MONROE - Pam Christopher, director of Monroe Chamber of Commerce, laid to rest some concerns about the infant milk formula manufacturing company coming to town.
The Common Council passed a resolution Tuesday, June 18, approving the purchase of 21 acres in the north industrial park and an accompanying development agreement.
Since that time, according to Alderman Michael Boyce, citizens have expressed to him concerns about the legitimacy of the project and the principal investor Dong Han of Beijing, China. Han had been listed as the chief financial officer of an infant milk production company, Union Milk, under a Chinese investment company, Tritent, which has projects planned near Dubuque and Platteville. Union Milk projects have not yet developed as planned, missing its intent to start exporting formula by 2012.
In fact, the company "has yet to do anything," Boyce said.
Boyce noted EB5 projects, which offer visas for immigrant investors of at least $500,000 under a federal program, have been showing up in the United States with "disturbing" results. One example in Aberdeen, S.D., an EB5 project filed bankruptcy after only a year in production and left the city with $8.5 million in bonds to pay off, he said.
Boyce's concern was the City of Monroe has sold a 20-acre lot in the north industrial park for a deposit of $420,000, which would be paid back when the company fulfilled the development obligations. Without the company completing the agreement, the city would not see any increase in taxes from the project - except for that on undeveloped land.
Christopher pointed out that Han had been associated with Union Milk, having invested $1 million, but "ended her relationship" with that company, because the project was not proceeding and investors were concerned.
Han "wanted to go forward with an infant milk" project and has a new business plan, which is being completed by her attorney in Madison, Christopher said. Han also changed the name of her new company from Wonder Milk to Amlat, because Wondermilk was a name already in use in China.
The process of building a business plan has been slow because of different regulations in the different countries and of a language barrier, Christopher said.
The state Department of Agriculture Trade and Consumer Protection did not write a letter of recommendation or support for the project in June, because not enough information about the project was presented by Wonder Milk.
But "DATCP brought us the project," Christopher said. Only later did DATCP and the Wisconsin Economic Development Corporation have concerns with Tritent and Union Milk, she added.
Christopher, who works on economic development for the city through its contract with the chamber, put together a city team, comprised of Mayor Bill Ross, City Attorney Rex Ewald, City Administrator Phil Rath and then-Council President Tyler Schultz, who had worked since October to develop the relationship with Han and her project.
If there were any problems with the project, "I'm sure they would have told you," Christopher said.
"I think we did everything we could to protect the city," she added.
Boyce and Chris Beer said Tuesday that they objected to a change in the city's industrial park development agreement that was made for Wonder Milk at a Community Improvement Committee June 18, just one hour prior to the council voting on the agreement.
Projects in Monroe's industrial parks may qualify for discounted land prices as low as $1 per acre, with an approved performance development agreement ensuring a minimum constructed value of $100,000 per acre. The asking price for lots is $29,900 per acre.
But City Attorney explained at the Community Improvement Committee meeting that Wonder Milk wanted to proceed at a faster pace to qualify of the EB5 immigration program and offered put up $420,000 cash and close in two weeks.
Rights to the land revert to the city, if construction of the facility does not commence on or before 12 months and completed within 24 months of the purchase date.
The Common Council passed a resolution Tuesday, June 18, approving the purchase of 21 acres in the north industrial park and an accompanying development agreement.
Since that time, according to Alderman Michael Boyce, citizens have expressed to him concerns about the legitimacy of the project and the principal investor Dong Han of Beijing, China. Han had been listed as the chief financial officer of an infant milk production company, Union Milk, under a Chinese investment company, Tritent, which has projects planned near Dubuque and Platteville. Union Milk projects have not yet developed as planned, missing its intent to start exporting formula by 2012.
In fact, the company "has yet to do anything," Boyce said.
Boyce noted EB5 projects, which offer visas for immigrant investors of at least $500,000 under a federal program, have been showing up in the United States with "disturbing" results. One example in Aberdeen, S.D., an EB5 project filed bankruptcy after only a year in production and left the city with $8.5 million in bonds to pay off, he said.
Boyce's concern was the City of Monroe has sold a 20-acre lot in the north industrial park for a deposit of $420,000, which would be paid back when the company fulfilled the development obligations. Without the company completing the agreement, the city would not see any increase in taxes from the project - except for that on undeveloped land.
Christopher pointed out that Han had been associated with Union Milk, having invested $1 million, but "ended her relationship" with that company, because the project was not proceeding and investors were concerned.
Han "wanted to go forward with an infant milk" project and has a new business plan, which is being completed by her attorney in Madison, Christopher said. Han also changed the name of her new company from Wonder Milk to Amlat, because Wondermilk was a name already in use in China.
The process of building a business plan has been slow because of different regulations in the different countries and of a language barrier, Christopher said.
The state Department of Agriculture Trade and Consumer Protection did not write a letter of recommendation or support for the project in June, because not enough information about the project was presented by Wonder Milk.
But "DATCP brought us the project," Christopher said. Only later did DATCP and the Wisconsin Economic Development Corporation have concerns with Tritent and Union Milk, she added.
Christopher, who works on economic development for the city through its contract with the chamber, put together a city team, comprised of Mayor Bill Ross, City Attorney Rex Ewald, City Administrator Phil Rath and then-Council President Tyler Schultz, who had worked since October to develop the relationship with Han and her project.
If there were any problems with the project, "I'm sure they would have told you," Christopher said.
"I think we did everything we could to protect the city," she added.
Boyce and Chris Beer said Tuesday that they objected to a change in the city's industrial park development agreement that was made for Wonder Milk at a Community Improvement Committee June 18, just one hour prior to the council voting on the agreement.
Projects in Monroe's industrial parks may qualify for discounted land prices as low as $1 per acre, with an approved performance development agreement ensuring a minimum constructed value of $100,000 per acre. The asking price for lots is $29,900 per acre.
But City Attorney explained at the Community Improvement Committee meeting that Wonder Milk wanted to proceed at a faster pace to qualify of the EB5 immigration program and offered put up $420,000 cash and close in two weeks.
Rights to the land revert to the city, if construction of the facility does not commence on or before 12 months and completed within 24 months of the purchase date.