Wednesday, December 31, 2008

The Early Men from Missouri

By John M. Olney, December 31, 2008
Copyright and all rights reserved, Wine Country Marketing and Promotions,
1325 Imola West, #409, Napa, CA Phone: 707-299-9548
Web site:
http://www.twccwcmp.blogspot.com/ E-mail: thewinecntryclb2@aol.com


What makes Napa - the city - so great today is its position as a fulcrum between its valuable ties to the wine industry of our county and the San Francisco business environment and its connections north, south, east and west, around the world. This importance was also prevalent before Napa County became known as “Wine Country.”

So, who would you think is the first most famous personality to not only visit Napa but also figure so significantly in its earliest history and notoriety? Although very tempting, you should step outside the box by not limiting your thinking process to the first Caucasian settlers like George C. Yount. Our mystery celebrity preceded Yount!

Nope! You should not be focusing on the American Indian Natives or even the Spaniard or Mexican rulers of the Alta California lands, although they played a significant role in establishing the fame of our mystery celebrity.

Don’t even look to our wine industry! He was here way before the knowledge that Napa County could possibly produce wines on a par with the great and old European family establishments who have been producing classic wines for centuries.

I’ll give you another little hint: The year was 1829 making him only 20 years old when this Missourian first visited the Napa area.

Still don’t have it? Okay, here’s another hint: He was close friends with the family of former Governor of Missouri, Lilburn Boggs who later became a permanent resident of the city of Napa. Interestingly enough, while then Missouri’s governor, Boggs was the man who ordered the Mormons out of Missouri because of their different way of life and the conflicts of that lifestyle with the mainstream of the times.

The then leader of the Mormons, Joseph Smith, because of the Governor’s expulsion orders, “prophesied“ that the Governor would die from an act of violence within about a year’s time. Smith reportedly proceeded to hire a man known as Orin Porter Rockwell to “accomplish” his prophecy. Although the attacker of Boggs failed in his attempt, he did cause serious long term physical harm to the ex-Governor.

Another Mormon of the times was Sam Brannan, creator of Calistoga, the northern most town in Napa County, and a leader ,who in 1846, brought a group of 240 of the expelled Mormons to San Francisco by ship via the Cape. Brannan was once considered the heir-apparent to Joseph Smith’s leadership of the Mormon faith. But, we’ll discuss Sam later.

Don’t have it yet? A final hint: The mystery man’s family was long term friends of the family of ex-Missourian Governor Lilburn Boggs. Boggs was married to the granddaughter of the famous frontiersman, Daniel Boone who was then residing in Missouri. The family of our mystery celebrity had purchased land from the Daniel Boone family and it is where he was raised. The families of the Boone’s, Boggs' and our mystery celebrity were all friends and entwined.

Although many historians write glowing remarks about this mystery celebrity, they fail to report on the international political environment at that point in time and how the politics of the period influenced subsequent actions, including those of our mystery celebrity. Let me give you just the major highlights:

The Indian tribes were indigenous but were being “manipulated” by first the Mexicans, then the Spaniards, then back to the Mexicans, but the Indians were basically ”in control” of their daily life.

The Mexicans had kicked out the Spaniards but were stretched thin and vulnerable to outside powers conquering their western land holdings, including Alta California. They had much internal strife which weakened their resolve to hold on to these north western lands. In attempt to control access to their lands, the Mexican government required all foreign visitors to the area to seek and be issued a “Passport” to enter and remain in the Alta California. Two Caucasians were given the power to issue these passports and they were John Sutter (located near Sacramento) and John Marsh (near Mt. Diablo).

The British were sailing off the Pacific shore with great interest in the western land and its bountiful natural resources while the French were busy in the Louisiana Territory. And, both were in dispute with each other.

The Russians, because of their growing financial difficulties, were actually dis-interested in the western states except for the food items that could be grown to be provided to the employees and their families of the Russian American Company and its lucrative fur/skin industry in Alaska.

Washington D.C. was developing its “Manifest Destiny” philosophy where it believed it was right for the Americans to control the land from the Atlantic to the Pacific Ocean. The Americans, hearing and reading all the stories about the abundance of resources out west and the assurances of the great American “Destiny,” packed up, and in mass wagon trains, penetrated into the American Indian and Mexican lands. There is no doubt that these wagon trains would cause the American Indians and Mexicans to use force to cease the invasion of these foreigners, the Americans.
Our mystery celebrity met, in Missouri, one Lieutenant John C. Fremont in 1842 and was hired by him to guide his Washington D.C. sponsored “survey party” into the west several times. During these illegal excursions into Alta California, and I say “illegal,“ because the survey party did not request nor did they obtain passports to be in the area as required by the Mexican Government who clearly and undisputedly controlled the area at the time.

Our celebrity figure was often the subject of Lieutenant Fremont’s reports back to Washington D.C. and he mentioned the feats of the mystery celebrity in such glowing terms that one might think the Lieutenant was the Publicist for our mystery celebrity. These stories were often blown out of proportion creating a false sense of the “good deeds” of our mystery celebrity.

However, review of the works of many historians show that our mystery celebrity was merciless in not only chasing and corralling the indigenous Indians but also in frequently massacring them; man, woman and child. Remember, during this timeframe, the Indian was indigenous to the area, i.e., owned the land, but could not stop the Mexican government from controlling its use and access. Thus, the true invader was the American Government via the Fremont Survey Party and other such transgressions into Alta California and not the American Indian or the “Californios” as resident Mexicans were called in Alta California. Separating fact from fiction and fable about this frontiersman is probably a lifelong single mission for a historical writer.

On one occasion, in 1843, our mystery celebrity guided the Lieutenant’s survey party into the Napa/Sonoma area. The Mexican government heard about this illegal entry and sought out the Lieutenant to find out what his intentions were in Alta California. The Lieutenant explained that he was “just surveying the area.” The Mexican government ordered his party out of the area and Fremont promised he would go to Oregon and other lands out of the Mexican jurisdiction. But, Fremont doubled back out of sight of the Mexican authorities.

This was about the time of the start up of the “Bear Flag Revolt of 1846’ which was the first, but ill-fated attempt, to take Alta California from the Mexican land holdings. Fremont and our mystery celebrity knew that Mexican messengers were on their way to the Napa area with some sort of secret instructions. Our mystery celebrity asked the Lieutenant what to do about “prisoners of war” and received the response from the Lieutenant that there were no provisions for prisoners. So what did our mystery celebrity do? He assassinated three very prominent Mexican citizens - two Haro brothers and a Berryessa - as they landed at a dock along the shores of what is now San Quetin Prison.  (Originally I had reference a Napa River which I subseqently found was erroneous information)   Within a few days American forces arrived, disbanded the “Revolter’s” and claimed California as part of the U.S.A. This was just one event of the U.S - Mexican War of 1846-48 which the Americans won and California, along with some other states, became the property of the U.S.

Many historians write about the exploits of our mystery celebrity in very glowing terms but in actuality, he was a dangerous man who would do what ever was necessary to expeditiously accomplish the task at hand. Historians write about his care for the American Indian which they claimed is proved by his marriages to Indian women, his knowledge of their languages and seeking roles in the administration of Indian affairs. This writer does not yet accept this interpretation. It should be noted that our mystery celebrity and the Fremont party were the invaders of foreign owned land and its residents had the right to protect their homeland; not the opposite as so many writers jump to conclude.

I would like to see a psychologist interpretation of the events surrounding the actions of our mystery celebrity. Why? Because our celebrity gained such undocumented and unsupported notoriety as to his alleged “noble and heroic feats,” he was thus held in the very highest esteem in government circles in Washington D.C. who didn‘t understand, or didn‘t want to delve into the real facts, because of the mood swing to the “Manifest Destiny“ concept of why American could justify its expansionism tactics.

Our mystery celebrity frequently was in need of financial support and because he knew the area, and indeed many of the Indian languages, the government gave him jobs in administering Indian affairs based on his credentials as established by others who had their own missions. In his earlier escapades in the western area he is known to have chased out and murdered Indians from California to the Washington border. In his later life, our mystery celebrity very ably and forcibly marched Indian tribes from the natural lands to isolated and desolated new homelands under Washington D.C. orders.

A hero not, in my opinion, but a well known celebrity he was! He was uneducated and thus easily fit the subtle needs of the Washingtonians who were bent on expansion to the Pacific Ocean. He was the one and only Kit Carson!

Tuesday, December 09, 2008

COPIA/GARRY MCGUIRE PROBLEMS AHEAD

A CHRONOLOGY OF

HODGE PODGE ATTEMPTS TO STAY AFLOAT
'
By John Olney
December 9, 2008. Copyright, all rights and privileges reserved
Wine Country Marketing & Promotions, 1325 Imola West, #409, Napa, CA 94559
Web site: http://www.twccwcmp.blogspot.com/ E-mail: thewinecntryclb2@aol.com


I have been asked why I have written what I have so far about COPIA, and in particular, why I have focused so heavily on Mr. Garry McGuire. It is even said that I have a vendetta against the man! Nothing could be further from the truth.

I have been evaluating the performance of COPIA since back in July of this year with the thought of how the complex and land could be better utilized than under its current “model,“ as Mr. McGuire likes to describe what he is attempting to accomplish. I have some concepts for the use of the complex and grounds that I will reveal at a later date. But, listed below is what I base my observations and conclusions upon,
I have visited the site eight separate times during different days of the week and at different hours of the day.

I photographed seven of my visits so I can provide physical evidence of what I comment about concerning the attractiveness of COPIA and its appeal to the public.

I have read every article published in all the Bay Area newspapers and compared the quoted comments made by Mr. McGuire and other COPIA officials
My professional background includes extensive use of operations analysis techniques while working on both contracted military and civilian programs and projects.

Based on my findings to date, I am able to say he is the wrong person for the job of heading up COPIA and what it was intended to be. He is even more inappropriate as its leader to attempted to work COPIA out of its financial disaster through its Chapter 11 bankruptcy reorganization.

Why do I say these things? Because Mr. McGuire, instead of solving the problem of the existing COPIA, prefers moving COPIA concepts to distant cities and convert these “satellite franchises” into for-profit ventures.
What I fail to understand is where is IRS/GAO and their making a determination about the legitimacy of the COPIA non-profit status while it spends alleged tax exempt money to establish for-profit COPIA satellite “franchises?” They did such a review previously, but before Mr. McGuire’s announcement of the grandiose “franchise” COPIA concept which was first reported upon by back on July 20. 2008, by Andrew McIntosh of the Sacramento Bee. He provided the information about the IRS fine that was leveled against COPIA for operating like a for-profit company.

The July 25, 2008 Napa Valley Register article, "Copia: We are integral to Napa - Leaders cite ambitious plan for financial stability" by David Ryan, NV Register City Editor, quotes Mr. Garry McGuire written statement that says: " ... In the past four months we've made significant progress in moving toward our goal of becoming the leading consumer wine and food destination, both on our campus and online." (Highlighting by John Olney) Now, here is the subsequent chronology of announcements.

Just over three months later, on October 1, 2008, COPIA/Mr. McGuire announced that it was cutting back its operating schedule to weekends only and would be closed Monday through Thursday. Furthermore, COPIA would only keep open the retail store, Julia’s Kitchen and the garden.
Mr. Franson, in his October 16, Wines & Vines article, "Copia Struggles for Relevance," writes that: "McGuire said he wants to keep the restaurant, upcoming wine bar and store, but he welcomes complementary tenants. He's talked to nonprofit groups that are potential tenants, such as the Napa Valley Museum, but they have their own financial problems. “

I fail to understand how such a “free rent" offer would benefit the COPIA bottom-line, the bondholder's investment and the bond insurer's possible liability. And, what guarantee would COPIA have been able to provide a non-profit if they gave up their current location and moved into COPIA that they won't be evicted should COPIA go bankrupt and the bondholders seize the property? The non-profit, free rent tenants would have to scramble to find another location.


About a month later, a November 11, 2008, article in Wines & Vines, titled, “Nonprofit to downsize Napa operation and open San Francisco site,” by Paul Franson said “The headquarters of the nonprofit Copia Foundation -- and, so far at least, Julia's Kitchen restaurant and the expanded Cornucopia gift store -- will stay in Napa, if not necessarily in the existing building. McGuire says Copia Napa will also have a large wine bar, but arrangements for such a site seem to be on hold until plans are settled.”(Highlighting by John Olney)

These all seem to be for-profit types of business activities not those normally associated to non-profit organizations.


An article titled “Copia looks to sell, but stay,” dated, November 13, 2008, by Jennifer Huffman and Kevin Courtney of the Napa Valley Register, contained the comment from Mr. McGuire: “We are committed to Copia’s home base and headquarters remaining in Napa,” wrote McGuire. “The core business of Copia is healthy and growing.” However, Copia’s $78 million bond debt “is not sustainable,” he rote. “The best solution is to move Copia to a facility that is not encumbered by so much debt,” and get the highest price for the property itself, he wrote. (Highlighting by John Olney)

If COPIA was so healthy why did they have over 380 vendors on their creditors List?

The article, “No comment from Napa food and wine center’s CEO on fate of Wine Country site,” by Diane Peterson of the Santa Rosa Press Democrat, dated November 13, 2008, reported that Mr. McGuire said, “Our intent is to always operate a Napa Valley campus as well as expand to San Francisco,” McGuire said in his e-mail.

An article by Steve Hart in the Santa Rosa Press Democrat, “Cashless Copia closes - for now. Food, wine center in Napa has been losing about $4 million a year since 2001,” dated November 25, 2008 says a lot. “In September, Copia said it would adopt a new business model, using its food and wine experts to produce cookbooks, recipes, exhibits and courses to be taught on site, on TV and online…..‘The core business is shifting away from a museum and a discovery center and toward producing original content and distribution of food and wine knowledge,’ said McGuire. ‘It's a completely new business model, but part of itstays the same‘…..Copia also planned to open a 40,000- to 50,000-square-foot satellite campus in San Francisco that would include a TV studio, wine classes, wine bar and retail store….‘There are 16 million tourists a year who come through San Francisco,’ McGuire said in September…. ‘We're hoping we can reach them in San Francisco and share some of the food and wine education with them.’…..‘Copia also planned to get into the tourism business, providing Wine Country educational tours from the city,’ he said.” (Highlighting by John Olney)

I wonder if Mr. McGuire has conducted a market assessment/feasibility stury to make sure he doesn't get the same results that Napa COPIA has
experienced?

In the British wine magazine, Decanter, in an article titled “Copia 'will re-open 1 December,” dated November 24, 2008, written by Adam Lechmere, it was reported that Mr. McGuire said, “Lastly he stressed, 'We are committed to Copia's home base and headquarters remaining in Napa.' “

An Online Staff article for the Napa Valley Register titled “Copia closes through Thanksgiving, maybe longer, ” of November 24, 2008, says “Any long term plans and any potential reopening date announcement is not going to come until after the Thanksgiving holiday, according to Copia's public relations group. "

"Copia, a Food and Wine Center, Files for Bankruptcy'" article by Julia Moskin and Kim everson, New York Times dated December 2, 2008, said “Recently, Copia has tried to act more like a community center, showing classic movies, offering gingerbread-house-making workshops, and planning a hot-chocolate party at the end of the Napa Holiday Parade last Saturday."



Clearly, all of these proposed concepts and programs look like a hodge podge to me. I do not see the intent of the orginal COPIA concept and certainly the concepts do not sound like “education.” Rather they sound like profit and return on investment to owners/shareholders.

COPIA is non profit business by which funds were generated to create a center for the education of the public about the values of wine, food and the arts. It derived it’s funding through tax deductible donations and investments. The principal reason for such funding resources is because the underlying premises of the COPIA objectives and missions were not being accomplished by private enterprise. And why is this so? Because the investors in for-profit ventures could not envision COPIA returning them an interesting profit, e.g., return on their investment in the normal time cycle they desire. But investing in a non-profit company that offered them a tax deduction against profits earned elsewhere while also having the “guarantee” that they would receive their principal amount of investment back over a long period, plus earn respectable interest, was obviously attractive.

In a Decmber 3, 2008, Napa Valley Register Editorial it is stated what Mr. McGuire’s intentions are, and very well at that, and I quote, “McGuire has tried to drive the center towards a Web-based, food-and-wine education model that he believes has a chance of success, but is riding into a strong economic headwind. “

Computer tech is the background of Mr. McGuire, but I do not see how that background for a non-profit Napa COPIA to succeed in wine and food education when only housed in a retail store, restaurant and wine bar. Why?

Take wine for example: Non-profit Napa COPIA must buy all its wine products wholesale and offer them retail against well entrenched competition of the 5000 plus wineries of the USA, the strongest wine merchant on the Internet -Wine.com - and all the other retailers such as Wal Mart, BEVMO, Safeway, Longs, etc.

Similarly, any for-profit satellite COPIA operation located elsewhere wishing to focusing on food and wine educational DVD‘s, on-site retail wine sales and Internet sales, restaurants, and chases after establishing tourism from San Francisco to Napa and Sonoma also faces extremely well entrenched competition already located in San Francisco, Sonoma and Napa.

More importantly, I do not believe that what Mr. McGuire envisions as “franchise-able” really is franchise-able! Without using the name COPIA, one could do all that Mr. McGuire purports to be “franchise-able” without buying a “license’ through the non-profit Napa COPIA.
  1. One can get and buy wine wholesale from the wineries
  2. One can open a tasting bar and sell wine retail
  3. One can establish an Internet Web site to sell retail wines
  4. One can make DVD’s on wine tasting, food recipes and wine/food parings
  5. One can conduct wine country tours

And, each of the above must be done after securing appropriate city, county, and/or state licensing all of which must be done separate from a COPIA “franchise license.”

Normally, when a group wishes to buy a “franchise license” of a on-going business, that business is a proven success. COPIA is a far cry from such a business! I reiterate, Mr. McGuire is not the person who should be left to try to “reorganize COPIA.”

Monday, December 08, 2008

COPIA LOST DONATIONS AND BOARD MEMBERS?

By John Olney
December 8, 2008. Copyright, all rights and privileges reserved
Wine Country Marketing & Promotions, 1325 Imola West, #409, Napa, CA 94559
Web site: http://www.twccwcmp.blogspot.com/ E-mail: thewinecntryclb2@aol.com


In his Napa Valley Register article of December 05, 2008, “Insurer: Copia's move to Chapter 11 a 'sham' - Copia leaders say ACA to blame in last-minute efforts to sell Napa property,” Napa Valley Register City Editor, David Ryan, reports, “In a separate court filing, McGuire said Copia has been hemorrhaging in excess of $5 million each year, relying exclusively on donations from board members and winery partners to pay its debts.” Ryan goes on to report, “…McGuire said in court documents. “Further, we believe that the organization is no longer able to raise money from trustees and philanthropists to service bond debt.”

These statement speak volumes about the Chapter 11 bankruptcy reorganization possibilities that Mr. McGuire believes he can accomplish. Andrew McIntosh of the Sacramento Bee, said in his December 2, 2008, article, ”Napa wine center files for bankruptcy protection, McGuire said Copia has secured a $2 million line of credit that will allow the center to pay employees and suppliers. …. The decision to restructure the business through a Chapter 11 filing should provide us with the opportunity to strengthen our balance sheet, create a more efficient expense structure and ultimately position our public-benefit corporation to compete more effectively," McGuire said. …. In his statement, McGuire estimated he'll need six months to restructure Copia so it can "achieve profitability and long-term sustainability." He said the center will reopen but did not say when, and no additional information was available on Copia's Web site. “

If Mr. McGuire is so sure about his position, then why are the board members terminating their donations and resigning from the COPIA board? Could it be that they suspect law suits against their actions by the bond insurer and the some 380 plus other creditors that COPIA owes?

Based on my findings to date, I am able to say he is the wrong person for the job of heading up COPIA and what it was intended to be. He is even more inappropriate as its leader to attempt to work COPIA out of its financial disaster through its Chapter 11 bankruptcy reorganization.

The Napa Valley Register article, “The big breakdown - Copia, seeking bankruptcy protection, owes about 385 vendor; 76 in Napa Valley - Copia's creditors: The list of everyone owed money,” December 03, 2008, by Jennifer Huffman, Register Business Writer says, “The bankruptcy filing lists the names of all so-called unsecured creditors to which Copia owes money, and it shows dollar amounts for the 20 creditors owed the most. Winston & Strawn, a law firm with offices in San Francisco, tops the list. Copia owes the firm $250,000.….The non-profit center owes various PR and marketing firms more than $150,000, PG&E $28,364 and Express Personnel $14,810.….Famed San Francisco event planner Stanlee R. Gatti is due $52,974. ….A number of newspapers are listed in the court documents, presumably because Copia is behind in paying its advertising bills. The newspapers include the Santa Rosa Press-Democrat, the Vallejo Times Herald and the Sacramento Bee. Copia owes the San Francisco Chronicle $16,261. (The Napa Valley Register is also listed as a creditor, though documents filed so far do not list a dollar figure.)….Napa-based Liquid Trade Solutions, Inc., a financial firm focused on the wine industry, is due $58,623. ….The second largest local creditor is Classic Party Rental of Napa. Copia reportedly owes the firm $19,631.….Copia also filed special motions for the reorganization, including a plea to pay $187,000 in back payroll and other benefits the center owes employees….”

An article titled “Copia looks to sell, but stay,” dated, November 13, 2008, by Jennifer Huffman and Kevin Courtney of the Napa Valley Register, contained the comment from Mr. McGuire: “We are committed to Copia’s home base and headquarters remaining in Napa,” wrote McGuire. “The core business of Copia is healthy and growing.” However, Copia’s $78 million bond debt “is not sustainable,” he wrote. “The best solution is to move Copia to a facility that is not encumbered by so much debt, and get the highest price for the property itself, he wrote." (Highlighting by John Olney)

It very difficult for this writer to accept Mr. McGuire’s claim that COPIA would
be otherwise healthy if they were not encumbered by the bond principal and
interest while at the same time they list over 380 vendors as creditors to their
bankruptcy proceedings! Mr. McGuire is not the effective CEO to oversee the
reorganization
.
SACBEE writer Andrew McIntosh also wrote an interesting article dated December 5, 2008, titled, “Copia's woes may waste $1 million state grant,” where reports “Copia, the insolvent Napa-based nonprofit, received a $1 million state parks grant from the administration of former Gov. Gray Davis – and taxpayers could lose that money if the wine center sells its property in bankruptcy court…..Copia's potential troubles with the grant stem from a requirement that projects funded by the money stay open to the public for a minimum of 20 years….But even before it filed for Chapter 11, Copia wanted to sell its south garden property and use the $10 million it hoped to get to reduce debt, documents show…..Parks department officials told Copia, however, that if it sold the land and did not relocate state-funded items to public access areas, it would have to refund at least part of the grant, letters show…..Copia said it would relocate the children's garden and planned to refund money for the dais after the land sale….The parks department, though, is not listed as a Copia creditor in the bankruptcy filing. A Copia spokeswoman declined to comment on how Monday's filing affects its pledge to relocate the garden and pay back the money……"

By my e-mail of December 2, 2008, I asked Mr. McGuire to provide me with the sum of money that was raised at the COPIA September 20, 2008, Baron’s Ball in San Francisco and how much of that money remained at the time of the Chapter 11 filing. He has not yet responded to my request. The COPIA Baron’s Ball Web site says, “Proceeds will benefit COPIA’s children’s education programs and environmental and sustainability programs.” Hmmmm? Seems like this fund raiser money and the Parks grant money are doomed!

I reiterate, COPIA needs to look for another CEO to attempt to work it through the reorganization hopes!

Tuesday, December 02, 2008

Wine Baron's Ball Donation total Raised

Subj: Wine Baron's Ball Donation total Raised
12/2/2008 1:27:06 P.M. Pacific Standard Time

"mailto:Thewinecntryclb2""mailto:Thewinecntryclb2
mailto:amcintosh@sacbee.com", "mailto:dryan@napanews.com", "mailto:mtreleven@napanews.com", "mailto:jbonne@sfchronicle.com", "mailto:diane.peterson@pressdemocrat.com", "mailto:paul@napalife.com", "mailto:info@copia.org", "mailto:editor@decanter.com"

ATTN: COPIA Please pass to Mr. McGuire
ATTN: Decanter Please pass to Mr, Lechmere

To:
Garry McGuire-COPIA,
Info:
Jon Bonne- San Francisco Chronicle,
Andrew McIntosh-Sacramento Bee,
David Ryan, Jennifer Huffinan, Mike Treleven, Kevin Courtney - Napa Valley Register,
Diane Peterson-Santa Rosa Press Democrat,
Paul Franson-Wines & Vines/Napa Life
Adam Lechmere, Decanter

Mr. McGuire:

I have searched the COPIA Web site and the Internet looking for the total sum of money raised at the recent "The Wine Baron’s Ball September 20, 2008" which it is stated that the “Proceeds will benefit COPIA’s children’s education programs and environmental and sustainability programs.”

I have yet to see a total reported. Could you please provide me the total received and the remaining balance as of the COPIA filing for bankruptcy?
Thank you in advance,

Very respectfully,
John olney

COPIA Truth in Finances

COPIA’s CEO Garry McGuire is a very interesting study in contrasting statements to different media sources. Here are just a few examples as they relate to COPIA’s bottom line.


July 20, 2008: Sacramento BEE (SB)- “After his appointment, McGuire told the Napa Valley Register that Copia had broken even for the first time in 2007. Yet a review of its financial statements indicates large losses and negative cash flows for that year.

Asked to reconcile the two, McGuire told the Bee that he meant to say that Copia ‘almost’ broke even if you match operating revenues against expenses, numbers that exclude its debt service costs and its bond payments.

November 24, 2008: decanter.com, (A British magazine and online wine industry information source) - Copia is US$78m in debt – but that debt is tied to the property itself: 'Independent of the buildings, Copia is a healthy business,' McGuire said.

December 1, 2008: Santa Rosa Press Democrat - The source of Copia’s new financing wasn’t disclosed and center officials couldn’t be reached for further comment Monday.

The center’s largest creditor is Winston & Strawn, a San Francisco law firm that handles corporate finance issues. Copia also owes money to a brand marketing consultant, public relations firm, a restaurant group, newspapers, magazines and more than 100 other vendors.

December 2, 2008: SB - McGuire said Copia has secured a $2 million line of credit that will allow the center to pay employees and suppliers.
I fail to understand how on July 20, 2008, COPIA can break even on operating expenses versus patron donations & sales revenues, yet just over four months later, Mr. McGuire announces the acquisition of a $2 million line of credit (LOC) by which to pay over 100 bills (Dec 1 article above) and employee wages & salaries. But, don’t forget, the LOC must also be paid back.

He says in the November 24 article above, that “,,,Independent of the buildings ,Copia is a healthy business.” If it’s healthy then why a LOC to pay vendors for operating costs and good to be sold? If it's "healthy, "why move to San Francisco?

How does Mr. McGuire expect to run at a deficit already without paying on a mortgage yet think that a new landlord will be willing to have him as a renter?

How the heck will he raise new investor capital and sales revenues, not borrowed money, to pay vendors , employee wages and rent to the landlord if he’s closed four out of seven days a week?

Monday, December 01, 2008

December 1, 2008, COPIA FILES FOR BANKRUPTCY

Like I predicted in my article of November 28, 2008, “Copia: Confusion & Dreaming,” late today (Dec. 1), about 4 pm Calif. time, COPIA announced that it was filing for bankruptcy.

I'll have more possibly Tuesday.

From John Olney

Saturday, November 29, 2008

COPIA CONFUSION & DREAMING

By John M. Olney, November 28, 2008
Copyright, all rights and privileges reserved
Wine Country Marketing & Promotions, 1325 Imola West, #409, Napa, CA 94559
Web site: http://www.twccwcmp.blogspot.com/ E-mail:
thewinecntryclb2@aol.com


Just about the same time I placed Part 1 of my analysis and assessment of the COPIA operations on my blob site, ("COPIA Continues to Defy Definition," November 24, 2008,) the Internet started listing the sudden and unannounced closure of the building complex last Friday afternoon (Nov. 21) leaving both patrons and signed performers in a quandary. COPIA officials just left a message on the door indicating to arriving patrons to access the COPIA Web site for more information but the site had no information concerning the reasons for the surprising closure.

But, this isn’t the first incident of poor PR by the senior executives of COPIA. They did the same thing back on September 27 when they announced the new winter hours and that they would be closing the door on October 1 except for open days of Friday, Saturday and Sunday. But the open doors would only be for the restaurant and gift shop. The wine dispensing machines, and the exhibits where not accessible. The senior COPIA executives did the same thing in September as they just did last week; they just left a sign, October 1, on the door saying they were sorry for any inconvenience but they were now closed except weekends.

Imagine, people who do not have access to the local media resources of the Bay Area and are planning their trip from Florida, North Dakota, France, Italy, Australia, etc. and incorporated a visit to COPIA because of what they had heard it was suppose to represent, drive up after their distant travels, to find a “I am sorry” sign!

These are certainly cases of the worst Public Relations handling any business entity could make which is working to raise donation and investor capital while trying to increase patronage (both local and tourist) to its programs and events.
Apparently COPIA uses a Los Angeles based publicist as its spokesperson; at least that is what a couple of news articles have cited for comments about what is happening at COPIA. Why is COPIA going all the way to SOCAL? There isn‘t an acceptable publicist in the local area who could be right on top of the pulse of COPIA?

In an Associated Press article, November 25, 2008, titled, “Mondavi food and wine museum shuts doors in Napa, AP said, “Copia chief executive Garry McGuire blamed the current credit crisis for the closure announced Monday.” How convenient the current economic slump is for Mr. McGuire! He doesn’t have to explain the operating losses incurred under his management - about $1.2 million per month, give or take- nor that of the previous two CEO’s. Nor does he have to explain the fact that COPIA has not made a payment on the outstanding principal bond amount of about $80 million, the first increment of which was gained back in 2001! Below is just one recent example of the apparent confusion, or possibly dreaming, at the senior executive level of COPIA and it relates to the possible sale of the grounds and building:

In a Napa Valley Register article dated November 11, 2008:
The new CEO offered a rare, "No comment," when asked if he had a buyer. Among the possible buyers is the city of Napa, which could use the site for a civic center, but financing it would be challenging.

In a Napa Valley Register article dated November 23, 2008
Last week, McGuire said the Copia property is for sale. He and Copia board member Joe Fisher said they hope to find a buyer who will allow
the center to stay on the site.

A Sacramento Bee article dated November 24, 2008 said:
Sharon Boorstin, a Los Angeles-based publicist for Copia, said the Restructuring under consideration involves plans by COPIA to sell its sprawling -Napa-based complex and use of the proceeds to pay down its debt. "It's the whole Turnaround thing," she said in an interview.

A Wines & Vines article on November 24, 2008 indicated the following:
“In an e-mail received Saturday night [Nov. 22] at 9:13 p.m., CEO mcGuire said, ‘We are about 24 hours away from signing a deal to sell the campus. I cannot comment tonight, but will call you [W&V writer Paul Franson] as soon as the deal is signed.’ He had not commented by early Monday afternoon.” [Nov, 24]

decanter.com, a British wine magazine and Web site, said on November 24, 2008,
“Copia, the troubled wine, food and arts centre in Napa, should re-open on 1 December, its chief executive said. “

However, a Santa Rosa Press Democrat article dated November 25, 2008 said,
“It's unclear when the $78 million facility will reopen. Copia will Release more information about its future after the Thanksgiving holiday, said sharon Boorstin, a Los Angeles public relations executive who represents the center.”

On Friday a developer friend of mine received a voice mail reply from COPIA’s CFO that indicated if my friend could come up with a $30 million check in the next 72 hours the 12 acre complex would be his to own and operate. This voice message certainly suggests that Napa City and the Ritz Carlton are not potential buyers after all. In fact, a Saturday, November 29, 2008 article by Jennifer Huffman, Register Business Writer, relating to the announcement of a nearby property being up for sale, concludes with the statement, “The Ritz-Carlton project is currently under design and looking for financing.” Incidentally, this latter statement confirms my remark in my Part One analysis and assessment, that the Ritz Carlton partnership was having financial problems.

There can be no doubt that bankruptcy is eminent for COPIA and all that its senior executives can attempt to do is put a favorable spin on a dying concept and complex. I caution, “Buyer beware!”

Monday, November 24, 2008

COPIA Continues to Defy Definition

amcintosh@sacbee.com
dryan@napanews.com
mtreleven@napanews.com
jbonne@sfchronicle.com
diane. peterson@pressdemocrat.com
paul@napalife.com
info@copia.org

ATTN: COPIA Please pass to Mr. McGuire

To:
Garry McGuire-COPIA,
Jon Bonne- San Francisco Chronicle,
Andrew McIntosh-Sacramento Bee,
David Ryan, Jennifer Huffinan, Mike Treleven, Kevin Courtney - Napa Valley Register, '
Diane Peterson-Santa Rosa Press Democrat,
Paul Franson-Wines & Vines/Napa Life

SUBJ: Summary Comments on COPIA

My name is John Olney and I am a wine writer via blogging. My phone is 707-299-9548 My site information is: http://www.twccwcmp.blogspot.com/ E-mail: thewinecntrvclb2@aol.com .

I have published my observations on our web site about COPIA as derived from my own research, visitations to the complex, and your published articles, quoted comments, etc. I have provided you a copy of Part One of my analysis & review so that you can examine what I quoted from your comments/work.

Please feel free to contact me with your complaints, observations, etc. I will be happy to discuss any possible erroneous statements or misquoted comments I might have made and work on correcting my article.

Best regards, John Olney


COPIA Continues
to Defy Definition
By John M. Olney, November 24, 2008
Copyright, all rights and privileges reserved
Wine Country Marketing & Promotions, 1325 Imola West, #409, Napa, CA 94559
Web site: http://www.twccwcmp.blogspot.com/ E-mail: mailto:thewinecntrvclb2.


COPIA, since its inception, has competed with the winegrowing industry of Napa County and all its associated tourism. A simple review of the list of serious donors to the concept of an American Center for Wine, Food and Art will reveal the absence of the backing of the winegrowing and tourism industry on the whole.

The Napa Valley Vintners Association, representing about half of the wineries of the county, does almost nothing to promote COPIA. The same is also true of the larger organizations of the Family Winemakers of California and The Wine Institute of California. There is no Wine Spectator or other media partner supporting and marketing COPIA. There is no Leslie Rudd contributing vast sums of money to develop dedicated programs that would draw attention to and interest in COPIA. Wine Enthusiast, Wines & Vines, Constellation, Foster’s, Gallo, Diageo, Sutter Home/Trinchero, Francis Ford Coppola/Rubicon, etc. have not stepped forward to “adopt” COPIA. For obvious reasons there is no requirement that any of these organizations should be held accountable for not pushing COPIA. They each have their own agenda to push in support of their respective members and programs.

There are no continuing art or museum endowments from which permanent and meaningful exhibits and displays can be produced to attract attendance.

There is no shining star to lead a team to produce a professional show.

This is Part One "A" of a two-part assessment of the past and future for the COPIA complex. Presented below is a review of COPIA's disappointing past based on my assessment. Part One "B" will be posted very shortlyPart two, in draft at this time, will suggest what the complex could become In the future.

Reference articles:
THE SACRAMENTO BEE - DATED JULY 20, 26 & 27, SEP. 8 & 28 Blog -NOV 12,. 24, 2008
NAPA VALLEY REGISTER- DATED JULY 25, SEP. 27, Nov. 13/14, & 16-editoriaI, 23, 24, 2008
SAN FRANCISCO CHRONICLE - DATED SEP. 26, 2008
SANTA ROSA PRESS DEMOCRAT - DATED SEP. 30, 2008
WINES & VINES - OCTOBER 16, 2008


"...our goal of becoming the leading consumer wine and food destination..."The July 25, 2008 Napa Valley Register article, "Copia: We are integral to Napa - Leaders cite ambitious plan for financial stability" by David Ryan, NV Register City Editor, quotes Mr. Garry McGuire written statement that says:
" ... In the past four months we've made significant progress in moving toward our goal of becoming the leading consumer wine and food destination, both on our campus and online."

If this is so, then why did COPIA cut back its operations on October 1, 2008 to weekends only while other Napa Valley operations (such as the Culinary Institute of America in St. Helena) are able to remain open all week long? And, then came word from COPIA that it was shutting down all operations effective December 31, 2008 But, no sooner did they say that then they closed their doors in a sudden and unannounced manner! This does not seem to correlate to the statement, "significant progress!" In fact, just the reverse occurred.

The COPIA "Model"

Mr. McGuire was quoted in the Press Democrat article dated September 30, 2008, as follows:

"The core business is shifting away from a museum and a discovery center and toward producing original content and distribution of food and wine knowledge," said Garry McGuire, president and CEO of Copia. "It's a completely new business model, but part of it stays the same."

I do not understand how it can be a "completely new business model" when Mr. McGuire goes on to say "but part of its stays the same." These are conflicting statements. It is either a "completely new model" or it's a "modified old model."

Mr. Franson, in his October 16, Wines & Vines article, "Copia Struggles for Relevance," says:

"McGuire wants to focus on content creation and delivery, and franchise the Copia concept out to profit-making groups like the Ritz Carlton project now going in across the river. He's already announced plans to open an expanded satellite in San Francisco next year-Copia already shares a space in San Francisco's Ghirardelli Square, where it gives classes and holds functions. "

From the same article we learn the following from Mr. McGuire:

"McGuire said he wants to keep the restaurant, upcoming wine bar and store, but he welcomes complementary tenants. He's talked to nonprofit groups that are potential tenants, such as the Napa Valley Museum, but they have their own financial problems."

In just over two months, we’re told two different stories about the definition and future of COPIA, I can’t help but wonder where all the donation money went from the recent Baron’s Ball at the St. Regis which is a benefit for Copia: to the bond holders or for the for-profit San Francisco COPIA “franchise?”

COPIA food preparation and wine pairing

These programs were competing with too many facilities that can offer more than COPIA has to offer. Listed below are some examples of the competition in just Northern California but there are many others throughout the state and the rest of the USA.

Culinary Institute of America, St. Helena: bachelor degree/certificates (see below for more)

California Culinary Academy - San Francisco: CertificateAssociate's,

International Culinary School at The Art Institute of California - multiple locations including San Francisco: Associate's, Bachelor's Culinary Arts, Culinary Mgmt, Wine, Spirits & Beverage Mgmt, Bachelor's, Culinary Arts, Culinary Management

Kitchen Academy - Sacramento: Diploma

Culinary Arts, Professional Baking & Pastry Institute of Technology -
Clovis, Modesto, Rosevllle: Diploma Baking & Pastry, Culinary Arts, Baking & Pastry Arts

In terms of food preparation, processing and presentation right here in Napa County, COPIA must compete with the ever popular up valley Culinary Institute of America (CIA) located in St. Helena which has entire programs funded and/or supported through the generous donations of Mr. Leslie Rudd. He is owner of six wineries distributed between Napa and Sonoma Counties, the Dean & Deluca and Oakville Grocery retail food and wine store chains and ‘The Press Restaurant.” Additionally, Wine Spectator magazine supports the CIA programs. CIA offers both on-site and online food programs in which students can actually earn a degree and/or certification that carries the full force of the reputation of the CIA programs. Additionally, CIA is home to the California Vintner's Hall of Fame and the CIA Wine Spectator restaurant.

Although Mr. McGuire uses the term "campus" to describe the food, wine and art activities of COPIA, I am unable to find a stated course curriculum at the COPIA itself or online which clearly leads to a recognized collegiate/trade school degree or certification.

But, there are yet more competing programs to what Mr. McGuire says he wants to implement and both were also started by funding of Robert Mondavi:

"The Great Chefs" program at Robert Mondavi winery in Oakville

The $25 million dollar donation from him to open the Robert Mondavi Institute for Wine & Food Science at UC Davis.

Where will COPIA - whether in San Francisco or any other city, or any of its potential"franchise," operations - ever find the market penetration budget to compete with the above well established schools and/or programs?

Wine Knowledge

Not once during my eight visits to COPIA was there a staff member discussing the 40 different wines available from the ten wine dispensing machines. There was no printed material available for all of the wines. The cost to use these machines varied from $1.00 to $4.75 for a taste and from $6 to $18 for a full glass. And interestingly, COPIA was at the same time offering free wine tasting just across the aisle from these machines. Just recently the only other downtown Napa tasting room (Stave Lounge) with such machines closed its operations down.

I have almost three years of experience in tasting room service and winery tours (Mumm, Silverado Vineyards and Andretti winery.) I did sit-down lunches and dinners with smaller groups (20 or less) to groups reaching as many as 50 plus. I talked about the vineyards, fermentation (including malolactic), riddling, bottling, aging in wood and racking, the wines themselves and the owners and winemakers. I made presentations on the history of Napa Valley and the winery at which I worked at the time. The wine tasters wanted that interchange with the tasting staff, learning about the wines, winemaker, owners, historical information and stories. The automatic dispensing machines are obviously impersonal and much is lost in the wine tasting experience without the knowledgeable winery staff educating the taster.

Almost all of the subject articles cited at the beginning of my comments mention Mr. McGuire's ambition to sell wine via the Internet. COPIA does not grow grapes and make wine; instead it must buy it as a reseller. I cannot help but wonder how he expects to compete with the likes of Wine.com, Amazon.com, BEVMO, Wal Mart, Safeway, Longs, JV's, the 5,000 plus wineries of the USA, and the list goes on and on. Where will Mr. McGuire derive sufficient money to establish merchandise inventory and implement a market penetration plan and advertising program? Is this really a “franchise-able" element of the "COPIA model?"

The "franchising" of COPIA
Mr. Franson, in his October 16, Wines & Vines article, "Copia Struggles for Relevance," says:


"McGuire wants to focus on content creation and delivery, and franchise the Copia concept out to profit-making groups like the Ritz Carlton project now going in across the river. He's already announced plans to open an expanded satellite in San Francisco next year-Copia already shares a space in San Francisco's Ghirardelli Square, where it gives classes and holds functions. "

First of all, the Ritz Carlton is NOT "now going in across the river;" instead it is a very long time away from reality. I became a close friend to a former senior member of the Ritz Carlton advance-planning group. They and companies like them conducted market analysis that included an examination of COPIA's public record, annual reports. Their people would have asked about the success or failure of COPIA. Thus, these companies would have seen that COPIA was not meeting visitor expectations, that it was losing substantial sums of money each year and that it was headed for failure and bankruptcy. More specific to the topic, there are financing problems among the Ritz Carlton investor group and even if those could be worked out in these tight economic times the hotel complex probably wouldn't open until at least three years from today.

A Sacramento Bee article of July 20, 2008 reported "Copia consultants had forecast paid attendance of between 467,900 and 522,400" for 2006. The Napa Valley Register article of Sep. 27, quotes Mr. McGuire as reporting that attendance went up to 150,000 in 2007 compared to "146,472 attendees" the SacBee article reported that COPIA saw for 2006.

I do not understand how Mr. McGuire knows that there were 150,000 COPIA attendees since there are neither turnstiles nor general admission ticket purchases to document the accuracy of his count? I can't help but wonder what he based his count upon? Furthermore, I wonder why there is such a large discrepancy between the consultant's estimates and actual attendance numbers reported for 2006. What did the consultant base their count on? I will be interested to find out the latter.

The Napa Register article of Sep. 27, 2008, points out that:

"Since it opened in 2001, Copia reportedly lost between $5 million to $15 million yearly. Copia's 2007 annual report. listed a deficit of $14 million." .

The public record, IRS Form 990 for non-profit companies for COPIA, shows a steady decrease in new membership fees and reoccurring membership "dues" representing an approximate 11% drop since 2004.
"Fiscal year...........................2004...................... 2005.......................2006
Membership........................$429,969............... $373,431..............$360,654"


These consistent annual operating losses and decreases in membership seem to speak to fading interest in COPIA programs. It will be interesting to view the 2007 and 2008 fees/dues number since COPIA terminated charging a general admission fee and thus "membership discounts" on admission fees ceased to exist.

Based on just these two economic factors, I find very fascinating that Mr. McGuire believes that there would be any interest by investors to buy a COPIA "franchise."1 just wonder if Mr. McGuire conducted a market assessment/feasibility study to determine the potential for a successful COPIA located in San Francisco or any other city. If he did not, then how does he conclude that the results would be different in any other city than it has been in Napa?

Decreasing COPIA Debt
Mr. Franson, in his October 16, Wines & Vines article, "Copia Struggles for Relevance," writes that:

"McGuire said he wants to keep the restaurant, upcoming wine bar and store, but he welcomes complementary tenants. He's talked to nonprofit groups that are potential tenants, such as the Napa Valley Museum, but they have their own financial problems."

First, I fail to understand how such a “free rent" offer would benefit the COPIA bottom-line, the bondholder's investment and the bond insurer's possible liability.

Second, who pays to turn on the $50,000 /month utilities again?

Third, what guarantee would COPIA have been able to provide a non-profit if they gave up their current location and moved into COPIA that they won't be evicted should COPIA go bankrupt and the bondholders seize the property? The non-profit, free rent tenants would have to scramble to find another location.

In an article by Jennifer Huffman, NV Register Business Writer, September 27, 2008, Mr. McGuire is quoted as follows:

“McGuire is considering all options. For example, Copia doesn't have to own its Napa location, said McGuire. "We have a tremendous amount of debt on the building, so if someone would take that on, we'd be willing to sell it," he said. "We'd love to rent back from them as a tenant." However, "I think it's unlikely that someone would be willing to pay $80 million for the building.

The $80 million dollar question is how can we unlock the potential of the building? That's why we are looking at another facility that is unencumbered by debt," said McGuire.

Rumors circulated that Copia would file for bankruptcy. Not true, said McGuire. "Filing for bankruptcy is not something that management or board has in our plans at this time," said McGuire.”

More recently in an October 16, 2008 article in Wines & Vines, Paul Franson commented as follows:

“For one thing, the building is clearly not worth $78 million, especially in today's troubled economy. McGuire is trying to eliminate Copia's debt one way or another. "I want to be debt-free by the end of the year, preferably without a bankruptcy, but all options are open, " he said.

One possibility is for the mortgage holders to reclaim the building and lease out part to Copia-and part to other tenants. Unfortunately, 40,000 square feet of the open space isn't very useful.”

Given the down turn in the economy I just don't see how the COPIA organization is going to find any investor(s) willing to purchase the site at this time even at bargain basement prices. If one was to approach the current bondholders I don't think it would be likely find a favorable audience. They already have a huge investment with no return on that investment to date. Why would they be interested in sinking more money into the complex, which as Mr. McGuire says isn't "worth $80 million?" Should COPIA go bankrupt then the bondholders will likely inherit the building and land anyway.

The bondholders already know that COPIA has been a failure, so why would they want them as a tenant? Could Mr.McGuire's planned activities, which he purports to be "franchise-able," actually derive sufficient income to pay the rent that any new owner would have to charge per square foot for such a large, high value building/land complex? By the way, an extensive remodeling budget would be required to make it habitable to other business types.

The alleged importance of COPIA to the new developments around downtown Napa:
The NV Register article, "Copia: We are integral to Napa - Leaders cite ambitious plan for financial stability" by David Ryan, NV Register City Editor, quotes Mr. Garry McGuire, COPIA's CEO:

"If you look at the mission of (I-bank) it's to help facilitate lending that creates economic development and prosperity," McGuire said. "Clearly if you follow that line of thinking, Copia ... has helped in very significant ways with economic development, jobs, hotels and the prosperity of Napa....

1f I-Bank had not helped facilitate loans for Copia, none of that would have happened."

The concept that the Oxbow Public Market, Westin Verasa, The Riverfront, Napa River Terrace, Ritz Carlton and others came to Napa to be in close proximity to COPIA is a huge overstatement. These companies came because the 500 plus wineries draw visitors/tourists who want quality wine tasting, dining, lodging, entertainment and shopping. None of these facilities, including COPIA itself, could have been built north of Napa in the corridor to Calistoga due to the Agriculture Preservation zoning restrictions. That leaves American Canyon and Napa as the only realistic locations for such new facilities.

Although American Canyon was growing rapidly before the sub-prime loan meltdown and home foreclosures, it offers no surrounding amenities such as fine restaurants, lounges and upscale retail shopping outlets needed in very close proximity for the clients of the hotels who want the finer things and the style of life that wine country conveys.

The improved Napa River shoreline plans and availability of flood control to protect physical assets, as well as provide safety to the patrons, offers everything such quality companies want. There is the pleasantness of the river walk while watching the river flow and the wildlife that resides on its shores and in the water. There is the Opera house, the Symphony, Jarvis Conservatory, parks, etc. There are the four close-by golfing facilities, the Outlet Stores and more. There are cocktail & restaurant facilities and some have live music available, and to a smaller extent retail shops carrying quality products. The list of amenities goes on for locating on the available land around the Napa River.

MY CONCLUSIONS

The entire corridor from Napa Terrace Street going along McKinstry to First Street and running west and east between Soscol and Silverado Trail ceased to be an area designed for the vast majority of Napa County residents the day construction began on the redevelopment of the Napa River Oxbow properties.

There was the prestigious Buto Restaurant that was way overpriced for local consumers to enjoy on a routine basis. It failed and was followed by the mostly local attending Cuvee Napa Restaurant that has struggled but managed to stay afloat.

Along the riverfront, at the end of the street, is the fairly new Napa River Terrace Inn with its fairly expensive rooms, meeting space and lovely terrace directly overlooking the river. Certainly, these lodging facilities are not designed to cater to local residents.

Almost tangent to this complex, going south along McKinstry and the riverfront is the brand new Westin Verasa with expensive hotel rooms, hotel condo apartments, plentiful meeting/conferencing room space, the top star and very expensive La Toque Restaurant and The Bank Lounge. The facility is priced for the most affluent of the local community and tourists who are prepared to pay higher costs while on vacation. It is not designed to cater to the middle class working family that makes up the main population of Napa County.

On the West Side of McKinstry is located the depot of the Napa Valley Wine Train which must be considered a novelty whether from the standpoint of the local or by the visitors to the county. It survives just because of that novelty status as all who have never before experienced a train ride and can't wait to experience such an excursion which is further enhanced by the magnificent Napa Valley vineyards and hills and the service of quality food, wine and theatrical entertainment. This is not to say that others who have grown up using trains wouldn't enjoy the experience, because they too come and climb aboard for the pure enjoyment of such a beautiful ride with all its amenities. But it remains a commercial enterprise that will not experience frequent re-visitation by the same local or tourist individuals.

As one approaches the intersection with First Street along the east side of McKinstry starts the recently completed Oxbow Public Market Place with its 25 plus entities consisting of a bakery, ice cream parlor, hamburger joint, wine tasting facilities, butcher, spices, pots & pans and much, much more. I have walked through the main building many times since it first opened comparing the prices of the food related products and to my amazement I find that the shops are way overpriced for the vast majority of local residents. Certainly visitors staying in the hotels and inns are not buying these food products to take back to their rooms or distantly located homes. I suspect that the owners who also developed the San Francisco Ferry Building Public Market Place and the Vacaville Nut Tree Market Place are suffering deeply during these very troubled economic times.

Now moving east along the riverfront is the COPIA complex that I have already discussed.

Moving yet further east along the riverfront is the former location of JV's liquor, wine and beer store. This property wraps around going north along the Silverado Trail road and is the site that interested the Ritz Carlton investment group. Regardless if they are able to complete their proposed project or not, this prime property will eventually be sold to an upscale hotel, resort, condo and/or mall developer.

Scattered along First Street going along the south side and the north side towards Soscol are other restaurants, wine tasting rooms and miscellaneous shops mixed with small, old but well maintained residential homes.

Clearly all the commercial properties described above mark this Oxbow Riverfront property as the “Boardwalk & Park Place of Napa.” It is the Rodeo Drive of Beverly Hills, the Downtown Walnut Creek Redevelopment District and the Santana Row complex of downtown San Jose.

It represents large tourist room tax revenue, employment salary tax, sales and property tax revenues to the city and as such you will not see the property under-utilized economically for such noble social benefit, non profit ventures as teen clubs, skating rinks, jails, homeless shelters, farmer’s markets and similar projects which could never produce the revenues that such valuable property does and will represent in the near future under development by commercial, for profit ventures.

This area has become one of extremely high economic value designed from the city's standpoint for the extraction of tax dollar revenues and from the commercial enterprises' standpoint, profits, and all derived from the visitor/tourist and the more affluent residents, part-time residents and absentee property/business owners associated to Napa County. And, this last statement represents the consumer market for which one must design a development plan for the future use of the COPIA complex and adjacent empty properties.

Any realistic market assessment plan for the “Boardwalk & Park Place property” cannot only analyze the product such developer interests have to offer but must weight their analysis towards the consumer likely to visit the area. COPIA used the concept of their products of wine, food and art and then searched for a consumer market which they thought was just sitting around waiting for them. They assessed wrong!

Our concepts for the property consider the marketable consumer already being attracted to the area and we feel that developers have to have in mind products that represent the kind of products they come to enjoy and buy. Developers should plan to cater to those who stay at the expensive existing lodging facilities both adjacent to and located just short distances away from the COPIA complex as well as future luxury facilities planned and developed for the area. We also believe developer planned products should be attractive to the more affluent residents, part-time residents and absentee property/business owners associated to Napa County. Additionally, we think they should plan to attract the guests from the Meritage Resort, Silverado Resort, Napa River Inn, Meadowood Resort, Auberge Du Soleil, Calistoga Ranch, The Riverfront, Solage and other similar facilities catering to those desiring the “wine country lifestyle.” They ride in their limos and/or are driven in their own vehicles to shopping, wine tasting, dining and entertainment venues that interest them.

Our group believes that the package design could produce a “Boardwalk and Park Place ” as “The COPIA Riverwalk & Drive of Napa Valley.”

Monday, June 23, 2008

Napa - Solano Wild Fire, June 21, 2008

About 20 Napa Elk members had assembled at our Lodge located near the intersection of Trancas and Soscol this past Saturday to complete our quarterly clean-up of our bar and lounge area. We had finished our labor for the day and were enjoying a BBQ tri tip/chicken lunch when one our members outside on the back patio noticed heavy smoke raising up in the blue sky near Mount George, the highest peak east of the city of Napa. He happens to be a vineyard owner up in the Tulocay.Coombsville area which leads to Wild Horse Valley that stretches to he southern slope of the Mount. Needless to say he quickly left the building to make sure his property was safe. The fire started about 4:00 pm.

I snapped the picture below after the fire had going for about 50 plus minutes. It was taken from our Lodge parking lot. (Click on the pictures for enlargements)


I then drove up Lincoln Avenue to Hagen Road which leads up towards the roads that parallel the hills you see in the above photo. I turned onto 3rd Avenue and drove south to connect to Coombsville where I could go east up to Wild Horse Valley Road.

The fire is located very close to the county line dividing Napa and Solano Counties

As I neared the start of Wild Horse Valley Road the fire and police epartments were already blocking off the area and turning traffic away. I snapped some pictures and turned around so I wouldn’t be in the way of the emergency vehicles that were coming up Coombsville to reach the fire area. To the right, you can see a very large private residence at the top of the hill in the middle of the picture. This area has many such wonderful homes that would certainly be threatened by this blaze.

--------------


The picture immediately above was taken when I got back down into Napa in the downtown area. It was shot across the parking lot of the Safeway Store located on the corner of Jefferson and Clay streets. You can see how it is burning up the Wild Horse Valley in a northerly direction. A few hours later the fire was burning in both counties.


From the above picture you can see how far the fire spread in a very short time. The gray color smoke stretches from just under the green street sign all the way over to the chimney located at Cuvee Napa Resturant and just above the Napa Terrace Inn