11/11/2011 (9:36 am)

Metropolitan Urological Specialists can’t pay taxes

Filed under: technology, term |

One of the St. Louis area’s leading medical practices for urologists owes more than $338,000 in delinquent property taxes, interest and penalties, St. Louis County records show.

Five years ago, Metropolitan Urological Specialists announced its plan to invest about $15 million in three outpatient centers, including a sexual medicine clinic, and to take on additional urologists as private physician shareholders. The firm, based in Chesterfield, also planned to invest heavily in laboratory and imaging equipment.

Dunard Morris, the medical firm’s former chief executive, said at the time that Metropolitan’s expansion would help meet the growing needs of the baby boomer generation. A large proportion of the firm’s business involves Medicare patients. Morris recently left the firm for unknown reasons.

But the firm, which still lists 14 physicians on its website, now struggles to pay its taxes. The county has sought to collect the back taxes by filing liens on the firm’s property.

The medical firm’s affiliate, Metropolitan Urological Properties LLC, owes state and local tax authorities $338,223 in delinquent taxes, interest and penalties from 2009 and 2010 on its medical office buildings at 10296 Big Bend Boulevard in Crestwood and at 215 Dunn Road in Florissant, according to the St. Louis County Department of Revenue.

Metropolitan Urological Properties also owes state and local property taxes for 2011 totaling $172,652 on those two parcels and improvements to those sites. That amount is due by Dec. 31, and becomes delinquent if not paid or postmarked before Jan. 1, 2012.

If the firm’s 2009 tax bill remains unpaid on its medical office complex in Crestwood, whose market value has been appraised at $4.9 million, county authorities are prepared to auction the property next August.

It is unclear when exactly Metropolitan started falling behind on its taxes or what specifically may have caused any related financial troubles. As shareholders, Metropolitan’s physicians could be on the hook if the firm defaults on any of its financial obligations.

Metropolitan’s property affiliate was able to pay a $29,481 tax bill on its Dunn Road parcel for 2009, but not a larger tax bill on its Big Bend parcel for that year. It did not pay its 2010 tax bills on either parcel.

Bob Lawson, the medical firm’s newly hired interim chief executive, did not return calls requesting comment. Several doctors affiliated with Metropolitan Urological Specialists also did not return phone calls.

Morris, who left the medical practice this fall, returned phone calls placed to one of his residences by leaving a voicemail message that said he was “out of state,” without saying exactly where.

“I have a lot to tell regarding health care and other things. I won’t talk with you if you run your story,” Morris said in the voicemail message. “I got sick of what I see in health care, and specifically in our group. And it’s a much wider story than me or anyone else.”

Source

11/03/2011 (8:52 am)

ECB cuts key rate at 1st Draghi meeting

Filed under: UK, online |

The European Central Bank has cut interest rates by a quarter percentage point under new head Mario Draghi to boost weakening growth in a eurozone struggling with a crisis over too much government debt.

The move, which comes earlier than expected by many economists, takes the bank’s benchmark rate to 1.25 percent.

European growth is expected to slow to near or below zero in the last three months of the year.

Uncertainty from Europe’s debt crisis is a factor. Business and consumers are reluctant to spend and investors because they fear more financial turmoil if Greece defaults on its debts.

Now markets are waiting for Draghi’s first news conference to see if he indicates the bank is willing to intervene more forcefully in bond markets to keep Greece’s troubles from spreading to Spain and Italy.

THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP’s earlier story is below.

FRANKFURT, Germany (AP) _ Mario Draghi holds his first press conference as new head of the European Central Bank under pressure to signal it will continue buying government bonds to keep Europe’s debt crisis from worsening.

A surprise interest rate cut has also not been ruled out as Draghi takes over. He faces an array of problems: weakening growth, excessive inflation and uncertainty over whether a bailout for heavily indebted Greece will go through or be derailed by a proposed referendum.

Markets are waiting to see if Draghi will be more aggressive in supporting troubled governments than predecessor Jean-Claude Trichet, whose eight-year term expired.

The bank’s program to buy government bonds drives down the borrowing costs that Italy and Spain face in bond markets. High interest rates on borrowing drove Greece, Ireland and Portugal to take bailout loans from other eurozone governments.

Under Trichet’s leadership, both he and Draghi, a former World Bank director and top Italian official, stressed that the program was temporary and that the new eurozone bailout fund needs to be ready to step up and take the purchases over. The fund won’t finish arrangements to leverage its limited financial resources until next month at the earliest, however.

That has left the ECB as the last line of defense in the bond market _ a position it has been uncomfortable holding. Trichet limited his comments on the program, and markets want to see if Draghi will open the door to more aggressive purchase.

“Draghi’s attitude to the ECB’s program of buying distressed government debt will be of prime importance,” said Jane Foley at Rabobank. “Today’s press conference will be no doubt used as an opportunity to test his resolve on this issue.”

Those expecting a more aggressive stance on bond purchases and a signal for a rate cut may be disappointed as Draghi may choose to stress continuity at the bank, wrote Unicredit economist Marco Valli. “We think Draghi will be very much in agreement with Trichet” and will signal that the bond purchases are a temporary measure, he wrote.

The bank’s key rate stands at 1.5 percent after increases in April and July aimed at warding off inflation. Since then the economic outlook has worsened significantly for the 17 countries that use the euro, leading many analysts to think the bank will cut rates in December or early next year. A rate cut Thursday has not been ruled out.

Inflation at 3.0 percent _ well above the bank’s goal of just under 2 percent _ gives a reason to hold off. Rate cuts spur growth but can worsen inflation.

Draghi will also face questions about Greek Prime Minister George Papandreou’s proposal to hold a referendum on Greece’s bailout, part of a broader plan to halt the crisis agreed upon at a summit last week but already in danger of unraveling.

Greece is to get euro100 million ($138 million) in more bailout financing to avoid a disorderly default on its bonds that could damage Europe’s banks and choke credit to the wider economy. But it comes with painful conditions and Papandreou says he wants the people to decide despite being told that no more bailout money will be forthcoming from other eurozone governments until the result is clear.

Papandreou faces a confidence vote Friday and it’s not clear the referendum will take place.

Critics of bond purchases argue that they take pressure off politicians to get their budget deficits down.

The issue is pressing, with Italian bond yields at an elevated 6.3 percent. Earlier, the ECB purchase program had driven them under 5 percent. But fears of more turmoil in Greece, and a perception that Italy is not acting quickly to cut spending and improve growth have put more pressure on its bonds.

But some economists have argued that only the ECB can act quickly and forcefully enough to backstop troubled governments and contain the crisis. Europe’s bailout fund is considered too small, at euro440 billion, despite proposals agreed last week by eurozone leaders to increase its financial firepower to euro1 trillion by letting it insure part of the value of government bond issues.

Key details of how the bailout fund would do that have not been filled in, and the initial burst of market relief over the idea has faded. Eurozone officials also worked out plans to cut Greece’s debt burden by 50 percent and to push banks to increase the size of their financial cushions against any losses or further market plunges that might result from that.

The ECB has potentially unlimited firepower, backed by its ability to create new money _ an ability the U.S. Federal Reserve and Bank of England have used. The ECB has been unwilling to do that. When it buys government bonds to stabilize their market price, it withdraws an equivalent amount of money from circulation to avoid creating inflation.

Source

10/30/2011 (7:40 pm)

At least 4 jets strand Conn. passengers for hours

Filed under: Business, Mortgage |

It was a passengers’ nightmare at Bradley International Airport in Hartford, Conn., this weekend.

Passengers on three JetBlue planes and one American Airline plane say they were stranded on the tarmac for seven hours or more after being diverted from New York-area airports.

The ordeal continued after they were let off and had to spend the night on cots and chairs in the terminal.

A passenger on one of the diverted JetBlue planes says the crew ran out of snacks and bottled water for the last few hours of the delay.

“The toilets were backed up. When you flushed, nothing would happen,” said Andrew Carter, a reporter for the Sun Sentinel of Florida, who was traveling to cover the Miami Dolphins game against the New York Giants. His plane took off from Fort Lauderdale for Newark Liberty International Airport at around 9 a.m. After being diverted to Hartford, the plane sat on the tarmac between around 1:30 p.m. and 9 p.m., he said.

A representative for Bradley International was not available to comment on the scope of the tarmac delays at the airport.

A JetBlue spokeswoman, Victoria Lucia, confirmed in an emailed statement that six of its planes, carrying a total of about 700 passengers, were diverted to Hartford as a result of a “confluence of events” including equipment failures at Newark and New York’s John F. Kennedy International Airport that prevented planes from landing in low visibility.

She declined to specify how long the planes sat on the tarmac at Bradley, but noted that 17 other flights with different carriers were also diverted to airport.

Once the planes landed at Bradley, Lucia said that intermittent power outages at the airport made refueling and deplaning difficult.

Kate Hanni, executive editor for FlyersRights.org, said she got calls and emails from passengers and worried family members regarding at least four flights that were stranded on the tarmac for up to 10 hours.

Brent Stanley and his wife were on one of those planes, an American Airlines flight that had originally been headed to JFK after taking off from Charles de Gaulle airport in Paris.

After being diverted and landing in Hartford at 2:30 p.m., Stanley said passengers were given various reasons for being held on the tarmac, including the need to refuel and de-ice and the airport’s limited capacity for handling international flights. He and his wife were eager to get back home to their two young sons in Lake Zurich, Ill. But they realized they didn’t have it as bad as the parents who had infants on the plane.

“There was a lady in front of us with an 18-month-old daughter,” Stanley said. “Another woman came by to borrow diapers because we couldn’t get to our luggage.”

After spending the night at the airport, Stanley was lucky to find two seats Sunday on an afternoon flight home to Chicago. But the headache isn’t over yet; his luggage was headed to JFK because the Hartford airport crew wasn’t able to handle international luggage, he said.

An American Airlines spokesman, Ed Martelle, said the passengers weren’t allowed off the plane by customs at the airport. Martelle did not know the exact number of American planes that were diverted to Bradley or how long they sat on the tarmac personal business card.

Matt Shellenberger, who was on a JetBlue flight from Boston to JFK, said his plane was diverted to Bradley International and sat on the tarmac for seven hours.

The crew picked up trash regularly and handed out water and snacks and “everyone held their cool,” he said. But his frustrations grew with each status update; the reasons for the delay kept changing as the hours passed.

Early on, passengers were told that the plane was just being refueled and would fly out soon, Shellenberger said. Then they were told it was being de-iced. Then there was an emergency on another plane.

“We were told we were the third plane in line to get to the gate when we landed,” he said. “Then we stayed on the plane for seven hours.”

Carter of the Sun Sentinel, who was on another JetBlue flight, reported a similar sequence of updates.

The saga continued long after passengers were let off the plane.

The power outages from storms throughout Connecticut made booking hotel rooms difficult. As a result, many passengers just slept at the airport, Carter and Shellenberger said in separate interviews.

When they awoke, hundreds of passengers had to wait in line for hours just to figure out which flight they’d be on.

“That was most disappointing part,” Carter said. “It seemed like there was no plan when we got off the plane.”

In the morning, Carter said he and several other passengers rented a van to drive to New Jersey rather than wait for the afternoon flight JetBlue had scheduled to Newark.

It’s not the first time JetBlue has had problems with tarmac delays. The New York-based airline also made headlines in 2007 when snow and ice storms stranded its planes for nearly 11 hours at New York’s John F. Kennedy International Airport.

Such high-profile delays helped prompt a regulation last year that fines airlines for holding domestic flights on the tarmac for more than three hours. This year, the rule was extended to apply to international flights that are held on the tarmac for more than four hours.

The Department of Transportation often doesn’t enforce the fines to their full extent unless delays are extreme, however. Passengers also do not get a cut of the fines.

Low-cost carriers are more prone to tarmac delays because letting passengers off planes can cost an airline a lot of money, said Hanni of FlyersRights.org.

If a plane is diverted because of a reason within the airline’s control, such as a mechanical failure, ticket contracts usually state that passengers will be reimbursed for hotels, food and transportation. That means airlines do everything in their power to keep passengers on board in hope that the plane will be able to take off again.

JetBlue said that passengers who were diverted to Bradley International would be reimbursed for their fares and hotel expenses.

A representative for the Port Authority of New York & New Jersey, which oversees Newark and JFK airports, could not immediately say how many total flights were diverted to other airports because of equipment failures.

Source

10/29/2011 (10:04 am)

KPMG promotes Joel Perkins

Filed under: Loans, legal |

KPMG LLP promoted Joel Perkins to managing director in the federal tax practice in its St. Louis office. He transferred from a management job in the firm’s Kansas City office.

Perkins specializes in providing clients with tax provisions, federal and state compliance and tax-related consulting matters. He joined KPMG in 1995 and has more than 16 years of management advisory and business experience, serving clients in industries including telecommunications, energy and manufacturing need a personal loan with bad credit.

He is a licensed certified public accountant and is a member of the American Institute of CPAs, the Missouri and Kansas Society of CPAs and the Louisiana Society of CPAs. He has a bachelor of business administration in accounting degree from the University of Louisiana in Monroe.

Source

10/24/2011 (3:20 pm)

Takeovers, anticipated European deal lift stocks

Filed under: Europe, Rates |

Stocks gained steadily Monday on a round of corporate takeovers and reports that Europe’s bailout fund will be larger than anticipated. The Dow Jones industrial average was up nearly 130 points in the late afternoon. The Nasdaq composite index turned positive for the year.

Mattel and J.M. Smucker were among companies that rose after announcing acquisitions.

Investors are still waiting for a resolution to Europe’s debt problems. European leaders said they made progress at a weekend summit and plan to unveil concrete plans for containing the crisis by Wednesday. The Dow was up about 40 points in the first hour of trading but moved steadily higher through midday following reports that Europe’s takeover fund will be greatly expanded.

“The market is expecting that there will be some kind of deal worked out Wednesday,” when European financial ministers are scheduled to meet, said Uri Landesman, president of Platinum Partners. “If there’s not a deal by then, the market is going down significantly.”

Even with concerns about Europe, U.S. companies are still reporting bigger profits. “Although there is a good deal of economic and political uncertainty in the world, we are not seeing it much in our business at this point,” Caterpillar Chief Executive Doug Oberhelman said.

The maker of construction equipment reported a 44 percent surge in income, more than Wall Street analysts were expecting, thanks to strong growth in exports. The company said it expected the global economy to continue recovering, albeit slowly.

The Dow Jones industrial average rose 126, or 1 percent, to 11,934 at 3:10 Eastern. Caterpillar jumped 5 percent, the most of the 30 companies in the Dow.

The Standard & Poor’s 500 index gained 17 points, or 1.4 percent, to 1,256. The Nasdaq composite rose 64, or 2.4 percent, to 2,701. The gains turned the Nasdaq positive for the year. The S&P 500 is the only major market index that remains lower than where it started the year.

The Russell 2000 index of small companies rose 3 percent as investors moved money into higher-risk assets.

Strong earnings reports from McDonald’s Corp. and other big U.S. companies last week drove the Dow Jones industrial average to its third straight weekly gain. The S&P 500 finished the week at its highest level since Aug. 3, just before Standard & Poor’s downgraded the U.S. government’s credit rating.

Other major U.S. companies due to report earnings this week include UPS Inc., Ford Motor Co. and Procter & Gamble.

Analysts expect companies in the S&P 500 to report earnings growth of 14 percent for the third quarter, according to data provider FactSet. They expect a 10 percent gain in revenue.

Expenses are also expected to climb. Higher costs for raw materials helped drag down income 8 percent at Kimberly-Clark Corp., which reported results Monday. The stock fell 5 percent. The company is a major consumer products maker whose brands include Huggies and Kleenex.

Higher costs also hurt cigarette maker Lorillard, which reported a 3 percent drop in income. Lorillard’s stock fell 0.8 percent.

A series of corporate deals helped lift the market, said Phil Orlando, chief equity strategist at Federated Investors. “This is telling us that companies think stocks are cheap, and they’re willing to spend some of the cash that’s sitting around on their balance sheets,” he said.

Deals announced included:

_ HealthSpring Inc. jumped 33 percent after Cigna Corp. said it will buy the health insurer for about $3.8 billion in cash. Cigna fell 0.4 percent.

_ RightNow Technologies Inc. gained 19 percent after Oracle Corp. said it will buy the tech service company for about $1.5 billion. Oracle rose 0.8 percent.

_ Mattel Inc. rose 2 percent after it agreed to buy Hit Entertainment, the owner of the Thomas & Friends and Barney brands, for $680 million in cash.

_ The J.M. Smucker Co. added 1 percent after it bought most of Sara Lee Corp.’s North American foodservice coffee operations for about $350 million.

Asian and European markets rose earlier Monday after Japan said its exports grew for a second straight month in September and a report showed China’s industrial production returned to growth in October. Japan’s Nikkei 225 index rose 1.9 percent, Hong Kong’s Hang Seng index rose 4.1 percent and South Korea’s Kospi index rose 3.3 percent.

Source

10/14/2011 (9:28 pm)

Stocks rise on gain in retail sales; Google jumps

Filed under: Lenders, News |

Stocks rose in early trading Thursday on strong retail sales news and encouraging reports about corporate profits. The Dow Jones industrial average was headed for its best week over the last five.

Retail sales increased 1.1 percent in September, the biggest gain in seven months and twice what economists projected. Retail sales are a key barometer of consumer spending, the biggest contributor to economic activity.

Google Inc. surged more than 6 percent after reporting that its online advertising and search dominance helped third-quarter profits rise 26 percent.

The Dow Jones industrial average rose 101 points, or 0.9 percent, to 11,579 at 10:02 a.m. Eastern time. The Standard & Poor’s 500 index rose 13, or 1.1 percent, to 1,218. The Nasdaq composite index rose 32, or 1.2 percent, to 2,653.

The Dow is up 4.2 percent for the week, putting it on track for its best week since the week ending Sept. 16.

Apple Inc.’s new iPhone goes on sale today. Record-setting early orders for the iPhone 4S showed why the company has thrived despite the weak economy. Apple shares rose more than 2 percent before the market opened.

European markets extended an eight-day rally despite an overnight downgrade of Spain by Standard & Poor’s and warnings from Fitch about big banks. Food and soap company Unilever PLC announced a major acquisition, and Swiss agrochemicals firm Syngenta reported strong third-quarter sales.

Retail sales are the government’s first look at consumer spending each month. Consumers account for 70 percent of economic activity. If they cut back, a recession is more likely. When they spend more, economic growth is more likely.

Google reported late Thursday that its third-quarter revenue was one-third higher than last year. It was Google’s fourth consecutive quarter of year-over-year revenue growth. Google is doing well because of the reach of its search engine and the effectiveness of its ads.

The government also said Thursday that businesses added to their stockpiles for the 20th consecutive month while sales rose for a third straight month. The increase suggests businesses remained confident enough to keep stocking their shelves.

Source

10/06/2011 (6:31 pm)

At Apple stores worldwide, mourning for Steve Jobs

Filed under: News, Uncategorized |

CUPERTINO, CALIF./NEW YORK—Computer buffs and admirers of technology rushed to Apple shops from New York to Australia on Thursday to mourn Steve Jobs, praising him as a visionary who transformed the daily activities of countless millions.

Flags outside Apple’s headquarters at 1 Infinite Loop in Cupertino, California, flew at half mast as mourners gathered on a nearby lawn. Distraught Apple fans left flowers and a man played the bagpipes.

“In my mind there is no difference between him and a Pasteur,” said Chitra Abdolzadeh, a healthcare worker in Cupertino, in reference to French chemist Louis Pasteur. Photos: Fans say farewell outside Apple stores Olive: Apple’s best days are in the past

Ben Chess, 29, an engineer at an Internet company and a former Apple intern, drove to the Apple HQ from San Francisco after work to lay a bunch of flowers. “It’s the right thing to do,” he said.

Jobs, who died on Wednesday aged 56, overturned the way users browse the Internet by giving them the iPod, iPhone and iPad. He had stepped down as chief executive of the world’s largest technology company in August.

Computer fans in China seemed particularly moved.

“I came here to see how they’ll operate on the first day after they had lost Steve Jobs,” Jin Yi, 27, said in China’s biggest Apple store in Shanghai, which opened last month.

“I also came here to mourn in my own way. It is such a pity today. He created these gadgets that changed people’s perceptions of machines. But he did not manage to witness the last step in which, through his gadgets, people’s lives can be effectively fused with these machines.”

In Hong Kong, Charanchee Chiu laid a single sunflower and white rose in front of the city centre Apple store.

“I am sad. I think he should have lived longer,” he said, acknowledging that he had sent messages to Jobs to advise him on health and Tai Chi, the Chinese form of martial arts reputed to improve practitioners’ well-being.

At the downtown San Francisco Apple store, people held pictures of Jobs aloft on iPads and taped greeting cards and post-it notes to the store window saying “thank you Steve” and “I hate cancer.” Candles and red apples were placed outside.

Store employee Cory Moll described Jobs as a personal inspiration. “We’re lucky to have had him for as long as we did,” said Moll, holding an iPad displaying a quote in memorial to Jobs.

“What he’s done for us as a culture, it resonates uniquely in every person. Even if they never use an Apple product, the impact they have had is so far-reaching.”

Across the country in New York City, an impromptu memorial made from fliers featuring pictures of Jobs was erected outside a 24-hour Apple store on Manhattan’s Fifth Avenue, with mourners snapping photos of it on their iPhones.

“We will miss you Steve, RIP. Thank you for your vision,” read one flier.

Business professor Gary Hamel said he left for the store as soon as he found out about Jobs’ death.

“As soon as I heard the news, I came out to this Apple store to pay my respects,” he said, clutching the power cord he had just bought inside. “I saw tears in some people’s eyes.”

Outside an Apple store in New York’s SoHo neighborhood, two men laid candles, bouquets of flowers, an apple and, for a while, placed an iPod Touch on the ground.

At a Boston store, student Angelos Nicolaou said Jobs had “inspired us to be rebels and challenge the status quo. I hope there will be more leaders like him. It seems like the world is running out of them.”

In Sydney, Australia, lawyer George Raptis, who was five years old when he first used a Macintosh computer, made his way to the glass-panelled Apple store when he heard the news.

“He’s changed the face of computing,” he said. “There will only ever be one Steve Jobs.”

Some of those who flocked to Apple stores when they heard of Jobs’ passing were thinking of Apple’s future without its co-founder. The company named Tim Cook as its new CEO at the end of August when Jobs stepped down.

“They had a lot of time to prepare for the transition,” said Guilherme Ferraz, 44, a Brazilian businessman outside a Manhattan Apple store. “Tim Cook will continue his legacy.”

Source

09/23/2011 (12:36 pm)

Fallout from Missoni debacle plagues Target

Filed under: Uncategorized, legal |

Target is a victim of its own success.

The discounter drummed up so much hype around its exclusive, limited-time line by upscale Italian designer Missoni that its website crashed and was down most of the day on Sept. 13 when the collection was launched, angering customers. More than a week later, some shoppers who bought the Missoni for Target line are posting on social media websites Facebook and Twitter that they won’t shop at Target again because their online orders are being delayed

09/22/2011 (4:16 pm)

ECB’s Stark: Crisis puts euro under threat

Filed under: marketing, online |

The departing chief economist of the European Central Bank is saying that heavy levels of government debt are threatening the existence of the euro currency.

Juergen Stark’s statements in a paper with three other economists on the ECB’s website are unusual because they come from a high-ranking central banker.

The paper also dismisses new measures to strengthen EU controls over national government spending as insufficient.

It says Europe needs far tougher measures, such as appointing administrators to oversee finances in countries that need bailouts, as Greece, Ireland and Portugal have.

Stark is resigning almost three years before the end of his term amid talk that he is unhappy with the bank’s crisis measure of propping up weak governments by buying their bonds.

Source

09/21/2011 (2:24 am)

GM contract is shot in arm for Wentzville plant, area

Filed under: Lenders, UK |

In a boost to the region’s moribund auto industry, General Motors will inject $380 million into its Wentzville assembly plant, adding 1,850 jobs and a new pickup line as part of a proposed new labor contract, the United Auto Workers announced Tuesday.

The announcement is part of GM’s commitment to invest a total of $2.5 billion in facilities nationwide and create or retain 6,400 jobs over the life of the four-year contract, according to the UAW.

The union and GM reached an agreement Friday, but did not reveal details of expansion plans until Tuesday. The 48,500 union members working for GM nationwide must still ratify the contract next week.

UAW Local 2250 Chairman Mike Bullock said the contract called initially for the Wentzville plant to add a second production shift of between 400 and 700 people in the first quarter of 2012. Local 2250 represents hourly workers at the Wentzville plant, which produces Chevrolet Express and GMC Savana full-size vans. About 1,300 people in one production shift currently work at the Wentzville facility.

“This will be a real shot in the arm for Wentzville and the St. Louis area,” Bullock said in a phone interview. “This really is a tribute to the men and women who work at the Wentzville assembly center and produce the best quality product at the best cost.”

The local automotive industry has been devastated in recent years. Closures included the Ford plant in Hazelwood five years ago and Chrysler’s two Fenton plants in 2008 and 2009. Multiple local automobile suppliers that feed those plants with parts also closed. In 2009, GM eliminated a shift at the Wentzville plant, affecting more than 800 workers.

Some were laid off, and some took voluntary transfers to GM facilities elsewhere.

Some of those transferred and laid-off employees could be eligible for rehiring, according to UAW officials. Sixteen former Wentzville GM employees were transferred to GM’s Fairfax assembly plant in Kansas City, Kan., and 27 laid-off employees remain on Local 2250’s recall list.

GM also will be offering openings to unemployed GM union workers nationally who have recall rights. The number of such workers was unavailable.

Additionally, there are 350 people on a local referral list who could be tapped for the new jobs, Bullock said.

The investment by GM would pay for a 500,000-square-foot addition to the Wentzville’s current 3.7 million-square-foot facility, improvements to its paint department and other upgrades. The new contract also details plans for a midsize pickup to be produced in Wentzville. More than 1,000 workers would start working on that new line in 2013 for a 2014 model pickup, Bullock said.

“We’ve been waiting patiently a long time to hear this news,” said Tom Brune, UAW communications coordinator for Local 2250.

As Joe Gurrieri, 31, of O’Fallon, Mo., used a mechanical arm to swing dash panels into place on a steady stream of Chevy Express vans Tuesday, he said he was hopeful current workers would have more job security. Gurrieri, a 12-year employee, said he had returned to work in November after being laid off. “It’s good to be back, and it’s good to know we’ll be here for a while,” he said.

Some analysts have speculated that GM will shift production of its Chevrolet Colorado or GMC Canyon pickups, which currently are made in Shreveport, La., to Wentzville. The Shreveport assembly facility, which employs more than 900 people, is not owned by GM and had previously been slated to close as part of GM’s emergence from bankruptcy in 2009. A GM spokesman declined to comment on the pending contract or expansion details.

Last week, plant manager John Dansby told the Post-Dispatch that he believed Wentzville had been selected for expansion because of the plant’s emphasis on producing high quality vehicles at low costs.

“We’ve been working really hard at the plant to try to position ourselves to be very competitive,” Dansby said.

Last year, the plant forecast production of 80,000 vehicles and ended the year producing nearly 100,000.

“Our volumes are increasing, and the buying public has done a great job supporting our product,” he said.

TAX BREAKS

To help finance the expansion, Wentzville’s board of aldermen approved last week partial tax abatement for GM if it expands. As part of the deal, GM would make “payments in lieu of taxes” to local school districts, and have 75 percent of its property taxes for the new development abated for 10 years.

Wentzville Mayor Paul Lambi said he was hopeful the new jobs would bring back what was lost when the GM plant downsized in 2009. “There was an unbelievable ripple effect,” Lambi said, describing the closure of nearby restaurants and retailers two years ago. “Every business that relies on retail sales was affected. Bringing back a second shift is extremely good news.”

A couple of miles from the plant, Dan Strantz, owner of Mama’s Grill, also welcomed the news. The diner’s location near the intersection of Highway 40 and Interstate 70 opened about a month and half ago, he said, but his family has been in the restaurant business since 1972. “It’ll be good that there will actually be people with money to go out and spend,” he said.

If the expansion proceeds, GM is likely to pursue state incentives. The automaker has been in talks with Gov. Jay Nixon’s office and Department of Economic Development officials for a year, according to the governor’s spokesman, Sam Murphey. The automaker has not yet applied for any state incentives.

“We are strongly encouraged by the recent steps GM has taken, and we look forward to continuing to work closely with GM throughout this process,” Murphey said in a statement Tuesday.

The UAW outlined investments proposed by GM at several other plants nationwide, including plans to invest $925 million at three Michigan factories that will generate 900 jobs during the life of the contract. GM also plans to invest in plants in Spring Hill, Tenn., which had been idled, and Fort Wayne, Ind., that will generate or preserve a combined 3,700 jobs.

Gerrion Grim, 53, of O’Fallon, Mo., has worked at the Wentzville plant for about 18 months. He said he was laid off for a while and returned to work in April. Now, he said, he would like to see job security. “I’m definitely hoping for some longevity,” he said. “I just hope it all goes well.”

Shane Anthony of the Post-Dispatch contributed to this report.

Source

« Previous PageNext Page »