The Indianapolis Star from Indianapolis, Indiana • Page 23

4.52 500 1,104.61 1.63 Bloomberg Indiana 346.49 The Indianapolis Star www.lndyStar.com Saturday, October 27, 2001 Section InfoLine: 624-INFO (4636) Closed steel minimill may get new ownerC2 Concert cancellations take toll on entertainment industryC8 82.27 Dow Jones Industrials 9,545.17 T6.51 Nasdaq composite 1,768.96 INSIDE LocEdvsecil WterHn mm rated 3S gist go-ahead to build 3,000 supersonic F-35 jets with radar-evading capabilities. Roche wouldn't release details of why Lockheed was picked but said during the review process Its proposal "emerged continuously as the clear winner. We looked at performance. There was no aesthetics. There was no beauty contest." He applauded both companies' efforts and said they will be briefed in detail on the decision In coming weeks.

Lockheed chairman Vance Coff-man said his company would honor the trust shown by the Pentagon "by building a truly remarkable, capable and affordable multirole fighter, on schedule and on cost." Boeing chairman Phil Condit said the contract loss will cause the company to lower its revenue fore- Pentagon's choice to build the radar-evading fighter could be worth $200 billion to company. By Suzanne Gamboa ASSOCIATED PRESS WASHINGTON The Pentagon chose Lockheed Martin Corp. over Boeing Co. on Friday to build its high-tech, next-generation fighter Jet, a contract that will be worth at least $200 billion, the largest in Defense Department history. Air Force Secretary James G.

Roche announced Lockheed and its partners were the winners of a $25 billion engineering and manufacturing development contract that eventually Is expected to lead to the cast by $1 billion next year, to about $55 billion. He expressed hope Lockheed would seek help from Boeing for the project. Lockheed said that's a possibility. The F-35 will replace the aging fighter jets of the Air Force, Navy and Marines, albeit with modifica RESIDENTIAL PROJECT HITS STRIDE River's Edge townhomes under way -k' am i inn i -jf 1 1 1 5T, Ui -MX imipiirtF i 11 nnn Ways to get a handle on your business. Coming Sunday General Motors Automaker executes a turnaround.

Dally theme pages Monday: Indianapolis Inc. Ttwsday: Technology Wednesday: On the Job Friday: Your Money Note to readers Starting today, we have made some changes to the stock market tables that are published in the Saturday and Sunday Business sections. The expanded weekly stock tables that had been running on Sunday have been moved to Saturday in place of the daily stock listings. These tables, which provide the Friday closing price like the daily tables, also give information on stocks' performance during the previous week. As a result, there will be no stock market tables in the Sunday paper.

The mutual fund listings will remain the same on both days. The reason we're doing this: We want to be able to provide more room for stories in the Sunday Business section, while eliminating the redundancy of running similar stock listings on both Saturday and Sunday. Home sales in area fall modestly in September By Gargl Chakrabarty STAFF WHITER A slowing economy, compounded by eroding consumer confidence led to a decline In local home sales In September, but Realtors remain optimistic about central Indiana. Local home sales in the nine-county area dropped 10 percent to 1,612 last month, compared with September a year ago, signaling an economic slowdown that leaves experts divided about the cause. "Historically, "i wouw say the Sept.

11 a Seasonal attacks are slowdown in mostly resPon- sible for Sep- SaleS TOT tember's slow Smrfemher sales," said H. James Litten, president of is not Unexpected." F.C. Tucker residen- tlal real estate H. James Litten, services. "Up F.C.

Tucker Co. until Sept. 11. the home sale numbers were almost the same as last year. I think the attacks had a huge impact on consumer confidence." In contrast, others believe the terrorist attacks only exacerbated the weak economy but did not cause the lag in sales.

"I don't think Sept. 11 alone is to blame," said Steve Sullivan of the Metropolitan Indianapolis Board of Realtors. The overall economy Is jittery." Uncertainty about Jobs is one of the main factors for the slump, he added. Local home sales stood at 297 units during the first 11 days of September, compared with 393 a year ago a drop of nearly 25 percent. Sales actually picked up after the attacks, helping to lower the decline to only 10 percent, Sullivan said.

See HOME SALES Page 2 New contract: The Pentagon awarded Lockheed Martin its F-35 contract. Shown is Lockheed's Joint Strike Fighter. Associated Press tions to fit the needs of each branch. It also will be used by Britain's Royal Air Force and Navy, which want 150 of the planes. Britain has committed $2 billion toward development.

The first 22 planes are to be delivered In 2008. Staff Photo Rob Goebel Inner-city redevelopment The 20-acre neighborhood, located between the White River on the west and the canal on the east, is set to add another 82 townhomes to the existing 14 townhomes. The first phase, comprising 67 single-family homes, has been completed. The $28 million project is one of the city's largest urban residential neighborhoods. 38th St.

A Crown Hill 32nd St 30th! 29th Source: Riverside Partners LLC Staff Graphic Angela Edwards Marlon Co. 32nd St 30th St. River-i iMPTiVlf iTl i side rTiv" ffmTt Tl Pak Burdsal Pwky. 21st St, 12 Mile Lockheed and Boeing waged a long and costly advertising and lobbying campaign for the contract, which establishes Lockheed as the nation's sole fighter jet manufacturer. Lockheed, based in Bethesda, has said the contract would add up to 9,000 jobs at its Lockheed Martin Aeronautics division in Fort Worth, Texas, which currently employs 11,000.

Employees there gathered to watch the announcement and burst into cheers when Lockheed was chosen. Lockheed will develop the Jet with Northrop Grumman Corp. and BAE Systems of Great Britain. Work will be done at facilities in 27 states and Great Britain, with major subassemblies in El Segundo, See LOCKHEED Page 2 Gasoline prices fall below $1 across city Gallon in Indianapolis averaged $1.12 Friday as cost at pump has declined since Sept. 11.

By J.K. Wall STAFF WRITER It was a rare site. For the first time in a long time, the top set of white numbers on a few city gas stations' signs had only three digits Instead of four. "99.9," read the sign at the Phillips station at 2301 Madison after manager Ron Howson changed the price Friday morning. The Near-Eastside Speedway on East Washington Street had the same price.

"I can't remember the last time (it was this low)," cashier Julie Pierce said. "It's been a few years, hasn't it?" said Howson at the Phillips station. A handful of stations around Indianapolis dropped their prices below $1 per gallon this week. The city average on Friday was $1.12, according to Oil Price Information Service. That compares with $1.45 a month ago and $1.54 a year ago.

The state average mirrored the city at $1.12 per gallon. That's the third-lowest state average in the country, according to Greg Seiter, spokesman for AAA Hoosier Motor Club. Nationally, prices are the lowest they have been since December 1998. Prices have fallen since Sept. 11, gas experts say, as demand has dropped off and the price of crude oil plunged.

But prices in the city continue to be stratified. Howson dropped Phillips' prices after the Kroger and Kmart stations, also on the South-side, dipped below $1. But many Northside gas stations had regular gas for $1.19 a gallon. Customers took advantage. Cars were lined up at the Kroger station.

And at the Near-Eastside Speedway, Pierce said she had sold more gas than usual since the price dropped to $1 Thursday afternoon. Pierce herself filled up her tan Chevy Silverado. "It only took $10," Pierce said. "I think this is fantastic." Contact J.K. Wall at 1-317-444-6287 or via e-mail at jk.wallindystar.com ml "ifWrCr Final phase: A worker uses earth-moving equipment at River's Edge at Riverside Park, one of the city's largest urban residential neighborhoods.

Completed homes sit in the background. Developers tackling last part of development that's aimed to revitalize Near-Northside area. By Gargl Chakrabarty STAFF WRITER At last, the end could be in sight for construction at River's Edge. The final phase of the $28 million residential development In limbo for four years now is scheduled for completion next year with the construction of 82 townhomes. Developed by a corporate partnership about seven years ago, the project alms to revitalize the Near-Northside community.

But the final phase had been stalled since 1997 as city leaders negotiated with the U.S. Navy for the latter's parking lot, which lies on the edge of the development. Negotiations hinged on a promise by the federal government to swap that parcel for a strip owned by the city's Department of Metropolitan Development. City leaders say those negotiations have been completed. The issue is settled now," said River's Edge project manager Steve Scott.

The deeds of the parking lot will be transferred to the corporate partnership in a few weeks." The transfer of ownership paves the way for construction of the townhomes. City leaders gathered Friday to kick off the final phase, which is expected to be completed by mid-2002. The 20-acre development is between White River on the west and the canal on the east, a site formerly occupied by Riverside Amusement Park. After the park closed in 1970, the land stood vacant in an area where 30 percent of the residents lived at poverty level. "We were trying to do something in the northwest area for the past 40 years," said Carl Lile, executive director of United Northwest Area Development a member of Riverside Partners LLC, which Is developing the project.

This development will bring back the people who'd left the inner cities." Besides UNWAD, other corporate members of the coalition are Citizens Gas Coke Utility; Clar-lan Health; Scott Hilllard Kosene, which is managing the project; and Dura Builders, the construction firm. "River's Edge is the result of corporate Involvement in commu- Staff Photo Nick Short Increment financing district," Scott said. Tax revenues from this project will pay back the city's loan." The corporate partners have pledged additional money to build complementary infrastructure such as sidewalks, utility connections and other site developments. See TOWNHOMES Page 7 At pond's edge: Finished homes sit across a pond from the site of future River's Edge residences near West 30th Street and White River Parkway East Drive. The final phase of the $28 million development is scheduled for completion in 2002.

nlty development," Scott said. "Community redevelopment can be difficult. But it can be done with good corporate citizens, and a healthy public sector-private sector partnership." The city is an Informal partner, having loaned $900,000 to build the streets and curbs in that area. "It (the project) is part of the tax This love-hate relationship can yield progress for our state Editor's Note: Mark Land (s the assistant managing editorbusiness news at The Star. Beginning today, his column will appear each Saturday in the Business section.

he complicated and I somewhat odd dance Hon report card. While the overall grade was mediocre a when compared with other states the grade for the educationalwork force development component was an abysmal D. The report, compiled using data from the Hudson Insti- 2k plenty of work remains to be done. That the chamber's carrot-and-stlck approach to moving the bar higher on education publicly converged on a single day made for an interesting juxtaposition (and probably some interesting dinner conversation in the Sagamore Ballroom). It's also instructive because it shows that while the relationship may be painful at times, business and educators realize they are in this together.

It's also heartening to see a measure of respect between leaders in both camps. Who knows? With that as a foundation, maybe there will be less stepping on toes and more beautiful music in the future. Mark Land lead a process that has "created world-class standards." It added, The stage has been set for widespread K-12 improvement." In a matter of hours the chamber chid-ed the educational system as being woefully out-of-step, only to later do a public waltz with two of Its leaders complete with smiles all around. So which is it? A state education system fraught with problems that can't produce enough college graduates? Or one that has turned the comer with the help of visionary and committed officials such as O'Bannon and Reed? Perhaps a bit of both a fact O'Bannon alluded to in his short acceptance speech, when he credited Indiana schools with getting better but cautioned that Chamber President Chris LaMothe has made no secret that he thinks the state needs to aggressively upgrade the quality of Its education, and he often has made his point in blunt terms. Skip ahead to Thursday evening at the Indiana Convention Center, where the chamber hosted its annual awards dinner.

Only three awards are given, including one for "Government Leader of the Year." This year's co-winners: Gov. Frank O'Bannon and Superintendent of Public Education Suellen Reed for their work on the Governor's Education Roundtable. In lauding the two for their work on the roundtable, conceived in 1998 and formally established in 1999, the chamber credited O'Bannon and Reed with helping 1 between the state's business community (read: Indiana Chamber of Commerce) and its educational system (read: elected and appointed officials charged with overseeing the teaching of our children) was on full display Thursday. Early in the day the chamber released tute, lambasted the state for poor SAT and ACT scores, its low percentage of college graduates and a paucity of two-year college students. The theme is hardly new for the chamber, which sees reversing the so-called "brain drain" of native Indiana college graduates as the central component to improving the long-term business health to its board members and community Contact Mark D.

Land at 1-317-444-6280 or via e-mail at mark.landindystar.com leaders its second annual business condi- of the state. mm.