D

Waste Control Specialists CEO William Lindquist Didn’t Dig Our Harold Simmons Story

In the February issue of the “print product,” Laray Polk wrote a story about Harold Simmons and one of his companies, Waste Control Specialists (WCS). The story is titled “Dallas’ Evil Genius,” referring to the clever way in which Simmons has figured out how to get the federal government to pay him to clean up his own mess using WCS. I received a letter in response to the story from the CEO of WCS, William Lindquist. As you might imagine, he didn’t like the story. After the jump, you’ll find his letter, with rebuttals from Laray in blue:

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Dallas Cowboys Sue Everyone!

Yesterday I told you about the Cowboys suing the Dallas Center for Cosmetic Dentistry for backing out of a suite lease valued at $42 million. The Cowboys aren’t just suing the dentists. All of the following suits were filed on February 2. In each one, the Cowboys are looking to recover the full amount of the lease that the customer backed out of.

CRBE Inc. for $7.5 million
Sports Nutz of Texas, $4 million
Halek Energy, $3.5 million
Reel Entertainment Group, $4 million
BWC Properties; BWC Capital Interests, $4 million
Clearview Systems, $6.5 million
Copper Oaks Properties, $3 million
Just Da Boyz, $3 million
Architel Holdings, $4.8 million owed under the lease.

You know the saying: a million here, a million there. Pretty soon, you’re talking about real money. Just from the lawsuits I’ve seen from that one day, February 2, the Cowboys are out $82.3 million. I’m sure there are other people who are trying to back out of their suite leases, too.

Trend Report: Cosmetic Dentistry Takes Downturn in DFW

I can only assume that people in Dallas aren’t getting their teeth whitened and straightened as often as they were before the economy went into the tank. I make this assumption based on the following lawsuit:

Cowboys Stadium LP
v.
Dallas Center for Cosmetic Dentistry PA
2/2/2010 352-243435-10
Defendant agreed to pay $2.1 million a year to lease six Cowboys Stadium suites for 20 years. Defendant backed out of the deal by refusing to pay the first year’s rent. Plaintiff seeks the entire $42 million owed under the lease.

At one point, apparently, the Dallas Center for Cosmetic Dentistry was doing well enough to commit $42 million to watching Cowboys games. But now? Not so much. What’s next? Plastic surgeons pulling out of their contracts, too? The horror.

Did Mayor Leppert Get His Convention Numbers Wrong?

Yesterday I told you, with the help of a trusted FBvian who was in attendance, that at a speech to the Dallas Assembly, Mayor Tom Leppert said that as a result of the recently concluded meeting in Dallas of the Professional Convention Management Association, 30 new conventions have been booked in Dallas, with a value of $65 million. The numbers seemed high to me. I asked the folks at the CVB to verify them. Phyllis Hammond, the VP of PR there, said she wasn’t at the speech and punted to Chris Heinbaugh, the mayor’s chief of staff. Here’s what Heinbaugh said:

I was not at the event [yesterday] morning and I don’t know what was said or that the Mayor was heard correctly. But I can tell you the figures he’s been using since PCMA: Bookings are very strong. Omni says they already have $13 million in bookings and about another $50 million in the pipeline, and that was before PCMA. Also, the DCVB says they have booked 4 major citywide conventions (the really big ones) with an estimated economic impact of $72 million. 6 to 7 more citywides in the pipeline for just this quarter.

Now, the FBvian who attended the speech yesterday is not a working journalist. But I know him to be a trustworthy fellow. And he was taking notes. I’ve asked the Dallas Assembly folks if they have videotape of the speech. I’ll determine with certainty what the mayor said. But bottom line: 30 new conventions haven’t been booked since the PCMA meeting here.

Update: The Dallas Assembly folks tell me they didn’t videotape the speech, and they referred me back to Chris Heinbaugh. It appears the wagons are circled. To put it charitably, then, Mayor Leppert misspoke at the luncheon — and it was a pretty gross error in misspeaking.

Inside The Mind Of A Serial Giver

You might call Hal Brierley the un-Gekko. When TACA distributed $1 million in grants to 35 local arts groups last night, Hal and his wife Diane were $100,000-and-above sponsors of the giveaway. Which wasn’t an unusual situation for the Brierleys, one of the most charitable couples in town. Why do they do it? Three big reasons, says Hal (pictured), the chairman of Dallas-based e-Rewards: Ever since he got a scholarship to the Harvard Business School, he’s been conscious of the need to “give back.” The couple have no relatives to leave their dough to. And when they moved years ago from Massachusetts–which had a 10 percent income tax–to Texas, which has no income tax, they decided to allocate their “tax” dollars to charity instead. “It’s my feeling that conspicious consumption,” Brierley says, “ought to be replaced by conspicuous philanthropy.”

Convention of Convention Managers Sparks New Business for Dallas

An alert FrontBurnervian attended the Dallas Assembly luncheon today and has this to report about the apparent success of the recently concluded Professional Convention Management Association shindig in Dallas:

Mayor Leppert spoke to the Dallas Assembly at lunch today, saying that as a result of the convention planners coming to town the other day, the bureau has already booked 30 new conventions worth about $65 million. Not bad, eh?

I’ll ask the CVB if they can release a list of those 30 new conventions and get back to you.

JPMorgan Chase Ponying Up $3M for Deck Park

You can get off the edge of your chair now. Supporters of the Woodall Rodgers deck park have just announced that JPMorgan Chase will donate $3 million to help complete the park, which isn’t too far from downtown’s JPMorgan Chase Tower office building. SweetCharity tells us the Woodall Rodgers Park Foundation made the announcement at a news conference attended by the likes of Mayor Tom Terrific; Chase’s Elaine Agather and the bank’s top man, CEO Jamie Dimon; and the foundation’s Jody Grant. As part of the deal, Chase’s name will grace the park’s “promenade.” Plans call for the 5.2-acre park to cover the freeway between St. Paul and Pearl streets, linking Uptown to the downtown Arts District. Other financing’s coming from TxDOT ($20 million), the city of Dallas ($20 million) and federal stimulus dough ($16.7 million).

Has Texas Become a Pay Toilet?

Late last week, State Senator Eliot Shapleigh, who represents El Paso, put up an article on his website in which he calls into question the wisdom of letting a company called Waste Control Specialists bury tons of waste (nuclear and otherwise) in West Texas, in a spot where scientists have serious concerns about possible contamination of groundwater. Among other sources, Shapleigh links to Laray Polk’s story about Waste Control Specialists and its owner, Harold Simmons, which you can read in the current issue of the “print product.” We’ve received a letter from the CEO of Waste Control Specialists, which we’ll share, along with a response from Laray, in this space before too long.

Irving Mayor to Give Exxon CEO a Call About Move

When I spoke with him on the phone this morning, Irving Mayor Herbert Gears hadn’t heard about today’s Houston Chronicle report that Exxon Mobil is drawing up plans for a big corporate campus down near The Woodlands.

The news has led to speculation that the world’s biggest company may be looking to relocate its corporate headquarters away from Irving.  Gears said he expects that if they were planning a move he would have been alerted to the possibility before it were reported in the media.

“I have not had any indications whatsoever that they’ve been thinking about moving their headquarters anywhere,” he said.  “We certainly would be sad to lose them, but we’re going to do everything we can to make sure we prevent that.”

“I’ll make a call as soon as I get off here. I’ll call Rex [Tillerson, CEO of Exxon Mobil].”

Edwards Pal Touted Cash Over Plastic

There’s a great local quote in this morning’s story about John Edwards’ handlers scrambling to funnel hush money to Edwards’ mistress, Rielle Hunter. It evidently originated with Edwards’ old pal Fred Baron, the Dallas plaintiff’s lawyer and Democratic Party rainmaker who died in 2008:

Other distributions came from Edwards’ former campaign finance chairman Fred Baron, including a FedEx envelope of $1,000 and a note that read: “Old Chinese proverb: Use cash, not credit cards.”

Leading Off (1/29/10)

1. I was going to comment on Dallas ISD’s proposed fix for four high schools that face possible closure by the state. They’ll create magnet programs at each of the campuses to attract students that could boost the test scores and graduation rates (the DISD board seems to know it’s about “the inputs.”) I was going to say that this solution sounds like a trick to beat the system. Then I read the final paragraph of the DMN piece: “In addition, state records show that all four schools would not have passed Texas’ academic standards if they did not get statistical help from the state. Various formulas allow for schools to pass the standards even if too many students flunk state tests.” So, since districts apparently have access to a magic calculator, is there really a state accountability system left to trick?

2. Would this middle school student have been arrested any place other than in the Park Cities? Without knowing exactly what the threat was, it’s hard to say. But can we all agree that Fox 4 needn’t have required poor Sophia Reza to stand in the rain last night, outside a closed school, to report on an incident that occurred last week? Let’s free TV reporters from the tyranny of the wholly unnecessary live shot.

3. I was a little amused by the billboard. I find the commercial a little icky. But it’s all pretty sophomoric.

Ross Perot Jr. Says Bankers Deserve Their Salaries

He’s at the Davos World Economic Forum in Switzerland, and the Wall Street Journal asked him about the mood there. “Better than last year,” he replied.

He also said the heads of JPMorgan and Goldman have earned their pay.

“If shareholders don’t like the salaries, don’t buy the stock.”

Women’s Wear Daily Looks at Neiman’s 2010

Women’s Wear Daily says there are “some signs of life” for Neiman Marcus after a rough 2009. They note that same-store sales in December were up 4.9 percent. Of course that’s only an improvement from the big 31.2 percent drop they took the previous December, 2008.

Our latest D CEO cover story takes a hard look at prospects for the luxury retail icon. CEO Burt Tansky declined to be interviewed for the article, but here’s what he told analysts in December: (more…)

All Eyes on iPad, Jobs at Apple Store

PR whiz John Shore was at the Apple store on Knox this morning just as Steve Jobs was on the West Coast announcing the Second Coming, er, Apple’s new iPad. John says the Apple CEO’s presentation was broadcast live at the store, where everything came to a screeching halt until it was over. Anybody heard anything yet about pricing, availability, etc.?

Pricey Rentals For All-Star Partiers

Look for a lot of cash to change hands–and a whole lot of “non-family-style” hard partying to happen–when DFW hosts the NBA All-Star Game Feb. 14. Last night on WFAA-TV, Dale Hansen predicted lines around the block at local strip clubs next month, for example. We’ve heard that Realtors are scrambling to locate super-luxe party houses in non-residential areas–quick freeway access preferred–for short-term rental to celebs and fans that weekend. Dallas Craigslist is going wild listing special All-Star game rentals ($3,500 a night for a two-bedroom condo in Oak Lawn, $2,250 for a four-bedroom “contemporary,” $2,000 for a one-bedroom downtown, etc.). And the owner of one local town-car outfit says to expect a going rate of $1,500/day for “small” limos during the festivities.

Las Colinas As Development Model

Speaking of cities of the future, Indianapolis is trying to get in on the game with their new airport development, which is being styled as an “aerotropolis.” One of their models: the “postmodern urban development” called Las Colinas.

Gears Wants Philly Over ‘Boys in 2011 Super Bowl

Herb Gears, the shoot-from-the-hip mayor of Irving, is probably not the only local official to think it. But he’s the first we’ve heard say publicly that it would be better business-wise if the Dallas Cowboys don’t make it into Super Bowl XLV, set to be played at Cowboys Stadium in Arlington. “We don’t want the Dallas Cowboys in the [2011] Super Bowl,” Gears said during last week’s annual State of the City Address. “I need somebody from Philadelphia, or somewhere, who will stay in a hotel in Irving.” Dallas’ press contingent and fan base are already living here, sure–we get it, Mr. Mayor. But, did you have to say the Eagles?!

Two Hours With The Irrepressible Mayor of Irving

Irving Mayor Herbert Gears proudly tells people that The New York Times once called him a “combination of a Baptist preacher and a used-car salesman.” You couldn’t quite shake that image last night when the shoot-from-the-hip mayor delivered his fifth annual State of the City Address to a crowd of 600-plus at the Westin DFW Airport hotel. During a talk that lasted two hours–two hours!–Gears reviewed the city’s many accomplishments, but made the presentation bearable with a delivery that would have done Larry the Cable Guy proud.

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Kyle Bass Looks to Japan for His Next Big Score

Hedge fund operator Kyle Bass has done well for himself. I spoke this morning to a fellow who had recently visited Bass’ out-of-town getaway, where he has built a top-notch private golf course. We wrote about Bass in April 2008, when he turned a $110 million investment into $700 million by shorting firms that were caught up in the subprime mess. Now he has his sights set on countries carrying a lot of sovereign debt. He figures prominently in a story about countries that might go bankrupt in the current issue of Forbes. Here’s the lead of the story:

Kyle Bass has bet the house against Japan — his own house, that is. The Dallas hedge fund manager (no relation to the famous Bass family of Fort Worth) is so convinced the Japanese government’s profligate spending will drive the nation to the brink of default that he financed his home with a five-year loan denominated in yen, which he hopes will be cheaper to pay back than dollars.

Bass has made some investments that didn’t work out. He’s not infallible. But a lot of people are watching the bets that his Hayman Advisors is laying now.

Parkland’s Bum Rap on Executive Pay

Many people, including even Ross Perot, are upset with some of the huge bonuses paid out on Wall Street. But the incentive pay for execs at Parkland Hospital, including CEO Ron Anderson, seems like a different matter entirely. The hospital not only reduced ER wait times, it also improved billing processes and boosted net income. That’s called performance. Why would anyone begrudge these payouts–or salary increases for the rank-and-file–especially since Parkland is struggling valiantly to cope with patients, and social problems, the rest of us would just as soon ignore? (Anderson and Parkland, BTW, are scrutinized in a great story by Charlotte Huff in the new issue of D CEO.)

Mavs CEO: Two More Good Years For Dirk

While Dirk Nowitzki of the Mavericks may have rescued NBA basketball in Dallas, nothing lasts forever. “Don’t tell Mark [Cuban], but we have two years left before Dirk starts to slip a little,” Mavs president and CEO Terdema Ussery told a crowd this morning at The Fairmont Hotel. Ussery (pictured) made the remark about Nowitzki, who turns 32 in June, during a keynote speech for The Real Estate Council Foundation.

Texas on Fortune’s ‘Best Companies to Work For’

Fortune magazine released its list of the best companies to work for today.  Four North Texas companies made the cut: Shared Technologies (No. 33), Container Store (No. 36), TD Industries (No. 39), and Balfour Beatty Construction (No. 76).

When I read the DMN’s headline about the story, “Texas has 2nd most firms on Fortune’s ‘best places to work list,’” it struck me that that’s one of those statements that sounds like it’s significant, but isn’t really.

Texas is the second-biggest state, in terms of population. It had the second-most companies on the list. California is the biggest state. It had the most companies. New York is the third-biggest. It had the third-most companies. That’s all exactly as you would expect. Looks like that’s been the state of affairs for the last few years, at least.

What Would Mr. Stanley Do?

Have big luxury retailers like Neiman Marcus lost their focus? Former Neiman’s exec Tony Briggle thinks so. In an in-depth look at Dallas’ battered Neiman Marcus Group in the latest D CEO magazine, Briggle says: “You walk into the second floor of Neiman’s and see racks and racks of $10,000 dresses marked down to $5,000–and pretty soon they begin to look like the $500 dresses you’d find at Dillard’s. By compromising the way they display to customers, they’re turning the customers off.”

In the main D CEO story by Diana Kunde, a former business reporter at The Dallas Morning News, Neiman’s current management style is compared to management under the late, great Stanley Marcus. (For much more on the legendary Mr. Stanley and Neiman’s, BTW, check out a fascinating new book by Thomas E. Alexander, a former Neiman’s executive VP. Alexander will talk with author/journalist Rena Peterson about his book, Stanley Marcus: The Relentless Reign of a Merchant Prince, on Jan. 31 at Fair Park.)

As Alexander, Briggle, and others have pointed out, Mr. Stanley was a tough taskmaster who pushed his staff to be creative, insisted on consistency, truly listened to customers, and worked tirelessly to make shopping at Neiman’s a unique experience. Crazy thought: maybe the current regime should re-dedicate itself to his example.

Exxon CEO Rex Tillerson on Fracking Natural Gas

The CEO of oil giant Exxon Mobil  told a House subcommittee today that fracking (hydraulic fracturing) is necessary to help America capture as much natural gas as we can from the ground. Rex Tillerson cares about the issue because of his company’s merger with XTO Energy.

Opponents have some concerns about the practice, which involves pumping chemicals into the ground to aid the extraction of natural gas.

City Staff Urges Ethics Exemption For Tax Districts

So. Based on what the DMN had to report:

1. The city of Dallas gave three private developer groups governmental powers through the creation of “municipal management districts.”
2. City staff, and the economic development committee, decided that greater power doesn’t come with greater (ethics) responsibility.

It looks like the issue isn’t settled. Councilman Ron Natinsky, who was as enthusiastic as any member of the council in authorizing these districts, promised to take his concerns to the full council:

“We’re exempting our appointees to the MMD boards from all [city] ethics responsibilities … I think it sends a somewhat bad message that we’re approving the appointments of people to a board and then we just totally said you don’t have to – in any way, shape or form – abide by the city’s ethics codes.”