Austin American-Statesman from Austin, Texas • 24

C6 Austin American-Statesman BUSINESS Wednesday, January 25, 2006 DEVELOP: South Congress' '04' retail space expected to be open in August The development will open in a stretch of South Congress already lined with eclectic shops and trendy restaurants. The '04' development Eva Vulcan Video, Eco-Wise, Service Menswear ,) cr i By George, Cissfs Market Anne Kelso Salon and Day Spa 3- in 5V S. Congress I 1 Alley Guero's I I Taco Bar i Proposed pariung fT I my retail neighbors over there and complement what they do." On the northwest corner at Gibson and Eva streets, the "04 Lofts" will be priced from $340,000 for a unit to $700,000 for about 1,700 square feet. Prospective buyers already have put down nonrefundable deposits of at least $10,000 for eight of the units, Zimmerman said, adding that developers are receiving five to 10 calls a week about the units. A three-level parking garage with 207 spaces will be buiit behind the condos.

To'fit in with the surrounding neighborhood, the development will feature what project designer Michael Hsu calls a "scruffy modern" look with rusty steel panels, exposed steel and lots of glass. snovakstatesman.com; 445-3856 Continued from CI scheduled to begin in the next two weeks on the condominiums and wrap up late this year or early next year. The project, which developers had hoped to start in April 2005, encountered delays as some nearby homeowners raised concerns about parking, building height and other issues. The developers made changes that largely satisfied neighbors, including eliminating a second residential building, which made the project "much less intrusive," said Cory Walton, past president of the Bouldin Creek Neighborhood Association. Walton said neighbors also are pleased with the "eclectic mix of local merchants" the developers are attracting.

Mars Restaurant, which serves Asian and Middle III I i' I -I Eastern-influenced cuisine, will be on the first floor of a three-story building at South Congress Avenue and West Gibson Street. The top two floors will be office space. Mars owner Lori Simon said she has not yet decided whether the restaurant's location at 1610 San Antonio nearly half the size of what the new location will be, will remain open. By George, Anne Kelso Salon and Cissi's Market all locally owned will occupy a renovated building that formerly housed the dealership's showroom. A second level will be added, givingthe building 12,000 square feet.

"We're definitely excited. We can't wait," said Katy Culmo, co-owner of two existing By George stores in Austin. Culmo said she expects to sign a lease soon for 2,500 square feet Sources: Dick Clark Architecture and Michael Hsu Design Office Mary Coppinger TV: Fate of Austin's WB station is unclear ANIMATION: Deal may bring more entertaining options to Jobs' iPod St. Mars Restaurant, retail, office building Ave. shows, that seems unlikely.

The merger announcement came as a surprise to insiders and outsiders. "People are asking me if we expected this, and I'm telling them, Fernandez said. "You deal with things like this in this business, and we'll just see what happens." Mike Reed, general manager of CBS-owned KEYE, was caught by surprise, too. "I'm kind of absorbing it myself," Reed said. "It's hard to speculate at this point.

But I will say it makes incredible sense that you merge WB product with UPN product and the power of CBS with the power of Time Warner." Advertisers also were caught off guard. But Elyse Clark, broadcast buying director for Austin-based advertising agency doesn't expect the merger to change the appeal of the two networks, which is strong among the 18- to 24-year-olds sought by some advertisers. "It has been a viable way to reach those kids and younger adults," said Clark, who buys advertising time for clients. "It's a stronger combined 04 i garage Lofts' I Courtyard in the "04" project. Although the concept is still in the planning stage, this third store will be "some version" of the other two.

The development will open in a stretch of South Congress already lined with eclectic shops and trendy restaurants. "We have to', figure out what we do there that doesn't step on people's toes," Culmo said. "I want to be a good neighbor to all innovative stories, characters and films that delight millions of people around the world." With Pixar, Disney gains a company that has produced a long string of animated blockbusters. Iger wants to strengthen Disney's animated features, the hallmark of the company since its founding. Pixar has served as Disney's de facto animation unit for a decade.

Pixar films have been a financial windfall for Disney, which receives 60 percent of the profits. By contrast, Disney's animation unit has struggled, producing some modest successes, such as 2002's "Lilo Stitch," andmany flops. Its first fully computer-animated effort, "Chicken Little," grossed more than $100 million domestically since its release last year. But it fell short of the more than $200 million domestic gross of Pixar's "The With Jobs, Disney also tightens its link with Apple, the Continued from Cl lhey'11 be offering," said Carlos Fernandez, general manager of KXAN, which runs KNVA under a license-management agreement. "They'll make pitches for affiliation agreements, and we look forward to seeing their proposal." Negotiations between KNVA and the new CW network ultimately will be decided by LIN TV based in Providence, R.I., which owns KXAN.

Except for 15 people who focus exclusively on KNVA ad sales, KNVA staff is shared with KXAN. KNVA, which launched as a WB station in 1995, is owned by 54 Broadcasters. Fernandez said LIN has not been told when the CW network pitch will come. It will have to be soon, because the WB and UPN will cease to exist in September, and the CW will launch at virtually time same time. If KNVA does not align with the CW network, the station could become an independent, airing movies, reruns and first-run syndicated programs.

But given the relatively strong ratings the station has had for WB company behind the iPod music and video players. Jobs could help Iger push his plans to bring films, TV shows, video games and other content to computers, iPods, hand-held game consoles and even cell phones. Disney and Pixar had been discussing an extension of their distribution deal since early 2003. Last year, analysts said striking that agreement was Iger's top priority. The talks stalled in 2004 after Pixar demanded that it own 100 percent of all future films and pay Disney a distribution fee.

Pixar also wanted ownership of the films already produced as well as two remaining under the existing agreement. Under the new deal, Disney said it will issue 2.3 shares for each share of Pixar stock. At Tuesday's closing price of $25.99 for Disney, Pixar shareholders would get stock worth $59.78, a 4 percent premium over Pixar's closing price of $57.57. Continued from Cl amid friction between Jobs and former Disney CEO Michael Eisner. But the talks revived under Iger.

Pixar and Disney, the theme park owner that also owns the ABC and ESPN TV networks, have been talking for months about a new relationship. Pixar Executive Vice President John Lasseter will become chief creative officer of the animation studios and principal creative adviser at Walt Disney Imagineering, which designs and builds the theme parks. Pixar President Ed Catmull will serve as president of the combined Pixar and Disney animation studios. "Disney and Pixar can now collaborate without the barriers that come from two different companies with two different sets of shareholders," Jobs said in a statement. "Now, everyone can focus on what is most important, creating 13? MRV0099 company.

They're keeping the WB kids block, taking the strongest shows, like 'Gilmore Girls' and 'Smallville, and adding 'Everybody Hates Chris' and We're looking at best programming when we're putting together a buy, so this helps them." Since launching in 1995, UPN and the WB have struggled to compete for viewers and advertising against the larger broadcasters. The will face challenges as it tries to establish an identity and reshuffle shows intended for different audiences, said Todd Chanko, a Jupiter Research media analyst. Both the WB and UPN aimed at youthful viewers, but UPN has leaned more toward African American and urban audiences while the WB has lately focused more on appealing to female viewers. There's one other challenge: "It's a terrible, terrible name," Chanko said, wondering if audiences will think it stands for "country and western." dhocoxnews.com, dhollowaystatesman.com 8 03jJR Max. Retail Value $.99 4 (8100)0 1 10 RFFAH.EH: DR PEPPERSEVEN UP, INC.

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