Entries in the woodlands (2)
Could Katz's Klose?
Katz's Deli is such an iconic spot that when CNBC did a story last week about Texas being one of the best places to do business, they broadcast live from Katz’s Deli on 6th street. CNBC possibly chose the wrong location considering they parent company M&M Katz Inc filed for Chapter 11 protection July 20th.
Despite the filing, owner Marc Katz said the deli’s motto — “Katz’s Never Kloses” — will remain true, albeit probably not at the 618 W. Sixth St. location has called home since 1979.
Katz’s Deli was founded when the then-33-year-old New Yorker had “more hair and a lot less belly,” moved his family down to Texas and with a loan from his ex-wife's mother was able to achieve his dream of serving New York-style deli classics and traditional Jewish kosher-style cuisine.
Most around the state know Katz as the man who would do anything for free publicity including running for Mayor of Austin and most recently, Lieutenant Governor of Texas. He said the bankruptcy is not related to the failed campaign attempt. Instead, he said rent is too expensive and his landlord has threatened to evict him, after Katz sold him the building during hardship and leased space back.
In 2006, Katz said he leased back the deli space and nearby parking for the next 20 years, after selling three downtown properties for $4.4 million. Current court records show he is paying $22,478 a month in rent, or $269,000 per year.
Katz said agreeing to his lease terms was his “biggest mistake,” but also said he was “asleep at the wheel” and did not respond to rising costs and declining economic conditions quickly enough.
Also according to court records, Katz’s Deli owes $121,900 in federal, state and county taxes. The company owes about 14 vendors about $30,000 and owes more than 55 past and present employees about $26,000. The company has annual revenue of about $2.7 million, based on court records that said monthly revenue is $225,900.
Katz said he is looking at several new locations, but did not disclose what parts of town they are in, although he hinted at leaving downtown.
“All options are open. I’ve been looking north and south,” he said.
Katz said he never recovered financially after choosing to enter into a law suit with his son, Barry, who owns and operates delis in Houston, including a Katz's Deli on 616 Westheimer St. and Kattz's Express in The Woodlands. Records show the elder Katz sued his son and the younger Katz decided to separate entirely. The Austin store went to the Marc Katz and Barry built Houston.
This is not the first time Marc Katz has filed for Chapter 11 bankruptcy. In 2004, with about $6 million in debt and as many as 99 creditors, including the IRS, lender Amresco Commercial FinanceLLC, Dallas-based law firm Hughes and Luce LLP, and Katz’s son. A restructuring plan for the bankruptcy was approved in 2005.
Today, the cost of doing business, including insurance and taxes, is rising, and “in hard times you have to cut back, and I didn’t do it fast enough,” Katz said.
DISH spoke with Barry Katz this morning and he had this to say.
"I am sorry to hear about the financial difficulties with the current location in Austin. I hope my Dad finds another location or gets his rent lowered. I am glad he is determined to keep the Austin Katz's from Klosing, this is an Austin institution. This has no impact on my Houston or Woodlands area locations, we have run our businesses separately for about 8 years."
Houston Lost one of it's most Supportive
Over the weekend, Houston lost on of it's most supportive and humble givers. Cynthia Woods Mitchell was a well known patron of the arts, cared deeply about the environment and worked hard on historical preservation. She was 87 upon her death at her home in The Woodlands. Survivors include her husband, oilman-real estate developer George Mitchell, and 10 children.
Mitchell supported a wide range of charities from the Boy and Girl Scouts to Trinity Episcopal Church and Texas Children's Hospital.
“She was a force of nature,” the Mitchell family said in a prepared statement. “Our family will always remember the dynamic, colorful person that she was: intelligent, altruistic, totally original and hilariously funny. Her kindnesses are remembered by people she barely knew.”
She was a Depression-era child from New York City where she was raised by her single mother. This life perspective is, no doubt, where her heart for giving was sparked. Mitchell came to Houston with her twin sister, Pamela Loomis, in 1939 to study literature, art and psychology at the University of Houston. She met her future husband two years later while traveling by train from College Station to Houston. They were married on Halloween 1943.
In the mid-1970s, Mitchell launched plans for The Woodlands, an innovative planned community 30 miles north of Houston. Cynthia Mitchell picked the new development's name.
Together, Mitchell and her husband moved to breathe new life into economically bypassed Galveston, George Mitchell's hometown.
Beginning with the 1871 League Building in 1976, the Mitchells restored 17 iron-front buildings in the island city's historic downtown. Among their projects were conversion of the Leon and H. Blum Building into the luxurious, European-styled Tremont Hotel. On the beachfront, they bought and restored the Galvez hotel. On the Gulf and Galveston Bay, they built two new hotels, the San Luis and the Harbor House.
“Mrs. Mitchell brought style and sophistication to all the family's work to preserve historic Galveston,” said Dwayne Johnson, Galveston Historic Foundation executive director.
Mitchell's interest in history and historic preservation manifested itself on the national level in the 1990s when she became a board member of the National Trust for Historic Preservation. The group later presented her its highest honor, the Crowninshield Award.
Mitchell's interests and philanthropies extended to arts and sciences. Serving on the board of the World Wildlife Fund, she underwrote exhibits featuring endangered animals at the Houston Museum of Natural Science.
At the University of Houston, Mitchell underwrote a distinguished authors' program. She was a benefactor of the Houston Symphony, Houston Grand Opera and Houston Ballet. She was instrumental in creating UH's Cynthia Woods Mitchell Center for the Arts.
Mitchell was diagnosed with Alzheimer's Disease in 2002. It was a diagnosis she met with “optimism and dignity,” said family spokeswoman Dancie Ware.
In the wake of medical bad news, the Mitchell family poured resources into research to find a cure for the degenerative disease. Created were the George and Cynthia Mitchell Center for Neurodegenerative Diseases at the University of Texas Medical Branch-Galveston and the George P. and Cynthia Mitchell Center for Research on Alzheimer's Disease and Related Brain Disorders at the University of Texas Health Science Center in Houston. The family also supported research at Baylor College of Medicine.
“Cynthia Woods Mitchell filled the most demanding roles, from parent to civic entrepreneur, beautifully and with sparkling intellect,” said Dr. Larry Kaiser, UT Health Science Center president. “...She provided generously for the health of future generations by giving to medical research. She brought a sense of optimism as well as common sense and business acumen to the most daunting project and in all that she did, she defined womanly grace.”