Reno Gazette-Journal from Reno, Nevada • Page 20

Today's tip 6B Wednesday, August 1, 1990 Reno Gazette-Journal BUSINESS EDITOR; ALLAN K. RISDON, 788 6322 usuries International Trade Roundtable planning meeting Is held Irom 11 30 a m. to 130 m. at The Great Escape Restaurant. $10 50 lor NEWTRAC members.

$13 50 non-members. Reservations: 829-9000. essf ate drops Nevada unemployment Ll Hits 4.9 percent; state, Las Vegas figures also fall By Susan SkorupaGajetteJournal Reno-area unemployment fell slightly in June after posting its biggest gain of the year a month earlier. Seasonally adjusted unemployment was 4.9 percent, down from 5.0 percent in May and 5.1 percent in June 1989. May figures had posted a 0.4 percentage point gain over April unemployment for the largest jobless rate jump of the year.

Statewide and Las Vegas figures both fell to 5.0 percent. The national jobless rate for June was 5.2 percent. "Nevada continues to occupy the en- viable position of leading all states in percent of job growth while remaining below the national average in unemployment," said Stan Jones, state Employment Security Department director. Reno reported 147,000 jobs in June, a 3.2 percent growth rate in employment from a year ago. Jobs statewide reached 625,000 for a 6.7 percent gain.

Las Vegas counted 371,900 jobs for a 9.2 percent growth rate. "It was a pretty good month for creating new jobs," said George Anastas-satos, employment security researcher. "They were primarily in the wholesale retail and service industries and construction was pretty good. We're starting to see some of the usual hiring patterns coming into force." Part of the employment gain over last month comes from hiring at seasonal recreational facilities such as Wild Waters and swimming pools, An-astassatos said. Hotel-casino hiring for the traditionally busy summer months could be down slightly this year, he said, because there are still several downtown properties, such as Eddie's Fabulous '50s and the Onslow, that closed late last summer and have not reopened.

"But we're seeing completed projects at places like Harrah's and the Sands," he said. "Overall, we're in good shape. Washoe County is not booming like Las Vegas, but it's still moving forward in a positive manner." Anastassatos said four of every five new jobs created in the state are located in the Las Vegas area. "They're still booming along down there," he said. "And rural Nevada is still profiting from the mining situation See JOBLESS, page 3B (In percent) June 1990 May 1990 June 1989 Statewide 5.0 5.3 5.4 Las Vegas 5.0 Mcft Reno 4.9 silS.1 Carson 6.1 7pyY Douglas County 4.9 JmT S.8 United Stales 5.2 jyT I 5.3 Number of persons ujeStfrroyTg Statewide U8, if M-600 W'' Las Vegas y89)y 19,200 18,900 Reno Eifcfl 6.300 6,300 Carson 1.100 1.070 1.120 Douglas County 570 570 I 650 Stocks down in 2nd day of mixed trading NEW YORK Wall Street turned wis second straight mixed Lk.

Tuesday as worries aoout the economy and the planned employee buyout of UAL Corp. bogged the market down. i 9w Jones industrial average closed down 12.13 at 2.905.20 after nuctuating throughout the session and Plunging nearly 39 points in the last naif-hour of trading. Advancing issues outnumbered declmers by about 9 to 8 in nationwide trading of New York Stock Exchange-listed stocks, with 817 up, 731 down and 455 unchanged. Volume on the floor of the Big Board came to 173.81 million shares, up from 146.47 million in the previous session.

Dollar extends deep dive NEW YORK The dollar extended Us steep descent Tuesday against major foreign currencies in selling related to a weak U.S. economic outlook, which is expected to drive down domestic interest rates. It tumbled to a 2Vi-year low against the German mark in periodically hectic European trading. The mark has benefited from the belief that German unification will foster faster economic growth there. Currency dealers said the dollar's decline accelerated when it slid below thresholds considered technically significant.

It dropped to 1.5960 marks on the Frankfurt Foreign Exchange. The dollar's weakness encouraged gold buying. Gold for August delivery added $2.20 on the Commodity Exchange in New York and settled at $370 a troy ounce. AMEX opens IGT options NEW YORK The American JJl First Western forecloses on Onslow hotel By Wayne MeltonGazette-Joumai First Western Savings Association on Tuesday foreclosed on downtown Reno's Onslow Hotel-Casino, nine months after the 12-year-old gaming operation shut down amid financial woes. The property went bust because "timing was bad and debt service was pretty heavy," said Everett Brunzell, one of three principal partners in the former owner.

One Thirty-Three Inc. First Western foreclosed on the property when there were no bids during an afternoon public sale at First American Title Co. of Nevada, 201 W. Liberty Reno. The immediately took possession of the 16-story, 182-room hotel at 133 N.

Virginia St. There have been no formal offers, and First Western hopes to sell the property to recover outstanding debt of $5.7 million, said SteDhen Harris, the bank's attorney. Urst Western initiated the sale after One Thirty-Three Inc. filed for Chapter 11 bankruptcy reorganization in January. One Thirty-Three officials said the foreclosure came after separate tentative sales agreements fell through with two potential buyers, Neva-Star Inc.

of Nevada and Satellite Bingo Inc. of Georgia. At a sales gathering on the front steps of First American, Harris announced One Thirty-Three had $5,746 million in remaining debt on the building, plus $815,272 in remaining debt on personal property still in the building. On behalf of the bank, Harris announced a bid of $4.95 million on the building and $50,000 on the personal property, which includes mostly furniture. But there were no counter-bids, so the bank automatically foreclosed on the See ONSLOW, page 3B PI iif Stock Exchange will open put and call options trading on the over-the-counter stock of International Game Technology (options symbol: GTQ) today.

Based in Reno, the company is I a worldwide manufacturer of microprocessor-based gaming machines. GTQ has been allocated to the specialist unit of Cranmcr Cranmer, Inc. with James Orfe Jr. as lead specialist. The option will open with strike prices of 17 Vi 20 and 22 V2 and position limits of 3,000 contracts, initial expiration months are August, September and October 1990 and January 1991.

People DEBBIE BROCH was recently appointed loan origination manager for PriMerit Bank's northern division. In this new position, Broch will be responsible for the bank's residential real Broch estate loan department and production in northern Nevada. A graduate of Washington State University, Broch has more than seven years experience in real estate lending with both commercial and mortgage banking institutions. LISA SPETH-JONES recently joined PriMerit Bank as branch operations manager for the West Liberty branch. Her duties include maintaining retail operations and ensuring the continuation of PriMerit Bank's customer service quality.

A graduate of the University of Boulder's School of Bank Marketing in Colorado, Speth-Jones brings nearly 10 years of bank operations and marketing experience to PriMerit Bank. She is also a member of the American Institute of Banking and Financial Women International. ur.j AIL Burke Bliese 1 I UN www JLzZJ Craig SailortiaetteJournal Tract MMdGun-Joumal Western Union workers vote on possible strike By Susan SkorupaGazette-Journal Unionized Western Union employees in Reno and nationwide are voting whether to strike if current contract negotiations between United Telegraph WorkersCWA and the company fall apart. Negotiations are under way in Virginia Beach, to replace the current contract, which expires Aug. 6.

In Reno, Western Union has about 500 employees, about 75 percent represented by the union, said John Sampaga. assistant president of CWA Local 9467UTW 34. The Reno operation mainly handles money transfers. If the union bargaining committee reaches no agreement with the company by the Monday deadline, and if union members vote to strike, the walkout is scheduled for that day at 9 p.m. PDT, Sampaga said.

Union members are hoping an agreement can be reached, he added. Sampaga said workers are unhappy with company plans to increase workers' payments for medical benefits and extend part-time workers' hours, among other possible changes. The workers, he said, would like a pay increase. But both sides in the negotiations are vague about specific points being decided in the contract. "No specific wage figures have been raised on either side," said Warren Bech-tel, a spokesman for Western Union headquarters in Upper Saddle River, N.

J. But health care is an issue, he acknowledged. "Like most companies, Western Union has to be concerned with the increased cost of health care and providing medical insurance. The problem is how best to provide it and what cost sharing' should be between the employer and the employee." Bechtel said negotiations are "proceeding as they always have. We have this every two or three years." An employee strike is "always a possibility," he said.

"We had one in 1985 and in 1971. But in most cases, an agreement is arrived at." Of the company's 3,400 full-time em-See WESTERN, page 3B cent of whom are over 50 years old, Hilton officials say. The Hilton is the latest major hotel chain to build a hotel-casino in Laughlin, a town founded by Don Laughlin when he bought a bar with 12 slot machines in a remote spot along the Colorado River in 1966. Last year, the community attracted more than 2 million visitors and had a year-round hotel occupancy rate of 98 percent. The company announced plans to build in Laughlin two years ago with the purchase of a 19.5-acre parcel of land from the Horseshoe Club Operating Co.

Hilton Nevada the Las Vegas-based gaming division of Hilton Hotels operates five Nevada casinos with 300,000 square feet of gaming space and more than 9,000 hotel rooms. The company owns and operates the Flamingo Hilton Reno and the Las Vegas Hilton and the Flamingo Hilton and O'Shea's Casino in Las Vegas. Staff reports Dutch firm buys toy chain NEW YORK A prestigious Dutch retailer on Tuesday announced it is buying FAO Schwarz, a venerable old American toy store chain known to generations of shoppers as the ultimate place to browse for playthings. The U.S. subsidiary of NV Koninklijke Bijenkorf Beheer (KBB) will acquire the 17 stores operated by FAO Schwarz as well as its catalog business for an unannounced price.

Officials disclosed few details of the deal with FAO Schwarz's present owners, an investment group that includes the chain's two highest ranking executives. The acquisition will give KBB an entry into American retailing and provide it a springboard from which to expand in the United States. The chain's sales are expected to exceed $50 million this year. NO BIDS: Onslow Hotel-Casino on North Virginia Street. Sales of new homes soar in June Hilton opens Laughlin hotel today half of 1989 when they totaled 340,000 units.

The June increase was the sharpest since a similar 8 percent gain in November. Analysts attributed the increase to lower mortgage rates, which they said should spur renewed interest in home sales for the remainder of the year. "We expect mortgage rates to trend downward in the weeks ahead, which should boost sales of new homes as well as existing homes," said John A. Tuccillo, chief economist for the National Association of Realtors. The Realtors reported last week that sales of existing homes rose 1.2 percent in June to a seasonally adjusted annual rate of 3.34 million units.

The average rate for 30-year, conventional fixed-rate mortgages ranged from 10.29 percent to 10.10 percent in June, according to surveys by the Federal Home Loan Mortgage Corp. The rate had dropped to 9.98 percent by last Friday. Nevertheless, Mark Obrinksy, an economist with the Federal National Mortgage Association, and other analysts said they did not expect rates to fall much farther. WASHINGTON (AP) Sales of new homes across the nation surged 8 percent in June, the sharpest increase since November, the government said Tuesday in a report that many analysts said indicates the sluggish housing industry has bottomed out. Sales also surged in the Reno area, reaching 204, a 26 percent jump over May and 47 percent increase over June 1989.

"We believe that the second quarter was the low point," said David Seiders, chief economist for the National Association of Home Builders. He and other analysts said they expected continued but subdued growth in both new and existing single-family markets for the remainder of the year. The Commerce Department said new home sales totaled a seasonally adjusted annual rate of 581,000 units after posting a revised 2.3 percent gain in May. May sales first were reported last month to have risen just 0.4 percent, the first advance in five months. Despite the increase in June, new homes sales for the first six months of 1990 have fallen 9.7 percent below sales of the first (TALK IN MAAPAl LAUGHLIN The newest addition to the growing hotel inventory in this booming gaming resort community comes on line today with the opening of the Flamingo Hilton Laughlin.

The 18-story, twin-tower resort con tains 2,000 rooms and was built at a cost of $190 million. It will push the total number of hotel rooms in Laughli more than 7,500. Gov. Bob Miller is scheduled. hand for the opening ceremoi a.m.

The resort expects toAosrSMWttOO guests by year-end, HiltojjftOwciats estimate. Amenities restaurants, a casino, race and sports Kcallaret showroom, a childrafs specialty shops and a foot recreation deck with lighten tennis courts and swimming pool. The casino includes 1,500 slot and video poker machines, most of them nickel and quarter machines preferred by Laughlin visitors, more than 50 per- Hopes wane on UAL buyout CHICAGO UAL Corp. stock plunged Tuesday amid speculation that balky lenders may force UAL employees to seek an extension of the Aug. 9 deadline for financing their $4.38 billion buyout of the airline company.

The union-led employee group also might have to ask UAL's board and stockholders to accept less than the currently proposed $201 per share, analysts said. UAL tumbled to $140 a share on the New York Stock Exchange, extending Monday's drop as new reports circulated that banks might be balking at lending money for the proposed purchase of United Airlines' parent company. The publication American Banker said Citicorp and Chase Manhattan Corp. reps did not attend a meeting Friday. rmJtm car17 A I wow I I "ill touf I 1 Jf GERRY BURKE and MICHAEL BLIESE were recently appointed branch sales managers of PriMerit Bank's Oddie and West Liberty branches, respectively.

In their new positions, each will be responsible for customer service, deposit management, product awareness and new business development. Burke joined PriMerit in 1985 as assistant branch manager. Prior to joining the bank, she was with Security Pacific Bank Nevada as the operations supervisor for the credit card department. Bliese was sales manager of Circuit City in Reno before joining PriMerit. A graduate of the Institute of Mortgage Banking, Bliese also holds a California real estate sales license.

A wholly-owned subsidiary of Southwest Gas, PriMerit Bank, federal savings bank, has assets of $2.8 billion and operates 31 retail banking offices in Arizona and Nevada. Wire and staff reports i Ford, Fiat in joint venture DETROIT Fiat Group, Italy's largest industrial company, and Ford Motor Co. formed a joint venture Tuesday to merge their agricultural subsidiaries into a new company controlled by Fiat. The move further's Ford's goal of ridding itself of its non-automotive operations. Last week, Ford announced it was entering final negotiations with the Loral Corp.

of New York over the sale of Ford Aerospace Corp. In the agreement announced Tuesday, which must be approved by the Italian and U.S. governments, FiatGeotech would merge with Ford New Holland. Ford would receive an undisclosed amount of cash and own 20 percent of the joint venture, while FiatGeotech would own the other 80 percent. The subsidiaries make agricultural implements, such as tractors..