Thursday, January 27, 2011

Tom Daykin Disclosed Tax Credit Flim-Flam For Research Park Project

I had noted recently various actions by governments that were draining Milwaukee of employers and jobs. My point was that it is hardly the unseen hand of the free market that guides the economy, planning and development.

The impetus for my commentary was the disclosure that the Eaton Corp., an old-line industrial occupant in the central city's long-depressed 30th St. corridor, was moving to a site in the Milwaukee County-sponsored Research Park located in relatively high-income Wauwatosa.

As I had written:

"Economic development in Milwaukee is being willfully undermined by other government officials and public bodies.

* Gov. Scott Walker killed the rail line between Milwaukee and Madison, thus wiping out the train assembly portion at a manufacturing plant opened by Talgo, Inc., in Milwaukee's economically-depressed 30th St. corridor. Talgo announced it will move its assembly business to a more rail-friendly state in 2102 to serve a growing US market for high-speed trains...

* The Eaton Corp, a long-time presence in the 30th St. Corridor, is said to be considering relocating to the Milwaukee County Research Park on the County Grounds in Wauwatosa. That would move 145 jobs to the suburbs and blow another hole in central city development."
Tom Daykin, the Journal Sentinel's business development beat reporter, today has begun to disclose just how outrageous that move may be, as he discovered that federal "New Market" tax credits designed to spur job creation in low-income areas are being applied to Eaton's move to Wauwatosa - -  so 145 jobs and future expansion would move the other way with this misapplied federal grease.

Expanded story, here.

This is a scandal.


Jeremy R. Shown said...

I guess we'll see how this particular case unfolds.

Isn't the larger lesson here that complex governance means more opportunities to game the system?

Anonymous said...

How can we continue to justify these deals? This is just not right!