Free Tuesday Trends sample: Wisconsin Energy Corp. rising, historic preservation credit mixed, home sales falling

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Rising

Wisconsin Energy Corp.: The state’s largest utility decides to get even bigger. The Milwaukee company announces a deal to purchase Chicago-based Integrys Energy Corp. for $9.1 billion, and in the process create a utility with 4.3 million customers in Wisconsin, Illinois, Michigan and Minnesota. The deal — which caught many off guard — still has to clear regulatory approval, and some watchdogs have pledged to examine it closely to ensure consumers are protected. But if approved, it would be one of the largest transactions involving a Wisconsin company in years. Gov. Scott Walker, meanwhile, has already praised the merger, raising eyebrows since it could become a controversial issue with consumers if rates rise because of reduced competition. But backers say it’s part of a movement toward consolidation in the industry in an effort to find more efficiency.

Mixed

Historic preservation credit: The state’s effort to boost a tax break for restoring historic property has proven popular — too popular, in fact. When approved last fall, it was expected the tax credit would cut state revenues by $4 million. But just six months in, the early demand has exceeded that nearly tenfold. The Wisconsin Economic Development Corp. notifies the Joint Finance Committee co-chairs it’s issuing a moratorium on new credits while it studies the impact on state finances and prepares a plan for future credits. The co-chairs praise the program’s popularity, and Walker’s office says the governor is on board with the plan. But Democrats slam the move for impeding economic development by holding up projects that could bring needed jobs. A check of the $35 million in projects approved as of early last week shows just over $19 million was for projects in Milwaukee alone, including $4.2 million for rehabilitation of the Posner Building and more than $4.1 million for the John Pritzlaff Hardware Co. Building. The single biggest award, for $9 million, went toward a redevelopment project along the river in downtown Racine.

Falling

Home sales: Sales of existing homes continued to lag behind 2013 levels in May, according to the latest monthly numbers from the Wisconsin Realtors Association. May home sales dropped 6.9 percent compared to the May 2013 volume of sales, the fifth straight month of sales declines compared to one year ago. WRA officials said harsh winter and spring weather contributed to the modest numbers in the first four months of the year, but that an anticipated sales bump last month did not materialize. WRA President Michael Theo speculates rising prices — the median sales price climbed 3.8 percent last month to $150,000 — combined with a slight increase in mortgage rates and tighter lending regulations under the Dodd-Frank financial reform law could be to blame.