Corporate Report

Corporate Report

Beige book report is bright for Gulf Coast

The Federal Reserve Board's report on economic activity, colloquially known as the Beige Book, hit on most of the obvious trends in the local market. Here are some of the highlights of the Southeast section of the report, released earlier this month:

• The tourism and hospitality industry was looking positive overall. Florida's "Gulf Coast was reportedly experiencing strong convention activity," the report said;

• House sales have slowed, and new non-residential development remained modest. There is a growing "concern about rising labor and material costs" in the construction industry, the report stated;

• The real estate weakness has been most apparent in the condominium market, with several developers choosing to put their projects on hold due to fewer pre-sales and/or higher construction costs;

• Merchants reported strong sales. Retailers expect "modest" sales growth over the next several months;

•Auto sales, particularly for imports and U.S.-assembled foreign models, improved in late January and February;

• Manufacturing activity was up in most sectors, except in textiles and domestic-branded auto producers. Most manufacturers were expecting near-term capital investments to be modest;

• The financial industry was stable and delinquencies remain near historical lows;

• The region is experiencing a continuing tight labor market, particularly in the construction industry near coastal areas. Many people " expressed concern about the skill level of new hires," the report sated. A shortage of truck drivers was also widely cited.

US Airways hopes to fly

from SRQ to D.C.

US Airways is seeking approval from the Department of Transportation to start non-stop, year-round service between Sarasota-Bradenton International Airport and Washington, D.C. The new service would complement US Airway's existing service between Sarasota-Bradenton and Charlotte. US Airways plans to alternate between regional jet aircraft and larger mainline aircraft that would allow the airline to have daily service throughout the year.

"If approved, this service would be a significant addition in our rapidly growing market," SRQ President Fredrick Piccolo said in a statement. "As with prior air service efforts, we are calling on the Sarasota-Bradenton community to support this effort by contacting their elected representatives and the U.S. Department of Transportation to let them know how much they want this service. We believe the community's response is the critical element in getting this service approved by the federal government."

Getting Ready Corp.

secures $25 million

Sarasota-based Getting Ready Corp. secured equity financing from Dutchess Private Equities LP for $25 million over a three-year period. The money will be used to create Mothers Supercare Centers across the United States. The Mothers Supercare Centers will provide several services, including health counseling; pregnancy, childbirth, parenting and fitness classes; and spa services designed specifically for the childbearing and postpartum woman.

SunCoast Bank bought by Mississippi bank

Starkville, Miss.-based NBC Capital Corp., the parent company of Cadence Bank NA, bought Sarasota-based SunCoast Bank, for approximately $34.8 million. The sale price is based on a purchase price of $20.50 per share of SunCoast stock, of which 45% will be paid in cash and 55% will be paid in shares of NBC's stock. After the sale, SunCoast Bank will change its name to Cadence Bank. SunCoast will retain its senior management team and local board of directors, with John Stafford remaining as president and CEO.

Buchanan buys first

dealership in Georgia

Buchanan Automotive Group purchased Atlanta-based Gwinnett Dodge from the Hendrick Automotive Group; the price was not disclosed. The sale is the first in Georgia and the third state outside of Florida that Sarasota-based Buchanan has expanded to. Buchanan also has dealerships in North Carolina and Kentucky. Gwinnett will be renamed Premiere Dodge and Sam Kazran has been named as the operating partner in charge of day-to-day operations. Kazran also operates Buchanan's Hyundai store in Jacksonville.

Tech Data completes

two different acquisitions

Clearwater-based Tech Data Corp., a publicly-traded distributor of IT products, sold its Azlan Training unit to Cary, N.C.-based Global Knowledge for an undisclosed amount of cash. Tech Data will provide IT services for the 6-month long transition, but will have no other significant involvement in the operations of the business.

Global Knowledge executives said the merging of its European operations with Azlan Training will establish the firm as one of Europe's largest IT training companies. The combined business will operate in 12 countries and generate revenues of about $100 million a year.

American Land Lease

buys community in Arizona

Clearwater-based American Land Lease Inc. bought The Reserve at Fox Creek, a 312-home site community in Bullhead City, Ariz., for about $11 million. The gated community contains 205 occupied home sites and an additional 107 home sites that are fully developed. American Land Lease plans to build on the current community, which includes a clubhouse, 10 acres of open space, nature trails and a recreation area.

OFFICE OPENINGS

? Sarasota-based architecture firm Jonathan Parks Architects moved its headquarters to 1471 5th Street, Sarasota.

? Hialeah-based HouseWall Garage System, a company that manufactures, markets and installs a system of garage organization panels and accessories, opened its first franchisee in Fort Myers.

? New York-based Scarborough Research, which has 150 employees in Sarasota, moved to a larger facility at 6000 Cattleridge Drive, Suite 202, in the Cattleridge Financial Center in Sarasota.