The Tampa Tribune from Tampa, Florida • 33

THE TAMPA TRIBUNE Friday, February 17, 1995 Barnett revamps its investment sales 6 4r III It'' A '4. the Bottom Line Mickie Valente conduct follow-up surveys with customers on their satisfaction with the results. Each transaction will be evaluated twice. It differs from what Barnett competition is doing in two key areas, Palmer said. First, it eliminates all product commissions.

Second, it makes a clear distinction between the bank and its brokerage affiliate. It will, however, sacrifice some efficiency. And Barnett may lose some business, Palmer said. But Barnett is betting it will pay off in the long run, as the bank attempts to capture more of the financial services market for its customers. "We have some contact with 44 percent of the market, but only about 10 percent of their wallet," Palmer said.

"This allows us to broaden the array of financial services, but do it in a way that preserves the trust our customers have in us," Palmer said. faced complaints when the stock and bond markets dropped. Many customers turned to mutual funds to boost returns at a time when interest rates were low. Declining value in those funds surprised and angered some customers who said they did not understand the risks at the time of their purchases. A few ustomers sued banks last year, and securities regulators are now re-examining the rules for sales of securities through banks.

Beginning March 1, all prospects for nontraditional bank services, like mutual funds or annuities, will be sent to an investment representative. Those representatives will spend 30 minutes to an hour questioning customers about their life and tolerance for investment risk. The results will be used to evaluate the most appropriate product. The bank will The bank's brokerage subsidiary will eliminate product commissions. By REX HENDERSON Tribune Staff Writer TAMPA Stung by customer complaints, a Tampa lawsuit and a barrage of criticism aimed at the banking industry, Barnett Banks retail banking chief said Thursday the bank is reorganizing sales of its investment products.

Barnett is eliminating all product commissions, and is engineering a pay system that focuses on measures of customer satisfaction, the appropriate fit between the customer and the product, plus total business. Investment representatives in Barnett Securities will be compensated on any new Slock Close Chg Barnett Banks 433 -V business generated by their referrals, whether it is in the brokerage, annuities, the trust department, or traditional bank products, said John Palmer, retail banking executive for Barnett. The plan is intended to eliminate any incentive for the investment representatives to steer customers into investment products. "We want the investment representative to be the customer's advocate," Palmer said. "We acknowledge some confusion" on the part of some customers who bought mutual funds or other investment products, he added.

"We recognize some customers have complained." A year ago, the entire banking industry CPA slogs icy Moscow Janes to sell beer fcr Mmi'U pirn When Milliard Eure retired two years ago he said he wanted to travel. But Moscow? In the dead of winter? Lying on the sunny isles of. It: ly was what he had in mind when he resigned as managing partner of Tampa's KPMG Peat Marwick office. So, just why was he tromp-ing around the icy streets of Moscow in January? Meet Hilliard M. Eure III, certified public accountant and beer salesman.

The smell of hops has lured the former accounting executive away from a blissful cycle of family gatherings, golf and sunny siestas. Last month Eure took over as president and chief executive officer of Tampa-based First Republic L.C., the exclusive distributor of Miller and Heineken beer in Moscow. First Republic tapped Eure two months ago to assist the company with its financial accounting. But, when company president Rick Grajirena decided to focus on marketing the company's exports, Eure was elected the new chief executive. A few days later, he found himself scouting Tampa for a wool winter coat.

But it seems the bitter bite of the Russian winter is not the harshest obstacle he faces trying to market beer to Muscovites. Tariff makes for tougher sell "They will definitely drink beer. Our problem is not selling beer, it's getting the right price to make money," said this bottom-line executive. Each bottle of Heineken First Republic K' SO ML LJ. TP imports into Russia carries a 120 percent tariff.

And when one is shelling out $21,000 for each container full of 1,600 cases of beer, those tariffs turn into real money. "We can't make money at that rate," Eure said. But, hey, who bet- TODD L. CHAPPELTnbune photo Adventure Island will introduce a new water slide when the ride, the biggest and most expensive in the water park's park opens for the season March 31. Construction of the history, will feature 700 feet of twists and turns and end at nearly six-stories-high Key West Rapids is under way.

The a 60-foot-long pool. Busch parks add new attractions Busch Gardens is making over its playground, while Adventure Island is adding its biggest, most expensive ride. St. Pete firm under FCC fire An Associated Press Report WASHINGTON Federal regulators on Thursday proposed slapping a $390,000 fine on a St. Petersburg company they accused of falsifying documents to win 20 interactive communications licenses last year.

Interactive licenses allow a company to deliver two-way communications services, such as letting a television viewer at home participate in game shows. The fine against Commercial Realty St. Pete Inc. for alleged violations of rules governing an auction of the licenses in July is the largest ever proposed by the Federal Communications Commission. The company has 30 days to respond to the FCC's charges and proposed penalties.

One of the company's principals, James Hartley, declined to comment Thursday. The FCC revoked the licenses last year after Commercial Realty failed to make payments on its $41 million bid. The FCC plans to auction the licenses again. The FCC alleged Commercial Realty falsified financial and other documents to gain certain preferences. It also communicated with other bidders in violation of the commission's anticollusion rules, the FCC said.

The FCC investigation was triggered by a campaign Commercial Realty led to persuade others not to pay for the licenses. The company cited alleged problems with technology and equipment needed to provide service. In recommending the fine, the FCC alleged Commercial Realty falsely certified it was able to pay for the licenses and also that it was entitled to a 25 percent bidding credit as a firm owned by a woman. The commission said it discovered James Hartley controlled the company and made all its business decisions even though his wife, Teresa Hartley, was the sole shareholder and director. Under FCC rules, women and minorities must have operational, not financial, control over a company to be eligible for bidding credits and other preferences.

Nationwide seeks 25 rate increase By CHERYL JACKSON Tribune Staff Writer TALLAHASSEE Nationwide Mutual Fire Insurance the state's third-largest home insurance company, has requested a 25 percent increase for its homeowner's and mobile home owner's policies. The company, which insures about 205,000 Florida homes, including about 13,000 mobile homes, filed a rate increase at the Department of Insurance on Jan. 16. If approved, the increase would take effect June 1 for new and renewing customers. The company's last rate increase was 12.2 percent in May.

State Farm Fire Casualty, Florida's largest home insurer, will increase its Florida rates by a average of about 14 percent on March 1 for new customers and April 15 for customers renewing their policies. Nationwide's increase request is basically a result of damage exposure that 1992's Hurricane Andrew alerted the industry to, said Andrew Martinez, area legislative representative for Nationwide Insurance See NATIONWIDE, Pe 8 By LISA BACKMAN Tribune Staff Writer TAMPA While Busch Gardens opens a pint-size attraction in May to appeal to some of its smallest customers, its Tampa neighbor. Adventure Island, will make a splash next month when it unveils the biggest, most expensive ride in the Participants will ride on inner tubes down the slide, which features I3-feet-wide and 18-feet-wide chutes down a 700-foot drop. A Key West theme is carried throughout, including the hurricane-ravaged lighthouse and boat at the top. It's set to open when Adventure Island opens for the season March 31.

Eure ter to figure out the Russian import rules than one who spent 35 years deciphering the IRS? While there's talk of Russia relaxing some of its taxing tariffs, President Boris Yeltsin and company are a bit preoccupied with other things these days. So, First Republic is exploring some creative importing plans. For instance, it is purchasing tariff waivers from other organizations, a strategy that wouldn't be allowed in the United States. Organizations, such as the Goodwill Games, are given exception to the normal tariff rules, so that they are allowed to import items without paying the tariffs that profit-making importers are required to dish out, Eure said. First Republic is purchasing such waivers and using them to lower its costs of importing Heineken and Miller.

water park's history, park officials said Thursday. Still, a 95-foot-tall water slide at Adventure Island and a fantasy, dragon-themed playground at Busch are each costing in excess of $1 million to build. Both rides are the big, new attractions for 1995 at the "Four people can go down the slide in a clover leaf," Rose said, referring to four people sitting on interlocking inner tubes shaped like a clover leaf. Land of the Dragons, on the other hand, is costing less than the multimillion-dollar Kum-ba roller coaster r'JtW. ,3 4 CANDaCE C.

MuNDrTriDune pnoio CANDACE C. MUNDYTribune photo Tampa theme parks. Busch Gardens already has raised ticket prices this year in part to pay for the dragon playground. The water slide, which has changed its name from Skyrapids to Key West Rapids, is the largest of the 18 attractions at Adventure Island, said Mark Rose, vice president of design and engineering for Busch Gardens. that opened almost two years ago at Busch.

It's replacing Dwarf Village and is set to open May 13. Busch Gardens is borrowing the idea for the play area from a popular, year-old Land of the Dragons playground at its sister park in Williamsburg, Va. See NEW, Page 8 Above, a treehouse three stories tall and 30 feet in diameter will house a stairway and bridges leading to other parts of Busch Gardens' new playground, Land of the Dragons. Left, Richard Dahl of United Steel Works works on the stairway. Grocery shoppers find bank services on Aisle 4 Speaking of suds: If you're thinking of lifting a brew this weekend, think of Ireland.

It could change your life. Those who raise a pint of Guinness stout and can remember the experience could find themselves an entrepreneur in Ireland. Guinness Import is sponsoring its second contest to "Win Your Own Pub in Ireland." And all it takes to enter is 50 words describing your most memorable pint of Guinness. Though it would probably help when it comes time to name the place, one doesn't have to be Irish to win. But, the first winner, Jay Mulligan of Boston, was.

Mulligan was an out-of-work truck driver when he sat down, drew a pint of beer and described 50 things that make a perfect pint of Guinness. Today he is the proprietor of his own pub in Ireland. Guinness, which expects about 50,000 entries this year, will fly this year's 10 finalists to the Kilgoban pub in Bantry on Ireland's southwest coast to compete in the finals. The finalists will compete in dart throwing and pint pouring and will have to recite an original oral ode to Guinness. The winner doesn't necessarily have to stay in Bantry, however.

He or she can opt for $100,000 in cash instead of a pub proprietorship. Entering is easy enough. You can obtain an entry form anywhere you can buy a Gui-ness. The lucky shamrock you will have to provide yourself, however. If 1 You can reach Mickie Valente through i 'i Prodigy e-mail at trib02c or via the Internet at trib02cprodigy.com.

You can write her at The Tampa Tribune, P.O. Box 191, Tampa, Fla. 33606, or post messages on the bulletiOypoards on Tampa Qay Online, the Tribun.X computer online J.ervice on Prodigy. By REX HENDERSON Tribune Staff Writer TAMPA With 20,000 customers a day in each of its branches, First National Bank of Central Florida boasts the highest traffic count in the smallest branches of any bank in Florida. The Longwood-based bank achieves it by putting all its branches except the headquarters in grocery or discount stores.

The 400-square-foot offices have boosted the bank from a very tiny $30 million to $106 million in the past 29 months, and increased its customer base from 2,300 to 32,000. It gives a whole new meaning to "green grocer." First National of Central Florida opened its 18th full-service branch Thursday in the Hyde Park Kash n' Karry on Swann Avenue in south Tampa. President and Chief Executive Officer Mar costs to drop dramatically. His tiny branches are staffed with as few as four employees, seven days a week, and as many as seven at the most successful branches. He pays about $15,000 to $20,000 a year to lease the space in each store.

There are no taxes, or building operating costs. Plus, he gets free advertising in the form of announcements every 15 minutes on the store's public address system. The bank's deposit mix, meanwhile, has shifted toward very cheap checking account deposits, and away from interest-bearing accounts. And the loan mix has shifted away from businesses and toward consumers, which offer the bank higher rates and greater risk diversification. The average loan size at the bank has declined from $80,000 to $20,000.

"If I have a problem loan now, it's a $20,000 problem, not an 580,000 problem," he said. tin Hartmann celebrated the event with a ribbon-cutting and a publicity campaign. He said that the in-store branch strategy "was just handed to me." As a former regional president at Southeast Bank, he was responsible for overseeing the Miami banking giant's experiment with in-store banking. When First Union Corp. swallowed Southeast in 1992, Hartmann carried the strategy to the tiny community bank in Long-wood.

First National now averages a little over $5 million in assets per branch. Hartmann said the strategy can support about $25 million in assets per branch, and that the bank hopes to open 50 branches by the end of 1997. A little multiplication shows that means a target of as much as $1.2 billion in assets. "Obviously it's low-cost deposits," he said. While the bank's cost ratios remain relatively high as it expands and opens new branches, eventually, he expects the' operating.