Economic Development
Trends & Initiatives

The City of Thorp has taken a proactive role in improving the local economy. In cooperation with such organizations as the Clark County Economic Development Corporation, the Thorp Area Development Corporation and the Thorp Business Association, City officials have initiated a number of actions to improve and expand the local business and manufacturing sectors of the community.

The City has created and promoted five tax increment financing districts, known as TIFs, to help finance public infrastructure improvements to support private investment in and development of designated industrial parks. The City's industrial park in the northeast corner is approaching capacity and has generated the need for more land for industrial and commercial development. The most recent two TIF districts were designated in response to this need. TIF #4 was created in 1993 on 29 acres of land to the west of Thorp along CTH "X". TIF #4 currently has some street and sewer and water improvements to serve two assisted care living facilities that have been developed in the southeastern portion of the property. TIF #4 is bordered on the north by the Wisconsin Central Rail Line and therefore affords the opportunity for rail service. The most recent TIF #5 was created in 1998 on approximately 120 acres of land in the southwest quadrant of STH 29 and CTH "M". This prime interchange location offers the potential to accommodate large tract industrial and highway commercial development.

Thorp's downtown retail sector has experienced a steady decline over the years, with few remaining retail businesses to fulfill local shopping needs. The City is intent on downtown redevelopment.

Meanwhile, Thorp's service-oriented highway commercial area adjacent to the STH 29/STH 73 interchange has experienced a steady growth. The most recent development to occur in this area has been the addition of a 50-unit motel to replace an older 12-unit one. Highway interchange locations have traditionally attracted increased commercial and industrial development. The City has prepared itself to accommodate increased development in this area through the acquisition of the 120 acres in the southwest quadrant of this interchange, and by the creation of the TIF district to assist financially with the necessary public infrastructure improvements.

Thorp's employment picture suffered both a setback and a renewed optimistic outlook in late 2000. Stella Foods, a major cheese processing manufacturer with over 100 employees at its Thorp plant, closed the plant as part of a larger company consolidation move, laying off all of its employees. However, shortly following this setback, Benchmark Components, another major employer in Thorp with over 70 employees, announced plans for a $9.4 million expansion to its plant in the northeast industrial park. Benchmark Components, which manufactures industrial work surfaces, plans to add 124,000 square feet of new space to its existing plant that will generate approximately 110 new jobs over a two-year period. Whether or not the newly created jobs will be able to absorb the former employees of Stella Foods is yet to be determined. Changing job skills will most likely require some retraining. In addition, the City will need to pursue reuse or redevelopment options for the closed cheese processing plant.

The closing of the cheese processing plant, which had an immediate negative impact on the City's employment base, proved beneficial to the City's water supply. The enormous volumes of water needed for the processing of cheese placed considerable strain on the City's limited water resources. Without this substantial demand, the City is now better able to accommodate the water supply needs required for other prospective industrial or commercial development. The difficulty the City has experienced with getting an adequate water supply to service the community has presented impediments to economic growth and will require continued effort to address.

The City of Thorp has relied on financial assistance programs, such as the Community Development Block Grant (CDBG) program, to assist with economic development initiatives. The City will need to continue to pursue applicable program funding to maintain momentum with the community's economic growth.

One additional factor that has the potential to influence Thorp's local economy is the future operation of the Stanley Correctional Facility. As discussed in the housing section of this comprehensive plan, the proximity of this facility to the City of Thorp is likely to generate some spin-off affects regarding additional population, housing, and economic benefits. While the affects on population growth and housing demand are more difficult to determine, an economic impact analysis completed for the facility projects an estimated 618 new jobs and $38.9 million in sustained economic benefits for the State of Wisconsin. Locally, approximately 366 of the new jobs will be on the facility's $13.7 million estimated annual payroll, with an additional $5.0 million in non-staff expenditure directly related to the operation of the prison. When this facility begins operation and reaches its full staffing level, the regional economic impact will undoubtedly contribute to the City's economic growth.

Employment Projections

Based on historic population growth and employment trends, and considering recent events affecting employment opportunities in Thorp, an employment forecast was prepared for the planning period to reflect long range employment attainment levels. Table 17 presents the employment forecast for Thorp and addresses the basic assumptions upon which that forecast was developed. Essentially, the non-farm wage and salary employment forecasts

are based on the population projections for the City and assume a continuation of the labor force age distribution, participation and employment rates, and stabilized commuting percentages. The impact of regional economic influences are more difficult to determine as they relate to Thorp's employment base, but can create accelerated employment growth in a shorter time frame. This type of accelerated growth may also create additional employment for non-residents. However, over the 20-year planning period, Thorp's employment growth is projected to parallel its population growth of 4.4 percent, adding approximately 26 more residents to the employment base. If the percentage of Thorp's workforce that commutes to work outside of the City does not vary appreciatively, then the City can expect to maintain 18 of those additional jobs within the City. The U.S. decennial census will provide statistical benchmarks with which to compare these forecasts, while the Wisconsin Department of Workforce Development tracks statewide employment data. In addition, local employer surveys could be conducted periodically to monitor employment trends within the community.

General Economic Characteristics

The economic viability of a community can often be identified through the income and employment characteristics of its residents. An income comparison is presented in Table 11 for the City of Thorp and its companion cities in Clark County.

As indicated by the data presented in Table 11, Thorp's median household income is one of the lowest in Clark County, while its per capita income is one of the highest. This apparent dichotomy is most likely attributable to the high percentage of elderly households in the City and is influenced by this population's lowered earning capacity. However, the higher level of per capita income would appear to indicate that the City's workforce maintains a steady employment with a higher earning capacity. The fact that Thorp experienced the lowest percentage income gain between 1980 and 1990 corresponds to the decrease in the age groups of residents (ages 45-64) that represent a more experienced workforce, and therefore, one with a higher income earning potential. It may also reflect an overall lowered income earning capability for the city's employed residents related to a lowered wage scale.

The labor force comparison from 1980 to 1990 presented in Table 12 indicates a 1.8 percent decline in the population from which the labor force is derived, as well as an 8.0 percent reduction in the number of persons participating in the labor force. At the same time, Thorp's employment rate was

The changing character of the City's workforce between 1980 and 1990 can be identified by reviewing occupational changes. Table 13 presents an occupational comparison of the City's workforce and indicates a relatively stable employment in the "professional" and "machine operators, assemblers and inspectors" categories between 1980 and 1990. Occupations that experienced

The availability of employment opportunities within a community is also an indicator of economic well-being. Table 14 presents the employment change between 1980 and 1990 by major category for the City of Thorp. As indicated in the table, employment remained the strongest in the "services" and "manufacturing" categories. Significant increases in the employment categories

In addition to employment opportunities, local wage rates play a significant role in attracting an adequate and qualified labor force. Table 15 presents a sample of representative wage rates for Clark County for 1999.

These county-wide average wage rates are expected to closely reflect wage rates for similar occupations in the City of Thorp. The comparison between county and state average wages reflects the rural character of Clark County and indicates that average wages in the County are substantially below those for the State of Wisconsin.

The availability of employment opportunities in a community, together with competitive wage rates, influence an individual's decision regarding how far they will travel to seek employment. A review of the U.S. Census place-of-work data for 1980 and 1990 reveals an increasingly mobile City workforce. Table 16 presents a comparison between 1980 and 1990 place-of-work data for Thorp's

Economic Development Goals and Policies

The following goals and policies have been developed to provide guidance for the City of Thorp in working toward the development of a stronger local economy.