Haas NewsWire

Haas NewsWire, May 14, 2001

**During the summer, Haas NewsWire will be published monthly. Weekly publication will resume on August 27.**

Over 600 Students in Four Programs to Graduate from Haas this Sunday
Management of Technology Receives $1.5 Million Endowment for Summer Internship    Program
California's Slumping Economy Faces Multi-Year Recovery, says Researchers
UC Berkeley Teams Win Two Real Estate Challenges
Haas Begins a Summer of Major Conferences
Haas Celebrates a Year of Accomplishments
New Staff at Haas
Haas in the News
Happening at Haas

Haas NewsWire Archive
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On Sunday, May 20, 636 students representing four of the Haas School's academic programs will march through the Greek Theatre to commence their new roles as Haas alumni.

The Haas School will be conferring degrees to 290 undergraduate students, 233 full-time MBAs, 106 Evening MBAs, and 7 Ph.D.s at this year's commencement ceremony. David Pottruck, co-CEO of Charles Schwab Corp., will deliver the commencement address. Dean Laura Tyson will be master of ceremonies. The student speakers are Theodore Liaw (undergraduate), David Theodore Marron (Evening MBA), and Patrick De Neale (MBA).

The Haas graduation ceremonies on May 20 begin at 9:00 a.m. in the Greek Theatre. They will be followed by a reception on Kleeberger Field from 11:30 a.m. to 1:30 p.m. Students get two free tickets to the reception. (Graduates are admitted free.) Students may pick up extra tickets ($5 each) in their program offices before Friday or at the door for the event. Children under 5 are admitted free.

New graduates looking to stay connected with the Haas School should visit http://www.haas.berkeley.edu/alumni/newgrads/index.html to learn more about the Haas Alumni Network.

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With the financial backing of a leading Silicon Valley venture capital firm, the Haas School of Business, the College of Engineering, and the School of Information Management and Systems are launching an innovative program that blends academic training in entrepreneurship with hands-on industry experience at Silicon Valley startups.

The Mayfield Fund, a top-tier venture capital firm headquartered in Menlo Park, California, has committed $1.5 million to fund the new program at UC Berkeley, to be called the UC Berkeley Mayfield Fellows Program. The new program will be administered by the Management of Technology Program (MOT), a partnership created in 1988 by the above three units of the UC Berkeley campus. Under the UC Berkeley Mayfield Fellows Program, graduate students selected from the College of Engineering, the Haas School of Business, and the School of Information Management and Systems work as summer interns at venture-backed high tech firms in Silicon Valley.

"I don't believe any other university offers its graduate students such rigorous training in starting new high-tech ventures, from both a business and a technology perspective," explains Richard Newton, dean of the College of Engineering. "Add to that the opportunity to work directly for the CEO of a high-tech startup as part of the academic experience, and we have created something truly extraordinary for our students."

The first group of UC Berkeley Mayfield Fellows was announced this week, four each from the College of Engineering and the Haas School, all with extensive technical training and previous work experience in high tech. The names of the fellows will be announced at a later date. In addition to the summer internships, UC Berkeley Mayfield Fellows participate in intensive classroom work, intended to blend the practical experience gained through their internships with the challenge and growth of a series of graduate seminars on technology and entrepreneurship.

"The UC Berkeley Mayfield Fellows Program is a great example of the way in which we're succeeding at blending hands-on industry experience at Silicon Valley companies into the Haas academic experience," says Andrew Isaacs, executive director of MOT. "The joint MOT-Lester Center collaboration on this program makes this new venture all the more exciting."

The Mayfield Fund has made the $1.5 million commitment to UC Berkeley as part of its support of the Center for Information Technology Research in the Interest of Society (CITRIS), being created within UC as a focal point to apply advances in information technology to the solution of society's most critical needs. "Mayfield is excited by the opportunity to participate with UC Berkeley in a program that will enrich the entrepreneurial experience for graduate students," said Michael Levinthal, Mayfield Fund general partner. "The continual success of startups that have flowed from UC Berkeley to the Bay Area and beyond is exceptional, and Mayfield is proud of our association with this process."

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As California's prosperous glow begins to tarnish, the state as a whole faces sharply escalating unemployment rates, a leveling off or decline in home prices, rising office vacancies, and reduced construction over the next two to three years. These are the conclusions of Professor Dwight Jaffee and California economist Cynthia Kroll of the Fisher Center for Real Estate and Urban Economics.

In the center's recently released Spring 2001 Research Report, Jaffee and Kroll point to the vulnerability of California, and particularly of the San Francisco Bay Area, as the US economy slows. The authors look at the state's experience in past recessions and conclude that a two to three year adjustment period is likely before the state resumes expansion.

Jaffee and Kroll point out that the major stock price adjustments that occurred earlier this year reflected real changes in the economic factors driving California's economy. Driven by expansion of dot-com and high tech sectors, computer programming employment alone grew by over 90,000 jobs in 2000, with much of this increase found in the San Francisco Bay Area. The bursting of the dot-com bubble and subsequent lay-off announcements leave this sector -- and the Bay Area -- particularly vulnerable.

The real estate market will also feel the effects in coming months, and the impact on the office real estate market is likely to be substantial. In fact, prices have already begun to decline in this sector. San Francisco's SoMa (South of Market) district, which has recently put on the market many offices geared toward dot-com-type firms, is most likely to suffer as a wave of these companies goes out of business.

The authors argue that office rent's could drop substantially -- at least 10% in San Francisco's downtown area and perhaps as much as 50% in the areas most heavily affected by the dot-com bust. Dropping rents could temper the rise in vacancies. Companies that were previously forced out of the market by sky-high lease prices are now looking at reduced rates.

The residential real estate market will also be affected by the economic adjustment. Kroll and Jaffee expect the high-end residential real estate market, previously fueled by stock market gains, to contract the most as the crop of dot-com employees who found their way to quick wealth sell their newly overpriced homes. Lower- and mid-range markets will see more moderate price adjustments.

Based on past history, the researchers maintain that job losses and declining real estate prices could continue for two to three years. They point out that in the longer term, both Silicon Valley and California as a whole have shown an economic resilience and the ability to resume expansion after a slowdown or recession.

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Victory came to the Haas and other UC Berkeley graduate students who participated in the two most recent real estate competitions: the National Association of Industrial and Office Properties (NAIOP) Challenge and the Bank of America Low-Income Housing Challenge.

NAIOP Real Estate Development Challenge

The Shovel returned to Berkeley last Thursday, May 3, as the Berkeley team took home this symbolic prize of the NAIOP Real Estate Development Challenge. The NAIOP competition is a challenge between graduate students at UC Berkeley and Stanford and is sponsored by the San Francisco Bay Area chapter of the National Association of Industrial and Office Properties.

This year's challenge: What is the economic future for a strip of land and buildings on a former military base, on an island, in a tertiary market of the Bay Area, Mare Island. Teams of five students proposed the best use, design, financing, and marketing of a commercial real estate project.

In addition to strong market analysis, community buy-in, and a financial analysis that supported their phased development, the Cal team added something new: a dynamic marketing plan, including a 3-D video montage of site context, present and planned buildings and renderings, landscape, and waterfront.

"Clearly the team leveraged the best talent of each member, orchestrating a comprehensive program for the base reuse," said Steve Chamberlin, adjunct professor at Haas who teaches real estate courses. "The city of Vallejo and the site developer, Legacy Properties, acknowledged how much they benefited from the Challenge exercise."

UC Berkeley's 2001 NAIOP team included Aimee Einstein, MBA 02; Jonathan Fearn, Masters of City Planning 01; Chiendao Glasgow, Masters of Architecture 01; Maria Iniguez, MBA 01; and Sara Williams, MBA 02. UC Berkeley's team won the competition last year, bringing the decade-long battle with Stanford to a tie, five wins for each university. Winning this 12th Annual Cal-Stanford Real Estate Challenge changed the overall score to UC Berkeley - 7, Stanford - 5.

Bank of America Low-Income Housing Challenge

Berkeley's team also won the Bank of America Low-Income Housing Challenge, a competition among several west coast graduate schools, in which each team must identify a viable site, gain community support, and then design, finance, and market an affordable housing project. A panel of professionals judges the projects.

Berkeley's multi-disciplinary team proposed a project called Gateway Landing, to be located in downtown Oakland. The project proposed 70 units of housing affordable to families earning $20,000 - $40,000 per year. The project incorporates components of sustainable development, including energy efficiency design, links with public transportation, and programs for residents to aid upward mobility. In recognition of their efforts, the team received $2000, which they will donate to Urban Ecology and the East Bay Alliance for a Sustainable Economy. Copies of the team's final proposal are available on the web at http://sites.netscape.net/gtwylanding/sub1.htm.

This year's team consists of Paul Correa, Masters of City Planning (MCP) 01; Alexandra Galovich, MBA 02; Shinichiro Ikeda, MCP 01; Christia Mulvey, MCP 01; Bao-Tran Truong, MCP 01; and Madeleine Zayas-Mart, MCP/Masters of Architecture 02.

Final presentations were held on Wednesday, May 4, at 9:30 a.m. at the Bank of America Building in San Francisco.

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Throughout the summer months, the Haas School of Business plays host to conferences both on and off campus. The first four scheduled for this summer are the Center for Financial Reporting and Management's (CFRM) Managing Stock-Based Compensation in a Declining Market, the Sixth Annual Fisher Center Real Estate Conference, the Center for Information Technology and Marketplace Transformation Conference on the Transformations Necessary to Enable eBusiness, and CFRM's Revenue Recognition: Navigating Recharted Waters. Details on all of the conferences announced (so far) for the summer are below.

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The End of the Year party was a roaring success, celebrating Haas faculty, students, and staff with awards, accolades, beer, and barbecue. For those of you who may have missed the event, all of the award winners are listed below.

This year's winners of the Cheit Awards for Excellence in Teaching were: Undergraduate Program: Jack Phillips; Full-time MBA Program: Sarah Tasker (honorable mention: Andy Rose and Suneel Udpa); Evening MBA Program: Jonathan Leonard (honorable mention: Sarah Tasker and Jonathan Berk); Ph.D. Program: David Mowery (honorable mention: Jacob Sagi).

The first Outstanding Staff Awards were given this year to Dan Sullivan, director of MBA student services; Lisa Martin, database developer; and Kurt Sarrica, supervisor of copy services.

The Haas School Outstanding GSI Awards went to Undergraduate winner: Jordan Corey and MBA winner: Robert Lowe.

The UC Berkeley Campus Outstanding GSI Awards went to Rune Aasgaard, Bokhyeon Baik, Muruvvet Celikbas, Madhur Duggar, Dirk Hackbarth, Rene Yuri Kamita, Robert Lowe, Lynelle Preston, David Tien, Sanjay Wagle, and Robert Weinberg.

The Hayase Award Winner in the Ph.D. Program was Robert Lowe.

Jinny Lee won the Kiplinger Prize which is given to an outstanding second year student with a cumulative GPA of at least 3.5 and demonstrated qualities of leadership.

The three winners of the Outstanding MBA Student Service Awards were Jinny Lee, Emily Miller, and Jon Metzler.

Finally, this year's MBA Giving 101% campaign had 82% participation and raised $38,000. The Undergraduate Feed the Bear campaign had 78% participation and raised $17,116.

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Oscar Wolters-Duran has been appointed the new director of Young Entrepreneurs at Haas (YEAH), the school's pre-college outreach program aimed at local middle and high school students, according to Richard Kurovsky, executive director of marketing and communications.

Wolters-Duran spent the past year working as the director of operations at HireRocket Inc., a Bay Area human resource software start-up firm. From 1997 to 2000, he served as a program director of St. John's Urban Institute in San Francisco, where he created and directed a nationally known suite of programs that provided over 400 Mission District youth a variety of job readiness, youth leadership, artistic, and academic opportunities. Wolters-Duran earned a BA degree in history from UC Berkeley in 1990.

Wolters-Duran succeeds YEAH's previous director, Roberta Joyner, who left Haas in April to become the national director for PARTNERS for Democratic Change, headquartered in San Francisco.

The YEAH program was begun in 1990 to stimulate interest in business and entrepreneurship -- and develop study skills -- among underrepresented youth in local communities. Haas MBA and undergraduate students serve as volunteer mentors and coaches to students in the program.

Wolters-Duran's office is in F412. His phone number is 642-7880. His e-mail is oscar@haas.berkeley.edu.

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Hal Varian, dean of the School of Information Management and Systems and Haas professor, was included as one of the "e.biz 25" in BusinessWeek's May 14 issue. Read the full text at http://www.businessweek.com:/print/magazine/content/01_20/b3732649.htm?mainwindow.

Raymond Miles, professor emeritus, was quoted in BusinessWeek's "25 Leaders for a Dangerous Time" on May 14. Read the full text at http://www.businessweek.com/magazine/content/01_20/b3732602.htm.

Sea Power & Associates, which won first prize in the Haas Social Venture Competition, was featured in the "Breakaway" section of the Wall Street Journal on May 14.

In a May 14 article in the Los Angeles Times, Severin Borenstein, the E.T. Grether Professor in Public Policy and Business Administration and the director of the University of California Energy Institute, commented on the growing debate between electricity transmission suppliers and consumers who don't want transmission lines located in their neighborhoods.

Borenstein was quoted in a May 14 article, titled "Bush's Plan Requires Increases in Future Energy Supplies," in Knight Ridder's Washington.

The team of UC Berkeley students who won the Bank of America's Affordable Housing Challenge was profiled in the San Francisco Chronicle on May 13. Read the full text at http://www.sfgate.com/cgi-bin/article.cgi?file=/chronicle/archive/2001/05/13/RE110416.DTL.

Janet Yellen, the Eugene E. and Catherine M. Trefethen Professor of Business Administration, was quoted in the San Francisco Chronicle on May 13. In the article, "Consumer Confidence Key to Economy," Yellen commented that there is a danger that consumers might decide to retrench and stop spending which would further slow the economy. Read the full text at http://www.sfgate.com/cgi-bin/article.cgi?file=/chronicle/archive/2001/05/13/BU68042.DTL.

Dean Tyson's speech before the Pennsylvania Bar Association was quoted in the Pittsburgh Post-Gazette on May 11.

Ken Rosen, the California State Professor of Real Estate and Urban Economics and the chairman of the Fisher Center for Real Estate and Urban Economics, was quoted in the Oakland Tribune in an article titled, "Economic Slowdown May Mar Oakland Renaissance" on May 9.

Paul Gertler, faculty director for the Graduate Program in Health Services Management and professor, was quoted in the San Francisco Chronicle on May 9 in an article titled, "Digital diagnosis." Read the full text at http://www.sfgate.com/cgi-bin/article.cgi?file=/chronicle/archive/2001/05/09/BU166480.DTL.

Franco Wong, assistant professor in the Accounting Group, was quoted in the Los Angeles Times on May 9 in an article titled, "Cisco's Slide Results in $2.69-Billion Loss." Read the full text at http://www.latimes.com/business/20010509/t000038896.html

Yellen was quoted in the Boston Globe on May 8, in a column by Thomas Oliphant titled, "A Wary Look Forward to a Slower Economy."

David Levine, associate professor in the Economic Analysis and Policy Group and the Organizational Behavior Group, was quoted on TechTV on May 7 on a plan to boost the wages of displaced workers. Read the full article at http://www.techtv.com/news/politicsandlaw/story/0,24195,3326272,00.html.

Borenstein was quoted in the Wall Street Journal on May 11 in an article titled, "Energy Policy Unlikely to Halt a Recession." Borenstein predicted, "California is in for a very severe downturn."

In a May 5 article in the Daily Deal, Borenstein commented on PG&E's bankruptcy filing.

Borenstein was quoted in an Associated Press newswire about the New Economy Forum on May 4.

Borenstein was quoted in a May 2 newswire from the Associated Press, commenting on Duke Energy's proposed deal with Governor Gray Davis; a May 3 Associated Press newswire, addressing the viability of Senate Bill 73x; a May 3 editorial in the Seattle Post-Intelligencer; and a May 4 article in the Des Moines Register, commenting on energy efficiency.

Borenstein was quoted in the San Francisco Chronicle (May 13), the Los Angeles Times (May 12), the Contra Costa Times (May 11), the San Francisco Chronicle (May 11), the San Jose Mercury News (May 10), the Press-Enterprise (May 9), the Contra Costa Times (May 8), ZD wire (May 8), the Sacramento Bee (May 7)

Borenstein appeared on the CBS Evening News (May 11), CNN: Live This Morning (May 8), KGO Radio (April 20), KCBS Radio (April 20), KCBS Radio (April 30), NPR's All Things Considered (May 1), KPIX TV News, 6:30pm (May 3)

Yellen was also quoted in the San Francisco Chronicle on May 5. In the article, "Recession Feared as Jobless Rate Shoots Up," Yellen commented that consumer spending is vulnerable.

Russ Winer, J. Gary Shansby Professor of Marketing and Chair, Marketing Group, prognosticated a continuing economic slump at a day-long New Economy Forum reported on by Reuters English News Service on May 4.

David Teece, the Mitsubishi Bank Professor of International Business and Finance and the director of the Institute of Management, Innovation, and Organization, testified in the Rambus case and was covered by EBN on May 2. Read the article, "Rambus says DDR SDRAM Licensees Pay 3.5% Royalty" at http://www.ebnews.com/story/OEG20010502S0055.

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The Haas NewsWire is the electronic news weekly for the Haas community published every Monday by the Marketing and Communications Office at the Haas School. Send your news, feedback, and suggestions to Haasnews@haas.berkeley.edu.

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