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Jungle Warriors, Crime Fighters Page 4
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Toward the front of the eighth floor of KC’s building was the area where the marketing staff worked. These folks worked for both of KC’s companies. The first company was Home and Office Security. The second was Executive Security. This company had two main areas of service. The first was to provide security personnel for nightclubs, casinos, concerts, large parties and sporting events around the country. One of the reasons KC chose to establish his business headquarters in Kansas City, Missouri was that it’s close to the center of the country. The locals liked to say, “No matter where you’re going, from here you’re already half way there.”
KC had figured that he could start here and expand outward in all directions versus starting on one of the coasts. And, of course, if you planned to do business nationally, it takes less time and is less expensive to get to either coast when you start in the middle. The other reason that KC started his business in Kansas City is that he got a totally unexpected sweetheart deal on his building that he couldn’t pass up. There was just something about being in America’s heartland that simply felt right.
Where the first arm of Executive Security provided service to, essentially, the domestic entertainment field, the customers of the other part of the company were corporations that conduct business overseas. Physical safety of executives traveling to foreign countries on business had become a serious concern to many of them, especially with companies that deal in sensitive products like communications, armaments, chemicals and electronic intelligence gathering hardware and software. When a CEO or other top executive from one of these companies scheduled an overseas trip, Executive Security sent an agent ahead to conduct reconnaissance and establish secure lodging and transportation for the upcoming executive visit. When the executive began his overseas business trip, another of KC’s agents would accompany him, performing bodyguard duties, supplemented by the agent who had gone first and any other personnel that they felt were needed, whom they typically hired locally on a temporary basis.
Planning. Strategy. Security. KC’s perfect trifecta.
At the front of the eighth floor were two formal offices that were smaller than KC’s office but both were appointed similarly to his. Former Marine First Sergeant Clifford Maxwell occupied the office on the left side. He had been the company gunny in KC’s OCS unit and in Vietnam, was KC’s company gunnery Sergeant where they had become good friends. Everyone around the office referred to him as Ol’ Top.
Ol’ Top was older than everyone else in the company by quite a bit but that didn’t stop him from being his old irascible self. He was accurately described by everyone as “old school” and “hard corps”, descriptions that weren’t thrown around lightly within the Marine Corps. Top had everyone’s respect not only because of his long, valor-filled service career but also because he was totally fair and impartial at all times. He was a big, well-weathered, salty old Marine who the younger guys figured would have been quite formidable as a younger man. He still maintained a rigorous workout schedule and even at his advanced age could press three hundred pounds five times. Top’s family was from a steel manufacturing background in Pittsburgh. He had enlisted in the Marine Corps during the Korean War and was highly decorated both as an infantryman and a machine gunner in Korea. Unlike the majority of his buddies, he had stayed in after the war to make the Marine Corps his career.
The office on the right side was occupied by former Marine Staff Sergeant Charlie Windsor. He had been a squad leader in KC’s platoon in Vietnam. Because of the thick glasses Charlie now wore, he was referred to as “Peeps” around the office. Charlie had joined the Marine Corps just as Marines were being deployed to Vietnam. He was raised in the rural South and came from a county that had a long history of sending young men into the Marine Corps. Within his own family, his great-grandfather, grandfather, father and two of his brothers had all been Marines. Build-wise, Charlie was on the leaner side and very athletic. He was tall and lithe. He also had a fun-loving streak that led him to play lots of pranks in his youthful days, especially during his high school years. Both of Charlie’s parents knew that he was a bright kid and had repeatedly encouraged him to pursue a college degree. But Charlie wanted to spend no more time in classrooms and at the end of summer after his high school graduation, he enlisted in the Marine Corps.
KC, as opposed to Ol’ Top and Peeps, had grown up assuming that college was in his future. All of the kids he’d hung out with in high school and his best buddies among sports teammates had all intended to go to college after graduation. To KC, that just seemed normal and natural. He had not been even aware of the possibility of not going to college until his senior year in high school during public speaking class. One of the students gave a speech on how he was going to work at an auto repair shop after graduation. KC remembered how surprised he’d been that someone would actually consider starting a career without first attending college.
College did become KC’s path and as he was nearing graduation, it became apparent that he’d be subject to the draft. Just as he’d always assumed that he would go to college, he also had thought that if he ever served in the military, it would be as an officer. He visited the Marine Corps recruiting office that was close to the college. He asked the recruiter if he would have a choice of jobs (he didn’t know the phrase “military operational specialty” at that time) after graduating from OCS. The recruiter point blank told him not to worry about that since he’d never make it through OCS anyway. KC was not fazed, he had walked out of the recruiter’s office determined that he would become a Marine Corps officer.
KC was continually fascinated by how vivid his memories and aspirations were, and by how much of what had happened in Vietnam played back in his head even now.
When KC had executed the agreement to take over the building and make it his own and go into business, he immediately invited Ol’ Top and Peeps to be full and equal partners in developing and growing the companies. The three of them constituted a good strong team. Together they oversaw the hiring, training and supervision of the employees along with sharing joint responsibility for the strategic planning of company growth and day-to-day operations.
In addition to the three partners, all their employees were also former United States Marines. Most of them had been trained for and were experienced in Force Reconnaissance or Marine infantry tactics and operations. When company security agents travelled abroad on behalf of their corporate executive clients, there were frequently other Marines available to provide information, and in some cases when needed, added security. Marines on duty in U.S. Embassies and Consulates throughout the world are very willing to assist fellow Marines like those working for Executive Security, during their off-duty hours. This was an advantage that other security contractors didn’t enjoy and Executive Security used it to the maximum possible effect.
The seventh floor of KC’s building consisted entirely of a private gym, available for use only by employees of KC’s companies. The state-of-the-art facility was equipped with every exercise machine imaginable, every kind of free weight station in existence, heavy punching bags and speed bags, two pool tables, two ping pong tables, two hot tubs, a sauna, an enormous “combat” mat and a shower/locker room.
KC had stumbled upon the opportunity to obtain the building before he had even started the companies. A buddy of his, former Captain James Kirkland, also a former Marine officer, had gone into the commercial real estate business after leaving active duty. One night over a few beers, the two were reminiscing and talking about future plans. When KC mentioned that he was interested in starting a security company, Jim said, “I know of a building you can get.”
“C’mon, a whole building? Shouldn’t I just start with renting an office?”
“Well, this old building is just north of downtown and has been sitting vacant for at least ten years. The city seized it for back taxes. It generates no income for them whatsoever. In fact, all it is, is an eyesore. It’s been vandalized
to the point where now it’s essentially a shell. That said, it could be an amazing space. The footprint is two hundred feet wide by fifty feet deep so each floor is ten thousand square feet. There’s underground parking plus an outside parking lot. Could be pretty sweet.”
“Ninety thousand square feet?! How could I even refurbish it all, and why would I want to be responsible for all of that space?” KC asked.
“Well, I think we can negotiate a deal where you won’t have to pay any taxes at all. That will save you a bundle. And as far as refurbishment costs, you never know what might be able to be worked out. Are you at least interested enough to have me explore it a little?”
“Go ahead, but I can’t see how it could make any sense at all, or even why I would want to get involved with it.”
“OK, I’m on it.”
A few weeks later Jim Kirkland called KC and said, “I’ve got some intel I think you’ll be interested in hearing. Can you meet me at Spenser’s at three?”
“See you there.”
They settled into a corner booth and the server brought them each a Boulevard Wheat draft. Jim said, “I’ve had a number of quite productive discussions and I think you’re going to like what I’ve found out. Let me lay it all out before you ask questions, OK?”
“Sure, go ahead.”
Jim opened a fat file folder and grinned like it was a Christmas present. “We can rezone the building to mixed use so that you can have retail, commercial and residential uses. I suggest you keep the ninth floor for your personal residence. You don’t have a permanent residence yet, do you?”
KC shook his head no.
“Do you know how much space your company will need?”
KC replied, “At this point, I haven’t got a clue.”
“OK, for now, just for discussion purposes, let’s hold out the seventh and eighth floors for potential occupancy by your company. We’ll plan for all retail uses on the street level. Floors two through six will be leased as office space.”
KC started to speak, but Jim held up a hand and said, “Let me keep going. I think I can answer most of your questions.”
“All right.....”
Jim continued, “I’ve spoken with the city and we have the basis for a great agreement. The final details will be laid out in a purchase and sale agreement and I’m told that the city council will approve the deal. I told you it was an eyesore they want to unload. So okay, here’s the nutshell version: The ninth floor will never have any property tax assessed against it. The seventh and eighth floors will not be taxed for twenty years. Taxes on the remainder of the building will be established as space is improved and leased. Once a lease commences, there will be no tax for the first ten years. After that, taxes will be levied at seventy five percent of the then-established rates. Don’t worry about that either. Your tenants will pay the tax on the spaces they lease. You will have a great competitive advantage in filling the space because the lessees will pay no tax for ten years.”
KC thought a moment and then said, “Thanks for your efforts, but I can’t finance the costs to build those offices.”
Jim responded, “Here’s the best part. You won’t have to. I’ve been talking to a contractor who wants to move to downtown office space. He’ll build out the leased spaces and take payment on his contracts from the rent proceeds. He wants to move his company into an entire floor. He’ll lease the second floor from you and won’t pay rent until the cost of his improvements and your penthouse apartment are paid off. He estimates that will take about five years for your place and five more for his offices. He’ll build out the seventh and eighth floors for you in exchange for another ten years of free rent on the second floor. So, you’ll receive no rent on the second floor for twenty years.”
“Hey, slow down a minute”
Holding a hand up, Jim replied, “Let me finish. There’s more. I’ve got an architectural firm that wants the entire sixth floor. The structural, electrical, mechanical and civil engineers that they typically contract with want half a floor each. So that takes care of the fourth, fifth and sixth floors. A certified public accountancy firm wants half of a floor and a group of attorneys wants half of a floor. That takes care of the third floor. I’ve got a client who wants to open a coffee shop. He’ll take two thousand square feet on the retail level. I know an insurance agent who wants three thousand square feet on the first floor. I want three thousand feet on the first floor for my real estate brokerage. My proposal is that I pay for my own tenant improvements and we execute a twenty-five-year rent-free lease with additional five-year options that I can exercise as long as I own the business occupying the space. We’ll need some lobby space for elevator access, fire exits and mailboxes. That just about leases the entire building. Now, questions?”
“What about the costs to build the third, fourth and fifth floors?”
“The contractor will do all of the tenant improvements in each leased space for five year’s rent on the space.”
“Same on the first floor?”
“Yep.”
“Jim, I appreciate it, I do. This is terrific, but I still don’t have money to buy the building.”
Jim continued on to convince KC. “The purchase and sale agreement with the city will stipulate that in exchange for your commitment to re-develop the property, the city will deed it to you. If the building is not improved and seventy-five percent leased within five years, they get it back. Five years, you can do a lot in five years. This is a dream deal, KC.”
KC finished his beer and ordered them two more. “You seem to be very good at your line of work, James Kirkland.”
“Yes, I am,” Jim smiled. “Think it through. Something like this just does not come together unless the timing and the players are all aligned. It’s coming together for you. This is a strategy and execution arrangement made with your name all over it. Within ninety days, you’ll have twenty leases signed on ninety-eight percent of the space. This whole thing is coming to you on a silver platter.”
KC simply nodded.
“Oh, one more thing I forgot to mention. The architect will design your ten-thousand square foot penthouse for free as part of the deal.” Jim closed his file folder and looked at KC.
“I’ve been told that anything that sounds too good to be true, probably is.” KC said.
“Look at it this way. Right now, you’ve got nothing. If you do nothing, you’ll continue to have nothing. If you go ahead with this, you’ll own a building with no personal risk involved and have a tremendous potential upside.”
Another beer later, they had a deal.
So, seven years later, KC sat in his eighth-floor office, pondering. His security businesses were wildly successful and both of them were growing at a rapid pace. Everything, with regard to the building and KC’s tenants, had come together just as James Kirkland had laid out. All of the retail space on the first floor had been leased and was now producing income for KC. The third, fourth, fifth and sixth floors were producing great income too. He owned his penthouse, office space and gym free and clear and paid no property taxes on any of it.
Life was good. KC was proud of the work he and his companies provided, and he enjoyed the benefits of his efforts. He drove a Mercedes S550 that was brand new and paid for. He had wanted a Porsche 911 Turbo Cabriolet, but at six feet six inches and over 285 pounds, he didn’t fit well or comfortably in a Porsche sports car. The Mercedes was solid and a perfect fit. His ninth-floor residence was fabulous and magazine-spread worthy. KC wasn’t involved in a serious romantic relationship and didn’t think he wanted to be, at least not now. There was no shortage of casual lady friends with whom he could spend his few moments of leisure time. By any form of measure, KC knew that he was very successful.
He had grown up in a middle-class neighborhood in Southern California. KC and his sister had been well cared for, never lacking adequate clothing, food or parental supp
ort. But the only cash they ever had, they had earned on their own. Lots of their friends received allowances but KC and his sister didn’t. It had been ingrained in him the idea that he would have to work for everything he got in life. KC considered this a positive. Maybe his upbringing even went so far as to instill in him the reality that the only things that one could hope for were to be provided with opportunities, the abilities necessary to pursue them, the willingness to work hard at doing so and the stubbornness to stick with it even when it wasn’t easy to do.
KC was incredibly grateful for his life. So why did it feel like there was something missing?
Chapter 8
KC’s financial security was virtually assured by the income he received from his building leases and the profits from his still-growing companies. He had a great relationship with each of his partners. His employees were loyal to him and the companies to a fault. And he was loyal to them and had great respect for all of them. His need for luxury items had been met by having a fantastic ten thousand square foot residence and his wonderful car. Still, it seemed to KC that there was something he should be doing that he wasn’t. Or, maybe there were opportunities he should be pursuing and hadn’t realized what they were. He had no idea what those things might be. That’s what KC sat at his desk pondering.
There was something he could and should be doing in addition to operating his businesses. He just didn’t know what it was. KC had explored the idea of starting a charitable foundation but decided that, somehow, he wanted whatever he embarked upon to involve his companies and the people who worked in them, not just himself. He figured that he could start a foundation anytime and hold fundraising events whenever he had spare time. What he thought he’d really like to do is to somehow expand the services that his companies provided into some kind of charitable community service project. Thinking about it, he realized that what he lacked was a “greater cause” project.