Florida Commercial News - Land, Development, Building, Business

Here's good news for Florida - a new research study finds that the Florida economy as a whole is getting better, news carried by media outlets like the New York Times.  More here in our "news release of the week." 

To get the actual study, you will need to email Comerica at www.comerica.com/econsubscribe and subscribe.

Here from the Comerica Bank out of Dallas:

Florida Economy Rises In March, Reports Comerica Bank's Florida Economic Activity Index

DALLAS, May 23, 2012 /PRNewswire/ -- Comerica Bank's Florida Economic Activity Index increased in March, rising four points to a level of 109.5. The March index reading is 29 points, or 36 percent, above the index cyclical low of 80.6. The index averaged 107 in the first quarter of 2012, eight points above the index average for all of 2011.

"Florida is gaining economic momentum, as shown by the uptick in our Florida Economic Activity Index for March. Real estate conditions are gradually firming, as buyers take advantage of the very high affordability in residential markets," said Robert Dye, Chief Economist at Comerica Bank. "Tourism activity is picking up and that is helping to stabilize the state economy. However, cuts in federal spending are dragging on the Florida economy as the space shuttle program fades into the history books. A weaker global macroeconomic environment may limit international interest in Florida real estate this year."

The Florida Economic Activity Index consists of seven variables, as follows: nonfarm payrolls, exports, sales tax revenues, hotel occupancy rates, continuing claims for unemployment insurance, building permits, and airline passenger deplanements. All data are seasonally adjusted, as necessary, and indexed to a base year of 2008. Nominal values have been converted to constant dollar values. Index levels are expressed in terms of three-month moving averages.

In addition to Boca Raton, East Boca Raton, Fort Lauderdale, Naples, Orlando, Palm Beach Gardens, Singer Island, Sarasota, Stuart, Wellington and Weston, Fla., Comerica (NYSE: CMA) locations can be found in its headquarters state of Texas, as well as in Arizona, California and Michigan, with select businesses operating in several other states, as well as in Canada and Mexico.

SOURCE Comerica Bank

RELATED LINKS

http://www.comerica.com

Source: PR Newswire (http://s.tt/1czTx)

In a November 22, 2011 report entitled,“Interim Status Report: Foreclosure-Related Consent Orders,” the federal government via its Office of the Comptroller of the Currency (OCC) is sharing its latest report card on the twelve (12) banks' and mortgage servicers' efforts to meet the requirments of the April 2011 Consent Orders to fix ForeclosureGate and all its problematic foreclosure practices.

The report can be downloaded as a pdf file online at the OCC site.

Within it, there is a summary of what has been done thus far.  Athough it is an interim report, it does provide signifcant information regarding a work in process that the OCC predicts will have the efforts to correct ForeclosureGate "...substantially complete in the first part of 2012, [while] other longer term initiatives will continue through the balance of 2012."

For those interested in what the federal government is doing regarding ForeclosureGate, the OCC has also set up a website dedicated to the fight against ForeclosureGate and its ramifications on the national economy and the housing crisis.  This is also maintained by the OCC and can be viewed here.

Also revealed in this November 2011 status report by the feds is the actual release of the engagement letters signed by the banks and mortgage servicers with the consultants that are reviewing and analyzing the past two years worth of foreclosures (go here to read the letters themselves), where the consultants detail exactly what they are doing and how long they think they will need to accomplish their tasks:

Bank | Independent Third Party Consultant

Aurora Bank: Allonhill, LLC 

Bank of America: Promontory Financial Group, LLC 

CitiBank: PricewaterhouseCoopers, LLP 

EverBank: Clayton Services, LLC 

HSBC: Ernst & Young, LLP 

JPMorgan Chase: Deloitte & Touche, LLP 

MetLife Bank: Ernst & Young, LLP 

OneWest: Navigant Consulting, Inc. 

PNC: Promontory Financial Group, LLC 

Sovereign: Treliant Risk Advisors, LLC 

US Bank: PricewaterhouseCoopers, LLP 

Wells Fargo: Promontory Financial Group, LLC 

Miami-Dade County Commissioners learned a lot more about the proposed new Resorts World Miami this week, as Genting's proposed casino resort was discussed in detail at a Commissioners' meeting.  Proponents and critics alike were there to put their two cents' worth into the debate about casinos being built in Miami.  Specifically, the three resort casinos currently being proposed in Tallahassee with Genting's casino the one that has all the details all ready to go.  Genting's got a plan, Genting's already moving ahead.

Genting's Resorts World Miami Will be HUGE

Genting is sharing lots of information about its Miami project, much like a proud new mother shares photos of her baby.  Just check our their video (below).  Amazing stuff.

And, at the Commissioners' meeting this week, Genting shared:

• Resorts World Miami is estimated to cost $3.8 billion to complete
• Resorts World Miami will be bigger than any Vegas hotel or casino
• Resorts World Miami is expected to create "tens of thousands" of construction jobs in the short term and "tens of millions" of tourist dollars in the long run
• Genting will issue casino debit cards to its guests for use at restaurants, shops, etc. in the surrounding area (i.e., non-Genting establishments)
• Resorts World Miami is expected to have 5200 hotel rooms (compare this with the MGM Grand at 5044)
• Resorts World Miami plans include two casinos in two different parts of its project, one almost twice as big as the other.  8500 slot machines are included along with 50 restaurants. 
• It is targeting a higher-stakes gambler (more "whales" for Miami).
• Resorts World Miami will be the biggest casino resort in the world - if the plans are okayed by the Powers That Be. 

Bigger than Vegas?  Bigger than anything else in the world?  That's real estate development in a big way and its impact on our economy will be staggeringly positive. Now and later. 

Genting is good for Miami. 

Watch what Genting is planning here:

WPBT2 will broadcast "Mexico, The Royal Tour" once more (it was already aired here in Miami on September 21st and 25th): on Tuesday, September 29th at 2AM.  It's worth your time to watch this wonderful, one hour show and we encourage you to record this program for future viewings with your and your family - as well as your business colleagues. 

Please Watch "Mexico, The Royal Tour" - For Business and For Pleasure

There's something for everyone here - this program is not just for kids or those who love to travel.  This one hour tour of Mexico, given to host Peter Greenberg by Mexico's President, Felipe Calderon, is an education to those here in South Florida and Miami who are doing business with Mexican investors and Mexican businesses. 

I was born in Mexico, and share a love of the country with my family and friends.  However, many in South Florida unfortunately are not aware of Mexico's complexities, her beauty, and the depth of her culture. 

Travelers to South Florida in wintertime, for example, are shocked to find that it does get cold here in February - and not everyone on the sandy beaches looks like they just walked off the set of hit TV shows like CSI: Miami or Burn Notice. 

President Calderon Serves as Tour Guide to Many Spectacular Places

In this one hour television show, viewers are given a glimpse into multifacted, marvelous Mexico - something that those who love Mexico will find charming.  For those who don't know Mexico as well, they will walk away with a new-found appreciation for the country.  Something that might serve them in good stead when they are dealing with Mexicans coming into our area to invest or do business: there is a reason why Mexicans adore Mexico. 

Details are here, in the press release from President Felipe Calderon:

“Mexico, The Royal Tour” Program Presented

07 Sep 2011 | Comunicado

Press Release 166/11Tourism Secretariat

Mexico City

 • The aim is to boost promotion abroad and show the wealth of Mexico’s tourist attractions.

• The program will have a potential audience of 100 million persons in the United States and 300 million persons abroad.

• The Mexican president decided to take part in this enormous effort.

In order to boost promotion abroad and show the wealth of Mexico’s tourist attractions, the Tourism Secretariat presented the “Mexico the Royal Tour” program, produced by the US television network PBS.

Tourism Secretariat Gloria Guevara Manzo explained that the program was recorded to support tourism in Mexico, which is why Mexican President Felipe Calderón agreed to participate in this project. This confirms his commitment to an activity on which millions of Mexicans depend.

The Sectur director explained that The Royal Tour is one of the most successful programs in the world for tourist promotion, since in the four countries where the program was previously recorded (Jordan, New Zealand, Peru and Jamaica), tourist promotion has been boosted internationally, attracting a large number of tourists.

The president announced that the program will have a potential audience of 100 million persons in the United States and 300 million persons in the rest of the world.

Accompanied by the Assistant Director General of Tourist Promotion in Mexico (CPTM), Guevara Manzo said that tourism is a national priority, which is why this type of initiative is being carried out to attract larger numbers of visitors.

As a result, 2011 was declared Tourism Year in Mexico and the National Tourism Agreement was signed, establishing the basis to position Mexico as one of the world’s five most popular tourist destinations.

The Sectur director explained that this initiative will enable us to attract more national and foreign tourists, which, in addition to increasing tourist spending, will encourage job creation in an activity that currently employs 7.5 million Mexicans.

Gloria Manzo said that the production of this program did not entail any cost for the Mexican government, since it had the support of three sponsors.

The program highlights t Mexican food, as well as the promotion of destinations belonging to the cultural, adventure and nature tourism sectors.

This program was recorded in ten days, during which the production team visited Baja California Sur, Campeche, Chiapas, Chihuahua, Mexico City, Mexico State, Jalisco, Michoacán, Quintana Roo, San Luis Potosí and Yucatán.

The tourism secretariat said that many other countries have tried to have this program recorded, such as Brazil, a country Mexico managed to beat as regards time.

Once the Royal Tour was persuaded to record its program in Mexico, the production firm proposed the tourist destinations to be recorded and we decided on them together.

Assistant Director General of the Mexican Tourist Board, Rodolfo López Negrete, said that the Royal Tour reinforces the campaigns to promote Mexico in international markets.

The aim of this television program, explained López Negrete, is to show the world part of our wealth of tourist attractions, as well as the activities that can be carried out in Mexico.

Times are tough in Florida and many things are being done in both the public and private sectors to fight and win against the "Great Recession."  This week, news has started trickling in that suggests some light at the end of the tunnel.  Consider this:

1.  From the Naples News, we know that several developments will be proceeding in South Florida with homes projected to be ready for sale in 1 -5 years.  These include:

• Hacienda Lakes in Collier County (plan approved by the Southwest Florida Regional Planning Council)
• Alico West in Lee County (plan approved by county and state officials); 
• Sabal Bay in Collier County (approvals in process);
• Big Cypress in Collier County(approvals in process).

2.  The Naples News also reports that well known developer The Ronto Group has requested a ten year extension on its huge planned development on Bonita Beach Road to gain back the extra time at the end of the project that had been lost in the lull brought on by the recession. 

Moving back the deadline brings things back to a status quo as development chugs forward on The Rondo Group's planned development of a huge golf course and residential community.  Rondo representatives are telling the media that lots of homes are going to be built within the next year in their new Bonita Beach Road project.

3. Up in Jacksonville, commercial interests are seeing a big spurt as the Florida Times Union reports that it's a go for a new "superport" to be built,  a bookend to Keystone Industries' recently debuted shipping terminal over in Talleyrand.  

The new development wll be ten times the size of the Talleyrand terminal and it will have a manufacturing plant that will bring new jobs to the area (in addition to all that cargo work that will need workers to be hired).  This means literally thousands of new jobs in the long run for this area after the project is built, and lots of jobs in the short terms as construction begins on the new Superport. 

This week, it was unanimously approved (7-0) that land developers' growth impact fees in Orange County, Florida, would be slashed by 25% and that they would also see a 50% cut in the charges assessed against them for school impact (a charge for new home builders theoretically paralleling the new kid population accompanying those new houses). 

This is good for Orange County land development.  Land developers should be more interested in doing business in the Orlando area - which means that the community will reap new jobs and correlated business that comes with new land projects.  

This makes sense from another perspective, too.  What with the economic morass we're all experiencing, those fees placed upon land developers don't jive with today's actual costs.  It doesn't cost the same to build a road or put in a park now as it did five years ago.  Orange County is simply being fair here, updating things to reflect today's realities.

Permitting Services Office Opens This Week in Orlando

Another friendly gesture: Orange County debuted its one-stop permitting office this week, located in the county administration building at 201 S. Rosalind Avenue. You can find directions to the new place on Google Maps.

There was a nice ribbon cutting ceremony by the Mayor.  All the Commissioners showed up, and the media came, too.  Nice. 

For those in the know, this is great: in the past, land developers in Orlando had to hassle with going to any number of county offices to get permits for utilities, right-of-way, docks, etc.  Now, everything is under one roof. 

There's more.  They have free Wi-Fi at this new One-Stop Permitting Services Office.   They're not offering any free coffee, though.  At least, not yet. 

Last week's post about the Florida Legislature considering massive deregulation as a budgetary strategy resulted in lots of discussion and commenting - and rather than respond to each item individually, we're providing the following information so anyone with a strong opinion on this issue can give that opinion where it counts: to their representatives in the Florida Legislature itself.

To get the email or phone number or mailing address of your representatives in the Florida Senate and the Florida House of Representatives, go here and input either your zip code or your mailing address. 

The Florida Deregulation Bill Moves Forward - Track it as HB 5055

In our earlier post, the bill was gaining momentum in the House but it was still in subcommittee.  Now, it's official over 300 pages and it's HB 5055, which you track online at the government website. 

On Friday, it moved to the Economic Affairs Committee of the Florida House. You may also want to contact those serving on the Florida Economic Affairs Committee.   

Read the text of this proposed law here.  Here is the summary of what this bill intends to do, according to the Florida House (the official description of the proposed law):

Deregulation of Professions and Occupations: Deletes provisions establishing DBPR's Division of Florida Condominiums, Timeshares, & Mobile Homes, Florida Board of Auctioneers, Board of Employee Leasing Companies, Board of Landscape Architecture, Board of Professional Geologists, & Board of Professional Surveyors & Mappers, Motor Vehicle Repair Advisory Council, & Regulatory Council of Community Association Managers; deletes provisions for regulation of yacht & ship brokers, auctioneers, talent agencies, community association managers, athlete agents, employee leasing companies, home inspectors, mold assessors & remediators, professional surveyors & mappers, persons practicing hair braiding, hair wrapping, or body wrapping, interior designers, landscape architects, professional geologists, professional fundraising consultants & solicitors, water vending machines & operators, health studios, ballroom dance studios, commercial telephone sellers & salespersons, movers & moving brokers, certain outdoor theaters, certain business opportunities, motor vehicle repair shops, sellers of travel, contracts with sales representatives involving commissions, & television picture tubes; revises name & membership of Board of Architecture; revises license classifications of public lodging establishments; deletes DBPR's authority to enforce & ensure compliance of certain provisions relating to condominiums, cooperatives, vacation plans & timeshares, & mobile homes.

Of importance, since this bill is considered to be budgetary in nature it will not need to follow the more well known path of substantive legislation - which means it can get passed a lot faster than the substantive proposals. 

If you want to have your opinion heard by the Powers that Be, then speak now, speak soon -- the proposed effective date of this bill is July 1, 2011. 

A bill that would remove the State of Florida from overseeing and regulating a wide variety of business activities is moving through the Florida Legislature right now -- and it's so comprehensive that even the industry leaders currently subject to agency oversight are denouncing the proposed law as bad for Florida. 

As reported in today's Orlando Sentinel in a story by Jason Garcia entitled, "Some industries balk at giant deregulation bill in Florida House ," the bill is big - it's 281 pages long, and even lots of businesses don't like it.

Garcia reports that over 30 representatives (lobbyists and others) have gone before the House Business and Consumer Affairs Subcommittee to give their testimony of how bad things could get if the Florida state government were to exit the building in these various industries.  Even Disney had a man go before the committee, warning of land fraud temptations without Florida's oversight of time shares. (Disney's big into the time share condo business.)

What the Deregulation Bill Proposes to Do

It's a budget cutting manuever that would take the State of Florida out of the business of overseeing and regulating 25+ professions and industries operating for profit in this state -- including home inspectors, time-shares, condos, landscape architects, professional surveyors, professional mappers, and other real estate related industries as well as businesses like auto mechanics and travel agencies. 

For example, here's what is being considered regarding architects.

Architects - Currently, an Architect business must be licensed by the state, unless exempt from licensure, in addition to the requirement that the individual be licensed. Persons currently exempt from licensure include anyone who makes plans and specifications for, or supervises the erection, enlargement, or alteration of:

1. Any building upon any farm for the use of any farmer, regardless ofthecost of the building;

2. Anyone-family or two-family residence building, townhouse, or domesticoutbuilding appurtenant to any one-family or two-family residence, regardless of cost; or

3. Any other type ofbuilding costing less than $25,000, except a school,auditorium, or other building intended for public use, provided that theservices of a registered architect shall not be required for minor school projects.

The proposal is to eliminate business license equirements for sole proprietorships for individuals licensed as Architects.

Florida isn't new to deregulation -- Governor Crist made lots of headlines in 2009 regarding the extent that the State of Florida would regulate the commercial insurance industry.  There was also lots of controversy over the extent that Florida should or would oversee the telecommunications industry in the state.

However, with the new shift in power up in Tallahassee, and Governor Scott's stated intention to run the State of Florida like a business, wide-spread deregulation like this may not face the big fight that it has seen in past years. 

Deregulation From a Land Development Perspective

Land developers often find state regulations to be time-consuming and expensive, but all reputable real estate professionals still respect the reality that there are those that push the edge of the envelope (or go past it) for the sake of profit.  No one wants to open the door to a free-for-all here in Florida, just because the state is in economic hard times.

So, is this massive deregulation good for Florida?  Many respected business professionals think not.  Consider what's being done here.  Specifically, the government would be hands-off regarding the following industries:

1. Athlete Agents

2. Auctioneers

3. Auctioneer Apprentices

4. Barbers

5. Body Wrappers

6. Business Opportunities

7. Cattle Owners with Officially Registered Brands

8. Charitable Organizations

9. Community Association Managers/Finns

10. Condominiums and Cooperatives

11. Dance Studios

12. Employee Leasing Companies

13. Hair Braiders

14. Hair Wrappers

15. Health Studios

16. Home Inspectors

17. Interior Designers

18. Intrastate Movers

19. Landscape Architects

20. Manicurists

21. Mobile Home Lots

22. Mold Related Services

23. Motor Vehicle Repair Shops

24. Professional Geology

25. Professional Surveyors and Mappers

26. Rooming Houses

27. Sellers ofTravel

28. Specialty Salons (Manicurists, Pedicurists, Nail Extensions)

29. Talent Agents

30. Telemarketing

31. Timeshares

32. Yacht and Ship Brokers

33. Television Tube Labeling (HB 4013 by Eisnaugle-Reported Favorably by BCA

Subcommittee on 2/8/11)

34. Contract Commissions (HB 4023 by Plakon- Reported Favorably by BCA

Subcommittee on 2/8/11)

35. Water Vending Machines (HB 4009 by Workman- Reported Favorably by BCA

Subcommittee on 2/8/11)

Sheila Bair chairs the Federal Depository Insurance Corporation ("FDIC") and has since since June 2006, when she was appointed for a five year term by President George W. Bush.  (Sheila Bair is also serving a term on the FDIC's Board of Directors which will end in 2013.)

For many, Sheila Bair's biggest role involves overseeing and salvaging banks that are going under.  Watching the FDIC today usually means watching the news for what banks have failed this week. 

The FDIC Failed Bank List

The FDIC Failed Bank List keeps track of banks that are taken over by the FDIC, which comes in as receiver -- it's a scary list for most at this juncture and many are watching the 2011 FDIC Failed Bank List to see just how many banks fail in 2011 (there have been 11 bank failures so far this year - all in January 2011). 

FDIC Chair Sheila Bair Also Player in Financial Reform

However, FDIC Chair Sheila Bair is also a key mover and shaker in finance and lending practices in this country.  Right now, for example, she is calling for Mortgage Servicers to fork up the necessary funding to establish a Mortgage Servicer Foreclosure Commission that would investigate complaints from consumers regarding these companies and would have the power to resolve these disputes with money provided by the mortgage servicing companies. (If this sounds familiar, it should: it's analogous to the British Petroleum model.)

Sheila Bair is also pushing for the Dodd-Frank Act's risk retention rules to be expanded to incorporate mortgage servicers.  No news here that banks and others involved in the mortgage business are not happy with this proposal.  She advanced this proposition a couple of weeks back during a speech to the Mortgage Bankers Association (see link to full text of her speech, below). 

Rebutting FDIC Chair Sheila Bair's Position on the Mortgage Industry - Maybe She's Wrong

However, rather than go through the details here on why Ms. Bair may not be right in her approach, read the excellent itemized rebuttal of Thomas Brown of Bankstocks.com where he takes her speech, paragraph by paragraph, and points out key issues that include:

• the problem with the mortgage crisis in our country is not how the mortgage notes were serviced, but the fact that borrowers stopped paying on their notes - in massive numbers.  This unprecedented number of home loan defaults forced the financial industry to deal with a new and unique crisis; 
• many of these mortgages were given to folk that should not have been given a home loan, and would not have received financing in prior years; and
• the finance industry views the true crisis as occuring in 2008 and here in 2011, the issue is how to clean things up and move forward.  The massive defaults have already hit. 

Read FDIC Chair Shiela Bair's speech to the Mortgage Bankers Association's January 2011 Summit on Residential Mortgage Servicing for the 21st Century here. 

For an excellent resource on the details of the Dodd-Frank Act, refer to the Law Librarians' Society of Washington, D.C.'s online resource here. 

It the first week of Florida's new governor Rick Scott being in office he's making news already -- and this includes his appointment of Billy Buzzett as secretary of the Department of Community Affairs. 

Check out Buzzett's background on his LinkedIn page and you'll find that after getting his law degree back in the 1980s, Billy Buzzett has been involved in Florida real estate development for many years - and currently serves as the vice-president of strategic planning for the St. Joe Company. 

Good background for the man who will now be Florida's new Big Kahuna of land planning. 

St. Joe Company, currently the state's second largest private landowner, has a long history here in Florida, going back to the 1930s.  Built on the foresight of Edward Ball, brother in law of Alfred I. duPont, the company is known for pulling part of the state out of the Great Depression with employment at its Port St. Joe Paper Mill and having ecological challenges afterward from the paper mill's impact on the surrounding ecosystem. 

Today, its efforts focus on four areas of real estate development:  residential, commercial, rural, and forestry.  Explore the company website, and you can find all sorts of related, diverse development interests -- things that have all sorts of commercial complexities that Buzzett will bring with him in his new job.  Accordingly, Buzzett is bringing a developer's mind to state government. 

Buzzett's appointment is good news for Florida - especially in this economic climate.  We're all the better for it. 

This week, the Sun Sentinel reports that real estate experts are predicting 2011 to be another gloomy year for Florida real estate, hopefully with a turnaround coming in mid-2012.  (This forecast coming primarily from Lewis Goodkin and Moody's Analytics.)  Which may help explain why the South Florida real estate market seems to be growing in international popularity.

For example, the Manchester Evening News had an article of interest to its British circulation this week: right now, Florida real estate appears to be a bargain for our English friends.  Why?

The British interest rates are holding steady at a low rate, while Florida real estate prices continue to slide.  And these folk know a good deal with they see one.  Apparently Manchester's Bridging Finance alone has loaned the British pound equivalent of $3,080,714 since June 2010 to British investors seeking to buy property here in the United States (with lots of those deals here in Florida): this is almost 25% increase in foreign investment in just one year's time. 

Joining with the European investors are savvy buyers from Central and South America.  The Toronto Star reported recently on this Florida foreign investment trend.   Canadians are buying here.  Australians are, too. 

There is a lot of foreign interest in South Beach condos especially -- and a reported focus on those priced now between $50,000 - 100,000.  Miami Today reports a 62% increase in downtown Miami condo sales from January - September 2010. 

It's not just residential condos that are being scooped up by foreign investors, either.  Carlos Slim, Mexico's famous mogul, just had his Grupo Carso SAB buy Florida hotel property. 

Is this bad news or good?  There are those that will argue both sides.  However, it's an obvious reality that these global investors are bringing investment money into the local economy, and these properties otherwise might well be setting there vacant and blindingly red on American balance sheets.  Given the predictions that the Florida real estate market is not booming back in 2011, international investment here has to be seen as a good thing.