THE GREATER BELOIT ECONOMIC DEVELOPMENT CORPORATION

ANNUAL REPORT 2011

Greater Beloit Works

The Greater Beloit Economic Development Corporation 500 Public Avenue Beloit, WI 53511 ph: (608) 364-6748 fx: (608) 364-6756 www.greaterbeloitworks.com

ORGANIZATIONAL MISSION & VISION STATEMENTS

MISSION STATEMENT The mission of the Greater Beloit Economic Development Corporation (GBEDC) is to act as the primary organization coordinating, facilitating and implementing economic development activities in the Greater Beloit area. VISION STATEMENT We will be a broad-based, public/private partnership that creates a common focus for economic development activities in Great Beloit. GuIDING PRINCIPLES GBEDC seeks to fulfill its mission by: Promoting a positive image of the area including our industries, workforce, educational institutions and quality of life. Developing regional cooperative and collaborative partnerships with public and private bodies to support the local workforce and existing businesses. Developing a diverse group of leaders to actively build on our communitys successes and continue to enhance our local economy. Promoting the growth of existing and new business to build an economic environment that will enhance our local economy. Working together to develop and recruit a skilled workforce to fill the knowledge-based needs of todays businesses and create tomorrows jobs.

FELLOW INVESTORS
A Message from the 11 Board President
Unlike many communities, Greater Beloit enjoyed a year of continued stability and growth. Through the continued cooperation of the private and public partnership that Beloit enjoys, we have had several noteworthy successes in attracting, expanding, and retaining important businesses in the Stateline area. The Greater Beloit Economic Development Corporation (GBEDC) has remained busy with many projects and I am pleased to report that our investors continue to be supportive of our efforts.

LEADERSHIP TEAM
11 Board & Committee Members
BuSINESS INDuSTRY Bill Sullivan, Chief Executive Officer Beloit Health System Clinic Division Kent Eymann, Publisher Beloit Daily News John Todd, Vice President Kerry Americas John Patch, President McBain Enterprises, Inc. Joe Stadelman, Vice President Angus-Young Associates, Inc. Pete Underwood, V.P./General Counsel/Secretary Regal Beloit Jim Zisser, Project Manager Frito-Lay Rob Gerbitz, Managing Director Hendricks Development Group Curt Lansbery, President North American Tool Corporation Tom Barnes, Real Estate Asset Manager ABC Supply Keith Kruse, V.P., Director of Operations Tricor Insurance REAL ESTATE/DEVELOPERS/ CONTRACTORS Tom Ptacin, President Klobucar Construction Co., Inc. Joel Patch, Partner Commercial Property Group, LLC Jason Houle, Principal R. H. Batterman & Co., Inc. FINANCIAL INSTITuTIONS Arlyn Erdmann, V.P. of Commercial Loans First National Bank EDuCATION John Nicholas, V.P. of Administration & Treasurer Beloit College Steve McNeal, Superintendent School District of Beloit AT-LARGE Mike Bua, Finance Director Beloit Health System Dr. Thomas Eckert, President Blackhawk Technical College Fred Buggs, Chief Professional Officer Stateline Boys & Girls Club Jim Fisher, President JBF Group LOCAL GOVERNMENT Larry Arft, City Manager City of Beloit Roger Anclam, Chairperson Town of Turtle Mike Duffy, Mayor City of South Beloit Bob Museus, Administrator Town of Beloit EX-OFFICIO Randall Upton, President Greater Beloit Chamber of Commerce Deb Frederiksen, Executive Director Visit Beloit Kathleen Braatz, Executive Director Downtown Beloit Association Nailah Adama, Representative Community Development Authority Bruce Kepner, Economic Development Specialist Alliant Energy Dan Boutelle, Plan Commission Chair City of Beloit Tara Tinder, Executive Director Stateline Community Foundation

11 OFFICERS & EXECuTIVE COMMITTEE

Chair John Nicholas Vice Chair Jim Fisher Secretary/Treasurer Ed Hansen Immediate Past Chair Tom Ptacin Business/Education Partnership Committee Co-Chair Rick Barder Business Development Committee Chair Rick Bastian Designated Loan & Finance Committee Chair Diane Gustafson Investment/Recruitment Committee Chair Keith Kruse Strategic Planning Committee Chair Joel Patch

John Nicholas, 11 Board Chair

The combined efforts of the GBEDC, Visit Beloit, Chamber of Commerce, and Downtown Beloit Association towards mutual and shared strategic goals will continue to enhance our communitys visibility and display progress that is more readily achieved through collaboration and cooperation. The GBEDC currently has seven standing committees, which are composed of many active members and volunteers. The committees are Investment and Recruitment, Loan and Finance, Business Development, Business/Education Partnership, Strategic Planning, Executive, and Nominating. It is through these committees that the mission of the Corporation is realized. Quarterly Board of Directors meetings allow the members to stay abreast of the workings of the Corporation with the Executive Committee meeting monthly. Other committee meetings are scheduled as necessary. There is a great deal of momentum and progress going on and I appreciate all of the support and encouragement I have received during my tenure as President of the Corporation. It has been an honor to serve and I hope and expect the incoming President will be afforded the same support as I have received.

STAFF MEMBERS
Andrew Janke Economic Development Director City of Beloit

11 Executive Committee Members, pictured from left to right: Jim Fisher (Vice Chair), John Nicholas (Chair), Rick Barder (Business/Education Partnership Committee Chair), Diane Gustafson (Designated Loan & Finance Committee Chair), Larry Arft (Local Government Jurisdiction Representative), Tom Ptacin (Immediate Past Chair), and Rick Bastian (Business Development Committee Chair). Not pictured: Ed Hansen (Secretary/Treasurer), Keith Kruse (Investment/Recruitment Committee Chair), and Joel Patch (Strategic Planning Committee Chair).

Diane Gustafson, Vice President M & I Bank Rick Bastian, President and CEO Blackhawk Bank Rick Barder, Retired Ed Hansen, V.P. of Business Banking Gateway Community Bank

Shauna El-Amin Administrative Assistant City of Beloit

www.greaterbeloitworks.com

11 INVESTORS
ABC Supply Alliant Energy Allied Games Amcraft Building Projects American Aluminum Extrusion Company American Construction Metals Angus Young Associates Avid Pallet Axium Foods/McCleary, Inc. Beloit Box Board Beloit College Beloit Daily News Beloit Health System Beloit Health System Clinic Division Beloit Snappers Beloit Special Machining Co. Blackhawk Bank Blackhawk Logistics Blackhawk Technical College Blackhawk Transport Budweiser Motors Business Outreach Services UW Whitewater City of Beloit City of South Beloit Coldwell Banker Commercial/ McGuire Mears Commercial Property Group Corporate Contractors Inc. Culvers Durst Electrol Specialties Company Fairbanks Morse Engine Finley/Dencker First American Credit Union First National Bank & Trust Frito Lay G. G. Grabowski CPA, SC Gateway Community Bank Despite the continuing challenging economic times Greater Beloit had a good year with several major expansion projects being and announced and some being completed by the end of the year. A few notable expansion projects include: KETTLE FOODS is constructing a 45,000 square foot addition to meet the growing demand for their potato chip products. The company is investing $40 million into their Beloit facility and will add 100 new jobs. The GBEDC was instrumental in supporting this project by providing a $200,000 Industrial Development Grant. To support the logistical needs of the Kettle Foods expansion, Alliance Development is constructing a 110,000 square foot warehouse facility. Total private investment is $4,900,000 and will create up to 10 jobs. WILD ASEPTICS completed a $6,000,000 expansion project that allowed the company to add to its production capacity. The project led to the creation of 7 new jobs. WOODMANS FOOD MARKET completed the construction to its 32,136 square foot expansion of their west side warehouse distribution facility. The project leveraged over $1,422,483 in private investment.

(INVESTORS CONT.)

THE YEAR IN REVIEW

A Great Year for Expansion Projects

11 RECAP
Projects ........................................14 New Jobs ..................................491 Total Investment ..... $334,322,483 Square Footage ................ 691,900 FATWALLET.COM moved from their Rockton, IL location in April to the former Kerry office building located at 100 East Grand Avenue. The company moved specifically to avoid the need to pay a new on-line sales tax imposed by the State of Illinois. The initial move created 54 new jobs. Later in the year the company was sold to California based Ebates.com which plans to stay in their downtown Beloit location and continue to grow and create jobs. NORTHSTAR MEDICAL RADIOISOTOPES, LLC announced that they were planning on developing a production facility in Beloit that utilizes linear accelerators to produce isotopes that are used in diagnostic medical imaging. The project will involve the construction of an 82,000 square foot facility, leveraging $194 million in investment, and creating 150 new jobs by 2016. The company will also be moving their corporate headquarters to Beloit. The years most significant commercial project announcement was the beginning of construction of the $1.2 million TILLEYS PIZZA HOuSE. Unemployment numbers for the area continue to decline from a high in 2009 of 18.6% down to a still unacceptable 12.4%. As the economy continues its slow recovery, hopefully, this trend of decline will accelerate. Pipeline activity in 2011 was much more robust compared to the 2 years prior to it. GBEDC staff and volunteers spent a great deal of effort and time in 2011 working on a number of Strategic Collaborations including:

Genencor International Greater Beloit Chamber of Commerce Harris Ace Hardware Hendricks Holding Company, LLC

Tilleys Pizza House

Henry Technologies Hormel Foods Corporation JBF Group Kerry Americas Kettle Foods Klobucar Construction, Inc. M & I Bank McBain Enterprises, Inc. MLG Development Morse Group Mule-Hide Products Neighborhood Housing Services North American Tool Papa Murphys Take N Bake Paperchine PRIDE Associates R. H. Batterman & Co., Inc. Regal-Beloit Rivers Edge Foundry, LLC Rock Bar & Grill

Kettle Foods

Wild Aseptics

Woodmans Food Market

Genencor International

KERRY INGREDIENTS AND FLAVORS is construction a 29,000 square foot addition to their corporate headquarters facility. The new addition will house internal support operations and the vacated space will be remodeled to support activities relating to new flavor and pharmaceutical operations. Total investment in the project is $8,000,000 and will result in the creation of 47 new jobs. 2011 also saw the announcement of two new companies that chose to locate in Greater Beloit:

Kerry Ingredients and Flavors

Turtle Creek Corridor Redevelopment Plan Phase I Upper Floor Housing Grant Program Downtown Faade Grant Program Educational Initiatives Promoting the Shovel Ready certification of the Gateway Business Park Completing the 100th BRE interview Launching of virtual buildings project The GBEDC continued to collaborate with Rock County 5.0 as that organization has risen over $1 million

Rock County Electric Cooperative Assoc. Siepert & Co. LLP Sikich LLP Stainless Tank & Equipment, LLC Stateline Boys & Girls Club, Inc. Stateline Community Foundation Summit Machine Works, Inc. Town of Beloit Town of Turtle Tricor Insurance Visit Beloit

Alliance Development

H.B. Specialty Foods

Welders Supply Company

www.greaterbeloitworks.com

GBEDCS FOCuS & INVESTORS

OuR FOCuS The GBEDC organizes economic activities in the Greater Beloit area focusing on: Industrial and Commercial Development, Package Incentives, Marketing, and Job Training. The GBEDC acts as a liaison to resources that provide for business retention and expansion as well as new businesses, creating and retaining jobs while increasing the tax base. Acting as a voice for the business community, we facilitate professional partnerships with local government agencies, utility companies, realtors, and public and private entities. We also provide valueadded services tailored to meet the needs of members and the community, including financial assistance. OuR INVESTORS Our investors are the regions largest stakeholders and strongest community-minded businesses that support the organizations mission to foster economic growth in the Greater Beloit area. As a public/private partnership, the GBEDC strives to be comprised of small and large employers, professional service and retail businesses, community organizations, and private individuals in the Greater Beloit area. INVESTOR BENEFITS Recognition as a strong corporate citizen who supports professional economic development and a higher standard of living and quality of life for the Greater Beloit area. Networking opportunities with other businesses to create, retain, and expand business opportunities and markets within the Greater Beloit area. Involvement in implementing new strategies that will strengthen and grow our community. Opportunity to serve on the Board of Directors. Investors may actively volunteer on one or more of the standing committees including: Loan and Finance, Recruitment/Investment, Strategic Planning, Business Development, and Business/Education Partnership.

(THE YEAR IN REVIEW CONT.)

LOCAL PARTNERSHIPS
GBEDC Helps KIDS AGAINST HUNGER
300 Block of State Street
Gantry Park to help the economic development organizations implement a variety of strategies to better position Rock County moving forward. A number of initiatives were completed in 2011 including the development of a series of videos focusing on Rock Countys Logistics cluster and our Real Estate and Development Opportunities. A video promoting the Rock County airport will be completed in early 2012.
Several significant infrastructure development projects were also completed including: Reconstruction of the 300 block of STATE STREET Construction of the downtown GANTRY AND GANTRY PARK Reconstruction of CRANSTON ROAD The start of construction of the HENRY AVENuE BRIDGE Major development projects that were completed in 2011 represented the creation of 61 new jobs, a total private investment of over $7,422,483 million, and added 32,136 square feet. These include: FATWALLET.COM WILD ASEPTICS WOODMANS Other development projects that are under construction, or have been announced in 2011 will add an additional 430 new jobs, result in the private investment of $326,900,000 and add an additional 659,764 square feet. These projects include: KETTLE FOODS ALLIANCE DEVELOPMENT GENENCOR BIRDS EYE FOODS NORTHSTAR MEDICAL RADIOISOTOPES KERRY INGREDIENTS & FLAVOuRS THE MORSE GROuP H.B. SPECIALTY FOODS TILLEYS PIZZA HOuSE FAIRBANKS MORSE ALLIANT ENERGY Between completed and announced projects, the region can anticipate the creation of 491 new jobs, the addition of 691,900 square feet, and private investment contributions totaling $334,322,483. The 4th Kids Against Hunger packaging event at Beloit Memorial High School was held this year. The first year started with students and mentors in our Lunch & Learn Program packaging 8,000 meals that were given to local organizations, Caritas and ECHO. The second event was introduced schoolwide with over 290,000 meals packaged and shipped to Cameroon, Africa. The third event was held with another group of Lunch & Learn students and mentors who packaged another 8,000 meals for local organizations. This year the school-wide event was continued, and 150,000 meals were packaged, all of them were sent to Haiti. Students volunteered their morning off of school and community members took off work to participate. Students were asked to get donations by presenting to area businesses, which not only brings students together but

PARTNERSHIPS IN EDuCATION
GBEDC prides itself on being committed to the community and the youth in it. We feel that getting involved in education is important. Some initiatives we have organized include: BUSINESS EDUCATIoN SUMMIT Our fifth annual summit was held on August 24 with featured speakers Alan Borsuk, Senior Fellow in Law at Marquette University Law School, and Janice Brown, Executive Director at the Kalamazoo Promise. This event was held in partnership with the School District of Beloit and the Greater Beloit Chamber.

also brings community members into the school to show the students how much their efforts really matter. We would like to extend a special thank you to AVID PALLET for donating pallets for this project.

SPEAKERS BUREAU PooL We maintain an up-to-date list of professionals in the area who are willing to speak about their professions to School District of Beloit students. CoNNECTIoNS INITIATIVE We connect BMHS freshmen with area businesses that welcome these students into their facilities to discuss careers available. Although this program will not be continued, plans are underway to partner with the Chamber for its Career Fair held each November. LUNCH & LEARN This mentoring program matches area professionals with BMHS freshmen. Currently, 25 mentors work with students every Friday over lunch, provided by a Stateline Community Foundation grant. This year we also introduced programs at both Beloit middle schools. REALITy SToRE Area businesses set up shop for the morning to teach students real life lessons, including budgeting, setting up a checking account, buying a home, buying a car, and paying bills, all factored on a career-based income of the students choosing.

Henry Bridge

Cranston Road

Alliant Energy Gateway Substation

www.greaterbeloitworks.com

11 COMMITTEES
EXECuTIVE COMMITTEE The Executive Committee shall be comprised of not more than eleven (11) members. John Nicholas Chair Jim Fisher Vice Chair Ed Hansen Secretary/Treasurer Tom Ptacin Immediate Past Chair Larry Arft Rick Barder Rick Bastian Diane Gustafson Keith Kruse Joel Patch Mike Duffy BuSINESS DEVELOPMENT COMMITTEE The Business Development Committee shall be comprised of not more than nine (9). Three (3) of whom shall be members of the Board of Directors. Rick Bastian Chair Kent Eymann Bill Lock Frank McKearn Tom Ptacin Jeff Hazekamp Mark Membrino BuSINESS/EDuCATION PARTNERSHIP COMMITTEE The Business/Education Partnership Committee shall be comprised of a co-chairperson representing GBEDC and a co-chairperson representing the GBCC and no set maximum number of members. Rick Barder Co-Chair Jim Agate Co-Chair NOMINATING COMMITTEE The Nominating Committee shall be comprised of the immediate past chair (Committee Chair) of the Board of Directors, and at least two (2) additional members. Tom Ptacin Chair Tom Barnes Jim Fisher Rob Gerbitz

BuSINESS/EDuCATION PARTNERSHIP COMMITTEE:

(COMMITTEES CONT.)
LOAN AND FINANCE COMMITTEE The Loan and Finance Committee shall be comprised of seven (7) members, at least three (3) of whom shall be Board members. No more than four (4) of these members shall be members of the financial services business sector. Ed Hansen Chair Diane Gustafson Rick Bastian Arlyn Erdmann Bob Manzer Rob Gerbitz Brian Kobischka INVESTMENT/RECRuITMENT COMMITTEE The Investment/Recruitment Committee shall be comprised of not more than seven (7) members. One (1) being designated the Chair of the Committee. Keith Kruse Chair Fred Buggs Bill Lock Brian Mark Bill Mears Scott Weiser Gene Ziemba STRATEGIC PLANNING COMMITTEE The Strategic Planning Committee shall be comprised of the Chair of the Board, Vice Chair of the Board and five (5) additional members who shall be investors of the Corporation Joel Patch Chair John Nicholas Jim Fisher Tom Barnes Deb Fredrikson Fran Patch Randall Upton

COMMITTEE REPORTS
From Our Committee Chairs INVESTMENT/RECRuITMENT COMMITTEE:

As we continue to face economic challenges in the area, we continue to work at growing investor/membership revenue. We did maintain most of our current base of supporters, which we feel is acceptable in light of the national and local economy. We were fortunate to receive additional investment revenue from Beloit Health Systems, and would like to thank them for recognizing how important GBEDC is to the Greater Beloit community. For 2012, we plan to add additional members to our committee for help in reaching out to the community, and look at different ways to allow current partners to increase what they do with us as well as a major focus on recruitment of new partners. Our revenue budget goal will be $63,000, and our committees focus will be to achieve this goal at a minimum with great hopes that we will exceed that number. We firmly believe that our organization remains a critical piece in the local economys growth machine and that local businesses can see that our organizations growth is good for all. Our history has shown that, and our future will as well. Keith Kruse, Committee Chair

Our committee remains very active in supporting the local School Districts in their quest to give our future workers the tools needed to compete in the workforce. The 5th annual Business/Education Summit was held in August where we received an update on the current conditions affecting Wisconsin School Districts as well as listening to a very innovative program started several years ago in Kalamazoo, MI called The Kalamazoo Promise. The 4th annual Connections Initiative was held in May with over 400 Freshmen students from Beloit Memorial visiting over 20 local businesses for a 2hr overview of the activity of that business. The Lunch & Learn programs at Beloit Memorial High School as well as Aldrich & McNeel Middle Schools are continuing with good participation at all levels. There will be over 350 students at Beloit Memorial who will participate in this years Mock Interview Program. A pilot program linking students to adult mentors via the internet is continuing with over 30 volunteers participating. A program matching teachers with business leaders is continuing where visitations at businesses and at schools will take place to learn about skill sets needed in the work world. Plans for the 3rd Reality Store are underway where students are given real life scenarios and have to manage a household budget. Our committee will be partnering with the Greater Beloit Chamber of Commerce on ways to work with community-based non-profit organizations which will help students perform better and improve the graduation rate at all local high schools. Rick Barder & Jim Agate, Committee Co-Chairs

STRATEGIC PLANNING COMMITTEE:

Staff has continued to coordinate the economic development activities in the area in the context of the adopted Strategic Plan. The Strategic Plan now incorporates the associated priorities of the GBEDC, the Greater Beloit Chamber of Commerce, Visit Beloit, and the Downtown Beloit Association in to one document. On a monthly basis, the Executive Directors meet to update the Strategic Plan, discuss progress on our agreed-upon initiatives, develop new ideas, and coordinate activities. The Plan has been modified eleven times since starting the process in 2010 and reflects changing priorities within the economic development landscape. Staff has made several presentations on the Strategic Plan to a variety of stakeholders. In 2010, the Greater Beloit Chamber of Commerce and Visit Beloit engaged the same consultant used by the GBEDC to guide them through the development and approval of their own strategic plans. The DBA plans to also use the same consultant to update their strategic plan in 2012. Once all four plans are complete, the GBEDC will coordinate a joint meeting with the consultant to reaffirm that the partners missions are distinct and there is no redundancy in the organizations goal and objectives. Joel Patch, Committee Chair

LOAN AND FINANCE COMMITTEE:

There are six (6) traditional loans currently outstanding which total over $274,000, as part of the City of Beloits Revolving Loan Fund (RLF) program. The original balances of these loans were $376,000 and all but one (1) have been handled as agreed. One new traditional loan was approved in the amount of $55,000 for Midwest Adventures Group, dba Paddle & Trail. Two forgivable loans were approved in 2011, one to Kettle Foods for $200,000 and one to Genencor International for $100,000. With no current applications being submitted, there is $237,500, as of October 31, 2011, to be distributed for qualified City of Beloit businesses. An updated brochure that outlines these programs will be produced in early 2012, and a current edition is detailed on our webpage www.greaterbeloitworks.com making this information available to all potential loan applicants. Ed Hansen, Committee Chair

ENT COMMITTEE: Although the econom ic environment has rem ained challenging for tion efforts of most ec the attraconomic development organizations, your GB a pretty good and pro EDC had ductive year. One new plant announcement alo a handful of expansion ng with plans promise to bring hundreds of jobs and millions of dollars in inv tens of estment to the Greater Beloit area. NorthStar Medical Ra dioisotopes, a compan y involved in nuclear me announced plans to bu dicine, ild an 82,000 square foo t facility north of Gatew could involve as much ay that as $194 million in inves tment. Alliance Develop has committed to a 11 ment 0,000 square foot addit ion to its existing distrib facility. In late 2010, Ke ution ttle Foods announced a $38 million addition existing award winning to its facility. Kerry Ingredien ts and Flavours also co to an $8 million, 29,00 mmitted 0 square foot addition to its headquarters ca take all of these actio mpus. We ns as votes of confide nce in the unique talen and infrastructure offere t, resources d in Greater Beloit. In a very competitive economic developme nt environment, we rec low cost land is not the ognize that only differentiator. We achieved shovel ready fication for sites at the certiGateway Business Park and have modified sig advertise that fact. A nage to partnership with the Ro ck County Business All Angus Young give po iance and tential GBEDC clients access to a variety of ing designs that play virtual buildto the speed to marke t needs of clients cons the area for facilities. idering The Food Processing and Technology broch video was the initial eff ure and ort at broadcasting a core competency of ou This year, a similar comm r region. itment to a brochure an d video on Logistics wi followed by ones on Ad ll be vanced Manufacturing , Healthcare, the Rock Airport, and other ind County ustries.
All of the economic de velopment organizatio ns in Rock County are same page. Wisconsin on the is transforming itself int o a pro-business state. this bodes well for bu All of siness development wh en the economy turns around. Rick Bastian, Comm ittee Chair

BuSINESS DEVELOPM

www.greaterbeloitworks.com

BALANCE SHEET
(As of October 31, 2011) ASSETS Current Assets Checking/Savings CD #1 50,125.93 CD #2 50,000.00 CD #3 50,000.00 Checking #2M&I 24,001.87 Money MarketM&I 76,426.44 Total Checking/Savings 250,554.24 Other Current Assets Prepaid Insurance Total Other Current Assets Total Current Assets

FINANCIAL REPORT
11 Budget vs. Actual
2011 Annual Budget 4,500.00 5,500.00 35,000.00 900.00 66,000.00 0.00 0.00 111,900.00 2011 YTD Actual 4,500.00 3,865.00 0.00 426.56 61,980.70 22,536.18 800.00 94,108.44 INCOME Billboard Lease (Lamar) Business Education Summit Crop Lease Interest Income Investor Dues Other Income Rental Income520 E. Grand Total Income EXPENSES Accounting/Audit Advertising & Marketing Food Cluster Marketing* Business/Education Initiatives Financial Literacy Connections Summit ACT Funding BTC Funding Challenge Day Discretionary Fund Contingency EDA Grant Match InsuranceD&O InsuranceLiability Legal Fees, Filing Fee, Etc. Loan InterestFNB Loan Payment #2CDBG Meals & Entertainment Meeting Expense Office Supplies Professional Services Sub Area Plan* Project Signs Rent/Utilities Repairs520 E. Grand Furnace* Staff Strategic Plan Subscriptions & Reports Training/Conference Travel UtilitiesSigns UW Engineering Program Total Expenses Net Income/(Loss) Net Cash Provided by Financing Activities Accounts Payable to Rock County 5.0 October 2011 Actual 0.00 20.00 0.00 8.27 500.00 16,667.00 200.00 17,395.27

FUTURE PROJECTIONS
12 Proposed Budget
Approved 2011 Annual Budget 4,500.00 5,500.00 35,000.00 900.00 66,000.00 0.00 0.00 111,900.00 Projected Through Year-End 2011 4,500.00 3,925.00 13,327.04 455.00 62,818.00 5,869.18 1,000.00 91,894.22 INCOME Billboard Lease (Lamar) Business Education Summit Crop Lease Interest Income Investor Dues Other Income Rental Income - 520 E. Grand Total Income Amended 2009 Annual Budget 4,500.00 5,300.00 38,408.00 1,000.00 65,971.00 0.00 14,400.00 129,579.00 Approved 2010 Annual Budget 4,500.00 5,000.00 37,281.00 900.00 66,000.00 0.00 7,200.00 120,881.00 Proposed 2012 Annual Budget 4,500.00 5,000.00 60,702.00 600.00 63,000.00 0.00 3,200.00 137,002.00

WISCONSIN ECONOMIC DEVELOPMENT AND GROWTH

Within 500 miles of Beloit: 31 percent of the nations population 30 percent of all U.S. business operations 30 percent of the nations manufacturing companies 38 percent of all U.S. manufacturing volume 50 percent of the nations top 20 metro manufacturing centers Businesses benefit from Greater Beloits strategic location. Our geographical location on the Illinois-Wisconsin border midway between Lake Michigan and the Mississippi River puts us in the center of the U.S.A.s biggest market the Midwest. Speedy access to these markets is provided by the areas diversified transportation systems. Interstate Highways 39, 90, and 43 link the area with other Wisconsin and Illinois communities, as well as the rest of the nation. We are in close proximity to two major cities; Chicago and Milwaukee both are within a two-hour drive. Greater Beloit offers ease of access to markets and suppliers. This is a highly significant factor in terms of freight costs and the increased emphasis on "Just-In-Time" production. With its strategic location and access to markets, Greater Beloit continually plays a big role in Wisconsin public economic development. In short, Greater Beloit offers firms the right location to expand or establish a business.

960.37 960.37

251,514.61

Fixed Assets 520 E. GrandEquipment 6,612.74 Accum. Depreciation (74,648.32) Bldg Improvements 520 E. Grand (at cost) 190,873.00 Building 520 E. Grand (at cost) 140,000.00 Computers & Related Items 5,175.00 Land 520 E. Grand (at cost) 25,000.00 Software 3,200.00 Vision BeloitFurniture 7,240.48 Total Fixed Assets TOTAL ASSETS 303,452.90 554,967.51

LIABILITIES & EQuITY Current Liabilities Accounts Payable Total Accounts Payable Total Current Liabilities

1,658.67 1,658.67 1,658.67

Long-Term Liabilities Contra Current Mat City of Beloit (1,500.00) Contra Current Mat FNB (3,299.00) Current Mat City of Beloit 1,500.00 Current Mat FNB 3,299.00 N/PCity of Beloit 15,075.00 N/PFNB 127,474.47 Total Long-Term Liabilities142,549.47 Total Liabilities Equity Retained Earnings Net Income Total Equity TOTAL LIABILITIES & EQUITY 144,208.14

0.00 650.00 0.00 0.00 0.00 0.00 1,635.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 742.43 0.00 36.00 0.00 58.00 0.00 10,300.00 0.00 1,535.53 0.00 0.00 5,500.00 0.00 0.00 279.53 0.00 50.28 0.00 20,786.77 (3,391.50) (255.79) 0.00

4,000.00 5,000.00 0.00 0.00 0.00 1,200.00 6,000.00 500.00 0.00 2,000.00 1,000.00 0.00 3,000.00 800.00 2,600.00 250.00 11,980.00 1,500.00 500.00 500.00 5,500.00 12,620.00 0.00 1,000.00 20,000.00 2,000.00 0.00 22,000.00 0.00 500.00 4,000.00 3,000.00 450.00 0.00 111,900.00 0.00 (4,134.38) (3,647.29)

4,790.00 5,869.18 0.00 0.00 183.00 673.11 5,477.58 33.00 0.00 0.00 130.24 0.00 0.00 0.00 2,554.00 160.00 7,347.82 0.00 176.75 0.00 1,623.39 7,555.00 10,300.00 6,085.84 16,524.37 1,222.07 0.00 32,586.62 0.00 0.00 1,677.49 128.21 481.19 0.00 105,578.86 (11,470.42) 0.00 (15,604.80)

EXPENSES Accounting/Audit 3,500.00 Advertising & Marketing 14,000.00 Food Cluster Marketing 6,000.00 Business/Education Initiatives 0.00 Financial Literacy 0.00 Connections 2,000.00 Summit 5,000.00 ACT Funding 0.00 BTC Funding 0.00 Challenge Day 0.00 Discretionary Fund 0.00 Contingency 0.00 EDA Grant Match 5,400.00 InsuranceD&O 800.00 InsuranceLiability 2,500.00 Legal Fees, Filing Fee, Etc. 500.00 Loan PaymentFNB 11,979.00 Loan Payment #2CDBG 1,500.00 Meals & Entertainment 1,000.00 Meeting Expense 3,500.00 Office Supplies/Printing/Mailing 4,700.00 Professional Services 5,000.00 Turtle Creek Corridor Redevelopment Plan 0.00 Project Signs 5,000.00 Rent/Utilities 20,000.00 Repairs520 E. Grand 6,000.00 Furnace 4,000.00 Special Projects 0.00 Staff 2,256.00 Strategic Planning 0.00 Subscriptions & Reports 500.00 Training/Conference 2,000.00 Travel 500.00 UtilitiesSigns 400.00 UW Engineering Program 2,000.00 Total Expenses 110,035.00 Net Income/(Loss) 19,544.00

3,800.00 10,000.00 0.00 0.00 1,500.00 1,220.00 5,200.00 500.00 200.00 2,000.00 0.00 0.00 3,000.00 800.00 2,500.00 250.00 12,026.00 1,500.00 1,000.00 1,500.00 4,700.00 4,400.00 20,600.00 3,000.00 20,000.00 7,000.00 0.00 0.00 20,000.00 0.00 500.00 2,500.00 5,000.00 450.00 2,000.00 137,146.00 (16,265.00)

4,000.00 5,000.00 0.00 0.00 0.00 1,200.00 6,000.00 500.00 0.00 2,000.00 1,000.00 0.00 3,000.00 800.00 2,600.00 250.00 11,980.00 1,500.00 500.00 500.00 5,500.00 12,620.00 0.00 1,000.00 20,000.00 2,000.00 0.00 0.00 22,000.00 0.00 500.00 4,000.00 3,000.00 450.00 0.00 111,900.00 0.00

4,790.00 5,219.18 0.00 250.00 183.00 673.11 3,842.58 450.00 0.00 1,100.00 400.00 0.00 0.00 800.00 2,554.00 160.00 11,980.00 1,500.00 350.00 150.00 2,100.00 7,555.00 10,300.00 6,085.84 20,000.00 1,222.07 0.00 0.00 38,089.00 0.00 100.00 1,500.00 200.00 620.00 0.00 122,173.78 (30,279.56)

4,500.00 5,000.00 0.00 0.00 1,000.00 1,000.00 5,000.00 500.00 200.00 1,500.00 1,000.00 0.00 0.00 800.00 2,600.00 250.00 11,980.00 1,500.00 500.00 500.00 5,500.00 12,620.00 0.00 1,000.00 20,000.00 2,000.00 0.00 15,000.00 24,000.00 0.00 500.00 4,000.00 3,000.00 620.00 0.00 126,070.00 10,932.00

422,229.79 (11,470.42) 410,759.37

554,967.51

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