2010 Annual Report

Our mission

To improve the economic well-being of the businesses, communities, and residents of the county.

Our vision for Fond du Lac County

Our customers

The direct customers of FCEDC services include the existing businesses of Fond du Lac County, entrepreneurs, prospective businesses and those who serve them as well as local governments and economic development organizations. Our ultimate customers are the citizens and communities of

Fond du Lac County.

Our standards

FCEDC is the only accredited economic development organization (AEDO) in the State of Wisconsin and is one of only 25 such accredited organizations nationally.

Entities that become accredited are recognized as organizations of excellence in the field of economic development. During the AEDO process, organizations receive critical evaluation and peer

mentoring by certified professionals concerning internal and external operations. AEDO status signifies a distinguished achievement for an economic development organization.

FCEDC Essentials

Cost of printing kindly provided, in part, by: EP Direct1479 S. Hickory StreetFond du Lac, WI 54937www.ep-directprinting.com

A strong, stable, diversified economy; •A competitive, dynamic workforce;•A comprehensive and proactive infrastructure; •Flexible, prepared community partnerships; •Above-average economic well-being of citizens and businesses; and •Regional cooperation. •

2010 was a year of both growth and transition for Fond du Lac County Economic Development Corporation (FCEDC) with each presenting unique challenges and opportunities. It was, however, a very exciting year for FCEDC as we had staff transitions, expanded our client services, completed a targeted industry analysis, maintained the private and public sector funding, and enhanced our identity in Fond du Lac County by moving into a new location.

FCEDC has been able, in national searches, to attract a talented and educated staff when such opportunities have presented themselves. All four of the new staff members joining FCEDC in 2010, two of whom are local and two of whom joined us from outside of Wisconsin, have advanced degrees and significant experience in their areas of expertise. Professional development has remained a focus for the organization as another team member received certification as an Economic Development Finance Professional in 2010. The high-performing, talented staff at FCEDC stands ready to help clients of all sizes and at all stages of their development. Thanks to our many wonderful investors, FCEDC was able to maintain our funding in 2010. Recognizing the challenges many of our investors faced during the difficult economy, we held the investment levels flat as we’ve done since 2008. We’ve focused our attention on seeking out diverse funding sources, including grants, contracts, and other revenue sources. This did result in us implementing a small fee for start-up clients in 2010.

FCEDC is also nearing the end of its five-year Strategic Plan (2007-2011). Recognizing the Strategic Plan is a living, breathing document, the organization continues to hold itself accountable to that plan with regular quarterly reports. In early 2011, our Board of Directors participated in a board retreat to examine what FCEDC had been doing well and where we had opportunities to improve. The FCEDC team strives to provide exceptional service in all of our service areas and for each and every one of our clients.

Moving to a new, larger facility set FCEDC up for long-term sustainability, gave us a stronger presence and identity in Fond du Lac County, and allowed us to expand our client services. It is so much more than a physical move. It exemplifies the creative and inventive energy that has become synonymous with FCEDC while keeping the needs of the clients in the forefront.

The move allowed for the opening of the Center for Enterprise Development (The Center), a highly creative business accelerator meant to speed up the development of starts-ups and existing businesses by offering a creative work environment that will foster innovation and business expansion. Watching this unfold is exciting for FCEDC. Like our economic gardening program, Impact!, we anticipate The Center to be a model for other such efforts in Wisconsin, the Midwest, and nationally.

In order to create a diverse yet balanced industry mix in Fond du Lac County, FCEDC completed an in-depth industry analysis. This study has revealed gaps or unmet needs within the supply chain for each of the seven targeted industries. These uncovered gaps are possible market opportunities for existing local businesses to expand and/or for new businesses to locate here in Fond du Lac County or within the region.

Closing these gaps will result in job creation; increased competitiveness of each industry; an attractive business environment; a pool of skilled workers; and established assets and sales opportunities. Check out the expanded targeted industry profiles and opportunities on our website. If an existing business would like to expand or if a new business would like to locate here to take advantage of these uncovered market opportunities, FCEDC is equipped through our Impact! program to complete additional customized research including: industry trends and forecasts; market size and demographics; regional and national competitive intelligence; marketing lists/leads; and much more.

In summary, 2010 was indeed a year of challenges and opportunities. However, the FCEDC team embraced the challenges and utilized the opportunities to grow and become an even better organization. We look forward to continuing our services to Fond du Lac County and thank you for your continuing support of our efforts.

Brenda Hicks-Sorensen, CEcDPresident

State of the Organization

“The Center exemplifies the creative and inventive energy that has become synonymous with FCEDC while keeping the needs of the clients in the forefront.”

-Brenda Hicks-SorensenPresident, FCEDC

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2010 Board of Directors Russ Kamphuis, Bank of Oakfield, Chair

John Valek, RB Royal Industries, Vice ChairDennis Yunk, Agnesian HealthCare, Treasurer

Steve Holz, National Exchange Bank & Trust, SecretaryJim Flood, Holiday Chrysler Dodge Jeep, Past Chair

*Sandy BrethAllen Buechel, Fond du Lac County

Todd Diedrich, Capelle Bros. & Diedrich, Inc.Scott Dreger, Alliant Energy

Martin F. Farrell, Ph.D., Ripon College/County Board of SupervisorsJoAnn Hall, Moraine Park Technical College

Tom Herre, City of Fond du LacJoan Karsten, Century 21 of Ripon

*Richard Kleinfeldt, Giddings & Lewis, retiredSam Meyer, State Farm Insurance/Fond du Lac City Council

Herb Ottery, Ottery Transportation, Inc./County Board of SupervisorsBob Poch, Keller, Inc.

*Terry Schleif, Hometown BankMike Shedivy, Mercury Marine

Daniel Vande Zande, Vande Zande & Kaufman, LLPMike Wisnefske, West Bend Machine Works, Inc.

* indicates past chair

EX-OFFICIOJoseph R. Reitemeier, C.C.E., Fond du Lac Area Association of Commerce

Note: FCEDC would like to recognize the outstanding contributions of outgoing board members Herb Ottery (2005-2010), and Scott Dreger (2008-2010).

FCEDC would like to also welcome new board members Zak Bloom of Waupun Utilities, Gary Boyke of Vir-Clar Farms, and Kathy Leifer of Alliant Energy.

All three joined the board on January 1st, 2011.

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Executive Committee

Russ Kamphuis, Chair John Valek, Vice ChairDennis Yunk, TreasurerSteve Holz, SecretaryJim Flood, Immediate Past ChairAllen Buechel, Member at LargeTom Herre, Member at LargeJoe Reitemeier, ex-officioBrenda Hicks-Sorensen, President

2010 Committees

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In addition to the Executive Committee, current standing committees are as follows:

Investor Relations* John Valek, RB Royal IndustriesTodd Diedrich, Capelle Bros. & Diedrich, Inc.Tony Ferdinand, Haentze Floral Company, Inc.Jim Flood, Holiday Chrysler Dodge JeepDave Gerritson, Fox Valley Savings BankRuss Kamphuis, Bank of OakfieldDick Kleinfeldt, Giddings & Lewis, retiredMatt Lueptow, M & I BankHerb Ottery, Ottery Transportation, Inc.

Personnel and Compensation* Mike Wisnefske, West Bend Machine Works, Inc.** Scott Dreger, Alliant Energy Jim Hubbard, Mercury Marine, retiredDennis Yunk, Agnesian HealthCare

Revolving Loan Fund* Herb Ottery, Ottery Transportation, Inc.** Mary Avery, Ripon CollegeMatt Lueptow, M & I BankTim McFarlane, Hometown BankWayne Rollin, City of Fond du LacRich Scheuerman, Alto Dairy, retiredDan Vande Zande, Vande Zande & Kaufman, LLPMike Wisnefske, West Bend Machine Works, Inc.

Board Development* Jim Flood, Holiday Chrysler Dodge JeepSandy BrethRuss Kamphuis, Bank of OakfieldDick Kleinfeldt, Giddings & Lewis, retiredTerry Schleif, Hometown Bank

Northeast Wisconsin Business Plan Competition JudgesMary Avery, Ripon CollegeTony Beregszazi, ADVOCAP, Inc.Sandy Breth, FCEDC Board MemberKathy Doyle, ADVOCAP, Inc.Jilene Huizenga, Moraine Park Technical College

Full Circle CommitteeCathy Christensen, Hierl InsuranceSandy Friess, Wipfli LLPJoAnn Hall, Moraine Park Technical CollegeCathy Huybers, Fox Valley Workforce Development BoardRyan Kamphuis, Bank of OakfieldSteve Leaman, Associated BankBob Poch, Keller, Inc.Greg Sabel, C.D. Smith ConstructionKathy Schlieve, Moraine Park Technical CollegeDan Shea, Shea Electric & CommunicationsSteve Straub, Wisconsin Manufacturing Extension PartnershipKrista Williams, Schroeder Moving SystemsBob Young, M & I Bank

2010 StaffBrenda Hicks-Sorensen, President, CEcD

Joe Becker, Director of Business Finance, CPA, EDFPJacqui Corsi, Marketing Specialist

JoAnn Giese-Kent, Research SpecialistMelissa Hunt, Community Development Specialist, EDFP

Annette Murray, Administrative AssistantOwen Rock, Business Strategist, EDFP

Brett Traver, Business Strategist

Note: Linda Berlin, Director of Research and Beth Myers Landbo, Director of Marketing left FCEDC in 2010.

Follow us on Facebook, search for Fond du Lac County Economic Development Corporation.On Twitter, follow us @ImpactFdLCounty. And look for each of our staff member profiles by name on LinkedIn.

* Indicates chair ** Indicates resignation from committee in 2010

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FCEDC Assisted these Businesses

Inter-Quest

While working at a printing company, Darwin Bethke was sitting in his office one day with the radio playing contemplating opening his own computer business. He either managed or

worked for companies and had little knowledge about starting his own. How was he going to do it? Then a commercial began with the words, “if you are thinking about starting a business” and

ended with a summons to contact FCEDC. So he called and it changed his life. He had already solicited the owners of Inter-Quest, a computer company in Beaver Dam to ask if they would be willing to open a second location. The owners of this company are two men Darwin knew professionally. However, Darwin needed more than their stamp of approval. He needed the guidance of FCEDC.

“The fee you pay to get started was so worth it,” Darwin said. FCEDC saved him time and energy because the staff streamlined the process. He had to write a business plan, which he said was harder to do than a college term paper. However, it was FCEDC who helped him make it better, forcing him to really think through his business and make sure it was viable.

Then when it was time to get financing, FCEDC made the calls to the banks for him – not to get the loan – but to see which banks may be interested. When it was time for Darwin to call these banks, he didn’t feel alone in the process because FCEDC opened the door for him. Now he just had to walk through.

With the backing of a local bank and a small business revolving loan fund from FCEDC, and utilizing those contacts from the past, Darwin Bethke in 2010 became the owner of the Fond du Lac location of Inter-Quest, the company that makes technology simple.

To learn more about Inter-Quest, go to http://www.iqsvr.com/.

Bootbiz.com

With an established and expanding Internet business, the owners of JGear or Bootbiz.com began looking for a larger warehouse and space to open a retail location in Fond du Lac. Already on the Inc 5000 list as one of the country’s fastest growing companies, managing partner Shane Baganz called FCEDC for help. What he got was so much more.

Baganz owns the company with his two brothers but he is the only one who lives in Fond du Lac County dealing with day-to-day operations. One brother, Jodi Baganz, lives in Stevens Point and

the other, Barry Braganza, lives in Houston, Texas.

The business started in 1997 in Jodi’s garage and has grown into a multi-million dollar operation which sells work boots and work shoes, western boots, and uniform and

safety footwear. What Shane was lacking was time to work on the business because he was so busy with sales. FCEDC helped.

“It was FCEDC who helped make it better, forcing me to really think through the business and make sure it was viable.”

-Darwin Bethke

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Integrity Saw & Tool, Inc.

Paul Reetz was a sales representative with Integrity Saw & Tool, Inc. for nearly 10 years before becoming its owner on April 1, 2010. However, that change didn’t happen overnight. It took 2 ½ years and it only happened because he called FCEDC.

The former owner of Integrity Saw wanted to retire but he also felt strongly that the business should stay in Fond du Lac County. He approached Reetz in 2008 about purchasing the business. Reetz found investors, secured financing and was able to give the former owner a proposal by the end of 2008. However, the deal could not be completed before the downturn in the economy.

Banks changed their policies, including one that required a 25% down payment. Two years earlier, 10% would have been sufficient. In the meantime, an Illinois firm was interested in purchasing Integrity Saw but couldn’t guarantee the jobs would remain in Fond du Lac. “It was looking bleak,” Reetz said.

Then Reetz learned of FCEDC through a friend and made the call. “It was amazing to find FCEDC,” he said. He admitted he thought economic development was for companies the size of Mercury Marine and not those like his with 22 employees. In a two-week span, he found a bank willing to loan him money with gap financing from the Fond du Lac County Special Allocation RLF administered by FCEDC, and closed on the deal a short time later. FCEDC provided technical assistance and was always available to answer questions.

“The loan will be paid off but I will forever be indebted to FCEDC,” Reetz said.

Integrity Saw & Tool was formed two decades ago to provide the machine tool and woodworking industries in Wisconsin, northern Illinois and eastern Minnesota with quality CNC-manufactured precision cutting tools.

To learn more about Integrity Saw & Tool, go to http://www.integritysaw.com/.

“We have to thank FCEDC,” Shane said. “It’s amazing the talent and commitment they have shown us as our growth progressed.”

While the brothers had already started writing a business plan for the retail operation, FCEDC staff helped them to finalize the plan, coordinate with arealtor for the larger facility, and provided other technical assistance regarding talent attraction, legal services, and marketing.

“The FCEDC staff has been there for us each time we asked a question or needed support. The research they have done for us has helped us grow quickly and efficiently. A literal gold mine that every growing business in Fond du Lac needs to become aware of,” Shane said.

To learn more about the company go to http://bootbiz.com/.

“FCEDC is a literal gold mine that every growing business in Fond du Lac needs to become aware of.”

- Shane Baganz

“The loan will be paid off but I will forever be indebted to FCEDC.”

- Paul Reetz

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FCEDC Accomplishments

Be Bold Wisconsin

The Wisconsin Economic Development

Association (WEDA), a statewide organization

of over 400 economic development professionals, released Be Bold Wisconsin: The Wisconsin Competitiveness Study on August 3rd as part of an effort to study independently how Wisconsin can better compete with other states as well as other countries in an ever-changing global marketplace. The study became a benchmark for Gov. Walker’s transformation of the Department of Commerce. Brenda Hicks-Sorensen is a member of the Board of Directors for WEDA and FCEDC has supported the Be Bold Wisconsin efforts.

Business Plan CompetitionFCEDC assisted in the annual Northeast Wisconsin Business Plan Competition. FCEDC Business Strategist Owen Rock was on the committee for the competition. The competition was coordinated by the Northeast Wisconsin Regional Economic Partnership (NEWREP). See Page 4 for the list of business leaders who volunteered as judges for the competition.

Center for Enterprise DevelopmentWith the first of its kind in Wisconsin, FCEDC moved into a larger space that will allow

an increased number of services and new, highly

creative ways to meet the needs of business – the

Center for Enterprise Development. The

new location at

116 North Main Street in Fond du Lac “exemplifies the creative and inventive energy that has become synonymous with FCEDC and keeps the needs of our clients front and center,” Brenda Hicks-Sorensen, CEcD, president of FCEDC, says. For more information on this new space see Page 10.

Community Development SpecialistMelissa Hunt continued to assist the Village of North Fond du Lac, the City of Waupun, and the City of Ripon in community development efforts. Waupun has been successful in taking proactive approaches to ensure a sustainable downtown and encourage redevelopment. Ripon has created a Community Development Authority to review potential projects and opportunities. North Fond du Lac has started strategic planning and visioning.

Connection CornerThis virtual web-place for entrepreneurs and emerging businesses continues to grow and be a gathering place for tips, ideas, and events. With input provided by local business leaders, a project of the Center for Enterprise Development and FCEDC, the Connection Corner was made possible through a grant from the Fond du Lac Area Foundation. The website is www.connectioncorner.net.

Economic Scorecard FCEDC completed a statistical analysis of Fond du Lac and four other communities served by Accredited Economic Development Organizations (AEDOs). Key economic performance indicators were used to determine the

competitiveness of the Fond du Lac MSA. Benchmarking the Fond du Lac Metropolitan Statistical Area (MSA) report is available at www.fcedc.com.

Entrepreneur’s Connection Current and future business owners were able to learn of resources available to them including financing options, networking tips, how to write the perfect elevator pitch, and new ways to generate business through e-commerce and social media at the 3rd annual Entrepreneur’s Connection on November 16th. Plans are underway for E-Connect 2011 when it returns to Fond du Lac on November 15th. E-Connect is a joint effort of ORIGIN and the Entrepreneurial Service Partners of Fond du Lac County.

External MarketingThe 2010 external marketing campaign – You Rock! – was launched in late April. Like the programs of the past several years, the goal of the multi-faceted campaign was to raise awareness of Fond du Lac County as a viable and attractive option for business location and expansion. There is no greater compliment, no more succinct praise than the invariable “you rock.” The campaign spanned six weeks and was assisted with generous in-kind investments by two partners in this year’s event – The Goldsmith at 117 South Main Street in Fond du Lac and Stuart’s Landscaping and Garden Center at N7820 Lakeshore Drive in North Fond du Lac. The 2011 External Marketing Campaign will celebrate innovation in Fond du Lac County.

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Full Circle Existing Business Development ProgramUtilizing volunteers and FCEDC staff, the Full Circle program is centered on the ExecutivePulse web-based survey tool that enhances business development services. This face-to-face business interview program not only uncovers important local, regional and national business trends, it also develops stronger relationships with local businesses, linking them to key resources. Since the inception of the Full Circle program in July 2007, volunteers and staff have completed 69 company visits. The companies interviewed represent 7,408 employees and nearly $940 million in sales. See Page 4 for a complete list of our Full Circle volunteers.

Impact! Economic GardeningFCEDC continued its efforts in the economic gardening program made possible by a $437,899 grant from the U.S. Department of Commerce Economic Development Administration (EDA), and $7,500 from the Fond du Lac Area Foundation. Economic gardening means growing companies from within. FCEDC staff identified companies with growth potential and showcased the resources available at FCEDC to the companies.

Internal MarketingFCEDC staff has continued to participate on monthly shows on KFIZ (AM 1450) and WRPN (AM 1600). These extended informational segments have proven to be effective in informing people about our programs, services and initiatives. You can hear the KFIZ segment with Bob Hoffmaster on the second Wednesday of each month at 10:30 a.m. The WRPN segment with Jason Mansmith can be heard at

varying times on the second Thursday of each month. New cable commercials will soon be aired on Charter highlighting innovation in Fond du Lac County. Finally, Brownboots Interactive was retained to assist in marketing existing business services including the Impact! program.

Leadership/Youth Leadership Fond du Lac Economic Development DayFCEDC continued to be a leader in economic development by informing future leaders about the role they can play in the economic development health of the region. FCEDC staff participated in the Youth Leadership Program and hosted a one-day session for the Leadership Fond du Lac Program.

Money Smart WeekFCEDC Business Strategist Owen Rock presented “Turning Your Idea into Income” as part of Money Smart Week, October 2nd through October 9th. Sessions provided entrepreneurs with the basics of starting a business and were held in Fond du Lac, Campbellsport and Ripon.

Professional DevelopmentMelissa Hunt, Community Development Specialist, successfully completed the Economic Development Finance Professional Certification Program through the National Development Council.Jo Ann Giese-Kent, Research Specialist, and Jacqui Corsi, Marketing Specialist, each completed the Wisconsin Basic Economic Development Course in Madison.

Reporting MechanismsFCEDC continues to hold itself accountable and reports

to all of our stakeholders on our progress and achievements through quarterly reports issued by FCEDC electronically to over 2,000 subscribers. In addition to updates on our strategic plan, FCEDC provides updates on economic development activity and services.

Revolving Loan FundFCEDC expanded its revolving loan fund efforts in 2010 by partnering with the City of Fond du Lac Redevelopment Authority to provide administrative services for the City of Fond du Lac Economic Development Revolving Loan Fund (EDRLF) program. FCEDC also provides administrative and oversight to the Fond du Lac County Special Allocation Revolving Loan Fund (RLF) which is funded by a portion of the half-percent sales tax. Between the two, $530,000 of loan funds were approved.

Rural Microentrepreneur Assistance Program FCEDC was selected as one of six organizations in Wisconsin to receive funds that will be used to boost small business development, create jobs, and strengthen rural communities. The funding is being provided through the Rural Microentrepreneur Assistance Program (RMAP), which was authorized by the Food, Conservation, and Energy Act of 2008 (Farm Bill). The purpose of RMAP is to support the creation, development and ongoing success of rural microentrepreneurs and microenterprises.

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FCEDC Recognitions

FCEDC again becomes an Accredited Economic Development

Organization

The International Economic Development Council (IEDC) recognized once again that FCEDC is one of 25 economic development organizations and the only economic development organization in Wisconsin as an Accredited Economic Development Organization (AEDO).

The AEDO program is a comprehensive peer review process measuring economic development organizations against commonly held standards in the profession. Originally accredited in February 2001, FCEDC was reaccredited by IEDC following three successful years of activity.

“FCEDC displays the professionalism, commitment, and technical expertise that is deserving of this honor,” said IEDC President and CEO, Jeff Finkle.

FCEDC recognized by Corporate Report Wisconsin Magazine

FCEDC was named one of the top three economic development organizations in Wisconsin by Corporate Report Wisconsin magazine.

Each year, the publication names the top three in a number of categories based on reader write-in votes. “Economic Development Organization” was a new category in 2010. FCEDC was the only single-county economic development organization named in the top three.

Sharing the “top three” spots with FCEDC were the eight-county, Madison regional entity Thrive

and the state-wide Wisconsin Housing and Economic Development Authority. The

awards were presented in Wisconsin Dells in June.

FCEDC President Named Outstanding Alumni

Brenda Hicks-Sorensen, CEcD, president of FCEDC, was named a recipient of the University of Wisconsin-Oshkosh (UW-O) Outstanding Young Alumni Award.

She was named for her accomplishments in economic development and, in part, due to the role FCEDC played in the Mercury Marine consolidation decision during the summer of 2009. She was one of nine UW-O alumni returning to campus during Homecoming 2010 to receive the award.

FCEDC receives excellence award from the International Economic Development Council

FCEDC received an Excellence in Economic Development Award for the Mercury Marine Consolidation/Retention Project in the category of Business Retention and Expansion - Single Event for communities with populations of 25,000 – 200,000 from the International Economic Development Council (IEDC).

William Best, IEDC chair said, “Our awards honor organizations and individuals for their efforts in creating positive change in communities.”

“The Fond du Lac County Economic Development Corporation is showing that they are at the forefront of the economic development profession and are using innovative and effective practices that can be replicated in other communities.”

The IEDC is the premier membership organization dedicated to helping economic development professionals create high-quality jobs, develop vibrant communities and improve the quality of life in their regions.

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If innovation were captured in a space, it would be The Center for Enterprise Development (The Center). The Center, which is operated by Fond du Lac County Economic Development Corporation (FCEDC), is three-dimensional space for the entrepreneur and existing business owner with growth opportunities.

The Center is built on a foundation of creativity for everyone involved – from staff to clients. In the only such facility created and operated by an economic development organization in Wisconsin (and as far as we can find nationally), The Center will quickly become a model for other economic development organizations.

This business accelerator is meant to speed up the development of starts-ups and existing businesses by offering a creative work environment, valuable services, a menu of resources at their fingertips, space to work, and assistance from professional staff.

The Center has three core goals - Intelligence, Imagination and Insight.

Intelligence: A key challenge facing entrepreneurs and businesses with growth opportunities is gaining information about their industry such as the target audience, potential markets, and location demographics. While this type of information is understood by many, dedicated and uninterrupted time to conduct the necessary research as well as, in many cases, the technical ability to do so may be in short supply. The Center will help.

Imagination: Creativity helps relax the mind for brainstorming and open it to the flow of original thoughts and ideas. Creativity and creative problem-solving skills cultivate whole-brain thinking, which can aid entrepreneurs and existing businesses who want to grow in their search for new products, ideas for improved products, efficiencies in business procedures and coping with changes in the working environment. The Center will help.

Insight: The third element for success for the entrepreneur and existing businesses with growth opportunities is an understanding of and appreciation for the bigger picture as well as the ability to collaborate and problem solve with peers, industry and supply chain colleagues and mentors. Fresh ideas for wider development will come out of think tanks, CEO roundtables, and a mentoring program. The Center will help.

FCEDC continues to see an increase in people interested in starting businesses and existing businesses wanting to expand or become more efficient. The Center will fulfill a need that assists businesses in their success in the future economy and build on a healthy economy for Fond du Lac County.

With its comfortable and colorful furnishings, creative “toy box,” and high-end technology, The Center can bolster the entrepreneur’s success, launch their businesses in new and exciting directions and help innovatively approach the needs of business and their industries.

The Center builds upon our expansive revolving loan fund programs, and Impact!, an economic gardening program launched in 2009 by FCEDC, which has already been lauded for thoroughness and ingenuity by those who practice and teach economic gardening theories and principles.

The Center for Enterprise Development will inspire new ideas and provide an opportunity for original thinkers at reasonable rates.

Original Thinking for Original Thinkers

For more information on The Center, go to www.fcedc.com and click The Center.

2010 in NumbersSummary of 2010 Clients

A client is defined as a business attraction prospect, existing business or entrepreneur who receives more than one hour of FCEDC services. In 2010, FCEDC served 182 clients.

The 2009 number for comparison are as follows: Total client projects 235, existing business development 48%, business start-ups 37%, and business attraction 15%.

The 2008 number for comparison are as follows: Total client projects 187, existing business development 48%, business start-ups 36%, and business attraction 16%.

Revolving Loan Fund Summary

Fond du Lac County Revolving Loan Fund: As of the end of 2010, the Fond du Lac County Revolving Loan Fund (RLF) portfolio stands at $3.1 million. During 2010, loans totaling $550,000 were approved.

Small Business Revolving Loan Fund: FCEDC established a new Small Business Revolving Loan Fund (SBRLF) in 2008. During 2010, loans totaling $85,000 were approved.

Fond du Lac County Special Allocation Revolving Loan Fund: FCEDC began administering this Fond du Lac County fund in 2010. Loan funds totaling $300,000 were approved in 2010.

City of Fond du Lac Economic Development Revolving Loan Fund: FCEDC began administering this revolving loan fund for the City of Fond du Lac Redevelopment Authority in August of 2010. There were $230,000 of loan funds approved in 2010.

Existing Business

Development52%

BusinessStart-ups

31%

BusinessAttraction

17%

Clients served

127 18

7 235

2007 2008 2009

2010 Sources of Funds

Private Sector Public Sector Administrative Income Contract Income Grants & Other Total

2010 Uses of Funds

Staff Operations Programs Total

Diversification of Income

During this strategic plan period (2007-2011), FCEDC has focused on finding new income sources and has been aggressive in pursuing grants and other available funding. This has resulted in a more evenly divided and varied income “pie” than just a few years ago.

2005

2010

Private sector

Public sector

RLFAdmin

Programs

Other

Private sector

Public sector

RLFAdmin

Grantsand

Other

Contracts

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$116,890$200,707$135,276$105,000$164,373$722,246

$498,514$129,310$ 96,001$723,825

182

2010

The internal vision of FCEDC is to “be a premier public/private partnership that provides sustained leadership in economic development for the region and delivers exceptional results.” The following are five-year goals set forth in our 2007-2011 strategic plan as the “bulls-eyes” toward which organizational plans and actions have been focused. Where appropriate, specificity was attached to the goal to allow for benchmarking throughout the five years of the plan. FCEDC holds itself accountable and reports to all of our stakeholders on our progress and achievements quarterly and annually. (Any figures used below reflect projects that have reached the level of project implementation.)

Progress on Strategic Goals: 2007 -- 2011

Balanced Industry Mix Create a balanced industry mix targeting specific industry clusters in Fond du Lac County and Northeast Wisconsin.

Status and Activities Toward Goal: Updated targeted industry profiles were verified with •a survey sent to companies within the clusters. Data will be released in 2011. Several attraction projects brought to Fond du Lac •County.Continued site selector marketing program •established in 2007. Successful relationships have been established, making Fond du Lac County the go-to location in Wisconsin.

Job Growth Create 2,500 new jobs matching Fond du Lac County’s labor force and training capacity. This effort will have an anticipated multiplier impact of 1.25 or 625 additional jobs. Targeted wage rates will exceed the median hourly wage.

Status and Activities Toward Goal: •1,922newfull-timepositionsplus147part-timepositions expected for a total of 2,069 new jobs*; and 1,610 positions retained

Impact on Fond du Lac County economy:

The 1,922 expected full-time new positions have a multiplier effect of 2.06, totaling 3,957 expected jobs. Earnings estimated for these new jobs (wages and benefits) is $199 million per year, resulting in a disposable personal income estimated at $144 million per year. If new part-time positions are factored into the equation, the 2,069 expected new full and part-time positions have a multiplier effect totaling 4,155 jobs. New job earnings would be $204 million with disposable

personal income estimated at nearly $148 million per year. Additional annual sales for all industries based on these expected jobs is $1.1 billion per year.

The 1,610 expected retained positions results in a retention of an additional 2,063 indirect jobs for a total of 3,673 retained/saved jobs overall. Earnings estimated for these retained jobs (wages and benefits) is $194 million per year, resulting in disposable personal income estimated at nearly $141 million per year. Additional annual sales for all industries based on these retained/saved jobs is $1.2 billion per year.

*The number of new positions has been adjusted from the number posted in the 2010 4th quarterly report.

Capital Investment

Assist businesses in establishment, modernization and expansion activities that will result in $80 million in capital investments (i.e. equipment, land, building) in Fond du Lac County.

Status and Activities Toward Goal: •$340.8millionintotalinvestmentexpected*

*The investment figure has been adjusted from the number posted in the 2010 4th quarterly report.

Talent Attraction Facilitate the development and sustainability of an environment conducive to attracting and keeping the level of talent necessary for our businesses to gain and maintain a competitive edge.

Status and Activities Toward Goal: •Inresponsetoworkforceandtalentattractionneedsof area businesses, FCEDC continues to work on talent attraction proposal initially developed in 2008.

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Source and Methodology: The multipliers of 2.06 for new full-time, 2.01 for full & part-time, and 2.28 for retained jobs are higher than that projected in our Strategic Plan (1.25) because the jobs are in higher-than-average paying industries. Economic Modeling Specialists, Inc. (EMSI) Strategic Advantage Economic Impact Model was used to estimate the indirect jobs & earnings that result from the new jobs and retained jobs associated with FCEDC projects for 2007-2010. We were able to enter new and retained jobs in the specific industries that they are expected to be created. (EMSI Data Sources and Calculations are explained below.) Consultants at EMSI performed the calculation for sales for all industries. Disposable income is based on avg. benefits & taxes for WI Per Capita Personal Income and Per Capita Disposable Income 2009. Input-Output Data: The input-output model figures are created using the national Input-Output matrix provided by the federal Bureau of Economic Analysis. This is combined with the national Total Gross Output, the regional Total Gross Output, the land area of the subject region, regional DIRT data and regional in/out commuter patterns in order to calculate regional requirements, imports and exports. After using matrix algebra to calculate the regional multiplier, the resulting matrix is multiplied by the sales vector and converted back to jobs or earnings. Specifically, this data comes from the U.S. Department of Commerce, Bureau of Economic Analysis, Industry Economic Accounts: Benchmark & Annual Input-Output (I-O) Accounts. Industry Data: In order to capture a complete picture of industry employment, EMSI basically combines covered employment data from Quarterly Census of Employment and Wages (QCEW) produced by the Department of Labor with total employment data in Regional Economic Information System (REIS) published by the Bureau of Economic Analysis (BEA), augmented with County Business Patterns (CBP) and Nonemployer Statistics (NES) published by the U.S. Census Bureau. Projections are based on the latest available EMSI industry data, 15-year past local trends in each industry, growth rates in statewide and (where available) sub-state area industry projections published by individual state agencies, and (in part) growth rates in national projections from the Bureau of Labor Statistics.State Data: The EMSI model uses state data from the follow-ing agencies: Wisconsin Department of Workforce Development, Bureau of Workforce Information.

Our Valued Investors Below is a list of our valued investors without whom our services would not be possible.

The number in parentheses indicates years of investment in FCEDC.

Accurate Controls (6)Action Advertising (12)

Advantage Accounting (3)Advanced Paper Enterprises (2)

Agnesian HealthCare (22)Ahern-Gross (22)

Alliance Laundry Systems (21)Alliant Energy (22)Aluminum Resources (19)AMC of Wisconsin, Inc. (new investor)American Bank (22)Associated Bank (21)Baker Cheese (11)Baker Tilly (7)Bank of Oakfield (15)Basic American Metals (8)Baumhardt Sand and Gravel (10)BCI Burke Company (9)Berger Company (22)Bluemkes, Inc. (7)Bob and Maureen Poch (2)Bomier Properties (11)Brenner Tank (18)BrownBoots Interactive (2)C.D. Smith Construction (20)Campbellsport Building Supply (11)Capelle Bros & Diedrich (14)Century 21 Ripon (1)Charter Communications (14)Citizens First Credit Union (5)City of Fond du Lac (22)City of Ripon (12)City of Waupun (13)Combination Door Co. (16)Condon Oil Company (15)Consultants Laboratory (21)Cowles-Henke-Kemmel Ins. Agency (3)Dean W. Uelmen, DDS (8) Edgarton, St. Peter, Petak, Rosenfeldt (22)Edward Jones (11)Electro Plating Company (10)EP-Direct (2)Excel Engineering (14)Faith Technologies (9)First Business Bank-Northeast (new investor)

Flood Homes (22)Fond du Lac Bumper Exchange (12)

Fond du Lac County (22)Fond du Lac Skyport (3)

Ford & Harbridge Ins. & Financial Svc. (14)

Fox Valley Savings Bank (22)

Foy & Springborn (7)

F. Ziegler Enterprises (13)Golden Rule Credit Union (3)Grande Cheese Company (22)Grant Thornton (21)Graphic Center (6)Guaranty Title Services (14)Guenther Supply (18)Guilfoile Insurance (12)Haber/M&M Printing (12)Hierl Insurance (18)Holiday Automotive (22)Holiday Chrysler Dodge Jeep (13)Holiday Inn/WISCO Partners (22)Homebuilders Association

of Fond du Lac & Dodge Counties (21)Hometown Bank (12)Horicon Bank (11)Hornung Golf Products (22)Huberty & Associates (19)Hutter Property Services (13)Ideal Chiropractic (2)INFO-PRO Mortgage Services (2) Integrity Saw & Tool (12)Jackson Kahl Insurance Services (5)J.F. Ahern Co. (22)Jet Stream Enterprises (21)Johnson Brothers Construction (7)Johnson School Bus Service (10)Keller, Inc. (9)Lake Breeze Dairy (8)Linstrom’s Catering (4)Lutheran Homes & Health Services (3)M&I Bank (20)Manowske Welding (16) Marchant Schmidt (16)Marian University (15)McClone Agency (12)McNamara & Thiel Insurance (6)Mercury Marine (22)Michel’s Corporation (9)Mid-States Aluminium Corp. (21)Muthig Industries, Inc. (19)National Exchange Bank & Trust (22)Natural Stone Veneers (5)Northcentral Construction (new investor)Osborn & Son Trucking (6)Ottery Transportation (12)PanelTEK (9)Pit Stop Portables (2)Progressive Investors (13)Pro Motorsports of FdL (new investor)RB Royal Industries (18)Ripon Pickle (6)Ripon Printers (18)Sadoff and Rudoy Industries (9)

Sam Meyer/State Farm (6)Schenck Business Solutions (20)Service Master Commercial Services (9) Sirna Productions (new investor)Society Insurance (22)Sorenson Law Office (19)Stuart’s Landscaping & Garden Center (5)The Goldsmith (new investor)The Nielsen Company (1)The Reporter (20)Timon Perron Trucking (12)Tom’s Quality Millwork (6)Town of Fond du Lac (11)United Parts Plus (12)US Bank (21)UW-Fond du Lac (5)Vanderkin Plumbing (new investor)Vande Zande & Kaufman, LLP (12)Van Horn Hyundai (8)Village of Brandon (3)Village of Campbellsport (7)Village of Fairwater (3)Village of North Fond du Lac (12)Village of Oakfield (6)Village of Rosendale (2)W.J. Leasa Electric (16)Warehouse Specialists (18)Waupun Memorial Hospital (16)Waupun Utilities (5)Webster’s United Foods (4)Wendt’s on the Lake (2)West Bend Machine Works (3)Whealon Towing & Service (2)WIPFLi (8)wisnet.com (12)W.W. Electric Motors (19)ZA Commercial (new investor)Zacherl, O’Malley & Endejan (14)

Our valued reciprocal partners:

Campbellsport Area Chamber of Commerce

Fond du Lac Area Association of Commerce

Ripon Area Chamber of Commerce

Waupun Area Chamber of Commerce

(As of 2/28/2011)

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Looking Forward

“FCEDC has the tools, resources, space and technology available for budding entrepreneurs and existing businesses within the new home of the FCEDC.”

-John ValekRB Royal Industries

FCEDC Board Chair

As I look forward to the coming year, I see many ways in which FCEDC is poised to build on its past success as the premier economic development organization for Fond du Lac County.

The business climate moves fast and FCEDC is ready. Not only does FCEDC have a talented staff in place, but it also has the tools, resources, space and technology available for budding entrepreneurs and existing businesses within the new home of the FCEDC. It is the new business accelerator – the Center for Enterprise Development.

The Center stands alone in Wisconsin for economic development organizations and will be the place for creative thinking and innovation for the county. If you haven’t had a chance to experience The Center, I strongly encourage you to do so. This space will become a model for economic developers who must keep up with the speed of business.

Another tool for FCEDC and the clients served is the targeted industries data. As part of FCEDC’s goal to create a diverse yet balanced industry mix in Fond du Lac County, FCEDC completed an in-depth industry analysis. Gaps within the supply chain for each of the seven

targeted industries were shown as possible market opportunities in the upcoming year for existing local businesses to expand or for new businesses to locate here.

The targeted industries data provides a strong breakdown for analysis and an opportunity for businesses to look at how they can position their companies here.

Keeping up with the fast pace of business, FCEDC also has a role in what’s happening in Madison by lending its support to the Wisconsin Economic Development Association study: Be Bold Wisconsin. Recommendations in the study are being implemented, including the restructuring of the Department of Commerce, rebranding Wisconsin as a place to do business, and expanding the state’s incentive toolbox.

FCEDC will continue to be active and lend a voice for Fond du Lac County when it comes to economic development concerns occurring at the state level.

Finally, 2011 is the time we need to look at the future of FCEDC as it is the final leg of the current five-year strategic plan. A Board Retreat was held in January to begin the process. We need to build a plan that is flexible enough to accommodate existing businesses while leaving room for opportunities that could come our way.

The new strategic plan will pertain to 2012-2014. FCEDC chose to shorten the time frame due to the dynamics of business today, remembering the speed and complexity of the business climate and how quickly it can change. A three-year strategic plan fits.

With the successes of the past firmly in place, FCEDC staff is ready to move forward with the skills and knowledge to accelerate the process of expanding or starting a business.

Sincerely,

John ValekRB Royal Industries, 2011 Chair FCEDC Board of Directors

116 N. Main Street, PO Box 1303, Fond du Lac, WI 54936-1303(920) 929-2928 info@fcedc.com

www.fcedc.com