Home Construction Lending Regulatory Improvement Act of 2013 

Which is good news for home builders around the country, because the proposed "The Home Construction Lending Regulatory Improvement Act of 2013" aims to help home builders get credit for their residential developments.  

What will HR 1255 do?

Right now, federal regulations are seen as thwarting home builders in their efforts to get financing to go forward with new projects.  As a result, in March 2013 we have a small number of new homes to offer buyers while builders are not able to get new construction loans to build more new houses because banks cannot loan them money.  

If passed, this new law means American home builders would be able to get credit in order to build their projects much easier than they can right now.  How?  Among other things:

1. The new law would free qualified lenders with real estate loans making up 100% of their capital to make new real estate loans to home builders.
2. It would end the ability of the federal government to block a home builder from getting a loan on a project from a qualified lender. 
3. It would block federal agencies from forcing a lender to call in a home builder's real estate loan if it's in good standing. 
4. If the collateral on a builder's loan has lost value, a builder in good standing on its loan would be able to work with the lender to maximize the situation through workouts, etc. 

The National Association of Home Builders issued a release yesterday applauding this proposed law.  From the NAHB:

“We commend Reps. Miller and McCarthy for acting to remove a major impediment to the housing recovery by promoting legislation that will enable home builders to obtain construction loans in order to put construction crews back to work and to meet rising demand across much of the nation for new homes,” said Rick Judson, chairman of the National Association of Home Builders (NAHB) and a home builder from Charlotte, N.C. 

 You can read the full text of HR 1255 online soon (it was not available today), as well as track its progress through the House and Senate.  

For details on the budget proposal, check out the pdf online that outlines the budget in a document that has graphs, pie charts, and assorted facts and figures to support the Governor's recommendations to the Legislature.  

Note: this is biggest budget ever proposed for Florida.

Florida Families First: 2013-2014 Budget Propsed by Florida Governor Rick Scott

Introduction from Governor Rick Scott 

“Florida Families First,” our executive budget for 2013-2014, reflects not only the progress we have made in reducing the size and cost of state government but our continued focus on creating jobs, improving education and keeping the cost of living low for all Floridians. This budget will continue our progress on reducing business taxes, investing in K-12 education, making higher education more affordable and creating an environment that encourages job creation. 

In the four years before I took office, Florida lost 825,000 jobs, unemployment more than tripled – from 3.5 percent to 11.1 percent, and state debt increased by $5.2 billion. Since I took office, we have supported the creation of around 200,000 private sector jobs. Florida’s unemployment rate has declined to 8 percent. We have also eliminated over 2,300 onerous regulations, reduced government positions by over 12,000, and streamlined the permitting processes for businesses. We also reversed the 20-year trend of billion-dollar increases in state debt and paid down state debt for the first time since 1994 at a rate of $1 billion each year for the last two years. 

Over the last two years, we made the tough choices to get our economy back on track. Through cost-savings efforts, we were able to cut taxes and eliminate regulations on businesses to help them succeed and create more jobs. As a result of our work over the last two years, we have created an environment where Florida’s private sector was able to create thousands of jobs. We are also now among the best states in the country for our drop in our unemployment rate. Florida’s economy is back on track. 

The nation is taking notice of our economic turnaround. The nation’s top CEOs now rank Florida the second best state in the nation for business. We have a $24 billion trade surplus, no personal income tax, we are on our way to eliminating the business tax, and our weather and beaches attract 90 million tourists a year. The National Chamber Foundation recognized us for having the number one talent pipeline, and the National Council on Teacher Quality said Florida has the most effective teachers in the nation.

 I ran for Governor of Florida because I wanted to keep the American Dream alive for my children, my grandchildren and all future generations of Floridians. My message is simple – everything we do in government must be focused on helping families pursue their dreams by getting a great job and accessing a quality education. Growing up, my family struggled financially and we moved a lot. My parents took different jobs to afford to pay the bills. My father was a bus driver and a truck driver. My mom worked as everything from a hostess in a Chinese restaurant to a clerk at JC Penney’s. We didn’t have a fancy house or nice cars, but what I got from my parents was better than that. They taught me that the American Dream is real – and that only in this country can you start anywhere, work hard and sacrifice, and make your dreams come true. I know that the opportunity to get a quality education and find a great job is key to this success. 

In everything we do in government, I ask, “How will this impact a family making less than $50,000 a year?” That is around half of the families living in Florida today, and that was also my family growing up. This budget puts Florida Families First because it is focused on helping Florida families get a great job and a quality education. Now that our economy is back on track, it is time to invest in these two important priorities in order to drive our economic growth forward. 

My Florida Families First 2013-2014 Recommended Budget includes $18.47 billion in total funding for K-12 education, an increase of $1.25 billion, or 7.3 percent, for K-12 public schools. This increase represents per student funding of $6,799, an increase of $412, or 6.45 percent, over the current fiscal year. State funding for K-12 education totals $10.7 billion - the highest state funding level in history. Included in this historic total is $480 million to support $2,500 pay raises for Florida’s K-12 teachers, plus the cost of associated benefits. 

Additionally, my Florida Families First 2013-2014 Recommended Budget focuses on building up our state’s manufacturing sector by eliminating the tax barriers on manufacturers who buy equipment. Florida’s current manufacturing tax policy puts our state at a competitive disadvantage because most states do not force manufacturers to pay taxes on the purchase of equipment or require them to adhere to regulations for tax exemptions. We want more manufacturers to move to Florida, and this budget proposes to save manufacturers $141 million (of which $115 million is recurring state funds) so we can eliminate the taxes on manufacturing equipment. 

I am proud of what we have accomplished already in the areas of jobs and education, but there is much work left to do. As long as even one Florida family is struggling to find work or access a great education, our work is not done. This year, we will build on our successes through strategic investments that put Florida Families First.  

Image: Florida Governor's Mansion (Wikimedia Commons)

Mortgage Bankers Forecasting Good Things for Commercial Real Estate in 2013 

According to the Mortgage Bankers Association, there will be a jump in the originations of commercial and multifamily mortgages of $254 billion this year.  That's going to be higher than 2012 by 11%.  It gets better: the MBA is forecasting this to be $289 billion two years from now, in 2015. 

"2012 was a strong year for the commercial and multifamily mortgage markets, and 2013 is shaping up to continue the growth,” said Jamie Woodwell, MBA’s VP of Commercial Real Estate Research. “Despite a 21 percent decline in the volume of commercial and multifamily mortgages maturing this year, we expect origination volumes and the amount of mortgage debt outstanding will both increase. Our forecast anticipates Fannie Mae, Freddie Mac and FHA, as well as life insurance companies, will all continue to have strong appetites for making loans, and—coupled with growth in originations for CMBS—the total market will continue to expand.”

Meanwhile, MBA predicts that outstanding commercial/multifamily mortgage debt will exceed $2.4 trillion by the end of this year (2% higher than 2012) and over $2.5 trillion at year-end 2015. 

Read and download the MBA Report here.

National Association of Realtors Commercial Real Estate Forecast for 2013

Meanwhile, the National Association of Realtors released its predictions for commercial real estate sectors in the United States a couple of months back in their Commercial Real Estate Outlook (CREO).    

Among their forecasts, 2013 will see declines in vacancy rates as follows:

• 1.0 percentage point in the office market;
• 0.6 point in industrial;
• 0.2 point for retail;
• 0.1 point in multifamily.

The Realtors' Report also predicts the following in 2013:   

Office Ma​rkets

Vacancy rates in the office sector are projected to fall from an estimated 16.7 percent in the fourth quarter to 15.7 percent in the fourth quarter of 2013.... 

Office rent is expected to increase 2.0 percent this year and 2.5 percent in 2013. Net absorption of office space in the U.S., which includes the leasing of new space coming on the market as well as space in existing properties, is likely to total 21.7 million square feet in 2012 and 49.0 million next year. 

Industrial Markets

Industrial vacancy rates should decline from 10.1 percent in the fourth quarter of this year to 9.5 percent in the fourth quarter of 2013. 

The areas with the lowest industrial vacancy rates currently are Orange County, Calif., with a vacancy rate of 4.3 percent; Los Angeles, 4.4 percent; and Miami at 6.5 percent. 

Annual industrial rent is forecast to rise 1.7 percent in 2012 and 2.2 percent next year. Net absorption of industrial space nationally will probably total 93.4 million square feet this year and 89.6 million in 2013. 

Retail Markets

Retail vacancy rates are expected to ease from 10.8 percent in the fourth quarter to 10.6 percent in the fourth quarter of 2013. ...

Average retail rent should increase 0.8 percent this year and 1.4 percent in 2013. Net absorption of retail space is estimated to be 9.1 million square feet this year and 19.8 million in 2013.

Multifamily Markets

The apartment rental market - multifamily housing - is projected to see vacancy rates decline from 4.0 percent in the fourth quarter to 3.9 percent in the fourth quarter of 2013; vacancy rates below 5 percent are considered a landlord's market with demand justifying higher rents.... 

Average apartment rent should increase 4.1 percent in 2012 and another 4.6 percent next year. Multifamily net absorption is likely to be 219,700 units this year and 234,600 in 2013.

Read the National Association of Realtors' report online here.

Image: Wells Fargo Center in Miami, Florida (Wikimedia Commons)

Urban Land Institute Convenes Investors, Insurers and Public Officials to Explore Emerging Business Risks for Property in Coastal Regions 

For more information, contact Trish Riggs at 202-624-7086 

WASHINGTON (January 24, 2013) – The impact of climate change will play a greater role in shaping coastal development in the years ahead, influencing decisions on what is built and rebuilt, where and how it is built, and how it is insured and financed, according to insurance and real estate professionals speaking at a global policy and practice forum hosted by the Urban Land Institute (ULI). 

The increased frequency of property casualties associated extreme weather events, including severe hurricanes, tornadoes, floods, storm surges, and drought-fueled fires, as well as significant sea level increases are changing how property risk is valued, noted the panelists. The changes in both extreme weather events and risks are compelling the real estate industry to explore new development practices that implement adaptive measures that better protect both the built and natural environment. Increased climate risks are also raising awareness of the need for more investments to make existing buildings more energy efficient and reduce the carbon emissions associated with buildings. 

“For the real estate industry, the risk posed to urbanized coastal areas by climate change has become a global issue with dramatic local ramifications. It’s one of several drivers – along with economic, demographic and societal changes – that are necessitating a different approach to coastal development in the twenty-first century,” said ULI Chief Executive Officer Patrick L. Phillips. “Whether necessitated by reasons related to market demand or environmental concerns, rebuilding presents an opportunity to reduce risk in the future, enhance livability, restore natural resources, and increase community resilience.” 

The forum, “Resilience and Risk in Coastal Regions,” held January 16-17 in Washington, D.C., included representatives of the federal government, local governments, investors, property owners and leading members of the insurance and reinsurance industries.Among the panelists’ observations and predictions: 

• Mark-to-market pricing could be replaced by “mark-to-future” pricing that reflects external factors such as a community’s sea wall height and internal factors such as whether the building mechanical systems are elevated in a building. “This century will be about high volatility and huge uncertainty…Planning will be stepped up for events related to climate change, and buildings will be assessed for what will break.”
• Population growth and the rise of the global middle class is accelerating the urbanization of coastal cities worldwide, increasing their vulnerability to high losses of life and property damage from catastrophic storms.
• In the U.S., compromised infrastructure systems are adding to the risks faced by these rapidly growing areas. “Reinsurers and insurers are facing increasing losses around the globe, and what it boils down to is how to deal with uncertainty going forward.”
• Risk assessments are being adjusted to account for the fact that storms originating off the coast are increasingly having a major effect on geographic areas far beyond the initial landfall point, reaching places where buildings are not constructed to the same standards as those on the coast.
• Several lessons resulted from Hurricane Sandy that can be applied to urban planning for the future: 1) Critical infrastructure (such as electricity grids) should be restructured to provide more individualized service on a block-by-block basis, so whole communities do not lose power at once; 2) Land uses need to be reevaluated, in terms of which areas should not be rebuilt or rebuilt differently; 3) Consideration should be given to elevating water and sewer systems to factor in sea level increases; and 4) a new system of infrastructure financing, such as an infrastructure bank, is needed to generate funds to upgrade and build more weather-resilient systems.
• The carbon footprint of buildings will increasingly affect property values and the availability of financing. Tenants seeking to lower their own carbon emissions will choose to lease space in high performing buildings, even if the rent is more expensive. “Carbon is the new asbestos for real estate; and it’s on everyone’s balance sheet.”
• Property insurance underwriting is being driven by the desire for market share, which is causing many companies to be heavily exposed in areas inadequately prepared to withstand natural and manmade disasters. More programs are needed to incentivize cities to implement adaptation measures.
• The costs of business interruption are often far higher than those for replacing properties and repairing damage, but business interruption is seldom reflected in policy coverage. In addition to the vulnerability of their own locations, companies need to gauge the risks posed by the locations of partners such as parts suppliers. As storms become more frequent and intense, long-term economic losses will eclipse property destruction as the major threat to urban prosperity.
• More and more coastal areas are being affected not just by major storms, but by “non-event” weather that is flooding heavily built-up shorelines. A more balanced approach is needed that reflects the likelihood of future damage (and thus avoids rebuilding in the most disaster-prone areas), but which also recognizes that coastal real estate is a key economic driver. One likely outcome: greater use of the waterfront as open space, which creates value for the entire community but can also act as a protective barrier to storm surges.

Observed forum keynote speaker Fred Krupp, president of the Environmental Defense Fund: “Finding solutions to climate change is not an easy path, but a necessary path. We must keep talking about these issues, because we have paid a heavy price for our silence.” 

About the Urban Land Institute

The Urban Land Institute (www.uli.org) is a nonprofit education and research institute supported by its members. Its mission is to provide leadership in the responsible use of land and in creating and sustaining thriving communities worldwide. Established in 1936, the Institute has nearly 30,000 members representing all aspects of land use and development disciplines.

###

Reactions from economists in the news seem to have those in the know confident that the home building industry will continue to improve throughout 2013.

Recovery of the U.S. Home Building Industry - How This Helps Florida

Here in South Florida, where we've seen home builders so strapped by the bad economic climate, this is very good news.  However, these numbers currently are simply good news for the future for many, since interest rates for home mortgages haven't changed much yet.  

Right now, home buyers are looking at a 30-year, fixed-rate mortgage of 3.37% (week ending 12/20) which is lower than last year's 3.91% during the same time period.  Financing remains an issue.

Nationally, the confidence of home builders is getting more and more sunny as the National Association of Home Builders/Wells Fargo Housing Market Index reports today that builder confidence continues to rise for the 8th month in a row in the future of the U.S. market in newly built, single-family homes.  It's at 47, which is the highest it's been since April 2006.  

Costs of Home Building Skyrocketing: Lumber Up 35% in One Year's Time

Here in Florida, builders are dealing with practicalities.  Not that they aren't optimistic about Florida's future, but there are the realities they see in their work: things like rising prices in new home construction costs. 

Florida home builders are seeing lumber, drywall, cement, and other necessary costs in building a home here in Florida rising sharply.  For example, the cost of lumber has more than doubled since January 2009 and right now, lumber prices are at a six year high according to Standard and Poor's GSCI Spot Index.  

Drywall prices are higher, too, and right now there's a lawsuit alleging that 8 of the biggest suppliers of drywall for use in both home building (residential) and commercial construction have been working together to fix gypsum board prices since September 2011.  

Bottom line: there may be more home building happening in Florida and the rest of the country now and in 2013, but the costs of building those new homes are rising too which makes many in the housing industry wary since building material prices impact the number of new homes built and sold.  

There's good news in all of this data, released in the past few days, even if building materials are rising in price.  We have good reason to be optimistic about 2013 here in Florida.  

The Beacon Council is partly private, partly public, where Miami business leaders sit at the table with Miami officials (like the mayor and county commissioners) to work towards getting new investments into this area, helping existing businesses, and growing new jobs.  It's called an "economic development partnership," and the Beacon Council is one of only 31 economic development organizations in North America (that's Canada and the U.S.) that is accredited by the International Economic Development Council. 

Columbia Beer Brewers Relocation to Miami: Example of International Interest in Miami

You can read the 2011-2012 Beacon Council Annual Report online.  It provides not only incentives that Beacon Council promotes to players both in the United States and around the world, reasons that Miami is the place to be in 2013 and beyond, but concrete examples of its successes, such as the March 2012 decision by SABMiller Latin America to relocate from Bogota, Colombia to Miami-Dade County. SABMiller Latin America is one of the world’s largest brewers of beer, and it sells over 200 beer brands around the world.  

SABMiller has over 70,000 employees in more than 75 countries, and its move to Miami is a big boost to the local economy.  Why did SABMiller Latin America decide on Miami-Dade?  According to the Beacon Council report, it was the easy access offered to South American markets by the Miami International Airport combined with South Florida's skilled and bilingual work force. 

Beacon Council's Top 10 Reasons to do Business in Miami, Florida:

1. Excellent business climate with no state or local income tax.
2. Convenient direct air service from Miami International Airport to all major destinations in Latin America and the Carribbean, and more flights to the region than any other U.S. airport.
3. Ability to ship goods efficiently anywhere in the world through PortMiami, Florida's largest container port.
4. Centrally located in the Western Hemisphere and in the Eastern Time Zone, facilitating communication with Europe and the western United States.
5. More than 100 international consultates, trade offices, and bi-national chambers of commerce that support the worldwide flow of goods and services.
6. Skilled multilingual, multicultural work force drawn from more than 100 nations.
7. Strong, growing domestic economy serving more than 5.6 million South Floridans.
8. Ready access to sophisticated banking, insurance and legal services and other professional services.
9. High quality of life with a wide range of housing options, year-round outdoor recreational activities, renowned cultural institutions and four major professional sports franchises.
10. Financial and workforce training incentives available to qualified companies.  

Just how much international trade connections does Miami have, really?  

Just scroll through the list at the County Website, where the Office of Economic Development and Tourism keeps a roster of Interational Consulates with offices here in Miami.  Here are those consultates and trade offices (and their contact information) as of October 2012 located here in Miami ... and from the looks of this list, the real question seems to be "what country ISN"T interested in doing business here in Miami??"

List appears on extended post page:

Company Address City State ZIP Code Phone Fax

Brazilian Consulate and Trade Bureau 80 SW 8 Street

Suite 2600 Miami FL 33130 305-285-6225 305.285.6232

British Consulate 1001 Brickell Bay Drive

Suite 2800 Miami FL 33131 305-374-1522 305-374-8196

China Latin American Trade Center 2340 NW 27 Avenue Miami FL 33142 305-244-2708 305-636-0910

Colombia Trade Office-PROEXPORT 601 Brickell Key Drive

Suite 801 Miami FL 33131 305-374-3144 305-372-9365

Consulate of Antigua and Barbuda 25 SE 2 Avenue

Suite 300 Miami FL 33131 305-381-6762 305-381-7908

Consulate of Barbados 150 Alhambra Circle

Suite 1000 Coral Gables FL 33134 305-442-1994 305-567-2844

Consulate of Chile 800 Brickell Avenue

Suite 1200 Miami FL 33131 305-381-9864 305-379-6613

Consulate of Hungary 2655 Le Jeune Road

Suite 303 Coral Gables FL 33134 305-448-2131 305-448-3184

Consulate of Iceland 1820 SW 73 Avenue Plantation FL 33317 (954) 792-4451 (954) 792-4451

Consulate of Israel 100 N. Biscayne Boulevard

Suite 1800 Miami FL 33132 305-925-9413 305-925-9455

Consulate of Jamaica 25 SE Second Avenue

Suite 609 Miami FL 33131 305-374-8431 305-577-4970

Consulate of Malta 13829 Via Da Vinci Delray Beach FL 33446 (561) 496-6942 (561) 496-6942

Consulate of the Federal Republic of Germany 100 North Biscayne Boulevard

Suite 2200 Miami FL 33132-2381 305-358-0290 305-358-0307

Consulate of Argentina and Trade Office 1101 Brickell Avenue North Tower, Suite 900 Miami FL 33131 305-373-2161 305-373-1598

Consulate of Bahamas 25 SE 2 Avenue

Suite 600 Miami FL 33131 305-373-1399

Consulate of Belgium 216 NE 1 Street

Suite 230 Miami FL 33132 305-377-1368 305-377-2881

Consulate of Belize 370 Minorca Avenue Coral Gables FL 33134 305-666-1121 305-666-1121

Consulate of Bolivarian Republic of Venezuela 1101 Brickell Avenue

Suite 901 Miami FL 33131 305-577-3834 305-372-5167

Consulate of Bolivia 700 S. Royal Poinciana Boulevard

Suite 505 Miami Springs FL 33166 305-358-6303 305-358-6305

Consulate of Canada 200 South Biscayne Boulevard

Suite 1600 Miami FL 33131 3055791600 3055791631

Consulate of Colombia 280 Aragon Avenue Coral Gables FL 33134 305-448-8402 305-448-5558

Consulate of Costa Rica 2730 SW 3 Avenue Miami FL 33129 305-871-7485 305-522-0119

Consulate of Denmark 3107 Stirling Road

Suite 101 Ft. Lauderdale FL 33312 954-322-0065 954-322-0064

Consulate of Ecuador 117 NW 42 Avenue

Suites CU-4 and CU-5 Miami FL 33126 305-373-8520 305-539-8313

Consulate of El Salvador 2600 Douglas Road

Suite 104 Coral Gables FL 33134 305-774-0840 305-774-0850

Consulate of Finland 50 NE 29 Street Miami FL 33137 305-444-0004 305-444-9057

Consulate of France 1395 Brickell Avenue

Suite 1050 Miami FL 33131 305-403-4160 305-403-4151

Consulate of Germany 100 N. Biscayne Boulevard

Suite 2800 Miami FL 33131 3053580290 3053580307

Consulate of Grenada 201 S. Biscayne Boulevard

Suite 2800 Miami FL 33131 (786) 942-0275 (954) 538-9615

Consulate of Haiti 259 SW 13 Street Miami FL 33130 305-523-6383 (954) 977-7660

Consulate of Honduras 7171 Coral Way

Suite 102 Miami FL 33155 305-263-3281 305-263-3269

Consulate of Italy 4000 Ponce de Leon Boulevard

Suite 590 Coral Gables FL 33144 305-374-6322 305-374-7945

Consulate of Japan 80 SW 8 Street

Suite 3200 Miami FL 33130 305.530-9090 305.530.0950

Consulate of Lebanon 6600 SW 57 Avenue

Suite 200 Miami FL 33143 305-665-3004 305-666-8905

Consulate of Mexico 5975 SW 72 Street

Suite 301 South Miami FL 33143 (786) 268-4881 (786) 268-4888

Consulate of Mozambique P.O. Box 4066 Hallandale FL 30009 305-432-2407 305-937-1010

Consulate of Nicaragua 8532 SW 8 Street

Suite 270 Miami FL 33144 3052651415 3052651780

Consulate of Norway 1007 North America Way

Suite 305 Miami FL 33132 305-358-4386 305-374-4369

Consulate of Panama 5775 Blue Lagoon Drive

Suite 200 Miami FL 33126 305-447-3700 305-447-4142

Consulate of Paraguay 25 SE 2 Avenue

Suite 705 Miami FL 33131 305-374-9090 305-374-5522

Consulate of Peru 444 Brickell Avenue

Suite M-135 Miami FL 33131 305-374-1033 305-373-5388

Consulate of Portugal 1901 Ponce de Leon Boulevard

2nd Floor Coral Gables FL 33134 305-444-6311 305-444-7649

Consulate of Slovak Republic 5200 NW 67 Avenue Lauderhill FL 33319 (954) 577-1318

Consulate of Spain 2655 Le Jeune Road

Suite 203 Coral Gables FL 33134 305-446-5511 305-446-2602

Consulate of Swedan 2550 Eisenhower Boulevard

Suite 310 Fort Lauderdale FL 33316 (954) 467-3507 (954) 467-1731

Consulate of Switzerland 825 Brickell Bay Drive

Suite 1450 Miami FL 33131 305-377-6700 305-377-9936

Consulate of Thailand 2801 Ponce de Leon Boulevard

Suite 1170 Coral Gables FL 33134 305-445-7577 305-446-9944

Consulate of the Dominican Republic 1038 Brickell Avenue

1st Floor Miami FL 33131 305-358-3220 305-358-2318

Consulate of the Grand Duchy of Luxembourg 200 S. Biscayne Boulevard

Suite 5400 Miami FL 33131 305-373-1300 305-373-1303

Consulate of the Netherlands 701 Brickell Avenue

5th Floor Miami FL 33131 786-866-0482 786-866-0498

Consulate of the Phillipines 1635 S. Miami Road

Suite 3 Ft. Lauderdale FL 33316 9545242610 9545367878

Consulate of the Republic of Poland 1440 79 Steet Causeway

Suite 117 Miami FL 33141 305-866-0077 305-865-5150

Consulate of the Republic of Suriname 6303 Blue Lagoon Drive

Suite 325 Miami FL 33126 305-265-4655 305-265-4599

Consulate of Trinidad and Tobago 1000 Brickell Avenue

Suite 800 Miami FL 33131-3047 305-376-2269 305-374-3199

Consulate of Tunisia 1236 SW 21 Street Miami FL 33145 305-858-5456 305-858-5909

Consulate of Uruguay 1077 Ponce de Leon Boulevard

Suite B Coral Gables FL 33134 305-443-9764 305-443-7802

Consulate of Venezuela 1101 Brickell Avenue

North Tower #901-N Miami FL 33131 305-577-4214 305-372-5167

COPCA-Consortium for Commercial Promotion of Catalonia 2655 Le Jeune Road

Suite 810 Coral Gables FL 33134 305-442-4018 305-442-1676

EXCAL (Castilla y Leon) 28333 Bird Avenue Miami FL 33131 305-567-1866

Extenda Trade Promotion Agency of Andalucia 1500 Douglas Road

Suite 230 Coral Gables FL 33134 305-444-4647 305-444-4655

Foreign Trade Corporation of Costa Rica (PROCOMER) 5201 Blue Lagoon Drive

#863 Miami FL 33126 305-629-3581 305-629-3580

Guatemalan Trade Office 1101 Brickell Avenue

Suite 1003-SA Miami FL 33131 305-373-0322 305-373-0244

Haiti Trade Center 8325 NE 2 Avenue

Suite 205 Miami FL 33138 305-759-4795 305-759-4751

Hong Kong Trade Development Council (Winchell Cheung) 601 Brickell Key Drive

Suite 509 Miami FL 33131 305-577-0414 305-372-9142

Honorary Consulate of Albania 4077 NE 5 Terrace Ft. Lauderdale FL 33334 9545373571 9545373593

Honorary Consulate of Austria 1454 NW 17 Avenue

Suite 200 Miami FL 33125 305-325-1561 305-325-1563

Honorary Consulate of Czech Republic 3111 Stirling Road Ft. Lauderdale FL 33312 954-985-4127 954-985-4176

Honorary Consulate of Republic of Macedonia P.O. Box 222094 Hollywood FL 33022 (954) 249-0514 (954) 923-4346

IVEX (Valencia) 777 Brickell Avenue

Suite 703 Miami FL 33131 305-530-5434 305-520-5436

Japan Trade Office 10200 NW 21 Street

Suite 101 Miami FL 33172 305-477-5556 305-477-5656

KOTRA: Korea Business Trade Center, Miami One Biscayne Tower

Suite 3770 Miami FL 33131 305-374-4648 305-375-9332

Malaysia Trade Center 703 Waterway

Suite 105 Miami Fl 33126 305-267-8779 305-267-8784

Peruvian American Trade Center 1940 NW 82 Avenue Miami FL 33126 305-728-6272 305-639-9625

Prochile - The Chilean Trade Commission 800 Brickell Avenue

Suite 900 Miami FL 33131 305-374-0697 3053744270

PROEXCA - Canary Island Trade Office 2655 Le Jeune Road

Suite 1114 Coral Gables FL 33134 305-446-2087 305-446-2088

ProMexico Investment and Trade 444 Brickell Avenue

Suite 450 Miami FL 33131 305-415-9360 305-415-9361

Spain Trade Office (Trade Commissioner) 2655 Le Jeune Road

Suite 1114 Coral Gables FL 33134 305-446-4387 305-446-2602

St. Vincent & the Grenadines Association of Florida 4275 NW 56 Drive Coconut Creek FL 33073 954-648-4658

Taipei Economic and Cultural Office 2333 Ponce de Leon Boulevard

Suite 610 Coral Gables FL 33134 305-443-8917 305-442-6054

Taiwan Trade Center Miami 5301 Blue Lagoon Drive

Suite 150 Miami FL 33126 305-266-9191 305-266-8787

Thai Trade Center 6100 Blue Lagoon Drive

Suite 100 Miami FL 33126 786.388.7888 786.388.7999

The Galician Institute for Economic Promotion (IGAPE) 1221 Brickell Avenue

Suite 1540 Miami FL 33131 305-358-5988 305-358-6844

Mortgage Rates Near Record Lows As Home Construction Builds Up Steam

MCLEAN, Va., Oct. 18, 2012 /PRNewswire/ -- Freddie Mac (OTC: FMCC) today released the results of its Primary Mortgage Market Survey® (PMMS®), showing fixed mortgage rates edging slightly lower with the 30-year fixed averaging 3.37 percent, just above its all-time record low of 3.36 percent, and the average 15-year fixed dipping to a new all-time record low at 2.66 percent.

News Facts

30-year fixed-rate mortgage (FRM) averaged 3.37 percent with an average 0.7 point for the week ending October 18, 2012, down from last week when it averaged 3.39 percent. Last year at this time, the 30-year FRM averaged 4.11 percent.

15-year FRM this week averaged 2.66 percent with an average 0.6 point, down from last week when it averaged 2.70 percent. A year ago at this time, the 15-year FRM averaged 3.38 percent.

5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.75 percent this week with an average 0.6 point, up from last week when it averaged 2.73 percent. A year ago, the 5-year ARM averaged 3.01 percent.

1-year Treasury-indexed ARM averaged 2.60 percent this week with an average 0.4 point, up from last week when it averaged 2.59 percent. last week. At this time last year, the 1-year ARM averaged 2.94 percent.

Average commitment rates should be reported along with average fees and points to reflect the total upfront cost of obtaining the mortgage. Visit the following links for Regional and National Mortgage Rate Details and Definitions. Borrowers may still pay closing costs which are not included in the survey.

Quotes

Attributed to Frank Nothaft, vice president and chief economist, Freddie Mac.

"Mortgage rates remained more or less unchanged this week as home construction builds up steam. Construction on single-family homes jumped to an annualized rate of 11 percent in August, the strongest pace since August 2008. Over the first nine months of the year, single-family starts were 23 percent higher than the same period last year. Moreover, homebuilder confidence rose for the sixth consecutive month in October to the highest level since June 2006, according to the NAHB/Wells Fargo Housing Market Index."

Get the latest information from Freddie Mac's Office of the Chief Economist on Twitter:@FreddieMac

Freddie Mac was established by Congress in 1970 to provide liquidity, stability and affordability to the nation's residential mortgage markets. Freddie Mac supports communities across the nation by providing mortgage capital to lenders. Today Freddie Mac is making home possible for one in four homebuyers and is one of the largest sources of financing for multifamily housing. www.FreddieMac.com.

SOURCE Freddie Mac

For further information: Chad Wandler, +1-703-903-2446, Chad_Wandler@FreddieMac.com

 The financial and other information contained in the documents that may be accessed on this page speaks only as of the date of those documents. The information could be out of date and no longer accurate. Freddie Mac does not undertake an obligation, and disclaims any duty, to update any of the information in those documents. Freddie Mac's future performance, including financial performance, is subject to various risks and uncertainties that could cause actual results to differ materially from expectations. The factors that could affect the company's future results are discussed more fully in our reports filed with the SEC.

Orlando Economic Development Information

In Orlando, located in Central Florida, there is the Metro Orlando Economic Development Commission where economic indicators for that area are studied and reported on each month.  You can download its overview of September 2012 Economic Indicators for Metro Orlando online for free. 

For those interested in commercial real estate, the web site also provides things like this:

• Orlando Office and Industry Market Statistics
• National Industrial Comparison - Metro Orlando
• National Office Comparison - Metro Orlando
• National Retail Comparison - Metro Orlando

Miami - Dade Economic Development Information

The City of Miami has its office of Economic Incentives which provides lots and lots of information about the Greater Miami area as well as information regarding incentives that the City of Miami offers to those interesting in doing business there, such as its New Markets Tax Credit (NMTC) program, where "... low interest, private capital [are steered]  into distressed census tracts to capitalize hard to fund commercial and residential projects."

Miami-Dade County also has its Department of Regulatory and Economic Resources which hosts the Economic Development and International Trade website.  Economic trends are reported on a quarterly basis (not a monthly report like Orlando provides) and these are also offered for free as a downloadable pdf document (get the Second Quarter 2012 Report for Miami-Dade here). 

Miami-Dade also offers an overall economic forecast for 2012, published March 2012 by Chief Economist Robert Cruz.  Here, information including the following is provided:

"Except for office market, commercial real estate in Miami-Dade starting to show signs of improvement: vacancy rates down, lease rates up, and positive net absorption in 2011."

"In 2011 the value of total trade was up 19.5% vs. 2010. 2011 saw continuing diversification in value of trade among trading partners (+Europe, +Asia)."

Regional and State-Wide Sources of Economic Information for Florida Commercial Real Estate

There are other sources of economic information and analysis of Florida's economic future as well as details about its economy, not only at a local level as these three sites demonstrate, but also at the regional and state-wide levels. 

What are they describing?  Florida has suffered economically for the past few years, but things are not as bad now as they were a couple of years ago for most Florida industries and economic sectors - and there are optimistic opinions that we're going to see a stronger and more stable Florida economy in 2013 and beyond. 

However, some regions of Florida do look to be bouncing back and offering more opportunity than others, as for example the Orlando area especially its Lake Nona region.  Within the state, some areas are indeed doing much better and offering more to the commercial real estate investor than others do.  If the rest of Florida follows the lead of Lake Nona, then the future will be very bright, indeed.

Florida Hospital Unveils Historic New Vision for Women's Health Care in Central Florida

Research show women's lifespan is not growing as fast as men's

ORLANDO, Fla., Sept. 18, 2012 - New research shows that the lifespan of women is not growing at the same rate as the lifespan as men. Florida Hospital believes that now is the time to put the focus back on women's health. On the front lawn of the hospital, Florida Hospital announced a renewed commitment to women's services that will span across Central Florida with three new buildings, additional services, world-class physicians and an innovative health and wellness platform to provide women with tools to live longer, healthier lives.

"Florida Hospital has been providing services to women for more than 100 years across our system and it has always been a part of who we are," said Lars Houmann, president and CEO of Florida Hospital. "But we know we can do more. Now is the time for us to step forward and put the focus on women's health."

As part of the commitment to extend women's health services to all women through Central Florida, Florida Hospital unveiled a comprehensive plan that is the largest commitment to women's services in Florida Hospital history.

"As a physician, I saw first-hand the stress women put on themselves and the types of unique health challenges women face on a daily basis," said Dr. Monica Reed, senior vice president of Florida Hospital. "We need to create new services for women that will bring innovative and personalized medical care together."

The three new buildings will house comprehensive services for women and expand on current services already available at Florida Hospital. The Celebration Health Women's Institute is a four-story 80,000-square-foot building that will house a variety of women's health services including breast care, radiation and oncology, gynecology and obstetrics. The Winter Park Women's Health Pavilion, a two-story building opening in fall of 2013, will be a comprehensive one-stop boutique center for women's health and wellness and also offer a variety of medical services. Florida Hospital Orlando announced plans for a new women's tower, the Florida Hospital Orlando Women's Pavilion, a 12-story patient tower that will feature more than 300 patient beds when it is complete in 2015.

"Women experience a variety of health challenges that can affect the entire home and family unit," said Marla Silliman, senior vice president of Florida Hospital. "We also know women are extremely busy and are more likely to put their own health concerns on hold. Part of our commitment will include a unique wellness and prevention program, designed just for women."

New mom Sarah Doherty knows from first-hand experience the importance of having access to high-quality medical care, for both her and her new baby.

"As a new mom of a one month old daughter, my life has completely changed," said Doherty. "I had a very difficult end to my pregnancy and spent eight weeks in the high risk OB unit at Florida Hospital on bed rest. The hospital's commitment to treating the health needs of women is of great comfort to me. I know Florida Hospital will be here to care for my daughter throughout her entire life."

Florida Hospital also announced the kick-off of Healthy 100 Women. Florida Hospital is on a journey to inspire the entire Central Florida community to live to a Healthy 100 years old. Healthy 100 Women will allow women to help shape what services and programs should be included as Florida Hospital embarks on this journey to expand women's health care services.

Lake Nona is a 7,000-acre master planned community within the city limits of Orlando that will be home to world-class education, medical and recreational facilities, a medical city, diverse workspaces, retail centers, entertainment choices and residential options for all types of people seeking the best the city has to offer with all the conveniences of living within a dynamic, vibrant community. Lake Nona is being developed by Lake Nona Property Holdings, owned by Tavistock Group, a private investment company with a broad portfolio of assets around the world.

Lake Nona Development Booming

This week, the Orlando Business Journal reported on how popular Lake Nona really is these days: in this bad economy, 300 new home sales were made in 2012 in the Lake Nona neighborhoods of Laureate Park, Lake Nona Golf & Country Club, Village Walk and Water’s Edge: the best sales record for Lake Nona since 2005.  For more details, check out the info at the Lake Nona blog.

Commercial development is looking good for Lake Nona, too. 

It's not just residential development that is booming -- some would argue that the residential boost in 2012 is following on the coattails of commercial development that is already in place (Medical City) or is in the process of being completed.  Consider:

1. In August 2012, Valencia College ’s Lake Nona campus at Medical City opened for students
2. In March 2012, construction began on a 79,000-square-foot Publix-anchored shopping center.
3. Additionally, there are the new and expanding medical facilities in Lake Nona's Medical City:

•Nemours Children's Hospital at Lake Nona Medical City will open at a cost of $380 million next month.
•VA Medical Center at Lake Nona, 1.2 million-square-foot medical center costing more than $650 million expected to be open for patients in mid to late 2013.
• Orlando Regional Medical Center adding a 10-story patient tower at a cost of $300 million; scheduled to be complete in late 2015.

For more information regarding Lake Nona, leave a comment or visit the Lake Nona website.

Commercial Real Estate Developers Taking Advantage of Cheap Land and Foreign Investment

Here in Florida, savvy real estate developers are building condos - condos are very popular here in South Florida, especially, given our scenic attractions including all those miles of beautiful oceanfront beaches. Lots of condos, in all shapes and sizes.

How are they doing this? With lots of foreign investment funding.

As we have discussed in prior posts, one of the big advantages of having foreign investment dollars for condominium projects in particular is that the international investor often comes with experience in financing real estate that is much, much different that the American model. They pay up front: condo developers see foreign investors willing to pay as much as 80% of the total before the build is done.

Meanwhile, all across the country there are smart land developers who are looking around for great deals on land that is pristine - undeveloped land can be bought at bargain basement prices these days in much of the country. For the first time in a long time, land is attractive again, to developers and builders.

US Housing Crisis Losses of $13 Trillion Almost Match GDP for 2011 Dollar for Dollar Per Expert Analyst

This week, during a speech at the Mortgage Bankers Association meeting in Dallas, a representative of the fraud analysis firm Interthinx told the crowd of bankers that Interthinx studies revealed that the country's housing industry crisis has piled up $13 trillion in costs to the nation's economy, if various areas are combined: the litigation expense, the bailouts, the mortgage-backed securities claims.

Here's the thing: in her speech, Interthinx's Ann Fulmer pointed out that this $13 trillion almost jives, dollar for dollar, with the Gross Domestic Product (GDP) for the United States in 2011 (which was $15 trillion).

Where did she come up with $13 trillion? Interthinx has the following:

• $8,000,000,000,000.00 (yes, that's the right amount of zeroes: we're talking TRILLIONS here, not millions or billions) in lost homeowner equity
• $2,000,000,000,000.00 in mortgage industry losses (ForeclosureGate)
• $3,000,000,000,000.00 in losses to the federal government (and presumably state governments, too) along with U.S. taxpayers

So, is the worst part of the housing crisis behind us?

Are things getting better, or are we in the eye of the hurricane, where the winds lessen and things seem brighter to those who aren't aware that the hurricane still has lots of fury to bring?

We'll know soon enough -- but one thing that gives hope: smart real estate developers aren't just setting back and fretting: they are taking advantage of cheap land, cheap construction costs, and foreign money to build projects like condominium towers in South Florida. It's this kind of determination, to find a way to success and move forward, that is the real and solid sign that we're putting the crisis behind us.

Genting's Loss May Be Seminole Indian Tribe's Gain?

That's right: remember all the controversy over the casino being proposed by Genting in their new Resorts World Miami project?  So many critics challenged having a new, big gambling mecca in the Miami area.  It was a big deal last year.  Tallahassee law makers did not pass the necessary legislation to allow Genting (and other casino owners) to offer gambling in their establishments, so Resorts World Miami has been radically reduced from its original scope. 

Well, now the Seminole Indian Tribe has announced that it has sought approval from the Bureau of Indian Affairs to build a 20 story hotel and entertainment complex which would include a swanky casino with a goal toward this new project becoming a national draw for gamblers across the country.

The tribe plans on using land it already owns:  45 acres setting next to its existing Coconut Creek casino.  By declaring this tract as its sovereign land, the Seminoles can build the new project while taking the casino off the government tax rolls since it would set on tribal land. 

Reports are that the Seminole Hotel and Casino would invest the local area with lots of new jobs: around 1090 people would find permanent employment here.  They would work in the 1000 room hotel as well as the casino, the 2500 seat theater, or any number of shops and restaurants that are included in the overall plan. 

Big incentive for the Powers that Be to allow the Seminole Tribe to build this thing:  this hotel is expected to put  $76.8 million into the local economy each year.  That's sweet talk to many people out there.

Once built, the new Broward County hotel complex would be over twice as big as the Seminole Tribe's Hard Rock Hotel in Hollywood, Florida.  (Yes, the Seminoles are not new to this ball game.)  This new hotel complex would all be one of the biggest in all of South Florida: and South Florida already has a lot of nice and very big entertainment - hotel complexes for American tourists and foreign visitors to enjoy. 

Will it happen?  Too soon to tell. 

The Seminole Tribe is serious about the project, but there are lots of things to consider and hurdles to jump before any groundbreaking ceremony.  Traffic infrastructure needs are one problem to solve.  On the other hand, construction costs right now are low and that's a benefit in a big hotel build which might not exist in a few years. 

However, from a land use perspective, the Miami Design District has also provided an example both to South Florida and other parts of the country on how to plan and develop a mixed-use community that benefits not only its commercial and residential residents but the area economy as well.

First on all, Miami's Commissioners okayed land development group DACRA's $312 million plan to revamp the current Design District into much more: there will be new plazas, cafes, stores, and both hotels and residential housing in the new District.  Second, Miami's use of land in its Design District has already been an example to a number of municipalities over the country as a way to boost their local urban areas.

Design Districts aren't a new concept. For example, Waikiki, Hawaii, has had its own Design District since the mid-1970s.  However, for places like Hartford, Connecticut, the design district of Miami has been something to consider as its own North Park Design District mixed use land plan was recently created.

2012 - Amending the Design District in Doral, Florida

South Florida is seriously considering the mixed-use land plan seen in Miami as a way to ignite economic growth in urban locales.  This month, the City Council of Doral made national news when it voted on the "Doral Design District Core" and its application to 185 acres of land inside the city's design district. Doral already created a Design District back in 2010 (you can read the Master Plan online): now, an Ordinance has been passed to amend that 2010 concept.

The Doral vision is to create a Design District from a place that currently houses lots of offices, warehouses, and showrooms into a pretty place that will be easily accessed by foot traffic and particularly inviting to the design industry.  The City leadership envisions a place that is " ... the mecca for designers, artist(s), architects, boutique retail stories, galleries and restaurants."  There will be places to live within the Doral Design District, too. 

For more, check out the website here. 

It's a story about a mitigation bank.  Mitigation banks are not liked by everyone, in fact they are pretty controversial because of the risks involved regarding natural resources and in particular, the Florida wetlands. 

What are mitigation banks? 

They can be found in a handful of states across the country, having been created by the federal government (read the Federal Rule here) to protect wetlands and streams in order to shelter, encourage, and promote things like wildlife habitats, water quality, and diverse ecological areas or regions.  These mitigation banks also comport with the Clean Water Act's designated purpose of cleaning up and protecting the quality of American waters.

Mitigation banks are currently overseen in Alabama, California, Colorado, Florida, Georgia, Illinois, Indiana, Louisiana, Mississippi, Montana, New Jersey, North Carolina, Virginia, Texas, and West Virginia. 

They are located in environmentally vulnerable, rural areas and they are used to protect and promote that environmental quality in order to balance against land development that is taking place in the state. 

Here in Florida, these land banks are protecting Florida wetlands (Everglades) and their related uplands. 

The news is that Florida's environmental agency has looked at the Cook County land bank and okayed the request to up the value of the Highlands Ranch Mitigation Bank. FDEP reasons that this tract has been a pilot project for them, where they tested out rules to apply to Florida wetlands and now, with uniquely strict oversight, they are going to value the land by actual environmental restoration on the land itself.  They are looking at specific criteria, like confirming the number of trees on the tract as well as how high those trees have grown. 

Critics are arguing that this is just going to end up hurting Florida in the long run, because these values are overreaching and in the end, developers are going to profit while the wetlands are going to lose.  

What is the Highland Ranch Mitigation Bank?

The Highlands Ranch Mitigation Bank is a tract of land in Clay County, Florida, that totals 1575 acres which was purchased by a group of investors for around $15,000,000 in 2008.  Before this, a private equity company had estimated the potential value of this land to be around $116 million.  That's right: about ten times what they paid for it back then.

A state administrative law judge valued the land at 200 state agency wetland-destruction credits.  State agency reviews did so, as well.  However, a couple of private companies disagreed, arguing that Highlands Ranch Mitigation Bank should be valued at 688 credits, and the FDEP has listened to their take on things.

Result: somewhat splitting the baby, FDEP has found the value to be at 425 credits.

What does this mean?  We should be looking for other reevaluations of Florida's mitigation banks in the future.  

Florida has a lot of strategic corridors - Lake County isn't reinventing the wheel here. In fact, from a real estate investment and development perspective, Florida is fast becoming a spider web of corridors each with their own incentives and advantages - and a sign that Florida is fighting to win back its economic strength.

Consider these Florida corridors that land planners and real estate developers must coordinate with and consider in their work, all new or just getting going in 2012:

1.  The Florida Wildlife Corridor

From its website:  "The Florida Wildlife Corridor aims to protect and restore connected landscapes throughout the Florida Peninsula to create a viable corridor from the Everglades to Georgia. The corridor addresses the fragmentation of natural landscapes and watersheds from the Everglades ecosystem north. Contributing to the fragmentation problem is the disconnect between the perceptions of Floridians, and the real need to keep natural systems connected. The Florida Wildlife Corridor is positioned to mend the perception gap through an education and awareness campaign that demonstrates the connection between the landscapes and watersheds. If we show Floridians the panthers, bears, native cultures, ranchlands and rivers and how they are all connected, then they can help us make the Florida Wildlife Corridor a reality."

Sponsors include Disney; National Geographic; Everglades Foundation; Patagonia; and many more (see the online list of sponsors and partners here). 

2.  Florida's High Tech Corridor

From their website:  "The Florida High Tech Corridor Council (FHTCC) is a regional economic development initiative of the University of Central Florida (UCF), the University of South Florida (USF) and the University of Florida (UF) whose mission is to grow high tech industry and innovation in the region through research, workforce and marketing partnerships.

"The Florida High Tech Corridor Council’s numerous entrepreneurial initiatives support small businesses and growing companies alike. Growing companies can apply for specific business help through GrowFL, a statewide initiative that provides just-in-time technical assistance for second-stage companies. Using tools like the Florida Virtual Entrepreneur Center, visitors can find the resources they need to start, expand or relocate a business. Even the university and community-based incubators aim to nurture start-up companies to grow into stable enterprises that contribute to the local and regional economy."

3.  Northwest Florida Transportation Corridor

From their website:  "The Northwest Florida Transportation Corridor Authority (NFTCA) continues in our mission to improve mobility, to enhance traveler safety, to provide for hurricane evacuation routes, and to promote economic development in the northwest Florida region. We are currently updating our Master Plan which is expected to continue to progress through Fall of 2012. To learn more about the plan update and view upcoming public involvement opportunities, please visit the Master Plan page and the Calendar of Events."

4.  The South Florida East Coast Corridor

From their website:  "The South Florida East Coast Corridor (SFECC) Study proposes reintroducing passenger service along an 85-mile stretch of the Florida East Coast (FEC) Railway corridor between downtown Miami and Jupiter. Such service will connect the hearts of 28 densely-populated municipalities in eastern Miami-Dade, Broward and Palm Beach Counties. It will improve north-south mobility, encourage stronger east-west connections, promote redevelopment and revitalization, and enhance freight movement.

"Reinstating passenger service in the FEC corridor will provide an efficient option to driving on congested streets and highways and a much-needed integrated transportation link essential for smart growth management, sustainability and a vital economy.

"This corridor will serve as the spine of a regional intermodal network, connecting to the existing bus systems and rail transit systems including both Tri-Rail and Metrorail. It will also integrate with the various transit systems including the new Miami Trolley, the proposed Wave in downtown Fort Lauderdale and the proposed Central Broward East-West Connection. It links to the three major airports, Miami International, Fort Lauderdale-Hollywood International and Palm Beach International; the four regional airports within the tri-county area; and to the region's seaports, PortMiami, Port Everglades and Port of Palm Beach.

"Benefits of this study include expanded freight capacity; reliable travel time savings; improved service for the transit dependent population; enhanced intermodal connectivity for riders; improvements in land use; sustainability; more job opportunities; and an enhanced quality of life for South Florida's current and future residents and visitors."

5.  Future Corridors Program

As we discussed last month, the Future Corridors Program has a goal of creating a statewide transportation corridor system and it's looking to outside, third party experts to interview folk like those at the various Water Management Districts for their input.  Not everyone is pleased with this approach, of course.

Below, an image of the watercolor map of the proposed Florida Wildlife Corridor:

It's a big chuck of land that sits in Lake County, next to the Orange County line and its advantages include being near to U.S. Highways 27 and 192, as well as the Florida Turnpike and State Road 429. 

The land owners are putting up around 75% of the land use study costs and Lake County will fund the rest. 

Their hopes?  A development plan that reaches far into the future, as well as into the past.  Lake County has been pondering developing this area since 1999 or thereabouts, but now there's concrete movement forward to set up this region of Lake County as the next Medical City growth area and they're pointing to the east side of Orlando and what's happened there since the year 1999 as what Lake County would like to see happen to these citrus groves located in a great strategic area for development. 

If Lake County is right, then their new economic plan will only add strength to the five county area that makes up a strategic economic corridor in Central Florida.  It's also expected to fortify Lake County's tax base by bringing in other sources of taxable income other than the property tax bases that makes up most of Lake County's tax revenues these days.

Meanwhile, Lake County already promotes three strategic corridors within its confines, here as described on the Lake County business attraction section of its website:

1.   Florida Energy and Aerospace Technology Park

"The Florida Energy & Aerospace Technology Park (FEAT Park) is a master planned high tech commerce center located at the intersection of Florida’s Turnpike and County Road 470. The FEAT Park is over 3,000 acres, all of which is owned by the City of Leesburg. The city has planned this park to be a job creation epicenter for Central Florida. The FEAT Park is strategically concentrated on the growth of Aerospace and Energy industry sectors. This park is the ideal location for the development of light sport aircraft companies."

2. Health and Wellness Way

"On a regional scale, South Lake County is endowed with unique assets upon which Lake County is planning to create a regionally significant employment center. The "Wellness Way" corridor includes over 16,000 acres located in the "Golden Triangle," inside of Interstate-4, the Florida Turnpike and Hwy 27. The corridor is enhanced by State Road 429 and the soon to be completed Wekiva Parkway. Immediately to the east of the corridor is Horizon's West, a master planned community in Orange County that will integrate seamlessly with the Wellness Way. Orlando International Airport is just 30 minutes away."

3.  Mt. Dora Employment Center

"The recent approval of the Wekiva Parkway, the final leg of the outer beltway around the City of Orlando, will create significant economic development opportunities in Lake County. The new extension will link Toll Road 429 in Apopka to I-4 and Toll Road 417 in Sanford. A significant portion of the Wekiva Parkway will travel through Lake County and will include an extension linking the Parkway to SR 46, US 441 and Mt. Dora."

Miami's Judge Gold has been making lots of news, in fact. 

Earlier this month, he issued a federal court order that requires the Miccosukee Indian Tribe to fork over its financial records to the federal investigators that are checking into claims that the Miccosukee Indians have not reported income tax on millions of dollars in gambling profits coming to members of the Miccosukee Indian Tribe. 

The Tribe's argument that it did not have to honor the IRS subpoena because it was a separate, sovereign nation was not victorious with the court. 

But that wasn't the only July 2012 ruling of Judge Gold that is making national headlines. 

This week, Judge Alan Gold in a rather short and sweet order (it's only three pages long) okayed the $880 million dollar phosphorus clean up plan proposed by the EPA (Environmental Protection Agency). 

News pundits are reporting that Judge Gold may have just ended around 20 years of litigation with this single order. 

What he's done is okay the EPA to review and approve permits in a number of different projects all targeting the problem of phosphorus pollution in the River of Grass.  Which brings us back to the Miccosukee Tribe of Indians. 

The Miccosukee were one of a number of parties concerned with protecting the natural resources here in Florida, and the tribe joined with the Friends of the Everglades in filing a federal lawsuit several years ago against the EPA alleging that the federal agency was violating federal law by not cleaning up the Everglades pollution problem, a byproduct of the sugar industry here.

The Friends of the Everglades have issued an opinion statement that the proposal approved by Judge Gold is not going to work.  Read it here. 

The Miccosukee Indian Tribe has not issued a formal statement, yet (at least not that we could find).  On either newsmaking order of Judge Gold's this month.  Stay tuned. 

In November 2012, Florida will decide whether or not to amend the state constitution with proposed Amendment 4.  As for what that might mean to individual Floridians as well as Florida business interests and those developing real estate and investing in Florida land, the highly respected FloridaTaxWatch research group has determined that the proposed amendment is a good idea here, in our news release of the week (read their full abstract online here):

TaxWatch Analysis Shows Amendment 4 Would Create Jobs and Spur Economic Activity in Florida

TALLAHASSEE— A proposed Constitutional Amendment on the November 2012 ballot would create Florida jobs, grow Florida’s Gross Domestic Product, and increase the personal income of Floridians, if passed, according to an independent economic and fiscal analysis of the amendment by Florida TaxWatch, the nonpartisan, nonprofit public policy research institute and government watchdog. Amendment 4, a legislatively proposed amendment to the Florida Constitution that would make changes to the property tax system, was analyzed by a new Florida TaxWatch report, Fiscal and Economic Impact of Amendment 4.

Dominic M. Calabro, President and CEO of Florida TaxWatch, explained: “As an integral part of our mission to educate taxpayers and citizens, Florida TaxWatch has been conducting analyses of the likely impacts of proposed Constitutional Amendments for more than three decades, and I know that this independent analysis will help Floridians judge the potential benefits of this Amendment.”

Amendment 4 would take effect on January 1, 2013, and proposes:

• an additional homestead exemption for first-time Florida homebuyers, equal to 50 percent of the Just Value of a property up to the median Just Value of a homestead property in that county, which phases out over 5 years by reducing by 20 percent each year;

• a reduction in the nonhomestead maximum annual Assessed Value increase cap from the current 10 percent (on non-school levies) to a new level of 5 percent and an extension of nonhomestead Assessed Value caps through the 2022 tax year (which also does not apply to school levies) and;

• providing legislative authority to eliminate the Save Our Homes “Recapture Rule.”

Using the best available data and an advanced econometric analysis, Florida TaxWatch estimates that the passage of Amendment 4 would result in the creation of 19,483 private, non-farm jobs over the 10-year period of the analysis (2013-2022), that Florida GDP would increase by approximately $1.1 billion, and personal income would increase by more than $5.3 billion.

Jerry D. Parrish, Ph.D. Florida TaxWatch Chief Economist, Executive Director of the Center for Competitive Florida, and author of the study, explained that, “The increased economic activity estimated by the dynamic econometric model used in this analysis is the result of the savings from Amendment 4 being distributed throughout the economy. From an economist’s standpoint, these findings are not surprising because the proposed Amendment 4 would reduce uncertainty for both personal and business investment, and when individuals and businesses can better estimate their future costs, including property taxes, they are more likely to invest. Basically, reducing the uncertainty of potentially large property tax increases will increase investment in both nonhomestead residential and commercial property in Florida, and the econometric model bears that out.”

The Florida TaxWatch analysis also estimates that between 319,861 and 383,810 additional home sales would occur due to the effects of Amendment 4 during the 10- year period following its passage and implementation.

According to the report, “the additional home sales attributable to Amendment 4, over and above those estimated to have occurred in the absence of Amendment 4, are due to the effect of the additional homestead exemption, the additional income for Floridians, and the population growth predicted by this analysis.

Additionally, there are effects from both the nonhomestead exemption on additional residential sales and the number of homes that are purchased by persons who have sold their homes and moved up in size or downsized.”

One important effect of Amendment 4 that does not directly affect the estimates in the economic analysis but is worth noting is the effect of the nonhomestead property tax cap reduction (from 10 percent to 5 percent) in reducing uncertainty. Property tax caps have two main economic effects. First, they reduce uncertainty for personal and business investment, and when businesses can better estimate their costs, including property taxes, they are more likely to invest, so reducing the uncertainty of potentially large property tax increases will increase investment in both nonhomestead residential and commercial property in Florida. However, property tax caps can also reward early investors and give them an advantage over later investors, which could affect investment timing decisions, by potentially moving them to earlier periods, at the expense of future investments.

Florida TaxWatch is a statewide, non-profit, non-partisan research institute that over its 32-year history has become widely recognized as the watchdog of citizens’ hard-earned tax dollars. Its mission is to provide the citizens of Florida and public officials with high quality, independent research and education on government revenues, expenditures, taxation, public policies and programs and to increase the productivity and accountability of Florida state and local government. Its support comes from homeowners and retirees, small and large businesses, philanthropic foundations, and professional associations.

Today, the State of Florida owns and oversees management of approximately 3.8 million acres of uplands. This acreage includes 500,000 acres of conservation easements. Almost all of this state land is used for either recreation or conservation purposes, uses that are constitutionally protected by the Florida Constitution in perpetuity. 

When the State of Florida decides that a parcel of land is no longer needed by the State, the land is first offered as a lease to state agencies, state universities, etc., and if they decline, then the first offer to sell the land is made to local governments.  If those local governments don't buy the tract, then the State will offer the property up for public sale or bid.

Here are 10 things that remain true today for those interested in Florida land and real estate:

1. Florida has over 3.8 million acres of conservation land, leased by the Division of State Lands (Division) to state agencies or local governments to oversee and manage as things like parks, preserves, forests, or recreation areas.
2. The Florida Division of State Lands also leases non-conservation lands to state agencies and local governments for things like college campuses, state prisons, and government office buildings.
3. Land use or land management plans are legally required for uplands under lease from the State of Florida and for both conservation and non-conservation lands.
4. Land use requirements will not require the same thing under Florida law for conservation and non-conservation land. 
5. There is a one year time period for conservation property to have a land management plan submitted (from time of lease) and approval may be needed by the Department of Environmental Protection, a Florida water management district, the Florida Natural Areas Inventory and/or the Division of Historical Resources, and the Division of State Lands. 
6. Land management plans for conservation lands in Florida must meet Florida Statute Sections 253.034(5) and 259.032(10), and agency rule requirements.  For non-conservation land,   land use plans must be submitted on a Division form (if you're smart, it's not an absolute requirement).
7. Many changes in land use or management activities, especially those that are included in ARC’s list of approved Interim Management Activities or additions to the Optimum Planning Boundary, may be allowed without any review by ARC or by posting on the ARC website as a minor plan amendment. More substantive changes must be presented to ARC at a regularly scheduled meeting. 
8. Land Management Plans for parcels over 160 acres must be presented to the Acquisition and Restoration Council (ARC) for their recommendations.
9. Land Management Plans for parcels less than 160 acres may use a form that was developed by the Division.
10. Most of the state’s conservation lands are managed by the following state agencies:

• Florida Forest Service
• Florida Fish and Wildlife Conservation Commission (FWC)
• DEP's Division of Recreation and Parks (DRP)
• DEP's Office of Greenways and Trails (OGT)
• DEP's Office of Coastal and Aquatic Managed Areas (CAMA)
• In addition, Florida’s five water management districts collectively own more than 1.5 million acres, which are managed to protect drinking water supplies as well as provide outdoor recreation opportunities:

• Northwest Florida Water Management District (NWFWMD)
• South Florida Water Management District (SFWMD)
• Southwest Florida Water Management District (SWFWMD)
• St. Johns River Water Management District (SJRWMD)
• Suwannee River Water Management District (SRWMD)

It is St. John's River Water Management District that is currently considering selling off surplus land to private buyers, as discussed in our earlier post on Tuesday.  Whether or not the other WMDs will follow St Johns' lead is being debated, but given their cash-strapped situation these days, it seems likely that surplus land sales to the public will be considered in the near future. 

Source:  Florida Department of Environmental Protection

Florida Water Districts Selling Surplus Land

One result we're seeing now:  Florida water districts may be selling off lands that they own because they need the cash flow and the lands are not critical to the water districts' raison d'etre.  Consider this:  St. John's Water Management District is currently reviewing every single acre it owns, all 705,000+ acres of it, to see what could be sold off.

Not everyone is happy about this.  Some are very worried at the environmental impact of these land sales.  Others are considering the cost in the long run to taxpayers. Their cost-benefit analysis argues developing this real estate isn't good for Florida.

Others are watching this process with anticipation.  These water districts do have land which could be used for development, and the districts should be offering the acreage at a good price.

St. John's Water Management District In Process of Assessing Land Holdings

Last month, St. John's Water Management District had its first public meeting so anyone interested in the decision making here could put in their two cents worth.  They'll have more; in fact, one was on the schedule for last night at the Volusia County Council Chambers and the SJWMD will be announcing more of these meetings later in the year. 

You can also send a message to the St. John's Water Management District Powers that Be regarding this land assessment for potential sale of surplus lands online in a "comment form" here. 

Here's a video from the SJWMD that gives an overview of their land assessment: