.png)
Email
PrintWalker names Hall to head troubled WEDC
In the wake of loan mismanagement at the Wisconsin Economic Development Commission, Gov. Scott Walker has named former Marshfield Clinic executive Reed Hall as the commission’s interim CEO, and he announced the resignation of Mike Klonsinski, who had served as chief financial officer.
Hall, who succeeds Paul Jadin, will fill the position until a permanent CEO is selected. His first day at WEDC will be November 2.
Jadin has announced he would leave WEDC to take over Thrive, an economic develop organization serving eight counties in south central Wisconsin. The controversy over loan management at WEDC could bring into question Thrive's selection.
Hall takes over at the WEDC as the agency is under fire for failing to track loans totaling $69 million, including $9 million in past due loans. Of the agency’s portfolio of 267 loans, 131 are current in their repayment, 48 are past due for more than 30 days, 49 are in default, and the rest are forgivable loans.
The Walker administration has acknowledged the lack of a loan collections department at the commission he created to replace the former Department of Commerce. Remaining WEDC officials say they are in the process of overhauling the commission, which is the subject of a legislative audit.
Before retiring, Hall served as executive director of Marshfield Clinic from January 2000 to July 2010. He is a member of the Wisconsin Manufacturers & Commerce Board of Directors and the WMC Executive Committee.
Klonsinski, formerly with the Wisconsin Manufacturing Extension Partnership, is the second CFO to leave the WEDC this year.
It baffles me that WEDC “lost track” of more than $9 million in past-due loans. I am the president of Forward Community Investments (FCI), a statewide nonprofit loan fund and community development financial institution (CDFI) capitalized at more than $15 million and growing. Our loans are made to Wisconsin nonprofits and social entrepreneurs for the development of affordable housing and community facilities and the promotion of sustainable agricultural projects. Every year we make approximately $6+ million in new loans and we take that responsibility very seriously. With a lending and operating staff of five experienced and dedicated individuals, along with the oversight of an active board of directors and lending committee, we make quality loans. At all times, we know the status of every loan and have, at minimum, quarterly contact with all of our borrowers.
A good loan fund does more than just make loans; they care about the future of their borrowers. The due diligence we perform on each and every loan is intended to ensure loan repayment and, more important, increase our borrower’s financial capacity so they can continue to provide services and grow jobs in their communities.
Since making our first loan in 1996, FCI has experienced only two defaults totaling less than $100,000 – that by itself is an incredible achievement. So, how can WEDC not only misplace $9 million in past-due loans but, more important, how can they make so many troubled loans? That, I believe, is the bigger question.