State of the State Part II

Back on March 1, 2010, I solicited several assumptions regarding how local and global economic forces were influencing our bottom line. An AP report out of New York released just moments ago suggests that my key assertions were correct.

On March 1 I stated, “Market indicators remain in an unnerving pattern; one of the more intimidating trends I noted was a triumvirate blend of a strong dollar, positive gold movement, paired with creeping oil – I dare someone to place this scenario into sane context”.

The AP today: “The euro is falling again and continues to hover near a four-year low. It has become a key indicator for confidence in Europe's economy. The euro fell to $1.2318, a day after hitting $1.2146 . . . Crude oil fell $2.73 to $67.14 per barrel on the New York Mercantile Exchange.”

Gold remains at $1,191.80 an ounce despite loosing approximately 1% over two days.

I further stated on March 1 that “While January housing sales posted an increase, numbers also indicated a slight uptick in housing starts yet more bubbles await us. Significant commercial lending is coming due and as a result, many speculate more bank failures. Additionally, consumer spending remains tepid, no significant positive impact coming out of job creation, and European dept reflected in the so called “PIGS” - Portugal, Ireland, Greece and Spain, point to the potential for another significant economic slide.” My added emphasis is vital given such an accurate prognosis; as the AP notes today: “. . .the [Labor] department said new claims for unemployment benefits rose by 25,000 to 471,000, their largest amount in three months. . . Greek workers again took to the streets protesting recently approved budget cuts that were necessary for the country to receive a bailout. Greece was able to repay debt that came due Wednesday only because it had access to a rescue package from the European Union and International Monetary Fund. . . in afternoon trading, Britain's FTSE 100 fell 2.6, Germany's DAX index dropped 2.8 percent, and France's CAC-40 plummeted 3.9 percent.”

Certainly I take no pride in being correct on these assumptions as global – economically driven factors reach directly into the fissure of our cavernous lint- filled pockets. So where do we sit in the state of the state?

I encourage you to visit Mark Anthony over at “Demolition News” and read his posting, Comment – Is demolition perpetuating the recession…? Here is the link:

www.demolitionnews.com/2010/05/20/comment-is-demolition-perpetuating-the-recession
My apologies as I cannot get the link to set so you must copy/paste.

Tower Automotive-Century City Pictures

Brief Update

It was my intention to update this Blog on a regular basis yet circumstances borne of late have dictated that I focus my energy on a project which will have a significant impact on the greater Milwaukee market in the coming months - more information to follow as prudence allows in the timing of such a news release.

Otherwise, a brief news article from the “The Dispatch and The Rock Island Argus” from our work at the former Trinity Nursing School in Moline, Illinois. Following cleanup, Champion Environmental Services, Inc. will demolish the associated structures.

Debris removal begun at nurses dormitory in Moline

MOLINE-- Contractors from Champion Environmental have begun removing debris piles and two inches of top soil from the former nurses dormitory in One Moline Place.

The dirt and debris has to be removed because it contains asbestos. Moline city administrator Lew Steinbrecher said the next step, before demolition of the building, will be testing the upper floors for residual asbestos.

"Depending on the results, a decision will be made about demolition," he said. "We are approaching the time when hopefully a date will be set relatively soon for demolition of the building."

One Moline Place is a residential development between 4th and 8th streets and 5th and 11th avenues first announced in 2002. While Phase I was partially developed, Phase II-- where the dormitory sits -- and Phase III never were started.

The property is owned by Mike Shamsie, but through an agreement with Northwest Bank and Trust and the city, he will give Moline the Phase II and III land after demolition is complete. A new developer plans to take over Phase I and complete the development.

Mr. Steinbrecher said an environmental consultant is coordinating the clean-up with Champion Environmental, Mr. Shamsie and the Illinois EPA.

By Dawn Neuses, dneuses@qconline.com