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How much red meat can Baltimore take?

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Just in case eight downtown steakhouses wasn’t enough, one more is opening Friday.

OK, just to be fair, Prime Steakhouse is located a little more off the beaten path than the others. Sullivan’s Steakhouse, the two Ruth’s Chris Steak Houses, Flemings Prime Steak House & Wine Bar, Morton’s the Steakhouse and Shula’s Steak House are all within a half-mile of the Inner Harbor. Prime is set in Fells Point, a bit to the East of the bunch.

But my point is still the same — we must really love our steak in this town for someone to come in, look at the market and think, “You know what’s going to fill a need here? A steakhouse!”

The economy’s doing a little better. But it’s not doing THAT much better. And for an owner to try and open a high-end restaurant in direct competition with eight others (most of them chains) it’ll be a major uphill battle.

One thing going for Prime is while its menu is pretty standard (steaks, chops and a few seafood options), none of the entrees exceed $30.

(On a side note, the ownership of the new restaurant is in its own little battle, as The Sun’s Dining@Large blog pointed out Thursday.)

Do you think Prime Steakhouse stands a chance?

Category: Baltimore, Business, Economy, restaurants

Senator’s colorful language stirs environmental ire

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Environmentalists are livid over some remarks by state Sen. Richard Colburn, a Cambridge Republican. Now they’re calling for a formal and public apology.

It happened during a meeting on Feb. 15 between the Eastern Shore delegation and the secretaries of the departments of Agriculture and Environment, in which lawmakers complained that agency rules are slowing down or halting projects in their counties.

Sen. Colburn, one of those at the meeting, said he believes “river keepers,” environmentalists who watch over particular waterways, are dictating business on the Eastern Shore. He compared them to watermelons: “green on the outside and red or socialist on the inside.”

Members of the Waterkeeper Alliance are red-faced with anger.

“Characterizing any and every opposing group or elected official as unpatriotic or un-American is a political tactic and has no place in any form of reasonable discourse,” said Kathy Phillips of Assateague Coastkeeper, a Waterkeeper Alliance member. “We are hard-working Maryland residents, devoting our lives in many cases, to the protection of Maryland waterways from illegal and often toxic pollution. Our groups are comprised of concerned Americans who care very deeply about their country. Waterkeepers has more than a number of veterans working to restore clean waterways in our country. Senator Colburn is engaging here in a McCarthy-like slur and he owes us an apology.”

U.S. Marine Corps Colonel (Ret.) Richard Dove, registered Republican, and Neuse Riverkeeper Emeritus (April 1, 1993 through July 4, 2000) said: “This man [State Sen. Colburn] doesn’t know what he’s talking about. He doesn’t know me or any of my colleagues, that’s for sure. Having served two tours of duty in Vietnam, I take it personally when someone calls me a Red, a socialist. I understand that Sen. Colburn aligns himself with big agriculture and the commercial farms that keep him in office, but the fact that our goals are not aligned doesn’t give him the right to blindly tag our members as socialists, implying somehow that we are un-American.”

Jeff Kelble of Shenandoah Riverkeeper said his family has been in America since the 1600s, homesteaded the Shenandoah Valley in the 1700s, and fought in the Revolutionary War and the Civil War. “If anything, Riverkeepers are red-blooded Americans, not Red, socialists,” he said.

One wonders whether or not Sen. Colburn has a case of the “blues” over his remark.

Category: Annapolis, Eastern Shore, environment, government

“To My Friends at Google …”

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The growing push to convince search engine giant Google to build an ultra-fast broadband network in Baltimore has picked up a high-profile backer: Andres Alonso, CEO of the Baltimore City Public Schools.

And as befits such an endeavor, Alonso is smartly making his pitch via a high-tech platform, in this case a slickly produced piece of Web video uploaded to YouTube and Vimeo. In the 1:51 clip, Alonso, seated in his office, makes a direct appeal to Google to help boost the pace of academic improvement in city schools.

In too many cases, he says, “home access to the Internet is a costly luxury that is financially out of reach for hardworking parents.”

YouTube Preview Image

Damian “Chip” Dizard of Absolute Presence, a Baltimore Web design and multimedia firm, shot and edited the video.

Baltimore is just one city hoping to be a test market for the high-profile project, which Google unveiled Feb. 10. The Mountain View, Calif.-based company is asking for a request for information, or RFI, to identify government organizations and other groups that would be a good fit for the trial. Its application deadline is March 26.

The network is expected to deliver Internet speeds on fiber-optic cables more than 100 times faster than the Web access enjoyed by most Americans, but Google yet to release other details, such as the cost to build the network and what it would charge customers.

What started as a grassroots push among local techies appears to now be spreading to Baltimore’s public sector, which organizers say will be critical to earning Google’s nod.

Category: Education, technology

Brookfield brings GGP flowers, GGP says “I do.”

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Towson Commons

Officials from General Growth Properties, the nation’s second-largest mall-owner and the bankrupt and debt-ridden company behind 10 Baltimore-region shopping centers, won’t give the time of day to its most persistent suitor, Simon Properties Group. Turns out that’s because GGP has been creepin’ behind Simon’s back — with Canadian investment firm Brookfield Asset Management Inc.

GGP sent out a statement this afternoon saying it had reached an agreement “in principle” to sell Brookfield a $2.625 billion equity stake in the company and pay off the interest GGP owes to its unsecured creditors, an extremely important part of GGP’s plan to emerge from the Chapter 11 bankruptcy protection it filed in April.

The plan, which GGP is calling a “recapitalization,” is somewhat convoluted — GGP’s shares will be valued at $15, but each one will be split into two separate offerings, one a $10 share of GGP common stock, and the other a $5 share of “General Growth Opportunity” stock. Full details of the deal are here.

What will this mean for White Marsh Mall, Harborplace & The Gallery, and the eight other GGP retail properties that dot Maryland? Probably a less-sure thing than if Simon had bought the company outright. Simon is the nation’s largest mall-owner, a well-trusted operator, and has long-standing relationships with hundreds of retail tenants. Brookfield holds about $26 billion in real estate assets, so they’re definitely a titan in the commercial real estate game, but their name has hardly the cache in retail circles that SPG does. And yes, Simon could still get in on this deal, pick up another piece of GGP, and lend another steady hand to the company as it navigates its way out of bankruptcy. But the real winners here are GGP’s shareholders, who are getting a much better deal than they would have under Simon’s initial offer.

But what surprises me most is how quick GGP was to accept the Brookfield agreement, rather than making Brookfield’s offer public and seeing if Simon or another company might be willing to match it with better terms or beat it.

This new arrangement is the corporate equivalent of an open relationship. For the last week, Simon has been positioning itself as a cheapskate sugardaddy: offering a $10 billion total buyout of GGP that would compensate shareholders at $9 per share (far less than GGP’s board thought the company was worth) and paying off all of GGP’s bad debts (its unsecured creditors), in return for the consummation of a marriage that would have produced a kind of super-company that would have a stake in every retail market in America. Instead, GGP has chosen to keep its independence and simply let itself be a kept corporation, living on its own in an apartment where Brookfield pays the rent, so to speak. To that I say, Throw your hands up at me, GGP. But girl, just make sure you know what you’re doing.

Photo is of Towson Commons, one of GGP’s 10 Baltimore-area malls.

Category: Business, real estate

February snowstorms raining on retail’s holiday parade

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Two bits of retail news came my way this morning that don’t look good for retailers. With the massive snowstorms and weather across the country in February, the news isn’t a surprise … but that still doesn’t soften the blow.

A report by Richard Jaffe, an analyst for Stifel Nicholaus, says in his February same-store sales preview that the harsh weather will likely contribute to a drop in business for this month.

“While cabin fever contributed to some short term sales spikes and likely strong Internet sales, we anticipate February sales will be off the pace with those seen in [the fourth quarter],” he wrote.

He said he believes consumers “splurged” in the fourth quarter after being on a tight budget all year. But now they’ll likely return to that frugality given the uncertain economic environment.

“A focus on value is likely to prevail with retailers effectively utilizing promotions to communicate value,” Jaffe wrote.

Contributing to that notion of uncertainty is the other piece of news I received today — the Conference Board Consumer Confidence Index, which had increased in January, declined sharply in February.

The Index now stands at 46, down from 56.5 in January. The Present Situation Index decreased to 19.4 from 25.2 and the Expectations Index declined to 63.8 from 77.3 last month.

Yuck.

But Jaffe points out there are still a few winners to look out for. He likes The Gap, Children’s Place and American Eagle for their promotional strategy and likes the fact that discount retailer TJX Companies is increasing its inventory of premium brands.

He also predicts Aeropostale’s “compelling fashion at very sharp price points” and Urban Outfitters’ “willingness to take risks and offer the consumer fashionable and differentiated merchandise” will help both retailers gain market share this spring.

Category: Business, Economy, retail

Baltimore and Google: Checking out the competition

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Baltimore Deputy Mayor Andrew Frank got back to me via e-mail after my deadline for today’s Google fiber network story. I wanted to pass along his insights because they underscore a point the Baltimore technology leaders went to great lengths yesterday to make: Baltimore’s success in getting picked by Google as a test market for its ultra-fast broadband network will hinge greatly on the city’s ability to make the best municipal case possible for the selection.

The grassroots support, while creative and vocal, needs to be just that — support.

“They have to see in the application that this is a multi-pronged approach,” Mario Armstrong told me. “How do we extend this beyond, here are some techies who think this would be great for the city. … [Google] is really concerned with what are going to be the roadblocks to implementation?”

Here’s what Frank, who oversees neighborhood and economic development for Mayor Stephanie Rawlings-Blake, wrote:

“We are always looking for opportunities to distinguish Baltimore City from its competition. We need to find new and build on existing strengths that retain and attract residents and businesses. The Google high-speed Internet opportunity would achieve those goals, appealing both to residents and businesses. Also, as a technology gadget aficionado, the Mayor gets that having access to the latest technology can influence the choices that residents and businesses make.”

That last point was echoed by Tom Loveland, CEO of Mind Over Machines, a software company that’s thrown its support behind the push. When he and his like-minded high-tech brethren scout neighborhoods for homes to buy, Loveland said one of the first things they research is the “high-speed footprint.”

Meanwhile, here are some of the ways other cities are positioning themselves to grab Google’s attention:

What do you think Baltimore should do to catch Google’s eye? Let us know in the comments. The deadline for applications is March 26, so stay tuned.

Category: social networking, technology

Past is prologue as Md. woos Northrop Grumman

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Valentine’s Day has come and gone, but Maryland sure seems intent on making a love connection of an economic development sort.

And its courtship strategy looks like it hasn’t changed much in 10 years. (I know what you’re thinking: We’re really exploring the romance theme a lot here at the blog lately, huh?)

News of state efforts to woo Northrop Grumman Corp. trickled out last week. Gov. Martin O’Malley, General Assembly leaders and state economic development Secretary Christian Johansson have put the Free State’s best foot forward in hopes of landing the California defense contracting giant’s corporate headquarters.

Read the rest of this entry »

Category: Economy, government, marketing, Martin O'Malley, maryland

Stem cell research dollars on the table

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The age-old Annapolis debate on stem cell funding is back.

Gov. Martin O’Malley has proposed funding research with $12.4 million in fiscal 2011 — the same amount it ended up getting last year — but with a major budget issue on the state’s hands, legislators are starting to argue over just how much money should be ponied up by the state.

Knowing that stem cell research is always a target that can easily get slashed during the session and in mid-year budget cuts, the Maryland Technology Development Corp., the quasi-public organization in charge of doling out the research grants, hired Baltimore’s Sage Policy Group to determine the impact of the grants on Maryland.

The study found that based on data from 2008, Maryland is already feeling an economic impact from the program, which was launched in 2006.

Up through 2008, $38 million in funding for the research translated into business sales of $71.3 million, 514 direct and indirect jobs and more than $34 million in income at about $64,000 per job. Maryland also benefited from $2.7 million in state and local taxes.

And a larger economic impact could be on the way as the research moves from the lab to the market and becomes more commercialized.

Of course President Obama’s announcement last year that the National Institutes of Health would lift some Bush-era restrictions on funding embryonic stem cell research has raised questions in Annapolis about whether Maryland needs to pump money into funding the research at all.

But the report cautions that a lack of state-level support could mean a shortage of local knowledge, federal dollars and economic impact.

Category: Annapolis, Biotechnology, Business, Stem cells

Starbucks study found menu labeling doesn’t hurt its business

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Last week I wrote a blog post wondering if the proposed menu labeling bill in Maryland is going too far in that it takes away consumers’ accountability for their own health.

Today I got an e-mail in response to the blog from a PR rep for Starbucks Coffee. She included the results of a recent study Starbucks had commissioned on menu labeling, which requires restaurants and chains to post nutritional information next to each menu item.

Much to my surprise, the study conducted by Stanford University found that calorie-posting at Starbucks led to a 6 percent reduction in calories (from 247 to 232) per transaction. AND (this is what really surprised me) the amount spent per transaction was not significantly affected, and in some cases proved to be effective marketing.

“There is no impact on Starbucks profit on average, and for the subset of stores located close to their competitor Dunkin’ Donuts, the effect of calorie posting is actually to increase Starbucks revenue,” the study said.

The study’s authors analyzed transactions at Starbucks company stores in New York City from Jan. 1, 2008, to Feb. 28, 2009, with mandatory calorie posting in that city taking effect on April 1. For controls, they authors also looked at every transaction at Starbucks company stores in Boston and Philadelphia, where there is no menu labeling.

The study also looked at individual behaviors by analyzing Starbucks card holders’ purchases in New York and conducted surveys after calorie posting became mandatory in Seattle last January.

The results are interesting in that it seems to show if lower-calorie food or snack alternatives are offered (such as Starbucks’ 120-calorie mini-donut), customers will likely substitute their usual order and not necessarily spend less. But where menu labeling CAN hurt is if you don’t have that option, like at Dunkin’ Donuts. Sorry, but a bagel (even though it has more calories — but also less fat) is nowhere near close to being a substitute for a donut.

Does this change anyone’s opinion about menu labeling? Or does it reinforce it?

Category: Business, food, restaurants, Uncategorized

A new Tiger Woods? Or the same old wolf in sheep’s clothing?

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In his first public appearance since details of his multiple extra-marital affairs began unraveling, a red-eyed Tiger Woods delivered a statement in front of a hand-picked audience Friday morning.

Woods, who has not been seen or heard from since late November, appeared at the TPC Sawgrass golf course in Ponte Vedra Beach, Fla. The event aired opposite the World Golf Championships-Accenture Match Play Championship, which has been going on since Wednesday in Arizona. Accenture is one of the sponsors that has dropped Woods in recent months.

Here are a few highlights:

“I’m also aware of the pain my behavior has caused here in this room I have let you down and I’ve let down my fans.”
“I felt I could get away with what I wanted to. I felt I had worked hard in my life and deserved all the temptations around me … I was wrong. I was foolish. I don’t get to play by different rules.”
“It’s now time for me to make amends … It’s time for me to start living a life of integrity.”

Woods’ voice rose when he referred to speculation that his Nov. 27 car accident was caused by domestic violence: “It angers me that people would fabricate a story like that. [My wife] Elin never hit me that night or any night. There has never been an episode of domestic violence. Ever.”

He also addressed his possible return to golf, saying he does plan on playing again but does not know when: “I won’t rule out returning this year. When I return I need to make my behavior more respectful of the game.”

The general sentiment from PR and crisis communication professionals in the area is that Woods did well in fully taking responsibility for his actions.

“This was sort of the mother of ‘mea culpas’ in length and detail and self flagellation,” said Susan Goodell, senior director at Warschawski, a public relations firm in Baltimore.

But it was only a job half-well done. The resounding chorus from professionals is that Woods is prolonging his negative image by refusing to take questions from the media.

“Without taking questions and really orchestrating it and limiting media members in there, it reeks of control and insincerity,” said John Maroon, president of Maroon PR in Marriottsville. “If you’re going to fall on the sword, fall on it completely.”

On the one hand, both said they were generally surprised Woods spoke about as much as he did (his return to golf, domestic violence, his renewed interest in his Buddhist faith, and he even thanked PGA players and Accenture for “understanding” why he chose to make his announcement Friday).

But on the other hand, they said, the statement gives Woods an excuse not to give the public any more. By addressing some things and not addressing others by saying they are private, Woods’ statement acts as a cover-all, Goodell said.

Maroon said the fact that Woods will not answer questions is overshadowing the fact that he apologized. He said while a traditional news conference on Friday could have been a wild free-for-all, following it up with a sit-down interview with a news organization could have nipped this in the bud.

“Then you can probably move on,” he said. “At some point he’s going to have to answer some questions if he wants to rebuild his brand.”

Levi Rabinowitz, a local crisis communications expert, said the format of Friday’s event was one that he never would have advised a client to take. Because of the worldwide interest in the golfer and this scandal, controlling the number of people allowed makes sense to a degree, he said. But limiting it to a few media outlets and not taking questions is taking it too far.

“There were questions [you] could have asked the media to confine themselves to,” he said.

Woods may have apologized but his actions speak louder, Rabinowitz said.

“The contradictions are profoundly communicative,” he said. “His message is in the controlling way he conducted his message … Taking responsibility is changing your behavior — from this event to today, his behavior has not changed.”

Category: Business, golf, public relations, sports, Tiger Woods, Uncategorized

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