Leasing News

Changing of the guard: Outgoing Equipment Leasing Association Chairman Joe Lane, formerly of IBM, and incoming chairman Edward A. Dahlka, Jr., President, LaSalle National Leasing Group.

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Classified Ads---Jobs Wanted

Operations: Experienced Credit, Collections, lease and Finance operations. Manager w/ expertise in improving bottom line performance, excellent trainer, manager, motivator. Get result/ keep the customer coming back. Email:rgmorrill@comcast.net

Operations: Wayne, NJ

20+ heavily experienced collection/recovery VP looking to improve someone's bottom line. Proven, verifiable track record. Knowledge of all types of portfolio. Will relocate Email:cmate@nac.net

Receptionist: San Diego, CA.

An outgoing, people loving person. Can handle several tasks at once. 35 wpm, some receptionist exp.in high school office, &some comp. knowledge. email:dvynangel69@msn.com

Sales: St Lucie, FL

Sales, credit, doc. exp.w/top communications skills. Exp. large territory management from home office. Various industries; golf equipment, construction, ff&e, computer related, and others. Sales achiever. Email:David34983@aol.com

Sales: Phoenix, AZ

Sales professional with 10 years of leasing experience, seeking a direct leasing company. Currently in the IT leasing market with vendor relationships, Small/middle market arena. Email:cycling4fun2002@yahoo.com

Sales: Dallas, TX

Director, Business Development for international financial institutions. Global vendor programs with minimum sustainable volume of $24M annually. CFO and Treasury contacts with major technology and energy corporations.Email:tkorpolinski@ev1.net

full list available at: http://65.209.205.32/LeasingNews/JobPostings.htm

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Fitch 11:00am Teleconference: Aircraft Leasing Industry

Today at 11:00 a.m. ,EDT, Fitch Ratings will host a teleconference to address several major issues within the aircraft leasing industry. The call will be led by Philip Walker who will provide and overview of Statement of Financial Accounting Standards #144 and conduct a review of the leasing companies. Also participating on the call will be analysts; Craig Fraser (aerospace and defense), William Warlick (Airlines), Donald Powell (EETCs), Sharon Haas (Banks) and Eileen Fahey (Securities Firms).

The events of the last two years have demonstrated the volatility inherent in the aircraft leasing industry and the need for a specialized skillset as Disney and Whirlpool have learned. While the drivers of success in aircraft leasing vary from company to company; one constant remains: cost. Cost is all encompassing and includes the price in which equipment is acquired, financed, maintained and monitored. Cost will be the primary driver as to who are the winners and losers in the aircraft leasing industry will be.

Domestic participants should call 1-877-897-0442 and international participants should dial 1-706-643-7396 five minutes prior to the 11:00 a.m. EST start time and give the title of the call - 'Fitch'. The call leader is Philip Walker. Interested parties who are not available for the teleconference will be able to hear a replay of the call starting on Thursday, Jan. 16 at 2:00 p.m. EST, until Jan. 21. Domestic listeners should dial 1-800-642-1687 and international participants should dial 1-706- 645-9291 and use the conference ID '7579090'.

Contact: Philip Walker (aircraft leasing) 1-212-908-0624, New York; Craig Fraser (aerospace and defense) 1-212-908-0310, New York; William Warlick (Airlines) 1-312-368-3141, Chicago; Donald Powell (EETCs) 1-212-908-0570, New York; Sharon Haas (Banks) 1-212-908-0362, New York or Eileen Fahey (Securities Firms) 1-312-368-5468, Chicago.

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United Equipment Leasing Association Loses One Member

The “official number” given to us for the end of last year count was 379 members.

Jim McCommon, UAEL media representative, told us the end of year

2002 is 378. He also sent us the enclosed press release:

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President Bette Kerhoulas, CLP, said ‘We were gratified that at a time of economic challenge and consolidation in our industry, that our membership stayed fairly level,”

Bill Grohe, Past UAEL President and current Membership Director said, “Involvement in Association activities adds value to the members’ professional strengths and abilities. Our educational programs (including 2 scheduled CLP Institutes for Leasing Professionals) and conferences (Spring Education Conference in Palm Desert and Annual Convention and Exposition in Portland) bring members into contact with the profession’s best practices and with the industry leaders who are developing those practices and making them work.

UAEL was established in 1974 as an association bringing together all segments of the leasing industry, including brokers, independent lessors, funders, bankers and service providers. It is the only leasing association that extends full voting privileges to all members.

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The press release from UAEL noted that all its members “have full voting privileges,” most likely a reference to the National Association of Equipment Leasing Brokers, where only brokers may vote in election of officer, not “funders.”

New UAEL Office Address:

78-120 Calle Estado Suite 201

La Quinta, CA 92253

Phone: (760) 564-2227

Fax: (760) 564-2206

Website: www.UAEL.org

newline@uael.org

advertising@uael.org

membership@uael.org

institute@uael.org

ethics@uael.org

2002 UAEL Staff

Joe Woodley

Chief Executive Officer / jwoodley@uael.org

Bill Grohe.

Director of Membership and Marketing / bill@uael.org

Originally the Western Association of Equipment Leasing (WAEL,) the

organization expanded to the East Coast. In recent years, the

membership has been "leveling off." The executive director

works out of Southern California with an administrative assistant

and the membership director works out of his office in San Francisco.

There are "off site" part-time employees, plus services hired

for specific operations, it is reported.

The Certified Leasing Professional ( CLP ) program started here was "spun

off" and is now a joint association sponsored and run "foundation.." There

are currently 231 Certified Leasing Professionals. http://www.clpfoundation.org/

UAEL evolved from "sigs," industry segments represented at the board level and at conferences, and from active regional meetings to "funding symposiums" conducted throughout the United States. "We got complaints from the funding source members about their employees doing too many regional meetings. It was too expensive for them to send all of their people to the regional meetings "(so we changed) from 24 regional meetings to the 6 super regional events," former president Bob Rodi, CPL, describes it.

Here is a message from President Betty Kerhoulas, CLP:

http://www.uael.org/about/benefits/

Dues:

Broker/Lessor ($0-10 million)...............................$ 595

Broker/Lessor ($10-20 million)..............................$ 995

Broker/Lessor (20+million)................ .................$ 1,295

Funder... ..................................................$ 1,995

Service Providers (less than 6 employees)...................$ 795

Service Providers (6 or more employees).....................$ 1,495

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Donna Mount Joins Wildwood Financial

We are pleased to announce the addition of Donna Mount to the Wildwood

Family. Donna has been brought on board as regional Vice President for

us in our Colorado Springs, Colorado office.

Her contact information is:

3107 West Colorado Ave., #176

Colorado Springs, CO 80904

Phone: 800-227-0274 (719) 633-3110

Fax: 888-836-8282 (719) 268-6903

Email: donna@wildwoodfinancial.com

Donna brings to Wildwood over 16 years of experience in Equipment

Leasing and Financing. You may remember her from Government Leasing

Company.

The Colorado Springs office will officially open January 27, 2003.

We are very excited about the addition of Donna to the Wildwood

Financial Group.

Bob Baker, CLP

President/CEO

Wildwood Financial Group, Ltd.

800-373-3581

ba <mailto:baker@wildwoodfinancial.com> ker@wildwoodfinancial.com

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Kit Menkin’s Top Ten Leasing Industry Rumors----

(please send to a colleague and ask them to subscribe, as we are trying

to build our readership. You may print any or all without our permission.)

10) Republic of South Carolina business is down two to three million dollars a month

since cutting off over 100 brokers. Reportedly management is not concerned as

they state they are more interested in quality, than volume. Their parent NetBank

is hungry for business, getting more aggressive in the mortgage marketplace.

The Atlanta Journal recently wrote a story mentioning the $80 million loss

at Commercial Money Market, in legal dispute now with the insurance underwriters, while other creditors line up in the bankruptcy proceedings in San Diego, California.

9) Matsco since being acquired by Greater Bay Bank has been getting tighter and

tighter with credit. It is reported they have not only slowed down approvals,

but expansion. Some think they are even getting out of several dental/medical

product segments. They are actively looking to purchase leasing portfolio’s from

lessors from $300,000 to $75,000, with credit on the lower side and rates

on the higher side, according to inside information. Greater Bay Bank stock has not been doing as well in the past ( that is being polite ).

8) Look for ex-Mellon to start/expand the Washington Mutual Leasing division.

7) GATX is reportedly going to close their San Francisco office, or greatly down size it, and consolidate the operation to their other office. Reason is cost of real estate in San Francisco, higher salaries, and if business is not up, find places to cut

overhead to maintain your profit margins.

6) The Thomas J. Depping Sierra Cities memo that the RW Professional portfolio was not a significant item “or risk” to notify American Express during the period of

time of the purchase has become a “collector’s item.” American Express,

when discovered “irregularities” in the portfolio, asked for an audit, and after a “due diligence,” ruled the Depping decision as “ a bad business judgment” and nothing more.

5) A.J. Batt has been trying to get his internet/contact software onto the marketplace since he retired from ATEL Capital. The only problem he has is he doesn’t want to spend money to promote it ( nothing new, right?)

4) His e-mail comes back, so it looks like Ted Clark is no longer at First Interstate Bank (which was taken over by UPS Leasing (remember, they said they wanted to concentrate on calling on UPS Leasing customers for equipment leasing business?)

3) Ditto--- Dennis Cesen

2) Preferred Leasing/Capitalwerts are going very strong, over 200 new

deals a month. McQuitty-Reader are back!!! and strong! Balboa look out.

1) Net Bank has formed a new division with Jim Merrilees heading it up in Portland. What Net Bank has effectively done is create a new BCL/Manifest structure. I would appreciate it if you not put my name on it, but Republic was the last pure broker funding source in the country. The same distrusts that applied to BCL/Manifest now apply to Republic since Net Bank owns them both. More to follow.

Note: These are rumors, any confirmation, denial, or comments are

certainly welcome, and invited. By the way, this was written Tuesday,

February 14^th, but not enough news to make a February 15^th issue. Editor

(please send to a colleague and ask them to subscribe, as we are trying

to build our readership. You may print any or all without our permission.)

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Merrilees joins NetBank.® Company Launches Leasing Finance Division For Business Equipment Vendors and Manufacturers

ATLANTA NetBank® (Nasdaq: NTBK), the first commercially successful Internet bank, Wednesday announced the formation of NetBank Capital, a business equipment finance division serving vendors and manufacturers. The division will specialize in small-ticket transactions ranging from $10,000 to $250,000 with the capability of funding transactions of up to $1 million.

NetBank hired Jim Merrilees, CLP, to lead the division. A 30-year veteran of the commercial leasing industry, Merrilees has held (many) senior management positions in the small-ticket market over the past sixteen years. His industry experience includes developing vendor programs and purchasing third-party broker business and portfolios. (He is presently a member of the Equipment

Leasing Association board of directors, and a past president of the United

Association of Equipment Leasing.)

“NetBank has always focused on providing its customers options for when and how they receive services,” said NetBank spokesman Matthew Shepherd. “This new division allows us to reach small business owners through a new outlet. Jim brings a customer-centric approach and is the perfect person to lead this initiative.”

NetBank Capital complements the bank’s existing equipment leasing operation and its plan to introduce a small business banking program this year. The division will operate out of Portland, OR, and can be reached at 503-598-2193.

About NetBank

NetBank is the country’s first commercially successful Internet bank and currently serves more than 150,000 customers in all 50 states and 20 foreign countries. NetBank offers a full line of financial services designed around the needs and lifestyles of its customers. Its branchless business model allows it to operate at a fraction of the cost of a traditional bank. Since it’s founding in 1996, NetBank has passed the cost savings to customers through more competitive deposit rates and free account services, such as online bill payment. Through its mortgage lending subsidiaries, Market Street Mortgage Corporation and RBMG, Inc., NetBank is a top 30 mortgage lender. NetBank, Equal Housing Lender and Member FDIC, is a primary operating subsidiary of NetBank, Inc. (Nasdaq: NTBK), a diversified financial services company. For more information on NetBank’s products and services, please visit www.netbank.com.

CONTACT:

Rich Jeffers

NetBank®

Phone Number: (678) 942-7596

E-mail: rjeffers@netbank.com

(courtesy ELAonline.com )

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Fed Panel: Still Unclear if Recession Over

WASHINGTON (Reuters) - An elite economic research panel that monitors U.S. business cycles said on Wednesday it was still too early to tell if the recession that began in March 2001 had given way to recovery.

"According to the most recent data, the U.S. economy continues to experience growth in output but declines in employment," the National Bureau of Economic Research said in a memo posted to its Web site.

"Recent data confirm our earlier conclusion that additional time is needed to be confident about the interpretation of the movements of the economy last year and this year," the NBER added.

The NBER's five-member Business Cycle Dating Committee has been poring over data to determine if the economic contraction that started nearly two years ago has ended and if so, when. Many analysts believe that a recovery likely began late in 2001 but the committee is holding back on making a definitive finding, in part because the economy has remained sluggish over the past year.

Robert Hall, chairman of the Dating Committee, has said that the group wants to rule out the possibility that the economy has suffered a renewed downturn. If that were the case, the group would have to determine if any renewed contraction amounted to a new recession or if it were a continuation of the 2001 downturn.

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Economic Growth Still Subdued, Fed Says

Further Rate Cuts Unlikely, Experts Say

By John M. Berry

Washington Post Staff Writer

The U.S. economy's slow growth has continued into the new year, the Federal Reserve's latest survey of economic conditions found. But few analysts or investors expect Fed officials to cut interest rates again when they meet in a policymaking session late this month.

The survey released yesterday, conducted by the Fed's 12 regional banks, found "subdued growth" in economic activity from mid-November through early January. The weakest report came from the Dallas Federal Reserve Bank, where regional growth "remained anemic."

"Reports on consumer spending were consistently weak" across the country, the report said, with holiday sales mostly at or below last year's levels.

Another sign of the uncertain path of the economy was a statement issued yesterday by a committee of private economists of the National Bureau of Economic Research, which is the accepted arbiter of when recessions begin and end. It declined once again to declare that the recession that began in March 2001 has come to an end. More time is needed to be sure that a renewed slump would "be a separate recession, not a continuation of a past one," the committee said. The group was particularly troubled by the loss of 181,000 jobs in November and December.

Fed Chairman Alan Greenspan has used the term "soft patch" to describe the slowing of economic growth that began last summer. Even though the Fed's target for overnight interest rates was already at a 40-year low of 1.75 percent, Greenspan and other officials decided in early November to reduce the target to 1.25 percent. At a policymaking session last month they left the target unchanged and are expected to do so again at the conclusion of a two-day Fed meeting Jan. 29.

According to yields on futures contracts covering overnight interest rates, only about 8 percent of investors expect a further cut in rates then. One reason is that recent public statements by several Fed officials have included no hint that they would like to cut again.

"It looks to me as if the recovery is reasonably well positioned to continue, moderately but steadily," Cathy E. Minehan, president of the Boston Federal Reserve Bank, told a Vermont audience last week. "We just need to have some patience."

A few days earlier, Minehan's counterpart at the Atlanta Fed, Jack Guynn, gave this view of the new year: "I expect that if consumer spending and housing hold up and business profitability continues to firm, there is every reason to believe that GDP will grow around 3 percent -- slightly better than last year." And that growth, he added, "ought to be more broad-based . . . and less concentrated in particular sectors like housing and autos."

As the summary of the Fed's survey of economic conditions makes clear, however, recent growth has not been as strong as Fed policymakers predict for later in the year. Growth in the final three months of last year, for instance, probably was at an annual rate of only about 1 percent -- and some analysts have said it could be close to zero.

The survey summary said that in addition to weak consumer spending over the holiday period, "providers of nonfinancial services saw little change in existing weak demand, and business travel remained slow."

It added: "Home sales and residential construction remained at high levels but slowed a bit in some areas, and the widespread overhang of commercial real estate persisted."

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Federal Reserve Bank Region Comments

By Associated Press

WASHINGTON (AP) Here are excerpts from the economic outlooks of the Federal Reserve's 12 regional banks, which formed the basis for the central bank's appraisal on Wednesday that economic growth around the nation remained subdued as the new year began.

BOSTON: ''The economy remains soft, but business contacts appear to be somewhat more confident that they can cope with a period of slow activity than they were earlier in 2002. Most New England manufacturers report no increase in demand for their products. Retail respondents indicate sales were below expectations in the October-December period. Residential real estate markets are slowing, but perhaps only seasonally. Insurance companies cite gains.''

NEW YORK: ''The economy has been mixed since the last report with weakness in retail sales and some easing off in the housing market, but signs of a pickup in manufacturing and some stabilization in commercial real estate. Retailers mostly indicate that holiday and post-holiday sales were below plan. Both selling prices and merchandise costs were described as steady to lower than a year ago, but retail inventories were said to be at manageable levels.''

PHILADELPHIA: ''Business conditions were mixed in December. Manufacturers reported slight gains in new orders for the month compared with November. Retail sales of general merchandise during the Christmas shopping period barely matched the prior year's level, overall, and some stores had year-over-year declines. Auto sales were steady during most of December at around the same pace as in November, but they picked up near the end of the month.''

CLEVELAND: ''The economy continued to show mixed signals during the last six weeks of 2002. Although some deterioration in conditions was noted among contacts in the non-discount retail, automotive retail, steel and banking industries, it appeared that more contacts saw flat conditions or slight improvement. Both homebuilders and trucking and shipping contacts reported continued favorable conditions in their industries.''

RICHMOND: ''Economic growth remained sluggish in the weeks since our last report as modest growth in the services sector was tempered by sluggish growth in retail sales. Retail sales increased modestly in November, but growth was sluggish on balance. ... In manufacturing, shipments were flat and new orders showed fledgling growth in the weeks since our last report. District home sales remained exceptionally strong.''

ATLANTA: ''Economic activity remained subdued during late November and December. Merchants' sales were mixed and discounting was widespread over the holiday period. Auto sales, however, improved in December. ... Factory activity was sluggish, with new layoffs in some sectors and slowing production in others.''

CHICAGO: ''Economic activity remained soft toward the end of 2002. Consumer spending again was relatively soft and many retailers' expressed disappointment with holiday sales results. Business spending was also sluggish and capital expenditure plans for the new year were said to be cautious.''

ST. LOUIS: ''Contacts indicate that economic activity softened in recent weeks. In manufacturing, reports of plant closings, layoffs and cutbacks have increased. Retailers report that holiday sales were below expectations despite heavy discounting. The reduced consumer spending was attributed to a shortened shopping season, bad weather and a weak economy.''

MINNEAPOLIS: ''Economic activity was subdued from mid-November through early January. Tourism, agriculture and commercial construction activities were down. Consumer spending and energy were flat. However, manufacturing, home building and mining grew. Over this period, labor markets tightened slightly while overall wage and price increases were modest. Significant price increases were noted in employee benefits, natural gas and gasoline.''

KANSAS CITY: ''The economy was very sluggish in December. Holiday retail sales were little changed from a year ago. Energy activity failed to rise despite higher prices and commercial real estate activity remained soft. Moreover, motor vehicle sales eased again and manufacturing activity weakened after showing signs of stabilizing in the fall. ... In the farm economy many ranchers and farmers continued to suffer from drought conditions.''

DALLAS: ''Economic activity remained anemic from mid-November through early January. Demand was weak for most manufacturing and service firms. Construction activity continued to soften. Retailers were disappointed by holiday sales. Although there was a slight pickup in energy activity, the gains were substantially less than would have been expected given the sharp increases in energy prices. ... Respondents said that the uncertainty about war with Iraq continues to restrain business investment.''

SAN FRANCISCO: ''Contacts reported sluggish growth in economic activity during late November and December with little change in most industries from trends reported in the previous survey. Regarding prices, reports indicated widespread heavy discounting among retailers with little upward pressure on prices. Increases in wages and salaries were modest and employers passed on some of the increases in health care costs to workers.''

On the Net:

Federal Reserve: http://www.federalreserve.gov

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Fitch Webcast/Teleconf: 2003 ABS Outlook - Replay Information

NEW YORK----Fitch Ratings hosted a conference call today discussing its 2003 asset-backed securitizations (ABS) credit outlook and performance update at 10:00 a.m. Eastern Standard Time. Managing and senior directors from Fitch's ABS group presented 2003 forecasts and gave an overview of 2002 performance for the following asset types:

-Aircraft

-Equipment Leasing

-Auto Loans and Leases

-Student Loans

-Credit Cards

In addition to a general outlook for the aforementioned asset classes, Fitch analysts commented on specific issuers in each sector.

To access the webcast replay, go to 'www.mshow.com.' Under 'Join a Show,' entrants should then type in show number '83733.' The site will then prompt participants to input their registration information. A link to the webcast replay will also be available on Fitch's own site at 'www.fitchratings.com.' The webcast will be available for 60 days on both web sites following the call. There will also be an audio replay of the teleconference available from 2:00 p.m. EST on Jan. 15 until midnight on Jan. 22. The audio replay numbers are 800/642-1687 (domestic) and 706/645-9291 (international). The access code for the replay is 7407749.

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Comdisco Announces Fiscal Year End Financial Results; Adopts Fresh-Start Reporting For Period After Emergence From Chapter 11

ROSEMONT, Ill.----Comdisco Holding Company, Inc. (OTC:CDCO) reported financial results for its fiscal year ended September 30, 2002. Upon emergence from Chapter 11 on August 12, 2002, the company adopted fresh-start reporting. For financial reporting purposes only, the effective date of emergence from bankruptcy is considered to be July 31, 2002.

In the discussion that follows, "Predecessor Company" refers to Comdisco, Inc. prior to emergence from bankruptcy and "Successor Company" refers to Comdisco Holding Company after emergence from bankruptcy.

Under fresh-start reporting, the company was required to allocate the reorganization value, as stated in its Plan of Reorganization, to its assets and to state liabilities existing at the Plan confirmation date at present values of amounts to be paid determined at appropriate current interest rates. Primarily as a result of the factors discussed below, the reorganization value was less than the fair value of the emerging company's net assets as estimated by the company as of July 31, 2002.

Under fresh-start reporting, the excess of the fair value of net assets over reorganization value is used to reduce the value of certain assets (primarily long-lived non-financial assets) to zero and any remaining excess is recognized as an extraordinary gain. As a result, the carrying value of property, plant and equipment was reduced to zero and, during the two months ended September 30, 2002, the Successor Company recognized an extraordinary gain of $241 million, net of tax.

The excess of the estimated fair value of the net assets of the emerging company over the reorganization value as stated in the Plan primarily relates to three factors: 1) the European IT Leasing business performing better than expected, 2) the strengthening of the Euro from the time of estimation of the reorganization value as stated in the Plan, and 3) the reorganization value as stated in the Plan considered future operating expenses, whereas the estimated fair value of the net assets of the emerging company did not. Operating expenses of the Successor Company will be expensed as incurred in accordance with generally accepted accounting principles.

Under the Plan, Comdisco's business purpose is limited to the orderly runoff or sale of its remaining assets. As more fully discussed in the company's Annual Report on Form 10-K for the year ended September 30, 2002, the company's ability to effectively implement its Plan is inherently uncertain. For a further discussion of the uncertainties and risks associated with the company's future results of operations and financial condition, please refer to the section titled "Risk Factors Relating to the Company" contained in the Annual Report on Form 10-K.

As a result of the bankruptcy restructuring transactions, adoption of fresh-start reporting and multiple asset sales, the Successor Company's financial results are not comparable to the Predecessor Company's financial results.

Operating Results: For the two months ended September 30, 2002, the Successor Company reported net income of $224 million, or $53.37 per common share. Net income for period includes the extraordinary gain of $241 million mentioned above. Revenue for the period totaled $170 million.

For the ten months ended July 31, 2002, the Predecessor Company reported a net loss of $541 million, or $3.59 per share. Included in the net loss is a $153 million extraordinary gain related to the discharge of indebtedness as well as $369 million of charges for fresh-start accounting adjustments. Revenue for the ten-month period totaled $1.2 billion.

For the twelve months ended September 30, 2001, the Predecessor Company reported a net loss of $272 million, or $1.80 per share. Revenue for the twelve-month period totaled $2.5 billion.

Please refer to the company's Annual Report on Form 10-K filed on January 14, 2003 for complete financial statements.

The per share results for the Successor Company are based on the 4.2 million shares of new common stock (OTC:CDCO) issued upon emergence from bankruptcy. The per share results for the Predecessor Company are based on old shares of common stock that were cancelled as a result of the bankruptcy restructuring transactions. Accordingly, historical per share results of the Predecessor Company are not comparable to per share results of the Successor Company.

Additional Information on Contingent Distribution Rights: The company is required to provide information to holders of contingent distribution rights (OTC:CDCOR) distributed to former holders of old common stock in the bankruptcy restructuring transactions. The Annual Report on Form 10-K discloses that the percentage recovery to former creditors holding class C-4 claims that have been allowed is approximately 72% as of January 9, 2003. Please refer to the section titled "Contingent Distribution Rights" contained in the Annual Report on Form 10-K for a complete discussion and important details.

About Comdisco

The purpose of reorganized Comdisco is to sell, collect or otherwise reduce to money in an orderly manner the remaining assets of the corporation. Rosemont, IL-based Comdisco (www.comdisco.com) provided equipment leasing and technology services to help its customers maximize technology functionality and predictability, while freeing them from the complexity of managing their technology. Through its former Ventures division, Comdisco provided equipment leasing and other financing and services to venture capital backed companies.

CONTACT:

Comdisco Holding Company, Inc.

Mary Moster, 847/518-5147

mcmoster@comdisco.com

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Allegiant Partners hires Paul Foster as Managing Director and starts a new equipment financing subsidiary named Allegiant Capital Incorporated

Allegiant Partners Incorporated, the California-based specialty equipment finance company, announced today that it has hired Paul Foster as a Managing Director. Mr. Foster comes to Allegiant Partners with over 30 years of experience in the finance business, the last twelve of which he was arranging structured middle market equipment and other financings. Allegiant is starting a new equipment-financing subsidiary concurrently with the hiring of Mr. Foster that will allow Allegiant to underwrite and arrange transactions that do not fall within its current underwriting profile.

Allegiant Partners has focused primarily on booking “story” A and B credits in the transaction size range of $30,000 to $250,000 holding the leases to termination. The creation of Allegiant Capital, a new subsidiary, will give Managing Directors John Steindorf and Paul Foster additional capabilities in structuring, funding and closing larger and more complex equipment financings. Allegiant Capital will be focusing on premium-rate opportunities in the dollar range of $250,000 to $5,000,000.

“Allegiant Partners is coming off an excellent year in 2002. We booked over $10 million in leases for our own account and our portfolio continues to perform well. We were able to structure and syndicate positions in several middle market transactions, including a $3.0 million DIP financing and several other quality, high-yielding leases. We are excited about Paul Foster coming on board and about our highly qualified team of professionals,” stated Chris Enbom, President of Allegiant Partners.

Allegiant Partners recently signed a $5,000,0000 term line facility to add a third term lender. For more information concerning Allegiant Partners, please call Doug Houlahan (x 205) or Paul Foster (x 206) at 415-257-4200, John Steindorf at 262-790-9460 or visit www.allegiant-partners.com.

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Banknorth Group Among Forbes Platinum 400; Named One of the `Best Big Companies in America'

PORTLAND, Maine----Banknorth Group, Inc. (NYSE:BNK) was recently named to the Forbes Platinum 400 list. The designation appeared in the Jan. 6 issue of the publication, in an article entitled "The Best Big Companies in America."

The Forbes Platinum 400 were cited as "having the best balance of long and short-term financial performance."

"This is great recognition of our Company as it shows that our combination of acquisitions and community banking are creating profitable growth," said William J. Ryan, Banknorth Chairman, President and Chief Executive Officer.

A firm must rank in the upper half of one of 23 industry groups in composite scoring for return on capital, sales growth and earnings growth to make the list of premier blue chips. To further qualify a firm must also have revenues over $1 billion.

Among the 23 banks that made the list, Banknorth tied for third in 5-year profitability and was 13th in 12-month profitability. Banknorth also was 4th in 5-year earnings per share growth.

Banknorth Group, Inc., headquartered in Portland, Maine, is the parent company of Banknorth, NA, which operates as Peoples Heritage Bank in Maine, Bank of New Hampshire, Banknorth Massachusetts, Banknorth Vermont, Banknorth Connecticut and Evergreen Bank in upstate New York. Banknorth Group also operates subsidiaries and divisions in insurance, investment planning, money management, leasing, merchant services, mortgage banking, government banking and other financial services. Banknorth Group, Inc. is one of the country's 35 largest commercial banking companies with total assets of $22.5 billion at September 30, 2002.

CONTACT:

Banknorth Group, Inc.

Brian Arsenault, 207/761-8517

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e-Bank Announces Version 2.1 of MaxiFI

Business Editors/Banking & High-Tech Writers

COLUMBUS, Ohio-- --e-Bank, LLC, a leading provider of enterprise solutions for the financial services industry, today announced the newest release of its Enterprise Business Integration Engine - MaxiFI(TM) Version 2.1. MaxiFI is the first solution to leverage Web Services specific to the financial services industry for use across all delivery channels and lines of business. MaxiFI delivers a more powerful and flexible enterprise platform with modular solutions that target key business initiatives in today's post-CRM environment. The latest release:

Allows clients to establish an information integration architecture that supports an expandable message-based services platform across the enterprise.

Supports retail and business banking, consolidating key business logic and processes for more consistent sales and service.

Delivers leading edge functionality - focused on improving customer satisfaction - to the solution's already robust self-service capabilities.

"We are very excited with the latest release of MaxiFI. With our new modular approach to the product, we can enable clients to incrementally purchase and install the solution along a strategic technology road map. This allows them to receive the benefits of 'quick-hit' wins while simultaneously establishing a long-term enterprise strategy," said Tom Hetterscheidt, e-Bank's Vice President of Product Management. "Version 2.1 provides a solution that gives financial institutions the ability to rapidly align their technology plans to address their highest priority business issues."

About e-Bank(R)

e-Bank (http://www.ebancllc.com/), a software and services technology company, specializes in developing and delivering information integration and presentation solutions to the financial industry. e-Bank's solutions generate bottom-line return on investment by leveraging pre-built software modules, which are deployed to address specific business initiatives.

e-Bank's solutions are backed by comprehensive professional services that support clients from initiation through mission critical production support. e-Bank works in conjunction with its world-class strategic alliances network that includes Hewlett-Packard, IBM, Computer Sciences Corporation, Corillian, and Unisys.

Founded in 2000 via a joint venture between industry leading technology firms, e-Bank is a privately held limited liability company and is headquartered in Columbus, Ohio. For more information about e-Bank, please visit http://www.ebancllc.com/ or call 888/530.0340.

--30--JAM/cl*

CONTACT: e-Bank, LLC

Erin McCoy, 614/480-7672

erin.mccoy@ebancllc.com

####################################################### ##

Bankruptcy judge OKs Conseco employee bonuses, financing

By Mark Jewell

ASSOCIATED PRESS

INDIANAPOLIS – Employees of Conseco Inc. and its consumer finance unit stand to receive millions of dollars in bonuses as an incentive to stay with the company during its Chapter 11 reorganization.

A Chicago-based bankruptcy judge approved a bonus program for St. Paul Minn.-based Conseco Finance Corp., and granted interim approval to continue a similar program at the parent company.

Judge Carol A. Doyle on Tuesday also approved a $150 million credit package that will enable Conseco Finance to continue operating during bankruptcy.

Conseco Inc., based in the Indianapolis suburb of Carmel, became the third-largest U.S. company to seek bankruptcy protection when it filed on Dec. 17. The insurance and finance company expects to emerge from bankruptcy this spring, with hopes of cutting $6.5 billion in debt to $1.4 billion in a process that could leave creditors holding equity ownership.

The $3.8 million incentive program at Conseco Finance would give 58 key employees bonuses worth half their annual salary for staying during reorganization.

Conseco said in its bankruptcy filing that the parent company's incentive program could cost more than $30 million over three years and affect 575 managers at Conseco, which employed about 14,000 companywide at the end of 2001. A court hearing on final approval for that package is scheduled Jan. 29.

Without such programs, creditors could be hurt and Conseco's reorganization prolonged by the loss of company managers and their expertise, said Steve Jones, an associate finance professor at Indiana University who specializes in corporate bankruptcy.

While some investors and members of the public may criticize rewards to managers who failed to prevent bankruptcy, experienced employees are as essential in bad times as in good, Jones said.

An incentive program like Conseco's "is becoming kind of standard in bankruptcies," Jones said. "If they start cutting back on these things, I think they're penny-wise and pound-foolish, because that will cost them in the long run."

Judges approved similar packages in the Enron and WorldCom bankruptcies.

Conseco Finance is to be sold at auction Feb. 28 to help raise cash to pay off creditors. A New York investment partnership, CFN Investment Holdings, has tentatively agreed to buy the finance unit for about $1 billion. At auction, others could potentially submit higher bids.

Under the financing package approved Tuesday, Conseco Finance will receive $125 million in secured credit from lenders including CFN, with a longtime Conseco Finance creditor, Lehman Brothers Inc., providing another $25 million in unsecured credit.

Conseco's 1998 purchase of the finance unit for $6 billion ultimately proved to be its undoing. The unit, previously known as Green Tree Financial Corp., became a drain on the parent company as more mobile home loan customers defaulted, leaving Conseco with a glut of repossessed homes.

Conseco's bankruptcy filing, which excluded its profitable insurance subsidiaries, listed $52.3 billion in assets and $51.2 billion in debts.

On the Net:

www.conseco.com

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VC slump is worst in three decades

THIRD-QUARTER NUMBERS BAD; OUTLOOK GLOOMY, REPORT SAYS

By Matt Marshall

San Jose Mercury News

Silicon Valley's venture capitalists are in the worst slump in at least three decades -- and times aren't expected to get better soon.

Losses in the venture capital industry have been so prolonged that some VCs could be forced out of business and some patrons might decide to pull their money out, a new survey suggests.

That scenario could eventually mean less money trickling down to Silicon Valley's entrepreneurs.

Last year's third quarter was the seventh consecutive quarter of negative returns for venture firms, the longest decline since data was first collected in 1969, according to a survey released Tuesday by Venture Economics and the National Venture Capital Association.

Those negative declines are eating away at the expectations held by the big institutions, such as state and corporate pension funds and university endowments, that first entrusted their money with venture capital firms on assumptions that they'd yield superior long-term results.

Incorporating the negative returns through Sept. 30, 2002, the average annual returns for the industry for the last 20 years have now slipped to 14.5 percent, or below the 15 percent floor that these large investors expected when they first started investing a decade or two ago. (Those are the returns for the broad private-equity world -- which includes venture capital and buyout firms.)

The large investors are in the midst of rejiggering their money allocations, and the poor venture capital results could mean they shift money instead to the public stock or bond markets.

The survey showed that while venture firms continued to lose money in the third quarter of 2002 on their investments, at least they are losing less than during the previous quarter.

Venture capital firms, which specialize in investing money into start-ups, saw their returns decline by an average 22.3 percent for the year ended Sept. 30, 2000. That's less than the 27.9 percent drop suffered in the year ended June 30, according to the survey.

Already, the gloom pervading some VC circles has led to dark humor. At a recent venture capital panel discussion in New York, one entrepreneur complained about the lack of funding, and a venture capitalist responded: ``Who says you need to get any!'' recalls Jesse Reyes, vice president of Venture Economics, also on the panel. ``You're left with the three `f's: friends, families and fools.''

The venture returns are based on the amount of profit the firms realized from their investments and the interim change in valuations of their remaining portfolio companies.

In the mid-1990s, some of the best venture firms boasted 50 percent returns annually over five years or more. Many investors shifted their expectations for long-term annual returns upward to 17 percent or above, Reyes said.

While pension funds and universities are busy studying where else to put their money, they've had a difficult job making decisions, Reyes said. Most other markets, including the public stock market, are suffering too.

Reyes said he expects venture firms to have completed their write-downs on their portfolio companies by the end of 2002. Moving into 2003, the first part of the year is often when venture firms hold their investor relations meetings. Here, Reyes expects many firms to return money to disgruntled investors, in an effort to show good will, meaning 2003 could be another lean year for entrepreneurs.

Contact Matt Marshall at mmarshall@sjmercury.com or (415)477-2518.

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Readers re: Leasing News 49er-Tampa Bay Game Report

As a Buccaneer fan since the 70's I know how you feel in your team's loss.

As a past president often said, "I feel your pain". Uhhhh, not really...

I am just too happy with the team, but I still remember all the dumb things

that players and coaches have done in the past while at Tampa.

As I was told back in our terrible days "De-Nile is not a river in Egypt."

I think you are not delusional but were right on the money by suggesting

that the 49'ers were not consistent; the fact is that the bye week for the

Buc's allowed them to play a close to complete game. If I can brag a

little (because next week may be a different story) the boys from Tampa Bay

played one heck of a game. They contained your passing and running by keeping

the ball on offense. The 49'er defense was confused, which was a fun thing to

watch for a Buccaneer fan!

But let me get to a strange analogy. A friend and I were discussing not

long back about how the success of a city's sport team(s) have on the

individual success of businesses of that city! We were comparing the

successful years of the Bucs compared to the successful years in business.

Although this is totally unscientific, our conclusion was that good years

in sports translate in better years in local economies.

I look forward to a good year! I need it this year in leasing!

Tom Doyal

tdoyal@tampabay.rr.com

Suncoast Equipment Funding/Ervin Leasing

PS: I thing it might be a very interesting game, and predicted this a while

back, it would be the Raiders versus Tampa Bay///Grudin's old time,

that he trained, including coaches, and his new team, which he trained.

That would be one hell of a game.

( I said at the beginning of the year it would be the Titans, the Raiders,

the Bucs and the Patriots in the playoff games---well, I was wrong about the Patriots, so let me stick my neck out again---It will be the Bucs vrs. the Raiders. The new Grudin team vrs. the old Grudin team, and I’ll go with Grudin, even though I am an Oakland Raider fan-- after the 49ers---half the Raiders are

ex-49er players anyway,. editor)

---

Sorry about your 49ers. You may remember 6 weeks ago when I emailed that it would be a Raiders/Bucs Super Bowl and I'm sticking by my

prediction. Final Score Raiders - 27, Buccaneers - 10.

I sent out the following announcement last week and am not sure if you received it. Here it is again, just in case.

Gary Millhollon

I am sending this email to provide you my new contact information. As most of you know, I left First Capital Group October

1, two years after selling the company to First Banks.

I am now an officer with PNB Capital Leasing. In this position, I look forward to dealing with my past customers, vendors and

intermediaries. I am empowered to transact business nationally, with no geographic constraints.

PNB Capital’s parent company is PNB Financial, a publicly traded financial institution with banks throughout Texas, and

subsidiaries in trust services, insurance, merchant banking, investment securities, and mortgage banking. With almost $2 billion

in assets, we have the strength and size to handle your transactions from $250,000 to $10MM and up.

Perhaps more important, PNB has displayed an aggressive “can doÆ attitude that I believe allows me to serve my clients in a

very responsive manner.

You can contact me using the following information:

Gary Millhollon

PNB Capital Leasing

11005 Spain NE

Albuquerque, NM 87111

Phone 505-323-1990

Cell 505-710-5100

Email gmillhollon2@hotmail.com

(Hey, that is a plug!!! Editor )

If John & Denise York and the 49-er fans don't want

Maruicci anymore, I am sure Miami would consider him.

Anyone has got to be better than that Neanderthal we

have now who couldn't take a team to the playoffs with

six Pro Bowlers and a 1600 yard rusher.

Jim Fleming

nationalbusinesscredit@yahoo.com

---

AMEN!! When Maruicci is gone and a new coach arrives that is willing to

"open it up" the niners will start winning again. Special teams also hurt

them this year (What ever happened to George Stewart?) I couldn't believe

Maruicci walking off the field before half time with two times outs still

left for and enough time to possibly run two more plays???

GO 49ers!

Robert A Hatfield

hatfrob@us.ibm.com

(He sent this early Tuesday morning. editor )

---

Kit:

Does this mean you're NOT taking that position on the board of directors

of the Mariucci Fan Club?

Ken

P.S. Personally I think that considering all the injuries (Lindsy

McLean said a few weeks ago that he'd never seen the team this beat up

in 25 years) they did a hell of a job. Nothing to be ashamed about.

Ken Goodman

kendg@msn.com

(what's the pay? editor )

NOWHERE NEAR ENOUGH (:-)) K

(The above s e-mails were sent before the announcement below: )

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49ers fire Mariucci after six seasons

Brian Murphy, San Francisco Chronicle

Steve Mariucci was fired Wednesday as head coach of the San Francisco 49ers.Philosophical differences between Mariucci and the club were a major factor in his dismissal, team owner John York said. Mariucci wanted more authority in the form of title of vice president of football operations. A source close to Mariucci denies that he asked for more authority. Mariucci will be paid for the one season left on his contract of $2.25 million.” This is not a performance issue that has forced us to reach this decision,'' York said. "Rather, our decision is based upon a difference in philosophy within the 49ers' structure on how to best utilize our various talents in pursuing the goal of fielding championship teams and winning a Super Bowl.''

Former Vikings coach Dennis Green and 49ers defensive coordinator Jim Mora Jr. might be candidates to replace Mariucci. The 49ers will conduct a nationwide search and will consider current staff members as well to replace Mariucci.

The Jacksonville Jaguars are the only other team with a head coaching vacancy. The Jaguars fired Tom Coughlin last month. The 49ers' season ended on a disappointing note with a 31-6 loss to the Buccaneers on Sunday in the NFC divisional playoffs.

Team owner Dr. John York, the husband of Denise DeBartolo and brother-in-law of former owner Ed DeBartolo, said in a conference call that "philosophical" issues prevented him from keeping Mariucci as coach, citing obstacles both "major and minor" in allowing Mariucci to coach the last year of his contract.

The move closes a classic power struggle at a franchise known for its dramatic coaching and personnel issues, and means Mariucci is the first coach since 1978 to leave San Francisco without winning a Super Bowl. The high-stakes theater was evident in Mariucci's departure from team headquarters Wednesday afternoon -- in a black van with curtains behind the driver.

It was widely perceived that Mariucci, hired by the Carmen Policy-Dwight Clark regime in 1997, was not the favored choice of general manager Terry Donahue and consultant Bill Walsh, who rejoined the team in 1999. York alluded to that rift in explaining the firing.

"I didn't think it was best to have a lame duck coach," York said. "I thought it best to have a coach we were fully committed to. There was enough noise about Steve Mariucci as our head coach, about Steve vs. Bill, about Steve vs. Terry Donahue, about whether or not we love Steve. There was too much noise.

"You can't have all that and move the team along."

Donahue, in a noon press conference at team headquarters, said the termination was not performance-related. Instead, Donahue said, Mariucci's desire for more power in the organization -- a request that dates to last year, he said -- proved a problem. In addition, last February's very public episode when Mariucci met with ownership of the Tampa Bay Buccaneers about a job was a strain that never entirely left the organization's thinking.

"I think this is a situation in which a relationship eroded over a period of time," Donahue said. "I think Steve and John have a relationship, but I think it has been strained over a period of time from last year . . . also, some of the things that arose out of the Tampa Bay issue.

"Also, it was stated very directly and plainly that Steve would like to have his role increased with the 49ers. I think when you go through all those things, that eventually wears on a relationship."

Said York: "(The Tampa Bay issue) certainly was something I believed both of us have gotten over, but I won't say either one of us had forgotten it."

Mariucci was told of his termination by York in a 90-minute morning meeting in Mariucci's office, although one source said Mariucci learned of the axing on television, even before York came to the building. Mariucci did not speak to local reporters, and scheduled a press conference for today. He did, however, give an interview to ESPN.com Wednesday afternoon, stating a contrary view to the 49ers' public statements about his desire for more power, specifically the title of vice president of football operations.

"I'm surprised to listen and learn that (purported request for more power and the title of director of football operations) was an issue at all," Mariucci told the Web site. "I guess I'm shocked to hear that part of it."

Mariucci's new agent, Gary O'Hagan, denied ever making that demand in his only meeting with York - - in St. Louis on Dec. 30, the day of the 49ers- Rams game -- and instead said it was the 49ers who raised that issue. York grew testy when asked which side was telling the truth.

"If this is going to turn into a 'we said, they said,' I'm not interested in getting into that," York said. "I know what Steve said last year, I know what Steve's agent said this year, and I didn't bring it up."

Mariucci said to ESPN.com: "I'm just surprised and saddened -- I didn't see it coming. Really, I didn't. I have a lot of admiration for this place, and I've invested a lot here. So, sure, I wanted to stay and finish what we had set out to do."

There had been widespread speculation that the 49ers might try to work out a compensation package with the Jacksonville Jaguars, who are searching for a head coach and are believed to be interested in Mariucci. Last year, the Raiders received four draft picks and $8 million cash from Tampa Bay in exchange for releasing coach Jon Gruden from the final year of his contract. But any thought of the 49ers swinging a similar deal were squashed by the NFL on Tuesday, when the league issued a moratorium on such trades.

Donahue said the moratorium, which extends to March 31, spiked any consideration of the 49ers gaining compensation for releasing Mariucci from his contract.

The sequence of events began Monday night, when Mariucci and York, who was in Youngstown, Ohio, had a phone conversation that left York feeling a change was necessary. He phoned Donahue at home around 9:30 p.m. to inform him of the conversation, and Donahue said York "expressed to me some very strong concerns" about keeping Mariucci.

That the relationship soured is not a surprise to those close to Mariucci, who said the coach was never sure of his relationship with his owner after the Tampa Bay incident last February. Mariucci guided the 49ers to the NFC West title and a second consecutive playoff berth this year despite that cloud, and then decided he would like to coach through the 2003 season even without an extension.

But York's mind was made up, the owner said, even before Mariucci made a face-to-face plea in their Wednesday morning meeting. It was York's belief that Mariucci's desire for more power in personnel issues would interfere with York's preferred flow chart for the team -- with Donahue as general manager, Walsh as consultant and John McVay as vice president/director of football operations.

"It was clear to me that the way Steve saw this organization was clearly different from how I did," York said. "(Mariucci's preference for more power) was brought up last year when Steve asked for an extension. He asked for a number of areas of control outside his head coaching role.

"And this year, when I met Gary O'Hagan for the first time in St. Louis, one of the things Gary said is that Steve would like to be V.P. of football operations when and if John McVay retired."

Asked if Mariucci's desire would infringe on his responsibilities as general manager, Donahue answered: "I'm assuming it would have."

This led to the thought that Mariucci had lost a power play, when he, in essence, asked York to choose between himself and the Donahue-Walsh faction. Donahue continued to deny, however, that he gave anything less than full support to the coach.

"I think Steve Mariucci received as much support and cooperation as any coach could ever want," Donahue said. "I do not feel at all like we were in a position of not supporting our coach. I think that is folly."

Speculation as to Mariucci's successor began immediately, and York said he would consider both an internal hire -- defensive coordinator Jim Mora is considered a head coaching candidate -- and an African American hire. Already, former Stanford and Minnesota Vikings coach Dennis Green told ESPN, for whom he works, that he would like to be considered.

"I've always considered myself part of the 49er family," Green said. "I have some interest in that job."

Mariucci, 47, leaves with a 57-39 regular season record, and with four playoff appearances in six years. He earned $2.1 million last year, and was due to earn $2.2 million next year. York said Mariucci would be paid according to a clause in his contract, though KGO radio broadcaster Gary Plummer said that payment would only be $733,000, or one-third of Mariucci's 2003 salary. The money was due Mariucci after York, in one of his first moves on the job in 1999, signed Mariucci to a five-year contract extension.

Predictably, players were saddened by the news, as Mariucci's gregarious style and outgoing personality made him popular. Offensive lineman Dave Fiore was emotional in discussing the move.

"It's hard to take," Fiore said. "Look at all the things he's done this year, winning the West and taking us to the playoffs. There are so many questions. . . . He's a great guy and a great coach.

"His overall persona has brought a lot, both on and off the field, things like attitude and respect. That's what makes this organization stand out."

York and Mariucci shook hands and embraced at the end of the meeting, around 11:30 a.m. -- and York said both a "business obligation" and his emotional fatigue prevented him from joining Donahue at the noon press conference.

"This is a difficult day," York said. "Steve has been a very good, a great coach for us. I think you all know we've supported him all four years. We were supportive during our two years of not winning, and we've been supportive the last two years.

"Steve's been a good friend, we've done things together, but this is something I thought was necessary to move things forward."

Mariucci went 57-39 while leading the 49ers to four playoff berths over six seasons.Mariucci said recently he wanted to return to San Francisco -- and was willing to coach without an extension next season, if necessary. York said he preferred not to have a lame-duck coach. Mariucci earned the 19th-highest salary among the NFL's 32 head coaches, a bargain rate for a coach with Mariucci's track record. But Mariucci and his family enjoy living in Northern California, and he has tried to repair any hurt feelings caused by friction over the 49ers' refusal to sign him to a contract extension last season. Mariucci angered the 49ers' front office last winter by campaigning for a new contract through the media, and then talking to the Buccaneers last February about becoming their coach and general manager

. The teams worked out a compensation package, but when Mariucci waffled on his decision, Tampa Bay hired Jon Gruden. After rejecting Tampa Bay's offer, Mariucci changed agents and rededicated himself to the 49ers. They recaptured the division title and finished 10-6 despite significant injury problems on defense. In a wild-card playoff game earlier this month, San Francisco rallied from a 24-point deficit to beat the New York Giants 39-38 for Mariucci's third playoff victory.

(John Madden on his Monday CBS radio show predicted Mariucci’s demise.

If you were to listen to the fans, Mora’s name is mentioned often with words

we cannot print in Leasing News. KGO Radio, “the voice of the 49ers,” says

Mariucci is going to sit the year out, collect his money, wait for more football coach openings, explore life as a “broadcaster.” Meanwhile, local television

stations report police are watching his house here in Saratoga for irate fans.

( I am not making this up.)

Speculation on who will be the next 49er coach, you can bet it won’t

be TerrellOwens. My vote is Mike Shanahan. I think he is the best coach in football who makes the best out of what he has. Or maybe Pat Carroll, as he certainly has turned USC around. It sure would be smart for the former UCLA coach Terry Donahue to steal Carroll away from USC. Editor )

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Chargers offer to pay for half of proposed $400 million stadium

By Bernie Wilson

ASSOCIATED PRESS

SAN DIEGO – The Chargers are offering to pay for half of a $400 million stadium they want built to replace 36-year-old Qualcomm Stadium.

Under a proposal that the team will present Thursday night, the public's contribution of $200 million would be paid off in part by taxes generated by a mixed-use "urban village" that would include housing, shops, restaurants and a hotel on approximately 70 acres of the 166- acre Qualcomm site.

"We decided that simply proposing a new football stadium was not sufficient to win public support, nor would we consider asking the city for money from the general fund, particularly at a time of serious budget shortfalls," said attorney Mark Fabiani, who's leading the Chargers' efforts to get a new stadium.

Fabiani will present the Chargers' proposal to a citizens task force on Thursday night. The task force will present its recommendation on the Chargers' future to the City Council, probably by late February.

Attorney Mike Aguirre, a frequent critic of the Chargers' lease with the city, questioned the team's proposal for the public portion of the project.

"Where it comes from doesn't change the character of the money. It's still public funds," Aguirre said. "The idea that it's going to come from some kind of magic development and all that, that's all what-if's and speculative.

"It sounds to me that the Chargers have been sandbagging the city. They didn't need to wait until Jan. 16 to say, 'We'll pay $200 million and razzle-dazzle you with where the rest of the money will come from.'"

Fabiani said the Chargers believe the city could make $100 million from selling the land to be developed, with the rest of its commitment coming from a bond sale that would be paid off by property taxes, sales taxes and hotel occupancy taxes. Once the stadium is paid off, the city would continue to make money off those taxes, which it doesn't currently get from the site, he said.

Fabiani said there's the possibility of a $50 million loan from the NFL, which would reduce the Chargers' commitment to $150 million.

The Chargers propose that the urban village be developed by the city.

"We simply want to be tenants in a stadium that allows us to be financially competitive," Fabiani said. "Whether the city has another idea, we'll listen."

The proposed stadium would seat 64,000, but would be expandable to 72,000 to accommodate future Super Bowls that the Chargers hope to attract. This year's Super Bowl will be played at 70,000-seat Qualcomm, which the NFL says has fallen below standards in several areas.

A new stadium would be built next to Qualcomm, which would then be torn down.

Other details will be released Thursday night.

Qualcomm Stadium is surrounded by approximately 17,000 parking spaces.

"You don't have to be a genius to realize this is a badly underutilized site," Fabiani said. "When the Padres leave, it will be the world's largest parking lot and a stadium that will be empty for about 355 days a year."

The Padres are scheduled to move into a downtown ballpark in April 2004.

Aguirre said he wants the Chargers to explain why the city should spend $200 million more when it's already paying off a $78 million stadium expansion in 1997 that was part of a deal to extend the Chargers' lease through 2020 and attract future Super Bowls. Plus, the city has already paid the Chargers some $31 million as part of a controversial ticket guarantee.

Fabiani said the team's proposal is intended "to open a very public planning process."

"Obviously the reaction to it will be of great interest to us. Beyond that, it will give the city a notion of what's possible, then the city has to decide if it wants to move ahead or not."

The Chargers would like to have a stadium issue on the November 2004 ballot.

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