in 2009, Granchalek said.
It also may include offices for Downtown Mainstreet, LADCO and the La Crosse Area Convention and Visitors Bureau.
Bill Brockmiller, Department of Workforce Development
The La Crosse metropolitan area's unemployment averaged 3.9 percent for the first 11 months of 2006, down slightly from 4 percent for the same period a year earlier.
It's likely to average 3.9 percent for the first 11 months of 2007, predicted Bill Brockmiller, regional labor market analyst in La Crosse for the Wisconsin Department of Workforce Development.
Brockmiller said the average local unemployment rate for the first 11 months of 2006 was slightly lower than a year earlier mostly because of a smaller labor force most months. The labor force is the number of employed people, plus the number of unemployed people actively looking for work.
In 2007, he said, "The labor force will either stay the same or slip slightly."
Since last spring, local retail employment has been down from the same time a year ago, Brockmiller said. He attributed that to higher gasoline prices and interest rates, which translates into less discretionary income.
The number of retail employees in the area declined from an average of about 9,000 in the first 11 months of 2005 to an average of 8,600 for the first 11 months of 2006. "I think we'll make up some of that (decline) but maybe not all of it" in 2007, Brockmiller said.
The number of health services employees in the area rose from an average of 13,200 for the first 11 months of 2005 to 13,600 for the first 11 months of 2006. "We'll continue to pick up employment there, probably another couple hundred" in 2007, Brockmiller said.
The number of manufacturing employees in the area rose from an average of 9,400 in the first 11 months of 2005 to an average of 9,500 for the same period in 2006. "It will continue to hover around the same number," Brockmiller predicted.
Employment at professional and business services grew from an average of 6,600 for the first 11 months of 2005, to an average of 6,800 for the same period in 2006. Brockmiller predicted that will increase in 2007, probably to about 7,000.
Mark Johnsrud, mayor of La Crosse
The local economy will continue to grow in 2007 but probably at a slower pace than in 2006, which was "a fantastic year for the city," Mayor Mark Johnsrud said.
He expects a slower pace in 2007, mostly because of a slowdown in the national economy.
Some major projects Johnsrud anticipates in 2007 are the start of construction on a transit center, a development agreement for the former Holiday Inn site on Barron Island, and construction of a parking ramp to help ensure Logistics Health Inc. builds a second office building next to the one it opened this year.
"The transit center I think is going to be started this next year if we can come to terms with the Gerrards," Johnsrud said. "Our hope is that it's started in 2007 and completed in 2008." The transit center would include a bus terminal on the first floor, parking on the second floor and condominiums on two upper floors.
Johnsrud said he hopes an agreement is reached soon with Progressive Designs of Waunakee, Wis., which wants to redevelop the former Holiday Inn site, which is owned by the county. He hopes construction will begin in 2007 on the first phase, about 98 condominium units.
City officials are having discussions with The Company Store officials about relocating their nearby call center, and with Jay Hoeschler about his nearby property, to make room for additional phases. Last spring, Progressive Design proposed second and third phases including a restaurant, retail space, offices and more condominiums.
Johnsrud said he hopes to see a mid-priced restaurant open in Three Rivers Plaza on Copeland Avenue.
Three Rivers Plaza co-owner Paul Borsheim said he, too, would like to see such a restaurant. His company, Northside Development of La Crosse LLC, recently bought three properties just to the north -- now occupied by Parr's Cars and by Psycle Werks and formerly occupied by the Chameleon Club. A restaurant probably would require all three properties, he said.
If construction work begins for a restaurant, it would be toward the end of 2007 at the earliest, Borsheim said.
Borsheim said the development's 44-unit condominium has been completed, and the first occupants moved in during early December.
The renovation of and addition to the former Buchner office building (recently renamed the Spencer building) will be finished by March 1, he said.
Steve Cahalan can be reached at (608) 791-8229 or scahalan@lacrossetribune.com.
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