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Times Publisher Bill Masterson Jr. speaks Wednesday to members of the Lakeshore Chamber of Commerce at The Times' Munster facility. (Photograph by Judy Fidkowski/The Times.)

The newspaper business is not dead and regional cooperation is the key to regional advancement, according to Times Publisher Bill Masterson Jr.

Masterson told members of the Lakeshore Chamber of Commerce on Wednesday although information is being delivered in different platforms, newspapers will be around “as long as we’re relevant in the lives of the people that read us.”

“Newspapers are doing fine,” Masterson said. “Are we struggling right now? Yes. We’re struggling like others because of the economy, not because people aren’t interested in reading newspapers.”

At least 70 people attended the chamber meeting held at The Times with some members touring the Munster office and production center. The chamber represents businesses from Hammond and East Chicago.

Masterson touted The Times’ effort to increase video offerings through nwitimes.tv and the company’s plans to put a studio in the newsroom—known now as a media center—to offer breaking news video to readers. He showed the Northwest Indiana video weather forecast now available at nwi.com.

He also showed advertising partnerships with local businesses featuring coupons on the company’s nwi.com site. He said such advertising coupled with Yahoo allows advertisers to better market products to online readers and expand revenue for the company.

Masterson also discussed The Times sponsored “One Region: One Vision” initiative, saying it was created to help bring leaders from around Northwest Indiana together to identify and discuss regional issues and work for the common good of area residents. Masterson said Lake and Porter county mayors have begun to regularly meet to discuss regional issues and a Northwest Indiana Health Care Advisory Council is pursuing several projects.

He also said he is hopeful Gary will receive sufficient money from the U.S. Housing and Urban Development Department to demolish abandoned buildings in the city. Cleaning up such properties is important because these buildings can hinder economic development, he said.

Masterson became publisher of The Times in November 2006 and has worked with The Times’ parent Lee Enterprises since 2000.

Americans’ pessimism about the economy appears to be lifting, with consumer expectations for the next six months hitting their most positive point since the recession began.

The improvement stems partly from the housing market, as a national gauge of home prices on Tuesday posted its first quarterly increase in three years.

The consumer and housing reports, along with President Barack Obama’s reappointment of Ben Bernanke as Federal Reserve chief, sent the financial markets modestly higher. But economists warned that consumer confidence remains far below levels associated with a healthy economy and might not lead to the increased spending critical for a broad recovery.

“People’s spending decisions depend more on whether they have money in their pocket than on how they feel,” said Bill Cheney, chief economist at John Hancock Financial.

Still, Cheney and other economists said Tuesday’s report on consumer sentiment was encouraging. The New York-based Conference Board said its Consumer Confidence index rose to 54.1, from an upwardly revised 47.4 in July. That reading reversed two months of decline and easily beat analysts’ expectations.

Economists closely monitor confidence because consumer spending accounts for about 70 percent of U.S. economic activity. Consumer sentiment, fueled by signs the economy is stabilizing, has recovered a bit since hitting a record-low of 25.3 in February.

A reading of 90 indicates the economy is on solid footing; anything above 100 signals strong growth.

Consumers’ expectations for the economy over the next six months rose to 73.5 from 63.4 in July, the highest level since December 2007, when the recession began. The consumer confidence survey was sent to 5,000 households and had a cutoff date for responses of Aug. 18.

More consumers said they were likely to buy a home or a car within the next six months than said so in July’s survey. The outlook for jobs also improved, albeit from very low levels.

The housing sector received positive news, too. The Standard & Poor’s/Case-Shiller’s U.S. National Home Price Index rose 1.4 percent in the second quarter from the January-March period, the first quarterly increase in three years. Home prices, though still down nearly 15 percent from last year, are at levels last seen in early 2003.

The report added to other recent positive news about housing. The National Association of Realtors said last week that sales of existing homes rose 7.2 percent in July, the fourth straight monthly gain.

The Commerce Department on Wednesday is set to report new-home sales for July. Analysts also expect that figure to rise.

Higher home prices would help consumers, who are saving more and spending less as their wealth plummets during the longest recession since World War II. Falling home prices and dwindling stock portfolios made many people, even those with jobs, feel poorer.

“An upturn in prices has to ease some of the pain and may even get some people to loosen up on their wallets a touch,” Joel Naroff, chief economist at Naroff Economic Advisors, wrote in a note to clients. “An improving housing market coupled with better consumer spending could ensure that the recovery takes hold.”

On Wall Street, stocks posted gains. The Dow Jones industrial average rose about 30 points, or 0.32 percent, and broader stock averages also gained.

Many analysts expect the economy to grow 2-3 percent in the current July-September quarter, spurred by a more stable housing market and the Cash for Clunkers program, which has boosted auto sales.

But economists worry that without healthier consumer spending, the recovery may weaken next year. Cash for Clunkers, which provided rebates of up to $4,500 to consumers who traded in old cars for fuel-efficient ones, ended Monday.

Obama said Tuesday that his administration’s $787 billion stimulus package, and the extraordinary efforts by Bernanke to pump trillions of dollars into the financial system, have helped turn the economy around.

“Our auto industry is showing signs of life,” Obama said. “Business investment is showing signs of stabilizing. Our housing market and credit markets have been saved from collapse.”

Jobs are a weak spot, however, and could limit future consumer spending if Americans remain concerned about layoffs or declining wages.

Obama economic adviser Christina Romer predicted Tuesday that unemployment could reach 10 percent this year and average 9.8 percent next year. That’s up from its current level of 9.4 percent.

Frank Newport, editor-in-chief of the Gallup Poll, said consumer spending dropped last week, according to its daily surveys. “We’re not seeing a sustained increase in consumer spending yet,” he said. Gallup asks 3,500 people each week about their recent shopping activity.

That could be a problem for retailers. Many economists expect to see another holiday season of sales declines, after last year’s Christmas period was the weakest in several decades. Holiday shopping accounts for up to 40 percent of annual sales for many retailers.

Recent reports from retailers have been mixed. On Tuesday, office supply chain Staples Inc. said same-store sales fell 5 percent in the second quarter. That was an improvement from a drop of 8 percent the previous quarter.

Last week, Ann Taylor Stores Corp. said same-store sales, or sales at stores open at least one year—a key retail metric—fell 23 percent in its second quarter as the company lost $18 million.

The White House also released updated budget deficit projections Tuesday. The administration said the deficit for the current budget year, which ends Oct. 1, will total a record $1.6 trillion, while deficits for the next 10 years could total $9 trillion.

AP Writer Jim Kuhnhenn contributed to this report.

Brandon Griffin, who was chosen as one of the 20 most successful business people under the age of 40 by BusINess magazine, wrote about “The Power of Print” in a recent blog post:

There is probably not a person in the world who has not dreamed of seeing their name in lights or on the bricks of a major city building.

The publishing industry has been faced with decreasing readership and advertising sales, as both audiences increase their usage of the Internet to achieve their means. As an advertising campaign for the Shedd Aquarium (Chicago, Illinois) emphasizes, there are some things that can't be replaced by the Internet, like seeing a dolphin for the first time – only inches away! Another thing that cannot be replaced is the feeling one receives when they see their picture or name in a local newspaper. This accomplishment puts a proud smile on the individual, and prompts the purchasing of several additional copies to be shared with their friends and family.

Continue reading here.

Kriss Burbee, center, of Schultz Floral Shop asks a question about using Twitter for notification about unadvertised specials. Experts from Valparaiso-based Livemercial, which specializes in online business solutions, presented 'Social Media to Win: The Economic Value of Search Engine Optimization/Social Media' at the Greater Valparaiso Chamber of Commerce. (Photography by Tony V. Martin/The Times.)

More than 20 Valparaiso businesses are more savvy about using online tools to promote their companies, thanks to a presentation Tuesday by local social media experts.

Experts from Valparaiso-based Livemercial, which specializes in online business solutions, presented “Social Media to Win: The Economic Value of Search Engine Optimization/Social Media” at the Greater Valparaiso Chamber of Commerce.

Popular social media platforms include blogging, FaceBook, Twitter, LinkedIn and YouTube. These can be used to build a brand, provide customer service and connect with clients, said Rahsaan Taylor, a Web designer with Livemercial.

“The more you get yourself out there, the more people think of you,” Taylor said. “Social media is here to stay, and it’s better to have it work for you.”

Although using social media can help boost customer relations, marketing and revenue, there are some myths associated with it—social media won’t produce results overnight.

“You can’t expect to be a household name in a month,” said Livemercial Web designer and developer Nichole Baiel.

Integrating social media into a business requires skill, time and money. And businesses need to learn how to drive traffic to their social media efforts, said Nat Finn, search engine optimization specialist and copywriter with Livemercial.

Among those attending the workshop was Kristin Page, project manager with Golden Technologies Inc.

“We already use social media a lot, and we wanted to see what other companies are doing and how they are benefiting,” she said.

Laura Brosky, office manager for Midwest Insurance Agency, said she joined the business-oriented social network LinkedIn.

“Now it’s a matter of making it work for us,” she said. “When it comes to social media, I have a lot to learn.”

The northwestern Indiana town of Merrillville is requiring its employees to take five unpaid furlough days this year, along with five more in the first half of 2010.

Town Council members voted Tuesday to approve the plan, which they said would save about $95,000. Councilmen said the town was facing a budget shortfall of about $162,000 this year and nearly $1.3 million next year

The action covers all 116 employees of the suburban town just south of Gary, including 49 police officers.

Police union president David Degard said the department was already about five officers short of its budgeted staffing and that more officers might leave the force because of the furlough order.

Indiana met a Monday deadline to apply for federal stimulus funds for a Northwest Indiana project that would be a key link in a proposed Chicago-to-Detroit high-speed rail line.

The Indiana Department of Transportation applied for $71.4 million to expand the capacity of Norfolk Southern Corp. tracks running from the Illinois line to the town of Porter, said INDOT spokeswoman Shelley Haney.

The added capacity would be vital to any high-speed rail line coming out of Chicago headed to Michigan or Ohio. Amtrak trains from Detroit often are forced to wait while freight traffic clears those tracks.

The project also may have direct benefits for the region, with an earlier study by the Indiana High Speed Rail Association finding the region could realize up to $1.17 billion in economic benefit from such a line.

That benefit is based on previous plans for a high-speed rail station at or near Gary/Chicago International Airport.

States had until Monday to apply for $8 billion in federal funds dedicated to high-speed rail projects, with Michigan Gov. Jennifer Granholm announcing her state applied for $833 million.

Illinois also hit the deadline for first round funding, applying for $550 million in stimulus bucks for three high-speed rail routes: Chicago to St. Louis, Chicago to Milwaukee and Chicago to Detroit.

“They are working very hard to bring high-speed rail to Illinois,” said Paris Ervin, an Illinois Department of Transportation spokeswoman.

The states basically are planning to upgrade and expand existing Amtrak routes so trains can run at consistent speeds of 110 mph, which would cut the trip from Chicago to Detroit to four hours, from its current six hours.

Some states also have long-range plans to build truly high-speed, European-style systems through which trains could run at speeds up to 220 mph.

Indiana put off applying for stimulus funds for its portion of a proposed Chicago-to-Cleveland high-speed rail line and for another running from Chicago to Cincinnati, Haney said. That’s because the two projects would not have qualified for 100 percent stimulus funding.

INDOT now hopes to seek the money in a second application round in October, when it believes they would qualify for funding at the 100 percent level.

On July 27, eight Midwest governors and Chicago Mayor Richard Daley signed a pact dedicating them to the development of eight high-speed rail corridors. The announcement followed the inclusion of $8 billion in funding for high-speed rail in President Barack Obama’s stimulus bill, which Congress passed in February.

Adding capacity to the Norfolk Southern Corp. tracks running from the Illinois line to the town of Porter is vital to any high speed rail line coming out of Chicago headed to Michigan or Ohio. Amtrak trains from Detroit often are forced to wait while freight traffic clears those tracks.

The project may also have direct benefits for the region, with an earlier study by the Indiana High Speed Rail Association finding the region could realize up to $1.17 billion in economic benefit.

More than 110,000 students are enrolled in Ivy Tech Community College for the fall semester, setting an enrollment record for the fast-growing school.

Ivy Tech officials say 110,359 students were enrolled on the first day of classes Monday. That’s an increase of 24,560 students over last fall, or a 28.6 percent jump.

Ivy Tech President Thomas Snyder says nearly every seat in every class is full. About 83 percent of all classes are at or exceed full capacity. Ivy Tech says about 8,000 to 10,000 students couldn’t get their desired class schedule because classes they wanted were full.

Ivy Tech hired 80 faculty members and 20 student services workers to help handle the growth. It also increased the number of classes offered by 10 to 15 percent.

Car buyers turned in nearly 700,000 vehicles with the popular federal Cash for Clunkers program, according to data released Wednesday from the U.S. Transportation Department.

Dealers around the country sent 690,114 rebate applications worth $2.88 billion to the government by Monday night’s deadline. Customers received rebates of $3,500 or $4,500 depending on the fuel mileage improvement a new vehicle provided.

Transportation Secretary Ray LaHood said the $3 billion program, also known as the Car Allowance Rebate System, was one of the best economic news stories the country has seen.

“American consumers and workers were the clear winners thanks to the cash for clunkers program,” LaHood said in a news release.

“Manufacturing plants have added shifts and recalled workers. Moribund showrooms were brought back to life and consumers bought fuel efficient cars that will save them money and improve the environment.”

The White House Council of Economic Advisers said in a preliminary analysis that the program will boost third quarter economic growth because of increases in July and August auto sales, will sustain an increase in gross domestic product in the fourth quarter and will create or save 42,000 jobs in the second half of this year.

The top three vehicles bought were the Toyota Corolla, Honda Civic and Toyota Camry. More than 64 percent of the vehicles were manufactured by Toyota, General Motors, Ford and Honda.

The average fuel economy of vehicles bought was 24.9 miles per gallon, up 58 percent compared to the vehicles traded in.

Indiana dealerships requested $65.8 million in rebates and Illinois dealerships requested $143.6 million in rebates.

Tom Van Prooyen, general manager of Schepel Buick-GMC Truck in Merrillville, said he was pleased with the the program, despite kinks with the process of sending rebates to the government.

“It created some additional sales and brought people to the market,” Van Prooyen said. “The cars that they traded in, there wasn’t really that many good cars that were crushed.”

At the dealership, there has been about a 35 percent increase in business in July and August compared to May and June.

Mayor says development offers lots of economic opportunities

Mayor Olga Velazquez, center, cuts the ribbon Monday at a ceremony to celebrate the official opening of the road leading into the Northside Business Park in Portage. Jim Staton, from left, regional director of the Indiana Economic Development Corp.; former Portage Mayor Doug Olson; landscape architect Shay Welp; state Rep. Charlie Brown; and City Councilman Ed Gottschling also were among the officials who attended the event to herald the ecologically friendly commercial park. (Photograph by Kyle Telechan/The Times.)

As machinery removed the rest of the easternmost part of Southport Road on Monday morning, officials celebrated the opening of new roads that meander through the 157-acre Northside Business Park.

“This new access road opens the door for future economic development opportunities,” Mayor Olga Velazquez said.

The park’s development began several years ago as an outgrowth of the city’s northside redevelopment plan during former Mayor Doug Olson’s tenure. The city wanted to create an eco-friendly business/commercial park on the west side of Ind. 249, across from the AmeriPlex at the Port business park. The city used a $2.5 million state grant, and the Redevelopment Commission contributed an additional $700,000 to the project.

About 70 acres have been set aside as permanent open space. The other 80 acres will be developed as an 8.5-acre marine site, 7.5-acre hotel/restaurant site, 10-acre office/research site, 43-acre commercial/recreation site and a 10-acre office site.

Velazquez said patience will be needed as the park’s potential is realized.

“We’ve defined the land uses,” she said. “We’re open for business, but we are also going to take the time to look at the type of business development we want in the park. We will not sell simply to sell.”

The park earned praise for its ecologically conscious design.

Landscape architect Shay Welp said all of the stormwater runoff will stay on the site, soaking into swales planted with native grasses and plants, which will filter the runoff before it returns to the ground table. Native prairie is peppered throughout the park. A second prairie planting should begin next month, replacing the lawn of the Northwestern Indiana Regional Planning Commission building with native plants.

“This is one of the finest examples of how you can treat the environment in an industrial/business development. It showcases the best of what Northwest Indiana has to offer,” said Jim Staton, of the Indiana Economic Development Corp.

Check out BusINess’ weekly newsletter online or click here to subscribe and get the latest NWI business news delivered weekly, straight to your inbox.

Federal Reserve chief’s remarks continue to lift stocks; Cash for Clunkers finale; pension fund sues Nevada slot machine maker and Honda will sell electric cars in U.S. Smucker’s sales jump, social security payments decline and Nokia gets into the netbook business.—Pat Colander, Editor and Associate Publisher, BusINess magazine, serving Northwest Indiana & Chicagoland

BusINess story of the week

• Bernanke remarks continue to lift world stocks
World stock markets rose Monday after upbeat comments from Federal Reserve chairman Ben Bernanke and further signs of an improvement in the U.S. housing market. In Europe, the FTSE 100 index of leading British shares was up 20.74 points, or 0.4 percent, to 4,871.63 while Germany’s DAX rose 28.16 points, or 0.5 percent, to 5,490.90. The CAC-40 in France was 21.93 points, or 0.6 percent, higher at 3,637.74. Wall Street was also poised to open modestly higher. nwi.com/inbusiness

what’s news

• Cash for Clunkers program comes to a close
It was a race to the finish for dealers and customers alike as the government’s Cash for Clunkers program headed into its final lap yesterday. Over the weekend, car dealers across the country watched their lots grow empty as crowds rushed to trade in gas guzzlers after the government said that the $3 billion rebate program would end at 8 p.m. EDT last night, two weeks earlier than expected. nwi.com

• Local pension fund sues Nevada slot machine maker
The pension fund of Hammond-based International Brotherhood of Electrical Workers Local 697 is suing the company in Nevada federal court, claiming the Reno-based company’s executives gave stockholders misleading analyses of the company’s financial situation. Shares plummeted from more than $45 per share in November 2007 to $7.58 per share in November 2008, the suit states. Trading in company shares on the New York Stock Exchange ended at $20.97 Friday. nwi.com

• Report that Honda will sell electric cars in U.S.
Japan’s second-biggest car maker, which has focused on gas-electric hybrids so far, is building an all-electric prototype to be unveiled at the Tokyo Motor Show in October. It said Honda would begin sales of electric vehicles in the United States in the first half of the decade. nwi.com

• Merrillville still grappling with deficit—Pushing some costs into 2010 considered
Town leaders estimate the municipal deficit this year at about $320,000, though calculating an exact figure has been difficult due to the cost of fluctuating health insurance claims. The town is self-insured and pays health insurance claims for town employees. nwi.com

• User fees might fund canal work
The East Chicago Waterway Management District, local sponsor of the U.S. Army Corps of Engineers, plans to dredge the harbor and canal, needs money for its share of the $150 million cost of the project and may establish user fees as one of several revenue streams. nwi.com

this week on our website

• Check it out—The Legal issue of BusINess magazine is online now
Stories include an evolution of law firm business models, profiles of criminal, nonprofit, wills and estates, finance and other specialties. Also a report on tourism and economic development in Lake and Porter counties. nwi.com/inbusiness

• High-speed rail might yet become reality
Times Editorial Page Editor Doug Ross explains how high-speed rail could become a reality in Northwest Indiana sooner rather than later. Hint: a 2016 Olympics in Chicago could start the engines. nwi.com/inbusiness

• Restaurant dream becomes a reality
After working more than a decade at a popular Mexican Restaurant in Chicago, Javi Rodriguez decided it was time to branch out on his own. Rodriguez, 45, had dreamt of starting his own business ever since he moved to the region in 1983 from Mexico. nwi.com/inbusiness

• Times Publisher to host Lakeshore Chamber Meeting tomorrow at Times building in Munster
“The Times is excited to host the members of the Lakeshore Chamber to our building,” Masterson said. “The Times has been an integral part of the region for many years and just like the region is changing, so is the media business. I look forward to discussing how the Times Media Company is evolving to position itself to continue to be an integral part of the region in the future.” nwi.com/inbusiness

• Mazer leaving Horseshoe for Las Vegas
After 14 years at the helm of Hammond’s casino, Horseshoe Regional President and General Manager Rick Mazer is leaving Northwest Indiana to manage five Harrah’s properties in Las Vegas. nwi.com/inbusiness

• Mittal to restart blast furnace at Indiana Harbor East
The third of three blast furnaces at ArcelorMittal Indiana Harbor East is being prepared to once again produce iron as early as late next month. The blast furnace has been down for a couple of years. nwi.com/inbusiness

beyond the region

• WASHINGTON—Millions face shrinking Social Security payments
The trustees who oversee Social Security are projecting there won’t be a cost of living adjustment (COLA) for the next two years. By law, Social Security benefits cannot go down. Nevertheless, monthly payments would drop for millions of people in the Medicare prescription drug program because the premiums, which often are deducted from Social Security payments, are scheduled to go up slightly. yahoo.com

• CHICAGO—J.M. Smucker fiscal 1Q earnings top expectations
J.M. Smucker Co. said Friday its fiscal first-quarter profit more than doubled and beat expectations, mostly because of increased sales from last year’s acquisition of Folgers coffee. yahoo.com

upcoming and interesting

• Nokia to make laptop, jumping on wireless trend
Nokia Corp., the world’s largest maker of cell phones, said that it will start making a small, light laptop, similar to ones PC manufacturers are already selling through wireless carriers around the world. The Finnish company says the Nokia Booklet 3G will run Microsoft Corp.’s Windows software, have a 10-inch screen and weigh 2.8 pounds. yahoo.com

• Apple denies rejecting Google Voice for iPhone
The FCC is looking into Apple’s block on the Google Voice app as part of a bigger examination of the consumer practices in the wireless industry and sent questions to Apple, Google and Dallas-based AT&T Inc., the only wireless carrier to offer the iPhone in the U.S. AT&T said Apple did not consult with the company before turning Google’s program down. Google kept confidential the parts of its letter describing Apple’s reasons for rejecting Google Voice. yahoo.com

For 18 years, I’ve been listening to Dennis Hodges of Merrillville praise high-speed rail and urge the implementation of a system that would cross the Midwest.

The idea received wide public acclaim at first, then interest waned quickly when it became apparent that this was a pipe dream.

Except that all of a sudden, there’s $8 billion in the pipeline for high-speed rail, with the expectation that more will be coming.

Who knew anyone was listening that intently to Dennis and other prophets like him?

President Barack Obama listened to that concept, and his support makes a big difference.

“There’s a real paradigm shift that has occurred here,” said Roger Sims, who signed onto the high-speed rail initiative only one year after Hodges did.

“Ten years is certainly within the realm of possibility” for the start of a 3,000-mile system with Chicago as its hub, Sims said.

A few weeks ago, a memorandum of understanding was signed on behalf of Illinois, Indiana, Iowa, Michigan, Minnesota, Missouri, Ohio, Wisconsin and Chicago—hey, Chicago has more people than many states, so why not?—to support the creation of a high-speed rail network across the Midwest.

The idea makes sense, especially in a post-9/11 world.

For trips up to 100 miles, a car is most economical. More than 600 miles, and air travel is cheapest. But for jaunts of 100 to 600 miles, rail is the smart choice. And people who travel by rail don’t have to suffer the indignity of searches that air travelers might endure.

If the schedules are done right, a business traveler could board the train early in the morning, hold a late morning meeting at a client’s office in another city in the Midwest and be home in time for dinner with the family, or at least avoid a hotel stay.

An economic benefit analysis shows Indiana could gain 5,560 to 16,700 additional jobs with high-speed rail.

Gary alone could gain $400 million to $1.17 billion with the advent of high-speed rail, that study said.

What does Hodges envision for Gary? Look at Charles de Gaulle International Airport in Paris for an example. It isn’t just an airport but a multimodal hub. It isn’t for naught that the Northern Indiana Commuter Transportation District is hoping to eventually include a train station in Gary/Chicago International Airport.

Pieces of this, at least, could be done in time for the 2016 Olympics if Chicago gets to host the summer games.

This all sounds great, but will it happen? Hodges and Sims are believers.

“It is going to happen. There’s no question of it,” Sims said.

That $8 billion is a lot of money. Now here’s what local taxpayers want to hear: “The current stimulus funding does not require one thin dime. There’s no local match,” Sims said.

Sounds great! So when does construction start?

Well, there’s $8 billion available, but there are $200 billion in requests nationwide.

I guess that means we’ll have to wait and see how much Obama favors the home team.

The Times Editorial Page Editor Doug Ross can be reached at 219.548.4360 or 219.933.3357 or Doug.Ross@nwi.com. The opinions expressed in this column are of the writer and not necessarily that of BusINess magazine.

Javi Rodriguez owns Javi's Mexican Restaurant in East Chicago. Rodriguez, who lives in Hammond with his wife and children, used his own savings in addition to receiving loans to open his business. (Photograph by Jessica A. Woolf/The Times.)

After working more than a decade at a popular Mexican Restaurant in Chicago, Javi Rodriguez decided it was time to branch out on his own.

Rodriguez, 45, had dreamt of starting his own business ever since he moved to the region in 1983 from Mexico and got a job at a restaurant in Little Village as a busboy.

Rodriguez then honed his trade working several positions, including manager, at Lalo’s Mexican Restaurant’s Maxwell Street location near the University of Illinois at Chicago.

In January, Rodriguez informed his boss it was time he opened his own restaurant.

“He told me it would be hard because of the economy, but I was 100 percent positive I was going to make it because I have experience,” Rodriguez said.

So became Javi’s Mexican Restaurant in East Chicago.

Rodriguez, who lives in Hammond with his wife and children, used his own savings in addition to receiving loans to open his business. He said he’s ready for the challenge.

“I just want to make it,” Rodriguez said. “I love this job and I want to see my customers happy all the time because it’s my food.”

That food includes Javi specialties like Cecina Al Molcajete and Cecina Tapatia. Javi’s full menu also includes tacos, tortas, burritos, breakfast and traditional Mexican dinners. Javi’s offers catering services as well.

Rodriguez, who also has bartending experience, hopes to add liquor to the menu at some point.

“I can’t do it at this locale but maybe somewhere bigger in the future,” he said.

The Lakeshore Chamber of Commerce and The Times are hosting a one-on-one session August 26 with Times Publisher Bill Masterson Jr.

The event is at The Times’ Munster office, 601 45th Ave.

“The Times is excited to host the members of the Lakeshore Chamber to our building,” Masterson said. “The Times has been an integral part of the region for many years and just like the region is changing, so is the media business. I look forward to discussing how the Times Media Company is evolving to position itself to continue to be an integral part of the region in the future.”

Networking begins at 11:30 a.m. and the program starts at noon. Tours of the office are available after the luncheon.

The cost is $15 per person and reservations are required. Payment can be made by check, money order or credit card.

To reserve a spot, call the Lakeshore Chamber office at 219.931.1000.

After 14 years at the helm of Hammond’s casino, Horseshoe Regional President and General Manager Rick Mazer is leaving Northwest Indiana to manage five Harrah’s properties in Las Vegas.

“This is a wonderful opportunity for me and my family,” Mazer said of his promotion to regional president, overseeing Harrah’s Las Vegas, The Flamingo, The Imperial Palace, O’Shea’s Casino and Bill’s Casino.

The assignment will also be a challenge because the Las Vegas economy has “taken a tremendous hit with the macro economy,” Mazer said. “I hope that we are at the end of that and will be happy to be there as the town recovers.”

The Harrah facilities Mazer will manage include 9,000 hotel rooms, five casinos and about 9,000 employees.

“Many of these properties are icons in the gaming industry—The Flamingo and The Imperial Palace have been around for a long time,” he said. “It’s important to remember the history of these properties. It’s a significant project.”

Although his departure date isn’t set, Mazer said he will start in Las Vegas in September or October. His wife, Aria, and family will remain in St. John for another school year.

Both Mazers have been active in the community since moving to the Calumet area from Peoria in 1995. They have supported the work of Lake and Porter county organizations such as The Crisis Center, TradeWinds and the United Way.

Recently both Mazers were named co-chairs of the 2009-10 United Way Community Campaign. Aria Mazer will continue as chairman, her husband said. The United Way campaign is the largest single fundraising effort in Northwest Indiana and kicks off in September. It raises more than $5.2 million annually to support a network of critical health and human services through 33 member agencies and community initiatives that assisted over 280,000 local residents in 2008.

Rick Mazer was the first employee of the original Empress Casino in Hammond and oversaw the construction and opening of that facility in May 1996. During his tenure, Mazer has experienced different ownerships of that casino. Jack Binion’s Horseshoe Casino operation bought the Empress in 1999. Harrah’s Entertainment purchased the Hammond casino but kept the Horseshoe name in 2004.

Mazer helped guide the $500 million expansion at Horseshoe that more than doubled the size of the main floor casino and added a 2,500-seat entertainment facility called The Venue. Construction on the 350,000-square-foot facility began in April 2006 and was unveiled last August.

Daniel Nita, currently regional president of Harrah’s in Atlantic City, N.J., will take over for Mazer in Hammond.

Action could bring back between 75 and 80 jobs

The third of three blast furnaces at ArcelorMittal Indiana Harbor East is being prepared to once again produce iron, according to a union official.

United Steelworkers Local 1010 President Tom Hargrove said employees and the company are in the process of restarting the No. 6 blast furnace, which could be working as early as late next month. He said the blast furnace has been down for a couple years.

ArcelorMittal restarted iron production at its No. 5 blast furnace about a month ago. Hargrove said the No. 5 and 6 blast furnaces can churn out at least 5,000 tons of crude steel a day at peak production. The company’s No. 7 blast furnace can produce up to 11,500 tons daily.

Hargrove said the restart could bring back between 75 and 80 jobs because of work at the furnace and auxiliary operations, including trucking and maintenance. He said with the restart, employee safety is still a top priority.

ArcelorMittal spokeswoman Katie Patterson said in a statement that the furnace is being restarted in early October because of improving market demand.

“We are bringing back capacity in line with improving demand, largely due to the technical recovery occurring as inventory destocking nears completion,” Patterson said.

“However, we do not expect demand to return to the levels seen in 2008 for sometime yet and remain cautiously optimistic for a slow and progressive recovery.”

U.S. steel mills operated at about 54 percent capacity in the week ending Aug. 15, up from a 36 percent utilization rate in January, according to the Washington-based American Iron and Steel Institute.

United Steelworkers District 7 Director Jim Robinson said he’s cautious in predicting a steel industry turnaround although ArcelorMittal restarting operations in Cleveland and U.S. Steel restarting operations in Granite City, Ill. are good signs.

“This recession has been significantly different than past swings in the economy,” Robinson said. “I fervently hope things are turning around.”

A Saks Fifth Ave., store window is shown Tuesday, Aug. 18, 2009, in New York. Retailer Saks Inc. said Tuesday its second-quarter loss widened as consumer spending on luxury fashion continued to languish, but the loss was not as big as analysts expected. (Photograph by Mark Lennihan/AP.)

Target Corp. and Home Depot Inc. on Tuesday posted lower profits that still topped Wall Street expectations, but economic worries are likely to keep shoppers tight-fisted in the months ahead, executives predicted.

The results at two other retailers strongly reflected the recession’s effects. Discounter TJX Cos., which operates T.J. Maxx, Marshalls and HomeGoods stores, saw profit rise 31 percent. And luxury merchant Saks Inc. saw its loss widen, though still coming in smaller than analysts feared because of a series of cost-cutting moves.

During the recession, discounters have benefited from consumer cutbacks, while luxury retailers have seen demand evaporate.

Home Depot reported that profit fell 7 percent, as the nation’s biggest home improvement retailer shuttered its Expo business and continued to be pinched by the recession.

Still, the Atlanta-based company’s adjusted results beat Wall Street’s expectations, and it lifted its guidance for full-year earnings from continuing operations.

Shares rose 56 cents, or more than 2 percent, to $26.66 in morning trading.

Home Depot earned $1.12 billion, or 66 cents per share, for the period. That’s down from $1.2 billion, or 71 cents per share, a year earlier.

Excluding Expo-related charges, profit was 67 cents per share, topping analysts’ forecasts for 59 cents per share, according to Thomson Reuters. Home Depot had announced in January that it planned to close its 34 Expo Design Centers.

Revenue dropped 9 percent to $19.07 billion from $21 billion.

Minneapolis-based Target’s earnings were helped by higher profit margins on the items it sold and a stabilizing credit-card business.

Target earned $594 million, or 79 cents per share, in the three-month period ended Aug. 1. That compares with $634 million, or 82 cents per share, in the year-ago period.

Total revenue fell 2.6 percent to $15.07 billion. Analysts projected a profit of 66 cents per share on revenues of $15.1 million.

The results helped drive shares of Target up $2.39, or 5.8 percent, to $43.60 in morning trading.

“Second-quarter earnings were stronger than expected due to very strong operating margin in our retail segment and credit card segment performance in line with expectations,” Gregg Steinhafel, chairman, president and CEO, said in a statement.

He added that the company is focused on initiatives to drive customer traffic and sales.

Profit from the credit card business dropped to $63 million for the quarter from $74 million in the year-ago period. Net write-offs in the quarter were $304 million, in line with company expectations.

Target sold 47 percent of its credit card receivables to JPMorgan Chase in May 2008.

Discounters, particularly Wal-Mart Stores Inc., have benefited from consumers switching to cheaper stores and focusing on necessities. But at Target, where more than 40 percent of revenue comes from nonessentials like funky jeans and bedspreads, the cheap-chic formula that once was its strength has became a drag as shoppers focus on basics.

A beneficiary of that was TJX, whose fiscal second-quarter profit rose 31 percent to $261.6 million, or 61 cents per share. The results beat Wall Street’s expectations by 1 cent per share.

Sales for the period ended Aug. 1 rose 4 percent to $4.75 billion, meeting analysts’ estimates. Consolidated same-store sales increased 4 percent.

CEO Carol Meyrowitz said in a news release the company’s stores are seeing increased customer traffic and it is seeing strength across its businesses.

TJX’s shares fell $1.26, or more than 3 percent, to $34.12 in morning trading.

Saks said it lost $54.5 million, or 39 cents per share, in the three months that ended Aug. 1. That compares with a loss of $32.7 million, or 24 cents per share, a year earlier.

Analysts had forecast a loss of 52 cents per share on revenue of $563 million.

Revenue fell 15 percent to $561.7 million. Same-store sales also fell 15 percent during the quarter.

Luxury retailers like Saks have been especially hurt by the recession, as even shoppers with money to spend are cutting back on splurges.

Shares rose 4 cents to $5.40 in morning trading.

AP Retail Writers Ashley M. Heher in Chicago, Mae Anderson in New York, Emily Fredrix in Milwaukee, and Michelle Chapman in New York contributed to this report.

Check out BusINess’ weekly newsletter online or click here to subscribe and get the latest NWI business news delivered weekly, straight to your inbox.

HUD sees Gary as a national model for economic development in blighted areas; even as jobs decline foreign demand for U.S. securities grows; oil prices tumble in reaction to weak demand for gas and a new report says 10,000 banks opened in five years before the bust. Chrysler to build Fiats in Mexico; resort offers vacations for $19 a night; McDonald’s a big winner in the recession and old-fashioned uses of new technology could improve your life.—Pat Colander, Editor and Associate Publisher, BusINess magazine, serving Northwest Indiana & Chicagoland

BusINess story of the week

• Senator Evan Bayh says Gary will be national model of urban revitalization
Gary is expected to be the Obama administration’s “national model” for urban revitalization, according to U.S. Sen. Evan Bayh. The U.S. Department of Housing and Urban Development has established a “Gary Project” that will seek to address issues of urban decay and foster economic development in the city, including demolition of vacant properties. nwi.com/inbusiness

what’s news

• Foreign demand for long-term U.S. securities rises
Foreign demand for long-term U.S. financial assets rebounded in June even though China and Russia trimmed their holdings. The Treasury Department said Monday that foreigners purchased $90.7 billion more in long-term U.S. securities than they sold in June. That’s a significant rebound from May when they sold $19.4 billion more than they purchased. nwi.com

• Economy may be improving, but jobs slow to come
Because labor is the biggest expense for most companies, caution on hiring is typical at the end of recessions. After the last one, in 2001, unemployment kept rising and didn’t peak until June 2003, 19 months into the economic recovery. This time around, some economists say unemployment may not return to healthy levels until 2013. nwi.com

• Banks added 10,000 branches in boom
An AP IMPACT story says that banks expanded at a breathtaking pace over the past five years, adding more than 10,000 full-service branches, but barely 1 in 10 were in inner-city, minority neighborhoods, another sign the financial spending spree skipped over substantial parts of the country. nwi.com

• Oil prices tumble below $66 per barrel
Oil prices fell to new lows for the month yesterday even as the year’s first hurricane threatened to grow in size before it heads toward the U.S. coast. Benchmark crude for September delivery tumbled 3 percent, or $2.06, to $65.45 a barrel on the New York Mercantile Exchange and world prices have fallen about 7 percent in two days. nwi.com

this week on our website

• Check it out—The Legal issue of BusINess magazine is online now
Stories include an evolution of law firm business models, profiles of criminal, nonprofit, wills and estates, finance and other specialties. Also a report on tourism and economic development in Lake and Porter counties. nwi.com/inbusiness

• The Lighthouse—Making Cedar Lake a destination
Wrapped in windows overlooking an always splendid, and sometimes breathtaking view, The Lighthouse has been drawing customers from as far away as Lafayette, South Bend, nearby Illinois and Michigan since opening April 6. Its popularity shining a light on the town’s resurgence as a resort community. Cedar Lake has become a destination again—thanks in large part to the restaurant and banquet hall. nwi.com/inbusiness

• Horseshoe notches big increase
Casino revenues in Northwest Indiana eked out an overall 3.1 percent gain in July as compared to one year ago, powered mainly by a surge in revenues at Horseshoe, in Hammond, according to revenue figures from the Indiana Gaming Commission. nwi.com/inbusiness

• New Sony e-book reader $100 cheaper than Kindle
Electronic books are often mentioned in the same breath as Amazon.com Inc.’s Kindle digital reader. Now e-book rival Sony Corp. is determined to recapture consumers’ attention with a smaller reader that’s also $100 cheaper. nwi.com/inbusiness

• Round 3 of the Shore Summer Cocktail Contest ends today at noon
Just send us your favorite summer cocktail recipe and if your recipe is the best we will send you a bottle of premium Opulent Vodka. nwi.com/inbusiness

beyond the region

• MICHIGAN—Chrysler to build Fiat 500 in Mexico
Chrysler Group LLC is planning to build the Fiat 500 small car at a plant in Mexico, according to a report published yesterday. The automaker could also build an engine for the 500 at a plant in Trenton, Mich., and is weighing building another compact car similar to the 500 in the U.S. nwi.com

• SAN DIEGO—California resort offers $19 ‘survivor’ package
While many of Southern California’s luxury hotels are battling a severe slump in business by offering extra services and more amenities, the Rancho Bernardo Inn is luring guests with the exact opposite—no frills and barely any basics. The most basic version: a room for $19 with no bed, toilet paper, towels, air-conditioning or “honor bar,” and only a single light bulb in the bathroom for safety. yahoo.com

upcoming and interesting

• Daniel Gross on how McDonald’s won the recession
In the harsh downturn that began in December 2007, success was redefined and muddling through became a triumph. In a recession that hit all rungs of the income ladder and ravaged the wealthiest consumer markets—the United States, Europe, Japan—there were very few safe havens. Chief among the Great Recession’s winners is McDonald’s. McDonald’s sales growth in 2008 was greater than in 2006 and 2007. While many restaurants scaled back, it opened nearly 600 stores in 2008. And the chain has notched same-store-sales growth in each of 2009’s first seven months. slate.com

• Five ways to use mobile technology to make your life better
Pick up your mobile phone and call someone close to you. Pull out that laptop and use it to reconnect with someone. Grab that fancy navigation system and use it to go visit a family member you haven’t seen in a while. salon.com

You can win a bottle of Opulent Vodka in the next Shore Summer Cocktail Contest round just by sending your favorite summer cocktail recipe (you can add a few lines about why the drink is so great if you want to) to pat.colander@nwitimes.com before Tuesday, August 18th, at noon (CST).

Get inspired—see recipes from the past winners here and here.

The winner will be announced in the August 18th issue of Shore's online newsletter. (Subscribe here.)

The Lighthouse in Cedar Lake features patio dining with a view, banquet facilities and dock-side parking. (Photography by Tony V. Martin/The Times.)

Beginning late afternoon on any given day, a procession of vehicles begins to form on its way to Constitution Avenue in Cedar Lake where the Lighthouse Restaurant, nestled snugly against the shoreline of the town’s namesake lake, has been luring people from near and far to its doors.

Wrapped in windows overlooking an always splendid, and sometimes breathtaking view, The Lighthouse has been drawing customers from as far away as Lafayette, South Bend, nearby Illinois and Michigan since opening April 6. Its popularity shining a light on the town’s resurgence as a resort community.

Cedar Lake has become a destination again—thanks in large part to the restaurant and banquet hall.

In the earlier decades of the 1900s, visitors flocked to the summertime pleasures of Cedar Lake, including the Midway Ballroom which played host to the big music names of the day such as the bands of Tommy Dorsey, Les Brown and Glen Miller and, later, big-name rock and rollers.

Chuckling at his desk, Bill Wellman admits to fond memories of good times spent at the old lakeside ballroom, but adds slyly that none are for print.

A 'sunset applause' sign greets diners enjoying cocktails on the lakeside deck. (Photography by Tony V. Martin/The Times.)

The vice-president of communications for Whiteco Industries and part owner of the restaurant, Wellman recently celebrated his 85th birthday in The Lighthouse’s second floor banquet space that serves up to 200 people. The view, he said, is spectacular. “There’s a sign out front on the patio that I had made—’Please hold your applause until the sun sets.’ It’s starting to become a tradition,” he said.

Whiteco’s CEO Dean White, principal owner, gave birth to plans for the restaurant that features an expansive patio along the lake. He, too, recalls the days when Cedar Lake was bustling and said it’s where he went for fun, especially during the summertime.

“It was Mr. White’s plan to give back to the community. He hadn’t planned it as a moneymaker. He just wanted to have some fun,” Wellman said.

“Eighteen days in front of our opening, Mr. White said, ‘We are going to have sizzle on those steaks, aren’t we?’ We had to hustle to get that done,” Wellman said, noting that each steak is delivered sizzling to the table thanks to an extended hood and a high temperature broiler.

Everyone, including White, seems to be having fun as the Lighthouse, the Sunset Harbor Condominiums and The Moorings planned housing development on the lakeshore south of the restaurant continue to change the lake’s landscape and beckon new visitors to the town’s boundaries.

Sunset Harbor and The Moorings are projects of WPM Construction, Merrillville, of which White is a principal.

Inside, an intimate nautical decor highlights such details as the dining room bar, crafted from a boat deck where Angie Wernes mixes drinks. (Photography by Tony V. Martin/The Times.)

Beside a restaurant that many say is on a par with Chicago’s best eateries, The Lighthouse has brought added jobs and tax support to the town, Wellman is quick to note.

What do residents think? When Pat King Casassa returned to Cedar Lake five years ago after a 30-year absence, she was struck by the town’s vitality. “It’s coming back alive,” she said, pointing to the Lighthouse, the condos, newly-paved streets and lake improvements.

“I was just teased today about Cedartucky,” Casassa, daughter of town founder Dr. Robert King, said of the unflattering name tag given by some to the town in the past, adding, “It’s not Cedartucky anymore. We’ve come a long way.”

“Happy George,” aka George Geimer-Wessler of Happy George’s Coffeehouse, 13134 Lakeshore Drive, agrees, saying the town is on the upswing, and he’s along for the ride. The sign at his storefront reads, “Welcome to Paradise.”

“We opened about 10 weeks ago. It seems like everything is picking up here, and the town is caring for the community more,” Geimer-Wessler said. “We definitely get a lot of walk-ins. We plan to stay open all year.”

“Happy George’s” benefits from the Sunset Harbor Condominiums that hug the shoreline south of the coffeehouse, he said. The development, including new business along 133rd Street, is feeding a growing economy and drawing visitors to the lake that is Indiana’s second largest natural lake.

The restaurant’s banquet facilities, host to this year’s Cedar Lake Chamber of Commerce annual dinner, is providing a modern facility for wedding receptions, anniversary parties and the like.

With only three of the 62 Sunset Harbor units yet unsold, Peter Ruffing of WPM said such success in less than three years speaks well not only of the high quality, lakefront living possible there, but also of the community itself.

“It’s fun to be a part of it all,” Ruffing said, pointing to the town’s “Symphony in the Park,” art shows and physical improvements undertaken by local business owners.

A notable improvement is the east entry into the town on 133rd Avenue, which ends at Morse Street, Sunset Harbor and the lake.

The pretty pastels of the condo buildings jut upward against the backdrop of the lake in a pleasing view created by the principals of WPM whose land plan moved the condo buildings apart to allow a view through to the water.

The east entry was made even more alluring after the town’s project at the intersection beautified the space with new paving, bricks, special lighting and planters, all part of a plan orchestrated by the town council.

“I think this is just the leading edge,” Ruffing, an Indianapolis transplant, said, adding, “Over the next four years, there will be 99 more condos. It makes sense that commercial will follow.”

And should the South Shore rail extension reach Cedar Lake, the resort community of the past—much like Lake Geneva, Wis.—may be seen again as The Lighthouse becomes even more of a destination.

Want to learn more about The Lighthouse with lovely photos, its menu and the banquet facilities, go online to cedarlakelighthouse.com.

Next, stop online at cedarlakein.org for the community’s intriguing history, its plans for the future, and more.

And if the allure of lake life is beckoning, go to themooringsoncedarlake.com to learn about the newest, east side development where condos, attached villas with walk-out basements are planned.

Overall July NWI casino revenues a mixed bag

Casino revenues in Northwest Indiana eked out an overall 3.1 percent gain in July as compared to one year ago, powered mainly by a surge in revenues at Horseshoe, in Hammond, according to revenue figures from the Indiana Gaming Commission.

The five casinos along Lake Michigan raked in a total of $103 million, with Horseshoe’s $44.87 million take and 33.2 percent revenue gain leading the way. At Blue Chip, in Michigan City, revenues increased 6.8 percent.

July is generally a strong month for casinos, with plenty of vacationers opting to spend at least some time at the slots and gaming tables during their weeks off, according to Ed Feigenbaum, of Indiana Gaming Insight.

But even the traditional July surge could not mask the continuing revenue decreases that are hobbling both Majestic Star casinos, in Gary, and Ameristar, in East Chicago.

Ameristar revenues dropped to $22.68 million in July as compared to $28.66 million in the same month one year ago, for a 20.9 percent decrease. Majestic Star I revenues were down 18.5 percent, and Majestic Star II’s take was down 10.4 percent as compared to a year ago.

Senator says city set as major HUD project

Gary Mayor Rudy Clay, Sen. Evan Bayh and Ron Sims, deputy secretary of HUD, take a short walking tour through Gary's Emerson neighborhood when Bayh visited the city in June. Bayh observed boarded-up and fire-scorched houses, overgrown yards, sagging roofs, collapsed floors and a caved-in sidewalk and street, all within three blocks.
(Photograph by John J. Watkins/The Times.)

Gary is expected to be the Obama administration’s “national model” for urban revitalization, according to U.S. Sen. Evan Bayh.

The U.S. Department of Housing and Urban Development has established a “Gary Project” that will seek to address issues of urban decay and foster economic development in the city, including demolition of vacant properties, according to Bayh, D-Ind.

Bayh said he was notified Wednesday by Ron Sims, deputy secretary of HUD, that the agency is assembling “what they are calling the Gary Project.

“He told me that by mid-September, they will have assembled a team of national experts” to lead the project, Bayh said.

“(HUD officials) would like to make this a national example of what can be done when bringing all parties together,” Bayh said.

“They feel if they can get Gary on the right track, they can use this plan to do it elsewhere in the country.”

On June 30, Bayh said he asked Congress for $24.7 million in federal stimulus funds to demolish 1,124 abandoned structures throughout Gary.

“It’s the right thing to do,” Bayh said that day after a walking tour of Gary’s Emerson neighborhood, where he observed boarded-up and fire-scorched houses, overgrown yards, sagging roofs, collapsed floors and a caved-in sidewalk and street, all within three blocks. Bayh was accompanied on his walk by Sims, Gary Mayor Rudy Clay and several city and Lake County officials.

On Wednesday, meeting at the invitation of The Times, Bayh could not confirm the amount of support the Gary Project will receive, but he said he and Sims agreed the $24.7 million initially proposed likely would not be enough to remedy Gary’s needs.

Bayh spoke with Clay by phone Wednesday afternoon to share the news that the federal government will focus resources on Gary’s revitalization.

When The Times reached Clay, he said he couldn’t comment on the news, citing a “lack of available details,” but said he is glad Bayh has taken an interest in spurring development in the city.

“I have to applaud Senator Bayh because he understands clearly that the state of Indiana cannot be what it ought to be unless Gary is where it ought to be,” Clay said. “I give him a standing ovation for understanding that.”

A HUD spokesman in Washington when reached late Wednesday afternoon didn’t have any specific information on the announcement.

Gary was competing with other cities for a total of $2 billion in neighborhood-stabilization funds set aside by President Barack Obama and Congress.

The funds are expected to help state and local governments and nonprofit developers acquire land and property, demolish or rehabilitate abandoned properties or offer down payment and closing-cost assistance to low- and middle-income home buyers, according to HUD’s Web site. HUD said grantees also could create land banks to assemble, temporarily manage and dispose of foreclosed homes.

The deadline for applications was July 17.

After his walk around with Sims in June, Bayh told city leaders, “When I was talking to business leaders outside of Gary, they said Gary is one of the top things that needs to be dealt with. There is now recognition that we are all in this together.

“I’m convinced the comeback for Gary and Northwest Indiana starts with demolishing these properties and making the land suitable for investment, for job creation. At least the deterioration will be stopped, (and) then we can start to build on that combination,” he said.

Times Managing Editor Paul Mullaney contributed to this report.

Electronic books are often mentioned in the same breath as Amazon.com Inc.’s Kindle digital reader. Now e-book rival Sony Corp. is determined to recapture consumers’ attention with a smaller reader that’s also $100 cheaper.

On Wednesday, Sony is expected to announce that it will release the Reader Pocket Edition by the end of August. Like the Kindle and Sony’s previous Readers, the Pocket Edition will come with an “electronic ink” display, which shows dark gray text on a lighter gray background. As the word “pocket” implies, its five-inch screen will be smaller than that on the Kindle and other Sony models.

Unlike other Readers, the Pocket Edition won’t play digital music files, and it won’t have a slot for a memory card to supplement internal storage that can hold 350 books.

It will retail for $199, a third off the price of the basic Kindle model and about $80 less than Sony’s PRS-505 reader, which will be discontinued. Color choices include blue, red and silver.

The device is entering a small but growing market. U.S. e-book sales totaled $113 million last year—up 68 percent from 2007 but still a fraction of the estimated $24.3 billion spent on all books, according to the Association of American Publishers.

Steve Haber, president of Sony’s Digital Reading Business Division, expects the Pocket Edition’s price tag will lure new consumers who haven’t wanted to shell out for such a device thus far.

And he’s not worried that the Pocket Edition’s chances for success will be diminished by the rising popularity of reading e-books on smart phones like the iPhone and BlackBerrys.

“Once you see it, it’s been a consistent response of, ‘That’s cool,”‘ he said.

Sarah Rotman Epps, a media analyst at Forrester Research, said the Pocket Edition’s price below $200 breaks an important psychological barrier.

“This is something that is affordable for the holiday season, and I think that you’ll see sales of e-readers outpacing current forecasts,” she said.

Her current forecast calls for sales of 2 million digital reading devices this year; she said a little more than 1 million were sold by the end of 2008.

She doesn’t expect Amazon to rest on its laurels, adding that the online retailer will have to respond to counter Sony’s new price point.

Sony is also announcing on Wednesday the release of a $299 touch-screen model to replace its existing $350 touch-screen PRS-700. The Touch Edition will have the same six-inch screen as its predecessor but not the PRS-700’s built-in light. Haber said removing the light will correct some screen clarity problems it has caused.

With the PRS-700, users can highlight text and take notes with a touch-screen keyboard. On the new model, users also can write notes with a finger or a stylus that is included.

The new model has a built-in dictionary and is faster at changing pages when readers swipe a finger across the screen. It will sell in red, silver or black and can hold 350 books in its built-in memory or more on a memory card.

A big difference between Sony’s Readers and Amazon’s Kindle has always been the lack of wireless access for quick and simple downloads of books. The new models are no different: They have to be connected to a computer to acquire books.

For the first time, they will be compatible with PCs and Mac computers, though. Sony will offer current Reader owners a software update to make theirs compatible with both.

As he has indicated in the past, Haber said Sony is working on a wireless model, though he wouldn’t say when.

Sony also is adjusting prices to some of the e-books it sells through its online eBook Store. New releases and best-sellers will now sell for $10, $2 less than current prices. Amazon’s Kindle Store offers most best-sellers and new releases for $10.

Sony’s eBook Store includes more than 100,000 books, as well as a million free public-domain books available from Google Inc. through its Google Books project. The Kindle Store currently has more than 330,000 available titles.

The Kindle can only download books from Amazon’s store, while Sony’s Readers can display texts sold in the “epub” format—an open standard supported by the International Digital Publishing Forum that numerous publishers use to make e-books.

Law students and veterans compete for openings

If you want to get a laugh out of Diann Lapin, who recruits students for Valparaiso University's 130-year-old Law School, just ask her if there are too many lawyers—particularly in these economically-depressed days.

“Any time the big law firms have cut backs, you start reading in the press that there are too many lawyers. But no one knows the answer to that question including the American Bar Association, the authoritative research group,” Lapin, executive director of law school admissions, said.

She said the career aspirations of its students haven't been overruled by the stern job market. “There are some of our graduates getting jobs in big law firms. The vast majority of our students go into small to medium-sized firms and into business, government and social service because they are the people who best understand policy issues related to our culture.

“Law over the years has become a much broader-based pursuit than just practicing in a law firm,” Lapin said. She said the university doesn't send its students out in the world until they have an inkling of how to find gainful employment.

“We start in the first year by helping them put together a legal resume. Our students also do internships and externships. They get actual practice in the law while they are here. We offer a number of networking opportunity with our alumni.”

She said that while the law changes constantly, Valparaiso's basic approach to legal education would be recognizable to any of its former students.

“By and large we still use the Socratic Method and the core competencies will always be the same, contract, civil procedures and that kind of thing. We keep pace with what the changes are out there.

“What we have found when we get into the second and third year of our popular seminars that they choose to pursue involve intellectual properties, sports law and newer areas that have developed over the years,” Lapin said.

She said the vast majority of their law students come straight from undergraduate programs with bachelor's degrees in the humanities and the social sciences, but with higher aspirations.

“About 22 percent of our class (185 full-time and about 30 part-time student) are older students, some of whom have already been in law-related professions or other professions they know without a doubt they want to continue in, but they want the law degree to have some kind of a fuller career in that profession.

“One of our students graduating this year came to us with a master's degree in geology. He knew he wanted to be a geologist, but decided he wanted a law degree so he could understand the myriad of laws that relate to geological exploration. He has gone to work in Houston for one of the big oil companies and is moving into a management position he would not have had, but for his degree,” Lapin said.

William F. Satterlee III, managing partner for Hoeppner Wagner and Evans LLP, in Merrillville and Valparaiso, said there are no layoffs in his firm, one of the largest in Northwest Indiana.

“We have hired one student from the third-year class. We obviously look for good grades and good writing skills. Clearly someone who is a self starter, who takes responsibility, is a good team player. Things like that are important. He said they look for candidates who have been active in their school's law review, a scholarly publication by students on legal issues. Satterlee said law school cannot always teach all the necessary skills a lawyer of successful law firm needs.

“They are certainly well educated, but even though they may be book smarter, often times their people skills are a little different. Many never had to do much on their own. They have been provided for the whole time. There are times when you have to not only address your clients' needs, but also be a rainmaker and bring in business to the firm.”

Lake County Prosecutor Bernard Carter said his office normally hires five to 10 attorneys annually out of law school because of high turnover in his office, but he said the economy has caused his staff to stay and he is even getting job wanted inquiries from experienced lawyers who would normally shun the lower pay attached to his office. “We just hired a Munster lawyer in private practice for 20 years because it's so tough for a single lawyer with all that overhead.”