Tuesday, November 24, 2009

La Sienna Elementary in Edinburg, TX to Open In Time For the 2010-2011 School Year

School district mapping out boundaries for new campuses
The Edinburg Review
By JOEY GOMEZ

ECISD has unveiled its boundaries for its four new elementary schools, which will open in time for the 2010-2011 school year.

As of Monday, the maps are about 90 percent complete and have yet to go before the school board, but take into account the schools created from the bond program started in 2008.

Proposed maps for the new junior high schools and high schools will be released next year, according to sistrict officials. The announcement was made at superintendent Dr. Ren�© Gutierrez’s District Parents’ Round Table meeting last week to discuss a variety of current and future issues impacting schools in Edinburg.

“Parents say ‘does my child have to move’ and the answer is ‘yes’,” Gutierrez told parents at the round table. “We have to abide by the zones and respect the boundaries.

The four new schools, which are currently named after their specific locations are called Rooth/Russell in northwest Edinburg, La Sienna in the northeast, Cano-Gonzalez sister school located southeast, and Alberta/Sugar in the south.

Each school is designed to accommodate 650 students, and will serve to alleviate crowding at some campuses, which have been hit hard with increasing numbers of new students. The Rooth campus for example will draw some of the 770 children currently attending Magee Elementary in time for the 2010-2011 school year. Magee is slated to open with about 500 students when the new campus starts next year. There are currently more than 32,000 total students in the district, half of those are elementary students.

The district has grown by 9,235 students over the last 10 years and school officials predict the student population will be about 42,000 by the 2015-2016 school year.

All of the new schools are located in mostly outlying communities of the district, which spans 945 square miles. Student numbers in schools located in town will not be impacted, according to the district.

“Does it make a difference? Well my child is not going to go to a school with 800 kids. That’s too many at the elementary level. Avila, Monte Cristo and Villarreal ... all of them have 800 kids right now,” said Mario Salinas, assistant superintendent for district ddministration. Salinas, who along with the district’s transportation department and a committee of nine principals, was responsible for putting the maps together. Each map ultimately has to be presented to the board for approval.

According to Salinas, criteria used to move the boundary lines was based on several factors: a neighborhood concept, school population, and those outlying schools which were impacted the most.

“The one thing that I want to emphasize is that we’re not done,” Salinas said. “We’re still working on it, we’re still taking recommendations from the parents. We are still going to run this by the principals to see if they have ideas better than what we have.

To account for growth, ECISD officials say there are at least 11 projects at a cost of $111 million scheduled to be online within the next three to four years. Three new Fine Arts facilities will be added to each of Edinburg’s three high schools at a cost of $6.2 million each. Renovations to the Brewster campus are also slated to be complete by next year with a cost still to be determined, according to the district.

Two new middle schools and an additional elementary school are slated for completion by the 2011-2012 school year. A new high school to be located at the current Harwell facility will open by 2012-2013.

McAllen-Edinburg-Mission, TX MSA's Listed in America's Fastest-Recovering Cities by Forbes.com

When Forbes.com list of America's Fastest-Recovering Cities is ranked by Gross Metropolitan Product (GMP) or Gross Regional Product (GRP) the McAllen-Edinburg-Mission, TX MSA's rank #1.

Gross Metropolitan Product (GMP) is one of several measures of the size of the economy of a metropolitan area. Similar to gross domestic product (GDP), GMP is defined as the market value of all final goods and services produced within a metropolitan area in a given period of time.


Full List: America's Fastest-Recovering Cities by Forbes.com

Main Story on Forbes.com

Monday, November 23, 2009

Feature Article by Mike Blum & Richard Moore: Timing Is Everything...How to Maximize Returns and Minimize Risks



With the national economy still trying to find firmness, many are trying to figure out how to regain a lost footing from a 40% decline in their 401K or other investment portfolios. People holding real estate ask: “do I sell now in a down market or do I hold and hope things will regain their value in a few years”?

On the other hand, investors with capital look for a really good deal…perhaps below market.

It appears that owner/sellers and investor/buyers may have a common objective: Maximize returns, minimize risk. Or put more simply: Making money in real estate is all about timing. The big question is: When is it the right time to buy or when to sell?

Historically, the time to buy and the time to sell were solely dependent on the market value of property. When the value reaches a target value, the investor sells, makes his profits and moves on. Today, there is an added variable which must be considered when deciding to sell; Capital Gains Taxes.

Right now, capital gains taxes are calculated on 15% of the gain. Investors have enjoyed this tax rate since 2003; however, this is about to end. Without any new legislation from Washington, this rate will increase to 20% in 2011. There are indications that the White House is interested in raising rates higher than the 20%, and possibly as high as the highest tax rate. The ordinary tax rate is scheduled to return to the old 39.6%, but this rate is also under consideration by the current administration in Washington.

Therefore, the likelihood of a significant increase in the capital gain tax rate makes selling appreciated property sooner than later a smart move. So what does this mean?

Well hypothetically, if the capital gain rates moves from 15% to say 30%, a property which has doubled in value will have to fetch nearly 11% more for the sales price to return the same net after tax profit to the seller. This additional 11% will only keep the owner/seller in the same place as they are now before the tax rates go up. The problem will be more severe if the capital gain rates go higher than 30%.

So if you are an owner/seller, now may be a good time to think about liquidating property that has appreciated while the tax rates are relatively low. Capital gain tax rates will not stay at this rate for much longer. If you own open land or occupied buildings and are thinking about holding in anticipation of a higher price when the economy turns or if you have capital and are not adverse to paying less and getting more, it may be advisable to consult your financial professional and realtor to analyze your situation and plan the best course of action.

If you would like to learn more about your options contact Richard Moore at 956-630-3053 richard@cpamoore.com or Mike Blum at 956-994-8900 mikeb@nairgv.com.

Richard Moore is a CPA and owner of Richard Moore and Company. Richard is a recognize expert in his field. Michael J. Blum is a Partner and Managing Broker for NAI Rio Grande Valley, an affiliate of NAI Global one of the world's leading providers of commercial real estate services.
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IDEA Schools will have two new sites in the Rio Grande Valley in 2010

IDEA Schools will have two new sites in 2010

MORE INFO
>> Visit http://www.ideapublicschools.org/ or call (956) 377-8000.

PHARR — Pharr and Alamo will have each an IDEA school open in time for next school year, officials announced Friday.

Both campuses will open in August 2010 starting with kindergarten, sixth and ninth grades. Additional grade levels will be added each year.

In 2006, IDEA Public Schools began an ambitious expansion plan to open 22 new schools across the Rio Grande Valley by 2012. Today, the school system has 12 campuses from Mission to Brownsville, not including the two announced Friday.

IDEA schools are tuition-free and open to all students. All schools are accepting applications for the 2010-11 academic year. Existing campuses are located in the cities of Donna, Brownsville, McAllen/Edinburg, Mission, San Benito and San Juan.

IDEA Public Schools operates a system of public charter schools that focus on college readiness.

In 2009, IDEA College Preparatory in Donna was named the...
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Friday, November 20, 2009

Mexican shoppers made for flood of sales receipts last weekend in McAllen

Mexican shoppers made for flood of sales receipts last weekend in McAllen
November 20, 2009 12:05 AM
The Monitor
Sean Gaffney

McALLEN — While city workers hung holiday lights along the streets, downtown McAllen’s retailers wondered if last week’s rush was a prelude to a jolly season.

Mexican shoppers flooded the McAllen area the weekend of Nov. 14 and 15, clogging bridges and thronging shops. Shopkeepers said sales were at Christmastime highs. With a weak peso and economic malaise threatening to hamper holiday spending, they wonder if it was just a tease.

“Right now, it’s still slow,” said Jesus Medelez, an employee at Fashion 25 near the downtown parking garage. “It was very different two years ago.”

When the economy fell apart and the peso lost value, fewer Mexican nationals crossed bridges and those that did spent less. Losing customers who normally spend at least $1.1 billion in Cameron and Hidalgo counties each year crippled sales at area retailers.

Bridge traffic fell and had been on a slow and steady decline since. At the end of September, traffic was down about 10 percent from a year before, said George Ramon, director of the Hidalgo-Reynosa International Bridge.

More than 15,000 vehicles crossed the Hidalgo bridge, up from an average of 11,500 vehicles in recent weeks.

“I was trying to remember the last time I saw that number. It wasn’t at all this year,” Ramon said. “Merchant and hotel owners and operators should be very pleased as well … those are near Christmas rush holiday numbers.”

Two years ago, about 10 Mexican pesos were worth one American dollar. Now, one American dollar costs 13 pesos. It’s a little better than last November, but still means that Mexican nationals have far less buying power.

Last week, sales spiked at Jakybon Accessories, but owner Juany Garza does not think the blues are over. She doesn’t expect the economy to recover for another year so she’s keeping inventory lean at 1424 Beaumont Ave.

She doesn’t want a repeat of last season, when after Christmas her store was crowded with unsold jewelry and beads.

“I have a lot of problems paying employees and paying the bills,” Garza said.

But with the recession well into a second year, Garza and owners like her said they’ve learned to adjust both their expectations and their costs.

Eli Lizka, owner of Colors Name Brand Clothing, saved money switching phone and electric companies. He’s run sales and he’s cut his inventory at 114 S. Main St.

Last weekend his sales were tremendous, but he didn’t know...

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Tuesday, November 17, 2009

Mobility authority gives Garza incentive to build border trade corridor

Mobility authority gives Garza incentive to build border trade corridor
November 15, 2009 3:17 PM
Jared Janes
The Monitor

A number of potential projects await new Regional Mobility Authority executive director Godfrey Garza as he starts work this week on his consulting contract.

He’ll need to finish environmental clearance for the full Hidalgo County loop; the mobility authority wants to discuss ways to bring the long-awaited La Joya bypass to fruition and Garza himself is interested in developing a rail strategy for the region. But first thing’s first.

Garza’s top priority is funding an executable finance plan for the Hidalgo County border trade corridor, a spin off from the loop that the mobility authority put together in August when it determined it wouldn’t be able to fund the full project.

If Garza is able to finance at least 90 percent of the 29-mile roadway that connects three international bridges to Expressway 83, he’ll earn $1.1 million over the next three years as the executive director for the mobility authority, an independent government agency that was created in 2005 to manage long-term transportation projects for the county.

Garza, who will continue his work as the manager for the Hidalgo County Drainage District No. 1, was brought on board by the mobility authority because of his record in bringing projects like the county’s levee-wall to life, said mobility authority chair Dennis Burleson. With an investment of two years and more than $12 million on the original loop, the mobility authority’s top priority is the trade corridor, which is the closest to coming together.

“The trade corridor gives South Texas some credibility for the future,” Burleson said. “If the trade corridor is successful, then we can start looking for our next project.”

The mobility authority’s board must decide by mid-February if it wants to pursue an agreement with Hidalgo County Roadbuilders to build the border trade corridor.

Roadbuilders, an association of local engineers and Houston-based road developer Gerry Pate that was hired in 2007 to develop plans for the original loop, submitted a $396 million plan for the trade corridor last month, setting off a 120-day clock for the mobility authority to decide if it wants to agree to the maximum price.

The mobility authority will...

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Monday, November 16, 2009

Proposal would tie two bridges at mid-point linking Brownsville and Matamoros, Mexico

Proposal would tie two bridges at mid-point
November 15, 2009 10:02 PM
By EMMA PEREZ-TREVINO, The Brownsville Herald

An innovative project that would tie two international bridges at center point to both link Brownsville and Matamoros, Mexico, is planned by the state, county and city.

The Texas Department of Transportation, Cameron County and Brownsville propose to tie Veterans International Bridge at Los Tomates with a parallel bridge.

Both bridges would be tied, but only at mid-point via a five-lane span.

"I think this (project) is the only one of its kind," County bridge Administrator Pete Sepulveda said.

"It (the tie-in) provides us options," in the movement of traffic, Sepulveda said.

And in connection with the project, the Federal Highway Administration has given notice to the public of an opportunity to provide input regarding the socio-economic and environmental effects of the proposed bridge

In the course of an environmental assessment of the project, FHWA issued the public notice via the Federal Register on Thursday, stating that a public hearing will be scheduled if persons request one on or before 5 p.m. Dec. 15.

A written request can be mailed to the Texas Department of Transportation District Engineer’s Office, P. O. Box 1717, Pharr, Texas, 78577.

The project calls for construction of a four-lane bridge for commercial trucks 32 feet downstream from the Veterans bridge.

The Veterans bridge and the proposed bridge would be connected at midpoint, "to provide flexibility in operation, maintenance, and security," the federal notice states.

In order to accomplish this, five bridge spans near the Rio Grande would join the bridges.

"This transitional connection would allow for one bridge to be operational while maintenance is undertaken on the opposite bridge," the notice states.

Furthermore, "this bridge connection section would allow traffic diversion from one bridge to another in case of an accident or emergency," the FHWA’s notice also points out.

The notice also states that it is not anticipated that the project would displace anyone. The proposal also would not require the purchase of additional rights-of-way and it would be constructed within an existing 300-feet wide right-of-way.

Sepulveda said the project is being developed jointly with Mexico officials.

The federal notice also points out that location maps, design plans, schematic, environmental assessment and other information regarding the proposed project are available for viewing at the TxDOT District office, 600 W. U.S. Expressway 83 in Pharr. The telephone number to schedule a viewing is (956) 702-6100.

McAllen and Brownsville Ranked 3rd & 4th in BusinessWeek's List of "Where the Jobs Will Be in 2010"

Where the Jobs Will Be in 2010


The recession might be technically over, but unemployment is rising month after month even in most of the nation's strongest job markets.

A full-fledged job recovery seems to be a long way away. But some metros are poised for significant job growth by the first quarter of next year. BusinessWeek.com teamed up with Moody's Economy.com to identify America's 25 next recovering job markets. These metros were ranked based on Economy.com's projected job growth in the first three months of 2010.

Topping the list is Mount Vernon, Wash., a small town about 60 miles north of Seattle with just 48,000 workers. The town, which lost jobs quickly during the recession, could see a rebound, in part because tourism, retail, and hospitality will make a comeback as the economy improves. Additionally, the weak dollar will provide a boost to communities with international trading ports and metros that border Mexico, such as Brownsville, Tex. (a port town that is No. 4 on our list), and border town McCallen, Tex. (No. 3). Our list was also packed with towns that are closely linked to the energy industry (Billings, Mont., Houston, Tex., and Farmington, N.M.), college towns (College Station, Tex., Tuscaloosa, Ala., Auburn, Ala., and Lawrence, Kan.), and military towns (Columbus, Ga., Augusta, Ga., and Texarkana, Tex.).

None of the metros on the list experienced a housing bubble that had a disastrous pop. Miami, Las Vegas, Phoenix, and Stockton, Calif., will likely be in a funk long after many Texas metros are in growth mode.

"These are areas that had little or no housing cycle and stand to benefit from the renewed firmness in commodity prices," said Chris Lefakis, an economist at Moody's Economy.com. "This could be an export-lead recovery with the replenishment of inventory leading to a resurgence in manufacturing."

Room for Growth in Manufacturing
The manufacturing sector has taken such a battering that it has a lot of room for improvement. Inventories have fallen to such low levels that manufacturers will have to increase production even to keep up with existing demand, Lefakis said.

A plant opening or just expanding can have a magnified impact on a small metro, giving a swift boost to the job market, said Joel Naroff, president of Naroff Economic Advisors in Holland, Pa. But job growth elsewhere mostly will be slow and incremental, he said. Companies will be cautious about hiring and will expand overtime hours and bring on temporary workers before making permanent hires.

The good news is that overtime pay and the increase in temp workers will push up wages nationwide, which could result in more consumer spending, he said.

"If the economy begins to grow, it will be enough [for companies] to add slowly to payroll," Naroff said. "I'm not expecting a vigorous upturn."

Travel, hospitality, and retail could see more dramatic growth. Throughout the recession, Americans have cut down on travel, eating out, and shopping. If the economy improves, they'll add more entertainment to their budgets, he said.

"People might not go to Disney World," said Naroff. "But they might start going out to dinner once week."

New York City, which didn't make our list, could also have a great year, especially now that Wall Street is giving out bonuses "like 2008 never existed," he added.

The federal government will also play a key role in the recovery even as it begins to phase out tax incentives and other economic stimulus spending, Moody's Economy.com Chief Economist Mark Zandi said on CNBC Nov. 3.

"Without the government, the consumer would be pulling back," Zandi said. "By early next year job losses will abate … so we will start to see wage and salary growth and government can begin to pass that baton off [to the private sector]. But it will be a tricky handoff."

Sunday, November 15, 2009

County holds off on Ocean Tower for the time being

County holds off on Ocean Tower for the time being
November 13, 2009 8:04 PM
By LAURA B. MARTINEZ, The Brownsville Herald

The Cameron County Commissioners’ Court has held off on providing a contractor with a temporary storage site for demolished construction material from South Padre Island’s Ocean Tower, which is scheduled for demolition.

Action on the site was tabled Thursday because the Commissioners’ Court needed additional information about the implosion of the structure, including whether there would be hazardous material involved and who would be in charge of removing the debris, County Judge Carlos H. Cascos said.

Costa Rica Food & Spirits Restaurant requested that it be allowed to store the remnants of Ocean Tower for about 45 days, while the steel and concrete is separated, said Cameron County Parks Director Javier Mendez.

Costa Rica Food & Spirits Restaurant is leasing its land from Cameron County.

Oceans Towers is a 31-story condominium scheduled to be demolished in early December.

Construction on the 151-unit luxury project was halted last summer year after it was determined it was sinking, which caused cracks in beams and columns.

Antun T. Domit, listed as the resident agent for Ocean Tower LP, sent out letters in November 2008 to people who had either expressed interest or had purchased one of the condo units, informing them that the high-rise project was cancelled.

The developers of Ocean Tower have filed a lawsuit against the two engineering firms contracted for the project.

Meanwhile, while discussing the Ocean Tower situation at Thursday’s meeting, commissioners learned that Ocean Tower LP owes the county about $40,000 in back taxes from 2008. Ocean Tower owes other taxing entities in the county an additional $40,000, officials said.

Tax attorney John Guevara, of Linebarger Goggan Blair & Sampson LLP, on Friday said the law firm has filed a lawsuit against Ocean Tower on behalf of Cameron County for the 2008 back taxes.

The lawsuit was filed earlier this week.

Although past due tax notices were sent out beginning in July to Ocean Tower, the law firm has received no response, Guevara said.

Domit could not be reached for comment on Friday.

News of the owed taxes didn’t sit well with Precinct 3 County Commissioner David A. Garza, who said the county should consider filing an injunction against Ocean Tower.

An injunction would temporarily prohibit Ocean Tower from being demolished.

"I think we need to protect ourselves," Garza said. "It’s costing a lot for them (Ocean Tower) to do that. Maybe they’d be more apt to pay what they owe," if an injunction was filed.

However, Cascos said he didn’t believe asking for the delay would help the county collect the taxes.

Precinct 1 County Commissioner Sofia C.Benavides said since Ocean Tower has been selling some of the furnishings from the high-rise, the business should also make an attempt to pay the county money owed.

Advertisements have been placed in The Brownsville Herald stating that some of the furnishings, such as lighting, plumbing, interior fixtures, granite flooring and countertops, were for sale and priced below wholesale.

"If they’ve been selling all this stuff, they should be paying us," Benavides said.

Shovel-ready building sites in the Rio Grande Valley offer quick road to development

Shovel-ready building sites offer quick road to development

Photo: Delcia Lopez   dlopez@themonitor.com
Ramiro Garza, executive director of Edinburg Economic Development Corp., is seen recently with a map of the Edinburg North Industrial Park

The industrial park north of town was little more than empty land crawling with ants and snakes when Gerardo “Jerry” Nuñez set up shop there five years ago.

Nuñez, owner of Nu-Co Tool, a toolmaker for 35 categories of manufacturers, rented out his old building and moved into the park off U.S. 281 and Orange Avenue because he saw a chance to grow his business on the open land.

“The space was there and the opportunity of the unknown gets to me,” Nuñez said inside the 23,000-square-foot warehouse he built on the 8-acre plot of empty land he bought from the Edinburg Economic Development Corp. “I wanted to develop it from nothing.”

But in a fast-paced business world where time is money, Nuñez’s willingness to go it alone in an undeveloped area was a rarity.

Economic development officials in the Rio Grande Valley want to ensure they have everything already in place at a few select spots where they hope to land large employers.

By the end of this year, Hidalgo and Cameron counties will have four shovel-ready mega-sites, locations generally reserved for companies that plan to employ 500 or more people.

The designations are an effort by the Rio South Texas Economic Council, a group formed last year to market the region, to make the Valley appealing to large companies looking to set up shop here.

A Sharyland Plantation site for which McAllen and Mission economic development officials are seeking shovel-ready status is near the site the cities have talked about as a possible location for an auto manufacturer.

Hidalgo County’s other site is in the same park that is home to Nuñez’s Nu-Co Tool, next to where Brazilian denim manufacturer Santana Textiles plans to start construction next year.

Securing the shovel-ready designation requires extensive work to produce a thick binder filled with documents that show the site is ready for development, said Ramiro Garza, the executive director of Edinburg’s development corporation. To lure projects the size of Santana, which plans to employ 800 people by 2014, the old plan of building a sales pitch around an empty plot of land is no longer enough.

“When companies are looking for property, they want readily available sites,” Garza said. “They don’t want to wait for everything to be in place.”

SHOVEL-READY
When Austin Consulting certifies the Valley’s sites as shovel-ready, the firm says the locations will be the first in the state to receive the designation.

Most states — including Texas — have not adopted official criteria to designate a site as shovel-ready.

Instead, site location consultants that traditionally helped companies find a place to build provide the certification, placing their own stamp of approval on an area, said Frank Spano, a director with Austin Consulting, the firm hired by the economic council to review the Valley’s sites.

The shovel-ready designation grew out of a desire by companies that wanted to expand and governmental entities looking to land them as a way to speed the process along.

From start to finish, most companies spend nine months deciding where to expand or relocate their operations, Spano said. Having a site ready to go, with the property on the market, utilities extended and the permits in place, gives the company a better picture of what the site offers and how long until it can start operations there.

But getting the designation — since the companies that give them out put their own reputations on the line — isn’t easy.

To receive Austin’s shovel-ready designation, sites start with a comprehensive, 10-page form filled with questions, Spano said. By the time they complete the form’s requirements, the paperwork fills a 3-inch binder — the documents include everything from ownership information, aerial photographs and maps of the location, soil tests and environmental details, right-of way-plans and more.

But Spano said the designation makes the site appealing to companies looking to fast-track the development process.

“Shovel-ready sites are important because companies want to make a decision faster,” Spano said. “They want to have that information on hand. It certainly gives you a leg up on the other site.”

VALLEY SPOTS
The Valley’s failed attempt to attract a Kia Motors Corp. manufacturing plant in 2006 provided the impetus for it to work toward the shovel-ready tags.

Automaker officials who looked at the area wanted to know why the Valley’s prospective site wasn’t certified by a South Carolina-consulting company with extensive experience in automotive site selection, said Pat Townsend, president of the Mission Economic Development Authority.

Kia eventually decided to put the plant in West Point, Ga., but the brief flirtation with the company showed local economic development officials the turnaround that the industry and others like it need.

Townsend said having the information ready is key even if there aren’t immediate prospects for the three subdivided plots off Shary Road that the economic council is designating as shovel-ready.

“We’re doing it with no immediate prospect identified,” he said. “The benefit is if we actually have a prospect identify it as a suitable location, we’re way down the road to answering what the company actually requires.”

The learning experience on what’s needed for the designation also gives local officials a better feel for what they need to compete for a major project, said Keith Patridge, president of the McAllen Economic Development Corp. With all the specific details on the site available, the companies can spend more time learning about the region, the labor force and other key factors in a decision.

Although the economic council is starting with four shovel-ready sites, the plan is to develop a revolving portfolio of sites to attract companies that create 500 jobs or more, Patridge said. The jury is still out on whether the shovel-ready sites help the Valley bring in companies but, with the rather exclusive nature of the process, “it can’t hurt,” Patridge said.

“It’s like another arrow in our quiver we have available to target manufacturers,” Patridge said. “It puts us in a great position to compete.”

FULL PARK
Nuñez is still alone in the industrial park he moved into four years ago.

But with roads and utilities in place in the 160-acre site, it likely won’t be long before he sees a flurry of development around him.

Santana Textiles and two other manufacturers are under contract to build on 70 acres in the park — work the city expects to start next year. And the 25 acres left in the park will soon be designated as shovel-ready.

Nuñez, who builds tools primarily for the automotive industry, said he’s looking to expand on the plot he already owns.

“Five years from now, we’ll see this park full,” he said. “It’s got everything in place to take off.”

Jared Janes covers Hidalgo County government, Edinburg and general assignments for The Monitor. He can be reached at (956) 683-4424.