My Magazine Ch. 05

* * *

At the conclusion of the regular Tuesday morning full executive meeting at Zephyr Media, executive chairman David Brooks asked CEO Ron Wiggins and production manager Larry Knight to stay behind.

"I had a call from Jenni Giles late yesterday– very interesting. She wanted me to confirm the working relationship that we had discussed before she terminated with us. I told her I would get back to her by midday today."

"She's virtually gone to ground," Ron said. "Apart from that PA of hers working here in a temporary office and consulting our stores manager as arranged, I've heard nothing about what's going on. Rhonda smiled but wouldn't be drawn when I casually tried to find out what's going on. All she said was that I had Jenni's mobile phone number."

"Well with Jennie being Jenni a whole lot will be going on," David said. "I guess because she wanted something from me Jenni was talkative, though guarded. They have temporary premises while she's got real estate people looking for a suitable permanent home for them."

David sighed and said, "Jenni has this crazy idea that she can set-up and launch in a timeframe of six week – six weeks! I ask you! But she indicated that she had no option – she was paying her staff full rates and they were due to get underway in their temporary premises on Monday – but meantime they were working at home using their own computers."

David leaned back on his chair, tapping his ballpoint pen on the table.

"I ask you – is that a way to establish a magazine? Those people at home will be playing with their kids if they have them, or watching TV, mowing the lawns and going shopping or go to the pub. They will be on holiday at Jenni's expense."

Ron wasn't so pessimistic.

He looked straight at David and said that her staff had always responded well to her because she mucked in herself, leading by example.

"Either she or Rhonda will be phoning staff members each day letting them know what's going on and then questioning staff about what they have produced. Our Jenni is not one to give anyone an easy ride."

"Well if she'd that good why did we let her go?"

"Because we had nowhere to place her, unless it was in your job," retorted Ron, interpreting David's comment as criticism.

"Or yours," said David dryly.

"Right, let's get on with the reason why I called this meeting. What do we say about the extent of our benevolence towards her enterprise? As you know, initially I was not interested in giving a helping hand, but she's a very persuasive lady. She finally had me thinking it would be doing us a favour by giving her a cut rate in doing the production, printing and distribution for her. I can honestly say that I shook my head in wonderment after she'd gone, realising the favourable noises I had been making to her."

Larry commented that with Garden Secrets, Kitchen Successes no longer being produced there was spare capacity in the production line, providing her publication slotted in favourably.

"When does she want to publish?"

"It's good for us – she wants it to go on sale on the 20th of each month, which is well outside our busiest period," said David.

Larry asked what were the estimated number of pages and the estimated print run.

"The book of 200 pages – subject to advertising response – plus five-colour cover, four colour throughout and an initial forty thousand print-run."

Ron whistled. "She's taking a hell of a risk – it's usual to start fairly modestly and then to build on successes."

"What cover price is she setting?"

"She proposes to fix it at £8.15 subject to establishment costs being close to estimates."

"Oh god, she's aiming for the stars and hasn't done any market research and probably hasn't even spoken to experts. She should have come to us David. In fact, why didn't she come to me instead of you with this approach?"

David said Jenni was always one who went to the head chief, then noticing Ron's disappointment he told the truth.

"We know Jenni's a straight shooter, and she's showed it over this. She explained to me that you Ron are a long-time friend and she thought it improper to be trying to pressure you into granting her concessions that no one else was getting. She thought it could land you into criticism from me and even the board. I praised her for that attitude."

"She wants her production charged out on the basis of our production costs plus our usual mark-up less thirty percent."

"Holy smoke," Larry said. "We'd be doing it for next to nothing."

"Not quite David smiled. "I told her no way and she then began the big squeeze and I guess I said perhaps we could do the first two issues at that discount."

He looked at Larry for support, but it wasn't necessary.

"I think I would have said the same thing if it was my decision," Ron confessed.

"And what about subsequent issues for the next two years?"

"Twenty percent discount provided we have a signed agreement about us gaining that forty-nine percent shareholding in her company at the end of two years with a right to bid for the entire shareholding."

"That's almost exactly what I suggested but I didn't think about going for the whole company, which is a good thought, as in two years she may well have a collection of other small money-spinners under her banner."

Larry said, "What if this flash mag of hers goes under after a couple or even the first issue?"

"Everything we do will be done on her behalf with cash up front and so there will be no liabilities for us," Ron said. "To ensure we get our money in a risky launch like this our contract will require the estimated cost of pre-print production to be lodged in our bank account before we begin such work on each issue, and similarly pre-payment will be required before we begin plating up to print. If Jenni can't wear that, then she'd better try her luck elsewhere."

"Good thinking Ron," David said. "I guess I would have suggested something like that. We have to cover our rear end."

"I reckon she'd need to be able to lay her hands on at least a quarter of a million quid to cover the launch of this magazine of hers and tide herself over until the cash flow starts coming in. Where can our Jenni get that sort of cash?"

Ron said that her father was very wealthy. Tragically her mother and brother were killed in a car crash when Jenni was at primary school. Although her father had been retired for almost fifteen years he'd been a stockbroker and had maintained his interest in trying to anticipate market trends.

"As most of his trading was done on the US and Asian markets nobody has thought of researching to find if he qualified for his name to be published in New Zealand Rich List," said Ron. "Did you know that Jenni spent her final high school year at a finishing school in France and for her twenty-first birthday daddy bought her Montfort Sheep and Cattle Station in the South Island which she still owns, all 227,000 acres of it though about half lies in rugged sub-alpine country,

"Good heavens!" David exclaimed.

"I'd appreciate you keeping what I just told you confidential."

"Sure Ron and now back to real work that makes us money," David said. "But first I will phone Jenni with our good news. My disciplined brain tells me we shouldn't help Jenni take this huge risk, but my instinct says otherwise."

"I'm glad I'm not in her shoes," Ron muttered.

"Me too," Larry said. "I've passed the reckless age of the young and not into the silly age that is consuming Jenni. She won't make it, I'm sure of that."

"That's why you work in production – risk-takers work out yonder under the blue skies," David quipped.

* * *

The permanent accommodation of the business operations of Jenni Giles was being discussed in two different locations in The City (inner London) while Jenni headed to her chosen advertising agency, Moonglow Advertising, to get her promo material rushed through.

Her real estate friend Tess, acting as a property scout for her, was discussing the fifth floor space that had so appealed to Jenni with a specialist commercial salesman from another real estate agency. They were working on this project together, with both companies agreeing to split the commission payable by the building owners from which both salespersons would share if the premises were leased to Jenni.

Some two miles away Nico and his wife Katarina were looking at subdivision plans spread out on their dining table.

"It is comforting to know that you do not have visions of other women in your mind all the time Nico. I like this idea of yours very much. But where do you get all the money, and how can you persuade Jenni to buy in?

Nico grinned, patting his moustache.

He said he could be very persuasive, making himself irresistible to women. He hastened to say he meant of course in business deals. Such provocation took his wife's mind to another question, where did he get all the money to be able to do such a development?

Nico said he preferred to talk financial matters with other men, not women.

That went down like a lead balloon but smart Katarina knew she only had to bide her time and he'd reveal all.

* * *

Tess sat with her real estate associate Peter in a coffee shop, having a working morning tea break.

"Jenni knows about the possibility of her river views going, Peter. I've told her about the proposed six-level development across the street."

"And confirmed in writing?"

"Not yet."

"Please do that now, we don't wish to be accused of misrepresentations and having her go at us for damages for things she wasn't told, causing her to abort the deal and lose time and costs. Also photocopy, date and sign the landlord's statement that nine carparks go with the space being let; he's entitled to change his allocations but we need to be clear about what Jenni has been told."

"What's she like to deal with, anyway?"

Tess, daintily biting a cream cake, looked at Peter, idly wondering what he was like in bed.

"Tess I was asking, what's she like to deal with?"

"Oh sorry. My mind was briefly somewhere else. She's a lovely person, most likeable – I'd even go as far as saying sweet. But that's deceptive. She has a mind like steel and could, as they say, go for the throat if riled. I agree, I need to get those two letters to her, with copies for you of course."

Peter remained uneasy about being offered a secret commission by Leslie Chambers, marketing manager for Hedging Properties Ltd, owner of the building. He was too wise, of course, to mention this to Tess in case she took fright. Although he'd decided he couldn't accept the backhander he'd still not advised Leslie of that decision, which was rather interesting. Did this procrastination mean his decision was flexible? Peter pushed that question to the back of his mind.

"I've got Hedging Properties to drop their asking rates for floor space because your Jenni wants to take the entire area and to modify their terms and conditions to suit her, though their marketing manager says the company wants nothing less than a five by five lease (a five year lease with the right of renewal for another five years)."

He pushed across the letter from Hedging Properties setting out the proposed rates.

Jenni looked at it and sighed.

"Too high do you think?"

"Yes I think she will look elsewhere."

"Look landlords always say it's as low as they go, but let's get Jenni to the table with the Hedging people. You never know what might happen. She probably thinks this is a hot property and she needs to act fast."

Tess coloured and decided not to tell Peter that in answering a casual question from Jenni she'd mentioned that the space had been vacant for some months. It then occurred that Jenni had also asked who the previous tenants were – why would she want to know that?

"Right, got to go. Who's paying?"

Tess almost said gentlemen pay, but weakened. "This treat is on me."

Katarina, sitting closely beside Nico, felt a familiar stirring. She was not used to him being home on week days and then being so near to her.

"Should we leave this for now and perhaps do something else?"

Nico couldn't believe his ears. Katarina was not normally like this, although he couldn't be sure was normal was because he wasn't normally in the apartment on week days. Presumably she meant having sex, which wasn't a bad idea, but the old rule that was difficult to ignore – unless she really came on strongly. The rule was business before pleasure, so he ignored the invitation.

He draped his arm over her shoulder and rubbed his hand gently between her shoulder blades. She loved him doing that.

"Best we push on," he said. "This is the first time I can recall that very expensive lawyer of mine coming up with some amazing free advice."

"You described it as a very valuable concession that would allow us to live down here but what did he actually say?"

"That I am in a rather unique situation because I am an existing owner on a large redevelopment area and control the type of development for that area that complies with council planning requirements."

"More or less by chance he located an electronic copy of an old newspaper cutting of a council meeting stating that it was desirable to have a mix of office and residential properties in this area and a motion was passed to initiate planning changes aimed solely at tempting existing owners to redevelop. He got one of his underlings to check and that planning change was effected. It was introduced and remains in on the books, though he says apparently it has been forgotten."

"I think we'd better have a family conference and see who's prepared to invest in this project and who's interested in buying unit titles – some may wish to do both. Then once we know the family's desires we go to some of our moneyed friends.

"But Jenni wouldn't have money to buy space."

"Don't be too sure of that, dear Katarina. We know that some people have money, and some don't. My nose tells me that Jenni is a surprise package."

"I'm going off to see that young architect we had down at Jenni's at lunchtime the other day. I'd like him to do some sketches – very rough at this stage – just to give people we talk to some idea of the scope of this project."

"But your scheme involves acquiring the Shaw's Building which is a rickety old structure, not reinforced concrete like our block except for that extension where Janus and family live. Where does the money come to buy that, and what if they don't want to sell?"

"I have news for you – the Shaw's don't own that building, it's owned by an old gentleman Stjepan Kecic who immigrated from the Old Country many years ago. He'd worried about the loss of income because Shaw's negotiated a lower rental because their smoked fish processing business has hit hard times. He'll sell to me so I'll need to find the investors before I start talking to him."

"Well you go off to that young architect and I wash my hair and have a bath."

"I could leave him for another hour."

"Go you've got me worried talking about all this money we need to raise."

"Katarina dear, I have something to tell you that may surprise you. You know the spare space down at my boat yard?"

"Yes, are you going to sell that?"

"Yes and no. In front of the solicitor is an agreement from a friend of a friend who wants to buy the boat yard providing that I will erect a simple one level building on the spare land to house our chandlery business ..."

"Which is included in the sale and you walk away with a very large sum of money."

"Yes you do know how things work, don't you?"

"Don't I live with you and know your mind? But enough of that. What happens to our Janus who has a wife and two young mouths to feed?"

"He's a former commercial construction foreman so he will manage the construction of our redevelopment with his salary coming from the pool of money provided by our investors. He will engage specialist teams of workers, so no overall building contractor will be involved."

"He'll need to get out and about visiting building sites before then to brush up his knowledge on latest techniques – he'll also take our young architect out fishing I suppose. Perhaps the architect will know a young civil engineer who likes fishing and doesn't mind talking shop while waiting for the fish to start biting."

"Oh darling, this sounds so exciting. I'm not nearly so worried now as you seem to have everything thought out. Do you have to rush off?

After a successful visit to the architect, Nico phoned Jenni and asked would she like to have dinner at his place that evening.

"I'm sorry about the short notice, but I've got something to talk to you about that may really interest you."

"Well, that's kind of you Nico but I've already booked to go to a restaurant with Rhonda."

"Cancel and bring Rhonda. People cancel restaurant bookings all the time. If it's a half decent restaurant there will be people to take your table."

"Right, what time?"

"Five?"

"Good gracious, is the invitation for afternoon tea? How about 8:00?"

"How about 7:30?"

"Done Nico. We'll see you then. Now be a good boy and really help Katarina to get things ready."

"I'll be supervising. Goodbye Jenni."

Jenni and Rhonda arrived by taxi dressed in jeans, both with shirts hanging out and without jewellery.

The address Nico had given turned out to be a mini mansion.

"God, I think we should have dressed formal," said Rhonda, nervously. "Do you think we should ..."

"Definitely not, we're here now and they'll probably accept us for what we are."

"Peasants?"

"Yeah exactly."

Nico saw them walking up the path, so hastily removed his suit jacket and called to Katarina, "They're in jeans and men's shirts. Quick, remove your shawl and remove your jewellery. We don't want to embarrass them."

"Welcome, welcome," called Nico as he opened the door, and the girls were relieved to see that although he was wearing a tie he was without a jacket.

"Champagne – and two bottles! Thank you! Katarina, our guests are here."

Katarina came running and the guests were relieved to see that she was in a plain black dress, without jewellery and wearing slippers! Kisses were exchange and Nico lead them into the sitting room.

Nico opened a bottle of champagne and Katarina came in with an assortment of nibbles and then a plate of fingers of bread surrounding half a side of smoked salmon.

"Girls – we've got something exciting to tell you. Katarina and I wish to develop the entire site where you will be relocating but to do it progressively to minimize disturbance to you. We are buying that old building next to my building where Janus and his family live and then building a replacement two-level building to fully integrate with my building."

"Then, if you wish, you could permanently occupy the entire second level of those two adjoining buildings," Katarina said. "Then in the next stage Nico wants to redevelop the first floor of our building. The chandlery goes and downstairs becomes our new home and Janus and his family will life beside us if they wish, or else we will let it out as office space or to someone who may want to buy it."

"What do you think, girls?"

Jenni said, "What a wonderful idea provided it's possible to have a mix of residential with office."

"It is – my Nico has found a legal loophole, though it's only achieving what the council had once sought to make happen."

Rhonda said, "That's marvellous but I'm thinking about the construction noises is a bit of a worry."

"Some short-term pain for long-term gain, eh Jenni?"

"Quite right Nico Anyway we will be gone before construction starts – so what make you think we could take over the top floor in the adjoining buildings?"