CALUMET COUNTY REVOLVING LOAN FUND COMMITTEE MEETING MINUTES
Monday, December 19, 2005
4:00 P.M.
Members Present: Ray Brock, Chester Dietzen, Ray Mueller, Tom Scheuerman, and Diane
Thorson
Also Present: Tim Buechel, Co-Owner of Buechel Stone, Scott Buechel, Co-Owner of Buechel
Stone, Matt Hall, Chief Financial Officer for Buechel Stone, Pam Captain, Corporation Counsel,
Dan DeBonis, Finance Director, Ken Pabich, County Planning Director, Bill Craig, County
Administrator, and Diana Schultz, Economic Development Specialist
The meeting was properly announced. The Pledge of Allegiance was recited.
Moved by Chester Dietzen and seconded by Diane Thorson to approve the agenda. Motion
carried unanimously (5-0).
Minutes for the May 25, 2005 Revolving Loan Fund Committee were deferred to the next
Revolving Loan Fund Committee as minutes were unavailable at the time of the minutes due to
transition of files from former RLF Administrator Jerry Braatz to Economic Development
Specialist Diana Schultz.
Public Hearing: The public hearing was called to order by Chairman Brock at 4:03 p.m.
a. Present CDBG information: Diana Schultz introduced the project. She explained that
Buechel Stone requested $1,000,000 from the State Department of Commerce
Community Development Block Grant Program for the purchase of equipment. Details
of the project include approximately four million dollars of expenditure for a building
and equipment. The project will generate 112 jobs that will on average pay
approximately $13.00 per hour with benefits. She invited Matt Hall to describe the
details of the project.
b. Discuss Buechel Stone Corp Project and Application: Mr. Hall explained that Buechel
Stone had been planning the project for approximately two years. There has been a high
demand for labor in the quarrying industry, so Buechel is moving toward automation to
in part attract a higher trained employee and to reduce the number of workman’s
compensation claims.
Chairman Brock asked if the project were solely equipment.
Mr. Hall explained that the majority of their expenditures on the project will go to the
development of a 62,000 square foot building that will house equipment and office space.
Chairman Brock asked if there would be additional quarry expansion
Mr. Hall stated that there would be no further quarry expansion as it relates to this
project.
Mr. Scheuerman asked where the site was and to explain the product line.
Mr. Hall explained the difference between dimensional building stone and aggregate.
Dimensional stone requires less blasting and gentler blasting than an aggregate quarry.
They do buy some stone from around the country to fill out their product line. Much
comes out of their quarries. He invited the committee members to review the floor plan
with him.
Mr. Tim Buechel explained that their market was within a 500-mile radius, but that they
do ship to across the United States and overseas. He stressed the importance of a lean
operation, where costs are kept low, in a global economy. Marketing is strong point for
their company. The processes that Buechel will be implementing are not currently done
in their industry.
County Administrator Craig asked if the company had brought along any advertising
material and that he had seen an episode of “This Old House” featuring Buechel Stone.
Mr. Tim Buechel stated no he had not brought along any marketing materials and that
Buechel Stone is often featured on “Home Time” that a competing company with a
similar name may have been featured on “This Old House.”
Mr. Mueller asked about the new facility and equipment and process will it allow them to
increase production and by how much?
Mr. Hall responded he could not provide exact figures, but yes it would.
Mr. Tim Buechel stated that it was hard to estimate because it is a new process. The
equipment that they will be using will remain the same and only so much stone can be
pushed through that equipment. They monitor output per individual at the machine. The
equipment will be more ergonomic and user friendly.
Mr. Mueller asked for a more detailed break down of the employment and if it included
numbers for trucking.
Mr. Hall responded saying that approximately 95% of the jobs created would be in
production. The trucking company is a separate company and not included in the
application; however, those numbers would increase as well with the increase in
production. Buechel attempted to be conservative in their employment numbers when
applying to the state, so they can fulfill the CDBG requirements.
Mr. Hall again invited the committee to review the plans of the proposed project.
Mr. Hall explained the site plan.
Mr. Tim Buechel explained that an additional stormwater pond was constructed on site.
Ms. Thorson asked if the existing saw shop would remain.
Mr. Buechel responded that it would remain.
Mr. Hall explained that there would be two intakes into the building, two machining areas
for small and large stone processing, storage area, a packaging area, two employee areas,
and offices. The central location will allow Buechel to consolidate operations that are
being done at other facilities in Chilton and Oakfield thus reducing employee handling
time and costs and transportation time and costs and increasing efficiencies.
Mr. Hall also explained that there are currently 300 employees employed by Buechel.
Ms. Thorson asked if the additional 112 employees would be located at this facility.
Mr. Hall responded yes.
Ms. Thorson asked for the breakdown of costs between building and equipment.
Mr. Hall explained that the breakdown is 2/3rd-1/3rd between building and equipment.
Chairman Brock asked for the breakdown of local versus non-local employees.
Mr. Hall stated that a number of people that worked at the Chilton location were from the
Chilton area. Their goal is to attract higher skilled employees to the area with this project
and by making the jobs less physical and more mental. He said their employees are
highly skilled craftsmen now, but the conditions are tough.
Chairman Brock asked if a training program was being developed for those employees
that will transition to the new positions created by this project.
Mr. Hall responded yes that Buechel is developing a training program.
Mr. Dietzen asked if one of their machines was a CNC.
Mr. Scott Buechel responded that one of their machines was a CNC.
Mr. Mueller asked what the timetable for the project was.
Mr. Buechel responded approximately July of 2006.
Mr. Mueller asked if there was any groundwater pooling on the site and asked if the
quarry was pumped.
Mr. Tim Buechel said that Buechel follows federal and state regulations for ground water
and stormwater.
Mr. Mueller asked if there was a reclamation plan on file.
Mr. Buechel stated that plan was completed as of June 2005.
Ms. Schultz stated that reclamation plan was on file in the planning office.
Mr. Scheuerman asked if the building was being built in two phases.
Mr. Hall stated no. Equipment purchases would be done in two phases.
c. Citizen Input: No citizens were present at the public hearing.
Moved by Mr. Mueller and seconded by Mr. Scheuerman to adjourn the public hearing at 4:33
p.m. Motion carries unanimously (5-0).
Community Development Block Grant for Economic Development Resolution for Buechel
Stone Corp.: Moved by Mr. Dietzen to approve the request and seconded by Ms. Thorson.
Motion carries unanimously (5-0). Moved by Ms. Thorson to forward the Community
Development Block Grant for Economic Development Resolution for Buechel Stone Corp to
County Board. Seconded by Mr. Mueller. Motion carries unanimously (5-0).
Communications: There were no communications presented to the RLF Committee.
Update the Community Development Block Grant Citizen participation Plan to Replace
the New Holstein Reporter with the Tri-County News: Ms. Schultz explained that the New
Holstein Reporter was no longer in publication and that the Tri-County News has replaced it in
the market. The Tri-County News is also used by Calumet County for publishing notices.
Moved by Mr. Mueller and seconded by Ms. Thorson to approve the replacement of the New
Holstein Reporter with the Tri-County News.
MVP Farm Updates: Ms. Schultz reported on:
a. Holsum: Ms. Schultz stated that Ken Buelow at Holsum Dairies reported that they are
operating at 3,800 cows and are planning a second 3,800 cow operation in the Town of
Chilton. Ms. Schultz added that Holsum would not be able to receive another Milk
Volume Production Loan from the State Department of Commerce for the second farm.
b. Kohlman: Ms. Schultz stated that Jeff Kohlman will be operating at 300 cows by March.
c. Shiloh: Ms. Schultz reported that Gordon Spears will be operating at 1,000 cows by
February.
RLF Loan Updates: Ms. Schultz reported on the following:
a. SDF Strapping: Ms. Schultz reported that SDF Strapping was going to be expanding
within the next 3 to 6 months to 15 to 17 employees based upon results of testing of a
secondary strapping material developed for a major customer. Ms. Schultz met with Ed
Dever, Denny Hillard, and Wisconsin Department of Commerce Area Development
Manager Dennis Russell in regards to Commerce programs that could be utilized to help
with expansion. Commerce programs suggested by Mr. Russell were the Technology
Zone Tax Credits and Customized Labor Training grant. In addition Mr. Russell
suggested that the Calumet County Revolving Loan Fund and the City of Brillion
Revolving Loan Fund be utilized for additional support. Financials for the company will
be received December 28, 2005 when Ms. Schultz meets with Mr. Dever in regards to the
financing programs through Commerce and the County.
b. Stone Toad/Weinandt: Ms. Schultz stated that the Stone Toad is up and operational.
She said she visited in early December and found the restaurant busy, the prices
reasonable, and the food of good quality. She also reported the Mr. Weinandt reported he
had hired all employees to meet the loan requirements. The restaurant has been
operational since August and opened near to on time. An issue between the City of
Menasha and the DNR in relation to the sewer and water pipes and wetlands disturbance
was resolved in a timely manner.
c. Top of the Ledge Campground: Ms. Schultz reported that Top of the Ledge
Campground is operational. The clubhouse, pool, and campsites were developed. Mr.
DeBonis reported that Mr. Kleinhaus had stopped in the week before the meeting to
discuss the purchase of a vehicle. An additional $1600 or $1700 is left to be spent on his
loan. Financials through October 2005 have been submitted.
d. Village Wine and Liquor: Ms. Schultz reported that Jeanine Christie-Karls is very busy
this Christmas season. She has a side business of putting together gift baskets to generate
foot traffic. In addition to the gift basket service she has she cross markets with a jewelry
store and is a drop off site for dry cleaning. Financials for the company through 2004 are
on file.
RLF Financial Update: Mr. DeBonis passed out two budget summaries. The first was an
overall summary report. The balance for the RLF as of September 30, 2005 was $151,279.28.
The second report was a delinquency report through December 2005. Should the Buechel Stone
CDBG application be approved by Commerce the RLF can expect an additional $120,000 a year
in income, which would make the Economic Development Division nearly self sufficient. Mr.
DeBonis also passed around materials from the Venture Center at the Fox Valley Technical
College detailing their expanded business development series. Ms. Schultz refers start-ups to
this service.
Revolving Loan Fund Inquiries: Ms. Schultz stated that the number of inquiries since April
has been thirty-eight inquiries. Of the thirty-eight inquiries only three have met the requirements
of the Revolving Loan Fund Program. The three that have met the requirements are a health club
in Chilton, a restaurant in Chilton, and a restaurant in New Holstein. Many of the other inquiries
have been to create employment for themselves, which meet the criteria of the program, but in
which further business development skills are necessary. These business owners have been
referred to the Venture Center or for one-on-one counseling with Ms. Schultz or Mary Kohrell in
the UW-Extension office.
Next Meeting Date: The Committee decided to leave the next meeting date to the discretion of
Ms. Schultz.
Approval of the Closed Session Minutes of the May 25, 2005 Meeting: were deferred to the
next Revolving Loan Fund Committee as closed session minutes were unavailable at the time of
the minutes due to transition of files from former RLF Administrator Jerry Braatz to Economic
Development Specialist Diana Schultz.
Adjournment: Moved by Mr. Mueller and seconded by Ms. Thorson that the December 19,
2005 RLF Committee meeting by adjourned at 5:13 p.m. Motion carries unanimously (5-0).
Respectfully submitted,
Diana Schultz
Recording Secretary
These Minutes Were NOT APPROVED
By the Revolving Loan Fund Committee