OCR Text |
Show =USINESS She Salt LakeTribune FRIDAY/July 25, 1997 NASDAQ Page D-12 9.30 a wee13 A $323.30 lo Change 30 INDUSTRIALS 8.116.93 20.97 ee Help Agriculture By Lowering Taxes TRIBUNE BLOOMBERG INDEX FOR UTAH 0.75 Bonneville to Buy TV Station BY LISA CARRICABURU THE SALT LAKE TRIBUNE Salt Lake City-based Bonneville International Corp. has mence an agreementto buyCedarCity television station KSGIfrom Seagull Communications Corp. No purchase figures were dis- If the deal is approved by the BRIEFLY . Federal Communications Com- mission, it would give Bonneville its secondtelevision station, both of them in Utah. The otheris KSL-TV, an NBCaffiliate in Salt Lake City. The acquisition also would bring to 19 the number ofbroadcast facilities nationwide that Bonneville International owns or is purchasing. KSGI-TV serves the Cedar City and St. George area with nonet- workaffiliation. Bonneville, which is owned by Silver Creek Digital Media of Holladay has announced completion of the installation of four multimedia kiosks for the recently restored Harpers Ferry National Historical Park north of Washington, D.C. The project consisted of compiling the park’s entire image collection — including historic artwork, images and centuryold footage shot by Thomas Edison — and integrating it with digital media. The Church of Jesus Christ of Latter-day Saints, this year went on a nationwide selling and buying spree, swapping or purchasing radio stations from Chicago to San Francisco as part of a plan to concentrate mostof its holdings in major-marketcities. Filling New Hotels Worries Utah County With four new hotels nearing completion in Utah County, visi- tors bureau officials are under pressureto keep themfilled. “The industry grew to match our demands, and now we're taking the heat to keep the rooms full,” said Richard Bradford, executive director for the Utah Valley Convention and Visitors Bureau. Before 1992, there were 1,495 rooms in the area. Now there are 2,460 rooms, with 467 more scheduled by year’s end. Another350 rooms will be added in Orem with the construction of four hotels, including Hampton Inn, Fairfield Inn, Townplace Suites and La Quinta Inn. “We are approaching an over- built situation,” Bradford said. “The total of occupied rooms each nightis up, but with more of a supply, hotel profits are down.” In response, the visitors bureau has put together an aggressive marketing calendar on packaging hotel, restaurant and entertainmentdeals. PC Makerto Break Ground on Monday Gateway 2000 plans to break ground Monday on its new $20 million Salt Lake City manufacturingfacility. The eventwill take place at 11 a SOSStaffing Services Inc., reported $1.6 million net income for the quarter ended June 29, an 84 percent increase over last year’s second quarter. Service revenues increased 55 percent to $46.5 million. oO Rocky Mountain Job Corps complete next spring. It will be thefifth plantfor the Fortune 500 $5.04billionin sales. The company eventually expects to hire up to 1,350 Utahns who will earn a starting wage of Utah ranked secondin the nation in mink pelt production in 1996 with 585,000 pelts taken, ac- cording to the Utah Agricultural Statistics Service. Thestate's production was up 3 percent from 1995, according to the service. Wisconsin, the leading mink producing state, produced 718,100 pelts in 1996, a 7 percent increase from 1995. Standard was the most common color class in Utah, accounting for 49 percent ofpelts taken. Mahog. pelts, down about 1 percent from 1995. Mink pelts produced during 1996 were valued at $93.5 million, down 35 percent from $142.8 million a year ago. The averageprice per pelt for the 1996 crop year was a low $35.30, down from the record high 0853.10 in 1995 part of the family’s 90-acre farm. “Tt may be the only way he [Law- rence]will be able to pass on to his children what he worked forhis wholelife.” The Briggs’ case is typical of manyin Utah, said C. Booth Wal- lentine, Utah Farm Bureau Federation chief executiveofficer. Along the Wasatch Front in particular, where growth has priced land at a premium, farmers and ranchersoften own prop- estate taxes on family businesses they inherit under current federal tax law. Above that amount, the tax rate ranges from about 30 percentto about 50 percent. “Utahns in agriculture are land rich but cash poor,” Wallentine said,“Too often, those whoinherit large tracts of land must sellit to developers to pay their taxes.” The problem only will worsen unless changes are made,hesaid. The average age of Utah farmers and ranchers is 57, a fact that suggests the state will experience a large transition of agriculturalland ownership in the next 15 Middle € Cl raegna Msment you chills, here’s an even scarier thought: One of your larg- est heirs could be the IRS. Estate taxes — levied on what you own when you die — were designed to prevent wealthy families from hoard- ing all the nation’s riches. But they are fast becoming a problem for the middleclass. Congress has not changed the amount that is exempt from federalestate taxes since 1986. That year, Congress raised the estate tax credit from $155,800 to $192,800, effectively exempting all estates valued at less than $600,000. Estate taxes range from 37 Agriculture and Food said last year contributed $869 million to the state’s economy. Class Congress has proposed a higher exemption. The tax bills passed by the House and Senate — whosefinal form is being negotiated by Congress and the White House — would raise the amount exempt from taxes to $1 million by 2007. The Senatebill also would index the exemptionto inflation and create an additional $1 million exemption for family- owned businesses and farms. That does not mean you can afford to become complacent. If indexing does not get into thelaw,inflation could quickly wipe out most of the benefits of the higher exemption, planners say. crease the exemption in phases to $1 million. A Senate proposalincludesa similar plan but also pro- years. Wallentine estimates the current estate-tax structure would “That is whyitis critically im- vides an additional $1 million for portant that we do something agriculturalists and small businesspeople, said JudyHill, a legis- preventone of every five estates from being transferred to a de- supported by the Utah Agriculture Department, the Utah Cattlemen’s Association and other organizations representing Utah scendentwhowill be able to continue farming or ranching the land. Already, nearly 600,000 acres of agriculturallandis lost in Utah eachyearto urbanization,hesaid. He and others fear further erosion of Utah agriculture, an in- dustry the Utah Department of now,” Wallentinesaid. The Farm Bureau’s effort is farmers and ranchers. Mostfavor eliminationofestate taxes. But because such dramatic action is unlikely, they also support proposals to increase exemp- 0.ns. A House proposal would in- lative assistant to Sen. Orrin Hatch, R-Utah. Hatch, chairman of the Senate Finance Committee Tax Writing Subcommittee, supports increasing the exemptions, but a final plan is pending. Hill said both proposals have passed in their respective houses. Theissue remains in a conference committee where a compromiseis being drafted. o Kolor Kraft Coins is open for business at 125 E. Gordon Lane, Salt Lake City. The new coin store specializes in buying and selling collectible coins, foreign coins, gold andsilver. A bid board closes each Saturday at 1 p.m. Qo Manusco’s Religious Goods, Gifts & Books Inc., will reopen for business today at 1816S. State, Salt LakeCity, in a remodeled, 6,500-squarefoot building. Manusco’s opened in March 1991 to serve the Catholic community of Utah. It has expanded to Wyoming, Idaho and Nevada. a Merit MedicalSystemsInc., a manufacturer and marketer of proprietary disposable products used in cardiology and radiology procedures, re- ported record revenuefor the compared with $12.7 million $284,000, or 4 cents a share, compared to 7 cents a share last year. oO A Subway restaurant is scheduled to open soon in the Green River Tri-Mart convenience store. It is among 21 Subway’s to open in Utah during the past 18 months. a WadmanCorp., Ogden, received the Intermountain Chapter of the American Concrete Institute's Excellence in Concrete Award for its construction of the Lifetime Activities Center at Salt, Lake Community College. The $15 million, 170,000-square-foot project used 14,000 yards of cast-in-place concrete. This is the second time the firm has received the award. 0 Mote! 6 has opened two more franchised properties: a prototype motel in Cedar City and a conversion property just southeast of Hurricane. any and Demibuff accounted for 31 and 9 percent, respectively. Mink pelt production in the U.S. in 1996 totaled 2.6 million “It would really make differ- encefor us,” said Caroline Briggs, whose husband,Neal,will inherit Thatis the amount up to which children are exempt from paying for Frobiem for ture. $8 per hour. Production of Mink Pelts Increases 3% in their favor. ued higher than $600,000 despite otherwise modest means. Probl risk youthsto a different cul- for the sameperiodlast year. Net incomefor the quarter was companythat last year reported death is just too much. Briggs’ family is among 723 Utah farming and ranching families who are delugingthestate’s congressional delegation with letters supporting legislation that wouldalter estate-tax exemptions erty andotherassets that are val- 1g ies in Utah, Montana, Colorado, North Dakota, South Dako- Lake City industrial park, 2100 S. 5500 West, said Greg Lunt, marketing communications manager. Gateway, a North Sioux City, farmerbelieves being taxed after : Estate Taxes Fast Becoming ta and Wyoming.A goal of the drive is to help introduce at- a.m. at Landmark inside the Salt Towa, PC-maker, last month an- income and, although feeling at timeshe wasbeing taxed to death, has given the government its share. But the 84-year-old Syracuse Page D-14 sites are working with communities and organizations to help add books to Job Corpslibrar- second quarter and the six months ended June 30. The company earned $15.3 million nounced plans for the 260,000square-foot plant it expects to All his life, Lawrence Briggs has labored to coax living from the land. He has earned a modest WEATHER Big ® ; . closed. Farmers, Ranchers: Page D10 OEC Medical SystemsInc., Salt Lake City, reported revenue of $38.9 millionforthesixmonth and second quarter pe- riods ended June 30, a 27 percentincrease over the same Steve Griffin/The Salt Lake Tribune Richard Madsen, president of ZCMI, says the store's goal is to maintain its position as the premier departmentstore in this market. As Retailers Fall, ZCMI Holds Its Own in the West BY STEVEN OBERBECK THE SALT LAKE TRIBUNE tive officer of Salt Lake City-based ZCMI partmentstore. “Montgomery Wardjust filed for Chapter 11 and the F.W. Woolworth stores will soon be ZCMI did notescape entirely unscathedlast year from the highly competitive retail envi- ronmentin Utah and Idaho ‘The128-year-old Salt Lake City-based companyposte a strong performancefor most of 1996. But the final month of the year — the important holiday shopping season — turned out to be unexpectedly sluggish, Madsen says. Madsenpoints to the upsurgein retail sales nationally in June, following sluggish results in March, April and May, as boding well for ZCMI for the remainderofthis year. “Our goalis not to become a nationalchain, The companyalso plans to add new space to someofits existing stores and expects to bring in several new merchandiselines. The company already has launched a major expansion of its Layton Hills Mall store, says Christine Stanger, the mall's senior marketing manager. The project, expected to be completed in November,will bring an additional 38,000 square feet to the existing two-level store that anchors the eastside of the mall. During the past two years, ZCMI's shares haveincreased 42 percent, rising from $9.75 a share to a high of $13.75 on July 21. And in May, the companyraised its regular sen says. but to maintain our position as the premier department store chain in our market," Mad- quarterly dividend 6.75 percent to 16 cents pee share from 15 cents. ‘That marked our 408th consecutive quarterly dividend,” Madsen says. “There is not He says ZCMI's growth plans center on eventually adding several new locations but another department store I'm awareof that can say that.”” BY LESLEY MITCHELL ‘THESALT LAKE TRIBUNE a spokesman for the Western In- Premiums for earthquake cov erage in Utah are not expected to rise muchin coming years, but the damage amount insurers will cover appears to be dropping. Industry observers say insurers, still reeling from losses from quakes in California, are making adjustments in various markets, including Utah. pensive, fewer and fewer people medical-imaging systems for fluoroscopic intraoperative add-on to a standard homeown er’s policy — is not inexpensive, #0 many insurers are “trying real tions. earnings of $581,640. saysit is too early to reveal wheretheywill be. Utah Insurers May Shake Up Earthquake Coverage Earthquake coverage — an and interventional applica Still, the 15-store company posted strong profits for shareholders. With weak holiday returns pulling ZCMI's annual sales increase downto just 1.9 percent, the company reported profits of $1.8 million, or 84 cents pershare, forits fiscal year ended dey” Feb. 1, 1997, up from the previous year’s gone,” Madsen says. period last year. ORC is a man- ufacturer and marketer of “It hit so quickly we hadlittle time to react,” he says. Theretail business can be tough, even in a booming economy. Some of the country’s largest and bestknown retailers have been struggling, notes Richard Madsen, president and chief execu- ly hard to level off the cost of the premiums,” said Kennoth Adams, surance Information Service in Los Angeles, “As it gets more ex- will buy it.” Insurance companies say only a small number of homeowners buy the insurance because the per- ceived chance of an earthquakeis slim or the premiums are too high Because price increases proba- bly would keep homeowners from obtaining the coverage, insurers instead are tinkering with deductibles and what is covered in poli- cies to limit their exposure. Allstate Insurance Co,, for ex- ample, recently increased its deductibles on earthquake insurance in Utah to 10 percent, up from 5 percent, but passed on a premium increase. A growing number of insurers continue to analyze residential and commercial construction in states at risk for earthquakes to see how well structures would fare, said Christopher Guidette, director of corporate communications for the Insurance Services Office Inc. (ISO), New Yorkbased companythat provides statistical ‘sod actuarial ack information to insurance companies. ISO, on behalf of insurance companies nationwide, is reviewing building codes in Utah, Oregon, California and Montana. “Insurers have known for a long timethat building codes have 4 big effect on how much damage occurs during an earthquake,” Guidette said Even if Utah's building codes were determined to be inferior to those in other parts of the country, Guidette said he doesn't be- lieve homeowners would seetheir rates jump, He doesn't rule out, however, insurers dropping some popular discounts, changing doductibles or excluding a ditional items from coverage to lessen their exposure, , ‘ |