Renita D. Young, Multimedia Journalist

Celebrity Design with Jermikko Johnson

2011-06-08T08:30:00.000-05:00

For WVON-AM radio and BlackEnterprise.com’s Urban Business Roundtable, Renita Young speaks with Jermikko Johnson, executive director of design and CEO of the Jermikko label and collection of chic outerwear, suits, separates and evening wear for both men and women.

UBR Jermikko Johnson 6-8 by renitadyoung

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Hosted by Alfred Edmond, Jr., Executive Vice President/Editor-in-Chief of BlackEnterprise.com, the Urban Business Roundtable is a weekly radio show, sponsored by Ariel Investments, airing CST Wednesdays at 8:30 a.m., Thursdays at 6:30 p.m. and Saturdays at 9:30 a.m. on WVON-AM 1690, the Talk of Chicago. You can also listen live online at WVON.com.

Online Fashion Merchandising with Ella Gorgla

2011-06-01T08:30:00.004-05:00

For WVON-AM radio and BlackEnterprise.com’s Urban Business Roundtable, Renita Young speaks with Ella Gorgla, the founder and CEO of I-Ella.com, an innovative online fashion marketplace where users can buy, sell, swap, lend and borrow the latest in designer fashions and accessories.

UBR Ella Gorgla 6-1 by renitadyoung

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Leadership Development with Dr. Scott Allen: Watch Your Business

2011-05-25T08:30:00.004-05:00

For WVON-AM radio and BlackEnterprise.com’s Urban Business Roundtable, Renita Young speaks with Dr. Scott Allen, an assistant professor at John Carroll University and co-author of The Little Book of Leadership Development: 50 Ways to Bring Out The Leader in Every Employee (AMACOM).

UBR Dr. Scott Allen 5-25 by renitadyoung

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Sticky Skin Made Local Entrepreneur Famous

2011-04-25T20:29:00.000-05:00

Entrepreneur by day, local celebrity by night.

"Canhead," who owns a customized signage shop in Evergreen Park, and has lived in the village for nearly 20 years, discovered that he had quite an amusing talent about 16 years ago while at a baseball game. He bent his head down, then jumped up in hopes of catching a home run ball, but when he came back down, couldn't find his can.

"'Where's my can,' I said! It was stuck to my head."

According to him, "My skin breathes in more oxygen than the regular person," which causes arbitrary items to stick to him.

His epidermis literally sucks.

Over the years, many movie stars and comedians have caught Canhead Fever. He said Jimmy Fallon aired a photo of him, then after he started his YouTube channel, Ellen Degeneres heard about him and requested he come on her show. She joked that "business was slow," with Affordable Signs, so he took up an alternative career.

Other appearances Canhead made includes the Chicago Red Bull Flugtag, Nascar races in Michigan, stand-up comedian shows, and the list goes on.
He said he's scheduled to appear on The Tonight Show with Jay Leno soon.

Stay tuned!

Minority Business Success with the Chicago Minority Supplier Development Council: Watch Your Business

2011-04-13T08:45:00.003-05:00

For WVON-AM radio and BlackEnterprise.com’s Urban Business Roundtable, Renita Young speaks with Sheila Hill-Morgan, President and CEO of the Chicago Minority Supplier Development Council, who shares tips on minority business success.

Sheila Hill-Morgan 4.13 by renitadyoung

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Hosted by Alfred Edmond, Jr., Executive Vice President/Editor-in-Chief of BlackEnterprise.com, written by Executive Producer TaQuoya Kennedy, the Urban Business Roundtable is a weekly radio show, sponsored by Ariel Investments, airing CST Wednesdays at 8:30 a.m., Thursdays at 6:30 p.m. and Saturdays at 9:30 a.m. on WVON-AM 1690, the Talk of Chicago. You can also listen live online at WVON.com.

Real Estate Reality with Marki Lemons: Watch Your Business

2011-04-06T08:45:00.000-05:00

For WVON-AM radio and BlackEnterprise.com’s Urban Business Roundtable, Renita Young speaks with real estate expert Marki Lemons of Marki Lemons Unlimited in Chicago, who shares why real estate is still a viable investment option in today's new economy.

Marki Lemons by renitadyoung

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Answering the Call to Serve

2011-04-04T16:02:00.002-05:00

To serve or not to serve: the answer was crystal clear to lifelong Evergreen Park resident Joe Ward, 18, who devoted himself to a life of service after an experience that changed his life.

Two years ago, Ward, a senior at Marist High School, went with the school missions team on a trip to Louisiana. While helping rebuild a woman's home that was destroyed by Hurricane Katrina, Joe said he knew right then that service was something he had to do for the rest of his life.

Today, Ward is the president of the Marist Youth Service Program, an active youth leader and Eucharistic Minister at his parish, Christ the King Church in the Beverly neighborhood of Chicago. Since his New Orleans experience, he's transformed into a missionary, traveling several times a year with the school missions team to do service domestically and internationally.

We will hear from a couple of influencers in Joe's life, who have seen his transition take place first hand: Father Thomas Conde, Pastor of Christ the King Church, and Brother Patrick McNamara, president of Marist High School.

Urban Business Roundtable: Dawn Fitch

2011-03-30T08:45:00.007-05:00

For WVON-AM radio and BlackEnterprise.com ’s Urban Business Roundtable, Renita Young speaks with Dawn Fitch, owner of Pooka Pure & Simple, a bath and body company that Fitch started from right in her kitchen.

UBR Dawn Fitch 3-30 by renitadyoung

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Welcome to The Evergreen Park Show

2011-03-27T05:59:00.006-05:00

Welcome to the Evergreen Park Show! Hosted by AOL's Evergreen Park Patch Editor Renita Young, this new feature will highlight some of the news, people, events from Evergreen Park.

On the premiere episode of the Evergreen Park Show, we'll see some of Evergreen Park icon Anna May "Babe" Ahern's most valuable possessions and talk to a few shoppers who were looking for a deal this week: Chicago Philanthropist Eleni Bousi, Michigan Avenue Magazine Editor-in-Chief Susanna Negovin, and Dr. Ian Smith from VH1's Celebrity Fit Club and the 50 Million Pound Challenge.

Babe's collection includes hundreds of Oriental, colorful porcelain, glass figures, antique furniture and more, that range from $1 to $12,000. In her home, she had several golf clubs that were never used and are in perfect condition. Her wardrobe spoke volumes of her feisty attitude: Jazzy sequin clothing, stylish furs and flashy jewelry.

Some notable memorabilia Ahern had includes a bat, baseballs and several baseball cards, all signed by Ahern's good friend Ernie Banks. There's also a huge Grandfather clock, formerly owned by Ahern's mom. Dustin Mauldin, of Chicago Luxury Estate Sales, the company hired by Ahern's estate trustees to run the sale, said when notorious Chicago gangster Al Capone's group went to rob a restaurant, one of Babe's family members jumped behind the clock to hide. You can still see two repaired bullet holes on the side of the clock.

Ahern died shortly after the sale of the Evergreen Golf and Country Club, but you can tell from her possessions that she led a colorful life. Her family had owned the property since the 1920s.
Mauldin gave us a tour of the collection. Take a look at items that are up for sale until Sunday, March 27, then let us know what you think.

After the show, see a preview of the next episode of the Evergreen Park Show, when we'll talk to Joseph Ward, a senior at Marist High School who devoted himself to a life of service.

Stay tuned!

Urban Business Roundtable: Shatoia Starks

2011-03-23T08:45:00.005-05:00

For WVON-AM radio and BlackEnterprise.com’s Urban Business Roundtable, Renita Young speaks with Shatoia Starks, owner of Mama Green's Gourmet Goodies, who used one of her great-grandmother's old recipes to build a Chicago-based food empire.

UBR Shatoia Starks 3-23 by renitadyoung

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Hosted by Alfred Edmond, Jr., Executive Vice President/Editor-in-Chief of BlackEnterprise.com, written by Executive Producer TaQuoya Kennedy, the Urban Business Roundtable is a weekly radio show, sponsored by Ariel Investments, airing CST Wednesdays at 8:30 a.m., Thursdays at 6:30 p.m. and Saturdays at 9:30 a.m. on WVON-AM 1690, the Talk of Chicago. You can also listen live online at WVON.com.

Urban Business Roundtable: Kevin Ross

2011-03-09T08:45:00.000-06:00

For WVON-AM radio and BlackEnterprise.com’s Urban Business Roundtable, Renita Young speaks with Kevin Ross. As an author, inspirational speaker, business consultant and designer life coach, Ross shares the rudiments of success in business and gives tips on living what he calls a "designer life."

UBR Kevin Ross 3-9 by renitadyoung

Urban Business Roundtable: Paul Willis

2011-03-03T08:45:00.001-06:00

For WVON-AM radio and BlackEnterprise.com ’s Urban Business Roundtable, Renita Young speaks with Paul Willis, one of the partners of Goodwell's Natural Food Market, a group that brought natural foods to Detroit, a known "food desert."

UBR Paul Willis 3-3 by renitadyoung

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Urban Business Roundtable: Joshua Williams

2010-10-27T22:21:00.001-05:00

For WVON-AM radio and BlackEnterprise.com’s Urban Business Roundtable, Renita Young speaks with 9-year-old philanthropic phenom Joshua Williams, President and CEO of Joshua’s Heart Foundation, a non-profit organization seeking to stop world hunger, one meal at a time.

UBR Joshua Williams10-27 by renitadyoung

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African Diaspora Today's Moments in Africana History--African Cell Phone Usage

2010-10-17T17:00:00.001-05:00

For WVON-AM radio’s African Diaspora Today, In this short segment of Moments in Aficana History, contributor Renita Young tells us about the innovative ways Africans are using mobile phones and the reasons why more people use cellular phones in Africa than anywhere in the rest of the world.

Cell Phones in Africa - 10.17.10 - Moments in Africana History by renitadyoung

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Hosted by Dr. Carol L. Adams, the newly appointed CEO of the DuSable Museum of African American History, African Diaspora Today is a program designed to discuss, learn and gain meaningful insights regarding the politics, economics, culture and topics regarding Africa and the African Diaspora. Sponsored by the Urban Health Initiative at the University of Chicago Medical Center. It airs on Sundays from 3:00 p.m. to 5:00 p.m. CST on WVON-AM 1690, the Talk of Chicago. You can also listen live online at WVON.com

Urban Business Roundtable Profile--Susan Taylor

2010-10-13T11:00:00.000-05:00

For WVON-AM radio and BlackEnterprise.com’s Urban Business Roundtable, Renita Young speaks with Former Editor-in-Chief of Essence Magazine and journalistic icon, Susan Taylor, about her career, and her current initiative with the National Cares Mentoring Movement.

UBR Susan Taylor10-13 by renitadyoung

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African Diaspora Today's Moments in Africana History--Homowo Festivals

2010-10-10T21:11:00.001-05:00

For WVON radio, African Diaspora Today's Moments in Aficana History, contributor Renita Young tells us about Ghanaian Homwo Festivals, which date back to the actual origin of the Ghanaian people. Meaning "hooting at hunger," the celebration is the largest cultural festival of its kind.

Homowo Festival - 10.10.10 - Moments in Africana History by renitadyoung

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Urban Business Roundtable Profile--Byron Lewis

2010-10-06T16:59:00.003-05:00

For WVON-AM radio and BlackEnterprise.com’s Urban Business Roundtable, Renita Young speaks with Byron Lewis, founder and CEO of the New York-based Uniword Group, Inc., a multi-million dollar advertising company.

After searching for work in a field with very little luck, Lewis decided to make his own path.

UBR Byron Lewis10-6 by renitadyoung

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African Diaspora Today's Moments in Africana History--Petoria Women's Protest

2010-10-03T21:01:00.002-05:00

For WVON radio, African Diaspora Today's Moments in Aficana History, contributor Renita Young tells us about the 1956 Petoria Women's Protest in South Africa, which is now commemorated as National Women's Day.

Pretoria Women's Protest - 10.3.10 - Moments in Africana History by renitadyoung

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Urban Business Roundtable Profile--Judge Karen Mills-Francis

2010-09-29T13:26:00.001-05:00

For WVON-AM radio and BlackEnterprise.com's Urban Business Roundtable, Renita Young speaks with Judge Karen Mills-Francis, host of the nationally syndicated Judge Karen’s Court, known best for her trademark burgundy robe.

Miami-Native Judge Karen Mills-Francis' show premiered on September 20th, and she just published her first book, pictured above.

UBR Judge Karen9-29 by renitadyoung

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Hosted by Alfred Edmond, Jr., Executive Vice President/Editor-in-Chief of BlackEnterprise.com, the Urban Business Roundtable is a weekly radio show, sponsored by Ariel Investments, airing CST Wednesdays at 8:30 a.m., Thursdays at 6:30 p.m. and Saturdays at 9:30 a.m. on WVON-AM 1690, the Talk of Chicago. You can also listen live online at WVON.com.

African Diaspora Today's Moments in Africana History--Nollywood

2010-09-26T17:00:00.001-05:00

For WVON-AM radio’s African Diaspora Today, In this short segment of Moments in Aficana History, contributor Renita Young tells us about the world's second most lucrative movie industry--Nollywood, in Nigeria. Second to India's Bollywood, Nigeria churns out over 2400 films a year. Listen to hear what makes Nollywood so successful.

Nollywood - 9.26.10 - Moments in Africana History by renitadyoung

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Urban Business Roundtable Profile--Don Coleman

2010-09-22T19:30:00.001-05:00

For WVON-AM radio and BlackEnterprise.com's Urban Business Roundtable, Renita Young speaks with Donald A. Coleman, founder and CEO of Southfield, Michigan-based Global Hue, the nation's largest black-owned advertising agency.

Don Coleman started out as a linebacker in the NFL, but after an unlucky blow to the knee, retired, went on to earn his MBA then built a multicultural advertising empire.

UBR Don Coleman9-22 by renitadyoung

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Hosted by Alfred Edmond, Jr., Senior Vice President/Editor-in-Chief of BlackEnterprise.com, the Urban Business Roundtable is a weekly radio show, sponsored by Ariel Investments, airing CST Wednesdays at 8:30 a.m., Thursdays at 6:30 p.m. and Saturdays at 9:30 a.m. on WVON-AM 1690, the Talk of Chicago. You can also listen live online at WVON.com.

Renita D. Young featured on Medill's website

2009-11-24T19:26:00.005-06:00

CHICAGO--Renita D. Young was recently featured on the Medill website sharing her experience reporting in Kenya for the Global Journalism Program.

Kenya: Embarking on a ‘freer’ press

2009-03-20T07:57:00.005-05:00

NAIROBI - The concept of a free press is relatively new in Kenya, East Africa's most populous democracy. Until 1998 the press was heavily controlled by the government. It gradually gained its freedom and found its voice. However, the 2008 revision of an earlier law is worrisome to media professionals, as they continue to hope that their role will be held in higher regard, that they will be seen as an agent of change in Kenyan society, as holding the government accountable for its actions, and as leading the fight against corruption.

I gained a first-hand view of a Kenyan television operation working as a business reporter with K24-TV from January to March 2009.

“Media has advanced greatly over the years,” said Rose Kimotho, managing director of Regional Reach Media, the parent company of Kameme FM and newly–launched K24-TV, an all-news station, both in Nairobi, the capital. As people grasped the phenomenon of press freedom in Kenya, she said, several changes have allowed for more objective journalism geared toward a Kenyan audience.

According to Kimotho, when Kenya gained independence from Britain in 1963, the vast majority of programming on the government-owned radio and television stations was British and American. Until 1992, Kenyans had access to only one state-owned and -operated channel, KBC, Kenya Broadcasting Corp. Presently, more outlets broadcast in Swahili and Kenyan languages and address their reports directly to Kenyans.

Nevertheless, Kimotho went on, since independence the relationship between Kenyan media and government has been tense, mainly because of policy regulations and a general societal fear of the government.

“The media played a crucial role in agitating for a change to the Constitution to allow for multi-party democracy in early 1990," said Kimotho. “It played a role in educating the public on democratic and human rights.”

From 1988 to 1991, when there was a struggle for multi-party democracy in the country, journalists were routinely arrested, detained without trial, maimed and murdered. However, Kimotho said, “Harassment of journalists is now largely a thing of the past.”

Likewise, while I was in the country, Kenyan journalists often challenged the government to arrest and prosecute the people responsible for the violence following the 2007 election that left over 1300 people dead and chased many more out of their homes.

The press did not shy away from confronting the government. The media boldly asked questions and aired opinions on why the perpetrators should be brought to justice— because many victims and witnesses knew who they were, but weren’t willing to blow the whistle—and how they should be prosecuted—either by forming a special tribunal within the country or sending them to the International Criminal Court in the Hague.

In this instance, the media’s role was to keep all sides of the debate in parliament visible to residents while simultaneously urging the government to justly prosecute the wrong-doers. Kenyan media competently filled the role and informed residents so that they could actively participate in the conversation.

The general consensus among media professionals in Kenya is that the industry has matured and advanced since Independence, reflective of press freedom, advanced media training and the worldwide technology boom.

“Compared to previous years, much has changed, from broadcast and print media technology,” said Violet Otindo, a producer and reporter for K24-TV. “We’ve come a long way in terms of equipment, accessibility to Internet, to advanced knowledge by media practitioners, as well as licensing of many stations.”

Changes in media laws in the early '90s enabled more independent media organizations to spring up, including Kimotho’s eight-year-old Kameme FM and now K24-TV, which celebrated its one-year anniversary in December 2008.

The most recent data posted on the Communications Commission of Kenya Web site states that as of September 2005, 89 television frequencies and 244 FM radio frequencies were assigned.

Over the years there has also been a higher interest in journalism as a career and a sense of “upping the journalistic ante" among competitors. Otindo, who’s among the growing population of young journalists in Kenya, observed, “talent was a major factor before you could join any media organization. But now there are many media colleges and universities that have seen many trained journalists join the field—hence the focus on a higher quality of professionalism in journalism.”

Still, many media professionals in Kenya say although the 21st-century press model is much more liberal, the country has a long way to go before citizens feel fully comfortable to air their opinions and media personnel are not controlled by government officials with a vested interest in their output.

“Information is still not freely accessible for both the public and government for fear of victimization of the informants. Journalists and media houses as well live in fear, especially with the recent media law,” said Otindo.

The Kenya Communications Amendment Bill 2008 caused a great deal of controversy among media outlets. Enacted in late 2008 to amend the Kenya Communications Act 1998, the bill was drafted primarily to regulate the growth and usage of communications technology, including mobile telephones, Internet and satellites.

Causing an uproar and mixed views among broadcasters, section 46 of the newly amended law allows the government-appointed Communications Commission of Kenya “the power to set standards for the manner, time and type of programs to be broadcast.”

“The new media law does not promote free press. It was based on the conservativeness of Kenyans that continuously limits us to express ourselves in the best way possible,” said Kelvin Saito, a producer at K24-TV.

Kimotho concurred that the law is a potential threat to free, objective journalism, stating that “the law grants the minister in charge excessive powers that could be abused.”

Judging by conversations with journalists, reports aired on Kenyan radio and television, and opinion articles in Kenyan newspapers, some media practitioners in the country apparently see the new bill as a roadblock, yet another way for the government to gain back control of the media.

“It still ties our hands on what should and should not be aired as the government deems right,” said Otindo. “However it should be reworked to allow for a different body to make sure wrong information either given for monetary benefits or along tribal lines does not infiltrate the audience and bring a situation like the recent post election violence.”

Others, however, say internal controls regulate the media more so than the government. “Professional ethics are what carry the media through here,” said Kenneth Mijungu, a reporter at K24-TV who studied law before joining the station in late 2007.

“Media in Kenya cannot be said to be either free or suppressed. Media houses operate on the company policy, but they’ve historically gone overboard by internally censoring content.”

Vukoni Lupa-Lasaga, a former East African journalist and current candidate for a master's degree in media studies at DePaul University in Chicago, agrees.

“During the one-party period dominated by just two presidents, the now deceased Jomo Kenyatta and retired Daniel Arap Moi from 1964 to 2002, there was outright media repression,” he said. “Journalists were often arrested or harassed. This further caused self-censorship to affect what newspapers and broadcast media could report.”

Many Kenyan journalists say the media play a crucial role in society. Noting how the Kenyan media actively assumed the watchdog role when reporting on the non-prosecution of the post-election violence perpetrators, journalists in the country say that should be a standard practice.

“In Africa, the media has a role that should go beyond the traditional ‘watchman role’ on behalf of society, as in the West,” explained Kimotho. “ In addition to reporting on the excesses of those in power and calling for good governance, media in Africa should also play an educational role in critical areas such as health, for example primary healthcare and HIV; agriculture, dealing with more productive farming methods and the preservation of culture; and the advancements in technology, among other relevant topics.”

Saito said, “The media has a big role in transforming our country since we have the power to write and air what we feel is important, give a voice to the unvoiced and thoroughly investigate to seek the truth and report it.”

Some people feel that it’s the media's duty to lead the fight against corruption, but unfortunately, “Industry-wide, rampant corruption has a debilitating effect on good journalists,” said Lasaga. “It affects morale, so the best journalists often quit.” This is why Lasaga says Kenyan journalists may have to work extra hard to produce objective free journalism in a corruption-ridden country.

Although there are numerous drawbacks in Kenyan media, practitioners in the country say they see a bright future for the industry. Kimotho believes that despite tighter control authorized by the new media law, “Gains made in press freedom will not be reversed.”

As the focus shifts more on local media and more independent media companies spring up, she said, “there will be a greater growth in regional media versus national media.”

“The future is big for media in Kenya, but our biggest hindrances are the people in power,” added Saito, “but I believe we will always find a way out.”

The future could bring dramatic changes in Kenyan media. But there’s no doubt that it would take some form of cooperation or peaceful coexistence among the government and the industry to operate a totally free, objective press.

Institutions push to streamline the credit reporting process

2009-03-11T22:39:00.001-05:00

NAIROBI--During a global market meltdown, more Kenyan institutions are pushing to make credit more available for Kenyans and streamline the credit reporting process. Metropol East Africa unveils its M-Score program.

Citibank critics seek to reconcile Safaricom IPO position

2009-03-06T22:37:00.001-06:00

NAIROBI--Citibank Stock brokers and investment banks seek to reconcile positions nine months after the Safaricom IPO. KASIB and several critics suggests a third party investigation to find the actual position.

Kenya feels world credit crunch

2009-03-05T22:34:00.000-06:00

NAIROBI--During a global market meltdown, Kenya is seeking to avoid a local recession. Private and Public companies are feeling the extreme crunch of the economy and forcing creditors to come up with stricter lending laws.

Standard Chartered posts steep drop in year end results

2009-03-04T22:33:00.000-06:00

NAIROBI--March 4, 2009 Standard Chartered Bank posts substantial drop in earnings for the 2008 year end statement.

Real estate investments burned by lower remittances

2009-03-03T22:30:00.001-06:00

NAIROBI--Recent study shows that the real estate sector may be affected the most by lower diaspora remittances.

Kenyan diaspora remittances fall

2009-03-03T22:28:00.000-06:00

NAIROBI--Recent reports show that remittances from Kenyans living abroad have significantly lowered by nearly 30%, causing a steep effect on the Kenyan economy.

KCB 2008 FY results beat expectations

2009-02-27T22:26:00.000-06:00

NAIROBI--KCB released its 2008 financial results and posted better than expected earnings, despite the harsh economic climate.

Kenya markets experience lower than average numbers

2009-02-27T22:25:00.001-06:00

NAIROBI--This week, the Nairobi Stock Exchange plunged to record lows and analysts are siting a lowered investment confidence as the main reason.

Business leaders introduce 24 hour economy concept in Kenya

2009-02-25T22:23:00.001-06:00

NAIROBI--Local business leaders discuss the concept of a 24-hour economy in Kenya. Hosted by NCBDA and Telkom Kenya, the group discusses the need for city workers to conduct business around the clock.

Kenya enacts streamlined credit reporting system

2009-02-23T22:21:00.000-06:00

NAIROBI--The Kenyan Banking industry amends a recent banking act to establish a streamlined credit reporting system.

KPLC changes consumer payment methods

2009-02-20T22:20:00.002-06:00

NAIROBI--The Kenya Power & Lighting Co. announced it's changing payment methods that enforces a pay-per-use program and a metering system.

Kenyan government creates Brand Kenya Board

2009-02-19T22:18:00.000-06:00

NAIROBI--During a global economic meltdown and as the country seeks to repair itself from the post-election violence, the government created an entity that would market the country as a business.

Mobile banking security

2009-02-18T22:13:00.001-06:00

NAIROBI--Speculation over mobile banking security still hovers over consumers after the AITEC conference this week.

Kenyan banks tighten lending laws to avoid recession

2009-02-18T22:11:00.000-06:00

NAIROBI--As the global markets fall in the credit crunch, Kenyan Banks adopt stricter lending laws to safeguard against the same situation locally.

Mobile Banking Technologies previewed at local conference

2009-02-17T22:09:00.000-06:00

NAIROBI--New banking and payment technologies discussed at the AITEC Conference spark much debate over help for businesses.

Valentine's Day on a budget

2009-02-13T22:07:00.000-06:00

NAIROBI-- As Valentine's Day approaches, merchants wonder how the down economy will affect sales on one of the most popular days for one of the biggest contributors to the Kenyan Economy.

Kenya flower exports drop dramatically

2009-02-12T22:05:00.000-06:00

NAIROBI--As one of the biggest contributors to the Kenyan Economy, the country heavily depends on horticulture export volumes, but this past year, the global economic meltdown has put a damper on the market.

Kenya real estate takes hit from slumping economy

2009-02-10T22:03:00.001-06:00

NAIROBI--The Kenya real estate sector may take a huge hit from the global economic meltdown.

Mobile competition rises as Safaricom showcases new products

2009-02-09T22:01:00.000-06:00

NAIROBI--During a time where mobile competition is at a high level, several companies are showcasing new products and services to stay ahead of the pack.

The 'Kenya We Want' Wrap-up

2009-02-06T21:59:00.001-06:00

NAIROBI--As the Kenya We Want Conference wraps up, we review
how residents and leaders discuss ways on how to re-engineer Kenyan society.

Educational program gives students a head start

2009-02-02T21:57:00.001-06:00

NAIROBI--Local educational program sends students to start their secondary education at top schools around the country.

Nakumatt fire insurance coverage

2009-01-30T21:55:00.000-06:00

NAIROBI--Following a day of disaster in the city, Nakumatt and the Kenya Red Cross don't detail the specific insurance coverage the store chain should have, however a local expert tells us what's expected.

Nakumatt Downtown fire secutity critized by many

2009-01-29T21:53:00.000-06:00

NAIROBI--As the city seeks to repair itself from the Jan. 28th fire, Analysts and residents mutually agree that security and preparedness should be the top concerns after a tough lesson learned by the 2008 post-election violence.

Mobile phone competition drives innovation

2009-01-27T21:52:00.001-06:00

NAIROBI--Mobile phone competition among the top four companies in Kenya is driving up innovation, much to the benefit of consumers.

East African Community achieves trade agreement

2009-01-23T21:51:00.000-06:00

NAIROBI--New Legislation now allows all of the countries in the East African Community to negotiate trade agreements as a single bloc, but challenges may stunt some growth.

Kenya florists get a boost from new online program

2009-01-22T21:49:00.000-06:00

NAIROBI-- In a country where horticulture is one of the largest contributors to the Kenyan economy, florists are now receiving help from a company that aims to rid them of price uncertainty for their products.

Special Segment on US-Kenya relations

2009-01-20T21:46:00.001-06:00

NAIROBI-- As Kenya geared up for Barack Obama's Inauguration, citizens wondered what partnerships were in store for the two countries. I had the chance to speak with American Journalist Karen Rothmeyer and Kenyan Lawyer/Political Analyst Robert Asembo.

Kenya celebrates US President

2009-01-20T21:43:00.001-06:00

NAIROBI--The US Embassy of Kenya celebrates the Inauguration of President Barack Obama.

Obama Victory Feature

2009-01-20T21:41:00.000-06:00

NAIROBI--Barack Obama had a long and difficult journey to the Presidency. We take you from nomination to inauguration in less than five minutes.

Unemployment rises as Kenya faces slower economic growth

2009-01-16T21:38:00.001-06:00

NAIROBI--The unemployment numbers are rising and AID releases a report that says the global economic downturn is set to slow economic growth over 2009.

Nairobi Water Shortage

2009-01-15T21:37:00.001-06:00

NAIROBI-- Several places around the city have been severely hit by the water shortage and drought currently plaguing Kenya. We take you to Makongeki and Muthuwa estates and share a day in the life without sufficient water.

Higher water bills spark rage in Nairobi

2009-01-14T21:34:00.000-06:00

NAIROBI--The cost of water is set to rise in Nairobi, but critics and citizen advocates say consumers should be involved in the process.

Taxpayers lose confidence in the national budgeting system

2009-01-13T21:32:00.000-06:00

NAIROBI-- A recent study shows citizens of Kenya have a lowered confidence in the national budgeting system.

Local supermarket chain beats financial expectations

2009-01-12T19:00:00.000-06:00

NAIROBI--In the midst of a global economic meltdown, Supermarket chain Nakumatt posts higher than expected earnings for the 2008 fiscal year.

Car Makers bank on alternative energy

2008-12-05T17:31:00.000-06:00

Renita D. Young/Medill News Service

WASHINGTON - The Big Three car companies met with Congress to plead for $34 billion for the future of the U.S. auto industry during the first week of December touting their commitment to alternative energy cars. Each has several prototypes. Chrysler, LLC is concentrating on electric vehicles.

Chrysler displayed the Dodge EV and Jeep EV, two of its three brands equipped with advanced electric vehicle technology. The Dodge gets up to a 100 mile electric range, whilewsith the Jeep, has a 40 mile electric range, but a full tank of gas gives it a range of about 400 miles.

The company's president of ENVI, Chrysler's division created specifically for eco-friendly vehicles called the vehicles a necessity. "We are really serious about bringing electric vehicles to the market," said Lou Rhodes.

Still, the automakers said they cannot produce electric vehicles and make a true impact on the environment by themselves. They need help to stay in business until the public starts buying cars again.

Recession concession?

2008-12-02T17:33:00.005-06:00

Renita D. Young/Medill News Service

WASHINGTON - The U.S. has officially been in a recession for the past year, according to a Monday announcement from the National Bureau of Economic Research. Some economists say according to the technical definition, the U.S. is not in a recession.

"A recession is typically two consecutive quarters of negative growth," said Alex Moscoso, a Maryland-based economist. Moscoso said we've only had economic decline within the third quarter of 2008, with actual positive economic growth in the second quarter of 2008.

Still, many people are wondering how to keep the situation from getting worse. Jeffrey Kling, deputy director of economic studies at the Brookings Institution said, “The most important thing that we could do at this point is probably have the federal government borrow from the future and spend more now.”

Shop 'til you drop, or not

2008-11-25T15:22:00.009-06:00

Renita D. Young/Medill News Service
Aired on FOX News 2 in St. Thomas, Virgin Islands

WASHINGTON - Holiday shopping is the latest victim of financial market madness. As sales drop and unemployment rises, some people are caught between penny-pinching and scuffling for extra money.

"I think, all around, everybody's just holding tight. I know I am," said consumer Shaun Robinson. "So I guess you have to cut some of the people that you normally would buy gifts for and just get gifts for close family."

Another shopper, Anne Beemer said, "I'm trying not to put anything on my credit cards and I'm just looking to make sure I'm only buying what I need to buy as opposed to what I might want to buy."

Meanwhile, others say no matter how hard the times, they will continue to spend as much this season as they always have. Asked whether he will be cutting back on the holidays, Theo Carracino said, "No. Not with Christmas. I have nieces and nephews that would be horribly disappointed."

Retailers must now wait and see if they will meet market expectations this holiday shopping season.

Jobs dwindle as holidays approach

2008-11-20T18:14:00.006-06:00

Renita D. Young/Medill News Service

WASHINGTON -The latest Department of Labor statistics show the number of Americans filing for unemployment benefits reached a 26-year high. This comes just one week before Black Friday, the official start of the holiday shopping season.

Hours later, Congress agreed to extend unemployment benefits, sending the legislation to President George W. Bush who is expected to sign the bill.

For the week ending November, 15, initial claims jumped 27,000 from the previous week's figure to 542,000, a number not seen since 1982.

As market madness continues and people seek employment, some are trying to pick up holiday jobs, but those are few and far between.

Government and housing industry step up to help homeowners

2008-11-12T18:03:00.001-06:00

Renita D. Young/Medill News Service

WASHINGTON - In a bleak economy, industry professionals are working hard to help ease the effects on distressed homeowners. Tuesday the Federal Housing Finance Agency, HUD, HOPE NOW and a collection of mortgage professionals, announced a plan that intends to “help more people stay in their homes,” said Faith Schwartz, the executive director of HOPE NOW, an alliance of housing industry companies organized by the Bush administration last year. This time, while the primary focus is on homeowners with loans owned or guaranteed by mortgage giants Fannie Mae and Freddie Mac, the professionals strongly encourage other mortgage companies to adopt the same standard. The Streamlined Modification Program officially starts Dec. 15th. Here are some questions and answers about how the program works.

Q: How does the Streamlined Modification Program work?

A: Participating servicers, the companies that collect mortgage payments, work with eligible qualified borrowers to reach a more affordable mortgage payment through extending the term of the loan, lowering the interest rate, and/or forbearing principal. All outstanding late fees are waived.

Q: Who is eligible?

A: Borrowers who are 90 days or more past due on their Fannie Mae or Freddie Mac owned or guaranteed mortgage. They can have homes in foreclosure, but must not be in bankruptcy. The borrower must own and occupy the property and the property must be a single family residence.

Q: How do you apply for the SMP?

A: Borrowers can call their servicers with their loan number, monthly gross household income and HOA/condo fees. The servicer will then determinethe borrower’s property value and whether the loan is owned by a participating investor. If the borrower’s payments total more than 38 percent of monthly household income, then the borrower must submit a hardship statement, verification of monthly gross household income and a signed modification agreement. However to complete modification of their mortgage, the borrower must make three payments within 90 days at the new modified payment level and be current at day 90.

Q: What happens if a borrower is not eligible for the SMP?

A: Borrowers should ask for a case-by-case review. Call the servicer or a HUD-approved housing counseling agency to explore other options.

Source: HOPE NOW

Young and proud

2008-11-05T13:11:00.002-06:00

Renita D. Young/Medill News Service--Medill on the Hill Blog entry

Is this real, or did I dream it? That was the first question on my mind this morning when I woke up to a new America.

As a young African American, I didn’t think this day would come this soon, to see a black man elected president of the United States of America. It’s definitely a sign of progress, and as Maya Angelou, said last night in an interview with ABC anchor Robin Roberts, a sign that “My country has grown up.”

Washington is brimming with excitement. In this traditionally democratic area, I don’t think many really thought it was possible for this to happen so quickly, myself included. But I know from interviews with college students, blue-collar workers and people in corporate America, that the one thing we mutually agreed on was the need for hope and change in our country.

This morning everyone was a little nicer, smiled and walked a little prouder. There is an overwhelming sense of unity, love, tolerance, pride, and humility. I’ll never quite get the chance to articulate as great as it feels.

At the moment of truth, I was in my one-bedroom apartment in Maryland, tucked away on my couch, clutching the remote in awe and wishing that I were back home in Chicago for the grand celebration in Grant Park. In the midst of watching all of the mayhem, I shed tears of joy while imagining the history books change.

When the major networks announced Barack Obama as the 44th president, I was barraged with text messages that were filled with marvel. The first message came from my sister in Chicago, who says she regrettably didn’t make the Grant Park celebration. “Oh my God. Can’t believe I cried…still crying.” “Wow is this for real?! I need someone to pinch me,” my best friend wrote at 11:11 P.M. Another friend said, “This is such a proud moment for the entire country.”

A proud night to be an American.

The Obama win ranked number one in email conversations this morning with friends and family. We’re spread across the country, but in those few moments today, it felt like we were all in the same room celebrating history.

The most piercing message I got from this historic election is that anything can happen. If Barack Hussein Obama can grow up to be president in a world that has historically devalued African Americans, then anything is possible.

Change can happen and last night, it did.

Partisan paraphernalia

2008-11-04T19:00:00.000-06:00

Renita D. Young/Medill News Service

WASHINGTON - Hats, buttons and stickers. All things shoppers bought today to cast their vote for a presidential souvenir. Business was booming at the Political Americana Souvenir shop just down the street from the White House.

Obama memorabilia lined the shelves, but quickly sold. "We're selling much more Obama material than McCain," said Ronald Baker, the store manager.

A navy blue Obama '08 tee-shirt is the most popular item, but this store makes sure to stock the shelves for all supporters.

Race for Presidency ruled most expensive in history

2008-10-22T18:05:00.004-05:00

Renita D. Young/Medill News Service

WASHINGTON - The 2008 election is making history on many levels and now it's set the record for raking in the most dough. The Center for Responsive Politics, a nonpartisan research group, estimates more than $5.3 billion will go toward financing the contests, all set to come to a head in less than two weeks.

Democrats reversed the Republicans longtime lead in the campaign finance game in this election, because they controlled the congressional agenda and skillfully used online fundraising, especially in the presidential race.

“This election will blow through historic records on a number of counts,” said Sheila Krumholz, executive director of the Center for Responsive Politics in a media phone briefing Wednesday. The Center estimates that the 2008 election costs will jump 27 percent compared with 2004 costs. For the first time, a federal election has crossed the $5 billion threshold.

According to the Center, “The presidential race alone will cost nearly $2.4 billion.” Since campaigning started in January 2007, the candidates have raised over $1.5 billion. “This is the first time that candidates for the White House have raised and spent more than $1 billion, and this year’s total is on track to nearly double candidate fundraising in 2004 and triple 2000.”

Research shows that the same industries and interests who’ve funded past elections continue to lead the pack. The finance, insurance and real estate sectors donated more than $373 million, according to the Center.

And amid an economic meltdown, the donors who invested the most in this year’s campaign hailed from Wall Street. Goldman Sachs was the top donor, contributing more than $5 million. Citigroup came was a strong second at $4.2 million, and JPMorgan Chase & Co third at $4.1 million.

“Wall Street and other industries in the financial sector don’t seem to have tightened their belts—no signs of a recession in their political giving,” said Krumholz. “Of course, their contributions may be part of a strategy to continue securing government assistance for their businesses as the economy heads further south.”

Krumholz added that the top contributors favored Democrats over Republicans and the money paid off significantly. “Democrats have outraised Republicans consistently throughout this election cycle, and overall it appears Democrats will end up collecting 59 percent of the money raised in ’08. In 2004 there was a nearly even split between the parties.”

Taxing questions

2008-10-22T18:00:00.009-05:00

Renita D. Young/Medill News Service

WASHINGTON - A variety of issues ranging from national security to the economy are fueling passions in this presidential race. The candidates' tax proposals took a lead in the final presidential debate, and college students are wondering how they may affect them.

The top issue was the tax breaks that the candidates proposed. Sen. Barack Obama proposed to lower taxes for households making under $250,000, whereas Sen. John McCain proposed tax cuts for middle income and corporations.

"I'm a little nervous for my first job," said Margaret Walrod, a freshman at George Washington University.

Experts say students like Walrod are in better positions to wait for the market to turn around because they have time on their side. But students who will soon enter the workforce, do not.

"They may want someone who has an active job creations policy," said Tara Sinclair, who's a professor of economics and international business at GWU.

Still, whichever candidates post the most votes this election day, as Sinclair said, "All of these numbers are going to have to get through Congress."

Kind of a drag: Main St. business slows

2008-10-08T15:36:00.007-05:00

Renita D. Young/Medill News Service

Part of a Multimedia Project

Click HERE for partner print story and interactive map

LAUREL, Md. - Main Street businesses have been hit hard by the credit crunch on Wall Street lately, but not all in the same way. Merchants here describe their Main St. as a "shopper's street," but now, traffic is slow.

Many businesses are forced to cut back on necessities to pay basic bills. Sherron Algarin of Changing Faces Hair Boutique said in the four years she's been on the street, business is at its lowest. "Clients are coming in less often," said Algarin. "We've had to cut back on utilities to save money."

Owners at The Gallery, a framing store that's been on Main St. for 50 years, say sales dropped dramatically. "We usually have our regulars who come in. But right now, framing can wait," said Jessica Emery, whose family owns the building where The Gallery sits.

Meanwhile, at the consignment shop down the street, business is booming. Gary Haymes of Take It or Leave It Consignment Shop said that sales are up 40 percent this year, compared with last year. "People who bought more expensive furniture maybe two years ago are coming to us now," said Haymes. "Likewise, people need money, so they're selling old furniture to us." He added, "When times get difficult, this is where everybody turns."

Main St. workers and shoppers say that they're looking forward to an upturn, but as Haymes said, "We've got to hit bottom first."

College students weigh in on economic crisis

2008-10-02T15:56:00.019-05:00

Renita D. Young/Medill News Service
Published on Politico.com

WASHINGTON - It's hard to ignore news about the economic meltdown. Over the past few weeks, top investment banks have fallen, the Dow dropped to record lows and Congress has argued over a $700 billion rescue plan.

With the economy on a downward spiral, debate over how to keep the ship from sinking has spanned the globe. But how do college students feel about it? Students at American University shared their views on market madness.

"It makes me nervous," said Kristine Sackerlotzky, a freshman International Relations major. "I'm worried that when I get out of school, I'm not going to have a job and even in college I'm going to have difficulty finding a job because of the crisis."

International students brought a different perspective to the table. Hanane Babikir from Chad said the economy is working in her favor. "For most of the international students who are studying here, it has a positive effect. We get more money." Because the U.S. dollar has decreased among international currency exchange rates, some students from overseas can capitalize on the effects of the economy.

Other students are looking to the next president to help turn the country's economic woes around.

Caught in the Red

2008-08-31T21:02:00.005-05:00

Take a close look at just about any busy Chicago corner and you might want to slow down. Since 2003, Red light cameras have stood at some of the city's busiest intersections, but the price of running one could be hefty. Residents are wondering why the tickets and this year's peak in city revenues have them caught in the red.

Crime Up in Uptown

2008-08-03T17:57:00.006-05:00

Aired on WYCC on 8/3/08

Uptown residents have experienced a rise in gang violence lately. Active members of the community display their concerns as lawmakers and community leaders share how police and residents can help curb gang violence.

Mobile Real Estate Marketing

2008-07-20T17:46:00.005-05:00

Aired on WYCC on 7/20/08

In the tough market conditions, real estate professionals are seeking different ways to advertise property and stand out above the competition. The Real Estate Group takes part in a relatively new trend that brings real estate information to the palm of your hands.

Chicago teens converge on Capitol Hill to stop gang violence

2008-07-13T17:36:00.003-05:00

Aired on WYCC on 7/13/08

Chicago Police officials report that from January to May this year, total crime peaked more than 2 percent compared with last year. Murder was a huge part of that. But a group of local teens are trying to reverse the trend on Capitol Hill this week.

Taste Waste

2008-07-06T18:00:00.004-05:00

Aired on WYCC on 7/6/08

As the Taste of Chicago wraps-up, organizers and vendors are using eco-friendly ways to dispose of their waste.

Foreclosures peak to highest in 29 years, Mortgage delinquencies up

2008-06-05T17:00:00.002-05:00

Published by the Medill News Service on 6/5/08

Washington-based Mortgage Bankers Association reported Thursday that home foreclosures rose to a 29-year high in the first quarter, reflecting low home prices that prevent delinquent borrowers from satisfying their debt by selling.

The percentage of loans in foreclosure jumped to a seasonally adjusted 2.47 percent from 2.04 percent at the end of December. Subprime adjustable-rate loans, amounting to only 6 percent of outstanding loans, accounted for 39 percent of the foreclosures started in the quarter.

The seasonally-adjusted delinquency rate for mortgage loans on one-to-four-unit residences--loans with one or more payments overdue but not including loans in the process of foreclosure--increased to 6.35 percent from 5.82 percent in December.

The MBA, a research and economics group, stated that the national average foreclosure start rate rose to 6.32 percent, driven by rates in California and Florida.

Jay Brinkmann, the association’s vice president for research and economics, commented that “while the foreclosure start rates were up for all types of mortgages…the magnitude of the national increases is clearly driven by certain loan types and certain states."

Fran Mizzi, a real estate agent for Koenig & Strey GMAC Real Estate who conducts transactions throughout the Chicago area, agreed the foreclosure problem is exacerbated by low home prices.

“Many clients want as much money as possible for their house or at least break even,” said Mizzi, but if her clients are in danger of a foreclosure, she suggests they lower the price. Unfortunately, she added, that’s usually the only way to sell nowadays.

Although foreclosures nationally are at a peak, another recent report stated that Illinois and Indiana foreclosures declined in April, showing a subtle sign of recovery in the local real estate markets.

RealtyTrac, an online foreclosure properties database, said Illinois and Indiana foreclosures in April dropped by 3 percent and 1 percent respectively.

RealtyTrac spokesman Daren Blomquist said that In Illinois and Indiana, “some of the home prices have reached a level where buyers are saying ‘these are good prices for me to get into the market.’”

Mizzi said it’s no surprise that Illinois foreclosure rates have fallen, but, she added, “poor market conditions are not really driving foreclosures. It’s because there’s so much supply, so you have to make your place stand out from all of the other places price-wise.”

Mizzi also commented that the Chicago real estate market may have reached a bottom. “I don’t think it’s going down much more than this, but people’s confidence is goofed-up because of the media on it,” she declared.

Local entrepreneur creates own niche after leaving corporate America

2008-06-05T14:00:00.002-05:00

Published by the Medill News Service on 6/5/08

When business consultant Karyn Pettigrew, 44, left corporate America in 2002, she thought she would open a holistic wellness center. But after much soul-searching and discussion with her husband, she said she discovered her calling was to teach professionals, through coaching and consulting, how to apply intuition to traditional business practices

“I knew that I wanted to do something that helped people understand that things didn’t have to be the way that they were,” said Pettigrew. “I really wanted to revolutionize the way people work; your work is meant to be an expression of you.”

Pettigrew prides herself and her company, KPConsulting LLC, on an “Intuitive Business Strategy.” After working in several sectors of the corporate world for more than 15 years, she insisted her decision to leave the corporate side and start her business “was a conscious one and it’s allowed me to do what I really love while being present for my family.”

The 4-year-old River North business, primarily geared towards entrepreneurs, helps individuals and companies prioritize their work, by recognizing the connection between the personal and professional worlds, “intuitively.”

Julie Casserly, owner of JMC Wealth Management Inc. a financial planning firm in the West Loop, said, “Since working with Karyn, I have increased my revenues by 30 percent.”

Casserly, who met Pettigrew at a meeting with other entrepreneurs, began to consult with her on a personal basis shortly afterward because, she said, she felt there was something missing from her professional life. She admits, “I’ve used several different business coaches over the years, but Karyn taught me that running a business is a personal experience."

Pettigrew said that contrary to popular belief, people carry both personal and professional parts of their lives everywhere, so the connection should not be ignored.

President and CEO of her two-person corporation, Pettigrew said the most effective way to tackle business is to use a holistic approach, discovering what matters for the company and the individuals who make up the company “inside and out,” and using the personal-professional connection to their advantage.

Pettigrew received her bachelor of arts degree in economics from Wellesley College in Massachusetts and her master of business administration from Harvard University. At the start of her professional career, Pettigrew worked in banking, then with Quaker Oats Co., the Illinois Lottery and People’s Energy Corp. Her positions were in marketing, communications and corporate strategy, reflecting her “creative side,” she said.

While in the corporate world, Pettigrew said, she consistently held to one principle: “It was always about not just the analytical side, but the need to incorporate the creative side.”

After resigning from the Illinois Lottery, this thought pattern led her to write her first book, "I Quit." “At that time I was feeling like the cultures in organizations were deteriorating. It was often that people felt like, ‘I don’t’ have time to think,’” said Pettigrew.

Writing her book and the time off work, she said, helped put things into perspective and gave her time to explore how she could help entrepreneurs and corporate professionals.

“Karyn has assisted me in truly zoning in on my intuition, mission, vision and the most important part, actualizing it all,” said Casserly in a client testimony on Pettigrew’s Web site. “She helps me to get out of my own way.”

Michael Bolden, managing partner of South Chicago-based Chatham Consulting Group Inc. said, “She helped my company understand the nuances of business and where we wanted to go.” His company, which does marketing strategy and business intelligence consulting, recently landed two projects with Hilton Hotel. He credits Pettigrew’s intuitive and analytical business coaching “We would have never gotten it without her help.”

Pettigrew brings her combined experience to her business consulting enterprise as she markets KPConsulting’s platform and most recent programming approach, “The 360⁰ Intuitive Business Strategy.”

She said this strategy recognizes that “You can’t address just one piece. It’s important for people to look at all aspects of their lives and what it is that they’re ready to create in their lives so that that can be incorporated as opposed to excluded.”

According to Pettigrew, people are not able to fully disengage from an area of their lives to focus on another, as in “not bringing your work home” and “not bringing your personal matters to work.” She coaches people on identifying the different areas of their lives and using them to work in harmony.

“Instead of denying the areas of interconnectedness, my work is to take this philosophy, and with my team of referring practitioners, we know that the transformation begins from the inside out.” These practitioners are in a wide range of professions including marketing, psychology, finance, Web tech, new product development and sales.

Pettigrew said her “general operating philosophy” is a key reason why her business has not been affected negatively by the lagging economy. “In my opinion, if you understand the laws of attraction, then there’s always opportunity.”
KPConsulting’s operating philosophy, Pettigrew said, includes more than generating revenues, though her company grossed $150,000 in 2007. It’s about personal attitude, the quality of one’s work experience, satisfaction that one gets out of the work, recognizing the time for growth and the journey throughout.

Cheryl Wash, who directs Pettigrew’s programs, said the company has grown significantly over the past four years, from “working with small groups to small corporations and now traveling with different organizations in different cities.”

Recently, Pettigrew presented a workshop with the Women’s Leadership Exchange conference in Schaumburg. The New York-based organization is devoted to mentoring women in leadership positions as they continue in their profession.

Wash is also the president of Highest Good Publications Inc., the company that published Pettigrew’s book, ‘I Quit.’ She said, “I originally went to her because I was torn between how to keep my passion but to grow revenue and also understand that in the world of demand, there are certain books that you would not want to publish.”

Wash said that her struggle was whether or not she would compromise her integrity to make a few more bucks in a niche market, poetry and unknown writers.

According to Wash, Pettigrew showed her how she did not have to compromise to be successful in her profession. “Karyn has the ability to help people remain balanced at full capacity.”

Pettigrew said she believes people will always need her strategy to operate successfully in life. In the next nine months, she plans to turn the 360⁰ Intuitive Business Strategy into a traveling conference. To do so, she will take her own business advice and by collaborating with corporations and her referring practitioners, teach people “how to create from the inside out, what it is just what they want in business.”

Guess? shares jump 14 percent after upbeat 1Q earnings report

2008-06-04T17:00:00.009-05:00

Published by the Medill News Service on 6/4/08

Guess? Inc.'s shares climbed nearly 14 percent Wednesday, a day after the clothing designer and retailer reported strong first quarter profits driven by overseas sales of its apparel lines. The company's results beat Wall Street expectations by 5 cents.

Guess? said Tuesday that net earnings for the quarter ended May 3 jumped 35 percent to $47.8 million, or 51 cents per diluted share, compared with $35.5 million, or 38 cents per diluted share in the year-earlier period. Analysts polled by Zacks Investment Research Inc. estimated the company would post 46 cents per diluted share.

Total sales increased 29.4 percent to $489.2 million from $377.9 million in the year-earlier period.

The company, which has 13 stores in Illinois and Indiana, attributed first-quarter numbers to its earlier decision to “expand our international business.” In the company's earnings release, Guess? Chief Executive Officer Paul Marciano said, “Two-thirds of the revenue growth for the company was generated by our European and Asian businesses.”

For the quarter ended May 3, European net revenues increased 50 percent to $178.7 million compared with $118.9 million in the first quarter of fiscal year 2008.

Guess did not disclose net revenues for its Asian businesses. But the company said in its earnings release Tuesday that , “Net revenue from the wholesale segment, which includes the company’s Asian operations, increased 26.9 percent to $75.1 million.” In the prior-year period, the company’s wholesale segment posted $59.2 million in net revenues.

Betty Chen of Los Angeles-based Wedbush Morgan Securities said in an investment note released Wednesday, “We expect shares to react positively to solid Q1 results and forward guidance and continue to recommend investors accumulate shares as we look at GES to benefit from multi-prong growth strategies and international diversification.”

Chen said she is raising her fiscal year 2009 estimate to $2.48 per diluted share from the prior $2.40 per diluted share.

The company raised its own projection for the 2009 fiscal year to a range between $2.40 and $2.48 per diluted share, from the previously stated range of $2.35 to $2.45 per diluted share.

For fiscal year 2008, Guess? posted earnings of $1.99 per diluted share, beating prior guidance of $1.93 to $1.96 diluted earnings per share.

Guess? shares closed Wednesday at $43.11, up $5.24 cents from Tuesday's closing price of $37.87

Local real estate pros praise Chicago Spire

2008-06-04T17:00:00.008-05:00

Courtesy of www.thechicagospire.com
Artist's rendering of the Chicago Spire, to be completed in 2012.

Published by the Medill News Service on 6/4/08

After developer Shelbourne Development Group Inc. announced Wednesday that The Chicago Spire had sold 30 percent of its units, local real estate professionals expressed their enthusiasm for the new structure, one describing it as a "brilliant ray of sunshine" in an otherwise poor real estate market.

Bob Russell, founder of BestChicagoCondos.com, a Chicago-based independent
online publisher for Chicago condo sales admitted, "It's out of my league to live there, however I think it's great for the city and it's really historic."

Designed by Santiago Calatrava, an architect from Spain, The Chicago Spire will rise 2,000 feet as the "world's tallest exclusively residential building," according to Shelbourne Development Group. The 150-story building will hold 1,194 residences at 400 N. Lake Shore Drive.

Russell, who has been in the real estate publishing business for more than two
years, said the new structure will "reinforce Chicago as a world-class city."

According to building representatives, that's exactly the goal. Kim Metcalfe, a spokeswoman for The Chicago Spire, said Wednesday, "The Chicago Spire has always been marketed as a global building - not just international - domestic as well."

To date, 352 units have been sold, half to U.S. buyers and half to international buyers, Metcalfe said, noting that "a large amount of the domestic investors are from Chicago." According to Shelbourne Development Group, "No two units are the same."

The Chicago Spire has also joined the "green" movement. "We will be Gold LEED-certified," said Metcalfe. LEED is a green building rating system providing a set of standards for environmentally-sustainable construction.

According to a fact sheet, the building will incorporate several practices to meet gold LEED standards. The Chicago Spire will use recycled rainwater for landscaping treatments, river water for cooling, underground parking to reduce environmental impact and heat gain. Among other green features, the company said The Chicago Spire will be "15 percent more efficient than current energy regulations."

Russell said that based on the high-priced units that range from $750,000 to
$40 million, "these are not middle-class people who are buying these condos.
These are the power brokers of the world." According to Russell, the upscale international residents of the building will stimulate the local economy. "This could be one of the most significant things," he said, "the idea of people of those means from all over the world coming to Chicago."

Gerald Murphy, managing broker with Loop-based Urban Real Estate Inc. said many of the local investors will be "in-town" buyers who "live in the suburbs but
are looking for a place downtown." Murphy said these investors are now
retiring, but their children are grown and they no longer want the responsibilities of maintaining a home. These investors also want to live somewhere where they don't have to travel far to run errands, explained Murphy.

Murphy also said, along with the other real estate professionals surveyed, that the building will draw people to Chicago "who were considering getting property in New York," or other landmarked U.S. cities.

Fran Mizzi, a real estate agent for Koenig & Strey GMAC Real Estate who conducts transactions throughout the Chicago area, said that although 70 percent of the units remain unsold, developers won't have any problems reaching that goal before the project's completion in 2012.

"Any new building has a great amount of investors that want to get in on the deal earlier," she said. "But I think it's going to sell out."

Total U.S. construction spending takes a hit from the slumping economy

2008-06-03T17:01:00.001-05:00

Published by the Medill News Service on 6/3/08

The U.S. Census Bureau said Monday total construction spending in April dropped .4 percent below the revised March estimate, driven largely by a 2 percent drop in residential construction. Economists worry that the housing crunch may bring down nonresidential construction as well.

“The longer that this housing slump continues, the greater the chance that residential weakness is going to spread to nonresidential construction,” said Cliff Waldman, economist for the Manufacturers Alliance/MAPI, a Virginia-based public policy and economics research organization. “Residential construction generates the demand for public facilities”.

Waldman explained, “If we’re not building homes in a certain area, nobody’s going to build shopping malls, schools or houses of worship either.”

Total construction in April was estimated at a seasonally adjusted annual rate of $1,120.9 billion, compared with the March estimate of $1,125.8 billion. April construction was down 3.9 percent from the April 2007 estimate of $1,166.2 billion.

“It’s mostly residential. It just keeps going down,” said Jennifer Cooper of the Census Bureau. Private residential construction dropped 2.3 percent to $435.8 billion from the revised March estimate of $445.8 billion. “I do believe it’s the 26th or 27th consecutive decrease in private residential construction,” said Cooper.

Total private construction spending in April was at a seasonally adjusted annual rate of $823.8 billion, or .5 percent below the revised March estimate of $827.7 billion. Yet, at $388 billion, private nonresidential construction was 1.6 percent above the $381.8 billion revised March estimate.

But residential construction is already starting to pull on the nonresidential sector. Total nonresidential communication construction in April, related to telecommunications products, was down 6 percent to $27.4 billion from the March $29.1 billion figure.

While private residential construction took a plunge, public residential construction jumped 5 percent to a seasonally adjusted annual rate of $6.8 billion.

According to the Census Bureau, public construction is city, state or federally-owned property, whereas private construction is property owned by private companies, individuals or entities.

The estimated seasonally adjusted annual rate for total public construction in April was $297 billion, down from the revised March estimate of $298 billion.

Factory orders unexpectedly rise, inventories down

2008-06-03T17:00:00.002-05:00

Published by the Medill News Service on 6/3/08

Factory orders in April jumped 1.1 percent unexpectedly, due to a sharp increase in mining field, oil field and gas field machinery. Additionally, inventories dropped slightly, which some economists said might be a possible sign of economic recovery.

The U.S. Census Bureau said Tuesday that new orders for manufactured goods leaped $5 billion to $445.2 billion in April from $440.2 billion in March. Economists polled by Bloomberg expected a drop of 0.1 percent for April factory orders.

In addition, the previous month’s orders were revised upward slightly to a 1.5-percent increase. The U.S. Census Bureau originally said March orders rose 1.4 percent.

Mining field, oil field and gas field machinery jumped 49 percent to $2.2 billion in April from $1.5 billion in March.

Total April inventories were down slightly, following seven consecutive monthly increases. Inventories dropped to $545.7 billion from $545.8 in March, indicating that manufacturers were able to sell off their inventories faster than in March. Although the figure did not rise percentage-wise, experts say it shows a slight upturn in the industry.

“Manufacturers who survived the previous recession are breathing a sigh of relief. It’s weak, but these data show they’re not going to fall into the hole,” said Cliff Waldman, economist for the Manufacturers Alliance/MAPI, a Virginia-based public policy and economics research organization.

Inventories of automobiles were down to $2.4 billion, an 11 percent decrease from $2.7 billion inventories in March.

New orders for durable goods, products intended to last more than three years, fell 0.6 percent in April to $214.4 billion, and slightly worse than the 0.5-percent decline reported in last week’s preliminary report.

New orders for capital goods dropped 1.3 percent to $82.7 billion in April from $83.7 billion in March. Waldman described the April capital goods orders as “sluggish,” but said that “the slump is less to work off; it’s not going to be a big deal.”

Not surprisingly, new orders for construction machinery plunged 25.1 percent in April to $2.9 million from $3.8 million in March, reflecting the continued slump in the housing market.

Total April shipments rose 2.2 percent to $443.9 billion, from $434.4 billion in March.

Shipments of durable goods in April were up 1.6 percent to $213 billion from $209.8 billion, revised from the previously published 1.2-percent increase. Shipments of capital goods rose 1.6 percent to $76.6 billion in April after rising just 0.6 percent in March.

Economists said while the latest read on U.S. factories continued to reflect weakness in housing and in big-ticket durable goods, the overall jump in orders and decline in inventories could be signs that the economy is slowly resuscitating.

Men’s Wearhouse posts sharp loss, misses Wall Street estimate

2008-05-28T17:00:00.001-05:00

Published by the Medill News Service on 5/28/08

Texas-based Men’s Wearhouse Inc., men’s apparel retailer and tuxedo renter, reported late Wednesday that net earnings fell sharply to $9.9 million, or 19 cents per diluted share, in the first quarter ended May 3, from $40.9 million, or 75 cents per diluted share, in the year-earlier period.

Analysts polled by Bloomberg estimated the company would post 22 cents per diluted share.

Betty Chen of Wedbush Morgan Securities said Thursday, “We dramatically lowered our estimate and downgraded our rating to a hold from a buy recommendation. We’re still very impressed with the management team, but we believe that all of the negativity from the softness in tailored clothing and K&G will outweigh the benefits of tuxedo rental sales.”

In a research note released after Men’s earnings, Wedbush Morgan Securities lowered its 2008 estimate to $1.70 per diluted share from $2.

The company said it would have earned 20 cents per diluted share without $900,000 in costs to close its Canadian based manufacturing facility operated by its subsidiary, Golden Brand Inc.

Sales decreased 1 percent to $491 million from $496 million.

The company, which has 94 stores in Illinois and Indiana, cited low consumer traffic during current market conditions and the season nature of its newly-acquired tuxedo rental business After Hours Formalwear Inc.

The company backed away from its earlier guidance for 2008, stating, “Based on its actual results for the first quarter, the Company believes achieving a level of operating performance for the second half of the fiscal year anticipated in its initial annual guidance provided on March 12, 2008 will be challenging under current market conditions."

For the fiscal year ending Feb. 7, 2009, the company lowered its projection of diluted earnings per share to $1.65 to $1.75 compared with last year’s actual earnings of $2.73 per diluted share. The company had previously projected $1.80 to $2 per share.

Jaffe, noting that Men’s acquired After Hours Formalwear in April 2007, said, “After Hours, now MW Tux, historically loses money in the first and fourth quarters and is profitable in the prom and wedding seasons in the second and third quarters.”

In Thursday early afternoon trading, Men’s Wearhouse shares dropped $2 to $21.29.

First industrial beats low expectations, but analyst outlook remains divided

2008-05-22T17:00:00.002-05:00

Published by the Medill News Service on 5/22/08

Chicago-based First Industrial Realty Trust Inc., a real estate investment trust that owns, develops, operates and sells industrial properties only, unexpectedly beat Wall Street's estimate for the first quarter and hiked its quarterly dividend by 3 cents, but it also shaded its earnings guidance, so analysts are sharply divided on how it will perform through the year.

Three out of ten analysts recommend buying First Industrial stock, four say hold it and three say sell. Still, they all expect more good news from the company after its strong 2007 and healthy first quarter. This year’s consensus profit estimate is $4.78 per diluted share, better than last year’s $4.54 per diluted share.

Cleveland-based RBC Capital Markets recently raised First Industrial’s target price to $34 from $29. The stock currently trades around $31; its 52-week high was $45.47, while the low was $28.44.

Analysts at BMO Capital Markets in New York upgraded the stock to outperform from market-perform.

But analyst Stephanie Krewson of Philadelphia-based Janney Montgomery Scott LLC commented cautiously, “While we continue to expect the company’s full year results to fall within their original guidance, we believe management’s adjustment was prudently conservative given current challenging macroeconomic conditions.”

First Industrial widened its 2008 funds from operations (FFO) guidance from a previous estimate of $4.80 to $5 per diluted share, to $4.70 to $5 per diluted share. Last year First Industrial reported FFO, which omits depreciation and amortization, of $4.64 per diluted share.

Morningstar Inc. analyst John Coumarianos, who expects the REIT industry's sharp decline in revenues last year will continue through 2008, notes that one third of First Industrial’s income is from sales of speculative buildings, and says that creates added risk.

First Industrial owns, manages and has under development more than 100 million square feet of industrial space throughout North America and Europe, including 27 speculative development sites. So far this year the company has maintained a a rapid pace of both acquisitions and additional purchases.

In May it sold an industrial building in Missouri to Barnett Capital Ltd. for $8.25 million, and in April sold a four-building portfolio in the Chicago area to Cobalt Capital Partners of Dallas for $14.85 million.

First Industrial started the year with a string of acquisitions. In April, the company bought three buildings in California for $40.4 million.

First Industrial recently erected the First Garland Business Center in Garland, Texas, a 944-square-foot office and warehouse space. The company announced in April it completed its first acquisition in the Edmonton market, 55 acres for future development. This makes 77 acres of developable land in the Calgary/Edmonton region after the company acquired 22 acres in Calgary early in the first quarter.

First Industrial spokeswoman Anne Barer admitted that speculative property “is perceived as a somewhat risky business because you are building a building ahead of demand,” yet, when compared with its peers, she insisted, the company "benefits from the fact that there’s a much shorter construction time. In that respect, speculative development is not perceived as risky in industrial real estate because it takes us less than a year to develop a building. If the market turns, it’s much easier for us to stop building.”

Last year First Industrial's net income available to common stockholders jumped to $131.7 million, or $2.99 per diluted share, on strong revenues of $434.9 million, compared with $90 million, or $2.04 per diluted share, on revenues of $350.9 million, in 2006. FFO per share climbed to $4.64 from $4.13. First Industrial paid $2.85 per share in dividends in 2007, up from $2.81 in 2006. The recent increase puts the annual rate at $2.88 per share.

For the quarter ended March 31, First Industrial reported a slip in funds from operations of 3 percent, but beat Wall Street expectations by 8 cents per diluted share. FFO totaled $55.2 million or $1.12 per diluted share, compared with $57.1 million, or $1.12 per diluted share in the year-earlier period. Analysts polled by Thompson Financial expected an FFO of $1.04 per diluted share.

Top competitor Colorado-based industrial REIT ProLogis Corp. posted a better first quarter despite market conditions. Its FFO was $1.38 per diluted share, up from $1.25 in the 2007 quarter.

DuPont Fabros Technology posts significant jump in earnings

2008-05-15T17:00:00.001-05:00

Published by the Medill News Service on 5/15/08

Washington, D.C.-based DuPont Fabros Technology Inc., builder, owner and operator of wholesale data centers, posted a sharp increase in first-quarter net income to $5.6 million, or 16 cents per diluted share, compared with $0.5 million in the year-earlier period, before the company went public. The company beat Wall Street's expectations and reaffirmed its guidance for the full year.

Catherine Shipstead, a company spokesperson, explained the earnings jump is mostly attributed to the company’s growth and increase in buildings after going public in October 2007. “Their platform was much smaller last year. The net income increased significantly because they increased their platform.”

First-quarter funds from operations (FFO) was $22.5 million, or 34 cents per diluted share and unit, beating the median estimate of 27 cents per diluted share by 6 cents.The company defines funds from operations, a commonly used REIT measure, as net income minus gains or losses from sales of property, depreciation and amortization, and after adjustments.

Total operating revenues for the quarter jumped to $41.5 million, more than five times the year-earlier $6.16 million.

In a statement Thursday, President and CEO Hossein Fateh said, “We continued to make progress on the execution of our strategic plan in the first quarter, and we are on track to meet our 2008 guidance.”

The company reaffirmed its guidance for 2008, expecting FFO to be in the range of $80.3 million to $87.0 million, or $1.20 to $1.30 per diluted share and unit.

On a conference call with analysts Thursday, Steven G. Osgood, executive vice president and chief financial officer, said that the company set guidance lower than first quarter performance because of plans to open phase one of its new data center in Elk Grove Village this July.

“[The company] will no longer be able to capitalize, specifically interest, and have to start including interest expense, as well as those operating expenses that are not recovered from our tenants.” He said, “The second half of the year will not be performing at the same level.”

Amid the lowered expectations, Fateh said, “We still feel very optimistic about the leasing market in Chicago [area].”

DuPont Fabros Technology shares rose 2 cents to $18.01.

National foreclosure rates climb, but Illinois and Indiana rates are down

2008-05-14T17:00:00.002-05:00

Published by the Medill News Service on 5/14/08

While the number of foreclosed properties nationwide increased more than 4 percent in April, Illinois and Indiana foreclosures dropped by 3 and one percent, respectively, according to RealtyTrac, an online foreclosure properties database.

The RealtyTrac report Wednesday showed total U.S. foreclosures filings rose to 243,353 in April, or one in every 519 homes, compared with 233,089 foreclosure filings in March 2008. The company ranked Illinois 13th and Indiana 11th in U.S. foreclosure filings through April, compared with Illinois’ 14th –place ranking and Indiana’s 11th in March of this year.

“The percentage change indicates that there is a slowing in the acceleration of foreclosure activity,” said Daren Blomquist, marketing communications manager for RealtyTrac. “I would guess that at least Illinois may be close to hitting a bottom of this market.”

Blomquist said, however, this does not indicate that the Illinois foreclosure rate will rebound immediately, but “at least it’s not going to continue to increase as much on a month-to-month basis.”

The main point, Blomquist explained, is that home prices have not become too expensive for home buyers in the two states. “They [home prices] have not skyrocketed out of control for people. The demand for buyers has not diminished versus other areas where their prices have to come down more.”

According to Blomquist, because there are often month-to-month fluctuations, the year-to-year changes are more indicative of the trend, thus, the “slowing” of foreclosure filings for Illinois and Indiana still stands.

Based on RealtyTrac data, total U.S. foreclosures filings rose 65 percent this April, compared with 147,708 foreclosure filings in the year-earlier period. Compared with this year, the company ranked Illinois 9th and Indiana 11th in foreclosure filings during April of 2007, translating to a one percent increase for Illinois and a 26 percent jump for Indiana..

In an earlier statement, Blomquist said the difference between foreclosure rates in the two states can be attributed to Illinois’ stability and Indiana’s proximity to Detroit’s faltering automotive industry.

Joel Epstein, immediate past president of the Greater Indianapolis Mortgage Bankers Association, explained the top issues causing Indiana foreclosures are: loss of jobs, health issues, adjustable rate mortgages that are re-setting, rising property taxes and mortgage fraud.

Meanwhile, Indiana mortgage companies have mixed foreclosure results. Although foreclosure filings are up from last year, Epstein said some companies insist that because they didn’t issue sub-prime loans or no-verification loans earlier, they are not experiencing much foreclosure activity now.

An indicator that the housing market has reached a bottom is “when home sales start to turn around in tandem with foreclosures. That may be already happening," Blomquist said. "That may show that more people are re-entering the market and foreclosures are ‘normalizing.’”

He noted that, “Historically, the normal foreclosure rate is one percent, or below, of all outstanding [U.S.] mortgages. Currently, we’re probably around 4 percent of all mortgages.”

Some wonder whether Trump Tower's glitter will be gold

2008-05-13T11:56:00.007-05:00

Renita D. Young/Medill

Published by the Medill News Service on 5/13/08

With the Trump brand now a permanent fixture in the neighborhood, downtown Chicago residents and workers have mixed feelings about what its presence means during times of a flimsy economy, depressed housing and the gap between the rich and poor growing wider.

The Trump International Hotel and Tower Chicago, located at the old Chicago Sun-Times building site on the Chicago River, boasts "breathtaking" city views, a remarkable restaurant and the "most amazing" spa" in the city, according to the company. Given the appeal this structure has added to Chicago, some may find it hard to believe that it could bring any distress to the city or its residents.

Ald. Brendan Riley of the downtown 42nd Ward said at a media reception previewing the building last month, “projects like this one will help fuel the economic engine for years to come.”

Soon to be the second tallest building in the city, Trump Tower will stand 92 stories and 1,392 feet tall. To date, more than 75 floors have been poured, according to Leah Harriett, sales manager for residences at Trump Tower Chicago. Harriett said that because construction crews do “staggered construction” on the floors, she is not able to determine how many floors are fully complete. Concrete crews pour two floors of the building every week.

Local architects have mixed views about the design and aesthetics of the prominent new tower. [See accompanying video.]

According to Harriett, approximately 75 percent of Trump Tower's hotel condominiums and residences are sold. Condominium residences are scheduled to open this summer, and construction of all units should be complete by the summer of 2009, with the entire project completed later that year.

Trump Tower condominium residences range in size from 580 to 6,800 square feet with prices that vary from $580,000 to more than $9 million. Costing anywhere from $850,000 to over $3 million, the hotel condominiums are 530 to 2,245 square feet. Trump Tower representatives declined to release hotel condominium room rates, however, according to the website, current prices range from $385 to just over $1800. Lauren Larson, public relations representative for Trump Tower Chicago, said the “Trump Experience” rates on the website are special first-year rates.

The hotel condominiums, some of which are owned by buyers of residential condos in the building, opened last month and have regular visitors. According to Peter Raisch of Taylor Johnson & Olesker, a public relations company that represents Trump Tower Chicago, investing in hotel condominiums is a growing trend that’s an alternative form of ownership in the uncertain current real estate market. “Owning a hotel room is like an investment. It’s also a way for hotels to gain revenues with the market the way it is.” Raisch said this trend is especially common among “high-end” hotels.

The building’s reputation has survived earlier controversy over city building officials’ decision to allow the hotel to open while the building is still under construction. Now the bar, restaurant, spa and health club are open as well.

Trump Tower brings several possibilities to Chicago. “It will do nothing but drive the nearby property values up,” said Renee Guider-Selmon, who owns a condo in the area. Selmon has lived across the street from the site since before the Chicago Sun-Times building was demolished in 2004.

Guider-Selmon said that in the depressed housing market, she can see the area property gaining considerable value within the near future because of proximity to Trump Tower. “It also gives us bragging rights to be able to say that we live just across the street from Trump Tower. I think it’s a good thing.”

In a different light, Julie Gumiela, a worker at a nearby Dunkin’ Donuts, said the building is just too rich and should be more “down to earth.” She said, “low income housing could go there.” Gumiela, who said she sees no advantages to the new building, continued, “It will only drive area taxes up.”

Brian Champ, a nearby homeless man, said the building’s presence is a sign that those who can, do; and those who can’t, won’t. “I sit right across the street from a multi-billion dollar building and I can’t even get a job there. I filled out three applications and they say I’m ‘overqualified.’” Champ said he takes it in stride and “it’s just business.” He continued, “I don’t get mad; nobody owes me anything. But that’s good for the people who can afford to take advantage of the new building.”

Champ brings attention to how the new building is seen as a part of the community. When Donald Trump was asked at the opening event if there was a plan to give back to the community he remarked, “We work very strongly with the community.”

He went on: “We’re building all over the world and I do that no matter what city I’m in.” Trump, however, did not go into detail of how he plans to contribute to the community.

Asked whether Chicago’s depressed housing market was affecting business, Trump said fine timing afforded him much favor in the current market conditions.

“Hopefully [it’s affected us] positively, because I don’t think that anybody else is going to be building a building in Chicago for a while,” Trump joked. “I don’t see anyone being able to get financing. We have been able to build a building with old financing.”

A different perspective on the new Trump Tower came from workers who directly benefit from new construction and tourism. Tim Kelley, a carpenter steward who’s worked on Trump Tower for three years, said he sees the new building merely as a paycheck, another means to live. “It pays my bills,” although he added that he's helping to construct a building that he'll probably never be able to stay in because of its high room rates.

Trump Tower undoubtedly will bring more tourists to Chicago, as well as more jobs and revenues. Jerry Bafour, who’s a cab driver for Checker Cab, said it will be good for business because of the increased "workload," adding, “it will provide extra money for me.”

Renita D. Young/Medill

Local Architects who teach at the Illinois Institute of Technology School of Architecture say Trump Tower Chicago has a strong structure, but has failed in the innovation and interaction departments when it relates to groundbreaking Chicago architecture and an aesthetic city-community connection.

Illinois and Indiana foreclosures up, home prices down as housing crisis continues

2008-04-29T17:00:00.001-05:00

Published by the Medill News Service on 4/29/08

Foreclosures rose sharply in Illinois and Indiana in the first three months of 2008, according to Realty Trac, an online foreclosure properties database. Meanwhile, a separate report of home sales in major metropolitan areas by S&P/Case-Shiller showed that Chicago area home prices were still on the decline in February.

The Realty Trac report Tuesday ranked Illinois14th and Indiana 11th in U.S. foreclosures through March, with total U.S. foreclosure activity up 112 percent in the first quarter.

The S&P/Case-Shiller Home Price Indices, also released Tuesday, dropped 12.7 percent in February on an annualized basis for existing homes in the top 20 metro areas, while Chicago home prices fell 8.5 percent from February, 2007.

Foreclosure filings in the first quarter were reported on 649,917 properties in the U.S., meaning that one in every 194 U.S. households received a foreclosure filing, said Realty Trac.

Foreclosures in Illinois rose 54 percent in the first quarter of 2008 to 23,215 compared with the year-earlier period. That amounts to one out of every 224 Illinois homes in foreclosure, Realty Trac said, which includes default notices, auction sale notices and bank repossessions.

Indiana foreclosures rose 86 percent to 13,936 in the first quarter, compared with a year ago, or one out of every 198 homes in the state.

Daren Blomquist, Marketing Communications Manager for Realty Trac, said the difference between foreclosure rates in the two states can be attributed to Illinois’ stability and Indiana’s proximity to Detroit’s faltering automotive industry.

“There weren’t as many people jumping into those types of loans” they couldn’t afford in Illinois, Blomquist said. “Indiana is pretty similar to Illinois, but they have a higher foreclosure rate that is increasing at a slightly faster rate. It’s in part driven by Indiana being more affected by the economic problems with the auto industry, Indianapolis, particularly is a large part of that.”

Indianapolis ranked 24^th in foreclosure filings in the first quarter, according to Realty Trac, while Chicago ranked 42^nd out of 100 metropolitan areas included in the report.

Foreclosure filings have inevitably affected the prices of homes as owners are forced to sell their homes and more properties sit vacant on the market.

Maureen Maitland, a vice president at Standard and Poor’s, said the eight-county Chicago Metropolitan Division, which includes Cook, DeKalb, DuPage, Grundy, Kane, Kendall, McHenry and Will counties, is still in relatively good shape compared with the rest of the metropolitan markets included in the S&P/Case-Shiller report.

In part, that’s because Chicago is not as volatile economically as some other cities. “Some of the strongest growing cities [during the housing boom] were also the quicker [to have] falling prices,” Maitland said. “They are more volatile.”

“The data is showing that no market has turned around yet. Whether or not Chicago is going to turn around still remains unseen,” Maitland said.

Many have blamed the faltering economy for the housing crunch, but Blomquist says lenders were much larger contributors to the problem.

“What’s driving [foreclosures] largely is the real estate market that got overextended,” Blomquist explained. “People were able to get into loans that they couldn’t afford. They are highly susceptible to foreclosures.”

Blomquist said a good indicator that the housing market has reached a bottom will be found in home sales data.

“When you start seeing the home sales pick up, that might be a sign of the bottom because it indicates that the prices are low enough to entice buyers back into the market,” Blomquist said.

Mixed market conditions send Illinois home sales up

2008-04-22T17:00:00.001-05:00

Published by the Medill News Service on 4/22/08

Illinois total home sales in March rose significantly from February, even as national existing-home sales fell 2 percent in the same month.

According to the Illinois Association of Realtors, Illinois total home sales, which includes single-family, condominiums, new and existing homes, jumped 24.5 percent last month to 8,509 compared with February sales of 6,832. The Illinois median price, the price where half the homes sold for more and half sold for less, was $194,500 in March, down 1.3 percent from $197,000 in March of 2007.

Although March 2008 sales for the state were down 29.5 percent from 12,075 in March 2007, experts say they expect further progress this year as the season changes.

"The weather had a lot to do with it," said Connie Atterbury, a broker associate with Koenig & Strey GMAC Real Estate in downtown Chicago. "It was the worst in 20 years. In the office things started getting busy as soon as the ice started melting.” According to Atterbury, many of her clients even said they were waiting for the weather to break.

Kay Wirth, president of the Illinois Association of Realtors, stated in a press release, “There is a lot of pent-up demand and while people are being cautious given the uncertainty in the overall economy, the spring market is here and now is an ideal time to check out ample inventory in your area to purchase your dream home."

Meanwhile, national existing-home sales were down 2 percent to 4.93 million March from 5.03 million in February, according to the National Association of Realtors. The national median existing-home price for all housing types was $200,700 in March, down 7.7 percent from last March when the median was $217,400.

The national existing-home sales plunged 19.3 percent from March 2007 when 6.11 million units were sold. Nevertheless, as with the Illinois outlook, industry economists say an increase could come, dependent on market conditions.

The experts offer several reasons, in addition to the state of the economy, for the mixed real estate sales conditions.

Wirth partially attributed low home sales to the plunge of the Consumer Confidence Index, a measure of future consumer spending expectations. Consumer confidence dropped by 12 percent in March to 64.5, down from 76.4 in February, hitting a five-year low, according to the Conference Board, a private research company.

Richard Gaylord, president of the National Association of Realtors, said in a press release Tuesday that financing options are being changed. “It appears there is some over-reaction on the part of some lenders now in requiring higher downpayment percentages than may be necessary,” said Gaylord.

However, Adolfo Laurenti, an economist for Mesirow Financial, a diversified financial services firm headquartered in Chicago, said, “I think it’s a very conservative and reasonable response to realtors. It’s mostly due to a shortage of credit available, not lenders refusing to provide mortgage loans.”

Laurenti said the current financing options may come as a surprise in light of the blame now being heaped on the easy loan terms that fueled the recent boom in the housing market. "Most of the practices by realtors made during the housing boom of 2004-2005 were not sound market decisions. They extended lines of credit to people who should not have it.” He contends the change in financing options is an effort to equalize the market, rather than place more burden on the distressed.

Chief economist Lawrence Yun said in the Illinois Association of Realtors press release Tuesday, “Existing home sales could start to show a sustained increase within a few months, unless there are some additional economic or inflationary pressure.”

Equity LifeStyle Properties sees 22 percent decline in first quarter earnings

2008-04-15T17:00:00.001-05:00

Published by the Medill News Service on 4/15/08

Equity LifeStyle Properties, Inc., an owner and operator of lifestyle-oriented properties, said net income fell nearly 22 percent in the first quarter, a result that company CEO Thomas Heneghan called disappointing in a conference call with analysts Tuesday.

Net income in the quarter ended March 31 fell to $12.7 million, or 52 cents per diluted share, down 21.6 percent from the comparable 2007 quarter when it was $16.2 million or 66 cents per diluted share. According to WSJ.com, the average of analyst estimates was for net income estimate of 47 cents per diluted share.

Funds from operations rose 3.5 percent to $32.6 million, or $1.07 per diluted share, from $31.5 million, or $1.04 per diluted share in the year-earlier period. The company projected diluted shares of FFO to range from $3.15 to $3.30 for the year ending Dec. 31, 2008.

Heneghan attributed the bleak first-quarter numbers to the current state of the economy. “We believe the significant destruction in the credit market and the related fiscal and monetary responses, including both those under discussion and those that have been implemented, are creating additional volatility and uncertainty,” said Heneghan in the earnings conference call.

Revenues from the sale of inventory homes fell 32 percent to $6.2 million, compared with $9.1 million in the same period a year ago, resulting in a net loss of $253,000 from the sales, compared with a net gain of $772,000 in the first quarter of 2007.

Property operating revenues increased by 5.8 percent to $106.4 million compared with $100.6 million in the first quarter of 2007.

The company said expenses in its property operating section rose by nearly 5 percent, but said it expects a cooling in costs to about 4 percent for the rest of 2008 because of anticipated insurance savings.

In addition, the company announced a plan to boost revenues and occupancy. Joe McAdams, President of Equity LifeStyle Properties, Inc. detailed how the company would focus on improving sales and marketing, including developing a customer data warehouse for customizing marketing campaigns and revamping the sales process.

“Our first quarter that was reported this morning shows the stability of our business,” remarked Heneghan. “We are confident in our business plan, and over the long term, we believe we will be able to react to the changing economic environment.”

Shares of Equity LifeStyle Properties rose 55 cents, or 1 percent, to close at $49.61 Tuesday.

Tax relief for distressed homeowners

2008-04-09T17:00:00.002-05:00

Published by the Medill News Service on 4/9/08

Two new tax breaks will benefit homeowners who purchased or refinanced their homes in 2007, or who had mortgage debt that was forgiven, according to Jackson Hewitt Tax Service.

Qualified homeowners may take advantage of a deduction for mortgage insurance premiums paid in 2007. In addition, taxpayers who had mortgage debt that was forgiven during 2007 will not have to report that forgiveness as taxable income.

Tax professionals described the two laws as welcome relief in a troubled economy.

The Mortgage Forgiveness Debt Relief Act of 2007 "is really helpful in light of foreclosures," said Baruch Hampton, area manager of Jackson Hewitt on the South-East Side of Chicago.

"For mortgage debt, taxpayers can assume debt forgiven," said Sue Hales, a spokeswoman for the Internal Revenue Service in Illinois.

The mortgage debt must have been given for the taxpayer's primary residence. The loan balance must be less than $2 million for households, and less than $1 million for married taxpayers filing separately.

Also, eligible taxpayers will be able to claim mortgage insurance premiums as a deduction for 2007. Mortgage insurance is required by most lenders for homeowners who finance their home with a loan totaling more than 80 percent of the value of the home.

According to Alyda Thornton of Darien-based LAE Accounting Solutions, about 20 percent of her clients were able to take advantage of the mortgage insurance premium deduction this tax season, although "many people were not knowledgeable about the new tax deductions," Thornton said.

However, several restrictions apply. Homeowners must have entered into the mortgage insurance policy between Dec. 31, 2006 and Jan. 1, 2008. Households earning up to $100,000 adjusted gross income and married taxpayers filing separately who earned up to $50,000 adjusted gross income in 2007 will be able to deduct the full price of their mortgage insurance.

The deduction for households that earned more than $100,000 adjusted gross income last year will be reduced by 10 percent for each $1,000 over the $100,000. Married taxpayers filing separately will see their deduction reduced by 10 percent for each $500 that their adjusted gross income exceeds $50,000.