The Buffalo News from Buffalo, New York • 6

WT45 Bl 3 Business riday December 8 1989 273059 14427 $40885 787 $460 05 AJ1 5tq KnjNDiaTO DOW 3 pm 981 DOLLAR Tokyo today 1 4 yen GOLD Londoan today BONDS 30 yr treasury ROBERT SMITHBuffalo News Marriott set to run new waterfront hotel Roger Smith See Key Page B16 BONWIT nine A two level podium will connect the towers The crane used to construct the first tower has remained in place said to be a sure sign that work on Tower 2 soon will begin But Ansley is not commit ting to a course of action at this time hedging our bets leaving the crane on Ansley said A lack of tenants may mean the second tower will be capped at the mezzanine level until the need for of fice space catches up with the supply Another option is to build only the shell agreement we had with the city and with Key Bank of Western New York was to build the first tower all of the parking the podium and cap the columns for the second An sley said The project includes two un derground floors of parking or months developers and real es tate industry watchers have pointed to Key Center as the barometer for other projects proposed for downtown If the first tower leased up quickly it meant the Buffalo market might be able to absorb additional new space including such proposed projects as the Ciminelli building at Main and Seneca streets and the Oliver Tyrone Pulver tower in the 400 block of Main Street But despite all the hype associated with the US Canada free trade agree ment and increased interest in Buffalo real estate the good times yet touched Key Center Ansley called the Buffalo office mar ket thin and at least one local realtor agreed market in downtown Buffalo for office space is still said Arthur Judelsohn president of Bprlow Real Es tate Inc "It's not better and perhaps a Bon wit Teller began in the 1880s as a single Manhattan shop owned by Paul Bonwit In 1898 after opening a second store Bonwit formed a partner ship with Edmund Teller Since 1934 when Bonwit retired his stores have been owned by five corpo rations Australian based Hooker bought the 16 store chain two years ago ears that Hooker will not be able to find a buyer for Bopwit Teller are un justified according to Amy Goldberg a senior associate with a Los Angeles based public relations firm hired by the beleaguered corporation Hooker currently is liquidating Altman because a buyer could not be found for the 124 year old upscale de partment store Such a fate will not befall Bonwit Teller she said Altman required an investment of approximately $100 million to bring it to the point where it could Sanford Sigoloff chief executive of Hooker said in a prepared statement Teller and Sakowitz each have markedly better physical facilities a more focused business and an up to date image with its customers" he said predicting both stores will be sold a relatively short period of tributed to the overall slowdown in the economy as the year draws to a close and report provided further ev idence that the lackluster per formance is continuing The average manufacturing work week fell from 408 to 407 hours and overtime was unchanged at an average of 37 hours a week The department said the dramatic revision of job growth num ber resulted from overestimating new hiring in state and local educational institutions which is difficult to mea sure as the school year begins With that revision taken into ac count the government said the average month to month gain in jobs during the second half of 1 989 has been about 160000 well below the average month ly gain of 270000 posted in the past 2': years Virtually all of the growth in the past year has been in the service sector and November was no exception Wholesale and retail trade posted job gains of 18000 and 33000 respec tively last month and business and health services also reported significant payroll expansions But the outlook in the goods pro ducing sector particularly manufactur ing was not as good Exacerbating the decline in manu facturing was another bad month for automobile manufacturing which re ported a decline of 15000 jobs in No vember after losing 10000 from Sep tember to October pt shell ot its first office tower But project developers rejoicing over the number ot leases they ve been able to get signed for the office retail complex Despite ongoing marketing for near ly 18 months newest office tower has only two major tenants: the bank that lends its name to the project and the Big Eight accounting firm Ernst Young Occupancy of the 23 1000 square foot office space portion of the 17 story first tower stands at about 45 percent no change since before ground breaking The tower is to be completed by next summer not so pleased with the leas ing activity thus said Christo pher Ansley president of 60 Key Cen ter the partnership created between Ansley and Citicom Inc to develop the Buffalo property like to be farther along than we An additional 20000 to 22000 square feet could be absorbed by bro kerage house Merrill Lynch But noth ing is final until the local office receives approval from corporate headquarters said Samuel Cappiello Merrill Lynch's Buffalo office manager talked with at least half a dozen good prospects but no other deals have been said Mason Bowen a vice president with Gurney Becker and Bourne leasing agent for Key Center The speed and success in leasing the first tower has much to do with the construction timetable for a second tower The second building would total 13 stories including like Tower 1 first floor retailing space and a mezza 11 A 0 Bonwit Teller is the second Galleria anchor to be plagued by financial prob lems Another Hooker subsidiary Alt man Co was forced last summer to scrap its grand opening plans for a store in the Galleria because of its par severe cash problems The Syracuse developers recently launched an unsuccessful bid to buy the Altman name and establish a new department store chain in upstate New York They are continuing efforts to purchase rights to the store name so they can use it in their malls Pyramid has no plans to buy Bonwit Teller Taussig said (Bonwit Teller) sold it should be the same There should be no ripple effects to the he added Boesky shifted to Brooklyn facility New York Daily News NEW YORK Convicted stock swindler Ivan Boesky checked into a corrections facility in Brooklyn this week to serve out the remainder of a three year sentence for his role in the biggest insider trading scandal to rock Wall Street One inmate at the 80 man federal facility said the fallen arbitrageur good he's had a Boesky was transferred to the corrections center from the US Prison Camp in Lompoc Calif a minimum security facility where he had been doing time since last March Boesky is eligible for parole in April BUSlNESS TOPaY US unemployment rate up 01 in November By JOHN KING Associated Press ernment offices he said New York companies thai want to take advantage of the Canada ree Trade Agreement and the new Eu ropean Economic Community will ben efit from the Griffiths said Currently there are 150 members ol the World Trade Center Association including one in Toronto said the Marriott Residence Inn should fit in well in the downtown Buffalo hotel market Two other new hotels also are in the works a Jour End is scheduled to break ground Dec 16 at Main and Chippewa and a Days Inn also is planned at North Di vision and Ellicott streets The Marriott official said his hotel is planned for customers who will be stay ing longer than five days Each suite will feature full kitchens and other amenities for long term living segment of the market so much transient business people but people staying in the market he said three new hotels will be able to provide for different In the past the developers have said commitment would help them acquire financing for the project The developers missed the first dead line for financing but City Hall has given them more time At that time one of the developers John Yurtchuk said a series of minor had slowed their progress Mooney said the developers are will ing to work with nearby residents of ihp MftrinP YriVP Anarfmnntc tn made available to companies that resolve potential traffic and parkine Urttllrt rvx Qlf roMzwl kr it t' piUUlCIIlS The complex is proposed for a prime piece of vacant land next tn the developers plan a spring ground WASHINGTON The unemployment rate edged up from 53 percent to 54 percent in November as the economy added 210000 new jobs but manufacturing employment fell for the eighth consecutive month the gov ernment said today The Labor Department report showed job growth last month was far greater than most analysts expected But the government also revised sharp ly downward the number of new non farm jobs created in October from 233000 to 93000 The civilian unemployment rate climbed 01 percentage point as more than 67 million Americans were look ing for jobs but unable to find them That data comes from the household survey which also showed that H77 million people held jobs in the civilian economy In New York stole the November rate shot up to 52 percent from 47 percent in October The stock market reacted favorably to the report taking the evidence of sluggish growth as a sign the ederal Reserve Board would move to further relax its credit policy and thus lower interest rates Analysts however were split on whether or when such a reduction would come and at odds as well over whether the economy was on the verge of recession The manufacturing slump has con time" The Manhattan investment firm chained will selling Bonwit Teller be lieves the retailer will fetch a high price because its outlets merchandise and image were updated less than 18 months ago according to Gilbert Harrison chairman of inanco Inc of New York When the Bonwit Teller store at the Galleria opened last May it broke all previous company records for outlets of a similar size store manager Roger Holzheimer said earlier store is successful We see no reason why we be in Buffalo for many years to said Elaine Garofolo a Bonwit Teller spokeswom an The Buffalo operation may be doing well but the retailer continues to have financial problems Sources familiar with Bonwit Tell finances who requested anonv mi ty predicted the clothing chain would post losses ot more than $10 million this year on estimated revenues million to $175 million Industry experts say a potential buy er would need to infuse $20 million into Bonwit Teller to buy needed mer chandise By PHIL AIRBANKS and KEVIN COLLISON News Staff Reporters Developers of the Pavilion water front project announced today that the Marriott Corp will operate the hotel portion of their $113 million complex and that they hope to house a World Trade Center in its office building Just as the developers predicted months ago Marriott has agreed to open a 12 story all suites Residence Inn The chain also operates the Resi dence Inn on Maple Road in Amherst feel the Buffalo waterfront is a perfect chance for us to said Jerry vice president of fran chise development for Marriott He said the company currently operates 148 hotels and wants to expand to 300 by the mid 1990s The hotel is proposed for one of the two 12 story buildings that make up Pavilion The project includes an office building stores and restaurants and a small lakefront plaza The announce ment today came at a press conference held in Mayor office John Mooney a partner in the de velopment said a new group has been formed to apply for entry into the World Trade Center Association If the group is successful Mooney said such a designation would attract a variety of businesses interested in trade such ac law firms banks and accounting firms disputes with adjoining land owners iviooney saia aoout 5UOU square feet would be leased to the actual World Trade Center office and an addi tional 100000 square feet would be i wouia oe attracted by it Larry Griffiths one of the partners in the pronosed trade center said it rr H1 Jjivvv vrt vaiam IdIJU lICAl IO would offer information and reference Restaurant Mooney said cprvirpc pdnra1innil nt Anrr vsjuvuuvhui MiuKiaiiis auiniii 4 4' MUH I jpuilt KIUU1IU isirauve services ana a business club breaking and that most of the complex I he center also might lure some gov should be completed by fall of 1991 Sale of Bonwit seen not affecting Galleria unit By JAMES MADORE News Business Reporter Bonwit Teller a New York City high fashion specialty store may be up for sale but there is no danger the company will close its Walden Galleria outlet Executives for Bonwit Teller and the Pyramid Co of Syracuse the developers deny that the potential sale of the upscale chain will negatively af fect the Buffalo store planning to sell it (Bonwit Teller) as an entire division" said Den nis Taussig director of marketing for Pyramid A change in the retailer's ownership have absolutely no effect on Walden he said Bonwit bankrupt parent LJ Hooker announced Thursday it intends to sell the clothing chain and Sakowitz Inc a Houston based specialty retailer Robert Sakowitz president of Sak owitz Inc Thursday reconfirmed his intention to make a bid with a group of investors for controlling interest in the chain Hooker filed for Chapter 11 bank ruptcy protection last August and has been attempting to raise capital by sell ing off its assets GM chief to head NYSE panel Ibv rick stouffer NEW YORK I News Business Reporter (Reuters) The New York Stock Ex Key Center at ountain Plaza Mon change said Thursday day will celebrate completion of thet I fs cknll Apitr fir fl rslXtxa fniioM mat Koger smitn General Motors 4 'Corp chairman and chief executive offi cer was chosen to head the blue ribbon panel on Market Volatility and Investor Confi dence The panel is being created because of concern that inves tors have lost confidence in Wall Street after the 1987 market crash and the more recent Oc tober plunge The exchange said the panel whose mem bers will soon be named will also analyze the impact of market volatility on the creation and allocation of capital in the economy The vola tility of the market has been partially blamed on computer driven program trading 400 staffers added to probe WASHINGTON (AP) Attorney General Dick Thornburgh on Thursday assigned about 400 more prosecutors and BI investigators to probe savings and loan fraud that he predicted could be the white collar Thornburgh said the additional prosecutors BI agents and accountants will be deployed in 27 cities where cases of savings and loan fraud have been piling up sincethe middle of the de cade in the savings and loan indus try may turn out to be the biggest white collar swindle in the history of our nation" the attor ney general told reporters Consumers increase debt sharply WASHINGTON (AP) Americans took out $334 billion more in consumer credit than they retired in October posting the biggest in crease in net consumer debt in five months the ederal Reserve Board said Thursday The ed said consumer credit advanced in October at a seasonally adjusted annual rate of 57 percent the sharpest' increase since a 73 percent gain in May when credit rose $421 billion Auto loans which fell 32 percent in Sep tember after remaining flat in August grew by $11 billion or 45 percent on an annual rate in October The category of debt that includes credit cards jumped to a 64 percent annual rate of growth from a 56 percent advance in Septem ber Total revolving debt rose $104 billion compared to a $904 million gain the previous month Judge rescinds ban on home work WASHINGTON (AP) In a defeat for or ganized labor a federal judge ruled Thursday in favor of a Labor Department regulation that allows working at home in five apparel related industries US District Court Judge Gerhard Gesell's ruling rescinds a ban on home work in the five industries He said the Justice Department reg ulation represents a approach re quiring firms seeking to institute home work to come forward and seek certification from the government They also would be subjected to monitoring by department inspectors The International Ladies Garment Workers union and two other unions sued the secretary of labor last January saying tens of thousands of workers mostly immigrant women would be exploited by the rule and that the working standards of other workers would be threat ened The five industries affected by the depart ment rule are those making gloves and mit tens handkerchiefs buttons and buckles some types of jewelry and embroideries New rules on employee expenses WASHINGTON (AP) New IRS rules will free employees from having to deal with expense accounts on their tax returns If the rules are followed to the letter em ployers will not have to withhold taxes from their expense allowances The new regulations announced Thursday by the Internal Revenue Service designedto avoid harsh results for employers who have reasonable substantiation said Mary Oppenhiemer the deputy assistant chief counsel that employees substontiate expenses andurn A weldcr was busy Thursday PreParing steel framing for the precast concrete back any portion of an advance that is nit sub exerior panels beng used on the Key Center buidin8 in downtown Buffalo stantiated If those two conditions are met the employer need not list any part of the expense a kivilzJ'iwtrr reimbursement as income on the 2 1 I II 1 1 If 1 1 11 form and the worker will not have to claim a I VVlilVl VUllUlllb deduction for the allowance I attracting tenants ent rules permit the full rate only for the first 1 5000 miles and 1 1 cents for each additional zy rtfST MM MR i i st Rial TELLER a IMA.