entertainment earth has one of the few profitable Web retail sites out there, selling toys from ‘star wars’ and other hits When he was 7 years old, Jason Labowitz became fascinated with “Star Wars.” And like other kids his age, he started collecting action figures based on the George Lucas movies. While his peers moved on to other interests, however, Labowitz continued collecting the figures into high school and even at college. His parents thought it a bit odd; his friends laughed. But no one is laughing now. With a $9,500 investment and the help of his brother Aaron, Labowitz parlayed a fascination with collectibles into a rather unusual e-commerce business one that actually has been profitable from the start. “My hobby was always the source of a little bit of teasing in college,” said Labowitz, now 29. “But the first few months after we started out, and we began getting a lot of orders, I knew I wasn’t the only (adult action-figure collector) out there.” From its Web site, www.entertainmentearth.com, the company sells a selection of more than 700 action figures, toys and other memorabilia related to films like “Star Wars” and “Austin Powers,” television shows like “Buffy the Vampire Slayer,” and popular childhood toys like G.I. Joe. The least expensive items are action figures selling for $6 or $7 each. The most expensive is a full-size replica of the “Star Wars” robot, C3PO, that goes for $11,000. In its first year, 1996, Entertainment Earth had revenues of $125,000. Sales grew to $1.5 million in 1999, and Labowitz says his firm is on track to post $3 million in sales this year. The company, which started out in a Sherman Oaks garage and later graduated to a 4,000-square-foot office in Sun Valley, is now in the process of moving to a 17,000-square-foot warehouse in North Hollywood. Most customers aren’t kids Entertainment Earth caters mostly to adults, from 18 to 40, who love to collect action figures and other toys but no longer have the time to search stores and garage sales for pieces missing from their collections. “We have a huge customer base that buys ‘Star Wars’ action figures, and I can tell you most of them aren’t kids,” said Labowitz, whose company racks up 40 percent of its sales from overseas buyers. “For people under the age of 16 (what the company sells) are considered toys. Over 16, they’re considered collectibles.” Action figures industry-wide generated $907 million in wholesale revenues in 1998 and $1.1 billion in 1999, said Terri Bartlett, spokeswoman for the Toy Manufacturers of America. “Keep in mind, the increase reflected the release of (the latest) ‘Star Wars’ episode,” said Bartlett. “You have a lot of collectors buying them, but you also have a lot of children.” For Labowitz, the decision to launch an Internet site specializing in collectibles was a natural career progression. Interested in computers early on, he started his own computer consultancy in 1993 after graduating from UC Santa Barbara with a dual major of pre-law and philosophy. At the same time, he stayed active as an action-figure collector and was heavily involved in an Internet news group dedicated to “Star Wars.” When he learned in 1995 that Hasbro Inc. was re-releasing “Star Wars” action figures, the news group began pooling its resources to place a large order. When Labowitz learned the group had amassed $50,000 in just two weeks, he knew he was on to something. “That was the spark for starting my business,” he said. As a tiny startup, Entertainment Earth didn’t have the buying clout to get much attention from major toy makers. In fact, he says a sales rep assigned to his business at Hasbro wouldn’t even return his calls. Fortunately, a new rep took over, and Labowitz immediately sent him a box of candy. “It worked. Guess who he called first out of all the new accounts he was assigned?” Labowitz said. Bulk business Instead of selling action figures individually, Labowitz eventually decided to sell them by the full case, giving buyers a wider assortment. The strategy quickly helped boost the company’s order volume, allowing Entertainment Earth to shed its mom-and-pop status. Still, Entertainment Earth faces tough competition. Seema Williams, a senior analyst with Forrester Research Inc., said finding a strong niche in e-commerce is tough because larger players quickly follow suit. That’s happening already to some extent, as eToys works to boost sales of collectibles, and big toy makers like Hasbro and Mattel are working to increase their reach into the market as well. “It’s not hard to break into collectibles. Mattel has done quite well doing that with Barbie,” said Williams. Labowitz knows his company faces tough competition but is convinced that large retailers and toy manufacturers don’t do a good job of catering to collectors. “Collectors want a perfect box and package for the items they buy. That’s an important part of its worth,” he said. “We promise to get them collectibles that are in mint condition. If they’re not satisfied, we’ll absorb the cost.”

In case you hadn’t noticed, yields on bank certificates of deposit are now at the highest they have been since 1995. Still more significant, the difference in yield between conventional U.S. Treasury obligations and other instruments has also been growing. This means that a quick look at the Treasury market is no longer a good measure of how much competition the stock market is feeling from its traditional nemesis. Here are some recent examples: While the national average on one-year bank certificates of deposit is 5.42 percent (according to Banxquote.com), E-Trade Bank has been advertising one-year CDs with a 7.42 percent annualized yield. E-Trade Bank boasts that its yields are in the top 1 percent across the country, which suggests that you and I still have to hunt for the most attractive yields. At 7.42 percent, however, we’ll be well paid for our effort. The annualized yield on I-Savings Bonds the ones that are inflation adjusted will be 7.49 percent from May through October. The yield is determined by adding the annualized rate of inflation (3.82 percent according to a recent release) to a fixed return of 3.6 percent. Sold at face values of $50 to $10,000, these securities earn interest tax-deferred until cashed. Savers redeeming bonds before five years are subject to a three-month earnings penalty. (If you’d like more information, visit www.savingsbond.gov.) The yield spread between Treasury obligations and high-quality corporate bonds has widened. Recently, it was above 50 basis points (0.5 percent) for one-year maturities, rising to more than 150 basis points for 10-year maturities. There is also a large spread between Treasuries and Ginnie Mae obligations of similar maturity. (Ginnie Mae obligations are packages of home mortgages that have been sold as securities with the principal value of the investment guaranteed by the government.) Is this important? I think so, and for two important reasons. First, yield investing has been a pretty dismal activity in recent years because interest rates were in a long, secular decline. Now, with rates rising, people who are retired or supplementing earned income with investment income are about to get a better deal investing their nest egg. By combining carefully selected CDs, Ginnie Mae funds and a few high-quality preferred stocks, it is possible to have a current yield of 7.5 percent to 8.0 percent. That’s a big increase over the 5 percent to 6 percent retirees have been struggling to maintain. Second, the same rising yield that makes life easier for retirees may also have a significant impact on those still building their nest eggs for the future. You can understand by imagining what your 401(k) or other investment account statement will say at the end of June. If nothing changes between now and then, your large stock funds will be down around 6 percent, and your small stock funds will be down around 8 percent. For some, the figures will be a lot worse. Homely cash, meanwhile, will have earned 3 percent. As a result, the return on stocks is trailing the return on simple cash by 9 percent to 11 percent. We haven’t experienced anything like this since 1994. This is not the investment world we have come to take for granted. This is not the inalienable right to increasing wealth we associate with common stock ownership. In eight of the last 10 years, stocks have beaten cash cold. Money held in money market accounts, money market mutual funds and short-term government income funds has been an embarrassment. Stocks have been the “no-brainer” investment, providing record-breaking yearly returns. Now, the rules may be changing. If interest rates continue to rise as promised by Federal Reserve Chairman Alan Greenspan stocks will be competing against a stronger and stronger enemy, an enemy whose victory is expressed in lower price-to-earnings multiples. Will it happen? No one knows, including Alan Greenspan. What many investors may not understand, however, is that nearly half of the total return that stocks have offered since 1982 is the result of the quadrupling of stock price-to-earnings multiples, from 8 to 32, as interest rates fell. A sustained rise in interest rates could start to reverse that magic. Question: My story, then my question. For a few years prior to 1985, I invested in stocks, bonds and mutual funds. One day I heard Howard Ruff. After that, I started hearing lots of people like this little bear David Tice. One day I made a decision to clear out of all markets except for gold and silver. Anyway, I called my broker and said to sell everything don’t ask questions. Then I called Fidelity and closed all accounts. I sold all my real estate in and around Houston and moved to Colorado and built a log home on a beautiful lake with a view of the Continental Divide. Feeling smug in 1987 when the market crashed, I just felt nice and warm with all that 12 percent interest coming in every day. Then the 12 percent funds began to cash out and I was at a loss for what to do. I was still a bear and the market started its long climb without me. The question: What is the dollar value now, compared to 1985, of Fidelity fund, Contrafund and Equity-Income fund? Maybe I could have remained in the market all these years and still not have needed to sell. Boy, wouldn’t I be proud of myself and kind of rich, too, if only I had not listened to the little bears. F.R., San Antonio Answer: Do you really want to know? You’ve got a veritable river of spilt milk to cry over. Using Morningstar Principia, I assumed you had invested $10,000 in each of the three Fidelity funds you mentioned. I also added Vanguard Index 500 as a benchmark. The results, both before taxes and assuming taxes on distributions at 28 percent, are a pretty good indication of just how big this bull market has been. Contrafund, the best performer, rose to $157,089 before taxes, $112,741 after taxes. Equity-Income fund, the poorest performer of the three, rose to $73,561 before taxes, or $51,135 after taxes. Equity-Income fund, by the way, was at the 50th percentile in its category half did better, and half did worse. It should be noted that these investments still have some tax liabilities because not all gains have been realized and distributed. Questions about personal finance and investments may be sent to Scott Burns, The Dallas Morning News, P.O. Box 655237, Dallas, TX 75265; or by fax: (214) 977-8776; or by e-mail: [email protected].

Lowe’s HIW Inc. has purchased an 11-acre parcel in Valencia and plans to build a home improvement warehouse on the site as part of an expansion into the Southern California market. Lowe’s, a national chain of 589 stores that operate under the Lowe’s and Eagle Hardware & Garden names, has six stores in the L.A. area. The Valencia unit is planned for 135,000 square feet of warehouse space and a 28,000-square-foot garden center. The parcel, which sources said was purchased from Newhall Land and Farming Co. for more than $6 million, is located at Bouquet Canyon Road and Newhall Ranch Road. Lowe’s expects to open its new unit in the first quarter of next year. The company also has planned store openings in Burbank and Woodland Hills for sometime next year. David Goldman, president of Goldman Retail Associates, represented Lowe’s in the deal. Newhall represented itself. Corporate Pointe Leases Corporate Pointe @ West Hills has signed its first new tenants. MRV Communications inked a deal for 39,000 square feet for its Zuma Networks division, and Recycler Classifieds signed a lease for 14,500 square feet in the office campus, located at Fallbrook Avenue and Roscoe Boulevard. When completed, the site, which had been the former headquarters of Coast Federal Savings, will include five campus-style buildings on 30.5 acres. Zuma will occupy one of the buildings. The company will be relocating from the MRV headquarters facility in Chatsworth. The five-year Zuma lease is valued at $4.6 million. The Recycler will move into half of one of the other buildings, in a 7.5-year lease valued at $2.5 million. Mark D. Leonard of Trammell Crow Co. along with several brokers from Cushman & Wakefield represented the owner, MEPT West Hills LLC, in both of the deals. Scott Caswell of Delphi Business Properties represented MRV and Frank Rivas of United Systems Integrators represented The Recycler. WellPoint Expands WellPoint Health Networks Inc. has signed a 10-year lease at the Mission Oaks Technology Center in Camarillo. The company, which operates its corporate headquarters in Thousand Oaks, will occupy 185,127 square feet of space in the new offices, which are located at Camino Ruiz and Verdiego Way. The complex is owned by Kilroy Realty Corp., which represented itself in the deal. John L. Vinnicombe with Jones Lang LaSalle represented the tenant. Building in North Hollywood EBuilt, an Irvine-based designer and builder of Web sites, has leased new office space in North Hollywood to expand its reach in Southern California. The company will set up shop in 12,147 square feet of office space at 4640 Lankershim Blvd., a property owned by CT Realty XXXIX Lankershim Partners. “In the not-too-distant future we will open in San Diego,” said Karron Esmonde, a spokeswoman for the company. “Our intent is to have a greater reach in the Southern California area in the near future.” EBuilt was founded with seed money in 1999, and by the end of that year it employed about 60 people. The company currently has 200 workers. Jeff Woolf and Robert Erickson at Lee & Associates represented eBuilt and Erickson, along with Trevor Belden, represented the landlord in the deal. An Aware Deal Aware Products is expanding its manufacturing and headquarters facility with the lease of a 124,000-square-foot plant in Simi Valley. Aware which makes hair care, body and bath products sold by such companies as Victoria’s Secret and Procter & Gamble is expanding from its current location in Chatsworth to the new facility at 4175 Guardian St. The company expects to employ about 300 people at the site. The eight-year lease is valued at $7.2 million. Scott Caswell of Delphi Business Properties represented the tenant. Mitch Conlee of Daum Commercial Real Estate Services represented the lessor, Sunrise Medical. Chatsworth Move Capstone Turbine Corp., a producer of gas turbines, has leased about 100,000 square feet of space at the Northpark Industrial Center in Chatsworth. The company’s new facility will consolidate seven plants it currently occupies in Woodland Hills. It will employ about 175 people at the location. The 10-year lease is valued at $8.5 million. Michael Tingus and John DeGrinis of Colliers Seeley represented the tenant and the landlord in the transaction. Glendale Marketplace Deals Glendale Marketplace has added two new tenants: T-TIMES Tea House and Grill signed a six-year lease to open a 3,000-square-foot restaurant in the shopping center, and Pacific Sunwear of California Inc. signed a 10-year lease for a 4,000-square-foot store. Glendale Marketplace, developed by Regent Properties, consists of 25,000 square feet of restaurant space, 100,000 square feet of retail space and 36,000 square feet of entertainment tenants. The center is anchored by WOW!, a multimedia combo outlet that includes mini-stores from The Good Guys and Tower Records. The center also has a Mann Theatres multiplex. Ara Aprahamian of Real Estate Management Group represented Regent Properties in the T-TIMES deal. Allen Young of CB Richard Ellis represented the landlord in the Pacific Sunwear deal. Valencia Lease Novacap, a manufacturer of ceramic chip capacitors used in the computer, telecommunications, aerospace and other industries, leased a 44,460-square-foot facility in the Valencia Industrial Center. Novacap, a subsidiary of Dover Technologies International Inc., expects to employ 150 people at the new headquarters location at 25136 W. Anza Drive. David Hoffberg of Delphi Business Properties represented both the tenant and the property owner, Rosen Family Trusts of Los Angeles. Staff reporter Shelly Garcia can be reached at (818) 710-2731 or by e-mail at [email protected]

L.A. Foods, which resells excess food from manufacturers, has over the past decade built its business from a one-man operation into one of the biggest companies of its kind in the nation, with annual revenues of $22 million. So when the Canoga Park company was looking at ways to expand its market share last year, the Internet was one of the first places the three owners turned. Feeling pressure from competitors that were also looking to launch in cyberspace, partners David Fox, Max Gold and Mark Davis invested $500,000 for the launch of Direct2government.com. It remains to be seen whether the brick-and-mortar business can survive in the virtual world, but L.A. Foods has one advantage: its unusual niche is one that, so far, few others have entered online. Workers at L.A. Foods contact food manufacturers, identify oversupplies, and then negotiate for the lowest price, selling the products to government agencies like prisons and schools, as well as food banks. The operation is a somewhat speculative one; when manufacturers have large oversupplies, L.A. Foods will buy the product by the truckload, storing the goods at its warehouse in the hopes that it can find enough buyers interested in the product. The Web operation takes out much of the risk and overhead at the sacrifice of profit margins. Its clients pay L.A. Foods a markup of around 17 percent on top of the price the company was able to negotiate to buy the food. But users buying through Direct2government.com pay a markup of only 7 percent for each transaction. That’s because the Web operation hooks up manufacturers and government clients directly. Manufacturers post specific oversupplies on the site, and agencies can pick and choose what they want. The products are then shipped directly to the buyer, not through L.A. Foods’ warehouse. Because L.A. Foods’ fastest growing division is importing foods from overseas and selling it to U.S. government agencies and food banks, the company decided growth in that area would more than offset any loss in revenues from selling online. “Sure, we’ll lose some business, and everybody’s a little uptight right now,” Fox said. “We told our sales guys we’ll give them stock options; we’ll take care of them.” Fox said he expects the overseas branch to generate more than $200 million in revenues in three years because of the market potential. And Gold said the expanded selection on the Web site will drive business online. Because the site allows hundreds of manufacturers to post specific oversupplies even in small quantities, it means L.A. Foods’ clients have a much wider selection than they would if they were relying only on what the company has on stock in its warehouse. “There’s a limit on the items we could carry at L.A. Foods,” Gold said. “(With Direct2Government), we have everything. We have eight different types of pickles.” So far, 250 government agencies have signed up with Direct2government, though Fox admits orders are just starting to trickle in. Up to now, no Web sites have set out to target government food-buying programs. While sites such as Tradeweave.com and Ecfoods.com auction off food and other items, they aren’t specifically geared at government agencies or at production overruns. Sara Gill, a purchaser for the Bryant State Prison in Texas, used the site after getting an e-mail announcing its launch. After the prison ran out of tomato sauce in late May, Gill went online to compare prices. She ended up paying $7.50 a case for a truckload of tomato sauce, compared to the $11 she had been paying to buy the sauce through local vendors. “I was pretty happy about it,” she said. “Prison facilities can really use it because it’s all about cost containment.”

Six years after the Northridge temblor, damage has again taken center stage this time in Sacramento, where state lawmakers are considering a bill to reopen the insurance claims process. If the bill passes, it could be a windfall for Valley homeowners, perhaps resulting in billions of dollars in payments. But local observers say there is little prospect that businesses will see new reimbursements for quake damage. The legislation is being considered amid ongoing investigations of Insurance Commissioner Chuck Quackenbush, who is accused of diverting money from an insurance relief fund for his own political purposes and giving insurers a break when it came to fulfilling their earthquake commitments. With Quackenbush in the hot seat, the state Senate passed legislation to reopen the claims process for people whose homes were damaged by the earthquake, giving them another year to file a claim. The legislation is awaiting a vote in the Assembly. While the deal could be a boon to homeowners, San Fernando Valley business leaders say that whatever happens in Sacramento will come too late for most business owners impacted by the quake. “Right now, no one in the Valley remembers the quake,” said Maureen Freid, president of the Northridge Chamber of Commerce. “Things have been fixed. And many places look even better.” Those businesses that couldn’t survive the damage sold or went bankrupt long ago. “A lot of businesses packed up and left or went into other things,” Freid said. “There’s a lot of people that left and sought their fortunes elsewhere.” Picking up the pieces Keith Stark, owner of Chatsworth-based Pacific Fixture Co. Inc., a builder of interiors for retail stores, is an example of the many local business owners that were hurt badly by the Northridge earthquake in 1994. Aside from building damage from a roof cave-in, Stark lost millions immediately after the quake when his customers, mostly small merchants, went under because they had no earthquake insurance or because of delays in getting their businesses running again. Nonetheless, today the earthquake is little more than a faded memory. Stark’s business is again on the upswing, and he expects to generate roughly $2 million in revenues this year, the same as the year before the earthquake sliced his sales in half. For Stark and others like him, the latest flap over the Northridge earthquake has aroused plenty of anger, but little expectation of reparation. The strong economy has turned things right-side up for most businesses damaged by the quake. As a result, few commercial structures have gone unrepaired. A survey by the Valley Economic Development Center earlier this year found that of hundreds of buildings damaged by the disaster, just five remain unfixed. “Most were fixed with the strong economic demand for commercial and industrial space,” said Roberto Barragan, executive director of the VEDC. “That was the main impetus for rebuilding.” The VEDC helped dozens of businesses recoup after the quake, providing guidance and financial assistance. Barragan said most building owners had insurance to cover damage losses. Those that didn’t sold their buildings, and the new owners paid for fixes. And while some apartment owners still encounter damage from the temblor, few expect any help now, said Shari Rosen, executive director of the Apartment Association of the San Fernando Valley. “There are probably a few that are still dealing with damage,” Rosen said. “Every once in awhile, someone comes in looking for help. It doesn’t seem to matter what happens in Sacramento, though. Most of the big stuff has been taken care of.” Even the Valley Industry and Commerce Association has heard little from members expecting relief from the state, said Executive Director Bonnie Herman. However, VICA is looking into what effect, if any, the Quackenbush scandal has had on business and may recommend legislation based on its conclusions. While businesses seem to have moved on, many owners say they are angry about the Quackenbush mess. “The initial reaction from many business people I talked to was, ‘that SOB,'” Freid said. “Right now in my own mind, I want to listen to everything before I rush to judgment.” Others are not so charitable. “It’s disgusting,” Barragan said. “Most people I talk to are mad and they basically think he should resign. He used the office to his own benefit and didn’t even put the money back into the community.” Howard Meister, who lost $250,000 in inventory at his Van Nuys-based Wine and Liquor Depot in the quake, agrees. “What he did is unconscionable,” he said. “He didn’t hurt (our business directly), but I’m still a taxpayer.” Boon for homeowners Homeowners will likely feel the biggest effect from any Sacramento legislation aimed at righting Quackenbush’s alleged wrongs. While businesses certainly took a hit from the quake, the claims they filed with insurers represented only a fraction of the amount sought by homeowners. A 1999 survey by the Institute of Home and Business Safety, an insurance-industry trade group, showed that business claims accounted for 28 percent, or $4 billion, of the overall $15.3 billion insurers paid out for earthquake damage. Lawyer Glenn Kantor, who has filed a class-action lawsuit against 21st Century Insurance Co. and other insurers, says he believes it will take more suits like his before homeowners see help. The suit involves homeowners who had additional quake damage that wasn’t discovered until after the one-year deadline to file claims following the Northridge temblor. Many times, insurers sent adjusters back and found more damage, but refused to pay because the deadline had passed. If the bill in Sacramento to reopen claims is passed, it could mean a windfall for local homeowners. Community activists estimate that any payout could be huge. “A lot of claims will be reopened,” said George Kehrer, executive director of Community Assisting Recovery, a group that mobilized after the quake to help homeowners deal with insurers. “We estimate that it could potentially reach several billion dollars.” Business owners, meanwhile, are simply taking the lessons learned from the quake and moving on. Stark of Pacific Fixtures has no earthquake insurance. But he says he’s better prepared for the next quake because most of his customers are now big retail stores that do carry insurance and are able to be up and running faster. “We looked at earthquake safety in our building, so the next one won’t impact us as much,” said Stark. “But it’s kind of part of life and one of the gambles of living in Southern California. I hope it doesn’t happen again.”

Tuesday, June 13 Women Execs The San Fernando Valley chapter of Executive Women International holds its monthly meeting at Cheers Catering Inc. The meeting starts at 6 p.m. and will be catered by Cheers, at 19431 Business Center Drive No. 1, Northridge. Information: (626) 564-4840. Wednesday, June 14 Creative Business The American Society for Training and Development holds a conference on bringing creativity to the workplace. Conference runs from 6:30 p.m. to 8:30 p.m. at Tarzana Hospital, 18321 Clark St., Tarzana. Information: (818) 702-6537. Why Salespeople Fail Corporate Strategies and Solutions holds a seminar on how to make a better sales pitch. Seminar runs from 7:30 a.m. to 9:30 a.m. at 20315 Ventura Blvd. Suite C, Woodland Hills. Information: (818) 247-3191. Monday, June 19 Investor Know-How Morgan Stanley Dean Witter holds a seminar titled “Investing Strategies” at its Sherman Oaks offices. The event begins at 6:30 p.m. at 15490 Ventura Blvd., third floor. Information: (818) 907-2464. Wednesday, June 21 Mega Networking The United Chambers of Commerce of the San Fernando Valley holds a mega-mixer for Valley chambers. The event runs from 7:30 a.m. to 9:30 a.m. at Warner Center Marriott, 21850 Oxnard St., Woodland Hills. Information: Judy Kessler Block at (818) 789-4711.

Three months before Dr. Laura Schlessinger’s Sept. 11 television debut, the decision to create a show around the tough-talking queen of talk radio is becoming a media firestorm. Some of the country’s biggest advertisers have pulled out of her coming TV show, as well as her existing top-rated radio program. A full-page ad in the Los Angeles Times underwritten by groups ranging from the Gay & Lesbian Alliance Against Defamation to Norman Lear’s People for the American Way denounces Schlessinger and warns advertisers about “how alienating her program has become.” Late last month, the Canadian Broadcast Standards Council added fuel to the fire by denouncing her radio show for being “discriminatory.” The regulatory agency requires broadcasters to apologize on the air for an offender’s remarks. On the streets of Hollywood, gays and lesbians have protested the new TV show in front of the studios of Paramount Pictures, its producer. There also have been protests in San Francisco, Chicago, Boston, Phoenix and Seattle. Others are planned for New York and Tucson. Schlessinger’s critics object to her frequent disparaging remarks about gays and lesbians; she has referred to them as “deviants” and “biological errors.” An Internet Web site, stopdrlaura.com, now lists the names, addresses and telephone numbers of Paramount executives, to facilitate sending protests. “This is unprecedented,” said Dick Kurlander, vice president for programming at Petry Television, a New York-based company that consults TV stations on what syndicated shows to buy. “I have never seen anything like this before a show’s premiere.” Paramount holds tough For now, Paramount has no intention of buckling to the growing protests. “Paramount Television Group recognizes every individual’s right to have and express his or her own point of view, as well as the right to assemble and demonstrate in an orderly and peaceful manner,” the studio has said in a prepared statement issued to the news media. “We have a long history of support for the civil and human rights of all people. We have been equally strong in our support and respect for the free exchange of speech and ideas.” Despite the flap, the idea to develop a TV talk show hosted by Schlessinger could be considered a brilliant stroke, at least on paper. She is the queen of talk radio, who vies for the top slot in radio syndication with Rush Limbaugh. She’s tough-minded, tough-talking and no-nonsense, and her stands, often controversial, have made her a brand name in the crowded bazaar of TV syndication. This is magic in the world of 500 channels, which is why Paramount’s TV syndication arm leaped at the chance to make a deal with her and 175 TV stations around the country, including KCBS-TV Channel 2 in Los Angeles, jumped on board. That’s a whopping 95 percent of the country. Among the station groups, in addition to CBS, that have bought the show are Hearst Corp., E.W. Scripps Co., Media General Inc. and Jefferson-Pilot Corp. “They shouldn’t cave in, no matter how vocal the protests become,” Kurlander said. “This is a classic First Amendment battle. They (gays and lesbians) have a right to make their views known and Paramount has a right to air and syndicate the show and the audience will make a determination.” But some advertisers aren’t waiting for the first ratings reports in the fall. Procter & Gamble Co., one of the nation’s biggest spenders in TV advertising, recently dropped out of the TV show, as well as Schlessinger’s radio program. Xerox Corp., whose contract with her radio show expired, announced it has no plans to renew. Meanwhile, reports that AT & T; Corp. and American Express Co. have pulled out of the new TV show were erroneous. Upon hearing of P & G;’s decision, Paramount issued a prepared statement expressing that it was “disappointed that Procter & Gamble has chose to withdraw its advertising without even having seen the show or judging it on its own merits.” The studio went on to state that the TV show will deal with moral and ethical issues, but “without contributing to an environment of hurt, hate or intolerance.” The studio also maintained that Dr. Laura’s new show “will be an advertiser-friendly program” that won’t offend viewers. So far, TV stations around the country have remained steadfast in their decision to air Schlessinger’s show, in part because they have a contract with Paramount though some are clearly worried about possible fallout. While Schlessinger’s radio show is a known commodity, her TV talk show has not yet begun taping. (It will be produced at a rented studio facility in Woodland Hills.) And there will be no pilot, meaning stations are committing to a full year of programs based solely on the success of Dr. Laura’s radio show and the belief that her popularity will translate to television. Aside from the fact that Schlessinger will be the host, its focus on topical subjects, a live audience and telephone call-in elements, little is known about the show. One thing Schlessinger won’t be doing, however, is bashing gays, Leaycraft believes. (Paramount officials declined to comment directly on the issue.)

For most, a part-time college job means waiting tables or selling at a department store, but Jon Haim has successfully turned walking dogs into a profitable side business while he works his way through college. Five years ago, while working at Petco, Haim got word that a dog trainer he knew had clients in need of pet sitters and dog walkers. He formed Unique Pet Sitter Services and has since built his clientele list up to 75. His experience will come in handy for his future degree in business management, which he is working toward at Cal State Northridge. Haim recently spoke to reporter Jennifer Netherby about watching pets for a living. “A lot of people work all day and they don’t have time to walk their dogs. So I offered to walk their dogs as many times a week as needed. They liked the idea and when they were on vacation, they’d ask me to come to their house and feed their dogs and watch them. I’ve sat cats, ferrets, snakes and birds. “I usually work with seven to 10 clients every week. I work five to six hours a day walking dogs. I walk them for between 45 minutes and an hour. I charge around $15 an hour. But it depends on where the person lives and how many dogs they have. For my regular clients, I usually walk their dogs three to five times a week. “I walk all types of dogs. I’ve met every dog possible. The only dog I haven’t walked yet is a Great Dane. “There are a lot of pet sitters out there, but I try to be the least expensive. I get most of my clients through word of mouth. I’ve tried to advertise through fliers and ads in papers, but it doesn’t seem to work. I tried to expand my business and hire other dog walkers, but that didn’t work either. A lot of people don’t trust others to walk their dogs. “My customers are typically business people who work a lot of hours. They really care for their animals. I had to take one dog to the veterinarian because the owner said it had a toothache. “I plan to continue this business while I’m in school and then I’ll either hire other people to walk dogs or pass the business on to my brother. It pays pretty well for now. Basically, my only costs are gas to drive to my clients’ homes and money to pay for basic maintenance of my car.”

Thrills, Chills, Spills Not The theme park that gave the world Space Mountain, Star Tours and even Pirates of the Caribbean has a new thrill in store: a tractor. That’s right. Caterpillar Inc., the maker of all manner of heavy equipment, has inked an agreement with Disney for an attraction “where guests can have fun learning about agriculture.” It’s one of many attractions planned at “Disney’s California Adventure,” the new $1.4 billion, 55-acre theme park/resort set to open Feb. 8, 2001 next to Disneyland in Anaheim. At the “Bountiful Valley Farm” area of the new park, visitors can climb aboard a Caterpillar Challenger tractor, join an interactive Farmers Expo and stroll amid crops. Slaves to Fashion The evidence is mounting that the Casual Friday thing has gotten out of control. A recent survey of executives at the nation’s 1,000 largest companies by Accountemps revealed that 34 percent believe workers were dressing down a bit too far on those days. “Relaxed dress policies are a proven recruitment, retention and motivational tool for businesses, but they are not without limitations,” said Max Messmer, chairman of Accountemps. Similar concerns prompted Woodland Hills-based 21st Century Insurance to recently hold a fashion show for all 1,200 of its employees. It wasn’t exactly a show of haute couture. Models graced the runway in khakis and other styles the company deemed appropriate for the workplace. The show inaugurated 21st Century’s new casual dress policy. Fight Club The North Hollywood Project Action Committee, a community advisory group for city redevelopment, has had its share of troubles over the years. There’s been the open opposition from some members to any redevelopment and endless debates in the move forward. But the group was patting itself on the back last week. That’s because a meeting by one of its larger brethren, the Northeast Valley PAC, which is charged with making recommendations on redevelopment for a huge segment of the Valley, ended in a fistfight among several audience members after the group voted to disband. “I talked to a couple people from our PAC and we were laughing about it,” said Joe Hooven, a member of the North Hollywood PAC. “Can you imagine? I mean, we have a wacky PAC, but I can’t imagine a fistfight ever breaking out.” Overpaid Players It was a case of awkward timing for the annual Los Angeles Press Club journalism awards. The event was scheduled to begin at 6:30 p.m. on June 4. But that turned out to be the time of the incredible fourth-quarter rally by the Lakers in the seventh game of the series against Portland. So instead of mingling in the banquet room of the downtown Regal Biltmore Hotel, dozens of journalists crammed into the upstairs bar for those frantic final minutes of the game. Later, one award presenter, comedian Paula Poundstone, found some humor in the situation. “Somehow, I just can’t get into this professional sports thing,” she said. “All those players making gazillion-dollar salaries What they really should do is recruit the players just like you would for jury duty. Now that would be something to watch, forcing people to play for $5 a day.” Sushi for Shaq? Speaking of the Lakers, the team could open the 2001-2002 season on a very long road trip to Tokyo. The team is thinking about becoming the latest to take part in a semi-regular effort by the National Basketball Association to expose the Japanese to what is quickly becoming America’s favorite game. “The Lakers have expressed some interest,” said Terry Lyons, NBA vice president of international marketing. “But nothing is clear cut.” Last November, the Minnesota Timberwolves and Sacramento Kings kicked off the current season by splitting a two-game series in front of 60,000 fans in Tokyo. Vote for Me The latest candidate to enter the race for L.A. mayor is Francis Della Vecchia, manager of the 95-year-old Dawson’s Book Shop in Larchmont Village. Della Vecchia is hoping to end the rule of what he calls a small clique running L.A. “I dislike professional politicians,” he said. As part of his campaign, Della Vecchia has set up a Web site, www. WatchTheMayor.com, detailing his platform and promising: “I will not be preoccupied with fund raising.” Even so, one of the first media releases from his camp promotes a June 21 “launch party and gigantic fund-raising bash” at the El Rey Theatre, featuring musicians who have appeared with Cirque de Soleil and a host of other world music performers. “The theater holds 771 people, and we’re charging $15 each; hardly a $1,000-per-plate dinner,” Della Vecchia said.

A coalition of local business and government officials, recognizing the vast economic potential of three new Metro Red Line stations opening on June 24, are aggressively moving to fully exploit that potential. Tourism marketers are already aggressively talking up the Red Line with out-of-town meeting planners and tour operators, while many of the attractions in Hollywood and Universal City are participating in or exploring joint marketing opportunities. Among the options: discounts on each other’s attractions and reduced fares on the Red Line itself. “So many tourists are afraid to drive around the city,” said Saul Leonard, a Century City-based hospitality industry consultant. “Once people hear they can get to these places by rail, it will greatly enhance these already popular attractions.” While Metropolitan Transportation Authority officials have been touting the expected increase in total ridership on the Red Line which now stands at more than 60,000 people a day the subway is finally promising real economic benefits that go beyond reducing local traffic congestion. An increase in local riders merely redistributes dollars within the region; getting out-of-town tourists to spend more money here means new dollars altogether. This especially holds true for downtown convention-goers, many of whom probably haven’t even considered going to a place like Universal Studios; now that the Red Line is opening, they can get there quickly and conveniently, without renting a car. That’s why the MTA, the L.A. Convention and Visitors Bureau, the Hollywood Chamber of Commerce and the North Hollywood/Universal City Chamber of Commerce are working so hard to convince tourists to take the Red Line to visit Hollywood, Universal Studios and other attractions along the way. The newly completed, 6.3-mile extension of the Metro Red Line will enable L.A. visitors to zip from Universal Studios to Hollywood the county’s two most popular tourist attractions in 10 minutes flat, and from downtown to Universal Studios in less than 30 minutes. Better yet, they won’t have to cope with any traffic or worry about where to park once they get there. The extension opening June 24 has three stations: Hollywood Boulevard at Highland Avenue, where tourists already flock to Mann’s Chinese Theatre and TrizecHahn Corp. is building a $500 million retail center; Universal City, home of the Universal Studios Hollywood tour, CityWalk and the Sheraton Universal Hotel; and Lankershim Boulevard at Chandler Avenue in North Hollywood, right next to the burgeoning NoHo arts and theater district. Opening ceremonies for the three new stations are scheduled for June 24, nearly 14 years and $4.5 billion after construction of the 17.4-mile Red Line began. All Red Line trains will be free for the first weekend; after that, the fare goes to $1.35. Discount packages In anticipation of heavy tourist usage, the MTA last year came out with a one-week, $11 pass for unlimited rides on all MTA subways, light rail and bus routes. The MTA has also taken out ads in travel publications, both in the United States and abroad. The ads picture maps of L.A. showing the proximity of the stations to major attractions like theme parks, museums, theaters and hotels. “We’ve gotten inquiries from as far away as Norway and the United Kingdom,” said Warren Morse, the MTA’s deputy executive officer for marketing and customer relations. The LACVB made a big marketing push for the Red Line at last month’s meeting with international tour operators. “We wanted to let them know that, with the opening of this Red Line extension, it’s possible to see many of the major tourist attractions in L.A. without a car,” said LACVB spokeswoman Carol Martinez. And, Martinez said, that doesn’t just include Universal Studios and Hollywood, but also Olvera Street and even the Queen Mary in Long Beach (via the Blue Line). Until now, tourists who didn’t want to drive usually had to sign up with group tours to see most of L.A.’s major sights and attractions. But, Martinez said, there has been an increasing trend among tourists worldwide away from group tours, meaning many tourists who didn’t want to drive have stayed away from L.A. altogether. Another step the LACVB has taken was to contact CityPass, a Bay Area firm that publishes booklets that offer package discounts for tourists at various attractions in U.S. cities. The firm published its first Hollywood booklet a month ago, in anticipation of the Red Line extension; it’s now trying to sell them to tour operators around the globe. The Hollywood CityPass costs $50 and includes discount tickets to seven area attractions: Universal Studios, the Hollywood Entertainment Museum, the American Cinematheque at the Egyptian Theatre, the Petersen Automotive Museum, the Museum of Television and Radio, the Museum of Tolerance and the Autry Museum of Western Heritage. CityPass President Mike Gallagher said he had been looking to offer a CityPass booklet in L.A. for more than two years, but that it didn’t make sense without an easy way to get to Universal Studios. “It’s Universal Studios that makes the whole package more attractive,” Gallagher said. Universal on board Universal Studios Inc. officials say they are offering a variety of discounts during the subway’s opening weekend for the theme park, the new Imax theater and several of the restaurants on CityWalk. After that, they’ll wait to see how the Red Line ridership develops before committing to any long-term marketing plans. A Universal spokeswoman noted that the marketing department at Universal Studios already has installed promotional materials at the L.A. Convention Center aimed at luring convention attendees. The nearby Hilton Universal City and Towers hotel also recently began promoting its soon-to-be easy access to downtown convention-goers. “The Red Line will make all the hotels and attractions around here far more viable for people going to conventions, especially the larger ones that fill up most of the rooms downtown,” said Dawn Lindner, Hilton Universal’s director of sales. But Lindner said it will probably take several months for the full effect of the Red Line to be felt. “It’s all going to depend on how much publicity it gets in other cities,” she said. “It might take a few months for people in those cities to catch on that L.A. has a subway that can get you to many of the major attractions.”