January 7, 2003

Kempner Addresses Island Rotary Club
 

Harris "Shrub" Kempner, president of Kempner Capital Management, delivered his annual address to the Rotary Club of Galveston Island on Tuesday.  

Kempner noted that he just recently discussed prospects for 2003 with the Galveston Chamber of Commerce membership.

"One thing that has changed in the last one and one-half months is that outside factors have become more apparent and more pressing," Kempner noted.  "By outside factors, I mean a war in Iraq seems to me to be evermore probable and closer; Venezuela, which is a new factor, has put a tax on the U. S. economy because the price of oil has had to increase to make up for unexpected shortages - the latter factor wasn’t anticipated even 30 days ago; and North Korea with its newly brandished nuclear threat."

However, Kempner said he remains reasonably optimistic about the growth of the economy "despite the war clouds and potential nuclear clouds."

Kempner, who chairs the Galveston Economic Development Partnership, sees Tilman Fertitta's developments on the Seawall as beneficial to the Island's economy, but cautions about the impact to the neighborhood.

"This needs to be watched very carefully to see if the benefits of the Rainforest Restaurants will be offset by  property value changes and the willingness of the citizens to continue to live in Adler Circle – one of our few middle class/upper middle class housing developments," Kempner cautioned.

He also expressed caution about a prediction made by State Representative Talmage Heflin to the Galveston Chamber of Commerce, that casinos could be legalized for some or all of the State of Texas by 2009.

"I’m here to tell you that I think for Galveston it would be a major economic misfire if we allowed them here and  am stating now that, if anybody does try to bring them here, I will be among the many citizens urging the City to put this to a vote as they did the Port merger and heavily involved in the electoral fight against it," Kempner pledged.

Gulf Coast E-news is a publication of Guidry News Service, with offices at 926 Broadway in Galveston and 2500 South Shore Boulevard, Suite C Marina in Clear Lake.  Call (409) 763-NEWS (6397) or (281) 334-NEWS (6397) in the Clear Lake area.  For additional information, or to order a free, one-week complimentary subscription to Gulf Coast E-news, email News@guidrynews.com.