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http://www.thecharlottepost.com 6C CiEiarlotte $09it THURSDAY JUNE 22, 2006 BUSINESS Getting on the bean with shops By Olu Alemoru WAVF NEWSPAPERS LOS ANGELES - At Fifth Street Dick’s cafe in Leimert Park, the walls are adorned with fi'amed pho tographs of Miles Davis, John Coltrane and Dexter Gordon. The intimate coffee shop has long been part of the fabric of the area, but lately it has found itself wag ing an uphill battle in a Starbucks world. OriginaUy owned by activist and jazz advocate Richard Fulton, who died in 2000, the establishm^t is now I'm! by his pairiier, Erma Kent. After relocating to 4305 Degnan Blvd. in October 2005, across the street from the Lucy Florence Coffee Shop, Kent is now prepaiTi^ to sell the business. “We’ve tried to keep Richard’s spirit very much alive,” said Kent, 59, a hair stylist by trade, who runs the business with her daugh- , ter Shannon. ‘We have live jazz performances three days a week with young up- and-comers like Kamasi Washington and the Next Step. People can surf the Web, watch TV or just sit and talk. ‘We have a few loyal cus tomers, but not enoi^h local people are patronizing the place.” Fifth Street Dick’s plight is emblematic of the challenges faced by some independent proprietors, who are attempt ing to capitalize on the grow ing African-American involvement in coffee cul ture. And while local bxisi- nesseo are tryir^ to establish or maintain a foothold in the lucrative industry higher- profile business names are making inroads inte urban areas as well. From brand-name Exuopean-stjie cafes, kiosks and carts to the distribution of beans and accessories — coffee is a multiblllion-dollar business that continues to expand at a remarkable pace. According to the Specialty Coffee Association of America and the indepen dent research group Mintel, the total U.S. coffee market reached $11.05 biUion in 2005, up fiom $9.62 bOlion in 2004. ' Fifth Street Dick’s new owners, whom Kent will not identify until the sale is finalized, aie promising to give the place a “new young funk.” Lucy Florence, owned by twin brothers Richard and Ron Harris, has man aged to survive by creatir^ its own niche. Locals still enjoy the old-style coffee experience there, but it now doubles as a tiultural center with music, art, movie and political meetings and forums. “It was crucial that we diversified as a business,” Richard Harris said. “A cof fee shop is who we are and we’re proud of that, but our diverse clientele are also now attracted by different things.” Meanwhile, the Magic J ohnson Development Corporation has helped cre ate a Black consiuner brand through a partnership with Starbucks Corporation, which operates approxi mately 8,000 stores in North America and 11,000 stores worldwide. Established in 1998, the joint venture. Urban Coffee Opportunities LLC, has 93 locations throughout the country including Los Alleles, New York, Seattle, Chicago, Detroit, Atlanta, San Francisco and Washington. BOBCATS TURN REINS OVER TO JORDAN FILE PHOTO/CALVIN FERGUSON Charlotte Bobcats owner Bob Johnson, (right) with Mayor Pat McCrory, was the toast of the town when the NBA returned in 2004. Now he’s turning control of basketball and business to Michael Jordan. Breath of fresh Air The following is edited comments from last week’s press conference with Bob Johnson announcing Michael Jordan’s decision to buy into Johnson’s business interests, which include the NBA Charlotte Bobcats. Q: Did this take two years to evolve or was it on the backbumer and brought back up? A: Michael and I have always been fiiends, and one of the things Michael has always wanted to do - and Tve always wanted - was to own his own team. Michael has made several attempts to own his own team, and the NBA has been very active in trying to help ^chael acquire a team. When that didn’t happen and time passed on, I think Michael saw this as a way to be connected with basketball, do other business pur suits and do something with a fiiend of his in Carolina where he was bom and played ball, and do it with a team that has a fi:esh, new start. I think all of those thir^ sort of came togetiier in Michael’s mind. Q: What wfil Jordan’s day-to-day role be? A: Michael is not a day-to-day employee — he’s not an employee at aU. He is an owner who I have given the authority to oversee all of basketball player personnel decisions. ...Bemie (Bickerstaff). will be returning as head coach and general manager and work ing closely with Michael to make decisions about player personnel and everytiiing associated with the players.. Q; Does you still own at least 51 percent of the team? A: I am the majority owner of the Charlotte Bobcats, and I will always be the majority owner of the Charlotte Bobcats. Q: Is Jordan paying for his share of the team? A: We have never given out numbers as to how much individ- Toals have invested in the team. Michael is the second-largest indi vidual shareholder in the team next to myself - individual share holder, not counting an entity or business. The only way to acquire equity in that is with cash. Q: What other company inter ests is Michael seeking outside of the Bobcats? A: When I left BET, I formed RU Companies, and that company invests in hotd real estate, we have a private equity ven- Jordan ture, a hedge fund venture and a num ber of operations in the Caribbean involved in video gaming. We are looking at other business invest ments - an investment in Charlotte, North Carolina, in something called RoUover Systems. We have a number of businesses tiiat Michael has the opportunity to look at, as well as to bring TTs deals that he has iden tified that we might want to part ner with him in. It’s a combination of us doing business together in all of our biasiness ventures - sports as well as other related financial services — as well as two fiiends who have been fiiends for a long time saying, “Let’s do something fim together, and let’s pool our resources and our talent and hopefully make some money and have some fun.” Q: Is there any chance of Jordan playing for tiie Bobcats? A: There is no chance of Michael playing for the Bobcats. Q: How visible will Jordan be in his role? A: I want to reiterate — Mchael is not an employee of the Bobcats at all. He is an owner like the other owners in the organization. In terms of his commitment to the team, his desire to help make the oiganization better and help make the organization a success in Charlotte both on and off the court, it wiU be up to ^fichael to determine — as it is to the other owners — how much he will be engaged on a day-to-day basis. Q: How win the Bobcats best leverage Jordan in terms of mar keting or PR opportunities? A: You don’t do that. Michael is an owner fike any other owner. He has a commitment to the compa nies he invests in as anybody does that invests. He understands that this is both a sport and a business, and he wUl be actively engaged with his business ability his con nections and his personal skills like any other owner would. You do not leverage Michael Jordan. You don’t need to. Q; How is the decision-making finm a player personnel stand point to be divided between the General Manager and owner/supervisor of player per sonnel? A: It’s real simple Michael is an owner. Bernie is the general man ager and head coach. General manners and coaches report to owners. Michael has the decision making authority Q: Wni Jordan be in the draft war room? A: When I put Michael and Bernie together, they got into it right away Over the next several days, Bernie will be doing a down load on Mchael of all the intelli gence that he’s gathered about what the team needs, what the pick situation looks like, what has been the result of the workouts they’ve had, any possible trade deals lurking out there — they’re into it now. Michael has a tremen dous amoimt' of confidence in Bonie’s insist, and Bernie has a lot of confidence in the advice Michael is going to bring to him. Midyear time for business checkup By Joyce M. Rosenberg THE ASSOC/AtED PRESS NEW YORK - The summer often brings a welcome slowdown for many small company owners as customers take vacations and the pace of business relaxes. So, it’s a great time to take a dose look at your company’s finances and assess where you’re headed during the sec ond half of the year. Many small business advisers rec ommend that owners sit down with their accoimtants during' Jime or July to determine what changes they need to make to their finandal projections and overall business plans. Taxes, cash flow, capital spendii^ and employee benefits are amor^ the many topics that should be discussed; One of the first items you need to consider is your estimated tax pay ments, and whetho’ your remaining payments for 2006 need to be adjusted upward or downward. ‘You don’t want to pay in more than you have to,” because the money you overpay can be put to better use within your company said Gordon Spoor, a certified public accountant in St. Petersbuig, Fla. On the other hand, if you’re tmder- paying, you’re running the risk of havir^ to pay a penalty to the IRS next year. You can find out more information about estimated tax payments in IRS Publication 505, Tax Withholding and Estimated Tax. You can download a copy fiom the agency’s Web site, www.irs.gov You should also check with your state tax authorities to determine how much estimated tax you should be paying them. If you don’t know what your taxes are likely to be for the rest of 2006 but you’re fortunate enov^h to have a strong cash flow, consider stashing some of the money away in case you do need it for taxes later in the year or early in 2007. ‘You can have it set aside and invested in a safe investment like a money market accoimt,” Spoor said, noting that with intm:est rates hi^- er now, your company wffl earn more money Now is also the time to be looking at your capital spending plans for the rest of the year - cautiously accountants say “In this dicey market, I’d be telling them not to make any risky moves like in real estate,” Spoor said. Jeffrey Berdahl said equipment purchases should also be thought through carefully While what’s known as tiie Section 179 deduction gives small businesses a great tax break when they buy equipment like computers, office furniture and machinery used in manufacturii^, the cost of financing such a pur chase may offset the benefits of the deduction. Couples choose charity wiihuows By Brad Foss THE ASSOCIATED PRESS Jen Crane and Tbm Frohlich of Seattle are banking on the generosity of fiiends and family to collect as much money as possible when they get married _ but not for selfish reasons. In fact, the couple is quite embarrassed at the thought of receiving a bounty of tra ditional wedding gifts, be they large checks or fancy dishes. That is why they are instead encouraging guests to make donations in their honor to three charities: the Sierra Club, Girls on the Rim and Youth in Focus. Crane and Frohlich, who wiU exchange vows next month before 80 guests on Orcas Island off the north coast of Washington, are part of a tiny-but-growir^ group of couples turning their weddings into philanthropic opportunities. It is a trend that is picking up momentum, industry officials said, with help fiom a handful of Web-based nonprofits that serve as virtual intermediaries between couples, charities and guests. While these decisions are largely a reflec tion of couples’ altruism and other person al values - Crane, for example, volimteers with the Sierra Cltib _ many who are set ting up charitable wedding registries acknowledge more practical motivations. For instance, as the average age of U.S. newlyweds rises and more couples live together before tying the knot, there is not as much need for cookware and other tra ditional gifts as in previous generations. “We’re in our 30s, so it’s not like we need a lot of stuff,” said Crane, whose charitable wedding registry is managed by the I Do Foimdation, a Washington, D.C.-based nonprofit that sends e-mails to guests informing them of the couple’s unorthodox request. Oil chiefs defend high U.S. prices By John Heilprin THE ASSOCIATED PRESS WASHINGTON - Americans paying $3 per gallon at the pump have it relatively cheap when compared with prices globally say oil and gas company executives who defend their record profits as essential to maintaining supplies. In parts of Europe and elsewhere in the West, gasoline prices are more like $5 per gallon to $7 per gallon, said the chairman of ConocoPhiUips Co., James J. Mulva. “This is a global business, and it’s not only that we need to add to supply but we need to reduce demand,” Mulva said. “In the United States alone, we have about 2 percent of world oil reserves, 5 percent of the population and yet we use about 25 percent of the world’s consumption of oil.” Mulva and two other executives who appeared on NBGs “Meet the Press” said they are optimistic about keeping a lid on domestic prices, unless their fears come true about the potential for damage to U.S. energy production fium the hurricane season that began Jime 1. “I do understand why consumers are concerned- The thing that concerns aU of us, I think, is that we’re heading into hur ricane season again,” said the chairman of Chevron Corp., David J. O’Reilly Scientists say this year’s season could produce 16 named storms, six of them major hurricanes. Last year’s was the most destructive on record and the busiest in 154 years of storm tracking, with a record 28 named storms and 15 hurri canes. Thousands of oil company employees hv- ir^ in temporary housu^ along the Gulf Coast are “much more subject to having to evacuate if hurricanes were to return,” O’Reilly said. “But absent the hurricanes. I’m optimistic” that prices will not spike this summer. Though many U.S. consumers blame hi^ pump prices on oil companies greedy for profits, the oil company chiefs blame ^obal competition for supplies. 0«i0E
The Charlotte Post (Charlotte, N.C.)
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