uWhy Builders Are Tearing Down Old Suburban Houses And Replacing Themr

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  (hpaich)

  I was recently alarmed to see a modest-sized house in my neighborhood demolished to make way for a much larger residence that straddles two lots. I shouldn’t have been surprised to see that house knocked down: it was a two-bedroom, one-bathroom home built during the Great Depression taking up space in a wealthy suburb, and the real estate market won’t stand for that. The little house’s demolition fits with a nationwide pattern: older suburbs are turning over.

  Homes in the towns closest to city centers with the shortest commutes are the most valuable, but also the most vulnerable to being bulldozed and displaced by much larger homes. Three bedrooms and one and a half bathrooms (or even only one bathroom) was an acceptable suburban home back during the post-World War II expansion of the suburbs. Now those houses are kind of old, and prime targets for builders who want to replace them with larger, modern houses. One trade group for builders says that about 32,000 homes were torn down to make way for new ones last year, which means that about 5% of all newly constructed houses were replacing an existing structure.

  What happened in my neighborhood happens on a larger scale in larger cities where land alone is even more valuable. Bloomberg Business interviewed a builder who bought two dozen smaller homes in Virginia suburbs close to Washington, D.C. The economics are simple: the houses cost less than $500,000 each, and can be replaced with homes that are three times as big and sell for more than $1 million.

  The Mansions That Are Swallowing Suburban Homes [Bloomberg Businessweek]

  
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by Laura Northrup via Consumerist

uFord Recalls Nearly 445K Vehicles For Power Steering Failure, Fuel Leak Issuesr

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  (Freat Beyond)

  Ford Motor Company issued two new recalls Wednesday covering nearly 445,000 vehicles after receiving numerous complaint and incident reports, including at least four accidents related to loss of power steering and high underbody temperatures.

  Ford announced today that it will recall 422,814 model year 2011 to 2013 Fusion, Flex and Lincoln MKS and MKT, model year 2011 to 2012 Lincoln MKZ and 2011 Mercury Milan vehicles for a possible electrical issue that can lead to steering difficulties.

  The manufacturer says the issue – an intermittent electrical connection in the steering gear – can result in loss of electric power steering assist while driving.

  If the loss of power steering occurs, the system defaults to manual steering mode making it difficult to steer and increasing the risk of a crash.

  Ford says it is aware of four minor accidents, but no injuries as a result of the issue.

  In a complaint posted to the National Highway Traffic Safety Administration website, the owner of a 2011 Ford Fusion says the power steering assist in their car has failed at least five times.

  “Once while I was driving, which caused me to crash into a curb and get a flat tire,” the owner recalls. “It seems to resist itself after I turn the car off and turn it back on.”

  Another owner of a 2011 Ford Fusion tells NHTSA that the vehicle’s power steering failed while driving 60 miles-per-hour on the highway.

  “When this happened I was at an off ramp exit and had almost zero steering,” the complaint states. “I panicked and tried to get off the exit which has a sharp radius turn. I could not keep the vehicle on the road and traveled off into grass until I could skid to a stop.”

  Dealers will perform one of two service fixes, depending upon whether certain diagnostic trouble codes are present in the vehicle. They will either update software for the power steering control module or replace the steering gear.

  The second recall covers 19,500 model year 2015 Ford Mustang vehicles with a 2.3 liter engine that may experience elevated underbody temperatures.

  According to Ford, prolonged exposure to elevated underbody temperatures might cause degradation of the fuel tank and fuel vapor lines, as well as parking brake cable seal deterioration.

  As a result, the vehicle could suffer a fuel leak – increasing the risk of a fire – or impaired brake function – leading the vehicle to suffer unexpected movement.

  Ford says it is unaware of any accidents, injuries or fires related to the issue.

  Dealers will replace the current fuel tank shield with a shield with better insulating capability, install thermal patches on the fuel tank and parking brake cable, and install thermal wraps on the fuel vapor lines.

  Ford Issues Two Safety Recalls In North America [Ford]

  
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by Ashlee Kieler via Consumerist

uFIFA Officials Arrested On Racketeering, Bribery, Money Laundering Chargesr

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  (Tom Fassbender)

  The world’s most prominent soccer organization has been rocked this morning with the arrest in Switzerland of multiple officials of the Fédération Internationale de Football Association (FIFA) and several allied businesses on charges that include racketeering, bribery, wire fraud and money laundering. The Justice Dept. claims the defendants have been enriching themselves through corruption for more than two decades.

  Among those charged today were Jeffrey Webb, a FIFA VP and the current president of CONCACAF, the soccer group’s governing body for North America, Central America, and the Caribbean. He was one of the seven defendants arrested earlier this morning. Webb’s predecessor, Jack Warner, has also been charged. Meanwhile, a search warranted has been executed at CONCACAF offices in Miami.

  FIFA and its multiple subsidiary bodies rake in billions of dollars each year in revenue from from media and marketing rights associated with its events, especially tournaments like CONCACAF’s Gold Cup and the FIFA World Cup.

  According to the DOJ, since 1991, the defendants and their co-conspirators engaged in fraud, bribery and money laundering for personal gain by allegedly making deals with sports marketing executives who paid bribes and kickbacks to keep their competitors from involvement in FIFA events.

  The FIFA officials involved in today’s announcement allegedly received more than $150 million in illegal payments from these executives. While most of the schemes detailed in the indictment involve kickbacks related to CONCACAF and CONMEBOL (FIFA’s South American governing body) tournaments, there are also allegations of illegal influence in the selection of South Africa as the host country for the 2010 World Cup.

  A handful of defendants have already entered guilty pleas, some going back as far as July 2013. Those were unsealed today. These include Charles Blazer, a former CONCACAF general secretary and a former FIFA executive committee member, who pleaded guilty to a 10-count information charging him with racketeering conspiracy, wire fraud conspiracy, money laundering conspiracy, income tax evasion and failure to file a Report of Foreign Bank and Financial Accounts. He forfeited over $1.9 million at the time of his plea and has agreed to pay a second amount to be determined at the time of sentencing.

  The owner and founder of the Traffic Group, the Brazilian sports marketing conglomerate, pleaded guilty to charges of racketeering conspiracy, wire fraud conspiracy, money laundering conspiracy and obstruction of justice. He agreed to forfeit over $151 million, $25 million of which was paid at the time of his plea.

  Defendants in the indictment face maximum jail terms of 20 years for the alleged RICO conspiracy, wire fraud conspiracy, wire fraud, money laundering conspiracy, money laundering and obstruction of justice charges.

  “The indictment alleges corruption that is rampant, systemic, and deep-rooted both abroad and here in the United States,” said Attorney General Loretta Lynch. “It spans at least two generations of soccer officials who, as alleged, have abused their positions of trust to acquire millions of dollars in bribes and kickbacks. And it has profoundly harmed a multitude of victims, from the youth leagues and developing countries that should benefit from the revenue generated by the commercial rights these organizations hold, to the fans at home and throughout the world whose support for the game makes those rights valuable.”

  FIFA has come under fire in recent years over rumors of graft and corruption, and for exerting too much influence in the areas where it hosts the World Cup. For example, during the most recent Cup, FIFA convinced Brazil to change a law banning the sale of alcohol at soccer games so that it could continue to reap advertising revenue from Budweiser.

  More controversial is the upcoming 2022 tournament in Qatar, which have been heavily criticized for taking place in a country with a horrendous human rights record, especially with regard to women and the migrant workers who are constructing the many venues needed to host the World Cup. Groups have called for sponsors of the World Cup to pull out of their backing of the Qatar games, but so far big-name brands like Visa and Coca-Cola have decided to remain involved.

  
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by Chris Morran via Consumerist

uHoulihan’s Apologizes For Turning Away Veteran With Service Dogr

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  Not the Houlihan’s in question. (ChrisYunker)

  National chain Houlihan’s has fired a manager at a Chicago-area restaurant and apologized to an Army war veteran who says he was refused a table for lunch on Sunday because he had his service dog with him.

  A 32-year-old who says he has post-traumatic stress disorder after serving for more than nine years on tours in Iraq and Afghanistan was accompanied by his Labradoodle — wearing a red service cape — and his mother for lunch over the weekend.

  According to the group, a Houlihan’s hostess as well as her manager questioned the need for the service animal and said dogs weren’t allowed inside when the group walked into the restaurant, reports the Elgin Courier-News.

  The family went to another restaurant nearby and were served without a problem, they say, but the vet’s mom posted about the experience on her Facebook page as well as Houlihan’s, in order to spread awareness.

  The vice president of operations for Houlihan’s Restaurant Group said she and the company were “mortified” to hear of how the veteran and his dog were treated, noting that the manager had been fired and the restaurant is donating $2,000 to Pets for Vets, upon the vet’s recommendation.

  The vet, his parents and his dog all went back to Houlihan’s on Monday, where the company says they all “had a nice conversation” about how the restaurant could do better in a similar situation the next time. That’s when the veteran and his family suggested the donation to Pets for Vets, to help cover the cost of training service dogs for others.

  “We are sincerely apologetic for the lack of respect and compassion that this veteran and his family experienced in our restaurant,” she said, adding that it’s company policy to welcome service dogs in all Houlihan’s restaurants.

  “He helps keep me calm … alerts me when there is something wrong,” the vet said of his dog, adding of the Houlihan’s experience that his canine companion “was just there to comfort and calm me down afterwards. I was rather upset.”

  He says that Houlihan’s management “apologized profusely” and adds that he thinks the company is sincere.

  Restaurant apologizes for turning away vet with service dog [Elgin Courier-News]

  
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by Mary Beth Quirk via Consumerist

uReynolds, Lorillard Must Sell Four Brands To Gain FTC’s Approval Of $27.4B Mega-Cigarette Mergerr

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  (Rosalyn Davis)

  You may recall that last July the No. 2 and No. 3 cigarette brands in the country announced thy were planning to go all in on a $27.4 billion merger. This week the two companies received the blessing from federal regulators, as long as they divest four cigarette brands to a British-based company.

  The Federal Trade Commission announced Tuesday that betrothed tobacco companies R.J. Reynolds American Inc. – the maker of Camel and Pall Mall – and Lorillard – the maker of Newport cigarettes – have agreed to sell a total of four brands to settle regulator’s concerns that the mega-merger would be anticompetitive.

  The proposed purchase by Reynolds would create a formidable rival for current top cigarette company Altria Group, the maker of Marlboros. Altria currently accounts for 46% of the U.S. cigarette market, while Reynolds has about 25% and Lorillard about 12% of the market.

  Under the proposed divesture order [PDF], Reynolds will divest three brands – Salem, Kool and Winston – and Newport will divest its Maverick brand to Imperial Tobacco Group.

  Imperial Tobacco Group currently has a competitive presence in about 70 counties, but a relatively small presence in the U.S. By taking over the four brands, the company will be a more substantial competitor for the new Reynolds and current cigarette leader Altria, and become the third-largest cigarette maker in the U.S.

  According to the FTC’s complaint [PDF], the merger raised significant competitive concerns as it had the potential to eliminate current and emergent competition for Reynolds and Lorillard in the U.S. market.

  Additionally, the FTC determined that without divesture there was a likelihood that the merger would unilaterally raise prices, and that coordinated interaction would occur between Reynolds and Altria.

  In addition to divesting the four cigarette brands, Reynolds must divest to Imperial the Lorillard manufacturing facilities in North Carolina and provide Imperial the opportunity to hire most of the existing management, staff and salesforce.

  The newly merged companies must also provide Imperial with retail shelf space for a short period of time and to provide other operational support during the transition.

  The FTC’s decision to require Reynolds and Lorillard to divest several brands doesn’t come as much of a surprise, as the two companies attempted to proactively escape regulatory scrutiny by proposing they would sell brands to Imperial.

  At the time of the merger announcement, the companies planned to sell Kool, Salem and blu eCigs brand for $7.1 billion.

  The proposed merger is expected to give Reynolds over $11 billion in revenue and approximately $5 billion in operating income to invest in innovation, consolidate production, sales and overhead – all of which worried health advocates.

  “There’s serious concern that a merged company with increased resources poses a real threat to increased tobacco marketing to America’s kids,” says Matthew Myers, president of the Campaign for Tobacco-Free Kids said last July. “This is a marriage of Joe Camel and Newport — two brands that have played a major role in youth tobacco use.”

  The Food and Drug Administration has put emphasis on curbing teen smoking this year with its first ever anti-smoking campaign aimed at teens. The $115 million multimedia education campaign aims to show youth the true costs and health consequences of smoking by focusing on how tobacco affects one’s outward appearance.

  FTC Requires Reynolds and Lorillard to Divest Four Cigarette Brands as a Condition of $27.4 Billion Merger [Federal Trade Commission]

  
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by Ashlee Kieler via Consumerist

uHormel Gobbling Up Applegate Farms For $775Mr

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• In a sign of the times, Hormel Foods Corp., the maker of Spam, is trying for that natural foods feeling and has decided that buying Applegate Farms for $775 million is the way to achieve it.

  The acquisition is expected to close in the next two months, reports Bloomberg News, as Hormel eyes all those organic-minded customers buying apple sausages and “natural” bacon.

  Applegate Farms will be bringing a slew of natural and organic sausages, hot dogs, cold cuts, chicken strips and other meat products to Hormel, under a brand that sources meat from around 1,800 family farms.

  Putting Spam and natural food together under one roof might seem odd, but Applegate will still operate as its own brand inside the company, with some Hormel workers heading to work at Applegate’s offices in New Jersey.

  Applegate Farms addresses the move on its website, with a FAQ section about why it decided to sell itself to Hormel, while reassuring customers that it’ll have the “same products” “same standards” and “same mission: to change the meat we eat.”

  “The only difference now is that our new partner, Hormel Foods, will offer more opportunity to find your favorite Applegate products in more places,” the site says, with a link to another statement by company founder Stephen McDonnell about the merger.

  He writes of having a stroke in December 2013 that has made it harder for him to lead, and that he believes Hormel is buying the company “because they believe we are doing something right.”

  “For years I’ve been saying to anyone who would listen that the Applegate model of antibiotic-free, humanely raised animal agriculture could be scaled up and that the big meat companies should get on board. This is it,” writes McDonnell.

  Hormel isn’t the first big food name to buy into the natural aisle of the grocery store: Last year General Mills agreed to buy Annie’s Inc., a company that peddles organic snacks like bunny crackers and fruit snacks as well as salad dressings and pasta mixes for $820 million.

  Hormel Foods Agrees to Buy Applegate Farms for $775 Million [Bloomberg]

  
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by Mary Beth Quirk via Consumerist

uBig Data Predicts Pollen Levels, Keeps Allergy Medicines In Stockr

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  The enemy: pollen. (Karen Chappell)

  Here in the Northeast, people who are allergic to pollen are having a harsh spring. They should take comfort, though, that there isn’t a corresponding shortage of allergy medicines, as there apparently was five years ago. Drug companies have learned how to take global climate data and turn it into more plentiful antihistamines when people need them.

  Bayer, for example, is the maker of Claritin, a pretty standard and popular new-generation antihistimine. According to the Wall Street Journal, Bayer plans its entire supply chain for Claritin as early as nine months in advance, and uses software that models climate patterns to predict levels of popular allergens, then make sure that those areas stay supplied. Real-time and past years’ sales data are important, too, but weather is an important variable in how demand for a certain medication can change.

  This spring, pollen levels are apparently up 25% on the coasts of the United States, which explains why people allergic to pollen are so unhappy, and why my car looks green. Experts say that this is because plants are spewing pollen, but there has been less rainfall than usual, which means that the pollen continues to float around, hitting humans in the face and causing allergic reactions.

  Using weather models has other applications outside of allergy drugs, but those are trickier since other health conditions don’t map as precisely as pollen levels do to allergic reactions. You can try to predict demand for cough medicine along with spans of cold temperatures, for example, but that’s imprecise. If you can predict pollen levels, though, you can probably predict demand for allergy medicines.

  Big Data Brings Relief to Allergy Medicine Supply Chains [Wall Street Journal]

  
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by Laura Northrup via Consumerist