Monthly Archives: July 2009

Klapmeier cools his jets

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One month after unveiling plans to put together an investment team in order to purchase a jet-development program from Cirrus Aircraft, a company he co-founded, Alan Klapmeier apparently announced Friday that negotiations have stalled.

Klapmeier made the revelation to AVweb, an online aviation publication, which posted the news this afternoon. He told the magazine that one of the key "sticking points" in negotiations was the price of the jet program.

Our efforts to get in touch with Klapmeier late this afternoon have so far proven unsuccessful.

Likewise, Todd Simmons, Cirrus’ vice president of marketing, and Charlie Ogburn, an executive director of Arcapita Inc., which owns a majority interest in Cirrus, have not returned calls either.

This is a busy week for the likes of Simmons and Klapmeier, as both are in Oshkosh, Wis., for Airventure, the largest airshow in the nation.

On previous occasions, Cirrus management has said the company will remain committed to developing its first jet aircraft, dubbed the VisionJet, no matter what came of negotiations with Klapmeier and his investment group.

Klapmeier had expressed hope that with additional investment, he could accelerate the development of the new jet aircraft.

More cash for clunkers could be coming

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If you want to trade in that old gas guzzler and tap government incentives to replace it with a more fuel-efficient vehicle, you’re still in business through this weekend. At least that’s what White House Press Secretary Robert Gibbs is saying.

He told the Associated Press today: "If you were were planning on going to buy a car this weekend using this program, this program continues to run."

Lawmakers have mounted an effort to pump an extra $2 billion into the well-received "cash for clunkers" program.

The Associated Press reports that Democrats could vote today to provide a much-needed financial infusion for a program that’s quickly running out of dollars. The Transportation Department notified Congress Thursday that without additional help, it would need to suspend the program or risk falling short of funds.

The program offers drivers $3,500 to $4,500 for old gas-hog vehicles.

If you’ve looked into using the "cash for clunkers" program, we’d like to hear from you about your experience. What has the process been like? And did you get a decent deal? Let us know.

e-mail your story to ppassi@duluthnews.com. Please also include your full name and place of residence. A phone number for follow-up questions also would be handy. Thanks.

New jobless claims rise higher than expected

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The Associated Press reported  that the number of newly laid-off workers filing first-time claims for jobless benefits rose last week, the government said today, though the increase was mostly due to seasonal distortions.

The Labor Department said new claims for unemployment aid increased by 25,000 to a seasonally adjusted 584,000. That’s above analysts’ estimates of 570,000.

The number of people remaining on the jobless benefit rolls, meanwhile, fell to 6.2 million from 6.25 million, the lowest level since mid-April.

Thrivent Financial named a top company for women

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Thrivent Financial for Lutherans was named one of the Top 15 companies for women in this week’s issue of PINK magazine, a company news release said.

Thrivent, with offices in Duluth and Superior, is the only Minnesota-based company to receive the recognition, the release said.

The quarterly magazine with an estimated two million readers used a three-pronged criteria for selection — female representation in powerbroker positions and among its top earners, managements commitment to female advancement and the opportunity for a healthy life/work balance outside the office, the release said.

“This is a great honor for Thrivent Financial and our strong talent pool of women,” Jennifer Martin, senior vice president of Human Resources for Thrivent Financial, said in the release. “The culture, programs, and benefits that PINK recognizes as critical components to ensuring a great work environment for women are also what make Thrivent Financial a great place for all of our employees. We are committed to providing an inclusive environment in which everyone can succeed and reach their potential.”

Other companies receiving the honor include: Adobe Systems, American Express, Bebe Stores, Capital One, Grant Thornton, KPMG, Linebarger Goggan Blair & Samson, Liz Claiborne, Manpower, MetLife, Scholastic, Turner Broadcasting System, Wal-Mart and Wyndham Worldwide.

IRS warns homebuyers of fraud

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The Internal Revenue Service has warned first-time homebuyers of possible fraud schemes while using the federal tax credit program.

If you’ve fallen victim to fraud in this nature, please post a comment here or e-mail agreder@duluthnews.com. (Please include contact information.)

Here is today’s IRS news release:

ST. PAUL, MINN. — The Internal Revenue Service today announced its first successful prosecution related to fraud involving the first-time homebuyer credit and warned taxpayers to beware of this type of scheme.

On Thursday July 23, 2009, a Jacksonville, Fla.-tax preparer, James Otto Price III, pled guilty to falsely claiming the first-time homebuyer credit on a client’s federal tax return. Price faces the possibility of up to three years in jail, a fine of as much as $250,000, or both.

To date, the IRS has executed seven search warrants and currently has 24 open criminal investigations in pursuit of potential instances of fraud involving the credit. The agency has a number of sophisticated computer screening tools to quickly identify returns that may contain fraudulent claims for the first-time homebuyer credit.

“We will vigorously pursue anyone who falsely tries to claim this or any other tax credit or deduction,” said Eileen Mayer, Chief, IRS Criminal Investigation. “The penalties for tax fraud are steep. Taxpayers should be wary of anyone who promises to get them a big refund.”

Whether a taxpayer prepares his or her own return or uses the services of a paid preparer, it is the taxpayer who is ultimately responsible for the accuracy of the return. Fraudulent returns may result not only in the required payment of back taxes but also in penalties and interest.

First-Time Homebuyer Credit

The First-Time Homebuyer Credit, originally passed in 2008 and modified in 2009, provides up to $8,000 for first-time homebuyers. The purchaser, however, must qualify as a first-time homebuyer, which for purposes of this credit means someone who has not owned a primary residence in the past three years. If the taxpayer is married, this requirement also applies to the taxpayer’s spouse. The home purchase must close before Dec. 1, 2009, to qualify, and the credit may not be claimed on the purchaser’s tax return until after the taxpayer closes and has purchased the home.

Different rules apply for homes bought in 2008.

Full details and instructions are available on the official IRS Web site, IRS.gov.

Eddie Bauer to close fewer stores than feared

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Last month, Twin Ports Business made mention of potentially deep cuts by Eddie Bauer that could result in the closure of about one-third of the company’s stores.

Well, the outlook appears less grim at present. The Seattle Times now reports that the retailer’s new buyer has unveiled plans to keep about 300 of the chain’s 370 stores open. This would equate to closing about 19 percent of the company’s stores.

Information about the fate of individual stores has yet to be revealed, but the outlook for the survival of the store in Duluth’s Miller Hill Mall appears decidedly brighter.

Golden Gate Capital, based in San Francisco, submitted the winning bid in a bankruptcy court auction of Eddie Bauer’s assets, plunking down $286 million in cash. A judge is expected to take up the offer Wednesday, and if it is accepted, the deal could close in early August.

Eddie Bauer, based in Bellevue, Wash., employs about 8,600 people.

This isn’t Golden Gate Capital’s first foray into the clothier’s market. It purchased another clothing retailer — J. Jill — from Talbots for $75 million last month. 

Gold Cross will close downtown Duluth station

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Gold Cross Ambulance will close its downtown Duluth response center in September and will serve the downtown area with a tactic similar to police patrols, the Mayo Clinic Public Affairs office said today.

Two ambulances will travel around downtown on call to respond to emergencies during daytime hours, with one during the night, said Bryan Anderson, of the Mayo Clinic in Rochester, Minn., which owns Gold Cross.

“Patients won’t see a difference; there just won’t be a station downtown,” Anderson said. “The number of personnel won’t change.”

Gold Cross also will continue to serve the Twin Ports from its locations in West Duluth, Superior and Hawthorne, Wis., Anderson said.

“The downtown location doesn’t meet the needs of Gold Cross, and they can serve the area without that fourth location,” Anderson said.

Extreme home makeover plans pep rally

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Duluth’s effort to build a home for a Northland family in need is gaining steam. And at 8 a.m. Tuesday, volunteers have been invited to take part in a pep rally at Wessman Arena on the University of Wisconsin-Superior campus.

Builders Commonwealth, a Duluth-based build/design cooperative, is coordinating preparations for the arrival of ABC’s Extreme Makeover: Home Edition.

On Aug. 3, the show’s host, Ty Pennington, will knock on a door somewhere within 35 miles of Duluth and will inform a local family of plans to rebuild their home in 10 days flat. Five families are in the running.

All labor, materials and costs for the project are to be donated, and so far, the Twin Ports community has proven it’s up to the challenge.

"Everyone in the community has stepped up," said Jim Naus, a salesman for Builders Cooperative and coordinator for the project. "There have been very few no’s."

So far, about 100 different entities have each agreed to provide $1,000 or more of support for the initiative, either in the form of skilled labor, materials, food, various supplies or financial gifts, according to Naus.

On top of that, 900-plus general volunteers have stepped forward to offer their services. The outpouring of support has been so phenomenol that coordinators say they no longer need help from the general public.

If you’re a skilled professional in the building trades, however, organizers would still welcome your help with the project.

To volunteer or check out updates on the effort, click here.

Based on the level of support for the project he has witnessed, Naus said he’s now approaching this daunting construction task with confidence.

"There’s no nail-biting about how we’re going to get this done any more," he said. "We’ve lined up  a lot of professionals who have built a lot of houses."

LHB employees create new textbook

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Two LHB architects recently authored the textbook "Chapters in Architectual Drawing: Hand Sketching in a Digital World."

The book, written by Daniel Stine and Steve McNeill, is about the importance of hand sketching and digital visualization tools in current architectual practice, said a news relesase from the company with offices in Duluth and Minneapolis. The book is available through amazon.com.

 

Local Bed & Breakfast named one of Minnesota’s 10 best

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Minnesota Monthly has named Duluth’s A.G. Thompson House as one of the 10 best bed & breakfasts in the state. The August issue described the Thompson House as a tasteful combination of “classic — not frilly — decor and practiced hospitality.”

Innkeepers Tim and Angie Allen took over the B&B nearly two years ago and have sunk a lot of sweat equity into the place. They’ve repainted the exterior, redone several bathrooms, updated all the guest rooms, overhauled the kitchen and worked to improve about two acres of grounds, including extensive gardens. All this, while cheerfully welcoming guests into their home at the same time. Gasp!

Word of the B&B’s first-rate accommodations and service has spread far and wide. When I spoke to Angie Allen this evening, she was hosting guests from Illinois, North Dakota and Winnipeg.

Despite the ongoing recession, Angie said the B&B has enjoyed even stronger business than last year. Apparently, people still need to get away from the rat race sometimes, and Duluth fits the bill nicely.