The Indianapolis Star from Indianapolis, Indiana • Page 20

Finance The Indianapolis Star SATURDAY, NOVEMBER 2, 1985 PAGE 21 Low-interest financing sought for 10 projects Off i The (j would renovate 326 apartments and 100,000 square feet of commercial space, starting In September 1986. The office buildings are at 245 South Meridian Street and 429 North Pennsylvania Street. The apartments are at 1 East 36th Street. 3330-3340 North Meridian Street. 1040 North Delaware Street.

1022 North West Street. 2139 North College Street. 1 1 1 East 16th Street and 38th and Pennsylvania streets. Other proposals request bond financing for: $4.5 million from Group Amerlcal, Leawood, to renovate five buildings In the 200 and 300 blocks of Virginia Avenue Into offices. Total project cost Is $5 million.

$2.4 million from Benton, David and $1.2 million from Gerald and David Kosene. James W. Budden and Albert A. Savlll to turn a warehouse at 1402-1430 North Illinois Street into storage spaces. $800,000 by Angelo's Inc.

to buy former Indianapolis Public School 7 at 748 Bates Street on the near-Southslde, as part of a $1 million project to turn It Into business space. $700,000 from Stewart Manufacturing Co.to build a new 20.000-square-foot facility In Near-North Industrial Park to make ventilation equipment. $29 million from Lockefield Associates to renovate 198 apartments In the former Lockefield Gardens public housing, complex and build 294 new units. The city previously chose Lockefield Associates to do the project. Sophia Marks and partners to renovate the nine-story office building at Michigan and Pennsylvania streets and the three-story building at 311 West Washington Street.

$1.7 million from Indianapolis Office Supply to buy and renovate the former Tutwiler Cadillac dealership at 2330 North Meridian Street for use as a warehouse. $1.5 million from Que Corp. to build new offices at 9420 Priority Drive on the Northside. The publisher of computer software brochures Is located In Castleton Commercial Office Park. $1.5 million from Pictorial Publishers to build a addition to Its facility at 8081 Zionsvllle Road for use by V-marc, a subsidiary that makes computers.

Ten new proposals for city-sponsored low-Interest bond financing call for construction or renovation of 818 apartments and 562,000 square feet of commercial and Industrial space. The proposals include turning a former Tutwiler Cadillac dealership Into warehouses, converting an old public school Into offices and renovating five run-down buildings on Virginia Avenue downtown Into modern offices. Stenz Associates submitted the most ambitious of the proposals, which are up for preliminary approval Wednesday before the Indianapolis Economic Development Commission. Stenz wants to Issue $14.5 million In Industrial development bonds to help pay for a $20 million renovation of 10 apartment and office buildings. The project What's hot now for U.S.

banking? It's regional mergers does Is grant banks from specific states the right to do business on Its turf if they reciprocate. In Its ruling last spring involving two New England banks, the Supreme Court not only upheld the legality of regional Interstate banking. It also permitted states to exclude money-center banks, including the big banks of New York. These regional agreements have definite advantages. Customers, for example, can get new services.

The Wachovia merger with the First Atlanta Corp. enables Wachovla's customers to buy insurance through First Atlanta's Insurance subsidiary while First Atlanta's customers can seek student loans through Wachovia. Borrowers could receive lower interest rates because larger banks tend to raise money at lower rates. And shareholders could benefit because their banks would have a more diversified loan portfolio. Those benefits at least partly explain why small and mid-sized banks are rushing to the merger altar.

Most of the mergers have been In the Southeast." where more than 20 bank combinations have been announced since June. But mergers have spread to the Northeast. And that is Just the beginning. Dozens of other states have passed laws that will allow banks from specific states to enter next year. "We will see more regional relationships develop." predicted John G.

Medlln. Wachovla's genie Is out of the bottle, and it cannot be put back." By ERIC N. BERG NEW YORK TIMES New York When bankers from across the country gathered In New Orleans last month to attend the American Bankers Association convention, the hot topic of conversation was not the Latin debt crisis, or even the health of the economy. It was Interstate banking and the frenzy of bank mergers that was set In motion by a Supreme Court decision last spring. That decision, which allowed banks to merge across state lines on a regional basis, has already touched off dozens of proposed mergers and set the stage for an even greater number.

But criticism is surfacing. It ranges from Wall Stree analysts' claims that merger prices have been wildly expensive to predictions that promised economies won't materialize. For example, banking experts say, while the cost of some services, such as electronic processing of credit card transactions, may fall with increased volume, other expenses, such as manual sorting of checks, Increase as volume rises. Indeed, some Investors could suffer. Shareholders have loaded up on regional bank stocks on the assumption that they will be taken over.

But even bankers Involved with the mergers agree that the trend could come to a grinding halt. Making regional interstate banking possible has been state legislation that circumvents the federal prohibition of Interstate banking. In effect, what a state Hoosier Dow rises to new high on strength of oil news ASSOCIATED PRESS New York The stock market swept ahead Friday, carrying the Dow Jones Industrial aver-age to a new high amid hopes for lower oil prices and interest rates. '( The Dow Jones average of 30 Industrials rose 15.94 to 1.390.25. extending its gain for the week to 33.73 points.

The' average's previous closing high' had been 1.375.57 on Wednes-day. Volume on the New York Stock Exchange came to 129.36 million shares, up from 121.53-.. million shares Thursday. The NASDAQ composite in- dex for the over-the-counter market gained 1.57 to 294.11. At the American Stock Exchange, the market value index closed at 229.37.

up 0.76. Amex volume slipped to 7.53 million shares from 7.83 million shares Thursday. Analysts attributed buying to news accounts of a television Interview Thursday in which the oil minister of the United Arab Emirates said the pricing structure and production quotas of the Organization of Petroleum Exporting Countries had virtual- ly collapsed. That was taken as a sign that the alliance of oil producers might be unraveling. Some observers were skeptical that his remarks were a rell-.

-able signal that OPEC's prob- lems had reached a critical stage. Most analysts agree that If. OPEC should fall apart. It would be a mixed blessing. But it would stand to benefit overall economic growth In the U.S.

economy and strike another blow against Inflation. Jerome Hinkle of Sanford C. Bernstein Co. called the market "very strong" and said it took Its cue from the bond market, which has been rallying; since Tuesday. Hinkle said that If the market weakens, stocks follow suit before finding support 1 the 1.350-lcvcl on the Dow.

Shares of leading airlines. -which are large consumers of fuel. rose. AMR gained 1 to 39: Delta Air Lines lib to 38'A. and UAL to 48.

By contrast, energy stocks mostly lower. Amocot 'dropped 'i to 67, and Mobil to 31. An exception was Exxon, up Va at 55 'a. Exxon raised Its dividend this week. I II, 1 I I 7 I I I ASSOCIATED PRESS It's all in the wall FROM STAR WIRE SERVICES OPEC pricing ploy A leading Arab oil minister's statement that each OPEC member is free to set its own oil prices was calculated to Jawbone non-OPEC producers into Joining forces with the cartel to avert a potential price collapse, analysts said.

United Arab Emirates Oil Minister Mana Saeed al Otabia told the state-run Abu Dhabi television late Thursday that "from now on each producer Is free to define Its production quota and sell it at any price it sees fit in the world oil market." The Interview was taped three weeks earlier In Morocco. Spot prices for crude oil sold to the highest bidder dropped about 10 cents a barrel on the European market Friday in reaction to Otaiba's comments. Revlon takeover near Pantry Pride Inc. neared victory In Its hostile battle to acquire Revlon Inc. for $1.65 billion, and Revlon said It was preparing for "an orderly transition" to Pantry Pride ownership.

Pantry Pride emerged the apparent winner of the bitter three-month fight after the Delaware Supreme Court effectively blocked Rev-Ion's plans to be acquired by Forstmann Little an investment firm. Steel agreement OKM European steel Imports will be held to 5.5 percent of the U.S. market in a United States-European Economic Community agreement that "will preserve the Integrity of the president's steel program," the nation's trade chief announced. U.S. Trade Representative Clayton Ycut-ter praised officials of the 10-nation ECC for voluntarily agreeing to restrain steel shipments.

"This Is a major accomplishment for the president's steel program as well as a major step forward for trade relations between the United States and the EC." Pasta tariffs raised A trans-Atlantic "pasta war" erupted when the United States sharply raised Import tariffs on pasta imports from Europe to protest European Community trade policies that curtail U.S. citrus exports. The EC responded by slapping higher Import duties on U.S. lemons and walnuts. "I deeply deplore the American decision to tax heavily Imports of pasta," EC external relations commissioner Willy De Clerc said In a statement.

"This amounts to a virtual embargo which severely hits a Community Industry that Is particularly Important for one member state Italy." U.S. Trade Representative Clayton Yeuttcr blamed the EC for the dispute. Some meal prices fall Restaurants that serve alcoholic beverages charged diners 12.7 percent more last year than In 1983. while those serving food only decreased their checks 1.2 percent, an annual report of American restaurant operations reveals. The average check In 1984 for restaurants serving food and alcoholic beverages was $10, up from 1983's $8.87.

The average check for food-only restaurants In 1984 was $3.44. down four cents from 1983's check, the report by La-vcnthol Ilorwath, a public accounting firm, said. Indiana National completes merger Indiana National Corp. an nounccd Friday that the acquisition of Lafayette National Dank has been completed. The merger with the Lafayette bank was announced In May.

The two banks were correspondent banks. Indiana National paid $29.8 million for 200,000 shares of Lafayette National Corp. stock, or $149 per share. Indiana National paid for the merger by Issuing 408,243 shares of stock, valued at $47,825 per share, and with $10.3 million in cash. An Apple Computer Co.

employee opens the door of the world's first pre-engineered all-plastic building at an Apple facility in Pescadero, Calif. The building to be used for testing new-generation computers is made entirely of plastic, which allows engineers to measure frequency of waves generated by computers without interference from electro-magnetic waves. infrastructure judged poor But. he said, "One thing you can say Is that by and large, Indiana appears to be at the bottom or near the bottom In support of Its water and sewerage Infrastructure." He said, however, that the state Is In a position to take advantage of numerous technological advances occurring In the field, ranging from computer technology to new design standards. Marcus noted that a study he oversaw In 1984 forecast a $28.3 billion shortfall in resources available for highways, airports, public transportation, water systems and sewage treatment between 1982 and 2000.

But. he said. "We're dealing with Indifference, Indifference of a massive nature. In which llooslers are saying: 'What I have Is adequate unless somebody else By ERIC B. SCHOCH STAR STAFF WRITER Indiana Is suffering from deterioration of its water and sewer facilities and Is spending significantly less than most states on the problem, a Purdue University professor said Friday.

On the other hand, Indiana appears more financially capable of tackling the problems than other states, which are running up against debt limits, said Mark Houck, professor of civil engineering at Purdue University. Meanwhile, the state Is well-situated to be competitive In trucking and other transportation Industries, but It and other Midwestern states are losing ground to other regions In producing Jobs In such Industries, said Roger Stough, professor In the School of Public and Environmental Affairs at Indiana University. There's no point In discussing water, sewer, transportation or other such "Infrastructure" problems as long as Hoosier political and business leaders are unwilling to pay the costs of repairing them, said Morton J. Marcus, research economist at Indiana University- The three were among speakers Friday at a daylong conference on the state's Infrastructure sponsored by the Indiana Economic Development Council and Indiana Infrastructure Inc. Houck warned those In attendance at the Howard Johnson's Motor Lodge.

501 West Washington Street, that the data on sewer and water projects Is "limited and of questionable accuracy." offer air bags on cars Ford may ORLANDO SENTINEL Orlando. Fla. The former chief of the National Highway Traffic Safety Administration under President Jimmy Carter said here Friday that the Ford Motor Co. would announce next week Its plans to offer driver-side air bags as optional equipment on some cars. Joan Claybrook.

now president of a Washington-based consumer law group called Public fUnemploymenJLfiate Breakdown! Aduli Men: IX Unchanged 1' 1 I SU Adu" wmn: ZxVl 1 Whiles: I 8ln" JJy Unchanged I f' rl Vj I I I ft V'V I I 7.1 Rj Hisponlcs: offer air bags on the Ford Tempo and the Mercury Topaz. The expected cost is 8700 to $800 a vehicle for the optional equipment. In a related development. Mercedes-Benz, which has of-' fcrcd driver-side air bags on some models, announced It i would offer the automatic crash cushions on all Its 1986 cars. That makes Mercedes the first company to make air bags standard equipment.

Citizen, said Ford would become "the first American car manufacturer to make air bags available to the general public." Speaking to the Florida Academy of Trial Lawyers at the Bue-na Vista Hotel. Claybrook said Ford's announcement was expected Monday. Ford officials would not comment on Claybrook's statements. But a NIITSA spokeswoman. Rosalyn Kaiser, said she heard the company was planning to slon that was sold last year by Lacy Diversified Industries Inc.

to the Boise. Idaho-based firm. Jack J. Myers, International representative for the United Paperworkers, said the contract dispute centers on pension and Insurance Issues, as well as on contract language changes pro-, posed by the company covering seniority, overtime, vacations and holidays. James Yarnell, general man Boise Cascade paperworkers on strike LLM A Teenagers: i iTi i UPI Graphic ager at the plant, said non-union personnel are operating the corrugated-box manufacturing plant.

"We have been able to service our customers adequately. We would like to see the workers back as soon as possible." Myers, however, said neither side had attempted to schedule new negotiations and that he had "no hopes of getting back together with them" soon. Ninety-one workers at the Boise Cascade Corp. plant. 2900 North Franklin Road, are on strike following the expiration of their two-year contract.

The strike began at midnight Tuesday after members of United Paperworkers International Union Local 154 rejected a contract proposal earlier that day. The plant was part of the U.S. Corrugated-Fibre Box Dlvl- Holding steady The civilian unemployment rate was 7.1 percent in October, the same as in September, the government said Friday. Analysts said the unchanged rate indicated a sluggish economy. it i.