SBDC in the NEWS

The following articles are just a few of our client related successes and recent stories emphasizing our involvement in the business community as small business resource and advocate.

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SALES TAX REVENUE UP IN VICTORIA

Friday, May 13, 2005. THOMAS DOYLE.  Victoria Advocate Business Reporter

People and businesses spent almost 10 percent more on taxable goods and services in Victoria County in March this year than they did in March of 2004, according to information about sales tax revenue returned to local entities today.

Consumers and businesses spent $9.77 million more on taxable goods that month, which is an increase of about 9.94 percent, based on tax revenues reported returned by the Texas Comptroller's office.

Taxable spending in the five-month period between November and March increased by $30.09 million over the same time period a year before, an increase of about 6.8 percent.

"Anything in the 3 to 4 percent range would be reasonable growth," said Charles Bullock, dean of the school of business at the University of Houston-Victoria. "I think that's exceptional."

Other local business authorities agreed that the numbers show a greater willingness to buy goods and services.

"I do think there is a renewed confidence in the economy in terms of the public," said Phyllis Hunt, president of the Victoria Chamber of Commerce.

Rising prices could account for some increase in tax revenues, but the effect wouldn't be nearly as great as that seen in spending in recent months, said Carole Parks, director of the University of Houston-Victoria Small Business Development Center.

While there are several retail projects under development or construction, not many of them have opened for business, she said. Therefore customers must be spending more money at existing businesses in the community.

The existing retail mix in Victoria must have become more appealing to Victoria shoppers, Bullock said, giving them greater incentive to shop in the community rather than traveling to one of the nearby metropolitan areas.

High gasoline prices also serve as an incentive for people to stay in Victoria County to shop, he said.

Similar reasons caused strong sales increases in February, he said, when taxable spending increased by $2.87 million over February 2004, a 3.8 percent rise.

March's much stronger increase probably isn't a sign of things to come, at least in the long term, Bullock said.

"I don't think you can sustain 9 percent forever," he said. That rate will probably cool somewhat in the not-too-distant future, he said.

"Hopefully we will see 4 to 5 percent continued growth, which will be good growth." Bullock said. The extensive new retail development the city is experiencing should help sustain that growth rate by providing a more attractive mix of goods and services for the community, he said.

Several thousand square feet of new retail space has been announced recently, including new tenant Best Buy at Victoria Mall, a 97,000-square-foot shopping center at the intersection of North Navarro Street and Sam Houston Drive, and a 75,000-square-foot shopping center on Zac Lentz Parkway, near Navarro.

Developers and property owners are presently working to recruit new national retailers to those, and other developments.

Sales tax revenue returned to taxing entities today represents sales made in March, and sent to the state in April. The city of Victoria levies a 1 cent per dollar tax, while the Victoria Sales Tax Development Corp. levies a half-cent tax. Victoria County levies an additional half-cent tax.

The city of Victoria and the sales tax corporation received $137,662 more in sales tax returns today than in May 2004, up 9.51 percent. Returns for the year so far were up $515,010 over the first five months of 2004, or 7.96 percent.

Victoria County received $57,730 more this month than in May 2004, for an increase of 11.1 percent. Year-to-date revenue was up by $86,805, or 3.62 percent.

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JAPAN WANTS TO DO BUSINESS WITH TEXANS

Wednesday, April 27, 2005. THOMAS DOYLE.  Victoria Advocate Business Reporter

Businesses in the Victoria region can do business in Japan, business consultants said Tuesday.

Japan has tried to be an honorable and graceful loser in the post World War II era, said Yoshihiko Kamo, consul general of the Japanese Consulate in Houston. By trying to be peaceful and a good neighbor, Japan was able to rebuild from the destruction of that war into the second largest market in the world, he said.

Kamo made his comments as the keynote speaker at a Tuesday conference on doing business with Japan at the University of Houston-Victoria. About 40 people attended the event.

Japan represents a potential market for U.S. goods, including computer electronics, petrochemical products, transportation equipment, machinery and processed food, said Takashi Nakamizo, director of business development with the Japanese External Trade Organization in Houston. The organization helps companies in both countries do business together, he said.

Japan is the gateway to the Asian marketplace, he said. Business costs are getting lower than in the 1990s in Japan, he said.

"Now is a good time for American companies to do business with Japan," Nakamizo said.

The world is quickly reaching the point where any product, marketed correctly, can have global relevancy, said Keith Mudd, senior business development specialist with the University of Houston Small Business Development Center, one of the event's sponsors.

"The door is wide open," he said. With organizations like the Japanese organization in Houston, businesses in Victoria and the surrounding area can access that marketplace or form business relationships with companies in Japan, he said.

Many small Japanese companies are big on scientific innovation but short on cash flow, Kamo said. Many are being bought by concerns from other Asian companies. Partnerships with Texas firms could represent great possibilities for both countries, he said.

Japan also has an aging population that has been saving financial resources over time, he said. While they won't come to America for treatment, there could be great demand for American-developed technology and services in Japan, he said.

While there are differences in core business philosophies of the two countries, Japan is facing changes to that core business model that bring it closer to American capitalism.

Kamo described the current system as one in which Japanese companies provide almost a socialistic type of support for employees, guaranteeing a comfortable but not luxurious life for all employees. The same system provides greater wealth for those who have been with a company the longest, he said.

With global competition, some companies are straying from this philosophy and cutting labor costs to become more competitive, Kamo said.

He noted much of the capital that has helped the Japanese economy grow in recent times came from savings certain companies made by cutting labor costs. Japan is still recovering from recent economic hardships, Kamo noted.

Regrettably, many people in Japan are simply unaware of Texas, Kamo said. When they think of the United States they most often think of New York or Los Angeles. Most think of Texas as looking like the desert area surrounding El Paso, he said.

One of the best ways to change this impression is through programs that send the young people of one nation to the other, he said. Such experiences will be the start of closer economic ties in the future, he said.

A growing number of people in Japan are gaining a sense that the gravity of political and business power in the United States is moving south, since President George W. Bush is from Texas, and Toyota recently located a major plant in San Antonio, he noted.

Local companies seeking more information on doing business with Japan can contact Japanese External Trade Organization representatives in Houston by calling 713-759-9595 or online at www.jetro.org

Tuesday's presentation was sponsored by the Victoria Economic Development Corp., the University of Houston Small Business Development Center, the Victoria Chamber of Commerce, the University of Houston-Victoria and the Texas Workforce Solutions of the Golden Crescent.

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VICTORIA'S ECONOMY EXPERIENCING GROWTH; CONSUMER SPENDING IS UP

Saturday, April 9th, 2005. THOMAS DOYLE.  Victoria Advocate Business Reporter

The Victoria economy is showing exceptional growth based on the amount of money spent on taxable goods in the last several months, business authorities said Friday.

Spending on taxable goods in Victoria County increased by around $2.87 million in February over February of 2004, according to sales tax numbers released Friday by the Texas comptroller's office. The increase represents a 3.8 percent rise in spending.

Consumers and businesses spent about $20.3 million more in the four-month period between November of 2004 and February of 2005 compared to the same period of time a year prior. The rise represented about a 5.9 percent increase in spending.

"Decent growth is going to be 2.5 percent growth. Anything above that is exceptional," said Charles Bullock, dean of the school of business at the University of Houston-Victoria.

While there have been fears that rising petroleum prices could increase prices, such an increase would represent only a small part of the rise in spending on taxable goods, he said.

"We are definitely in a recovery," Bullock said.

"Wow, that's a sizable increase," commented Carole Parks, director of the University of Houston-Victoria Small Business Development Center. "It tells me that our economy is definitely on an upswing."

The increase could have multiple causes.

"People must have more faith in the economy and therefore they are feeling comfortable with spending more," Parks said.

It might also be reflective of an increase in the number of retailers in Victoria, she said.

The retail selection in Victoria may also be providing a greater draw for people to stay in Victoria rather than go to Houston or San Antonio to shop, Bullock said. He added that a more attractive mix of products could also be creating a stronger draw for people living in the surrounding counties and communities, he said.

Higher gas prices also could be giving people an incentive to stay in Victoria to shop, Bullock said. Gasoline prices of about $2.20 a gallon serve as a deterrent to such shopping day trips, he said.

However, higher gas prices obviously reduce spendable income and will have a depressing effect on spending in the long term, he noted.

From the business perspective, sales growth of nearly 6 percent would justify serious thoughts of business expansion, Parks said. That could include hiring more employees, increasing the selection of merchandise, or enhancing facilities, she said.

Victoria still needs more high-paying jobs in the community to create and sustain stronger economic growth, said Phyllis Hunt, president of the Victoria Chamber of commerce. "But we are thrilled that we are sustaining ourselves and we are seeing growth."

Sales tax returns released Friday represent sales made in February, sent to the state in March, and returned to local taxing entities in April.

The city of Victoria levies a one-cent per dollar sales tax, while the Victoria Sales Tax Development Corp. levies a half-cent tax. Victoria County levies an additional half-cent tax.

The city of Victoria and the sales tax corporation received $60,095 more in tax revenue than in April of 2004, for a 5.51 percent increase. In raw numbers the city received $1,149,296 this month, and $1,089,201 in April of 2004. So far, this year the two entities received $377,349 more than in the first four months of 2004, a 7.52 percent increase. In raw numbers, the city received $5,393,628 in 2005, and $5,016,279 by this time in 2004.

Victoria County received $2,635 less this month than in April of 2004, a 0.64 percent decrease. In raw numbers the county received $403,932 this month, down from $406,567 in April of 2004.

But for the year the county has received $29,075 more than in the first four months of 2004, a 1.55 percent increase. In raw numbers, the county received $1,901,703 in the first four months of this year, compared to $1,872,628 in 2004.

State tax returns to local governments were up 5.5 percent compared to April 2004, according to a Comptroller's office news release. So far this calendar year, sales tax allocations to local governments are up 6.5 percent.

The state of Texas received $1.2 billion in sales tax revenue in March, a 2 percent increase compared to March 2004, the release said.

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UHV SBDC APPROVED TO PROVIDE BORROWER TRAINING FOR FSA LOANS

Sunday, March 20, 2005.  MARSHA MOULDER, Farm & Ranch News, The Victoria Advocate

It took four and half years, but the University of Houston-Victoria Small Business Development Center has been approved by the Farm Service Agency to teach borrower training to agricultural producers who take out a FSA loan.

Borrowers have two years to complete the required training.

After becoming aware of the number of Texans defaulting on their FSA loans because they didn't receive the proper training, the UHV SBDC's Pat Calhoun, senior business development specialist, made it a mission to get approval from the FSA for his office to become a vendor to provide the training.

The UHV SBDC is a part of a nationwide business assistance program that offers one-stop business management assistance through individual confidential counseling, business training, referrals and a wide variety of information and guidance.

The contract between UHV SBDC and FSA was signed week before last. The FSA considers this a pilot program.

"We're very excited. It's the first time ever there has been official collaboration between the FSA and SBDC," said Carole Parks UHV SBDC director. "They told us all eyes in the nation are on Pat."

Calhoun brings a ranching background and a banking background to the table.

Calhoun, who is state program manager for "Tilling the Soil of Opportunity," an agricultural entrepreneurship training program, proposed to the FSA that he be allowed to use that program for the FSA loan training.

Originally, this training program was designed to cover 13 weeks, meeting one night a week. But the FSA asked Calhoun to give them a bid for a training program that wouldn't take as long. So, he reorganized the "Tilling the Soil of Opportunity" to be a five-week program that meets for one eight-hour session a week.

The cost is $495, which includes a 500-page book and lunches. A second family member can attend for $250.

"You will actually write a business plan to take to the lender, in this case the FSA, to make them understand what you're trying to accomplish," Calhoun said.

The program is designed to help ag producers or agribusinesses access available financial, management and family/social resources; develop concise business mission and goals; determine the best legal structure for their business by identifying and defining regulatory impacts on proposed or existing business; evaluate available resources, determine ways to minimize asset risk, identify management strategies necessary for business success, and develop record-keeping systems and discipline; learn key concepts, terms and how-tos of marketing; develop marketing strategy, explore differences between marketing and advertising, and learn to attract potential customers; understand budgets project annual cash flow, calculate pricing and margins, and comprehend the power of using "what if" scenarios; understand cash-flow projections and their use as a management tool, protect credit ratings, and understand balance sheets and profit and loss statements; evaluate financing options and determine which is best for them; and decide on feasibility and take the next steps.

The UHV SBDC covers 11 counties, and within those counties are four FSA loan service centers, which cover a total of 35 counties.

"We're trying to cover those four service centers," Calhoun said.

He is currently meeting with the four FSA credit service center directors to organize training sessions. "If I have enough people in their area, I'll come to their area for the training. We're trying to make it as easy as possible," Calhoun said.

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PREPARATION KEY TO STARTING A SUCCESSFUL BUSINESS

Sunday, March 20, 2005. THOMAS DOYLE.  Victoria Advocate Business Reporter

Starting a business isn't for the meek.

So advised Pat Calhoun, senior business development specialist with the University of Houston-Victoria Small Business Development Center, while speaking to a group of potential entrepreneurs during one of the agency's weekly seminars on how to start a business.

Before starting a business, Calhoun advised preparing a feasibility study, a process designed to quickly determine if a business idea will work.

About 80 percent of all new businesses fail in the first five years, he said.

Opening a business is tough, Calhoun said. It requires arriving at the office before the general public arrives to open, and staying until after everyone else leaves to close things down.

"It takes a special breed," Calhoun said. Just wanting to be your own boss isn't reason enough, he said.

Business owners have to work 12- to 16-hour days to get things up and running.

Generally, any service or product a person can sell is already being sold by someone else. So a new business will essentially have to take market share from that competitor, he said.

"What will attract them to you?" Calhoun asked. A competitive advantage could be price, convenience, service or a combination of the three, he said.

First, an entrepreneur has to collect data on such things as rent, product costs and other operating expenses.

Simple formulas can be used to help a potential entrepreneur determine if his idea will make enough money to break even and cover the cost of living for the business owner.

That includes thinking practically if an entrepreneur is capable of doing enough business for the enterprise to sustain itself, he said.

If the idea is a huge success on paper, it just might work in the real world. If it is marginal on paper, the idea must be adjusted or abandoned because unexpected factors will always come about, he said.

If the business passes the feasibility "smell test," then the aspiring business owner can move on to creating a business plan.

The business plan is essentially a snapshot of how a business will operate in ideal circumstances, he said. The plan tells people inside the company how things should work, and tells those outside the business why they should put money into the company, he said. Banks use information from business plans when making commercial lending decisions, he noted.

"Information is power. The more information you have the better decision you can make," Calhoun said.

But he cautioned that creating such a plan requires a great amount of time, energy and thought.

The plan breaks down into three parts, he said: a management plan, a marketing plan and a financing plan.

The management plan first describes the way a company will be organized, as a sole proprietorship, partnership, a corporation or some version of the three, he said.

Sole proprietorships are the easiest and cheapest to establish, while corporations provide the greatest protection from personal liability for financial and legal concerns.

A sole proprietorship has to register an assumed name with the county, check with the Texas Comptroller's office to see if the enterprise will have to collect sales tax, and then open the doors, he said.

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VICTORIA BUSINESSES SPLIT ON HOUSE BILL

Wednesday, March 16, 2005.  THOMAS DOYLE.  Victoria Advocate Business Reporter

Ultimately the new and expanded taxes that passed the Texas House on Tuesday would be paid by the general public, business leaders said.

"If I am a good business person, I will protect the bottom line," said Carole Parks, director of the University of Houston-Victoria Small Business Development Center. A company will raise prices, forego raises or not hire additional employees to offset their increased operating costs, she said.

On the plus side, the bill would decrease property taxes by a third, said state Rep. Geanie Morrison.

"My constituents have asked time and time again to have significant property tax relief and that is what this bill is all about, property tax relief," said the Victoria Republican.

The bill's passage was supported by business organizations in Victoria and Austin.

"Nothing is perfect when it comes to raising taxes, but it's probably the most fair proposal we've seen yet," said Phyllis Hunt, president of the Victoria Chamber of Commerce and member of the Texas Association of Business board of directors. The TAB officially endorsed the bill Tuesday, she noted.

The bill hopes to close loopholes in the law that allow some business to avoid franchise taxes. Since the franchise tax only applies to corporations, business enterprises can simply organize as a limited liability partnership or some other type of structure to avoid the tax, said Cathy Marek, a certified public accountant in Victoria.

A business can also reduce its net income below the $2,222 exemption level by renting or leasing property, she said. Or the owners of a small corporation can pay themselves enough money at the end of the year so the corporation's net income is less than the exemption level, she said. While the corporation's owners still pay federal income tax, they avoid the state franchise tax, she said.

Several local businesses spoke unfavorably about the possible expansion of the state's sales tax to include such things as outdoor advertising and automotive repair.

"We deal with a lot of smaller businesses that have a very small budget for their advertising," said Mark Sankovich, general manager with Lamar Outdoor Advertising in Victoria. "Any time you put an additional expense in there it just takes away from the amount that they can advertise."

Local auto mechanics also voiced concern over their services being subject to sales tax.

"It's going to make us look bad because it makes us look like we are charging more," said Edmund Kloesel, owner of Big Ed's Automotive on Main Street. Customers already tell him they can't afford car repair, he said.

Raising the price may lead people to put off repairs simply because they can't afford it, said Erica Zarbock, owner of Zarbock's Automotive and Transmissions on Navarro Street

The chamber's Hunt said she disagrees with the proposed "sin tax" increase on cigarettes.

Omar Rachid, director of marketing for Victoria-based Speedy Stop Stores, also dislikes the tax. He said such taxes will drive people to buy tobacco products in other states, Mexico or on the Internet to avoid paying the tax. In places where similar taxes have been tried, the new tax didn't reduce smoking, he said.

Rachid said increased tax on snack food probably wouldn't affect sales.

The bill goes next to the Texas Senate for debate.

"(The bill) probably won't look the same once we get through with it on our side," said state Sen. Ken Armbrister, D-Victoria.

While the House did a lot of hard work, the Senate has a different perspective on things, he said.

Talk around the state Senate has included increasing sales taxes slightly and broadening the taxable base, he said, although he declined to comment on specifics.

However, Armbrister said he was against extending the state franchise tax to limited liability partnerships because at the end of the year all the revenue of such ventures is distributed to the owners.

"That's nothing more than a state income tax, I don't care how they try to package it," Armbrister said. Texas has never had a state income tax and lacks the public support to create one, he said.

Armbrister said he prefers making greater use of non-tax revenues, such as allowing Video Lottery Terminals - a bill Armbrister introduced.

The true effect of the legislation on local businesses won't be known until a bill becomes law and business owners can run the numbers, said Donald Day, owner of Texas Glass & Tinting and former president of the Victoria chapter of the Texas Association of Business.

But Zarbock said any addition of taxes will serve only to make it harder for small businesses trying to create income for owners and jobs in the community.

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UHV SEEKS FUNDS FOR NEW FACILITY

Friday, February 18, 2005. THOMAS DOYLE.  Victoria Advocate Business Reporter

The University of Houston-Victoria plans to build a new 30,000-square-foot facility to house many of the area agencies that deal with economic development if funding can be secured, a university official said Thursday.

The Victoria Chamber of Commerce and the University of Houston-Victoria Small Business Development Center have already confirmed they would move into the estimated $5.44 million center. The two-story building would be located on Ben Jordan Street across the roadway from the existing school facilities, said Wayne Beran, vice president for administration and finance for UHV, who is heading the project. The university already owns the vacant lot on which the building would be built, he said.

It is hoped that moving many of the different economic development organizations together into the proposed building, which has been dubbed the Regional Center for Economic Development, would allow for greater collaboration between the groups and thus help to create more economic growth in the area as a whole, he said.

A common building would also allow the different organizations to operate more efficiently by sharing resources such as phone systems and Internet service, he said.

The school has asked permission from the state of Texas to sell $4.02 million in tuition revenue bonds to fund the project, which the state would service over the next 20 years, he said. The Legislature is expected to vote on the request in May, Beran said.

The remaining funding for the project would come from a requested $1 million grant from the federal Economic Development Administration, and $420,000 to be raised locally, he said.

If all funding is approved, the facility should be open in about two years, Beran said, adding that most school building projects take five years to complete.

Other groups such as the Associated Builders and Contractors, the Golden Crescent Regional Planning Commission, and the De-Go-La Resource Conservation and Development Project Inc., a part of the economic development branch of the U.S. Department of Agriculture, have voiced strong interest in moving into the facility if funding is approved.

The university would also locate its Regional Outreach Center's economic and professional development sections in the building, Beran said.

While the city's facility at 700 N. Main St. was originally meant to follow a similar purpose, the organizations housed there and the bureaucracy of the city grew to where space has become limited for everyone, said Phyllis Hunt, president of the Victoria Chamber of Commerce.

"We're basically sitting on top of each other," Hunt said of her office. The chamber doesn't have space for additional staff or volunteers in their existing facility, she said.

The money the SBDC currently pays in rent at that location could be used to hire an additional business counselor if the agency were to move to a university-owned facility, said Carole Parks, SBDC director.

The Golden Crescent Regional Planning Commission is housed in an old building at Victoria Regional Airport that has issues with energy efficiency and technological accessibility, said Joe Brannan, executive director.

However, the Victoria Economic Development Corp. hasn't committed to the new location. The agency is well served by its existing facilities at 700 N. Main St., and enjoys certain advantages being located next to the city's engineering and planning departments, said Dale Fowler, VEDC president.

Once more details about the building are finalized, the VEDC will examine the possibility of moving, he said.

In addition to housing the various agencies, the building would also have conference rooms and other facilities available for organizations not based at the center, such as government representatives, Beran said. This would help cement collaborative relationships with agencies located elsewhere, he said.

The university might also fund a support staff to help coordinate the joint activities of the different organizations and agencies, he said.

By locating the facility on the university campus, the educational institution can move into a role of a driving force for economic development, Beran said, and act as an organizing umbrella to take economic development in a more regional direction.

Regional cooperation between cities and agencies is becoming more important to funding sources, as well as business site locators, Parks said.

Ultimately, Beran said, he hopes the facility can give rise to a regional chamber of commerce and a regional economic development organization made up of the various local institutions scattered through the area.

Population growth in the region is stagnant, Beran said, and that won't change without something to attract people to the area. And to bring that something will require everyone working together, he said.

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REGISTRATION ENDS TODAY FOR FRIDAY'S CUBAN BUSINESS SEMINAR IN VICTORIA

Thursday, February 10, 2005.  THOMAS DOYLE.  Victoria Advocate Business Reporter

"Doing Business with Cuba" organizers have extended the deadline to register for the seminar to today.

The seminar is planned from 8 a.m. to 1:30 p.m. Friday at the University Center Multi-Purpose Room at 307 N. Ben Wilson St. on the University of Houston-Victoria Campus.

Joe Janak, Victoria County extension agent, said Wednesday he is pleased with the response, but he must insist on a deadline of today so he can give the caterer the correct head count for lunch.

During the conference, via telephone, Dagoberto Rodriguez, chief of the Cuban interests section of Washington, D.C., will talk about Cuba as the expanding agriculture export market.

Parr Rosson, professor and extension economist at Texas A&M University in College Station, will talk about the Cuban market for food and agricultural products.

Cliff Paredes, director of the University of Texas-San Antonio International Trade Center, will speak on international trade opportunities.

Cynthia Thomas, president of the Texas Cuba Trade Alliance out of Dallas, will talk about how to conduct trade with Cuba and get paid, and Howard Hawthorne, executive director of the Port of Victoria, will talk about port facilities and requirements.

Trade opportunities expressed by Cuba trading participants will be given on several different topics, including the following:

·  Livestock - Alfredo and Josefina Muskus of Santa Elena Ranch, Madisonville, who are trying to trade breeding cattle

·  Crop commodities - Vic Cannon, vice president-marketing, Texana Rice, Inc. of Louise which recently traded rice to Cuba

·  Medical - Dr. Don Dugi, physician, Bohman Clinic in Cuero, which has traded human wound care products.

A "getting-to-know-each-other" informal lunch will be followed by a question-and-answer panel. Pre-registration for the seminar will be $25 per person. Call the Victoria County Cooperative Extension office at 361-575-4581 to register.

Program sponsors are Texas Cooperative Extension; Victoria County Extension Beef, Range & Pasture Committee; Victoria County Extension Crops Committee; University of Houston - Victoria Small Business Development Center; Victoria Chamber of Commerce; Victoria County Farm Bureau; Independent Cattlemen's Association; South Texas Cotton & Grain Association; and the Port of Victoria.

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New pizza restaurant hopes to become a familial setting

February 1st, 2005. Thomas Doyle, Victoria Advocate Business Reporter

Rick Barsness said Monday he is happy to be returning to the Victoria pizza trade with a new restaurant scheduled to open sometime in 2005.

Although many of the details are still subject to negotiation, the new restaurant, dubbed Victoria's Incredible Pizza Co., will be the third restaurant in the Barsness' America's Incredible Pizza Co. franchise.

Barsness and his wife, Cheryl, owned the Victoria Mr. Gatti's franchise for more than 20 years before selling it about five years ago to Dr. Love Paul so the couple could franchise their own pizza and entertainment concept, Barsness said. At the same time the couple sold their six other Mr. Gatti's locations across the state to other investors.

"It's kind of fun to come home and put in our new concept," said Barsness, who now lives in Missouri. He and his wife will not move back to Victoria, he noted. The Incredible Pizza Co., chain now has two open locations, one in Tulsa, Okla., and the other in Springfield, Mo., and has sold 41 franchises in the last 18 months.

Mr. Gatti's ceased all operations in Victoria in October in what Paul and others described as a business decision. With Mr. Gatti's no longer in business in the Victoria, Barsness said the market is now wide open for his concept.

Barsness said he is negotiating for one of two locations on the north side of Victoria, but declined to disclose specifics because discussions were still ongoing. He did say he expects the cost of getting the restaurant ready for opening should be around $2.5 million.

The location will occupy between 20,000 to 25,000 square feet, he said. The old Mr. Gatti's location at 3706 N. Navarro doesn't have enough square footage or parking for the new concept, Barsness commented. The new restaurant will employ about 20 full-time and 20 part-time employees, he said. The staff, according to Barsness, will include six managers, who will most likely be hired locally.

The restaurant will serve food in a buffet-line format, with prices ranging from $2.99 to $5.99 based on a patron's age, he said. Aside from the pizza bar, the restaurant will include a pasta bar, 100-item salad bar, a baked potato bar and a desert bar, Barsness said. Entertainment will include bumper cars and a large arcade with redemption games and "family-friendly" video games, he said. Barsness said he is looking into the possibility of an indoor Go-Kart track and an indoor miniature golf course. The entire establishment will have a 1950s theme with various sub-themed rooms, including a drive-in movie room, a Leave It to Beaver family room and a diner-themed area, he said. Hours of operation will be from 11 a.m. to 10 p.m. daily, he said.

Three groups of investors, all based in Victoria, are now competing to be the official franchisee, Barsness said. At the moment the most likely contender would retain Barsness as a principal investor in the restaurant, he said. Most of the negotiations should be complete within the next 60 days, he said.

Barsness' announcement came a few weeks after officials with the parent company of Chuck E. Cheese confirmed they were looking into opening a restaurant at Victoria Mall by midsummer.

The Victoria market might be able to support both restaurants, said Carole Parks, director of the University of Houston-Victoria Small Business Development Center. But the two establishments would be in tight competition, she said. Both firms should make use of extensive marketing practices as part of what would seem destined to be head-to-head competition.

While no one has bought the open franchise rights for the Victoria area, Mr. Gatti's Inc. still hopes to open a new restaurant in the area in the near future, said Darren Lister, senior vice president.

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Revitalization

January 30th, 2005. Thomas Doyle, Victoria Advocate Business Reporter

Once upon a time, everybody in Victoria went downtown for everything.

"Downtown was the center of cultural life in Victoria," said Phyllis Hunt, president of the Victoria Chamber of Commerce. Churches, government offices, movie theaters and most of the stores were downtown, she said.

Those good old days weren't that long ago.

When Victoria resident Carole Parks came to the city 20 years ago, major grocery stores, clothiers and drugstores were all downtown.

And it wasn't just national chains that did business downtown. The George J. Filley Department Store on Main Street and Juan Linn stayed open until 11:30 p.m. so local patrons could get all their basic needs, recalled George J. Filley III, who now makes his law office above the family store.

But as the years passed, most of the downtown area came to resemble the current upstairs of the George J. Filley Department Store building more than its downstairs, which is now an antique store.

As people moved north to the suburbs, businesses moved with them, said Parks, who works as the director of the Small Business Development Center at the University of Houston Victoria.

And with the businesses, patrons slowly faded from downtown.

Now downtown is mainly made up of professional offices, and the area pretty much dies after 5 p.m. unless there is a special event, Parks said.

It's not as though there is a large number of empty office spaces rotting downtown like in some cities, Hunt said. But in the new environment, something just seems missing, Hunt said.

Downtown carries a certain nostalgia, the feel of yesteryear, she said. By bringing life to the downtown area beyond the 8-to-5 business day, people can experience a special ambiance that's like no place else.

"You just hate to lose that. Part of Victoria's charm is its history," Hunt said.

There's definitely a niche that could be created for specialty retail downtown, Parks said, noting it has been done successfully elsewhere.

However, retail businesses won't come until there are people traveling downtown, and people won't come unless there is a reason to make downtown a destination, Parks said. That draw will most likely initially come from the entertainment industry, she said.

"The downtown performing arts center is going to be a big boost, because it will also bring more nighttime/evening type entertainment downtown," Hunt said.

What was once a long-vacant department store at the corner of Main Street and Goodwin is returning to life as the Leo J. Welder Center for the Performing Arts.

What originally started as a new home for the Victoria Community Theatre grew and evolved into a $4.3 million, 485-seat center for performing arts of every flavor, said Robert Hewitt Jr., president of Victoria Performing Arts Center Inc., which owns the building.

Traveling shows, local theater groups, musicians, dancers or any other artists who create in the performing milieu can make use of the facility, he said.

The theater could even draw people back to downtown on the weekend, as Hewitt recalled from his boyhood. Presently, the area is a virtual ghost town on Saturday and Sunday, he said.

Many downtown restaurant owners voiced excitement over the possibilities the center raises.

Eddie Threadgill previously made a go of having the restaurant that serves as a side to his successful catering firm open in the evening. He booked live music and served beer and wine to patrons, but there just weren't enough of them, he said.

"Financially, I could not afford to continue to open at night," said the owner of both Catering by Eddie and Eddie's Uptown Downtown. "There's nothing down here to bring them down here. There's nothing to attract anybody down here."

But when the new theatre opens, Threadgill said he is considering opening especially for performance nights.

Other restaurateurs who already remain open in the evenings said more people coming downtown could only help. Many of the restaurants have been doing business downtown for years after slowly migrating down to the historic region of the city.

Among the first to come was Cliff Kuykendall and his wife Magdalena, who moved Taqueria Victoria into its home on Main Street in 1991.

The couple found an opportunity to purchase a building downtown and move from Victoria Mall.

"We wanted to be part of that downtown revitalization that's been talked about for years," he said.

"I'm happy with it, although there are very few people (customers) other than people who work downtown or live in the area," he said. Over the years, the business has built up a stock of regular clients who keep things comfortable, he said.

About eight years ago, Jimmy Tang opened up Beijing Garden just up the street from the Kuykendalls' place. He's been open in the evenings ever since then, he said.

"Sometimes it's pretty busy; sometimes it's not too busy," he said. He tried spreading business hours to the weekend, but there just weren't enough customers to justify it. "It would be nice to have a little more dinner business," he added.

But in order for that to happen people will need to have a reason to trek downtown, he said, mirroring the sentiments of many other downtown entrepreneurs.

In more recent years, other entrepreneurs like Threadgill have tried their luck at downtown restaurants.

Most recently, the old Plaza Club on the 12th floor of One O'Connor Plaza reopened as The Oak Room in late 2004. The new owners opened it up to the public in the hopes of becoming the premier fine dining locale in Victoria, said general manager Ford Martin.

Prior to opening, the location underwent extensive renovations. Part of the floor became the offices for the Woodhouse Spa Corp., whose owners are also part owners of the restaurant.

In November 2000, Jerry Ebensberger opened Rosebud Fountain and Grill in the old Bianchi's Pharmacy at the corner of Main Street and Constitution.

Ebensberger reported success in catering to downtown lunch crowds, and evening crowds to a lesser degree on the weekend.

And in 2002, Scott McHaney and John Roberts opened the 205 Bar on Constitution Street in an attempt to make an upscale drinking establishment downtown.

McHaney, the managing partner, noted decent crowds of professionals who work downtown come earlier in the evening, and a younger crowd arrives in the later evening.

Since the location is within walking distance of the Downtown Bar & Grill, the two businesses exhibit a sort of collective draw to the downtown area, he said.

The addition of similar types of establishments, or establishments such as a coffee shop that would draw a similar demographic, would help draw even more people to the area, he said.

To further enhance that draw, a few establishments have made a successful go of musical entertainment on a limited basis, the owners said.

Usually, about once a month, Fossati's Delicatessen hosts a karaoke night, said co-owner Theresa Bomersbach. The restaurant also manages to stay booked many weekend evenings for private parties, she added.

The restaurant, which has been downtown since 1882, sees a lot of wedding rehearsal dinners on Friday nights, she commented.

McHaney's 205 Bar brings in a few regular music acts a couple of times a month to serenade patrons.

"Just because you have live music does not mean it's a successful night," he said. It requires the right kind of act. For that reason, the bar doesn't book live music on a standard schedule.

Threadgill said one of the reasons he stopped opening for live music was because of the financial risk without guaranteed financial rewards.

While the performing arts center will help bring in people, Taqueria Victoria's Kuykendall said, more promotion from the city would also help.

Last year, the Victoria Sales Tax Development Corp. dedicated $75,000 to help improve the look of downtown. City employee Jerod Mayfield, a senior planner with the civil government, took control of the day-to-day tasks of administering those funds.

First off, the city purchases seasonal banners to help brighten the downtown environment, he said.

Over the next few months the city will add benches and trash receptacles to improve the aesthetics of the area. The city will also make minor sidewalk repairs and begin using city parks department employees to maintain the planters in that part of the city.

Outside of the funding, the city also examined creating sidewalk extensions at the corners of certain streets to make downtown more accessible as part of the Victoria 2020 comprehensive plan, Mayfield said. The extended sidewalks could also allow outdoor dining for restaurants like Rosebud, he said.

The idea, along with the request for the money from the sales tax corporation, came from the city's Downtown 2020 committee, a committee formed to help implement the downtown portion of the Victoria 2020 plan, he said. The committee, headed by former Victoria County Judge Helen Walker, hasn't met since last spring, he said.

Martin, who manages The Oak Room, said one of the best ways businesses downtown can help revitalize the area is by helping each other.

Different restaurants and bars cater to different clients, he said. Businesses can refer clients to other downtown businesses and help create enough business for everyone.

A few of the restaurateurs spoke favorably of a downtown merchants association, but no such entity exists, nor had anyone heard of specific efforts to form such an organization.

As an example of how cooperation can work, Martin pointed to recent cooperative efforts between himself and McHaney to help promote each other's operations.

When The Oak Room closes at midnight on the weekends, Martin said he sends patrons not yet done with their revelry down to the 205 Bar. Likewise, when McHaney's patrons mention a desire for a nice meal during an evening's entertainment, he will direct them to The Oak Room.

Other cities, Houston for example, have been very successful in bringing new commerce to downtown, he said, and it all started with entrepreneurs working together to collectively draw people to downtown. And just because people are working to create a more active nightlife downtown doesn't mean more professionals aren't coming downtown or investing downtown.

Victoria Eye Center opened a downtown location on Constitution Street in July of 2004 to cater to people who work downtown or live in the south side of the city, said Kale Bowen, marketing director for the firm.

The idea behind opening the office was to cater to a lunch-break crowd for annual eye exams or other optical needs, she said.

But before that goal could be realized, the eye center invested in remodeling the interior and exterior of the building, redoing electrical and plumbing systems, and removing asbestos.

The office is open two days a week, Monday and Wednesday, and sees about 30 patients each day, Bowen said.

Other downtown professionals have decided to reinvest in the aesthetics of the region by purchasing and improving older buildings.

For example, Victoria attorney Jerome Brown invested thousands of dollars in improving the appearance of his new office building at the corner of Santa Rosa and Main Street.

Once home to the Iroquois Club social organization, the third floor was heavily renovated in the 1980s to serve as the offices for a local oil entrepreneur. Among other aesthetic changes, Brown removed much of the carpet from that renovation to return the building to hardwood floors, and changed the appearance of stucco walls out front to imitate a stonemason finish.

After finishing the work in October, Brown recommended similar downtown ventures to others.

Many of the buildings downtown are structurally sound and can be easily renovated, he said. They can also often be bought at very reasonable prices, he said.

Recently, some new retail has returned to downtown.

The new business in the old district sells antiques. Opera House Antiques and Gifts opened April 1, 2004, under the ownership of Ann and Randall Morich.

"We just fell in love with the building, the architecture, and just thought it was the perfect building to put an antique store in," Ann Morich said.

However, being one of the only retail locations downtown hasn't been easy, she said.

The very lack of other retail stores makes it difficult to operate a retail store downtown, since few people come to the area to shop, she said.

While she would like to see other retailers come downtown, she said one unique challenge will come from so many potential storefronts being filled by professionals like lawyers.

The Moriches acquired their location when longtime downtown retailer The Bible Book Store moved to a new location on North Navarro.

At least one other antique dealer will return to the scene soon, Filley said. After months of sporadic openings, the family's antique store will open again for patrols roaming the downtown area.

Filley is putting the finishing touches on some light renovations and a mural on the side of the building that will highlight scenes from old downtown Victoria. The renovations will come just about in time for the business's 100th anniversary.

In recent years the motivation for investment in downtown has grown, Chamber President Hunt said. As more entrepreneurs invest downtown, more people see it as less of a risk and are willing to follow suit.

The recent additions to the downtown landscape, be they restaurants or renovated professional offices, could mean new attention for the city's oldest business district, she said. But only time will tell if the legacy of a downtown beyond just professional office space will live happily ever after.

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Strong sales tax returns are expected to continue

January 23rd, 2005 . Thomas Doyle, Victoria Advocate Business Reporter

By the numbers, 2004 was a year of recovery for Victoria County's economy, and 2005 is off to a good start.

Shoppers in Victoria appeared to be spending more money, indicating a greater faith in the economy, at least according to sales tax returns.

Both the city and county of Victoria finished 2004 with more sales tax revenue than expected.

The City of Victoria finished the year with better than $1 million in sales tax revenue compared to 2003, about a 7.1 percent increase; while the county ended the year up $625,000, or about a 12.7 percent increase.

For both governments, 2003 was a bad year for sales tax returns, according to officials.

But 2004 represented the first year ever the county actually brought in more than $5 million in sales tax returns, according to County Judge Don Pozzi. With the exception of 2004, the county always budgeted that figure but never received it.

In late 2004 when monthly sales tax returns began to show flat growth over the same month the previous year, or even slight losses, Victoria Chamber of Commerce President Phyllis Hunt theorized that perhaps the economy had recovered, and thus only small changes were to be expected in the future, barring the arrival of some new employer or national merchant in the area.

But when the first sales tax returns came in January, both the county and city officials reported strong increases over the previous year. City returns were up 6.7 percent in January over the same month in 2004, while county returns were up 5.17 percent.

Even larger returns are expected in February when both governments will get back tax revenues on goods sold in December, said Assistant City Finance Director Andrew Jacob.

In terms of the job market, the numbers gave forth more good news.

The December unemployment rate for the Victoria Metropolitan Statistical Area hit its lowest level since October of 2001, according to Clayton Griffis, a labor market analyst with the Texas Workforce Commission in Austin. A small decrease is always expected for December as retailers hire seasonal help, he noted.

In addition, the Victoria County economy ranked third for the most jobs created from December of 2003 to December of 2004, trailing only behind Laredo and San Angelo, and tying with the McAllen/Edinburgh/Mission.

The University of Houston-Victoria Small Business Development Center reported more jobs were created by clients in fiscal year 2004, which started in October of 2003, than in any other year. SBDC clients created 106 new jobs and retained 144 jobs.

However, Laura Sanders with the Texas Workforce Solutions of the Golden Crescent continued to voice concerns that the problem in Victoria isn't so much unemployment as it is underemployment.

The buying power of jobs lost in 2004 hasn't been replaced by the new jobs created, she said. As an example she pointed to the Invista Victoria plant, which announced in July it was eliminating about 20 percent of its workforce, or an estimated 226 to 236 employees.

Even so, more people are building new houses in Victoria than in 2003.

From November of 2003 to November of 2004, the number of building permits issued for single-family dwellings increased 24 percent, said Ali Anari, research economist with the Real Estate Center at Texas A&M University. Building permits are a leading economic indicator, and show people have future faith in the economy.

The recent economic news has created a positive buzz in the business community, Hunt said.

"The stars are aligned for Victoria right now," she said, adding that many people probably don't realize what may be about to happen to the Victoria economy.

Commercial real estate agents said they've been receiving a marked increase in inquiries from outside developers for several months. Officials in the city planning department reported a similar increase in interest.

In conversations about town, many close to the commercial development process have said that in a few years some parts of the city will be unrecognizable because of the spurt of growth, namely along Loop 463.

If the growth comes, it isn't by accident, Hunt said. Many people have been working behind the scenes for several years, and those labors appear to be about to bare significant fruit, she said.

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UHV's small business center had a very good year

January 21st, 2005. Thomas Doyle, Victoria Advocate Business Reporter

The University of Houston-Victoria Small Business Development Center had its best year ever in 2004 in terms of the number of jobs created by its clients.

"It shows that Victoria is growing and there's been a real upswing in the economy," said UHV SBDC Director Carole Parks.

The UHV branch, which serves 11 counties, helped create 106 new jobs, and retain 144 jobs by helping existing businesses, Parks said. The numbers covered fiscal year 2004, which started in October of 2003, she said. In that same time period, the agency helped start 10 companies, about what it has done each year for the last four years.

By comparison, in fiscal year 2003 the SBDC helped nine new businesses start, helped create 30 new jobs, and retain 71 jobs.

The UHV branch serves Aransas, Bee, DeWitt, Goliad, Gonzales, Jackson, Lavaca, Refugio, Victoria, Karnes and Calhoun counties.

Parks presented the data Thursday as part of the quarterly regional meeting of the South-West Texas Border SBDC Region at The Victoria College. The meeting in Victoria was the first in almost 10 years. About 30 SBDC directors and people associated with the SBDC program attended.

The agency doesn't track the pay scale of the jobs created, but Parks said they range from hourly retail employees to management positions.

"We've also become much more aggressive in trying to capture these numbers," Parks acknowledged. About four years ago, collecting such data changed from being a matter of internal review to part of required external reporting, she said.

In terms of helping businesses access capital to open or expand, fiscal year 2004 was actually down from fiscal year 2003, Parks said. In both 2003 and 2004 the agency helped with about $3.9 million in loans. The agency's best year came in fiscal year 2000 when the SBDC helped secure $6.4 million.

The UHV SBDC's numbers are subjected to an external audit by an official from the Small Business Administration, which funds half of the program, with the other half coming from the State of Texas through the academic institutions that host the various SBDCs.

Pam Sapia, regional supervisor for economic development with the Small Business Administration, said the Victoria SBDC performs comparably to, and in some cases exceeds, other such agencies in the 79-county South-West Texas Border SBDC Region, which stretches from El Paso to west of Houston, and as far north as San Angelo and Austin.

The area encompasses 41 percent of the geography and 25 percent of the state's population, said Mary Peters, associate director of the region. In terms of both population and geography, the region served is larger than many other states.

SBDC directors from across that area gather quarterly in different locations to compare operating techniques and challenges, Peters said. Annually, SBDCs deal with rising costs but no additional budgets, so in order to continue to function their only option is to improve efficiency, she said.

At such meetings each field office in the region presents a report on challenges faced and accomplishments achieved so practices that have worked elsewhere can be spread across the region, she said.

In Victoria, the biggest operational challenge comes from an increasing demand for services, but no additional funding to provide those services, Parks said.

On a practical level, more people want business advising services, but the local center can't afford to create any additional counseling positions.

One way the Victoria office is adapting is by offering business start-up seminars that help six or seven people, rather than providing the same information separately in individual counseling sessions, Parks said.

Counselors are also being more judicious in trips out into the surrounding region, she said. At least two or three clients must be scheduled in a day before a counselor will make the trip, she said.

This year the center is also working with the University of Houston-Victoria School of Business to make use of student interns who will help in counseling clients.

The regional directors' meeting continues until about noon today.

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Trading with Cuba

January 16th, 2005, Joe Janak, Victoria Advocate

Did you know that we now import as many ag commodities as we export? The United States used to be the ag producer of the world and still is and still exports more than any other country. But recently exports have diminished and imports have increased. It was just announced a few days ago that the U.S. now has a $600 billion total trade deficit. While we can't change the whole nation, Victoria agricultural and community leaders met recently to try to do something about trading with our neighbors in Cuba.

Cuba is not a big piece of the worldly trading pie, but if things change for the better in Cuba, we could be in direct line to do major trading with that country. And with our close proximity and area ports, the possibilities increase even more. Within the last three years trading restrictions have been eased and while there are still many hurdles to jump, we need to be prepared to make a sale if we can.

So as a result, our local leaders have planned a "Doing Business with Cuba" seminar, which will be held from 8 a.m. to 1:30 p.m. Feb. 11 at the University Center Multi-Purpose Room, 307 N. Ben Wilson, University of Houston-Victoria Campus.

Via telephone, Dagoberto Rodriguez, chief of the Cuban interests section of Washington, D.C., will talk about Cuba as the expanding agriculture export market. Parr Rosson, professor and extension economist, Texas A&M University in College Station, will talk about the Cuban market for food and agricultural products. Cliff Paredes, director of the University of Texas-San Antonio International Trade Center, will speak on international trade opportunities. Cynthia Thomas, president of the Texas Cuba Trade Alliance out of Dallas, will talk about how to conduct trade with Cuba and get paid, and Howard Hawthorne, executive director of the Port of Victoria, will talk about port facilities and requirements.

Trade opportunities expressed by Cuba trading participants will be given on several different topics, including livestock - Alfredo and Josefina Muskus of Santa Elena Ranch, Madisonville (they are currently trying to trade breeding cattle); crop commodities - Vic Cannon, vice president - marketing, Texana Rice, Inc. of Louise (recently traded rice to Cuba); and medical - Dr. Don Dugi, physician, Bohman Clinic in Cuero (has traded human wound care products).

A "getting-to-know-each-other" informal lunch will be followed by a question and answer panel. Pre-registration for the seminar will be $25 per person due by Feb. 7. Call the Victoria County Cooperative Extension office at 361-575-4581 or any of the following sponsors for a registration flyer or for more information.

Program sponsors are Texas Cooperative Extension; Victoria County Extension Beef, Range & Pasture Committee; Victoria County Extension Crops Committee; University of Houston - Victoria Small Business Development Center; Victoria Chamber of Commerce; Victoria County Farm Bureau; Independent Cattlemen's Association; South Texas Cotton & Grain Association; and the Port of Victoria.

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Victoria may get help doing business with Toyota suppliers

January 21st, 2005. Thomas Doyle, Victoria Advocate Business Reporter

The University of Houston-Victoria Small Business Development Center could get a full-time counselor to help firms in its 11-county region do business with companies that supply the new Toyota Plant in San Antonio if a special funding request is approved by the state Legislature.

The South-West Texas Border SBDC Region has added $500,000 to its budget request from the state Legislature for expansion of an educational program piloted in San Antonio into all 79 counties in the region, Robert McKinley, regional director, said Thursday.

McKinley discussed the request along with other legislative issues facing the SBDCs in the region and their clients in the next legislative season while in Victoria for the region's quarterly SBDC directors meeting.

If fully funded, the measure would place a full-time counselor at each of the 10 field offices in the region, including Victoria, said Carole Parks, director of the UHV SBDC.

While the new counselor would mainly focus on educating clients to do business with companies who supply to Toyota, they could also help deal with clients in other capacities, she said.

The educational program would have three elements, McKinley said, all of which have been field-tested in San Antonio.

The first would teach the basics of contracting with a major company, while the second would cover contract marketing and teach firms how to sell themselves to Toyota, a supplier, or some other automaker and their respective subcontractors, he said.

The third module, called Lean Manufacturing Certification, would teach businesses to create the streamlined operations Toyota demands of its contractors and subcontractors. The Toyota production system drives waste and expense out with a vengeance, McKinley said.

The Legislature will consider the request along with the regular budget, he said. If approved, new counselors could be hired as early as September.

Another major legislative concern is the issue of education and its funding, he said.

In the next session the Texas Legislature will largely have to restructure the way taxes are collected, he said, which likely will include broadening the number of companies that pay the state franchise tax. Under the present system too many companies are not paying, he said.

The big debate, McKinley predicted, will be how to balance between a franchise tax based on the number of employees and one based on company assets.

A heavy focus on the former would disproportionately fall upon such labor-intensive industries as retail, while a heavy dependence upon the latter would hurt machine-intensive businesses such as oil refineries, he said.

But whatever changes are made, funding for education and educational attainment levels must be increased for the future of the state, he said. Current demographic extrapolations show a state in which there won't be enough college educated labor to fill jobs in the state, he said. In that market, industry will go where they can find an educated workforce, he said

Finding good employees to fill positions has become the top concern for many companies, even tying with a concern about access to capital in some surveys, McKinley said.

Finally, with deficit spending, the SBA is concerned its own funding may be cut. The SBDC system is predominately funded half by the state and half by the federal government. In the area served by McKinley's region, both governments collectively spent $3.4 million in fiscal year 2004, and created an additional $29.4 million in new tax revenue, he said.

"We are part of the solution, not the problem," he said, adding he thought it would be a mistake to cut funding to the agency.

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Victoria may get Chuck E. Cheese store

January 6th, 2005. Thomas Doyle, Victoria Advocate Business Reporter

The owners of the Chuck E. Cheese chain of pizza restaurants want to open a restaurant in Victoria Mall by midsummer, a company official confirmed Wednesday.

Irving-based CEC Entertainment has signed a letter of intent with the mall and is now examining the feasibility of opening a Victoria location, said Roger Cardinale, executive vice president of development.

A final determination should be made within the next four to six weeks, he said, adding that initial assessments looked good.

Cardinale noted he wasn't sure exactly where in the mall the restaurant would be located, nor exactly how much space it would occupy.

The owners of the mall declined to comment on any pending deal. "The company is unable to discuss prospective deals until such time as the prospective tenant formally grants permission," said Ky Widener, vice president for management and marketing with Augusta, Ga.-based Hull Storey Retail Group.

After covering most of the major national markets, Chuck E. Cheese began moving into what Cardinale described as secondary markets. The chain has already opened stores in Waco, Killeen, and College Station, among other cities.

Demographically, Victoria made sense as a candidate for the smaller market format, he said.

The smaller locations usually fill 8,000 square feet, while the major market stores usually fill anywhere from 10,000 to 12,000 square feet.

The smaller stores typically employ from 40 to 80 people, depending on customer demand, he said. About 30 percent of those positions are full time, Cardinale said.

The chain markets to children ages 2 through 12 years, he said. Aside from pizza, the restaurant includes a robotic Chuck E. Cheese character, video shows with other original characters, and a blue screen that allows children to dance and appear on screen, he said. The store also has video games and indoor playground equipment for children.

For safety reasons, the restaurant will only have one public entrance/exit, which opens to the mall parking lot, Cardinale said.

Safety is a chief concern for parents of children in the chain's primary demographic, he said. For that reason, parents and children are checked into the establishment together, and hand stamps are used to ensure children only leave with the proper adults.

Locations are open seven days a week, from 9 a.m. to 10 a.m. Sunday through Thursday, and from 9 a.m. to 11 p.m. on Friday and Saturday, he said.

Similar restaurant concepts have proven successful in Victoria in the past, said Carole Parks, director of the University of Houston Victoria Small Business Development Center.

With the recent closure of the Mr. Gatti's franchise in Victoria, a Chuck E. Cheese restaurant could certainly fill that void left in the market, she said.

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REGIONAL WORK FORCE GROUPS GIVEN AWARDS

December 12, 2004, Page: 2, Thomas Doyle, Advocate Staff

The Texas Workforce Solutions of the Golden Crescent honored several community organizations and companies that had assisted the agency in its mission over the last year during its fourth annual banquet Thursday night. Topping the list of honorees was 76 Seadrift Coke, who was presented with the 2004 Employer of Excellence Award.

The company worked closely with the Workforce Solutions agency when it shut down its plant prior to a sale, said Laura Sanders, director of workforce administration. It worked to get unemployment benefits and job-hunting assistance to former employees, she said. The new owners of the plant also worked closely with the agency to re-staff the plant after the sale, Sanders said.

Companies or entities that donated funds or services that allowed the workforce centers to provide services beyond just their state allocated funding were honored with the 2004 Partner of the Year Award, Sanders said.

Winners were the Alice Kleberg Reynolds Foundation, Dow Chemical Co. Foundation, First Victoria National Bank, H-E-B in Cuero, the Junior League of Victoria, The Victoria College, Victoria County United Way and Wal-Mart in Cuero.

Entities that cosponsored events with the workforce centers that were beneficial to employers in the area received the Service to Community Award.

Honored were the Gulf Bend Mental Health Mental Retardation Center, The Victoria College, Texas Department of Assistive and Rehabilitative Services Division of Blind Services, and the TDARS Division of Rehabilitation Services.

Agencies and entities that sponsored or participated in the 2004 Regional Economic Development Conference were honored with the 2004 Service to Business Award, Sanders said.

Winners were Calhoun County Economic Development Corp., Cuero Chamber of Commerce, Cuero Development Corp., Golden Crescent Regional Planning Commission, Gonzales Chamber of Commerce, University of Houston-Victoria Small Business Development Center, Victoria Chamber of Commerce, Victoria Economic Development Corp., Yoakum Chamber of Commerce, City of Yoakum, AEP Texas, Guadalupe-Blanco River Authority, Guadalupe Valley Electric Cooperative, Lavaca-Navidad River Authority, Lower Colorado River Authority, SBC, San Antonio River Authority, TXU Energy, The Victoria College, and the University of Houston-Victoria.

The 2004 Industry Sector Award was presented to companies that participated in or helped create a new interactive video-based instructional program designed for use in the food industry, Sanders said. The program is being tested in the region serviced by the Golden Crescent workforce centers, and will probably be expanded to the entire state, she said.

Winners were Adam's Extract & Spices, Alchemy Training Systems, Buddy's Natural Chicken, Holmes Foods, J Bar B Foods, Kent Foods, Kitchen Pride Mushroom Farm, Southwest Meat Foundation, and the Yoakum Packing Co.

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UHV IS NOW ACCEPTING APPLICATIONS FOR INTERNSHIPS

November 16, 2004, Page: 2, Advocate Staff Report

The University of Houston-Victoria's School of Business Administration is now accepting applications for a spring 2005 internship. One UHV Bachelor of Business Administration student will be offered the opportunity to work with the UHV Small Business Development Center in Victoria for credit toward his or her degree.

Internships are intended to provide students with on-the-job experience.
Any BBA student concentrating in accounting, general business, management or marketing is eligible to apply for the internship position. To be considered, interested students should submit their résumés to Dr. David Summers, faculty supervisor of the internship. A letter explaining the student's interest in the SBDC field of study should be included.

Letters and resumes may be e-mailed to summersd@uhv.edu, faxed to 361-570-4229 or mailed to Dr. David Summers, University of Houston-Victoria, School of Business Administration, 3007 N. Ben Wilson, Victoria, Texas 77901. For more information, call 361-570-4892.

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SMALL BUSINESSES INVESTIGATE COMPUTER PROTECTION

November 5, 2004, Page: 1, Thomas Doyle, Victoria Advocate

Small businesses must be concerned with computer security just like major corporations. That was the message Rose Noto, project manager for Microsoft's eSecurity tour, brought to Victoria on Thursday at a tour stop at 700 N. Main St. in Victoria.

Entrepreneurs are often too busy running their businesses to give much thought to protecting their computers from outside hackers, viruses or other threats, she said. Many small businesses don't have technology departments that can protect them from intrusion or other security threats, she said
So now more and more small businesses are targets of computer attacks, both the malicious and the mischievous, she said.

Computer security issues involve everything from such annoyances as spam clogging e-mail boxes and adware that slows down systems, to hackers trying to steal valuable customer data or viruses and worms that can destroy entire computer systems, she said.

About 90 percent of companies make use of personal computers, Noto said. Typically, business owners and operators are surprised how vulnerable they are, especially now that technology is expanding so rapidly, she said.
The same Internet that can bring customers and convenience can also import threats from across the world, she said.

"Victoria does have to worry about people in Asia," she said as an example.
Hackers, viruses and other malicious attacks can come from almost anywhere, she said. For example, hackers can intrude into a system and steal valuable information, including credit card numbers and personal data for customers.

In Victoria, clients of the University of Houston Small Business Development Center divide fairly evenly between the technologically savvy, and those with no technology experience who can even be afraid of such technology, said Carole Parks, director of the SBDC.

While not in the computer education or computer security field, the SBDC often has to do some technology evaluation as part of a standard management audit, she said.

Today, businesses must embrace the timesaving tools computer technology provides to stay in business, but that same technology can put a company out of business if it isn't protected, Parks said.

More than one firm has called the SBDC with horror stories of an entire computer system with all its customer and billing records wiped out by a virus or worm.

To help prevent such a business disaster, Noto listed several steps businesses should consider to protect their computer infrastructure.
Desktop and laptop computers should be individually protected, not just the computer network, she said.

That protection includes making sure software is up-to-date. Older software may have holes that can be exploited by a hacker or malicious computer program, Noto said.

Individual systems should also have their own firewalls, be they of the hardware or software type, she said. An up-to-date virus scanner is also essential, Noto said.

While some businesses may question the high price for the software, it is essential, Parks said. Viruses have wiped out entire computer systems at businesses in the region, she said. Insufficient virus protection is the top e-security mistake most businesses make, she said.

Following a close second is a failure to properly back up data, she said.
Data needs to be protected by a regular backup regime, and those backups need to be tested, Noto said. That data should then be kept off site in event of a disaster, she said.

Companies should also set user restrictions so not every user can see all their data, Noto said. Unlimited access allows lower-level employees to potentially wreck havoc upon a company. One disgruntled employee can cause an entire business a world of heartache, she said.

Businesses should remember that security violations come from the inside as well as the outside, Noto added.

Systems should also be protected with strong passwords, not names of pets, children or a nickname. A good password should contain both letters and numbers, and should be changed periodically. 90 days is OK, but every 42 days is even better, she said.

The Internet should also be used safely, she said. Unscrupulous Web sites can be dangerous to a computer. Companies should establish written policies concerning proper usage, she said.

The actual server for a business' network itself should only be used for business critical purposes, not surfing the Internet, she said.

Critical systems like servers should also be physically secured, so people just walking through an office can't start pressing buttons, Noto said.

Finally, when people log into a wireless network, they should also be aware that a less-than-reputable network can snatch their data, she said.

Noto ended by encouraging all business owners and operators to take her visit as a call to action and take a serious look at their computer security situation.
Noto's visit was part of the Microsoft Across America tour. The Victoria Chamber of Commerce and the SBDC organized the Victoria stop.

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MICROSOFT'S CROSS-COUNTRY TOUR WILL STOP IN VICTORIA ON THURSDAY

November 2, 2004, Victoria Advocate

The Microsoft Across America tour will stop in Victoria at 9 a.m. Thursday at the 700 N. Main Street parking lot.

Microsoft will bring its mobile solutions center, a 27-foot vehicle outfitted with business technology products.

The stop isn't a sales stop, but instead an effort to help educate small businesses about threats to their computing infrastructure, said Carole Parks, director of the University of Houston Small Business Development Center, one of the event's sponsors. Small businesses are often the least aware of computer security threats, but often the most preyed upon, she said.

As part of the stop, Microsoft will conduct a brief presentation on the eSecurity issues facing businesses today in room 204 at 700 N. Main St., and then demonstrate new business computer security technology inside the vehicle.

All attendees will receive a free copy of "eSecurity Guide for Small Business," a book by Microsoft, computer security company Symantec, and the Association of Small Business Development Centers.

Free coffee will be provided by the Coffee Beanery, a new franchise in Victoria. Door prizes including free software will also be awarded.

The event is free to the public, but those planning to attend are asked to reserve a seat by calling the Victoria Chamber of Commerce at 361-573-5277 or the SBDC at 575-8944

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SMALL BUSINESSES MAKE BIG IMPACT: Enterprises with 250 workers or less employ greatest percentage of workforce in Victoria

October 31, 2004.  THOMAS DOYLE.  Victoria Advocate Business Reporter

The job market in Victoria is dependent not so much on major employers as it is on small to medium enterprises.

Of the estimated 35,974 workers in Victoria County in March of 2004, a full 68.5 percent worked for companies employing less than 250 people, according to numbers released this week by the Texas Workforce Commission in Austin.

Firms with 20 to 49 employees, and those with 100 to 250 employed the greatest percentage of the workforce, both at 15.9 percent. The numbers were calculated using the total number of firms that pay unemployment insurance, and how many accounts upon which they pay.

As of September, the economy has about 1,000 more than in September of 2003, according to TWC numbers.

Most of those jobs were created by small to medium-sized businesses, opined Carole Parks, director of the University of Houston Victoria Small Business Development Center.

In fact, the reason the local economy has survived the staffing cuts at area petrochemical plants was because of the strength of the small business community, said Phyllis Hunt, president of the Victoria Chamber of Commerce.
"(Small Business) is the base of our economy," Hunt said.

One reason is simply because Victoria has a rural economy, and there just aren't as many big enterprises located here, Parks said.

The percentage of the total jobs at small businesses employing less than 250 people is comparable to numbers in other towns the size of Victoria. For example, 67 percent of Texarkana's 39,200 jobs are at firms with fewer than 250 employees, and about 69 percent of Abilene's 53,900 jobs are at such firms.

Another possible reason is because cutbacks at area chemical plans have driven many people to start their own businesses, Parks surmised.

In a rural economy people who lose a primary job - a high paying position that supports other jobs in the local economy - usually either start their own business or leave the area, she said, noting the Victoria economy hasn't seen any large exodus of workers.

Even those who don't lose their jobs often start thinking about getting out before they get hit with the next round of layoffs, she said.

The Small Business Development Center has also seen heavy interest in its weekly workshops on how to start a business, she said.

Since the agency began offering the workshops on a weekly basis this summer, attendance has averaged from seven to 10 people at every event, she said.

About 18 months ago, it was not unusual for the then-monthly classes to be canceled because of a lack of interest, she said.

Many of the new jobs the Texas Workforce Solutions of the Golden Crescent has recently filled have been with small- to medium-sized companies, said Carole Kolle, workforce center director with the agency.

However, many of the firms creating those new jobs are in the services sector, which tends to pay lower wages than other types of jobs, Kolle noted. The service sector includes restaurant and retail workers, she said.

The problem across the entire Golden Crescent Workforce Development Area - Calhoun, DeWitt, Goliad, Gonzales, Jackson, Lavaca and Victoria counties - isn't unemployment so much as it is underemployment, she said.

In the fourth quarter of 2003, the average weekly salary in the Golden Crescent region was $593.63, compared to $753.81 for the entire state, according to the Texas Workforce Commission.

Many people are often surprised to learn of the impact small- to medium-sized firms have on the American economy, Parks said.

It's only in the last few years that politicians and officials at all levels of government began acknowledging the economic contribution of small businesses, Parks said.

Even in major metropolitan statistical areas such as Houston and Dallas, businesses with fewer than 250 employees account for 45.8 percent and 47.9 percent of jobs, respectively.

In other MSAs such employers play a larger role. For instance, in Amarillo about 60 percent of jobs are at such firms, while in the Austin-San Marcos MSA about 50 percent of jobs are at such enterprises.

The Victoria area economy is projected to grow in near future, Hunt said, much of which will come in the form of small businesses.

With that growth will come new and different opportunities for entrepreneurs and employees alike, Hunt said.

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VICTORIA WILL BE MICROSOFT TECH TOUR STOP

October 23, 2004. THOMAS DOYLE.  Victoria Advocate Business Reporter

Microsoft Corp. has selected Victoria as one of the stops for the computer company's Microsoft Across America traveling technology tour.

The company's 27-foot vehicle with computer equipment and electronic displays will stop in the city at 9 a.m. on Thursday, Nov. 4, at 700 N Main.

"The whole focus of this campaign this year from Microsoft is to educate small businesses on computer security issues," said Carole Parks, director of the University of Houston Small Business Development Center, which is sponsoring the stop along with the Victoria Chamber of Commerce. Small businesses are often the hardest hit by computer crimes, and are the least knowledgeable in how to prevent such attacks, she said.

During the visit, Microsoft will provide a brief seminar on business computer security issues, and then provide live demonstrations on how businesses can benefit from the latest computer security technology, according to a news release on the event.

All attendees will also receive a book," eSecurity Guide for Small Business," produced by the Association of Small Business Development Centers, Microsoft, and computer security company Symantec.

The stop is an educational trip, not a sales trip, Parks said, and that is why the SBDC worked to bring the tour to Victoria. Victoria and Huntsville are the only two rural stops in Texas, she added.

The quest for the Microsoft stop came during the National Small Business Development Center conference in September, Parks said.

Several companies had booths set up showcasing their latest wares.

"(SBDC business development specialist) Heather Day and I went and talked to the vice president of Microsoft and pointed out to him he'd have a better chance of publicity and attendance if he would take it to rural America," Parks said.

The company official didn't even know where Victoria was until he looked it up on some of the company's software. But Parks and Day kept extolling the virtues of stopping in this city.

"I think the bottom line is he just got tired of us talking to him, and we didn't go away until he said 'yes,'" Parks said. "It's called persistent salesmanship."

Victoria is also going to make the stop a major event, as opposed to a luncheon such a stop might warrant in a larger city, said Phyllis Hunt, president of the Victoria Chamber of Commerce.

By doing so, Microsoft now knows of the city of Victoria, she said, which is always a good thing.

The event will include free coffee provided by The Coffee Beanery, a new coffee establishment in Victoria, Hunt said. The two organizations will also provide additional refreshments, she said.

There will also be a drawing for high-tech and low-tech prizes, Parks said. There is no charge to attend the event, but people are asked to call and reserve a seat by 5 p.m. on Nov. 3.

For more information or to reserve a slot for the event call the chamber at 361-573-5277 or the SBDC at 361-575-8944.

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SEMINAR AIMS TO HELP SMALL BUSINESSES LEARN TO BE STATE VENDORS

October 15, 2004, Victoria Advocate

Small business owners can learn how to do business with the Texas Department of Criminal Justice at a seminar scheduled today.

The event will be from 10 a.m. to noon in room 303 of the UHV Center, 3007 N. Ben Wilson. Registration starts at 9:45 a.m. and costs $10.

The state prison system represents a huge market for area small businesses since prisons buy everything a small city does, said Carole Parks, director of the University of Houston-Victoria Small Business Development Center, which is sponsoring the event with the Victoria Chamber of Commerce.

Sharon B. Shultz with the Texas Department of Criminal Justice in Huntsville will speak on how to become a state vendor and do business with the TDCJ, Parks said.

Also on hand answering questions about doing business with the federal government will be Sean Smith with the Procurement Technical Assistance Program in Corpus Christi, a part of the SBDC network.

For more information, call the SBDC at 361-575-8944 or the Victoria Chamber of Commerce at 361-573-5277.

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INDIVIDUAL BUSINESS GRANTS DON'T EXIST, DESPITE RUMORS

September 26, 2004. THOMAS DOYLE.  Victoria Advocate Business Reporter

Despite beliefs to the contrary, the government doesn't give individuals grants to start businesses. "I'd love there to be grants to start a business," said Mike Samford, associate director with the University of Houston-Victoria Small Business Development Center. "Heck, I have a few business ideas of my own I'd pursue if someone would give me free money to do it."

But after years of helping people start businesses, Samford said he simply hasn't found any such grants provided by the federal government.

"The rumors just spread. People want there to be one," he explained. Someone calls the center every day asking about a grant to start a business, Samford said.

A likely source for the belief are books and seminars that advertise money for businesses along with promises of free money for education or child care, he said.

While some such books and seminars may contain information on educational scholarships and other grants, in terms of business most just direct the reader or attendee to their nearest SBDC, Samford said.

Some services will promise to help someone find a grant for several hundred dollars, he said. A potential entrepreneur can spend more than $1,000 dollars trying to find such a grant.

The closest thing the government offers to a grant to start a business are loan guarantees through the Small Business Administration, said Ana Maria Rush, regional communications director for the SBA.

The federal agency will guarantee up to 85 percent of a loan under $150,000, and 75 percent of a loan over $150,000. However, the actual loans are made by individual banks, and a customer must be able to meet a bank's lending criteria.

In addition, loan applicants must provide paperwork including a business plan, financial statements, and other personal data, she said.

Many of the people who call asking about grants have previously been turned down for a loan and are pursuing other options, Samford said.

People interested in starting a business would be better advised to visit a bank or their local SBDC rather than spend money on a book or seminar, Rush said.

Aspiring entrepreneurs can also get free help in organizing their business by contacting the UHV SBDC at 361-575-8944.

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