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Weedy fields confront Iowa farmers as rains persist

4:21 pm in economy, business and finance by Dave DeWitte

Weeds are becoming a serious problem for Iowa crops because f frequent rainfalls prevent many farmers from working their fields.

The state received an average of 3.26 niches of rainfall last week, triple the annual average of 1.07 inches, the National Agricultural Statistical Service said in its weekly crop report.

The highest weekly rainfall was 10.62 inches at Rowan in Wright County.

The weather gave farmers 2 days suitable for field work compared to 1.6 days the previous week.

Some fields have area completely drowned out by standing water and sections turning yellow with stunted growth. Many crops planted on higher and well-drained soil, meanwhile, are thriving.

The earliest planted corn is just beginning to tassel. Six percent of the soybean crop has begun blooming, 3 percentage points ahead of last year, but 1 percentage point behind the five -year average.

The report found 18 percent of the oat crop has turned color, compared to 10 percent at this time last year, and a five-year average of 16 percent.

Crop conditions deteriorated slightly from the previous week.

The report listed 3 percent of the corn crop in very poor condition, compared to 2 percent the previous week. Six percent of the crop was in poor condition, up from 5 percent the previous week, and 19 percent of the crop was in fair condition, versus only 18 percent the prevous week.

The report said 3 percent of the soybean crop was in very poor condition, 7 percent was in poor condition, and 24 percent was in fair condition.

Fifty-one percent of the soybeans were in good condition. The remaining 18 percent were in excellent condition.

ImOn expanding territory, offering higher speed Internet service

3:37 pm in economy, business and finance by George C. Ford

ImOn Communications has begun offering higher speed Internet service to residential customers as it continues to expand its customer territory.

Steve Gray, ImOn Communications

The Cedar Rapids-based telecommunications firm’s Freedom Internet line is highlighted by Freedom 65, which offers download speeds of up to 65 megabits per second.

“I don’t know of any other residential Internet service provider in Iowa that’s offering speeds of 65 megabits per second,” said ImOn Chairman Steve Gray. “We’re able to offer Internet download speeds of 65, 25 and 15 megabits per second because of more efficient use of our network. We also are able to offer it consistently and with the quality that our customers have come to expect.”

Gray said ImOn has made significant capital investments in its network technology as it has expanded its service territory in Cedar Rapids and Marion.

“When we bought this business in March 2007, we passed about 45 percent of the homes in Cedar Rapids and Marion,” he said. “We are closing in on 60 percent of those homes, and with our plans for 2011 and beyond, we should be about two-thirds or 70 percent built out in Cedar Rapids and Marion in the next several years.”

Gray said the June 2008 flood set ImOn back between six months and a year.

“We lost several hundred customers and a lot of equipment,” he said. “While it was bad for us, it was certainly a lot worse for the people who lived in the homes that were destroyed by the flood.

“We had to go back to the drawing board and determine just how aggressively we were going to build out and where. We’re a little hesitant to start removing lines and equipment from poles until the city determines what’s going to happen in those areas.”

Gray said ImOn has migrated all of its billing, customer service and dispatch operations  from facilities owned by Paetec (formerly McLeodUSA) to it own employees and facilities.

“Since we bought the business, we’ve grown our customer base by a little over 26 percent,” he said. “We’ve increased our revenue generating units (cable TV, phone and Internet) by over 40 percent.

“Our revenues have increased by about 70 percent and our earnings by 200 percent. By the end of this year, we will have doubled our employment.”

Gray said ImOn is adding 10 new high-definition channels to its cable TV offering, bringing its total HD channel count to 37. He said ImOn plans to add another eight HD channels by the end of this year and more in 2011.

“With the proliferation of flat screen plasma, LCD, LED and 3-D televisions, our customers are asking for more high-definition channels,” Gray said. “I think we’re moving to an all digital network that will still offer analog channels, but will primarily supply HD programming.

“We have surveyed our customers about what they want and built our core lineup around those results.”

Gray said ImOn will continue to invest in network enhancements and facilities to position itself to better serve customers’ future needs.

Investor urges Casey’s to talk with Couche-Tard

12:03 pm in economy, business and finance by Dave DeWitte

A New York investments firm with a sizable stake in Casey’s General Stores is urging the Ankeny-based convenience store chain to hold talks with the company trying to acquire it.

ClearBridge Advisors said in a letter written Monday, June 28, that Casey’s owes it to shareholders to find out if Alimentation Couche-Tard Inc. is willing to raise its $36-per-share offer.

“We agree that the offer does not adequately capture the full earnings power and potential of Casey’s when optimally capitalized,” the letter said. It said the offer doesn’t account for the revenue synergies and cost savings a combination of Casey’s and Couche-Tard would create.

Even so, ClearBridge said it is the fiduciary duty of Casey’s management and board to negotiate with Couche-Tard in good faith and act in the best interest of Casey’s shareholders.

Discussing Couche-Tard’s offer doesn’t restrict the Casey’s board of directors from rejecting Couche-Tard’s offer or acting on alternatives that might arise from negotiation, the letter said.

“Conversely, the (Casey’s) Board’s intransigence discourages a higher offer and could result in shareholder wealth destruction should the Couche-Tard offer be withdrawn or not accepted by shareholders,” said the letter from Brian Angerame, Derek Deutsch, Aram Green, Peter Hable and Jeffrey Russell of ClearBridge.

ClearBridge has 810,739 shares of Casey’s common stock out of about 50.9 million shares outstanding, and nearly 6 million shares reserved for issuance.

New C.R. airport director starts work

11:20 am in economy, business and finance by George C. Ford

Tim Bradshaw joined The Eastern Iowa Airport Monday as director, completing a transition that began with the February departure of Dan Mann.

Tim Bradshaw, airport director

Bradshaw, former deputy executive director and chief operating officer for the Louisville Regional Airport Authority in Louisville, Ky., will be paid a salary of $141,086. He also will receive a $500 monthly auto allowance and $50 for the use of his private cellular phone.

Bradshaw’s employment contract also provides up to $20,000 for relocation expenses. He will receive the same health insurance and flexible leave benefits as other non-bargaining unit employees of the airport.

Should Bradshaw is terminated by the Cedar Rapids Airport Commission for any reason other than his death, conviction of a felony, aggravated misdemeanor, or any public offense involving corruption, extortion, willful misconduct, maladministration in office, willful or habitual neglect, or refusal to perform the duties of office, he will receive six months salary as severance pay.

Bradshaw started his first day as airport director by participating in a monthly Cedar Rapids Airp0rt Commission meeting. The commissioners voted unanimously to approve his employment contract.

Commission Chairman Dan Thies thanked Donald Swanson, director of finance and administration, who served as interim airport director; Sara Mau, director of operations, and Pam Hinman, director of marketing, for assuming additional duties during the search for a new director.

PICTURE SAYS: Get Your Liquor Quicker (in C.R.)

7:39 pm in economy, business and finance by Christoph Trappe

Spotted this at the Guppy’s On The Go, 235 Edgewood Road NW, Cedar Rapids, around 6:15 p.m. on June 25, 2010.

Cell phone picture

I called there around 7:30 p.m. to find out how it’s quicker. (There was no answer.) I sent this link to the business’ general information e-mail, too, with the same question.


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Thousands to lose unemployment after bill fails

5:36 pm in economy, business and finance by Dave DeWitte

The failure of Democrat-backed bill that would have extended unemployment insurance benefits in the Senate Thursday, June 25, will cause 1,500-2,000 Iowans to begin losing all unemployment benefits each week.

Iowa Gov. Chet Culver voiced disappointment on Friday. He said the bill would also have extended the biodiesel tax credit and enhanced Federal Medicaid assistance Percentages funding, both of which are important to Iowa.

“This is not the time to turn our back on our farmers and other workers in the biodiesel industry, struggling families looking for work, children, the disabled and the elderly,” said Culver, a Democrat.

The extended unemployment benefits were part of the American Recovery and Reinvestment Act. They provided unemployed workers with an extra $25 weekly and provided extra weeks of eligibility for unemployment insurance recipients.

The Iowa Fiscal Partnership issued an analysis Friday that 6,700 Iowans will lose all benefits because they have exhausted state or federal unemployment insurance benefits. Another 37,300 will see a reduction in benefits. The group estimates ,500-2,000 Iowans will lose benefits each successive week.

The bill would have extended unemployment benefits until Dec. 31. Republicans said the measure was too expensive.

C.R. Terex workers approve one final contract

4:22 pm in economy, business and finance by Dave DeWitte

UPDATED JUNE 30 WITH NEWEST LAYOFF NUMBERS FROM TEREX CORP.

The union representing Terex Cedarapids employees ratified their final contract Thursday, June 24, as the plant heads toward an imminent closing.

Terex Corp. announced more than ten months ago in August 2009 that it planned to close the factory, which makes rock crushing and road paving equipment. At the time, the plant employed about 170 production workers and was scheduled to close in mid-2010.

The wind-down isn’t going as quickly as initially outlined, however.

About 53 union workers remain employed at Terex Cedarapids. Fourty-two of them were originally slated to be laid off in May, but will now end their employment on July 2, Machinsts Local 831 Directing Business Representative Joe Ironside said.

An amended plant closing notice filed by the company shows that the remaining 21 union members will continue working until April 1, 2011.

As of Wednesday, June 30, Terex said it expects to lay off 32 tem members effective July 2, spokesman Mike Bazinet said. He said 24 workers will remain until the end of March, 2011.

The new contract expiring June 27 is essentially the same as the last contract, Ironside said.

Connecticut-based Terex said it was closing the Cedar Rapids factory because of a drop in orders from the construction industry due to the recession.

Terex has indicated it will move the product lines it makes in Cedar Rapids to other Terex factories. It plans to maintain engineering sales and service functions in Cedar Rapids that employ about 50.

The Terex Cedarapids plant dates back to the founding of the business in 1923 as Iowa Manufacturing. It was acquired by Terex Corp. in 1999.

Bazinet said the work now done at the plant will be performed at a Terex facility in Oklahoma City.

Home Appliance, Jim’s Tune Up leave downtown C.R.

3:24 pm in economy, business and finance by Dave DeWitte

This row of buildings on the north side of the 700 block of 2nd Avenue SE is emptying out this month for future development, as the owners decline to renew leases. Two businesses have left downtown, while one will stay and a fourth will close. (photo by Dave DeWitte, SourceMedia Group News)

Businesses are bailing out of a downtown block that has been discussed as the possible site of a new downtown fire station because leases aren’t being renewed.

Home Appliance and Jim’s Tune-Up have moved not only out of the block but out of the downtown area due partly to the expiring leases.

Home Appliance moved this week to 550 Oakland Road NE, a building that once housed Hamilton Seed. The family-owned appliance business had long been located at 706 2nd Ave. SE, but its lease was set to expire at the end of the month and would not be renewed, a spokeswoman said.

Jim’s Tune Up Service moved over Memorial day weekend to an existing building at 1643 Edgewood Road SW. The family-owned automotive service business had been located at 121 8th St. SE for 28 years.

The relocation became necessary because a sprinkler system in a different part of the building was damaged by freezing during the winter and the landlord did not want to replace the system, according to Jeff Hamblin of the family-owned business.

Hamblin said the automotive repair shop is offering free shuttle service for downtown customers. He said business has been good at the new location.

D & L Auto Service, 702 2nd Ave. SE, is closing due to the retirement of owner Don Orris. He had operated an auto service business at the location since 1998.

Stained Glass Gallery is relocating in July to 600 2nd Ave. SE, according to a sign on the former NAPA Auto Parts building. It had been located at 702 2nd Ave. SE.

Iowa Workforce building to become part of Mercy

12:37 pm in economy, business and finance by Dave DeWitte

Mercy Medical Center will move much of its back-office operation into a building at 800 7th St. SE after it is vacated by Iowa Workforce Development later this year.

The medical center bought the building in 2008, when the state’s lease on it was set to expire. The building was needed to replace space in the Mercy Family Practice Center demolished in February 2009.

The state didn’t vacate the building at the end of the lease, however, requesting two lease extensions that end next month.

Mercy spokeswoman Karen Vander Sanden said the building will be renovated to house 55 Mercy employees in the billing, centralized scheduling, and finance operations of the medical center.

The employees are now housed in temporary modular buildings on the north side of the hospital, where they were relocated due to the the 2009 demolition of the Family Practice Center.

The modular buildings will be removed sometime after the relocation to the former Iowa workforce Development building, which is expected in December.

Iowa Workforce Development’s new home at Lindale Mall will be called an IowaWorks center. It will be staffed not only by Iowa Workforce Development employees, but by Kirkwood Community College employees who have been providing job-search skills training and related services at the Kirkwood Resource Center.

Iowa to get part of $173 million price fixing settlement

4:46 pm in economy, business and finance by Dave DeWitte

Iowa will benefit from a 33-state, $173-million antitrust settlement with six makers of computer chips, Attorney General Tom Miller announced Thursday, June 24.

Miller said the 33 states alleged that the companies illegally conspired to fix prices for dynamic random access memory (DRAM) chips, a common type of memory chip found in personal computers, laptop computers, printers, servers and network gear.

“We alleged the companies colluded to inflate prices,” Miller said. “Investigation indicated they held frequent meetings, made telephone calls, exchanged confidential information, and agreed to charge inflated prices for DRAM chips.” Billions of dollars of DRAM chips are sold each year.

Named in the lawsuit are the United States-based companies Micron Technology, Inc., and NEC Electronics America, Inc.; and the international companies Infineon Technologies A.G. in Germany; Hynix Semiconductor Inc. in South Korea; Elpida Memory Inc. in Japan; Mosel-Vitelic Corp. in Taiwan; and their U.S. subsidiaries.

 

Contact the Business Editorial Staff

Michael Chevy Castranova, business editor, 319-398-8469
Dave DeWitte, 319-398-8317
George C. Ford, 319-398-8366

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