Reno Gazette-Journal from Reno, Nevada • Page 30

Today's tip MS Realty Central's new building at 1040 El Rancho Drive in Sparks will be dedicated at 10:30 a.m. Sparks Mayor Pro Tem Shirlee Wedow 10B Friday, November 7, 1986 will be on hand and the public is invited. Reno Gazette-Journal 1,900 level too much: Marketers prepare to grow old with Yuppies By Patricia GallagherGannett News Service CINCINNATI Call them what you like Baby Boomers, Yuppies, post-World War II offspring people born between 1945 and 1965 are potent market shapers. "They need to buy everything," said Roger D. Blackwell, consumer behavior professor at Ohio State University in Columbus.

"They have to spend and spend now." Recognizing that, manufacturers from car makers to consumer goods producers continue to stamp out merchandise targeted for that great and vast Yuppie-dom. But what will happen as Baby Boomers grow old? Are today's manufacturers preparing for tomorrow's older consumer? Those who study the field said they see definite movement toward that. "It absolutely will not be ignored," John Walton, professor of marketing at Miami University, Oxford, Ohio, said of the demographic trend. "Any company who ignores it is not a very forward-thinking company." Walton said projections show that, nationally, about 30 percent of the population will be 50 or older by 2020. "The marketers will seek them out," he said.

In fact, they already have. For example, Proctor Gamble Co. has about a half dozen products targeted specifically to older people. It added most last year when it acquired Richardson-Vicks Inc. and its line of denture care products.

also was one of the first consumer goods companies to develop an adult diaper when it brought out its Attends brief in May 1978. With roughly half of all nursing home residents suffering from some degree of incontinence, Attends is definitely geared toward the gray end of the market. Some manufacturers are learning that products designed for older consumers must be marketed carefully, said Lyn-ette Unger, an associate professor of marketing at Miami University. Unger cites the now-infamous H.J. Heinz Co.

example. The firm, maker of baby foods and other food products, fell on its face a few years ago when it introduced Senior Foods, a soft food for older people. The company's TV advertising campaign featured seniors in high chairs. Older people might want to buy soft food, "but they don't want to have it advertised for them," Unger said. "They think of themselves as individuals as we all do." Dow falls 7.45 points NEW YORK Stock prices sagged Thursday as the market ran into resistance from sellers after reaching a two-month high the day before.

The Dow Jones average of 30 industrials, down more than 20 points at its midday low, closed with a 7.45 loss at 1,891.59. The average had risen 21.23 points in the week's first three sessions. In the overall tally on the Big Board, declining issues outnumbered advances by about 7 to 5, with 903 down, 638 up and 452 unchanged. Analysts noted that the market's recent advance began to bog down Wednesday when the Dow Jones industrial average reached the 1,900 level. Some traders apparently concluded that 1,900 would prove to be a difficult hurdle for the market to clear.

Consumer debt in big rise WASHINGTON Americans, borrowing heavily to finance new car purchases, took out $8.37 billion more in consumer debt than they paid off in September for the biggest advance in a year, the government reported Thursday. The Federal Reserve said the gain meant consumer credit was growing at an annual rate of 17.4 percent in September following much smaller increases of $3.39 billion in August and $5.56 billion in July. Most of the strength came from a rise in auto loans as consumers borrowed heavily in response to attractive cut-rate financing deals offered by automakers seeking to reduce high inventories of unsold 1986 model cars. GM says if will close 1 1 pOantts i i i. i i warn v-rosseuazeae-Journal PREPARING FOR OPENING: Co-owner Gus Pappas No.

2 restaurant in Sparks Thursday. The eatery is expected stands in front of his new Landrum's Hamburger System to be completed in December. Second Landrum's to open in Sparks Japanese investors busy SAN FRANCISCO Japanese investment in U.S. real estate, which more than doubled last year and is expected to triple again this year to $4.5 billion, has increased with the purchase of a 50 percent stake in the Crocker Center. No price was disclosed for the sale, which was closed this week, according to documents filed with the San Francisco County Recorder's Office.

But real estate sources told the San Francisco Examiner the property's value was about $135 million, a slightly lower price per square foot than was paid when the four-parcel complex was sold two years ago. The seller was Prudential Insurance Co. of America, the nation's largest real estate developer. The buyer was Nissei Realty Inc, the U.S. operation of Nippon Life Insurance Japan's largest life insurance firm.

Utility OKs purchase LAS VEGAS Southwest Gas Corp. shareholders Thursday approved the acquisition of Nevada Savings and Loan Association. Approximately 94 percent of the shares voted at the special meeting were in favor of the acquisition. In a similar meeting Wednesday, 95 percent of Nevada Savings shareholders approved the acquisition. Under the agreement, 55 percent of the outstanding shares of Nevada Savings common stock will be exchanged for Southwest common stock at a ratio of 1.418 shares of Southwest common stock for each share of Nevada Savings stock.

The remaining 45 percent of the outstanding Nevada Savings stock will be purchased for $25 a share. China money office opens PEKING Shanghai opened a currency exchange center Thursday where foreign investors can exchange China's normally non-convertible renminbi currency for foreign currencies needed to purchase imports. The official Xinhua News Agency reported the center had four customers who traded funds worth $100,000 during its first day of business. We did a simple, old-fashioned study. We drove around the area and couldn't find a place to eat.

5 Gus Pappasco-owner Landrum's Hamburger System No. 2 Pappas several burgers with "Good Stuff" toppings and Pappas gave him two eggs and a bottle of Tabasco sauce. About 85 percent of Landrum's sales are wrapped up in chili cheese omelets. Publicist Andrew Barbano explained he thought it was appropriate to have "one of the giants'' in the chain-restaurant business "welcome one of the little guys." With construction beginning just three weeks ago, the restaurant is expected to be finished by mid-December. It will feature a U-shaped counter with 20 seats, restrooms and an ice-maker, which are innovations over the original Landrum's.

The restaurant is almost twice as large as the original with 782 square feet. But it will still look like a Landrum's, Pappas said. More than 29,000 employees to be affected by move DETROIT (AP) General Motors Corp. said Thursday it will close 11 plants employing more than 29,000 workers in the next three years to reduce overcapacity and cut operating losses. In a long-awaited announcement, GM Chairman Roger Smith said closing the three stamping, one body and seven final assembly plants in four states would reduce the automaker's fixed costs by $500 million a year.

"These actions are absolutely necessary to maintain our marketplace leadership and enhance the job security of the greater bulk of our workforce," added GM President James McDonald. GM suffered third-quarter operating losses of about $338 million. Officials at the General Motors distribution center on Vista Boulevard in Sparks were not available for comment Thursday. The plant closings were part of the first phase of a reorganization and modernization at GM, and other assembly, stamping, engine and component plants still are being studied, according to McDonald. "It's a very constructive move on GM's part.

I think as we go forward there will be further closings," said industry analyst Gary Glaser of First Boston Corp. in New York. Glaser said the closings would benefit the U.S. auto industry by helping balance the ratio between capacity and demand. Wall Street reacted positively to the announcement.

On the New York Stock Exchange, GM's stock closed at $74.25, up from $73.25 Wednesday. The 11 plants in Michigan, Illinois, Ohio and Missouri are older facilities, and most have been scheduled for shutdown for years as GM has invested in newer, more efficient plants and renovated some others. Assembly lines at the affected plants were shut down for about an hour Thursday morning so the closings could be explained to workers, most of whom were disappointed but not surprised. "We naturally regret this decision. We will make absolutely sure that all of our See GM, page 7B Reno firm hopes for large lottery equipment pact By Susan VoylesGazette-Journal The major supplier for the Illinois State Lottery will soon begin testing its equipment, which could provide a big payoff for Reno-based Syntech International Inc.

If Control Data Corp. and the Illinois lottery consider the tests successful, up to 2,500 player-activated terminals (PATs) worth $20 million could be ordered from Syntech, said Gordon Graves, the local firm's president. Syntech is the leading manufacturer of the new breed of terminals, machines that allow customers to buy lottery tickets without the assistance of a clerk. Syntech's machines are already used in Ohio and Massachusetts, the only large lottery states where the machines are in operation. The Illinois deal represents "the first time we have made a subcontract directly with one of our competitors," Graves said Thursday.

Syntech also makes terminals used by clerks. Published reports indicate up to 80 percent of the 22 states with lotteries intend to install the PATs within the next 18 months, Graves said. Illinois is one of the leading lottery states. Syntech, which is affiliated with International Game Technology, now employs 78 people in Reno. The Illinois order could add another 20 to the payroll, Graves said.

If all 2,500 terminals are installed, Syntech would have about $20 million invested in the manufacture and installation of the machines. It would receive a percentage from Contral Data of the gross receipts deposited in each terminal. The agreement provides that the first 500 terminals would be installed within 120 days of CDC's acceptance of the production models. By Susan VoylesGazette-Journal When the question of deciding where to locate a Landrum's Hamburger System No. 2.

came up, co-owner Gus Pappas looked to his stomach and his pocketbook. First, he looked at land a low-rent district would do to build a 20-seat restaurant, he said. Secondly, he looked to see if any other restaurants were in that area. The winner was a small piece of ground at 415 S. Rock Blvd.

in Sparks, next to Rick's Rock Bar. "We did a simple, old-fashioned study," said Pappas, who owns the two-store chain with C. Nicholas Pereos, a longtime Reno attorney. "We drove around the area and couldn't find a place to eat." Pappas showed off the new Landrum's Thursday. The original Landrum's diner, with its eight stools at 1300 S.

Virginia is a Reno legend. Guest of honor at a topping-off ceremony for the one-story building was Terry Smith, the new owner of the six Wendy's restaurants in Reno, Sparks and Carson City. Pappas and Smith exchanged gifts during the celebration: Smith gave See LANDRUM'S, page 7B fjy "i i Soviet grain harvest rises MOSCOW The Soviet Union expects to harvest 210 million metric tons of grain this year, a Politburo member said Thursday. The harvest would be the largest reported since a record 237 million-ton harvest in 1978. Yegor K.

Ligachev drew warm applause from an audience of about 5,000 Communist Party and foreign dignitaries when he made the announcement at an annual Kremlin gathering marking the anniversary of the 1917 Bolshevik revolution. River Inn owner plans renovation of closed resort By Susan VoylesGazette-Journal Work to breathe life back into the long-closed River Inn resort and spa will soon be under way. River Inn owner T.M. Chang will soon approve work to renovate the motel portion of the resort near Mogul, Steve Walther, Chang's attorney in Nevada, said Thursday. "The property has sat dormant for a long time," he needs refurbishing, bringing things up to code." It is hoped that operating the 83-unit motel will offset the cost of maintaining the resort, he said.

It would also enhance the value of the property. While the property is not officially up for sale, Walther said, "I think he (Chang) would discuss the sale with anybody." Chang, of San Mateo, could not be reached for comment. George Benny, the San Francisco developer who is serving a 30-year prison term for fraud, sold the property to Chang in 1979 but retained a leasehold interest. All of Benny's properties, including the leasehold interest, were tied up in bankruptcy court until last year. Millions of dollars worth of contractors' liens were filed against the River Inn property starting in 1981.

All but two of those cases were settled this year, most Gazette-Journal WORK PLANNED: The closed River Inn resort and spa along the Truckee River west of Reno. recreational vehicle park and a 500-room hotel. Several contractors who have bid on the project said Chang plans to follow the reopening of the motel with the spa, then the RV park and then the casino. Cost of the motel remodeling project is estimated at about finishing the spa would cost about $2 million and the casino would need at least $1 million in final touches. By redoing the project one piece at a time, the builders estimated it would take at least five years to out of court, Walther said.

The River Inn has long been a Reno-area landmark. Years ago, it was known as Lawton's Hot Springs, with a swimming pool and spas that drew New York's high society. It also had a strong following among local people. The resort along the Truckee River near Highway 40 west now includes a nearly completed redwood inn and casino, foundation for a spa, an outdoor hot pool, and approved plans for a 150-unit Part of Memorex for sale NEW YORK Burroughs Corp. said Thursday it plans to sell part of its Memorex data-storage business to an international group of Memorex executives and New York investor Eli Jacobs for about $550 million.

The proceeds will help Detroit-based Burroughs pay off some of the debt it took cn in its $4.8 billion acquisition of Sperry Corp. this year, a deal that made it the world second-biggest computer company. JVire service reports complete..