Albuquerque Journal from Albuquerque, New Mexico • Page 31

BUSINESS Tuesday, October 3, 1989 Albuquerque Journal Page 7, Section 00 Chicago-Based Fund Takes Over 5 arquette Building By Paul Logan JOURNAL STAFF WRITER BAMIRCO, a California-based firm, bought the 15-story building for $24.5 million at foreclosure auction in June. BAMIRCO had been the lender for the former owner, Cavan Associates so no money was exchanged. The auction was part of a court judgment that foreclosed Cavan's $35.4 million mortgage. The building, which was completed in 1986, cost a reported $45 million to build. Patrick F.

Glennon of Albuquerque will continue as management agent for the building, said Val Wheeler, senior vice president of the fund's management arm First Office Management. Among the building's tenants is the Albuquerque Petroleum Club, a private dining facility. The building presently has 39,710 square feet of vacant space, said Scott Throckmorton of CBS Property Services Inc. Throck or BAMIRCO. ZellMerrill is a $408 million fund formed in 1988 to make equity or equity-related investments in well-located real estate that offers opportunity for improved performance, the firm said.

The 500 Marquette, located at 5th Street and Marquette Avenue, is the first building the fund has purchased in New Mexico. The fund's other holdings include office buildings, a regional shopping center and residential apartment complexes. morton and Thomas Jenkins are 500 Marquette's leasing agents. Throckmorton called 500 Marquette a Class A building whose chief competition is BetaWest Properties office tower at Albuquerque Plaza, two blocks to the southeast. "We feel as though a lot of lease expirations are coming up in the next year," Throckmorton said.

"We think that we're going to get real aggressive on rates." The 500 Marquette Building has been sold for an undisclosed price to ZellMerrill Lynch Real Estate Opportunity Partners Limited Partnership, the new owner said Monday. The Chicago-based fund bought the downtown Albuquerque building, which also was called the Cavan Building, from BA Mortgage and International Realty USINESS DIGEST Health Care Near Bearing the Medicare burden Much of tho controversy over th 1988 catstrophlc health coverage ad stems from the added costs to the elderly. But even with the extra costs, the elderly are stilt receiving substantial subsidies from younger taxpayers for their Medicare benefits. Graph shows average subsidies that Medicare recipients will receive this year from other taxpayers. Crisis, Pane '9 1 Says -Subsidies for men- -Subsidies for women National Insurance Top Suggestion $3,785 $3X00 $3,338 $3,025 THE ASSOCIATED PRESS $1,541 Low Average High income Income income Low Average High income income income COMPILED FROM JOURNAL WIRES Phelps Dodge, Unions Reach Pact Phelps Dodge Corp.

and the unions representing employees at Chino Mines Co. have reached a tentative settlement on a new labor agreement. If ratified by Chino employees, the new agreement will be in effect retroactively from Sunday through June 30, 1993. The current four-year contract expires June 30, 1990, but the company and the unions began early labor negotiations Aug. 29.

The new agreement provides Chino's employees with substantial early wage increases and significant improvements to the total benefits package, according to Phelps Dodge. It also includes some modifications to the current contract language. Unions involved are the Steelworkers, machinists, pipefitters, carpenters, boilermakers, electricians and the office and professional employees. D.P. "Duke" Milovich, Chino manager, said, "The negotiations were productive and the new settlement will enable the company to continue its long-term development plans for the operation." A union spokesman declined to comment until Friday, when the proposed agreement will be ex-.

plained to members. Oil Rig Count Increases by 11 HOUSTON The number of working U.S. oil and gas rigs increased by 11 last week to total 978, continuing a slow but steady rise and remaining above year-ago levels for the fifth straight week, Baker Hughes Inc. reported today. A year ago, the count stood at 918, the company SOURCE; CongressSonaf Budget Office The report compiles information gathered during nine days of hearings last year by the health subcommittee of the Joint Economic Committee, which advises Congress on economic trends but does not initiate legislation.

At a news conference where the report was distributed, Rep. James H. Scheuer, chairman of the health subcommittee, and Joseph A. Calif ano former secretary of Health, Education and Welfare and the lead witness in the hearings, said much could be saved by ridding waste from the health care system and directing the savings. "It's not a situation where you have to spend more money," said Califano, who served under former President Carter.

"Let's wring the waste out of the system WASHINGTON Medicare reform, research to determine effective medical procedures and an emphasis on healthy living are needed to avert a health care crisis in America, said a congressional staff report released Monday. The report by the Democratic staff of the Joint Economic Committee also said some form of national health insurance would ensure that everyone gets high quality, affordable health care, solving the problem posed by an estimated 37 million uninsured Americans. But the report said such a system "may be a long way from becoming a because pf political reasons and resistance by physicians. Knlght-Rktter Tribune NewsJUDY TREIBLE system the federal health insurance program for the elderly would be more easily achieved in the short run. The key change suggested by the report would reform the rates by which physicians are reimbursed, lowering some and raising others to make the system fairer and less complex.

and use it." Americans spent more than $550 billion annually on health care, but Scheuer said, "this system is falling apart" as costs for medical care soar. Though the report lists national health insurance as the top recommendation, it said that given the political realities, cost-saving changes in the Medicare Bueno Foods Announces Expansion, Hiring Plans said. Baker Hughes' rig count the widely watched industry index of drilling activity reflects the number of rigs actively exploring for oil as of last Friday, not the number of rigs actively producing oil. Among major oil producing states, Oklahoma posted the biggest gain, adding seven rigs. New Mexico was up one.

Japanese Buy Into Record Firm LONDON Entrepreneur Richard Branson announced Monday he sold a 25 percent stake in his 77 I. II i If i i. JH if 4 development along south Fourth Street in Barelas Industrial Park. Bueno moved into its $3.5 million plant, which anchors the business park, in 1984. Bueno's annual sales have doubled in the last five years to $8.2 million under Baca.

Her brother, Gene, joined the company to head operations and new product development full time in 1986. "Our dad passed away earlier this year," said Baca, referring to her father, Joseph. "We had a tough decision, but we had planned expansion before he died. After things calmed down, we decided to proceed." Besides providing increased manufacturing and warehouse capacity, the expansion will help Bueno continue to concentrate on two product lines green chile and ready-to-eat products. "The addition of a new quick-freeze freezer for our frozen entrees and green chile will enhance the quality of our products," she said.

Bueno Foods will begin a $4.5 million expansion that will create 83 jobs during the next five years for the Albuquerque-based Mexican and New Mexican foods manufacturing plant. Bueno president Jackie Baca said Monday that construction will begin in January to enlarge the South Valley plant from its current 48,000 square feet to 78,000 square feet. The project will be completed before the chile harvest in mid-July. Located at 2001 Fourth SW, the plant presently has 130 full-time and 150 seasonal employees. Industrial revenue bonds will provide the primary financing with a federal Urban Development Action Grant contributing supplemental financing, Baca said.

UDAG money will no longer be available from the federal government for city developments after this year. Bueno will pay back the financing funds to the city, which will reinvest the funds in A 4 1 v. a Virgin Music Group to Fujisankei Communications Group of Japan for $150 million. The stake would be the largest holding by a Japanese company in an existing British concern, Virgin Music said. Virgin Music and the media conglomerate Fujisankei, through its subsidiary Pony Canyon plan to launch a new record label in Japan to promote sales of top British pop artists in the Far East.

Oil Firms Suffer in Wake Of Spill, Executive Says Branson 1 By Janelle Conaway JOURNAL STAFF WRITER -m mrm, i JL J. six WS WZ WZ to- i JLt JJ'" I for key oil development projects. The oil industry has been seeking legislation to allow exploration in the Arctic National Wildlife Refuge in Alaska. Robert Parker, chief executive officer of Parker Drilling of Tulsa, said the industry had the votes in Congress before the oil spill, but not now. Parker said the spill has been a windfall for environmental groups because it has helped them raise money for their causes.

The oil industry, he said, is losing the public relations war. "Suddenly they're good and we're bad," he said. Parker said he went to Alaska shortly after the accident and what he saw in person didn't resemble what was on the evening news. Parker said the spill caused some damage, but he said environmental groups made it look worse. For example, he claimed, dead otters were moved to beaches where TV cameras were SANTA FE The oil industry will take a long time to recover from the Exxon Valdez oil spill in Alaska's Prince William Sound, the president of a major oil company said Monday.

"I think the backlash from that is going to have a real effect on the energy balance in this country for years to come," said Willis Price, president of Chevron USA. He spoke at the annual meeting of the New Mexico Oil Gas Association. The Exxon Valdez ran aground and ruptured March 24, spilling 11 million gallons of crude oil. It was the nation's worst oil spill. Price and the head of an Oklahoma drilling company both said news accounts of the spill were exaggerated.

As a result of the publicity, they said, the industry has lost congressional support "mmtm ASSOCIATED PRESS Seeing How Chips Stack Up Enrique Gonzales, a technician at the Motorola plant in Austin, Texas, inspects in-process wafers used to produce 68030 50-megahertz chips. The recently marketed chip is the equivalent of 250,000 transistors and can process 10 million instructions a second. Virgin Music's lineup includes singers Mike Old-field, Phil Collins, Peter Gabriel, Keith Richards, Simple Minds, Human League, UB40 and Boy George, many of them already popular in Japan. Medical Group To Hear Attorney Peter Huber, lawyer and author of "Liability: The Legal Revolution and Its Consequences," will speak Thursday night at a meeting of the Greater Albuquerque Medical Association. Huber is a Washington, D.C., attorney and senior fellow of the Manhattan Institute for Policy Research.

The speech and dinner at the Wool Warehouse are open to the public. Cost of the program is $18 a person. For information or reservations call 268-2446. Companies OK Working Agreement BARTLESVILLE, Okla. Two Oklahoma companies, Phillips Petroleum Co.

and Northwest Pipeline have agreed to share a working interest in 111,000 acres in the San Juan Basin area of New Mexico and Colorado. Phillips will hold an 82 percent working interest while Northwest will hold the remaining 18 percent under the agreement, which is subject to approval by the Federal Energy Regulatory Commission. Phillips is based in Bartlesville and Northwest is a wholly owned subsidiary of The Williams Companies Inc. in Tulsa. Under the agreement, Phillips will become operator for most of the acreage and will establish an office in Farmington, N.M.

The companies said in an announcement Monday they plan increased production from the acreage. Current deliverability from the shared working interests is about 54 million cubic feet of natural gas a day. The two companies also expect development of the Fruitland coal seam formation to produce coalbed methane gas under a drilling program now under way. Zenith Plans Sale of Computer Business CHICAGO Zenith Electronics Corp. said Monday it will sell its fast-growing computer business to France's Groupe Bull and use the proceeds to pay off debt and sharpen its focus on new video technology such as high-definition television.

Zenith is the last major U.S.-based maker of televisions, a business that generally has been unprofitable in recent years. Export Orders Up Despite Strong Dollar THE ASSOCIATED PRESS The Purchasing Managers' Index, a widely watched barometer of the economy's direction, rose to 46 percent from 45.2 percent in August and matched the rate for July. percent of those surveyed reported their volume of new export orders rose during the month, compared with 56 percent in August. The seasonally adjusted indexes for the five separate indicators represent the net change between those reporting positive, negative and similar responses from the previous month. The report also indicated inflation eased for the fourth consecutive month in September, with the index remaining at 43.1 percent.

The production index rose to 48.5 percent from 46.5 percent in August while the employment index rose to 45.9 percent from 44.7 percent. The index for new orders moved up to 45.4 percent from 45.1 percent in the previous month. And the inventories index rose to 45.1 percent from 43.3 percent in August. NEW YORK The U.S. economy's manufacturing sector remained weak in September, although orders for exports increased sharply in spite of a stronger dollar, the nation's corporate purchasing managers said Monday.

The Purchasing Managers' Index, a widely watched barometer of the economy's direction, rose to 46 percent from 45.2 percent in August and matched the rate for July. A reading below 50 percent indicates the manufacturing sector of the economy is in decline while a reading above 50 percent indicates growth, according to the National Association of Purchasing Management. Survey responses indicated new export orders rose during the month while prices continued falling, and production, employment, new orders and inventor- The September and August readings were the lowest for the index since December 1982, although the overall index averaged 49.5 percent for the first three quarters of 1989. Survey chairman Robert Bretz said the index would have to fall below 44 percent to show economic contraction for the year. A sharp increase in export orders came despite the strength in the U.S.

dollar durina September. Some 60.5 ies all declined. The mixed picture painted by the managers left economists divided in their opinions of where U.S. manufacturing is headed in coming months. The monthly report is based on a survey of purchasing executives in more than 250 industrial companies.

The index is a composite of five separate indicators, including new orders, production, vendor deliveries, inventories and employment..