Show 2- The Salt Lake Tribune - Sunday December 13 1987 Urban Wineries Find a Niche Economic Viewpoint NY Needs Many Things But NBC Isn’t 1 of Them ' By Robert Reno Newsday The trouble with handing out ad hoc public subsidies to private corporations like the National Broadcasting Co is that it is like dealing with terrorists You may with some tortuous reasoning justify the occasional deal but you leave yourself open not only tothe suspicion of bad judgment duplicity even chicanery but to the blackmail of employers who know that the quickest way to unload their legitimate tax burdens is to hold a gun to their workers and threaten to hijack them to New Jersey On the other hand if it is critical to New York's position as the new Rome that it be the headquarters of a TV network then it is the magisterial duty of any mayor to bend both the law and good sense to prevent the Carthaginians west of the Hudson r dream from realizing their of putting their insufferably in their place 300-yea- superi-orngighbo- mbile Music: u Record Store That Delivers PORTLAND Ore (UPI) — If Kay Ken Strobeck have their way their fledgling delivery business stjstgday will be to music what “Domino's” is to pizza The Portland couple have begun “lSB§jc on the Run” a business through which customers can buy cassettes or compact disc by telephone and have them delected throughout the country gl&r goal is to do for the music bfetness what Domino's did for the business” Kay Strobeck 37 sajdJVednesday "The idea is to rsjatae buying records tapes and CDs ag£convenient as picking up the phone and getting your selections delivered to your door" Customers can buy albums and cassettes for $998 each or CDs for $4598' apiece and have them delivered throughout the Portland area at no additional charge Shipments elsewhere include United Parcel Service charges Kay Strobeck said The Strobecks said their business is targeted at those who cannot or don’t want to go to record stores “It’s a hassle to drive to one of the crowded shopping areas hunt for tidffecord store and discover they’re out of the selection you wanted” said Ken Strobeck 35 "And someone who likes country-Wester- n doesn’t want to go into a record store and deal with a complete punk" his wife added The Strobecks offer music for rock Country pop jazz classical and hivC'age” fans ‘rWe have every current selection available in LP cassette or CD and in most cases we can deliver anywhere in the Portland metro area within 24 hours" Ken Strobeck said For additional fees customers also may order custom gift wrapping for their purchases said Kay Strobeck who also runs her own graphic design business “Music on the Run provides current releases and oldies Kay Strobeck said The Strobecks plan to offer singles in the future ’ ‘We’re getting a lot of calls for old 45s” she said “We’re going to do 45 specialties for those who want to deliver a special song to a sweetheart hard-to-fin- d 45-rp- or friend" “So many record stores are interested in just moving the largest number of new titles that they forget about older selections and other musical styles” Ken Strobeck said Let’s suppose that Mayor Koch is simply incapable of conspiring with General Electric Co to permit one of its subsidiaries to evade taxes Let’s even suppose that NBC was in its threat to take advantage of the incomparable creative and cultural advantages of relocating to Secaucus Let’s even postulate that it makes economic sense to subsidize NBC’s presence in Rockefeller Center at a time when Midtown rents are averaging $40 a square foot As recently as 1978 you could get space for $13 a square foot The economics of this is that demand is high and that high rents are a barometer of how many companies are waiting to move into NBC’s quarters if it should decamp for New Jersey There still has to be a better way of giving the city’s money away than these exclusive privately negotiated deals that allow the mayor to posture with taxpayers’ funds The city can’t so much as buy toilet paper or gravel without competitive bidding Instead of spending money to subsidize jobs that may or may not remain here anyway the city could be auctioning off tax breaks to the companies that pledge to create the most new jobs Instead of aiding and abetting intolerable densities in Manhattan the city could require that any permit for new construction in Midtown be contingent on a commitment to develop or rehabilitate a certain amount of housing or office space in the neglected outer boroughs Or else the city could stop giving tax breaks and concentrate on making the city a more inviting place — high taxes and all — for companies NBC did not locate here 54 years ago because of low taxes ABC and CBS don’t just happen to be here And if all three moved to New Jersey tomorrow it would probably have more to do with the diminishing importance of the networks than with the diminishing importance of New York If NBC needs to cut costs so badly that it must consider moving to New Jersey is it really the sort of company that needs to be in New York or that New York needs to be a great city? But the mayor is clearly proud of the NBC deal which is why he says things like “NBC’s decision shows that a peacock can have both brains and beauty” People with a larger vision of this city will wonder what its greatness has to do with being the place where soap operas originate or how smart you really have to be to make a cushy deal with Ed Koch half-serio- Tiny LA Vintners Toast Their Success as Jets Whine By E Scott Reckard Associated Press Writer INGLEWOOD Calif — Back off Napa and Sonoma Beware Bordeaux and Burgundy Runway Red Runway White and a score or so of premium wines are taking off from California’s oddest wine district Jets landing at and taking off from Los Angeles International Airport shriek past just 300 feet overhead but three winemakers are nurturing high hopes The vines on the labels are the only ones in sight except for a tiny Cabernet Sauvignon plant clinging to a fence in an industrial complex where zoning vagaries forced the wineries to locate “Most people don’t understand that wineries and grapes do not have to be attached” says Hank Donatoni a United Airlines pilot who with wife Judy is owner operator winemaker and janitor at Donatoni Winery Down the block at McLester Winery Cecil and Marcy McLester attract the most attention with their Runway wines generic blends with labels featuring a Boeing 747 descending d a salesman for Mosays the Runway wines catch the eye of buyers who otherwise might never hear of his premium wines or those from the other airport winMcLester torola Semiconductor eries They and the Palos Verdes Winery of Herb and Pat Harris truck in grapes or juice mostly from Santa Barbara and San Luis Obispo counties Combined production of the three is roughly 5000 cases a year — less than industry giant Gallo averages per hour Despite the surroundings they have won a wailful of ribbons and reviews “These Inglewood wineries actually are producing premium award-winnin- g varietals of outstanding merit” Robert Lawrence Balzer wrote in the Los Angeles Times But with jets overhead it’s hard to succumb to wine snobbism “We get a big advantage” Donatoni jokes “The racket from the —Associated Jetliner whines over Cecil and Marcy McLester in Los Angeles as they display bottles of their Runway Red wine Wine about 20 percent of the McLes-ters- ’ production They also make various wines from Cabernet Sauvignon Merlot Zinfandel Sauvignon Blanc and Muscat grapes priced from $549 to $1499 Palos Verdes makes Chardon-nay- s and Fume Blancs Donatoni offers Cabernet Sauvignon and Chardonnay Nearly all the wines are sold or to local stores and restaurants The first of the airport wine airplanes overhead vibrates the barrels so we get a year’s aging in a month” The slogans on a bulletin board at McLester where 750ml bottles of Runway Red and Runway White fetch $349 read: “You need not be a pompous twit to en- joy” The Runway wines make up Press Laserphoto makers hope to nurture Chardonnay and Cabernet in an area where jet and auto exhausts mix with gentle Pacific mists makers was Donatoni who had made wine a t liOuiv) and wanted to go commercial But he ran into a peculiar Los Angeles regulation “The city says a winery needs the same zoning as a steel mill — M3 the heaviest industrial you can get” Donatoni said So in 1979 he settled on a strip of unincorporated land between the airport and Inglewood where county laws allow wineries in light industrial areas The McLesters followed him six months later and the Harrises in 1982 McLester turned his first modest profit last quarter but he says it’s the perks that count: letting creative juices flow camaraderie with other winemakers and wine club members the admiration of repeat customers “We don’t have the pastoral setting but we have the winery good friends and a party every Saturday” adds McLester Defensive Buyers Still Making Money New Strategies in Bear Market Helping Investors Profit By Jennifer Lin r Newspapers PHILADELPHIA — If there is any consensus among investment experts today it is that there is none Opinions vary widely on whether the economy will sink into a recession or simply muddle along at a slightly slower pace Similarly advisers have vastly different views on what industries hold the most promise for stock investors Conservative investors are sticking with stocks that are expected to perform well in good times or bad In that group are utilities manufacturers of everyday items for consumers and drug companies Aggressive investors are going for broke while the bargains are there They are buying the stocks of machine-tool companies steelmakers aluminum producers chemical and paper producers and other manufacturers that would benefit from a steady world economy and an in Knight-Ridde- CHRISTMAS SPECIAL! Color Computer Package pendent on the consumer’s ability to spend” It will take a few weeks of holiday shopping before economists have a clearer picture of the outlook for consumer spending Heffernan noted that consumers were already loaded with debt which could crease in foreign trade Whatever the strategy “we all have to start over from scratch and let the market tell us what the major feeling is” said Edward Nicoski an investment strategist for Piper Jaf-fra- y & Hopwood in Minneapolis So far the only point on which there is agreement among money managers is that very timid investors should stay with utilities Dividends are generous and prices have held up more solidly than in the market at large “It’s the safest haven" said prompt them to curb spending For the moment Heffernan said he is focusing on sectors that are less sensitive to boom or bust cycles in the economy such as the drug industry “Whatever the damage to the economic scene it will not hrfve a dramatic impact on the earnings power of these companies” he said He is also buying the stock of insurance companies utilities and regional banks Regional banks which are primarily traded over the counter have sectors been one of the hardest-hi- t Gerard Heffernan president of Stratton Management Co of Blue Bell Pa Heffernan whose firm invests $450 million for individuals and in- stitutional investors considers himself a defensive money manager “We’re not enthusiastic about the intermediate term for the economic environment" he said “Our posture is more defensive We wouldn’t want to be exposed in stocks that are de But another defensive investor James Kalil Sr of Compu-Va- l vestments Inc in Wilmington In- Del said prices are so low that some of the bank stocks are attractive “I wouldn’t buy bank stocks across ' the board” Kalil said “But some have been beaten down so much that they are good asset plays We’re buying some banks for less than book value which basically means you’re getting money at a discount” Kalil who manages $150 million has purchased shares of the Banking Center a Waterbury Conn savings and loan company for some of his portfolios The company according to Kalil’s estimates has a book value of about $20 a share and closed Friday Dec 4 at $10625 down 625 cents In a contrarian move Kalil is looking for defensive investments in the retail sector an industry that most investors are avoiding because of potential weakness in consumer spending But Kalil contends that within the vulnerable retailing trade are some niches of stability including supere chains “They market and have a defensive character about them” Kalil said “It’s doubtful consumers would cut down on foods And with toys people don’t cut back on purchases for kids” He added “This is the time to do your shopping when ‘stocks’ is a dirty word” Michael J Walsh Jr of Boenning & Scattergood however illustrates both the eagerness and trepidation many market experts have about the stock market He’s investing — but taking profits quickly He’s cautious — but can’t resist many of the speculative issues that are selling at bargain prices “I’m trading more actively and taking short-terprofits because the market is nervous and reacting to any crosswinds that it picks up” Walsh said toy-stor- 'SS''h Including Printer FRFK SOFTWARE $99500 WmWmg AT Style Case and Keyboard Turbo 477 & 8 Mhz Dual 360K Floppies RGB Color Monitor Color Graphics Adaptor 256K (expandable to 640K) FREE STARTER KIT The ST 68000 techComputer System from Atari® takes nology to its limit It’s perfect for word processing database management spreadsheets music composition graphic design and CAD applications education playing games and more 120cps Printer Software Diskette Holder Head Cleaner 1 Printer Port 0-P- ak 1040ST —v built-i- n ParallelSerlal Ports TOS Operating System 1 drive 7662 So Stale Midvale 148 So State Orem 5 2939 Washington Ogden 562-563- 6 225-930- 399-261- 4 40 10 AM- - 8 PM Built-I- n MIDI Interface THE SOFTWARE HUTi COMPUTER CENTERS 1839 W 3500 S West Valley City Obviously the Right Choice ‘optional hardware and software required 974-011- 0 The New Mouse Two-Butto- n ‘monitor not included 360K Floppy rt double 3W-lnc- h 20 Meg Hard Disk Monochrome Graphics WAREHOUSE with sideddouble density floppy disk One megabyte memory BULLET 286 $1199 COMPUTER 16-b- it state-of-the-a- Oue Year Warranty OPmiEATEtnurcnRISTMAS! 640K RAM BUILT FOR REAL POWER PRICED FOR REAL PEOPLE Jaguar XJ6 VALLEY 5520 So State v 0000 Less than it’s German Counterpart 111 E 300 S Salt Lake City 355-006- 6 1 JAGUAR 262-268- 3 |