Monthly Archives: March 2011

Scrutiny of Cirrus sale begins

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It did not take long for the proposed sale of Cirrus to a state–owned Chinese aviation company, to get the feds’ attention.

The committee on Foreign Investment in the United States will be reviewing the pending sale.

As the Wall Street Journal put it Thursday: “The inter-agency committee reviews foreign acquisitions that pose a potential threat to national security.”

Cirrus officials insist the personal aircraft it currently builds in Duluth  involve no trade secrets, no national security risk. But here’s where it gets sobering.  With the sale, China Aviation Industry General Aircraft Co. not only gains access to the Cirrus popular line of small planes but also the technology of the small jet it is developing, the Journal points out.

But neither Cirrus nor the Chinese appear worried.

They actually sought a national security review as a preemptive move, the Journal says.

Starbucks coming to Duluth Target

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So what can an upscale discount store like Target do to make its “guests,”  as they call their customers, even happier?

By offering them premium cup of java, of course.

To that end, a partnership between Starbucks and Target carved out in 2002 that’s been benefiting new Target stores and its super store conversions ever since, is coming to the Duluth Target  at 1902 Miller Trunk Highway.

A Starbucks coffee shop is going in near the store’s food cafe. It should be up and running by late March or very early April, complete with the usual signage and merchandise.

“The biggest reason is our guests have been asking for it,” says Rich Dean, the store manager. “We have had lots of comments, wanting us to get a Starbucks.”

Customers will be able to take their latte, mocha or espresso with them as they shop or enjoy their brew in the cafe.

Several Target stores in the  Twin Cities already have Starbuck coffee shops. Closer to home, Target  stores in Virginia and Grand Rapids also have them, says Dean.

Let’s see, upscale discounter, premium coffee chain. Yes, it’s a natural pairing, Dean acknowledges.

“I think there’s a very strong correlation between the brand of Target and the brand of Starbucks,” he says. “It invites our guests to a more-guest friendly environment.”

Allegiant seeks changing air fares

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You would think suspending flight service between cities like Duluth and leisure destinations like Orlando, for months on end would be enough for Allegiant Air to save on rising jet fuel costs.

Beginning May 2, Allegiant will temporarily suspend its twice-weekly Duluth-Orlando service. And that suspension could last until November. Allegiant is also suspending service to varying degrees to Fargo, N.D.; Appleton, Wis.; Sioux Falls, S.D.; McAllen, Texas; Toledo, Ohio; and Rockford, Ill. (The Duluth-Las Vegas flights are not affected).

Now comes word that Allegiant is seeking another hedge on rising fuel prices: permission to change fares between time of booking and takeoff.

Allegiant made the request to the U.S. Department of Transportation last month. The Wall Street Journal reports that the airline would continue to offer “locked-in” fares that wouldn’t change, but wants the caveat of fluctuating fares within a set limit for its lower fare deals, just in case fuel prices dramatically increase in the meantime.

Jet fuel costs have increased 20 to 30 percent in recent months.

Local salvager says exodus to Cities OK

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Locals preservationists were irked when a Minneapolis salvager of used building materials got the contract to strip the historic homes being razed for a new Walgreens and more hospital parking in Duluth.

Not only that, the salvager has taken it all back to the Twin Cities to sell. We’re talking architectural features of the late 1800s — woodwork, fireplaces, cast iron radiators, doors, leaded glass windows, hardware, columns, decorative carvings and more.

John McCarthy, owner of North Shore Architectural Antiques in Two Harbors, also bid on the job. But Bauer Bros. Inc.’s bid for $3,000 to $4,000 topped his.

Kevin Bauer, foreman for Bauer Bros., said the building contractor — of course — would go with the highest bidder. Which was him. It’s just business.

Meanwhile, McCarthy didn’t appear bitter about losing the contract when I talked to him Thursday. Nor was he upset to see the historic materials from the houses leave the area.

“No. 1 for me is that they’re being saved,” he said. “That’s why I got into this business. I do it because it’s something I love to do and something I value.”

The houses coming down are the big white mansion built in 1900  at 1123 E. Superior St. commonly called Silver’s for the dress shop it once housed. Behind it, on the lower side of First Street, four houses dating back to the late 1800s are being demolished. Two built in 1891 were designed by reknowned architects Oliver Traphagen and Francis Fitzpatrick.

McCarthy, by the way, happens to be a finalist in a contest to get a downtown Duluth storefront with one year’s free rent and other start-up help from the Greater Downtown Council.  (Now, wouldn’t the former Ace Hardware store at 212 W. Superior St. be perfect for architectural antiques?)

If he wins a Duluth storefront, McCarthy said the additional revenue from a second store would allow him to bid more on bigger contracts like the one he lost to Bauer Bros.

Gas prices jump 27 cents in a week

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Whoa, when did this happen?

Gas jumped 27 cents in the week ending Monday which is more than the 17 cents increase nationwide. Right now, gas is more expensive in Minnesota, averaging $3.44 per gallon, than the national average of $3.38 per gallon.

According to MinnesotaGasPrices.com, the average cost of a gallon of gas in Minnesota on Monday was up 29 cents more than a month ago and 74 cents more than a year ago.

So why is this happening?

People in the know say it’s because of the increasing demand for gas worldwide as other countries, like China, start their love affairs with cars. Other reasons: a tight supply of gasoline and the rising cost of oil by the barrel. And they say, prices will continue to rise.

Looking for a deal?

In Duluth today, the cheapest gas is $3.34 per gallon found at the Canal Park Market, at Harbor City Oil at 3020 W. Superior St. , the Spur near the 27th Avenue West freeway exit and, as always, the M&H at 1230 W. Michigan St.

The most expensive is $3.49 per gallon at the SuperAmerica at 5310 E. Superior St., according to the website. But be warned, prices could change any minute.

(2:30 p.m. update: Just drove past the  27th Avenue West Spur station and gas is now $3.49 per gallon, same as the Holiday station across the street. Down Michigan Street,  gas at the M&H is now $3.44 per gallon… So chances are others have raised their prices as well).

If you’re looking for the best deal in the state, head north. The cheapest gas is $3.23 per gallon at the Lucky 7 in Chisholm. Other good deals: Murphy USA in Hibbing for $3.25 per gallon and Murphy USA in Cloquet for $3.29.

(Again, there’s a good chance these prices also have gone up).

Seeing the writing on the (economic) wall

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It is a bit ironic that a local non-profit that helps businesses, even through economic downturns,  is itself a victim of the downed economy.

The Northeast Entrepreneur Fund, expecting its needed federal funding and grant money to be slashed in 2012, recently laid off seven full-time employees. That’s nearly half its staff.

The entrepreneur fund helps businesses get started and grow in the region and also lends money.

Another group boosting business in these parts is the Area Partnership for Economic Expansion which focuses on recruiting companies to the Northland. Its CEO, Rob West, credits the Northeast Entrepreneur Fund for being proactive rather than reactive to expected cuts coming.

Many non-profits rely on funding coming from federal governement and other government agencies and foundations and don’t feel the impact on recession until three, four years later, he said.

“They’re really feeling the crunch (now),” he said of the entrepreneur fund. “It’s very, very sad, but to their credit, they saw dark clouds on the horizon and reacted now. A lot don’t.”

The fund stepped up and took care of it, he said, adding, “It’s sad, but it’s what you have to do.”