Feb. 24--Park Bank of Madison has been approved for the sale of about $20 million in preferred stock to the U.S. Treasury Department through the Capital Purchase Program and the bank will use the money to support three local development projects.

"We're excited about this opportunity to take this money," said bank president and chief executive Jim Hegenbarth. "In my personal opinion, I think the money is finally getting to the right places where people will start seeing that there will be a difference made."

He said the money will enhance the privately owned bank's capital base so it can be leveraged with other funds to provide support for three local development projects:

--A $21 million, 110,000-square-foot Meriter Hospital administration building now under construction by the Alexander Co. in the Novation Campus business park along Rimrock Road.

--Findorff Yard Office Lofts, a $14 million project by Urban Land Interests that includes two three-story office buildings on a former landfill site along Proudfit Street south of Downtown Madison. Construction could begin this summer.

--An $8 million project by the Alexander Co. to refurbish the Northgate Shopping Center and clean up harmful runoff from a dry-cleaning business in the 1100 block of North Sherman Avenue.

Hegenbarth said the federal money could be leveraged further to provide support for more development projects.

Without the federal funds, the pace of Park Bank's support for the three projects would have been slower, Hegenbarth said.

Jim Imhoff, chairman of First Weber Group and a member of Park Bank's board of directors, said bank officials carefully reviewed the conditions attached to receiving the money.

"We don't need this money unless we can put it to good use," Imhoff said. "We're investing it quickly back into the community."

With more than $800 million in assets and 11 branches, Park Bank would be the 10th Wisconsin bank to receive federal funds under Capital Purchase Program, which is part of the Troubled Assets Relief Program.

Others are: Marshall & Ilsley Corp., Milwaukee, $1.7 billion; Associated Banc-Corp, Green Bay, $525 million; Nicolet Bankshares, Green Bay, $15 million; Baraboo Bancorporation, Baraboo, $20.7 million; First Manitowoc Bancorp of Manitowoc, $12 million; Anchor BanCorp of Madison, $110 million; Legacy Bancorp of Milwaukee, $5.5 million; First Menasha Bankshares of Neenah, $4.8 million; and Mid-Wisconsin Financial Services of Medford, $10 million.

The federal money is distributed to banks through government purchases of preferred bank stock. Banks receiving money must make quarterly dividend payments to the government until they buy back the stock.

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