Arizona Republic from Phoenix, Arizona • Page 41

THE ARIZONA REPUBLIC 1j ffPm STOCKS STUMBLE Decliners outnumber gainers 2-1 on the New York Stock Exchange. C3. CLASSIFIEDS: AFTER C7 WEDNESDAY DECEMBER 15, 1993 Editor, Don Nicoson 271-8142 "TV a New owner for Fiesta I SC0TTSDALE PHOENIX I Tri-City TCMPE MESA Mall GILBERT Major expansion planned at complex Main St. CHANDLER Dow falls The stock market ended broadly lower Tuesday amid rising interest rates and some sliehtlv negative news DOW JONES INDUSTRIALS on the economy. The Dow Jones industrial average fell 21.80, points to 3,742.63.

Story and chart on "Fiesta Mall is a different story," he said. "It is owned by extremely strong ownership with strong financial resources, and we are going in there with a definite plan in hand." Kraus directed the purchase of Fiesta Mall on behalf of public pension funds and endowments. He declined to reveal the names of the retirement plans. The seller was Fiesta Mall Venture, an Arizona general partnership managed by Grosvenor International. Fiesta Mall Venture is composed mainly of British pension funds.

Grosvenor International is controlled by Englishman Gerald Grosvenor, one of the world's richest men. The sale had been rumored among Valley retail and real-estate business people for the past two or three months, but it was not signed until Dec. 7. Kraus said it wasn't hard to decide to buy Fiesta Mall after looking at the demographics of See FIESTA, paged Broadway Rd. GC 7S Pueblo Ave, mfm Fiesta Mall Southern Ave.

Mesa Cc7eof I VI km By Phyllis Gillespie The Arizona Republic Fiesta Mall in Mesa has been purchased for $124.3 million by the Real Estate Counsel of Dallas, which plans a major expansion at the 14-year-old shopping center. Plans are to expand the 1 million-square-foot, two-story, enclosed mall to take advantage of the continued population growth in the southeast Valley, said T. Gregory Kraus, director of Western acquisitions for the Group, parent company of Real Estate Counsel. Group also operates Park Central Mall in central Phoenix. A two-store extension of Fiesta Mall is planned between the existing Robinson's-May and Sears stores, Kraus said.

already is talking with department-store owners to find a fifth major tenant to anchor that extension, he said Tuesday. "I would ask that we not be judged by Park Central," said Kraus, referring to the 36-year-old shopping center, which has been without two of its three anchor tenants for more than three years. Instead, he pointed to $170 million redevelopment of Tysons Corner Center, which doubled the size of the now 1.9 million-square-foot mall in McLean, Va. That expansion brought the first Nordstrom store to the East Coast and won the Urban Land Institute's 1992 Award of Excellence for Rehabilitation. Park Central is managed by but has multiple owners, Kraus said.

has offered several redevelopment plans for the mall but has yet to gain a consensus from the owners, he said. The Arizona Republic fmmimmmmmmmmmmmmmmmmm State to free Charter Title accounts (V v. America West flight attendants and other employees of the Phoenix airline are all smiles during a showing of their new uniforms at Terminal 4 at Sky Harbor International Airport. It's the first time the carrier has changed its uniform styles and colors in its 10-year history. By Barbara Deters The Arizona Republic Homeowners who were making mortgage payments through Charter Title Agency Inc.

and found their accounts frozen when the company was seized by state regulators are expected to have their accounts cleared within a couple of weeks. Dick Houseworth, superintendent of the state Banking Department, said Monday that the agency plans to seek court approval Jan. 7 to sell accounts involving 239 loans for which Charter Title was a servicing agent. "Those accounts essentially were not disturbed," Houseworth said. He also said people who sent their mortgage payments in after the title agency was seized Oct.

25 will get their checks returned soon. However, there are 4,000 other Charter Title customers who don't know the status of their money, A 5' WL 0 Suzanne StarrThe Arizona Republic Page C3. Auto, truck sales rise Sales of domestically built cars and trucks rose a modest 5.3 percent in early December, automakers reported Tuesday. The Big Three General Motors Ford Motor Co. and Chrysler Corp.

reported a 4.5 percent improvement, most of the gains coming in the light-truck segment they dominate. Japanese automakers that assemble vehicles in the United States posted a 12.8 percent gain, due largely to the success of such makes as the Mitsubishi Galant, Nissan Altima and Mazda 626, whose predecessors were built in Japan and were counted as imports. U.S. bond sales gain Sales of U.S. Savings Bonds rose 1.2 percent in November from the previous month but were 64.5 percent lower than a year ago, when they carried a higher interest rate, the Treasury said Tuesday.

Sales totaled $787 million, up from $778 million in October. But they were down from $2.22 billion a year ago. Sales have slipped most months this year because the rate on the securities was reduced in March to 4 percent from 6 percent. Colt investment withdrawn Gunmaker Colt Manufacturing Co. has been dealt another blow in its struggle to emerge from bankruptcy protection.

On the eve of Tuesday's scheduled court hearing on final approval of Colt's reorganization plan, Interlaken Investment Partners partnership withdrew its $32 million investment in the historic gunmaker because of "animosity and antagonistic behavior" among various parties in the case. The collapse of the deal leaves the future of Colt and its 850 employees up in the air. Voice mail put on hold Owens-Corning Fiberglas Inc. of Toledo, Ohio, is joining a handful of companies putting their telephone answering systems on hold because people want to talk to people instead of machines. Chairman Glen Hiner got tired of calling employees only to hear a recording of their voices.

He figured that if he found it frustrating, so would customers. So he's ordered his workers to use their voice mail only when they're away from their desks. Development aid approved Loans, grants and tax credits totaling $1.7 million have been approved for three economic-development projects in Graham County, the Arizona Commerce Department said Tuesday. They are: $788,290 in tax credits toward construction of 42 low-income apartment housing units costing $1.8 million; $632,000 in housing certificates and vouchers to assist about 60 low-income renters; and a $200,000 loan and $150,000 grant from the state for construction of a science and cultural facility in Safford. At a glance Host Marriott Corp.

on Tuesday suspended negotiations to acquire Cigaho-tels SpA of Milan, Italy, saying it was not provided access to information it needed to meet offers from competing companies. Corp. said it will return to the South African car-rental market next year after a five-year absence. The Boeing Co. said it has awarded a $39.5 million contract to Deutsche Aerospace AG of Germany to help it upgrade NATO aircraft with better detection systems.

America West dons new garb because their loans had not been completed. Their money remains in escrow accounts. Officials were able to start a review only a few days ago of Charter Title's remaining 4,000 escrow files, Houseworth said. "We have to go through every one of those files. I can't tell you how long it'll take," he said.

Charter Title was seized Oct. 25 after state banking officials found more than $4 million missing from escrow accounts. The state had issued an order Oct. 22 forbidding the title agency from conducting any financial transactions. cc We have to go through every one of those files.

I can't tell you how long it'll take. Dick Houseworth SUPERINTENDENT OF THE STATE BANKING DEPARTMENT By Ken Western The Arizona Republic America West Airlines is making a strong financial statement this year with three straight profitable quarters and a fourth likely to be on the way. Now, the Phoenix-based carrier wants to follow up with a fashion statement. After more than a decade of wearing burgundy and taupe, employees at America West are donning new uniforms in a move that "signifies how well the airline is doing," said Mike Conway, the airline's president and chief executive. Starting today, passengers will be greeted by flight attendants, customer-service representatives and other employees wearing stylish uniforms in navy and sage.

They had been wearing the same style of uniform since 1983. Early reviews from those who will be wearing the uniforms have been glowing. "We love them," said Patrick Curran, chairman of the flight attendants' advisory board. This is expected to be the most profitable year ever for America West, which is operating under Bankruptcy Court protection. The airline has posted profits of $26.8 million for the first nine months of 1993.

Its previous most profitable year was 1989, when it made $20 million. America West is spending about $1.5 million to outfit 4,000 of its 10,000 employees. Retail sales rose 0.4 in November RETAIL SALES Monthly, change adjusted for seasonal, trading-day variation. Up 0.4 The state Attorney General's Office is investigating the disappearance of the money. No charges have been filed.

Terry Petty, one customer caught in the middle of the Charter Title mess, said he can't understand why he cannot get his money back. Petty said he gave Charter Title a cashier's check for $1,100 on Oct. 22, the day the state forbade any financial transactions. The money was supposed to be used to refinance Petty's Glendale home. Under Arizona law, homeowners have a right to rescind a refinancing contract within three days of committing to the action.

With that in mind, Petty said, he talked to state banking officials at Charter Title's closed offices and told them he wanted to rescind his deal. His bank hasn't released any funds to Charter Title, but it won't release the money to him, either, Petty said. "I don't see a reason anything should happen to me. They should just give me my money back," he said. "I just wish they'd hurry up." Houseworth said that as unfortunate as it may sound, Petty and anyone else who has money in Charter Title will have to file a claim against the agency with the state.

The number to call for claim forms is 264-5600. By Dave Skldmore The Associated Press WASHINGTON Retail sales rose for the eighth consecutive month in November as home-related purchases kept cash registers ringing. Sales were up a modest 0.4 percent to a seasonally adjusted $178.9 billion on top of a strong 1.8 percent surge in October, the Commerce Department said Tuesday. Although department-stores receipts were disappointing, furniture sales recorded the biggest increase in 10 years, and building-supply centers and hardware stores did brisk business. Economists linked the home-related purchases to mortgage rates near 25-year lows.

"Clearly, this report is more evidence that the interest-rate reductions made possible by the president's economic program are fueling recovery," Commerce Secretary Ronald Brown said. However, a separate report on trade sounded a dissonant note. The current-account deficit, the broadest measure of U.S. trade, widened by 3 percent to $28 billion in the July-September quarter, its highest level since the final three months of 1988. The current-account measure includes investment flow and trade in services in addition to trade in merchandise.

Economic slumps in Japan and Europe have slowed U.S. exports. At the same time, as the U.S. economy improves, Americans are buying more goods, both imported and domestic. The latest retail report was in line with other signs that the final three months of the year will prove to be 1993's best quarter, with the economy growing at a 4 percent annual pace.

llllla DJFMAMJ JASON Source: Census Bureau Knight-Ridder Tribune Compiled by Frank Turco from reports by The Arizona Republic and The Associated Press. Rookie director defends Commerce Department BUSINESS DATABANK Tuesday's prices in New York trading as of 4 p.m. EST. ONE U.S. DOLLAR EQUALS: 11 0 mm -V J.

WANUEIL German marks 1.7150 Up from 1.7080. Canadian dollar 1.3339 Up from 1.3273. Japanese yen 109.38 Up from 108.95. GOLD $387.00 a troy ounce. Unchanged.

SILVER $5,086 valuable tool for assessing the effectiveness of an agency," she added. Is the sky falling? A couple of items that flitted across my computer screen last week sent me scurrying to the window to see whether Chicken Little was on the loose again. First there was a wire-service report that "Robert Prechter, editor of The Elliott Wave Theorist, believes we are at the end of a 300-plus-year upmove. He foresees a plunge in the Dow Jones industrial average of 90 percent (no misprint). The eerily accurate nature of his predictions suggests that his current opinion be shared with our readers.

His forecast for a peak in the Dow made more than 10 years ago! calls for a top of 3,686, plus or minus 25 points, with a top target of 3,710.70." For what it's worth, the Dow hit 3,710.77 on Nov. 16. It has since closed as high as 3764.43. Then there was a long piece by Ravi Batra, professor of international economics at Southern Methodist University, that essentially seems to say free trade is responsible for an impending collapse of the world's financial system. Batra is the author of 77ie Great Depression of 1990, which has not yet materialized, and The Myth of Free Trade.

Talk on NAFTA impact With barely more than two weeks before the North American Free Trade Agreement goes into effect, World Trade Center Arizona is bringing in an expert to talk about its implementation and impact. Charles A. Gillespie director of the U.S. State Department's NAFTA Task Force, will highlight the program, which starts at 7:30 a.m. Friday at The Ritz-Carlton.

Gillespie also has served as ambassador to Chile and Colombia, giving him a broad perspective of Central and South America. "We hope to bring additional experts to the state, but also we will be concentrating more on 'hands on' help for companies," explained Jeanne Patterson, vice president of the Trade Center. "And in February, we will be bringing up a reverse trade mission of Mexican companies to do business with Arizona companies in the fields of construction, computers, service providers and environmental technology." Reservations for the Friday program are $25 for Trade Center members and $30 for non-members and may be made by calling 495-6480. Naaman Nickell's column appears on Sunday, Wednesday and Friday. Sara Goertzen has been on the job as director of the Arizona Department of Commerce only about a month, but she already has had to justify its existence to a joint legislative committee.

The occasion actually was a "sunset" review of the department last week to determine whether it had achieved its goals and lived up to its responsibilities. And whether it should continue in existence. The review is required by the legislation that established the department. The committee reviewed a state auditor general's report, which was issued earlier this year, and took testimony from Goertzen and other witnesses. Then the committee gave Commerce a favorable endorsement.

Sen. Manuel "Lito" Pena, D-south Phoenix, who has been a critic of Commerce on occasion, said he is satisfied with Goertzen's early efforts to ensure "real accountability" in the department. i Republic Columnist a troy ounce, "WW Down from $5,127. OIL $14.52 a barrel of light, sweet crude The extension still has to go through the full legislative-approval process next session. Goertzen said the results of the review underscored the significant role the department now plays in economic development throughout the state.

"The entire process, combined with the auditor general's report, is a for January delivery. Unchanged. FEDERAL FUNDS RATE: 2.9375 The Arizona Republic.