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January 13, 1987 - Image 2

Resource type:
The Michigan Daily, 1987-01-13

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Page 2 - The Michigan Daily - Tuesday, January 13, 1987

(Continued from Page 1)
years, according to Peter Allen, a
local real estate developer.
"Having property on State Street
is like a license to steal," said Bill
Tice, owner of State Street's Tice's,
a 20-year institution on the street.
Tice says he is lucky because rent
increases don't affect him much.
Tice re-signed a 20-year lease five
years ago. He has an annual rent
increase of between $50 to $100
while tenants with shorter leases,
such as five years, may be faced
with a $600 increase at renewal
time, he sald.
Yearly rental rates are moving
up to $20 per square foot, Allen
said. One reason for the rent
increases is the new tax law that
took effect January 1st.
owned property now must be
considered a "good economic deal."
This means the property must have
a cash flow return of annual 7 to 10
percent on equity (downpayment).
Previously, the property was
required to break even.
In order -to meet the newly
required rate, the landlord has to
increase rent. The tenant, then,
must increase sales to break even.
In the end merchants say students
will end up paying.
"The student is the one that ends
up paying the most because most
of our customers are students," Tice
Although students will foot
some of the increased rent bill,

rents force stores out

storeowners also have to try to sell
more to keep afloat. That means
selling more to students.
"You're going to have a
sensitivity to students more than
you've had before... And (Students)
will pay more for it, but but get a
better choice because it's consumer-
driven," Allen said.
A SUCCESSFUL store will
be the one that "has what a student
absolutely needs," said Tice, such
as convenience stores, restaurants,
fast food places, laundries, and other
medium-priced stores.
Tice said neither discount nor
high-priced stores would be suc -
cessful. Discount stores would fail
because the low prices won't make
up for higher rent and expensive
stores won't make it because stu -
dents won't be able to afford the
It is rumored that several stores
on State Street will be going down,
said Tice, because people just can't
afford the rent.
Tice's is probably the store that
has been around State Street the
longest without owning its own
property, such as Moe's Sports,
which has been around at least 40
years, and Wild Men's Shop, an
old-timer of about 100 years.
"The more (State Street)
changes, the more it stays the
same. It goes in cycles. As long as
the University is across the street,
you'll have the same stores you had
50 years ago," said Tice.

More agrees that there will be rapid
turnover in the next few years.
More sees a trend towards fast
food, national chains, and high-
priced merchandise replacing well
established businesses like Music
Mart and service stores like the
office supply store that used to be
where Tubby's is.
"You're losing some of the local
favor of the area," said More.
But the high rents have in -
evitably taken their toll on stu -
"We've had to raise our prices.
We've had to pass that rent onto
our customers which is not going

to increase business at all," More
ALTHOUGH Bivouac has not
raised its prices, "It'll be tough for
a couple of years," said owner Ed
"I think the landlords have
jumped the gun on rent increases by
a couple of years," said Davidson,
because there has not yet been an
increase in traffic to justify the in -
But he is hopeful that the traffic
will increase and the students will
Davidson made the relationship
clear - "As long as the University
is there, it will be a busy street."

. 1 .8 oz.
2f$1 0 assorted
609 E. William Hours: M-F 8-7
663-4253 Sat. 8-6

Greeks to attend
public hearing
(Continued from Page ) who relinquished the Panhel pres-
right to be this close to campus?" idency in December.
nght InterFratemity Council President
Former Panhel President Mary Dennis Kavanagh will speak at the
Pfund disagreed with neighbors' public hearing, but he has not
assertions that the Greeks pose a telephoned fraternity members
threat to the stability of North urging them to show up.
Burns Park. "I would think a "We know what we're going to
sorority house would, not be a big say and we'll say it and hope they
detriment to the makeup of the hear our points," Kavanagh said.
neighborhood," she said. "There's little else that we can do.
"ALL OF THIS stuff I've We certainly can't blow up the
been hearing about too much neighbors or pretend they don't
neighborhood traffic is ridiculous. exist."
It's a college town - there's cars The InterCooperative Council,
and people all over the though it has two group houses in
neighborhood. They have to expect the area, supports the rezoning
that." plan, said ICC President Rob
Pfund said the Greeks had dif- Sadowsky.
ficulty organizing their opposition "We like the current
to the rezoning proposal because arrangement, we like the current di-
the hearing was announced during versity of the neighborhood. We
winter break, don't feel it should be changed at
"They really caught us. I had no all," he said.
idea this was going to happen so Sadowsky said the ICC, which
soon in January. As usual, the bought its two houses last year,
neighbors got all of this together will not need to expand again in
when we were away," said Pfund, North Bums Park for 5-10 years.
will host a presentation on January 15, from
5 - 7 p.m. in the Pendleton Room of the
Michigan Union. Reception following. Op-
portunities available for seniors interested in
banking and sales.
~ What's
, - ** Happening
Recreational Sports
Officials' Clinic - Sun., Jan. 18,
1:00 pm -IMSB Pool
Team Entries Due - Tue., Jan. 20,
4:30 pm - IMSB Main Office
Team Play Begins - Sun., Jan. 25
For Information, call 763-3562
The English Composition Board's

Z Gaining admission to graduate or professional
> schools or applying for jobs frequently requires a
personal statement. This writing presents your qual-
ifications, purposes, and goals. But how do you
shape this information into the strongest, most ef-
fective written portrait of yourself as an applicant?
The first Academic Writing Series workshop of
Winter 1987 explores the art of writing a personal
statement. ECB lecturer Phyllis Lassner will disucss
questions to consider before you write, methods of
organization, and tone (how to sound qualified
without seeming boastful).
"Writing A Personal Statement": Attendance is a
must for all students contemplating their post-
Michigan careers.
4:10 - 5:30

Compiled from Associated Press reports
Reagan upgrades negotiator
WASHINGTON (AP) - President Reagan, setting the stage for a
new round of superpower arms control talks, promoted the chief U. S.
negotiator yesterday and charged the Soviet Union had "backtracked"
from his understandings with General Secretary Mikhail Gorbachev to
cut nuclear stockpiles.
Appearing to match a move by the Kremlin, the president announced
that Max Kampelman, who received final instructions in the Oval
Office before flying to Geneva for the resumption of talks on Thursday,
will serve both as head of the U. S. delegation and as State Department
Tbe Soviets had just named Yuli Vorontsov, the first deputy foreign
minister, to replace veteran negotiator Viktor Karpov while also
retaining his policy post. Kampelman, whose appointment requires
Senate confirmation, would hold the counselor's job in Washington
while also conducting negotiations in Geneva about one-third of the
Weinberger calls for buildup
WASHINGTON - Higher defense budgets are necessary to meet the
continuing Soviet military buildup and because there is "no prudent
way to scale back American interests around the world," Defense
Secretary Caspar Weinberger told Congress yesterday.
Weinberger's familiar message came in support of President Rea -
gan's request for a 7.7 percent increase in military spending at a time
when the administration has proposed to cut many domestic programs.
The requested $312 billion defense budget would amount to an actual
3 percent increase after inflation, the smallest hike sought thus far by
Reagan as part of his program to "rearm America."
"Over the years, I have made much the same kind of plea,"
Weinberger noted to the Senate Armed Services Committee as he
reviewed U.S. global defense agreements and the Soviet Union's
military capability.
Iraq regains territory
NICOSIA, Cyprus - Iraq said its warplanes bombed Iranian cities, -
oilfields, and industrial targets yesterday and claimed to have retaken
most of the southern swampland Iranian invaders overran in a 4-day-old
Iran said its troops crushed three tank-led Iraqi counterattacks and held
its beachhead in Iraq. It claimed 16,500 Iraqis had been killed or
wounded since the invasion began Friday.
Among those killed was Gen. Abdul Wahid-Mahmoud Towfia, Iran's
official Islamic Republic News Agency claimed in a dispatch monitored
in Nicosia.
Ford exec asks for reduction
of ceiling on Japanese exports
DETROIT - Ford Motor Co. President Harold Poling called
yesterday for lowering of the voluntary ceiling on Japanese exports to
the United States to counter the growing number of U.S.-assembled
foreign cars.
Poling said the 2.3 million cars-per-year voluntary ceiling on
Japanese imports under the Voluntary. Restraint Agreement, whih
expires in March, should be reduced below 2 million.
He also said the Japanese yen should be allowed to continue to rise
from its present 158 yen to the dollar until it reaches about 125.
Amazing Events' amazing prank
PALO ALTO, Calif. - The manager of a ritzy restaurant got a good
laugh putting pink slips in his employees' mail boxes on April Fools'
But his victims got revenge by hiring Amazing Events Unlimited, a
band of professional pranksters that last year made nearly $300,000
staging outlandish practical jokes, murder mysteries, and elaborate
On manager Dennis Tye's last night before taking another job, 17
actors and actresses appeared at the busy 300-seat restaurant, including:
-A bum shaving in the men's room with nothing but a towel around
his waist;
-Two men in leisure suits, smoking cheap cigars and running up a
$218 bill they couldn't pay;
-A young couple kissing passionately for two hours;
-A couple served a live lobster that crawled off its plate;

Tye, who now works in Salt Lake City, figured it was just a run of
bad luck until the final gag: an underage drinker who got busted by an a
Alcoholic Beverages Commission agent.
"When the ABC agent came in, Dennis finally caught on," said
restaurant general manager Jim Kauffman. "It was just a scream."
If you see news happen, call 76-DAILY.
0 he Micht-gan 19ailig
Vol. XCVII --No. 73
The Michigan Daily (ISSN 0745-967 X) is published Monday
through Friday during the fall and winter terms. Subscription rates:
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