| Show wipaynp)ilpyiTpfiiy ywypi y n fV r''T' i Dowell Tribune Real Estate Writer The good news for apartment owners and property managers in the Salt Lake City area is that the market has reached its bottom The bad news is it will take most of the year before it begins to move up That was the forecast by Lee H Van Dam president of Van Dam & Associates a property management firm and real estate brokerage specializing in apartments and commercial real estate at a luncheon Wednesday at Little America Hotel “I feel better about the market than last year” he said “because corrections are taking place” The key to the recovery is the minimal amount of new construction projected this year That’s due to lenders also being more selective in the types of loans they’re approving “We’ve turned the corner” he said during his second annual forecast luncheon “By that I mean it’s bottomed out It won’t get worse!” After three years of a building boom less than half the number of new apartment units were started in 1986 with vacancy dropping slightly 6 from a high in of 15 to 20 percent to between 14 and 19 percent mid-198- by year-en- d Apartment construction in 1986 was concentrated in the northwest and southwest quadrants of the valley south of State Street and also in Bountiful — Tribune Staff Photo by Lynn R Johnson Eighteen months after an accident that put him in a wheelchair Greg Harry is operating an investment banking firm New Business Is Not Just A Job — It's Therapy By Joe Rolando Tribune Business Writer MIDVALE — Greg T Harry has more than just the typical reasons for starting a business He confirmed that his company Trading Systems Inc an investment banking brokerage allows him to do what he likes for a living while becoming his own boss And he explained his company — specializing in taking small firms public — also fills a niche in the market But operating Trading Systems also has been a way to “keep me It’s very good therapy” going businessman said the clasping his hands over an unopened copy of The Wall Street Journal That rather atypical reason for opening a business becomes understandable only when Mr Harry explained that he broke his neck 18 months ago in Texas when he dove into a swimming pool The accident paralyzed him But as evidenced by the company he started that has not been enough to impede him More than anything he said he hopes his ability to move on with his life will inspire others with similar injuries to do the same “You can’t stop You can’t let these things slow you down Unfortunately when people get hurt in accidents the sit back and don’t do anything And ‘the system’ encourages that by cutting off Social Security benefits if you make more than $300 a month” Mr Harry credited "life itself” with pushing him to continue with his life and career “Life’s there to grab You have to go out there and get it” He attributed his positive attitude about his injuries to having and been older than a teen-age- r therefore more mature when the accident happened He also said he didn’t have the unrelenting an ger or depression that many people experience after suffering similar injuries “I knew I was paralyzed at the time and I know I will walk again” insisted Mr Harry “The doctors’ say I won’t But that’s bull Mr Harry has signed up to receive a nerve regeneration operation at University of California at Los Angeles But he said the operation is three or four years away “I’m just out to work and get back going” he said “I go out with girls I just bought myself a BMW” A 1977 graduate of Cottonwood High School Mr Harry started his career in 1982 with Western Capi- tal and Securities Salt Lake City as a market maker and stock broker In 1984 he was appointed branch manager of First Interwest Securities Inc Salt Lake City Until his accident he worked d Horizon for Salt Lake Trading Corp where he received the training necessary to start Trading Systems Mr Harry said he prefers to call his new business an investment banking brokerage because he goes to a stock brokerage firm to underwrite the stock issues he puts together He has assembled a staff which includes a e attorney While Trading Systems only has been open since April Mr Harry said the stock value of the transactions he has conducted amount to about $10 million His goal this year are transactions with stock million value of about “The way to go today is merge rather than have an IPO” said Mr Harry explaining the former automatically gives both a seller and a ouyer He said “The sellers are not going to sell to the buyers if it’s a sham So mergers protect the investors a lot better” City-base- full-tim- $40-$5- 0 A study by the Apartment Association of Utah showed vacancy rates at year’s end at between 14 and 20 percent down slightly from a high of 15 to 20 percent six months earlier Faced with a glut of empty rental units last year 1986 was a renter’s market as apartment owners and property managers dropped rents and offered concessions to try and fill their projects Mr Van Dam said with the reduction in apartment construction this year vacancy rates will continue to drop — although slowly — throughout the year Concessions will also be discontinued and rents will stabilize he said Some projects may initiate small increases later in the year as vacancy rates drop Mr Van Dam looks for more foreclosures on apartment projects — the result of negative cash flows caused by high vacancy rates and rents below the break-eve- n point Lenders will continue to be cautious and reduce the number of loans for apartment projects ’ For owners the costs of building apartments will continue to drop as will the site costs Interest rates will remain low encouraging single-famil- y home sales — with resulting apartment vacancies he said Thus "1987 will continue to be a great year for renters” He urged owners to manage their properties cautiously and prudently and compare results with advertising dollars spent He also suggested they negotiate better loans for their projects "Don’t focus on vacancy” he said “Focus on dollars earned” Tell a concrete company worker who hasn’t had a raise in three years that his state taxes should be hiked Tell a Salt Lake City hamburger shop owner who is just hanging on that the governor needs more money for education Tell a trucker who is now driving more miles but making less per hour than he did five years ago that his taxes will be raised That says Utah House Majority Leader Nolan Karras is the painful reality he faces But the inevitability is that he will join colleagues in voting for an increase he told a luncheon meeting of the Wasatch Front Economic Forum Wednesday He added however that you can be sure the state — particularly the education system — will be "held upside down and shaken” to exact every efficiency before he or his colleagues grant any tax increase Mr Karras a four-terlegislator is an investment adviser in private life and formerly a practicing CPA He followed Utah budget and planning director Dale Hatch to the podium Mr Hatch told the forum — a group of professional business economists — why Gov Norm Bangerter has asked for a $206 million tax hike Namely: Utah with the nation’s highest birthrate — half again as much as the country as a whole — is faced with increasing school enrollment At the same time it is suffering from general economic decline which has cut its tax revenues m And even given the tax increase the state will be spending less per pupil than any other state And even after the increase no thanks to inflation the state will be further behind on real basis than before And he added the pain of the in 15 1987 lion As yet undefined loss resulting from year of the shuttle faulty booster solid built by the Wasatch Division of Mo Corp And finally the cut in feder spending has cost another $58 millic in revenues over two years he said The question taxpayers should as he said is: What if you don’t increas taxes? Businesses considering locating P Utah will ask what quality of educt tion can they expect for their chi dren The poor and the hungry will suffc even more he said v‘ is the tax revenue the explosion last Challenger whose rocket motor was SkyWest Delta Sign Deal To Coordinate Schedules gram The others are Atlantic South''' east at Atlanta and DallasFor Worth airports COMAIR at Cincin nati airport and Business Express a Boston and New YorkLa Guardi u airports When SkyWest’s agreement begins Delta and its connecting partners wil operate 2424 daily flights throughou -the United States Ron Reber SkyWest’s vice presi dent of marketing said under th agreement hi' airlines will continu to offer discounted fares neighboring ticket counter and gate locations am boarding passes for connecting Delt flights SkyWest began scheduled passen ger service in June 1972 with threi single-engin- e and one aircraft between St George and Sal Lake City Today SkyWest serves 37 cities ii California Utah Nevada Arizona Idaho Montana Wyoming and Colo rado through more than 455 daily de partures It operates 43 daily depar tures at Salt Lake City Internationa Airport Special to The Tribune ST GEORGE — SkyWest Airlines a regional carrier based here has entered into a joint marketing agreement with Delta Air Lines calling for coordination of their schedules and services it was announced Wednesday The agreement is similar to the one SkyWest entered with Western Airlines n Delta’s acquisition of Western became effective Dec 16 with approval by the companies’ shareholders Western will operate as a wholly-owne- d subsidiary of Delta until April That it is when it is expected to become fully merged into Delta SkyWest’s agreement with Delta goes into effect April 1 $860-millio- twin-engi- The agreement will provide SkyWest passengers with connecting flights to and from communities on Delta’s Los Angeles Salt Lake City Phoenix and Las Vegas traffic hubs SkyWest will be the fourth regional airline to join Delta’s connection pro 4 record $60000000 General Electric Huntsman A Joint Venture of General Electric Company Plastics Business anti A Subsidiary of Huntsman Chemical Corporation Secured Project Notes due - PEORIA (AP) Caterpillar Inc plans to close three plants employing more than 2900 workers in the United States and Scotland to help it further streamline operations and stay profitable the company announced Wednesday 1996 The undersigned privately placed these securities am! acted as financial advisor to the Joint I entnre The world’s leading manufacturer of equipment plans to close plants in Davenport Iowa Dallas Ore and near Glasgow Scotland said President Peter Donis heavy-constructi- Caterpillar will take a $109 million pre-ta- x charge against its fourth-quartearnings because of the closings which will affect about 5 percent of its workforce but expects to be profitable for all of 1986 the company said in a news release er The cost of auto insurance shouldn't drive you crazy Now The Prudential will give you one discount for owning two or more cars And a second discount if you select certain coverages and have a safe driving record So call your local Prudential representatto review your coverive for a age and save you money With a Prudential Double Discount you're headed in the right direction Check the phone book for your local Prudential office E — crease will be much offset by reduction in federal taxes Utahns have to pay — $150 million this year and $190 million next year The drop in oil prices has cost the state the equivalent of $59 million yearly in tax revenues the closing of Kennecott $19 million the closing of Geneva Works of USX $10 million and Great Salt Lake flooding $2 mil- This announcement appears only as a matter Kidder Peabody & Co Incorporated January IOS7 This announcement appears only as a matter of record Era Is insurance on two cars driving you up the walls? Get a Prudential Double Discount $9000000 Huntsman Specialty Resins Inc A HCC Subsidiary of Huntsman Chemical Corporation Pru-Revie- Secured Project Interest Notes due 1997 The undersigned privately placed these securities with a certain institutional investor Subject to qualifications local availability and coverage requirements t 198S Prudent at Property and Casually Insurance Company Holmdel NJ Kidder Peabody & Co Incorporated January IW7 L January Legislator Calls Tax Hike Inevitable Caterpillar Likely To Close 3 Plants 111 Thursday But Not Before Every Cut Has Been Made Landlords Told TR i"pny jriirpiifriJn The Salt Lake Tribune Apartment Glut Has Peaked By h'iI |
