MONDAY, NOVEMBER 1, 2010


KLMNO


EZ SU WASHINGTON BUSINESS GOP blasts property oversight


GSA AMONG TARGETS


Underused real estate too costly, report says


BY JONATHAN O’CONNELL


Capital Business Staff Writer SevenHouse Republicans have


coined a phrase to describe how they think the federal govern- ment is managing its property, including its local real estateport- folio: “Sitting on OurAssets.” Led by ranking minority-party member John L. Mica (Fla.), Re- publicansontheHouseTranspor- tation and Infrastructure Com- mittee recently issued a report by that name, criticizing the man- agement of real estate and other assets by agencies including the General Services Administration, Coast Guard,Army Corps of Engi- neers and Federal Emergency


Management Agency. The federal government is the


country's largest real estate own- er, with a portfolio of about 1.2 million facilities nationwide. An audit conducted during the George W. Bush administration found that the government owns 14,000 vacant buildings and un- deruses 55,000 other locations. Although President Obama is-


sued a memo in June requiring federal agencies to reduce real estate costs by $8 billion by the end of fiscal 2012, the Republi- cans’ analysis says the govern- ment continues to overly rely on leased space and retain under- used and vacant property. The GSA, the report says, “struggles to dispose of its surplus property in a timely fashion and for reason- able rates of return despite its enhanced property disposal au- thorities.” Of the $3 billion in cuts the


federal government needs to find beyondsavings expectedfromthe Base Realignment and Closure process, the Office of Manage- ment and Budget says it is half-


way there, noting that it recently sold a vacant former office build- ing in Bethesda for $12.3 million. But the Republicans seized on


the Bethesda building and other Washington area properties as ex- amples of what they called mis- management. The Bethesda offic- es, formerly occupied by the Na- tional Institutes of Health, “sat vacant for eight years, missing the height of the real estate market during which time GSA could have realized a good return on investment,” they said in their report. A GSA spokesman de- clined to comment on the report. The Republicans also lament-


ed the government’s inaction in re-purposing some prominent Washington properties. In the re- port, they point to the Old Post Office Pavilion, a partially occu- pied historic building onPennsyl- vania Avenue NW that the gov- ernment spends about $12 mil- lion annually to maintain, pro- ducing an annual operating loss of more than $6 million. During the real estate boom, developers expressed interest in transform-


ing the property into a hotel, but the government has not moved to sell or lease the property. A new annex to the E. Barrett


Prettyman Courthouse, at 333 Constitution Ave. NW between theMall and Judiciary Square, is also on the underutilized list. Though federal courts occupy the courthouse and annex, the build- ings house 10 fewer judges than projected, and two fewer “than it had when the new annex was proposed,” according to the re- port. The criticism could have an


effect on current and future GSA searches for office space, particu- larly iftheGOPwinscontrol ofthe House in Tuesday’s elections. The report criticized the new head- quarters of the U.S. Transporta- tion Department, which the gov- ernmentleases, as well as plans to lease 427,000 square feet for the Federal Trade Commission, argu- ing that buying a building instead could save the government as muchas$300million over the life of the facility.


oconnellj@washpost.com THISWEEK, NOV. 1-5


This week is as enormous as they come for economic news.


Monday Several reports are scheduled


that could offer insight on the health of the economy. Analysts expect new data to show that personal income rose 0.2 percent in September, and that consumer spending rose 0.4 percent. The estimates are already reflected in the 2 percent third-quarter GDP growth reported Friday. The manufacturing sector is


expected to have continued ex- panding, though at a slower rate, in October. The Institute for Sup- ply Management’s index is ex- pected to edge down to 54, from 54.4; numbers above 50 indicate expansion.


Wednesday At 2:15 p.m., the Federal Re-


serve is to announce results of its two-day policymaking meeting. This is easily the most scruti- nized, most hyped monetary poli- cy decision of the year, and argu- ably in many years. The central bank is expected to announce a major neweffort, namely plans to buy hundreds of billions of dol- lars of bonds to drive down lon- ger-term interest rates. The things to watch: How


much bond-buying will the Fed do (smart money is in the ball- park of $500 billion); how in- clined Fed leaders seem to be toward expanding the purchases further in the future (try to read between the lines of their policy statement); and how many poli- cymakers will dissent. Also Wednesday, the Institute


Neil’s Must Reads


The New Republic’s Noam Scheiber offers three unconventional ways that the Obama administration could boost the economy if Republicans win the House. And economist and blogger Tim Duy argues that the monetary easing the Fed is considering this week is too little, too late. Find links at washingtonpost.com/ mustreads, and links throughout the week on Twitter @Neil_Irwin


for Supply Management will re- lease its index of service-sector activity. The nonmanufacturing index is forecast to edge up to 53.5, from 53.2.


Thursday The release of third quarter


productivity data is expected to show a 1 percent gain.


Friday TheOctober jobs report should


give a sense of whether the labor market is gaining any momen- tum. Forecasters expect a contin- ued modest gain in private pay- rolls, with 80,000 new jobs, but for total payrolls to decline by 60,000 as state and local govern- ment jobs are slashed. The unem- ployment rate is expected to be unchanged at 9.6 percent. —Neil Irwin


NEWAT THE TOP RONNIEL.BURTJR.DESTINATIONDC


Convention exec’s history was a sure bet In high school, I went to a


career fair in Atlantic City and saw a university promoting its hospitality and tourism program. That’s when it really hitme. I wanted to go into the hospitality industry. It certainly didn’t hurt being raised in the Atlantic City area and seeing all the hotels, glitz and glamour, and very high-end properties. I’ma behind-the-scenes


JEFFREY MACMILLAN FOR THE WASHINGTON POST AtGelberg Signs’ production facility, ElaineHart, left, glues letters onto a newsign for Capital One Bank. The company is growing quickly. Their signs point to growth, so brothers look to take firmnational G


elberg Signs is a company dying to get bigger. Luc,Neil andGuy Brami,


the three brotherswho own the District-basedmanufacturer, are looking for an investorwhowill provide the $5million they need to go national. “Wewould like to find an


equity partner to give us a cash infusion,”Guy said. The five-year plan is to take revenue from $7million to $24million a year. Part of the plan is to find some


big national companies looking to roll out hundreds of newstores or locations. (ThinkWal-Mart or the latest fast-food fad.)Another part is towin every sign contract on a construction project in the District,where the Bramis keep a close eye on future development, following zoningmeetings,D.C. Council hearings and anything else thatwill give theman edge on a job. Luc is 54,Neil is 49 andGuy is


43. Gelberg Signswas founded in


1941 andmakes signs that direct you to everything froma restaurant to a restroom. Their prices can range from$30,000 for a custom-made lighted sign for a downtownWashington restaurant to $10 for one of the hundreds of restroomsigns hanging inside a big office building. Been to aRoyRogers lately?


It’s aGelberg sign that beckoned you. They are on the outside, and almost everywhere inside, of Nationals Park in SouthwestD.C. Gelbergmade the signs on every California Tortilla, the Children’s NationalMedical Center and the Walter E.Washington Convention Center. Cuba Libre, the newrestaurant


in PennQuarter, has aGelberg sign. If you drive theNewJersey Turnpike, aGelberg sign tells you which restaurant is at the next travel plaza.Gelbergwill put your brand on coffeemugs, key chains, pens and pencils. The brothers are politically agnostic; theywillmake signs for any political party and candidate. Gelberg grossed $7.2million in the fiscal year ending June 30


VALUE ADDED Thomas Heath


and expects to grossmore than $10million in the year ending next June. The company has operated out of itsNorthwest Washington location since 1966, where it occupies 50,000 square feet in an industrial area. Gelberg’s net profitmargin


before taxes ranges from3 to 5 percent, depending on howmany orders for high-margin, custom signs they get in one year. The brothers pay themselves a salary and some bonus fromthe profits. The Brami brothers are


ambitious and politically savvy businessmenwho are active in business organizations. Luc sits on the board of theWashington, D.C. Economic Partnership, and the brothers stay in touchwith theD.C. Chamber of Commerce. Their fatherwas an


impressionist painterwho arrived fromTunisia in 1956with a fewbucks in his pocket.Unable to findwork as a painter,Georges Brami hooked upwith Bill Gelberg,who had a little sign company inD.C. Brami,who had some business


smarts, soon becameGeldberg’s right-handman. WhenGelberg died in 1977,


Brami took over running the company for theGelberg heirs. He used a connectionwith Marriott International tomake the signs for the company’s growing consumer restaurant business,which at the time included the Pappy Parker and Jr. Hot Shoppes brands. The company did prettywell


under Brami until 1987,when the Gelberg family decided to sell the firmto outside investors. Brami, in his 60s at the time,


retired a couple of years after the takeover. The company tanked under the newowners, and


Brami’s sons bought it in 1989 for $100,000 in cash plus picking up the company’s $750,000 debt. Then theywent towork. Their contacts atMarriott told


themthat the hospitality chain was getting ready to ramp up its RoyRogers brand,whichwould meanmillions in newsignage work forGelberg,which already had the contract. WithRoyRogers, Bob’s Big


Boy restaurants andMarriott Hotels, the hotelierwas accounting for up to $1million a year ofGelberg’s revenues, half the company’s business. But in 1991,whenMarriott


decided to get out of the fast-food and restaurant business, the Bramis faced a crisis. Losing Marriott, amid a recession,was going to devastate revenue. “We didn’twant the ‘Sears


effect,’ ” Luc said, referring to supplierswho depend on one company for business. The Bramis becamemore aggressive marketers, attending restaurant association conventions and adding salesmen. Marriott came to the rescue


again, however,when a former employee there hired themto do the signage for his newemployer, Philadelphia-based concessionaireAramark. That gave the Bramis enough breathing roomto go out and market themselves. They landed contracts creatingmenu boards for restaurants such as Jerry’s Subs, ChickenOut, Ledo Pizza, Chesapeake Bagel Bakery. The firmgrewslowly over the


next decade. But by the early 2000s,Gelberg realized itwas getting only a tiny fraction of the work on large private and government office buildings in theWashington area. They borrowed $500,000


through the Small Business Administration, hired several managers and started focusing more on business development. They pushedmarketing, contactedmore politicians and developed strategic partnerships with nonprofits and publicworks programs. Thanks in part to a program


that promotesD.C. companies in construction projects,Gelberg went on a tear. Itwon a series of contracts, including a $1.7million, two-year deal to providemost of the signage for Nationals Park. They started getting contracts forD.C. Public Schools. Theywon the Children’s NationalMedical Center contract. They did a big chunk of the signage around the redevelopment of Columbia Heights. Their share of business in the


District, both public and private, has gone from1 percent of Gelberg revenue to 30 percent. The Bramis nowhave their eye


on capturing the signage for the billions of dollarsworth of construction projects that are expected to be completed inD.C. over the next decade. Between 1 and 2 percent of a building’s project cost is spent on signage, whichwould come to about a quarter of a billion dollars. The Bramis are positioning


themselves for big deals. They recently changed their name to theGelberg Cos. and added two newbusinesses: an “express” online store and a “green” division that retrofits buildings with energy-saving lights. The brothers think a


$5million infusion froman investment partner could launch theminto the big time, allowing themtoworkwith steel and aluminiumandmore complicated computer equipment. They’ve had some investment


inquiries after a highly publicized visit by President Obama this summer to promote jobs. But the brothers said they are probably just going to have to work their contacts in the business and politicalworld before they get tractionwith investors. “We’re three sons of


immigrantswho figured it out the hardway, through trial and error,” Luc said. “It’s just sweat and hardwork.” heatht@washpost.com


Followme on Twitter at addedvalueth.


person. I like themechanics of how things are built and put together. I love being inside stadiums and convention centers, looking at all the people checking in, the coordination of departments and all themoving parts to running a facility. I’mhaving conversations now


with people looking to book the Convention Center for 2018. It’s exciting to work on something and watch it become reality. Aftermy tour of duty in the


Navy, I traveled to countries such as Italy, Turkey and Egypt. I enrolled in college and selectedmarketing courses that I found really connected with my style. I felt likemarketing could never get old. I beganmy professional


career in the casinos of Atlantic City doingmarketing, promotions and VIP services. I tell anyone looking to have a


successful hospitality career to spend some time in a casino, because it’s all about customer service. Customer service leaders are the ones that are most successful. Casinos do such an excellent job with customer service that they actuallymake people feel good about losing theirmoney. I gotmy feet wet on the


convention side of the business as an intern doing a lot of grunt labor at the Atlantic City Convention and Visitors Authority. I spent three years moving through the sales ranks and going to smallmeetings with corporate customers. I saw that I was excelling in


the area of relationship-building and customer service, which is where I feel everything begins. To growmy career and get


different experience, I took a job in Atlanta working at Starwood Hotels and Resort.


COURTESY OF WASHINGTON.ORG Ronnie L. Burt Jr.


Position: Vice president of sales and services for Destination DC, a District-based private nonprofit membership organization that markets and manages conventions, tourism and special events in the city’s travel and tourism sector. Career highlights: Senior vice president of sales and services, Indianapolis Convention and Visitors Association; vice president of sales and services and interim president and chief executive, Baltimore Area Convention and Visitors Association. Age: 41 Education: BA, marketing; Richard Stockton College of New Jersey. Personal: Married, two children.


I wanted to advancemy


career evenmore, so I had to move again. Imoved to Baltimore to lead the sales effort at the Baltimore Area Convention and Visitors Association. I was eventually selected as the interimchief executive. That’s when it hitme that people really valuemy commitment and professionalism. If you look at the diversity of


what I do, it doesn’t get better than being here in the District. It’s the heartbeat of the world and a first-tier city. I felt like I upgradedmy product. — Interview with Vanessa Mizell


On Mondays, TheWashington Post offers Capital Business, a weekly publication covering the region’s business community. A one-year subscription costs $49 for Washington Post subscribers and $69 for Capital Business only.


Visitwashingtonpost.com/capitalbusiness for more details.


A17


You, too,could have home delivery. SF


1-800-753-POST


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52  |  Page 53  |  Page 54  |  Page 55  |  Page 56  |  Page 57  |  Page 58  |  Page 59  |  Page 60