By Ken Van Doren
NECEDAH WI- Notwithstanding the article I wrote last time (When Economic Development is NOT, July 29, 2010 edition), not all the economic lessons emanating from the Necedah area are negative. Less than 2 miles from the Village of Necedah owned “business incubator” building is the former Best Power building, which is surely one of the biggest “business incubator” complexes in the state of WI.
A brief history of Best Power
Best Power was founded in 1977 and owned and operated by the Paul family, at a site just south of Necedah. Their primary business was the production of uninterruptible power supplies, and related products. This occurred at the dawn of the age of explosive growth in the use of computers. For many businesses and government agencies, it is important that the computers do not shut down every time there is a power failure. Timing was impeccable, and the company grew from a few family members, to about 800 employees in less than 20 years, with 1994 sales of over $149 Million. The Paul family decided to sell the company in 1995 to General Signal, and in a series of subsequent sales and acquisitions, the remnants were purchased and sold by a number of other companies. Most of the sales/purchases were for the purpose of obtaining Best patents and/or client lists, and in 2005, all that remained of the original business in rural Necedah was the building, which the partners of MVP Business Center purchased in June of 2005 from Eden Corp.
“I think we do more for economic development here than anyone in the Tri-County (Wood, Adams, and Juneau counties) area,” said Gary Youngworth, of MVP Business Center. Youngworth is one of the partners in Maguerite Ville Properties (MVP), along with Steve Paul and Wayne DuPuis. All three were formerly executives with the Best Power. MVP is named in honor of Paul’s mother, Marguerite Paul who was also active in Best Power. “We wanted to name it Margueritaville, but Jimmy Buffet has that trademarked.” said Youngworth. I asked Youngworth, if the company (Best) got any subsidies or other government help. He replied, “ Most of that (stuff) was not available then. About the only thing we got was a small SBA (Small Business Administration) loan.”
Since then, the partners have sought out tenants for their “business incubator” buildings. The Business Center has about 450,000 square feet, with about half that rented to approximately two dozen tenants. The tenants range from one person businesses, with office only, to a distribution center for Peerless Chain, which rents more than 70,000 square feet. Light manufacturing space is also available. With half the space rented, the business center offers unique opportunities for growing businesses to expand, and maintain the same address. There are loading docks and a forklift available to tenants, and the partners are willing to share their business success-and failures in advising tenants. Lease terms are highly flexible.
When I pointed out that tax dollars were being used nearby to create a competing “incubator,” Youngworth said, “How big is there building? Less than 5,000 square feet. I do not care what they do. They are no competition to us. They are a drop in the bucket. If you want to talk a real waste of tax dollars, let us talk about millions being used to support a propeller business in Wisconsin Rapids.” The plant in question has received millions of dollars in subsidies.
“Economic Development has turned into nothing but a paycheck for “Economic Development” people,” said Gary Youngworth, early in my interview with him at the MVP Business Center. His comment brought to mind the news release regarding the formation and funding of an “Economic Development” agency in Vernon County, with significant funding coming from the county itself. The executive director’s greatest priority? Get more funding from municipalities and private businesses, so that she could go full time. This is in great contrast to the stories of Best Power and MVP. To be sure, SOME tax money indirectly supports MVP, as among the tenants are a government agency and a couple nonprofits who have gotten subsidies. However, in both cases, we see private investors risked private money to develop products or services demanded by the marketplace. This is very likely the ONLY way our economy can be successful, because as I stated last time, the more governments have interfered, the weaker our economy has become.