UTMG Renovation To Begin at Midtown Tower

Investec Realty Services Inc., manager of the 1407 Union Ave. building in Midtown, has filed a $501,000 permit application with the city-county Office of Construction Code Enforcement to renovate 80,000 square feet on seven floors of the building for the University of Tennessee Medical Group Inc.

UT Medical Group, the nonprofit, private practice arm of the University of Tennessee Health Science Center, is moving its administrative offices to the building, formerly known as the Mid-Memphis Tower.

Steven H. Burkett, UTMG president and chief executive officer, said in a release earlier this year that the “consolidation is intended to increase administrative efficiencies and enhance communications.”

UT Medical Group will employ 300 workers at the building once the move is complete. The organization is consolidating five office locations: 66 and 70 N. Pauline St., 1910 Nonconnah Ave., and 930 and 1399 Madison Ave., according to a press release.

The 16-story tower is co-owned by Investec and DRA Advisors of New York. The group paid $14 million in February 2006 for the 416,424-square-foot facility, which includes an attached seven-story parking garage.

The building sits on 1.15 acres at the southeast corner of Union Avenue and Pine Street. The Shelby County Assessor of Property’s 2009 appraisal is $13.7 million.

TRO Jung/Brannen is handling architectural design for the renovation.

Source: The Daily News Online & Chandler Reports

February New Home Sales Rise Unexpectedly

New home sales rebounded unexpectedly last month, but were still the second-worst on record and remained well below last year’s levels, according to data released Wednesday.

The results showed the first increase since last July. They provided some hope that developers have slashed prices and construction to such a large extent that sales have finally hit bottom and the worst may be past. Prices, however, are likely to remain weak for months as builders continue to clear out their stock of unsold homes.

“We are prepared to hazard the view that the post-Lehman meltdown is now over and the market is stabilizing,” wrote Ian Shepherdson, chief U.S. economist at High Frequency Economics, referring to last fall’s collapse of investment bank Lehman Brothers and the subsequent Wall Street plunge. “That’s not the same as a recovery, but it is better than continued declines in sales.”

The U.S. Commerce Department reported sales rose 4.7 percent in February to a seasonally adjusted annual rate of 337,000 from an upwardly revised January figure of 322,000. Even after the revision to January’s sales results, the month remained the worst on records dating back to 1963.

Economists surveyed by Thomson Reuters had expected February sales to fall to a pace of 300,000 units.

The report “is another faint but nonetheless encouraging sign that the economic slide may be moderating,” wrote David Resler, chief U.S. economist at Nomura Securities.

Since the report reflects signed contracts to buy new homes rather than completed sales, it could reflect the early impact of a new $8,000 tax credit for first-time buyers signed by President Barack Obama in mid-February.

Despite the boost, February’s sales were still down by more than 40 percent from the same month a year earlier. The median sales price fell to $209,000, a record 18 percent drop from the same month last year. The median price is the midpoint, where half sell for more and half for less.

At the current sales pace, the government said it would take a year to exhaust the supply of new homes on the market. The glut of unsold homes and competition from deeply discounted foreclosed properties puts even more downward pressure on prices and on builders’ profits.

House Panel Advances Phone Service Deregulation

Tennessee lawmakers are considering a bill to remove state control over the costs of phone services such as directory assistance, caller ID and regional calls between cities.

The bill advocated by AT&T Inc. and sponsored by state Rep. Gerald McCormick, a Chattanooga Republican, cleared the House Banking and Utilities Subcommittee on Tuesday.

McCormick said the proposal places faith in market forces to keep costs down for consumers.

AT&T spokesman Bob Corney said the bill reflects that AT&T no longer has the monopoly on phone services it once held, and faces competition from the cable industry and mobile phone services.

McCormick said if consumers don’t like the prices offered by AT&T, they can find their phone services elsewhere.

Durable Goods Orders Rise in February

Orders to U.S. factories for big-ticket manufactured goods rose unexpectedly in February, but economists said the gains were unlikely to last as the recession persists.

The U.S. Commerce Department reported Wednesday that orders for durable goods – manufactured products expected to last at least three years – increased 3.4 percent last month, much better than the 2 percent fall economists expected. It was the first advance after a record six straight declines and the strongest one-month gain in 14 months.

Last month’s strength in durable goods orders was led by a surge in orders for military aircraft and parts, which shot up 32.4 percent. Demand for machinery, computers and fabricated metal products also rose.

Orders for durable goods excluding the volatile transportation sector rose 3.9 percent last month, easily beating the 2-percent drop that economists expected.

But despite the big surge in demand for military aircraft, overall orders for transportation products fell 0.8 percent in February. Demand for commercial aircraft plunged 28.9 percent after a huge increase in January. Orders for autos and auto parts dipped 0.6 percent as that industry’s struggles persist.

Detroit’s General Motors Corp. and Chrysler LLC are restructuring operations in hopes of securing billions more in federal aid.

In areas of strength, orders for heavy machinery surged 13.5 percent in February, demand for computers rose 10.1 percent and orders for fabricated metal products edged up 1.5 percent.

Changes in Tenn. Wine Laws Advance in Legislature

A proposal to allow people to bring up to five cases of wine into Tennessee from out-of-state wineries is bubbling up in the state Legislature.

Current law bars transporting any alcohol into the state. Advocates say the changes are needed in the wake of a federal appeals court decision last year that found existing special rules for wineries in Tennessee to be unfair to competitors outside the state.

The House Local Government Subcommittee on Wednesday advanced the proposal sponsored by Rep. Glen Casada, a Franklin Republican, without debate. The Senate Finance Committee was scheduled to take up the companion measure later in the day.

Lawmakers are also considering proposals to allow wine to be directly shipped to consumers and for wine to be sold in supermarkets.

Security Cameras Placed Along Wolf River Trailheads

Two security cameras have been placed permanently along the east and west greenway trailheads along Wolf River Boulevard in an effort to prevent car break-ins and other crimes.

The solar-powered cameras are equipped with motion detectors, record all activity in the parking lots and take high-resolution photos.

When a visitor arrives, the cameras activate and announce, “Welcome to Germantown parks. We are taking photos for your security.”

Between March and April 2008, before test cameras were installed, there were 13 thefts from vehicles reported along the greenway.

The city of Germantown bought the two cameras for $13,476. Park rangers will monitor the cameras.

Lawmakers Want VA Report On Unsterile Equipment

Two members of Congress from Florida are demanding the U.S. Veterans Affairs department account for mistakes with medical equipment that possibly exposed thousands of patients to infectious diseases.

U.S. Sen. Bill Nelson has joined U.S. Rep. Kendrick Meek in requesting the information after the VA sent letters to colonoscopy patients at clinics in Miami and Murfreesboro, Tenn., and to patients at the VA ear, nose and throat clinic in Augusta, Ga.

The VA has said that the risk of infection is minimal and related only to valves and tubing on equipment, not any device that actually touched a patient.

The incidents involved more than 6,000 patients in Tennessee, 3,000 in Florida and 1,800 in Georgia.