D

Reviving Biofueler Plans Dallas Locations

Never underestimate the ability of businesspeople to reinvent themselves. Case in point: the folks behind Dallas’ Evolution Fuels Inc. (formerly Earth Biofuels), best-known for co-owning Willie’s Place at Carl’s Corner Truckstop near Hillsboro. After nearly going bankrupt two years ago as the biofuels market was skidding downhill, the company says it has paid off tens of millions of dollars in debt and will focus now on selling “mid-range ethanol blends” at retail fueling stations/convenience stores.

Kit Chambers, Evolution’s executive VP, says the outfit has signed letters of intent to open two Dallas stores–at Travis/Knox and Lemmon/Oak Lawn–and is aiming to acquire other fueling stations in Alabama and Mississippi. In addition, says Kit (pictured), a new entity called Evolution Resources will launch soon with an ambitious plan to “repurpose existing assets to produce cellulosic ethanol.”

Guess it all makes sense. While the biofuels biz in general has had its problems, ethanol is one biofuel segment that the government seems intent on propping up.

Doc Gallagher Has History With Financial Regulators

Sorry we didn’t have this up last week, before “Doc” Gallagher was one of the featured speakers at the Jewish Community Center of Dallas’ Senior Expo.

But if you saw him there, or you’re planning to attend one of his free sessions this month at Sonny Bryan’s in Richardson, Golden Corral in North Richland Hills, or the Highland Park Cafeteria in Dallas, you might want to check out this piece from the latest D CEO.

One aspect of the story that didn’t make it into the final piece, because of space considerations, is that much of the marketing of “the Money Doctor” (who buys time weekly Saturday mornings on KAAM-AM 770) is aimed at senior citizens. He’s appeared on the cover of Mature Texan (with Ebby Halliday), for instance. And he’s done  shows on topics like the dangers of nursing homes, in addition to warning his listeners about the dangers of working with “Big Broker.”

He’s absolutely right that you’ve got to be careful from whom you take financial advice.

Warren Buffet Goes All-in With BNSF Purchase

Mega-investor Warren Buffet used gambling terminology in describing his $34 billion purchase of Fort Worth-based railroad Burlington Northern Santa Fe: “Most important of all, however, it’s an all-in wager on the economic future of the United States,” said Mr. Buffett. “I love these bets.”

It certainly seems like heartening news when the country’s second-richest man is willing to continue playing his hand. But am I the only one who gets nervous when our entire economic system is likened to a poker game?

Dallas-Fort Worth 5th Strongest Metro Area

Using rankings set by Brookings Institution, BusinessWeek presents the 40 strongest U.S. metropolitan economies. We rank No. 5, given props for being “sprawling, vibrant, and diverse.”

But we’re behind two other Texas cities: San Antonio (No. 1) and Austin (No. 2). And we’re behind two other areas in our region of the country: Oklahoma City (No. 3) and Little Rock (No. 4)

Leading Off (10/30/09)

1. The Highland Park Town Council doesn’t need any of your fancy studies, any of your new-fangled objective measures, or your pointy-headed cost-benefit analysis. They know the truth: Even looking at the possibility of maybe someday thinking about eventually enacting some sort of voluntary conservation ordinance to preserve houses in one of this area’s most historic neighborhoods, that alone will cause home values to plummet. Former Mayor Gifford Touchstone says so, and his word is good enough for them.

2. Dallas Police may need to review the finer points of the Lock, Take, Hide program after a SWAT supervisor’s vehicle was burgled. In related news, D CEO executive editor Glenn Hunter will no longer drive down North Fitzhugh Avenue.

3. Dallas attorney Ralph Janvey, the court-appointed receiver in the R. Allen Stanford case, is looking to recover $1.5 billion for defrauded investors. The lawyer for the investors says Janvey’s plan is “something of a fantasy.” Discussion topic: Is it more or less of a fantasy than seeing a fleet of electric cars on the roads of North Texas next year?

Super Bowl XLV Workshop Pumps Up Local Business Owners

   That’s Henry Yiu and Katherine Dress of Plano-based Pacific Dynasty International. They were among the more than 800 small business operators who showed up for the first workshop of the Super Bowl XLV Host Committee’s Emerging Business Program at the Will Rogers Memorial Center in Fort Worth this afternoon. Henry and Katherine’s company imports a whole bunch of LED devices. You’ll note the row of lights attached to the bill of Henry’s cap, and the scrolling electronic message sign hanging around Katherine’s neck. The glowing orbs that they’re holding up are LED-toting centerpieces for tables.  They’re hoping to get their products used at Super Bowl-related events.

I also met Barry King, a former creative director with Radio Shack’s in-house ad department, who has spent the last several years selling barbecue sauce made from a recipe he invented 20 years ago. His Fort Worth-based brand is Brothers, and you can find it at Central Market. “If I get my sauce in your mouth, game over,” Barry proclaimed confidently. He’s hoping to get his products into what’s sure to be a host of gift baskets and party favors handed out at events throughout the week leading up to the Feb. 6, 2011, game.

What Barry and Henry and Katherine and what seemed like a sea of PR people on the first couple rows of the big audience heard wasn’t some dry Power Point presentation going over the particulars of the procurement process. This is the North Texas Super Bowl, and it’s clear that our local host committee plans to do everything big. Even its business workshops. (more…)

How to Make Money Off Super Bowl XLV

I previously mentioned that the Super Bowl XLV Host Committee is having its first Emerging Business Program workshop tomorrow at the Will Rogers Memorial Center in Fort Worth.

One correction: While the Emerging Business Program is only for minority- or women-owned businesses, any local business owner or entrepreneur is invited to attend the first workshop. Participants can learn about the procurement process for providing Super Bowl-related services.

With between $300 million and $500 million in local economic impact expected from the big game in 2011, there are lots of pie pieces available.

Will TXI Be Sold and What Does That Mean to Your Air Quality?

As a living, breathing organism, you are no doubt closely following recent developments at cement maker TXI. Having read our story from 2005 about how the company fouls our air in North Texas by belching forth pollutants in Midlothian, you are wondering what it means to our air quality now that a rogue group that controls 10 percent of TXI has gotten elected three of its people to TXI’s board in what is being described as an idictment of current management by the shareholders. Right?

Well, I asked Jim Schermbeck of Downwinders at Risk about all this. Schermbeck is a watchdog who has been hounding these cement makers in Midlothian to clean up their act for years. I found his take on the situation instructive. In short, he thinks the new guys on the board might be getting ready to try to sell the company. Read on only if you have lungs:

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How Much Will Ed Bailey Make When He Sells 63 McDonald’s?

You, of course, know who Ed Bailey is. He owns the Patrizio restaurants and the new Bailey’s Prime Plus. He’s also one of the biggest McDonald’s franchisees in the country — for now. Bailey is set to sell his 63 restaurants, probably by year’s end. Which got us to wondering what 63 McDonald’s might be worth. I asked someone who’d know. Here’s his back-of-the-envelope ciphering:

These types of franchises are typically valued at 5 to 6 times EBITDA. A McDonald’s unit will gross around $2.2. This is huge volume. The average sale per person is $3, and about 88 percent of that is the cost of sale. So 12 percent of $3 is 36 cents. That’s EBITDA per customer. 2.2 million divided 3 equals 733,333 customers per year. 733,333 times 36 cents gives you EBITDA of $264,000. $264,000 times 5 equals $1,320,000. Obviously there are many other factors, but $1.3 million is probably very close.

Let’s round up, then, and call it $80 million. To Ed Bailey, we say: nice.

Correction: The answer was correct, but the math was a bit hinky when I first posted this; it has been corrected.

Incompetence Reigns in Rick Perry’s Texas

As the unemployment rate hits a 22-year high, local food banks are sending out word to anyone who will listen (including me) that they are at the breaking point. Not only did the recently laid-off have a hard time getting benefits — thanks to Perry’s initial refusal of stimulus funding (he quietly reneged later) – now they are having a hard time even getting food. The Texas food-stamp program is in disarray.

Really, I’m telling you, he’s been there too long. At some point Texas needs a governor who is capable of more than looking good on TV.

Experiment in Good Urbanism Goes Bad; Or, Why I Won’t Be Taking DART Anymore

Krista, I hate piling on a person or an agency when they’re down, but I’ve got another big bone to pick with DART. Here it is: Like a good little fledgling urbanite, I vowed to make a habit of taking the light rail from home to our new downtown offices–and did so last week. The upshot? The very first day I parked the family vehicle at the White Rock transit station–less than a mile from our house in Merriman Park–criminals ripped away at the passenger-door lock, ransacked the car and made off with a bunch of stuff, including the entire center-console bin. This, after I’d parked outside our house in our driveway every night for the last 9-plus years–and never had the car touched once. Now, I’m aware this sign looms over the White Rock park and ride facility: “Not Responsible for Theft or Damage to Vehicles.” But I’m sorry; that ain’t good enough. Why shouldn’t DART have to secure its parking facilities for its paying customers? Until it does, I’m staying off their trains and out of their lots.

Simmons Says U.S. “Full of Hate for Jews and Muslims”

Hip-hop pioneer Russell Simmons brought his unique spin on business, politics, race, religion and philanthropy to Texas this past weekend. Friday night he appeared at Matthew Trent Jewelry for his Diamond Empowerment Fund nonprofit; Saturday he was in Houston for a meeting of his Hip-Hop Summit Action Network. Before the Trent event (pictured: Simmons and an admirer there), we sat down with the controversial Def Jam Records/Phat Farm clothing founder for a provocative, wide-ranging–and lengthy–Q&A. Among the topics discussed: Simmons’ latest business ventures, the state of race relations in the U.S., why he’s a big fan of Minister Louis Farrakhan–and what Barack Obama could learn about being president from George W. Bush.

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Texas Has 12th Highest Sales Tax in the Nation

Here are the results of a study by the Tax Foundation. (The map  says we are #11 but it also says Nevada is #11; Nevada wins, we’re 12.)

Simmons: Rush Had Right to Bid for NFL’s Rams

Russell Simmons, the businessman, philanthropist and hip-hop impresario, has done a lot in his time to bridge America’s white/black racial divide. Now Simmons (pictured) is defending conservative commentator Rush Limbaugh, who was just forced out of a bid to buy the NFL’s St. Louis Rams for allegedly making racist remarks on his popular radio show. “I don’t know, he should be able to buy” into the team, Simmons said in Dallas today. “Yeah–why not? I think it’s up to the players to play for him or not! I don’t think he was really making policy. Americans have a right to their own opinions.”

Simmons’ take was somewhat surprising, since it came just days after a piece he wrote for the Huffington Post ripped people like Limbaugh for their “nasty” and “hateful” views on things in general. “One thing I think I did wrong in that article, I said ‘fearful and angry people like Rush Limbaugh and Glenn Beck.’ I wish I hadn’t done that,” Simmons said today. “Because I’m friends with [FOX honchos] Rupert Murdoch and Roger Ailes, too. I think they’re wonderful guys and they have an opinion. I think some of it–their choices–are based a little more on fear; that’s my opinion. Some of what they believe is important and useful, and it’s different from what I believe, and more important and useful than my views on certain subjects.”

Simmons was in town for a pre-event reception tonight for Dallas Rocks, a Nov. 14 fundraiser here for his Diamond Empowerment Fund nonprofit, which benefits African communities where diamonds are a natural resource.

Company To Celebrate Facial Hair at State Fair

Here’s the chance you’ve been waiting for, gents: to “Be a Wahl Man.” That’s the slogan of shaver-maker Wahl Home Products, which is bringing its Let It Grow tour to the State Fair of Texas through Sunday. The tour’s purpose: to help men “get a handle on their facial hair” with free trims–and to find the best beard, mustache, and goatee in America in the Wahl Man of the Year photo contest. These people aren’t just about celebrating facial hair, though. For every Man of the Year contest entry, the company’s donating $1 (up to $5,000) for the fight against prostate and testicular cancer. Back to you, Zac. Don’t let us down!

Leading Off, No. 3, Ctd.

Tim, you’re right to be skeptical about DART’s sudden about-face on the bus deal. To me it’s all about a win-win for Mayor Tom Terrific: If and when he does run for higher office, his green bona fides (as per this arrangement) will be beyond reproach; plus, it won’t hurt for Leppert to have ‘ol deep-pockets Boone in his corner. While I guess it makes sense to support compressed natural gas when the Barnett Shale’s in your backyard, should that be the deciding factor? Besides diesel’s advantage on bus cost, the executive director of the Maryland-based Diesel Technology Forum points out that there’s an “infinitesimal” difference between clean diesel and natural gas in terms of air pollution. Allen Schaeffer also notes the big-time “retrofitting” costs for natural-gas bus systems, and says that 80 percent of new-bus orders nationally are going the clean-diesel route. Then he adds this kicker: Transit decisions in favor of natural gas are inevitably “influenced by ‘deals’ arranged with the gas suppliers … when in many cases the economics are not favorable” for the natural-gas option. Could that have anything to do with DART’s new fuzzy math?

Eolas Technologies Sues North Texas Companies For Infringement

Thanks to the Plano Star-Courier, I am now aware of last week’s news that Eolas Technologies sued a bunch of companies in federal court in Tyler for patent infringement. Among the companies being sued are Plano-based Perot Systems, Frito-Lay, and JCPenney. Texas Instruments is also among the defendants.

The suit centers on “technology that enables Web browsers to act as platforms for fully interactive embedded applications.” Looking around online for a simple explanation of what that means, I found a sketch in this article. The Star-Courier article, which is much too reliant on Eolas’ own press release, mentions that the company won a judgment of more than $500 million against Microsoft in an earlier patent case, but fails to mention that after appeals the case was settled, presumably for a smaller amount.

But there seems to be a vocal faction on the Web, among those who actually understand this technology, that claims Eolas didn’t really invent anything and is just a patent troll. I don’t know who’s right here. But I have been told that the Eastern District of Texas, which has a disconcertingly simple website itself, is the place to be for patent trolls.

Anders on AT&T PAC: Where’s All the Grass?

SweetCharity and I picked up Helen Anders of the Austin American-Statesman (formerly Helen Bryant of the DMN) early this morning for the dedication ceremony of Dallas’ $354 million AT&T Performing Arts Center. (Helen’s staying with her daughter in Arlington.) Local movers and shakers like Tom Leppert, Jim Oberwetter, Bill Lively, Michael Hinojosa and Jan Strimple turned out in force for the outdoor event, which took place in chilly, foggy weather more reminiscent of San Francisco than Dallas. When the speakers mentioned the grandeur of the center’s “public park” during the ceremony, Anders kept whispering, “What park?!”–a theme she continued in her interesting blog post about the event. SweetCharity weighed in with a report on all the hoopla as well.

D CEO Crew Discovers The New Al Biernat’s

New offices downtown, first lunchtime in the new digs. The DMA/Seventeen Seventeen was closed and Dickey’s is too familiar, so we stumbled into Harwood 609 at … 609 Harwood St. It’s big–looks like it could seat 500–with an over-the-top Tiki theme and glittering disco balls. Not surprising, since the joint (pictured) turns into an old-school R&B club nights and weekends. (The Temptations played there, and they’re shooting to land The Blue Notes–minus Harold Melvin–for New Year’s). Our friendly waiter Quincy explained how the $5 lunch special included soup and salad, an entree and two sides, a drink and dessert. The lovely and talented Kristiana and I opted for well-done burgers with fries, while Jason tried the Southwest chicken sandwich. Total tab: $16.24–and the grub wasn’t half bad. Still, I think there’s a male/female split on a return trip. Kristiana said Harwood 609 looked like an off-strip Vegas lounge and won’t be going back for lunch. Jason and I liked it. I mean, where else can you hear “Cowboys to Girls” (The Intruders) on the sound system at noon? Back to you, Nancy.

Big Thought Backers Revel in Beating New York

The rivalry between Dallas and New York–on and off the gridiron–was a theme this morning when local bigwigs like Mayor Tom Leppert, DISD Superintendant Michael Hinojosa and former Cowboys fullback Daryl “Moose” Johnston gathered to pump up the Big Thought group, which supports local education. A few years ago, the Dallas nonprofit snagged upwards of $8 million for its Thriving Minds program from The Wallace Foundation, beating out some New Yorkers for the dough. Now Wallace is pondering whether to give Big Thought, led by CEO Gigi Antoni, another $4.3 million. At a breakfast for nearly 100 people at the Crescent Club, Hinojosa told the crowd, “I don’t want to tell Jerry Jones what to do, but we want to beat the [New York] Giants, so he might want to hire Gigi as his general manager.” Johnston piled on a few minutes later. “I grew up in western New York and played for the Cowboys,” he said, smiling. “So anytime we can get one up on the Giants–or knock Manhattan down a few pegs–I’m all for it.” The foundation is scheduled to make its decision next week.

Want to be on the Field at Super Bowl XLV?

The NFL and Monster.com are sponsoring a contest in which they’re looking for a NFL Director of Fandemonium. Among the prizes for the winner is getting to “join the coin toss ceremony” at Super Bowl XLV at Cowboys Stadium, on Feb. 6, 2011.

Darwin Deason’s $800 Million Payday

That’s how much he’ll make on his share of ACS in the sale to Xerox, according to this analysis at Muckety.com. The article also refers back to Tim’s 2003 piece on Deason (”Lifestyles of the Rich and Shameless“), which was memorable for many reasons, not the least of which was the fineness of its opening paragraph, which needs to be quoted in full:

Accounts differ as to what exactly happened aboard the Cartoush II during its pleasure cruise in the Bahamas in September 2001. Darwin Deason denies that he threatened to kill the chef. Others claim he did. “There certainly was a threat of getting a gun and doing something,” says one person intimately acquainted with the details of the incident. As for the chef, he isn’t saying much.

To think,  just the other day someone wondered aloud to me why Dallas doesn’t breed characters like it did in the good ol’ days.

Denton Approves Gas Drillers’ Plans

Last night Denton approved gas drilling on the Rayzor Ranch site. Long-suffering FrontBurnervians will remember that that’s where a group of determined young neo-hippies-in-search-of-a-protest fought the powers that be.

The Denton City Council comes off looking pretty impotent in the face of the state’s protection of the rights of mineral owners. One resident of the McKenna Park neighborhood summed up the decision pretty well:

“It all comes down to money,” McFarling said. “That, and the fear of being sued.”

Deno’s Gets a Kick Out of Muddy Boots

Ah, capitalism. Proving that one person’s fiasco is often another’s bonanza, Deno’s shoe-repair shop is enjoying gangbuster business cleaning the muddy boots of people who attended last weekend’s “Disaster in the Pasture” in Kaufman. According to the shop’s Harry Yianitsas, Deno’s has accepted a whopping 350 pairs of boots so far–so many it’s had to buy extra shelving and divert two workers to cleaning full-time. The Highland Park Village store has agreed to knock 25 percent off its regular price, meaning clean, shined boots will set you back around 15 bucks on average.

2009 Neiman Marcus Christmas Book Delivers

Yep, Neiman Marcus is hurting, and they know we’re hurting too. So in this year’s Christmas book, all today’s headlines are saying, they’re offering plenty more affordable options.

Don’t worry, though, if you need a $25,000 cupcake car, they’re there for you also.

If I had $200K to spare, maybe this. But John Lithgow?