Full text of Roundup : January/February 1987, Volume 6, Number 1
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DALLAS Federal Reserve Bank of Dallas January/February 1987 Volume 6, Number 1 Strategic plan addresses downtown Dallas William H. Wallace, First Vice President and Chief Operating Officer of the Federal Reserve Bank of Dallas, has been appointed to the newly formed Strategic Planning Committee of the Central Dallas Association (CDA). According to Wallace, the CDA, formerly known as the Central Business District Association, was formed in the 1950s. Members of the CDA include downtown businesses which wish to participate in develop ing and promoting the downtown area. The Strategic Planning Committee, appointed by CDA Board, is made up of 12 major downtown business exec utives. “ Our Committee will study the overall focus of the CDA and help its officials to direct their efforts toward a progressive and innovative long range plan for the central city,” stated Wallace. “ One of our principal objectives is to help the CDA develop a marketing plan to promote down town Dallas to potential businesses as well as to the public. A part of this objective also is to foster recreational and residential developments in the central business district, since we believe these are important to the long-term viability of the downtown area.” The CDA has a number of ongoing programs designed to promote downtown. It sponsors promotional William H. Wallace events and improvement projects, and it conducts planning studies, such as the recent “ Dallas Downtown P la n 1986,” jointly sponsored with the City of Dallas. The Association reviews downtown traffic flows, parking trends and the establishment of DART stations, and works with the City and with DART to assist them in achieving their objectives for the downtown area. The CDA also helps to establish other organizations which have similar developmental ob jectives in the downtown area. Ex amples of such organizations which the CDA has sponsored through staff ing and administrative support are The Arts District Management Association, The Arts District Foun dation, The West End Association and Tree Scape Dallas. Though the CDA’s boundaries are not set in stone, the main focus of the organization is the downtown core bounded by the freeway loop of Woodall Rodgers Expressway on the north, Central Expressway on the east, to R.L. Thornton on the south and Stemmons Freeway on the west. Since the Federal Reserve Bank of Dallas is located in the heart of downtown, that is where Wallace’s in terest in the Committee became ap parent. “ The Federal Reserve Bank’s plans are to remain in the central business district over the long term, and those plans include the construc tion of a new facility. Serving on this Committee will help me to keep aware of what development activities are going on downtown,” added Wallace. (Continued on page 2) INSIDE__________ ■ INCUBATOR INTEREST ■ BEP IN FORT WORTH ■ ABA SEMINARS This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) Business boom . . . Incubator interest increases Business incubators have become widespread across the nation and have experienced a 50 percent growth rate over the last year, according to the National Business Incubation Association (NBIA). Incubators, sponsored by busi nesses, help entrepreneurs establish new small businesses by providing af fordable space, office services and assistance to management of the newly-developed firms. Economic diversification, tax-base expansion and creation of a positive development image are the concerns of the sponsors of these incubators. Not only is the community environ ment improved through the renovation and enhancements made to old and existing buildings, but job creation is an outgrowth of incubator develop ment. Also, commercial and industrial real estate property increases in value through such projects. Banks have played integral roles in developing incubators, even as a per missible community development cor- Banks have played integral roles in developing incubators,. . . poration (CDC) activity. Some of the more avid non-banking proponents of incubators have suggested incubators as a solution to utilizing foreclosed commercial and industrial properties. CDC formation is permissable under Regulation Y. Private firms were the first to become involved with incubators in 1970; however, public agencies and universities have undertaken the con cept as a laboratory for students. In January 1985, there were 70 in cubators in the United States. Today, there are over 170 in operation and the figures are growing, according to the NBIA. Possibly the reason the growth rate has been so high is that the success rate for businesses located in in cubators is eight out of ten, com pared to two out of ten of entrepre- . . . the success rate for businesses located in incubators is eight out of te n ,. . . neurs starting businesses on their own. In the Eleventh Federal Reserve District, which covers Texas, northern Louisiana and southern New Mexico, there are five incubators operating presently, with plans for others within the next year, according to Carlos Morales, executive director of the NBIA. In Texas, there are two incubators in Houston and one in San Antonio. An incubator will open in Dallas very soon. Louisiana has an incubator in Monroe and two outside the Eleventh District in New Orleans. New Mexico has one in Hobbs and two others out side the Dallas Fed’s District in Albu querque and Los Alamos. Introduced to the concept by the U.S. Department of Housing and Ur ban Development, several communi ties are looking to incubators as a solution to bolstering their economy. Within Texas alone, both the Marshall Chamber of Commerce and the Rio Grande Council of Mayors are plann ing incubator conferences soon. Detailed information on incubator development, design and operation, can be obtained at a conference in Philadelphia, March 29 through April 1. For more information, contact the NBIA at P.O. Box 882, Fairfax, VA 22030-0882, or call them at (717) 249-4508. Paul A. Volcker, Chairman of the Board of Governors, visited the Dallas Fed recently to speak to the Board of Directors from the Dallas Office, and El Paso, Houston, and San Antonio Branches. Downtown strategic plan (cont.) Other downtown business execu tives serving on the Strategic Plann ing Committee include: John F. Scovell, Chairman and CEO of Wood bine Development Corporation, who chairs the Committee; Larry Fonts, President of the Central Dallas Association; William L. Schilling, Managing Partner of Peat, Marwick, Mitchell & Co.; John T. Stuart, III, President of RepublicBank Dallas; Henry Gilchrist, Senior Partner of Jenkens & Gilchrist; Richard Douglas, Chairman of Southland Investment Properties; June Lykes, President of Rosewood Properties; Wright Lassiter, President of El Centro Col lege; Tom Hayman, President of Hayman & Company; Barry Henry, Partner of Trammell Crow Company; and Bill D. Smith, President of JPJ Ar chitects, Inc. Small business lending seminars offered by ABA Recognizing the financial needs of small businesses, the American Bankers Association’s Small Business Banking Committee is spon soring seminars that offer lenders an opportunity to improve their awareness in this area. Recently, the ABA visited lenders in both the Los Angeles and Atlanta areas to provide “ how to” seminars for practitioners in small business financing. Seminars also will be held in Dallas, March 23-25 and in St. Louis, May 4-6, as well as in Min neapolis and Pittsburgh later in the year. According to Paul Byrd of the American Bankers Association, the seminars involved “ an intensive study of techniques of credit analysis through actual participation in video case studies.” Fee for the three-day commercial lending seminar is $695 for ABA members and $795 for non-members. The ABA also is planning its first National Small Business Banking Conference in St. Louis, June 7-9, which will cover almost every aspect involved in providing services to small business. Industry experts and suc cessful small business entrepreneurs from across the nation will assist in the how-to sessions on marketing, sales, human resources, and the business of small-business banking. There also will be opportunities for networking and sharing experiences with fellow bankers. For more infor mation about the activities planned, contact Paul Byrd at the ABA office in Washington, D.C. at (202) 663-5112 In line with Regulation BB Com munity Reinvestment Act, the Dallas Fed would like not only to assist banks in meeting community credit needs by providing resources such as this information, but it also would like to remain aware of model projects undertaken that meet specific bank ing service needs. Call (214) 698-4415 for more information about Communi ty Affairs programs. Manufacturing money in Fort Worth? Money. Everyone is usually in terested in hearing about it. And, since the United States Treasury Department has announced a new Bureau of Engraving and Printing (BEP) in Fort Worth, we will probably hear a lot more about it from now on. The new BEP facility, expected to open in late 1988, will begin opera tions there in 1989. The new currency manufacturing facility, the first located outside of Washington, D.C. since 1862, will serve the Federal Reserve districts of Dallas, Kansas City and San Fran cisco. The BEP plant is expected to produce annually at least a quarter of the nation’s new currency. The Treasury received over 80 ap plications from cities across the United States, from which eleven finalists were chosen. All finalists had to meet a basic requirement of having direct non-stop commercial air transportation to the three Federal Reserve Districts and their branches. To get an idea of the number of bills printed at the new plant, next year the Kansas City Fed, Dallas Fed and San Francisco Fed will have 214,400,000 notes, 406,400,000 notes, and 1,113,600,000 notes printed, respectively. Broken down by denominations in the chart, these three districts will have received 25.2 percent of all cur rency printed at the 75-year-old plant in Washington, D.C. during the fiscal year of 1987. Fiscal year 1987 printing order (000, Notes) Kansas City Dallas San Francisco 1’s 5’s 10’s 20’s 50’s 100’s Total 112,000 230,400 588,800 28,800 48,000 118,400 12,800 44,800 99,200 54,400 57,600 265,600 3,200 9,600 25,600 3,200 16,000 16,000 214,400 406,400 1,113,600 Fed Facts: The Federal Reserve Banks circulate new currency regularly. As old bills are shredded, new ones are placed into circulation. One dollar bills are the most used and therefore, their life expectancy is only 12 months. The Federal Reserve System shreds approximately $160 million dollars daily. I Short takes . . . ■ William McAdoo, President Wilson’s son-in-law, was the first of seven Secretaries of the Treasury who served ex-officio as chairman of the Federal Reserve Board between 1914 and 1936. Born in Georgia and trained as a lawyer, McAdoo had been presi dent of the Hudson & Manhattan Railroad. He narrowly missed be ing nominated for president at the 1920 and 1924 Democratic conven tions and served as Senator from California during the Great Depres sion. McAdoo was the author of The Challenge— Liquor and Lawlessness versus Constitutional Government. ■ The Conference of Presidents and the Board’s Committee on the Payments Mechanism created the Pricing Committee in 1978, with Governor Coldwell as chairman. The Committee was abolished in July 1980, after the Board approved a fee schedule for services. Four months later, the Board reinstated the Committee, under the chair manship of Governor Gramley. President Corrigan became chair man in January 1982. ■ The highest Federal Reserve note currently issued is $100. The $500, $1,000, $5,000, and $10,000 bills have been retired since July 14, 1969. > o CZ) "71 o > rj m o 5 >- > m l_ h m cn £ O ” cn y5 OH o m X £ > <0 CO 30 -J c 0) CD T z) 03 co y C CO X Z3 CO S > 0'S ^ CD ~ -o O 0) 3 a£ l -l T3 8 “ H ^ OS z ro _ ro O m CZ) c n! X > 30 m CZ) m 30 < m oo > z * o n a > III CD o => 3. 3 !l! Z3 r- 3 B O o Q. o CD O o 0*? H m O*< < C D C CD 0 ) 0) u =cr CO > £ Om^ CD g o s 3 _ co = 7W CD C “O CO cr 0) —u c O CL 30 CD CO CD 2 > CZ)