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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.

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