Florida Commercial News - Land, Development, Building, Business

The complete report by President Obama to the U.S. Congress is available online as released by the White House in pdf format.

Last week, a bipartisan commission of former Cabinet secretaries, ex-Senators, economists, and experts in various aspects of the American housing industry or market issued their report on how things are and how things should be in the future.  

Read their report, entitled "Housing America’s Future: New Directions for National Policy" here.

The press release issued by the Bipartisan Policy Center, and the reaction by the Mortgage Bankers' Association to this report, are shown below in our news releases of the week:

Bipartisan Policy Center Commission Recommends New Systems for Housing Finance and Federal Rental Assistance 

Demographic shifts transform nation’s housing needs 

Feb. 25, 2013

Washington, D.C. – A bipartisan commission of former Cabinet secretaries, former Senators and other leading housing and economic experts unveiled a new vision for housing policy today, which aims to further our nation’s economic recovery and improve the lives of millions of Americans. The recommendations propose scaling back the government role in the nation’s housing finance system and reforming housing assistance programs to better meet the needs of America’s most vulnerable households. 

The commission is co-chaired by former Senate Majority Leader George J. Mitchell, former Senator Christopher S. “Kit” Bond, former Senator and HUD Secretary Mel Martinez, and former HUD Secretary Henry Cisneros, and includes 17 other individuals from diverse professional and political backgrounds. 

The report from the Bipartisan Policy Center’s Housing Commission, entitled Housing America’s Future: New Directions for National Policy, proposes a new housing finance system that calls for a far greater role for the private sector, a continued but limited role for the federal government, the elimination of Fannie Mae and Freddie Mac, and reform of the Federal Housing Administration to improve efficiency and avoid crowd-out of private capital. 

Through these reforms, the plan would address the broken mortgage finance system while creating a stable and strong housing market that provides greater taxpayer protection and supports a more vibrant economy. 

“At this critical time in our nation’s history, we can no longer afford to defer bipartisan action on housing,” said the co-chairs in an op-ed in POLITICO today. “We believe our report can serve as a framework for Congress and the administration to act in the best interests of all Americans.” 

“Profound demographic changes are transforming the country and our housing needs. The aging of the Baby Boomers, the formation of new households by millions of young Echo Boomers striking out on their own, and the increasing diversity of the American population will present new challenges and opportunities for housing providers and policy makers.” 

The plan calls for reforms that would establish a new performance-based system for delivering federal rental assistance with greater devolution of responsibilities to state and local providers. The commission also proposes to shift existing resources to assist more effectively the most vulnerable households, and to preserve and expand the Low Income Housing Tax Credit program to increase the supply of affordable rental housing. 

For first-time home buyers, the report emphasizes the importance of housing counseling as a means of preparing for homeownership. The commission recommends proposals to enable seniors to “age in place” safely and affordably while integrating housing with health care and other programs. For the one-third of Americans who live in rural areas, the commission recommends continued support for homeownership and rental assistance in those communities. 

“Six years after the collapse of the housing market, the problems in housing remain as severe as ever and solutions continue to be elusive,” says the op-ed. “We hope [our report] will serve as a catalyst for action.” 

To read the full report of the Bipartisan Policy Center’s Housing Commission, please visit http://bipartisanpolicy.org/library/report/housing-future. 

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Statement of MBA’s David Stevens on Bipartisan Policy Center’s Housing Commission Report

WASHINGTON, D.C. (February 25, 2013) – David H. Stevens, President & CEO of the Mortgage Bankers Association (MBA), issued the following statement in response to the Bipartisan Policy Center’s Housing Commission (the Commission) report America’s Housing Future: New Directions for National Policy.

“The release of today’s report represents another important step forward in the debate over the future of the government’s role in housing. As the recovery in the housing market and the broader economy continues to gain momentum, it is critical that all stakeholders work together with policymakers to identify positive solutions that will support both owner-occupied and rental housing finance. 

“There is widespread agreement that the government’s footprint in housing finance is currently too large. The Commission’s report rightfully highlights the need for a greater role for private capital in bearing credit risk, while also acknowledging the continued desire for a limited government function to ensure sufficient mortgage liquidity for qualified borrowers, particularly in times of market stress. 

“We are pleased to see that the Commission’s framework closely follows that of MBA and others who have called for a new secondary mortgage market structure where private capital is placed in the first-loss position, with a federal backstop of mortgage backed securities (MBS) paid for by the entities that issue or insure the MBS. It is important that any secondary market proposal both meet policy objectives, in terms of ensuring secondary market liquidity, and support vibrant, dynamic, and competitive primary and secondary markets for the ultimate benefit of homeowners. 

“The Commission also rightfully identifies a number of other issues facing lenders that are causing an overly tight credit environment that limits financing for qualified borrowers, including ‘put-back’ risk and uncertainty in regulatory mortgage rule-making. 

“Likewise, the Commission’s report recognizes the important role of a robust rental housing market for the approximately 35 percent of Americans who do not own their own home. MBA shares the Commission’s concerns about the importance of a sufficient supply of multifamily rental housing, particularly for low-income families. 

“As we have the opportunity to further digest the Commission’s report, MBA looks forward to working with the Commission to identify and discuss issues where our views may be divergent.” 

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Earlier this month, we shared the perspective of national Mortgage Bankers on the commercial real estate market in 2013. Now, in this news release of the week, is a similar perspective from another group of industry experts:   the National Association of Realtors together with the Real Estate Research Corporation, and Deloitte, giving more good news about the future of commercial real estate in Florida and elsewhere:

Commercial Real Estate Investors Eager to "Turn the Page," According to New Outlook Report

CHICAGO - Frustrated by continued uncertainty, a sluggish recovery, and a challenging investment environment, investors generally appear eager to put the past behind them and adjust to the new normal, as outlined in Expectations & Market Realities in Real Estate 2013—Turn the Page, a new annual report published jointly by Real Estate Research Corporation (RERC), Deloitte, and the National Association of REALTORS® (NAR). According to the report, investors appear to realize that this environment will likely be with us for the foreseeable future, and that adjustments may need to be made to maximize commercial real estate investment performance and yield in our continuing slow-growth economy. 

The three organizations have drawn on their respective capabilities to examine the economy, capital markets, and commercial real estate property markets; to thoroughly assess and analyze existing research; and to offer an outlook for commercial real estate for 2013 and beyond. Findings indicate that the economy is expected to improve only modestly in 2013, with the budget deficit, tax increases, and cuts in government spending expected to continue the economic uncertainty. In general, capital remains available for commercial property investments, but the discipline for capital has been inching upward and is becoming more selective. The report also carefully analyzes and offers an assessment of the office, industrial, apartment, retail, and hotel property sectors, as well as for commercial real estate as an asset class, for 2013. 

“It is time to stop waiting for the economy and the investment environment to get better. This is it—this is the new normal—and we need to turn the page on the past and make the adjustments needed to be successful for the balance of this decade,” stated Kenneth Riggs, Jr., chairman and president of RERC. “Investors are facing the challenges ahead, and commercial real estate continues to be an attractive investment for a variety of reasons in this economic climate.” 

“Moderate positive and stabilizing trends in commercial real estate markets are expected to add value to institutional portfolios as we turn the page to the next chapter of the real estate cycle,” noted Matthew Kimmel, principal and U.S. real estate sector leader for Deloitte Financial Advisory Services LLP. “Overall the office, industrial, retail, apartment and hotel property sectors are expected to experience various elements of slow fundamental increase and growth.”

The group expects the commercial real estate recovery to continue throughout 2013. “A pent-up demand for commercial property space has been developing with the nearly 5 million net new job creations in the past three years,” noted Lawrence Yun, Ph.D., NAR chief economist. “That demand steadily reaching the market, combined with little new construction, will likely help lower vacancy rates and push up rents.”

Last month, the international non-profit land use thinktank, the Urban Land Institute, held a meeting of minds to ponder the future of coastal land development and how climate change (global warming) is influencing land use and real estate development around the world -- something that is very important to Florida development, of course, and thus, this is our News Release of the Week:

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.

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In a joint press release issued by the Federal Reserve and the Office of the Comptroller of the Currency, news this past week is that 10 mortgage servicers around the country have entered into a settlement agreement with the federal government over allegations of bad acts in mortgage servicing and foreclosure activities resulting in a release from further federal prosecution in exchange for the payment of $8.5 billion in cash which will be used to help those who have been hurt in the Foreclosure Crisis of the past few years.  

Here are the details as explained by the two agencies in our News Release of the Week, of the deal includes major banks Aurora, Bank of America, Citibank, JPMorgan Chase, MetLife Bank, PNC, Sovereign, SunTrust, U.S. Bank, and Wells Fargo:

Independent Foreclosure Review to Provide $3.3 Billion in Payments, $5.2 Billion in Mortgage Assistance

WASHINGTON--Ten mortgage servicing companies subject to enforcement actions for deficient practices in mortgage loan servicing and foreclosure processing have reached an agreement in principle with the Office of the Comptroller of the Currency (OCC) and the Federal Reserve Board to pay more than $8.5 billion in cash payments and other assistance to help borrowers.

The sum includes $3.3 billion in direct payments to eligible borrowers and $5.2 billion in other assistance, such as loan modifications and forgiveness of deficiency judgments. The payments involve mortgage servicers operating under enforcement actions issued in April 2011 by the OCC, the Federal Reserve, and the Office of Thrift Supervision. The agreement ensures that more than 3.8 million borrowers whose homes were in foreclosure in 2009 and 2010 with the participating servicers will receive cash compensation in a timely manner. 

Eligible borrowers are expected to receive compensation ranging from hundreds of dollars up to $125,000, depending on the type of possible servicer error. 

This agreement includes Aurora, Bank of America, Citibank, JPMorgan Chase, MetLife Bank, PNC, Sovereign, SunTrust, U.S. Bank, and Wells Fargo. For these participating servicers, fulfillment of the agreement would meet the requirements of the enforcement actions that mandated that the servicers retain independent consultants to conduct an Independent Foreclosure Review. 

As a result of this agreement, the participating servicers would cease the Independent Foreclosure Review, which involved case-by-case reviews, and replace it with a broader framework allowing eligible borrowers to receive compensation significantly more quickly. The OCC and the Federal Reserve accepted this agreement because it provides the greatest benefit to consumers subject to unsafe and unsound mortgage servicing and foreclosure practices during the relevant period in a more timely manner than would have occurred under the review process. Eligible borrowers will receive compensation whether or not they filed a request for review form, and borrowers do not need to take further action to be eligible for compensation. 

A payment agent will be appointed to administer payments to borrowers on behalf of the servicers. Eligible borrowers are expected to be contacted by the payment agent by the end of March with payment details. Borrowers will not be required to execute a waiver of any legal claims they may have against their servicer as a condition for receiving payment. In addition, the servicers' internal complaint process will remain available to borrowers. 

The agencies continue to work to reach similar agreements in principle with other servicers that are not parties to the agreement announced today, but that are also subject to enforcement actions for deficient practices in mortgage loan servicing and foreclosure processing. 

OCC and Federal Reserve examiners are continuing to closely monitor the servicers' implementation of plans required by the enforcement actions issued in April 2011 to correct the unsafe and unsound mortgage servicing and foreclosure practices.

Florida's economy needs its active and efficient ports and while on one hand, there's construction underway to make Port Miami big enough to deal with the increased traffic coming from the Panama Canal expansion, on the other hand there is the real danger right now that Miami's port as well as all ports on the East Coast and the Gulf Coast will come to a full stop as dockworkers are threatening to strike.

Work stopping at Miami's ports could be catastrophic to our local economy and officials are also pointing to the national strike as being a danger to national security.  This is a very big deal.  

The latest on this potential strike comes from Florida Governor Rick Scott and FMCS Mediators who provide the following optimistic news that negotiations are proceeding and that the strike negotiations between the International Longshoremen's Association and the shipping companies have been continued into January 2013, where hopefully there will be a resolution without harm to our local economy.  Here, our news release(s) of the week:

Governor Scott Hopeful Agreement is Quickly Reached to Remove Threat of Port Shut Down

(December 28, 2012) -- Today, Gov. Scott made the following statement on the extension of the International Longshoremen’s Association and the United States Maritime Alliance negotiations.

Gov. Scott said, “The 30-day extension in the negotiations between the International Longshoremen’s Association and the United States Maritime Alliance is certainly good news for Florida. Cargo-related activity at Florida seaports supports more than 550,000 direct and indirect jobs, and contributes approximately $66 billion to our economy. We are hopeful these two organizations will quickly reach a final agreement to permanently remove the threat of a port shut down that would devastate families all across our state. We are asking the President to pursue any means possible – including invoking the Taft-Hartley Act – to avoid a work stoppage in the weeks ahead. A shut down of Florida ports is simply not an option.”

Statement by FMCS Director George H. Cohen on the East Coast Ports Labor Negotiations 

Release Date: 12/28/2012

FMCS Director George H. Cohen issued the following statement today on the the United States Maritime Alliance and International Longshoremen's Association labor negotiations: 

WASHINGTON, D.C. — “I am extremely pleased to announce that the parties have reached the agreements set forth below as a result of a mediation session conducted by myself and my colleague Scot Beckenbaugh, Deputy Director for Mediation Services, on Thursday, December 27, 2012: 

“The container royalty payment issue has been agreed upon in principle by the parties, subject to achieving an overall collective bargaining agreement. The parties have further agreed to an additional extension of 30 days (i.e., until midnight, January 28, 2013) during which time the parties shall negotiate all remaining outstanding Master Agreement issues, including those relating to New York and New Jersey. The negotiation schedule shall be set by the FMCS after consultation with the parties.” 

“Given that negotiations will be continuing and consistent with the Agency’s commitment of confidentiality to the parties, FMCS shall not disclose the substance of the container royalty payment agreement. What I can report is that the agreement on this important subject represents a major positive step toward achieving an overall collective bargaining agreement. While some significant issues remain in contention, I am cautiously optimistic that they can be resolved in the upcoming 30-day extension period.” 

“On behalf of our Agency, I want to thank the parties, especially ILA President Harold Daggett and USMX Chairman & CEO James Capo, for their ongoing adherence to the collective bargaining process, which has enabled them to avoid the imminent deadline for a work stoppage that could have economically disruptive nationwide implications.”

While much of the focus the past few weeks on the Federal Reserve Board and its Chairman, Ben Bernanke, has been on domestic issues, specifically the fiscal cliff and the Federal Reserve's $45 billion / month spending budget, last week had a news release that deals with foreign matters, specifically proposed rules by the federal government to monitor foreign banking.  For more, read this, our news release of the week:

The Federal Reserve Board on Friday proposed rules to strengthen the oversight of U.S. operations of foreign banks.

December 14, 2012 (Washington, D.C.) -- The proposal would require foreign banking organizations with a significant U.S. presence to create an intermediate holding company over their U.S. subsidiaries, which would help facilitate consistent and enhanced supervision and regulation of the U.S. operations of these foreign banks. Foreign banks would also be required to maintain stronger capital and liquidity positions in the United States, helping to increase the resiliency of their U.S. operations. 

“The proposed rulemaking is another important step toward strengthening our regulatory framework to address the risks that large, interconnected financial institutions pose to U.S. financial stability,” Federal Reserve Chairman Ben S. Bernanke said. 

The proposal implements provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act in a manner that addresses the risks associated with the increased complexity, interconnectedness, and concentration of the U.S. operations of foreign banking organizations. 

“Applicable regulations have changed relatively little in the last decade, despite a significant and rapid transformation in the U.S. activities of foreign banks, many of which moved beyond their traditional lending activities to engage in substantial, and often complex, capital market activities,” Governor Daniel K. Tarullo said. “The crisis revealed the resulting risks to U.S. financial stability.” 

The proposal generally applies to foreign banking organizations with a U.S. banking presence and total global consolidated assets of $50 billion or more. More stringent standards are proposed for foreign banking organizations with combined U.S. assets of $50 billion or more. 

The Board proposed a number of measures, including: 

1. U.S. intermediate holding company requirement. A foreign banking organization with both $50 billion or more in global consolidated assets and U.S. subsidiaries with $10 billion or more in total assets generally would be required to organize its U.S. subsidiaries under a single U.S. intermediate holding company (IHC). Such a structure would create a platform for the consistent supervision and regulation of the U.S. operations of foreign banking organizations and help facilitate the resolution of failing U.S. operations of a foreign bank if needed.
2. Risk-based capital and leverage requirements. IHCs of foreign banking organizations would be subject to the same risk-based and leverage capital standards applicable to U.S. bank holding companies. This proposed requirement would help bolster the consolidated capital positions of the IHCs as well as promote a level playing field among all banking firms operating in the United States. IHCs with $50 billion or more in consolidated assets also would be subject to the Federal Reserve’s capital plan rule.
3. Liquidity requirements. The U.S. operations of foreign banking organizations with combined U.S. assets of $50 billion or more would be required to meet enhanced liquidity risk-management standards, conduct liquidity stress tests, and hold a 30-day buffer of highly liquid assets. The liquidity requirements would help make the U.S. operations of foreign banking organizations more resilient to funding shocks during times of stress.

The proposal also includes measures regarding capital stress tests, single-counterparty credit limits, overall risk management, and early remediation. 

The Federal Reserve is proposing a substantial phase-in period to give foreign banking organizations time to adjust to the new rules. Foreign banking organizations with global consolidated assets of $50 billion or more on July 1, 2014, would be required to meet the new standards on July 1, 2015. 

The Federal Reserve consulted with other members of the Financial Stability Oversight Council in developing the proposal.

Comments from the public will be accepted through March 31, 2013. 

Statement by Chairman Ben S. Bernanke 

Statement by Governor Daniel K. Tarullo

Statement by Governor Jeremy C. Stein

Federal Register Notice (1.01 MB PDF)

Promoting Florida to international investors and foreign business is a big deal for Florida's executive branch these days and Florida Governor Rick Scott will be in Columbia this week, on a trade mission to boost Columbian interest (and investment) in the State of Florida.  Here, in our news release of the week, are details of this latest promotional tour by Governor Scott and his office's summary of past trade missions and their resulting successes:  

Governor Scott to Embark on Trade Mission to Colombia

Florida’s overseas trade missions position Florida as a global hub for business and creates jobs for Florida’s families

November 29, 2012 -- On December 2, Governor Scott will lead a trade mission to Bogotá, Colombia with more than 190 participants representing 116 Florida companies, statewide organizations and higher educational institutions to promote economic development opportunities in the Sunshine State. Colombia is Florida’s second largest trading partner, with more than $9 billion in bilateral trade. Florida also accounts for one-fourth of the total U.S. trade with Colombia, and 37 percent of U.S. exports to Colombia move through Florida. 

Enterprise Florida (EFI) has organized this trade mission and six other international business development missions Governor Scott has led since taking office. Previously, Governor Scott has led missions to Panama, Canada, Brazil, Israel, Spain and the United Kingdom. 

The goal of these international missions is twofold. First, they introduce Florida’s businesses, elected officials and community leaders firsthand to global business opportunities through introductions to prospective clients and markets that provide exporting potential for their local companies. Second, the missions aim to attract job-creating foreign direct investment into the state. These have been core activities for EFI since the late 1990s, soon after the public-private partnership was created to serve as the state’s lead economic development organization. 

EFI, along with Governor Scott, promotes Florida as a global business destination through its Florida Export Sales Missions. These “matchmaking missions,” organized with support from the U.S. Commercial Service, allow Florida businesses to meet one-to-one with foreign companies to discuss economic development and business opportunities. The nations targeted tend to be those that are major trade partners with Florida. Enterprise Florida facilitates affordable travel packages to enable businesses to meet prospective international clients. In addition, Governor Scott has led business development missions with EFI to promote economic development activities in targeted industries that are important to Florida’s economy. 

Governor Scott said, “Florida is perfectly positioned to be a global hub for business. We are committed to growing our relationship across the world in order to create jobs for Florida’s families, and that is why the missions we embark on with EFI are vital to Florida’s economic success. These missions help us attract new industries and businesses to Florida and further cement our standing as one of the nation’s top trading states. I look forward to visiting Colombia and with the recent ratification of the Free Trade Agreements, I am convinced that Florida and Colombia’s growing relationship will expand even more.”

Manny Mencía, senior vice president of Enterprise Florida’s International Trade Division, said, “A major goal of these missions is to help increase our state’s exports, which leads to more jobs, by paving the way to greater sales opportunities for Florida companies. Companies that export, grow faster and are more profitable than companies that do not – and it is clear that we must make this a top priority in Florida.” 

Florida Secretary of Commerce and Enterprise Florida President & CEO Gray Swoope notes that “international trade and foreign investment combined are responsible for more than 1.4 million Florida jobs, or about 17.3 percent of the state’s employment. Florida benefits greatly from a Governor who understands global trade’s effect on job creation and economic prosperity. When Governor Scott leads these missions, they not only generate a higher level of participation and results, but also attract a higher level of attention and enhance Florida’s business image in the host country. We applaud him for being a champion of our efforts to expand Florida’s international trade and business development.”

A Record of Success: International missions have been very successful for Florida, providing a notable return on the state’s investment into these business development activities and long-range jobs-producing opportunities.

Governor’s Business Development Mission to Panama 

Panama City 

March 17-18, 2011 

The objective of this mission was to assess the opportunities from the Panama Canal Expansion.

The delegation — six Florida port directors, business leaders and executives from the Florida Chamber of Commerce, Florida Association of Manufacturers and Associated Industries of Florida – enhanced Florida’s economic relationship with Panama through strengthened ties between state leaders and the Republic of Panama and Florida seaports with the Panama Canal Authority.

Governor’s Business Development Mission to Canada 

Montreal and Toronto 

June 6-10, 2011 

The objective of this mission was to promote investment into Florida.

Governor Scott and Florida economic development organizations participated in 155 FDI (foreign direct investment) recruitment meetings.

Governor Scott announced the Canadian security company Garda will relocate its U.S. headquarters to Boca Raton Florida, creating 100 professional jobs, which has been exceeded.

Team Florida Trade and Business Development Mission to Brazil 

São Paulo and São Jose dos Campos, Brazil

 October 22-27, 2011 

The objective of this mission was to provide Florida companies with an opportunity to increase sales of their products and services.

51 Florida companies participated in a two-day Florida expo and matchmaking event with Brazilian businesses. The Florida companies reported more than $96,684,500 in actual and expected future sales.

Governor Scott announced that Brazilian aircraft manufacturer Embraer will invest $50 million to establish new manufacturing facilities at Melbourne Airport. The project is slated to produce more than 200 jobs over five years.

Governor’s Business Development Mission to Israel 

Tel Aviv, Beersheva and Jerusalem

December 8-15, 2011

The objective of this mission was to promote investment into Florida and promote Florida as a platform for Israeli companies into the U.S., Latin American and Caribbean market. The Governor met with potential Israeli investors, delivered presentations on Florida business climate to Israeli business organizations and was a speaker in the GLOBES Conference. (GLOBES is the leading financial newspaper in Israel.)

Governor Scott met with six Israeli companies that are investment or expansion prospects for Florida and spoke at the seminar “Florida: Platform for Israeli Companies Doing Business in Latin America and the Caribbean,” the audience for which included 45 Israeli business executives representing SMEs with an interest in penetrating the Latin American market.

Governor’s Business Development Mission to Spain 

May 21-24, 2012 

The objective of this mission was to promote Spanish investment into Florida.

Included nine events and 13 meetings with potential investment projects. Governor Scott met Spanish companies interested in investing in Florida and delivered presentations on Florida business climate to several Spanish business organizations.

The following companies based in Spain will add 465 jobs within three years in Miami-Dade County:

Obrascon Huarte Lain (OHL USA), one of the world’s largest global construction companies is expanding its presence in the U.S. market by adding a new U.S. South Region headquarters in Northwest Miami-Dade County. Specializing in civil engineering, healthcare and university projects, OHL’s new location will add 255 direct jobs within three years and $22 million in capital investment.

Miami City Tour (formerly El Grupo Julià), a travel and tourism transportation company will open its first U.S. location in Miami Beach, adding 150 new direct jobs within three years and $4 million in capital investment.

TotalBank, a leading integrated retail-commercial bank in South Florida and a member of Grupo Banco Popular Español will further expand in Miami-Dade County, adding 10 new branches with 60 direct jobs within three years and $4 million in capital investment. TotalBank is already a leading integrated retail commercial bank in South Florida with more than $2.3 billion in assets and 19 convenient locations throughout Miami-Dade County.

BBVA, a Spain-based retail bank that entered the Florida marketplace through acquiring Compass bank, has 45 full-service branches in the Jacksonville area along with loan production offices in Orlando and Miami. This bank is expanding in the Miami market by offering domestic private banking and wealth management services. BBVA will add 45 jobs at an average wage of $60,000 annually

Team Florida Business Development Mission to United Kingdom 

London and Farnborough, England 

July 7-12, 2012 

The goal of this mission was to promote worldwide investment into Florida and further develop the state’s aviation cluster through access to the aviation and aerospace companies attending the biannual Farnborough Airshow.

Governor Scott and EFI recruitment staff met with more than 40 major aviation and seven Aerospace companies with investment potential in Florida.

Tradeshow participants reported $41 million in combined actual and expected export sales for the next 24 months and 250 sales leads.

Following this mission, Governor Scott announced that Pratt & Whitney will create 230 new jobs at an average wage of $81,000 as part of its efforts to establish jet engine manufacturing and test operations in Palm Beach County.

Many businesses also participate in multiple international missions because they provide incredible value and return for Florida’s companies. Below are recent success stories for Florida:

Magna-Bon International LLC 

Okeechobee-based Magna-Bon International LLC participated in the October, 2011 Brazil Trade Mission and will embark to Colombia next week. Magna – Bon produces and distributes agricultural products for algae and bacteria control. Magna-Bon owner Joel Agler says being affiliated with the missions Governor Scott leads brings credibility to his company when promoting and selling in overseas markets. For example, Magna-Bon is EPA-approved in the United States, which benefits the company domestically. Other nations may recognize that standard but also place higher value on a business prospect when it has alliances or support from its government. 

“It’s helpful to have government on your side,” Agler said. “It’s important to say we’re with Team Florida.” Agler’s 14 preset appointments in Brazil with “high quality people,” he describes, bore fruit in several ways, one of which being an import permit that now allows his products to be shipped into Brazil. 

“I learned a lot in Brazil, but Colombia will be better because of the Free Trade Agreement,” Agler said. He mentioned that he became interested in participating after hearing Governor Scott speak about the benefits of participating in these missions. “And the fact that the Governor is going is a win situation for us,” Agler said. 

Sunshine Industries 

Mita Burke, CEO of the family-owned, multinational Sunshine Industries in Coral Gables, said “The introductions, exposure and results we’ve gotten have been over the top. Since our participation in the mission to Brazil last year, we are exporting there consistently and successfully. It has really been very fruitful for us,” Burke said. “The introductions we were able to make during the mission have us very excited about the possibilities and the future is looking good. The companies we met with were all very receptive to our products. It’s a shame more people don’t pay attention to these types of services provided by Enterprise Florida.”

 yNs Med Spa, Inc 

The Brazil mission made a difference for the Naples company yNs Med Spa, Inc., which specializes in skin care products. CEO Ann Breusch said her company was able to collaborate with a large firm that will distribute its skincare products to dermatologists. 

“This is a game changer for our company. Just the partnership with Brazil will result in hiring five more employees. I cannot emphasize enough the importance of the Gold Key service for small businesses to help sell USA made products globally,” Breusch said. 

Businesses may qualify for these grants, which reduce the cost of participating in a trade mission. For the Florida mission, a trade expo and gold key package cost $1,200, but SMEs could qualify to pay only $500. “Without the Gold Key grant given to small businesses, we would not have been able to expand our international business especially during the current economic situation.” 

Embry-Riddle Aeronautical University 

Chancellor John R. Watret, Ph.D. acknowledges the university’s longstanding partnership with Enterprise Florida, which he says has opened doors to business opportunities worldwide. Embry-Riddle’s Worldwide Campus provides educational opportunities for aspiring professionals in the aviation and aerospace industry through an expanding global network of campuses and technology enhanced learning. 

“Of particular importance to Embry-Riddle has been expansion in emerging aviation economies,” Watret emphasizes. “Enterprise Florida’s support and mentorship was integral in the successful opening of a new subsidiary, Embry-Riddle Asia, headquartered in Singapore. EFI events and missions have created valuable connections with foreign governments, industry and individual customers in Europe, Asia, South America and the Middle East that will continue to enhance the university’s international brand and serve its mission of teaching the science, practice and business of aviation and aerospace around the world.”

City of Tampa 

Representatives from Florida’s communities are regular mission-goers in their quest to scope new opportunities for helping their city, county or region grow and prosper. 

“The trip to Colombia is an opportunity to tell our story and make the case to businesses abroad that Tampa is the best place to live, work, and play. I will market what we have to offer – Florida’s largest port, a world-class airport, and incredible economic potential,” said Tampa Mayor Bob Buckhorn.

###

Florida's construction industry may find some good news in the latest survey results releaed by Freddie Mac this week, which appears today in our News Release of the Week (emphasis added):

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.

As Orlando (including Lake Nona) continues to enjoy rising commercial development, especially in the area of medical research and health care, news came from the well-known Florida Hospital, part of the Adventist Health System, that it will be building three new, big health care facilities in the Orlando area, all targeting the needs of women's health care - and spending almost $270 million, its 2nd largest capital investment in 100 years, making this our news release of the week: 

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.

The National Association of Home  Builders carefully monitors the state of real estate development in this country, something that Florida land investors and developers involved in both commercial and residential projects are interested in knowing.  (Go here to check out the NAHB's online National Research Center.)  So when the NAHB issued a press release last week with good news -- new single family homes are selling again, which means buyers are out there and banks are loaning home loans again -- it's gotta be our news release of the week: 

New-Home Sales Rise 3.6 Percent in July

August 23, 2012 - Sales of newly built, single-family homes rose 3.6 percent to a seasonally adjusted annual rate of 372,000 units in July from an upwardly revised pace in the previous month, according to figures released by HUD and the U.S. Census Bureau today. 

“Sales of new homes in July returned to the same solid pace they set in May, which was the fastest sales rate we’d seen in more than two years,” said Barry Rutenberg, chairman of the National Association of Home Builders (NAHB) and a home builder from Gainesville, Fla. “This is further evidence that consumers are becoming more confident in local housing markets as they look to take advantage of today’s very favorable prices and interest rates.” 

Noting that the three-month moving average of new-home sales has been edging up consistently since last September, NAHB Chief Economist David Crowe said, “Today’s good report is the latest indicator of a gradual, upward trend that we expect to continue through the remainder of this year.” However, he added that “The fact that the inventory of new homes for sale reached an all-time low in July is a worrisome signal that ongoing, unnecessarily tight credit conditions are keeping builders from being able to replenish supplies as consumer demand improves.” 

Regionally, the Northeast posted the biggest gain in new-home sales with a 76.5 percent increase in July from an abnormal low in the previous month. The Midwest posted a 7.7 percent gain while the South and West registered marginal declines of 1.6 percent and 0.9 percent, respectively. 

After trending downward for the past six years, the inventory of new homes for sale hit a record low of 142,000 units in July. This is a 4.6-month supply at the current sales pace.

This month, a new drive for environmental protection of Florida's natural resources began in a big way as the "Florida's Water and Land Legacy" campaign kicked off -- its goal: to insure there is money in the coffers to buy conservation land as well as recreation areas here in the Sunshine State by inserting this requirement into the State Constitution as a budget mandate.  It's a big deal, asking for big money, and therefore, it's our news release of the week:

Florida’s Water & Land Legacy Campaign Launches Constitutional Amendment Drive to Guarantee Funding for Environmental Protection in Florida

TALLAHASSEE––Aiming to provide a stable, dedicated funding source for the acquisition of conservation and recreation lands in Florida, a coalition of leading defenders of the state’s environment today launched a Constitutional amendment petition drive to ask voters to guarantee support for this long-term state priority.

“This will be the most significant vote in Florida for our environment in our lifetimes,” said Will Abberger, the campaign’s chair and the director of conservation finance for the Trust for Public Land. “We are launching a grassroots effort to let the people decide if clean water and natural land are a legacy we want to leave for our children and grandchildren––and generations to come.”

The amendment would take effect July 1, 2015, and for 20 years would dedicate one-third of the net revenues from the existing excise tax on documents to restore the Everglades, protect drinking water sources, and revive the state’s historic commitment to protecting natural lands and wildlife habitat through the Florida Forever Program.

Under the amendment, the monies deposited into the Land Acquisition Trust Fund will remain separate from the State’s General Revenue Fund. The amendment would provide more than $5 billion for water and land conservation in Florida over the next ten years and $10 billion over the 20-year life of the measure, without any tax increase.

The Florida Water and Land Legacy Campaign brings together the Trust for Public Land, Audubon Florida, the Florida Wildlife Federation, the Sierra Club, the Nature Conservancy, 1000 Friends of Florida, Defenders of Wildlife, and others. The campaign will reach out to gain signatures of at least 676,811 registered voters to put the issue on the 2014 ballot.

The Coalition notes that since 2009, the Florida Legislature has provided only $23 million for the landmark Florida Forever program. This is a 97.5 percent reduction in previous funding. State appropriations for land management and ecological restoration, including the Everglades, have suffered similar declines.

In 2012, the Legislature allocated $8.5 million to safeguard important water protection areas and conservation lands. In light of a state budget of $60 billion, that means that for every dollar the state spends in 2012, less than two-hundredths of one penny will go to water and land conservation––less than $1 for each Floridian.

“We are reaching out across our state to business leaders, conservationists, people of every age, ethnicity, creed, and political stripe, to ask them to protect what is fundamental to our economy and our quality of life in Florida––the land and water that makes this such a special place,” added Eric Draper, executive director of Audubon Florida. “Florida Forever has been cut drastically since 2009. We can’t protect this state on less than a dollar per year per Floridian. It just won’t work.”

The Coalition sees the proposed amendment as a responsible remedy to counter the dramatic reduction in funding for environmental protection and preservation, without having to raise taxes.

“When it comes to dedicating funding to protect Florida’s environment, the Great Recession has led to a complete depression. State funding to protect our most precious natural resources has slowed to a trickle,” said Manley Fuller, president of the Florida Wildlife Federation, and a leader in the effort. “This amendment is not a tax increase. It is the dedication of an existing funding source back to its historic purpose. Passing this amendment will ensure Florida’s long-term traditional conservation values are secure and protected from short-term political pressures.”

The amendment would create Article X, Section 28, of the Florida Constitution. Under the amendment, Florida’s Land Acquisition Trust Fund would receive a guaranteed 33 percent of net revenues from the existing excise tax on documents. These funds would be dedicated to support financing or refinancing the acquisition and improvement of:

• Land, water areas, and related property interests and resources for conservation lands including wetlands, forests, and fish and wildlife habitat;

• Lands that protect significant water resources and drinking water sources, including lands protecting the water quality and quantity of rivers, lakes, streams, springsheds, and lands providing recharge for groundwater and aquifer systems;

• Lands in the Everglades Agricultural Area and the Everglades Protection Area, as defined in Section 7(b) of Article II of the Florida Constitution;

• Beaches and shores; outdoor recreation lands, including recreational trails, parks, and urban open space; rural landscapes; historic, archaeological, or geologic sites as well as management of lands acquired;

• Restoration of natural systems related to the enhancement of public access and recreational enjoyment; and

• Payment of the debt service on bonds issued pursuant to Article VII, Section 11(e) of the Florida Constitution.

The Coalition says support for environmental protection remains strong in Florida and is solidly nonpartisan. Since 1994, Florida voters have approved five of the six amendments proposed to the state Constitution related to conservation and the environment––an 83 percent passage rate. The average “Yes” vote for those successful conservation amendments was 68 percent.

Former Florida Governors Graham, Martinez, Chiles, Bush, and Crist all supported Preservation 2000/Florida Forever, Everglades’ restoration, and funding for land management. Historically, Democratic and Republican leadership in the Florida Legislature have supported funding for land and water conservation.

“Regardless of political party and in good times and bad, for more than 20 years Legislatures and Governors have supported these programs. Since the recent economic downturn, our water and land, our beaches and springs, have suffered greater cuts and more damage than almost any other area of statewide concern,” said Abberger.

The campaign will rely on volunteer signature gatherers and donors from across the state, and is urging supporters to sign up at floridawaterlandlegacy.org, or call 850-629-4656, or e-mail: campaign@FloridaWaterLandLegacy.org.

###

In an 100% cash transaction, Brazil's EuroBank sold commercial real estate notes backed up with real estate in the Florida counties of Broward, Dade, and Palm Beach to an American investment firm based out of Virginia.  The amount of cash: $33,413, 513.  There are lots of news reports regarding the buying and selling of residential real estate mortgages these days, but this news release regarding a big chuck of cash being used to buy up Florida commercial real estate notes isn't as common and accordingly, is our news release of the week:

RER Equities, Inc. Closes on the Purchase of $33 Million Portfolio of CRE Loans from EuroBank

HERNDON, Virginia, July 20, 2012.

RER Equities, Inc., a private investment firm specializing in buying distressed real estate debt and underperforming properties, recently announced their latest acquisition of fifty one performing, sub­performing and non­performing notes secured by various commercial real estate and related assets. The aggregate unpaid balance of the notes totals $33,413,513. The seller was Coral Gables, Florida based EuroBank, a subsidiary of Banco do Brasil S.A. The notes are secured by real estate assets in Dade, Broward and Palm Beach counties.

The negotiated all cash transaction was completed in thirty days, from confidentiality agreement execution to closing. This transaction is the firm’s second Florida loan acquisition this quarter.

Christopher Kallivokas, Chairman of RER Equities, said, “With the South Florida real estate market starting to turn, we felt this was the appropriate time to pursue assets from banks that are prepared to resolve their distressed portfolios.” RER is actively pursuing other bank portfolios in Florida. Kallivokas commented, “Our experience in providing due diligence and valuation services on over $70 billion of loan portfolios for government insuring agencies, major Wall Street firms and financial institution acquirer’s has allowed us to develop a very unobtrusive procedure for quickly valuing a bank’s classified portfolio. We have found that a buyer that exercises extreme confidentiality, creates minimal disruption and reaches a reasonable price quickly is very attractive to portfolio sellers. Ten days into the process, we arrived at a strike price that met the bank’s expectations and was in line with our investment parameters. ”

Headquartered in Herndon, Virginia, a DC suburb, with offices in Coral Gables, Florida, RER Equities, Inc., has been acquiring distressed real estate related loans throughout the eastern United States since its inception in 1989. It is a member of the RER Financial Group LLC, a nationwide financial services firm specializing in the acquisition, valuation, management and servicing of commercial real estate ("CRE") loans and mortgages. For more information, visit RER Financial Group’s website: www.rerfin.com.

Contact:

Christopher Kallivokas

RER Equities, Inc.

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.

Florida real estate developers and those interested in investing in Florida real estate, from timeshares to condominium projects to shopping centers, restaurants, and other projects that serve the big Florida tourist industry, will be happy to see that Governor Scott is continuing his work in promoting the Sunshine Shine to tourists.  Here, our news release of the week:

Governor Scott Applauds Florida’s Tourism Marketing

Signs HB 1001 to increase confidence in Florida’s timeshare market

Continuing his focus on promoting Florida’s tourism industry and its economic impact, Governor Rick Scott thanked the Florida Legislature today for increasing state funding for VISIT FLORIDA by 55 percent. Funding for Florida’s official tourism marketing organization will total $54 million during the fiscal year beginning on July 1, compared to $34.9 million in Fiscal Year 2011-12.

“To keep Florida in the front of travelers’ minds, VISIT FLORIDA is constantly fine-tuning our tourism marketing to attract business travelers and vacationers from around the world,” Governor Scott said. “This investment is good for Florida taxpayers because for every dollar spent on tourism marketing, VISIT FLORIDA generates $177 in tourism spending and $11 in new sales tax collections.”

During a visit today to the University of Central Florida Rosen College of Hospitality Management in Orlando, Governor Scott also signed House Bill 1001, relating to timeshares.

“As visitors enjoy their vacation and business travel to Florida, it is only natural for them to want to figure out ways to keep coming back, and timeshares can be a way for vacationers to keep returning to our state,” said Governor Scott. “Unfortunately, several scams involving timeshare marketers eroded investors’ confidence in the timeshare system.”

Attorney General Pam Bondi’s office received nearly 7,000 complaints during a nine-month period last year, more than all other consumer-related complaints combined. The most common complaints included false claims that the marketer had a specific buyer ready to purchase or rent the timeshare, unkept promises that the property would be rented within a certain period of time, and failure to honor cancellation policies.

“This legislation will cut down on timeshare fraud and protect owners from unscrupulous resale companies,” Governor Scott said. “As we fight this fraud, integrity will come back into the system, and people can feel more confident investing in Florida, and in the timeshare market.”

Governor Scott thanked Representative Eric Eisnaugle and Senator Andy Gardiner for working to pass the legislation and commended Representative Mike Horner, who leads the Transportation & Economic Development Appropriations Committee, for his work to increase VISIT FLORIDA funding.

About Florida Tourism

As the state’s No. 1 industry, tourism is crucial to Florida’s economy – generating 23 percent of the state’s sales tax revenue and employing more than one million Floridians.

In 2011, tourism was responsible for welcoming 86.5 million visitors to Florida and generated $67.2 billion in direct economic impact.

VISITFLORIDA.com is the No. 1 trafficked state destination marketing organization website in the country.

For every dollar spent on tourism marketing, VISIT FLORIDA generates $177 in tourism spending and $11 in new sales tax collections.

VISIT FLORIDA’s vision is to establish Florida as the No. 1 travel destination in the world.

Every 85 visitors supports one Florida job, which means a growing tourism industry equates to increasing employment and a stronger economy.

More good news for Florida: another economic study has been released with numbers that reflect the Florida economy is bouncing back.  True, the report doesn't have the State of Florida bouncing back fast - but a slow and stead growth in a positive direction is something we all need to know.  Here, the news release of the week:

Florida Continues to Recover at a Modest Pace

- Job Growth Remains Modest

- Housing Supply is Easing on Low building

- Tourism Rebounds

TAMPA, FLORIDA--(Marketwire - June 18, 2012) - The Florida economy continues to recover at a modest pace. Real GDP grew a sluggish 0.5 percent in 2011 as construction output fell for the fifth straight year, offsetting solid 4.6 percent growth in accommodation and food services according to the State Monitor report released today by BMO Capital Markets Economics. Tourism has rebounded but visitor traffic cooled slightly in the 2011 Q4, down 1 percent year-over-year.

Job growth remains modest, with nonfarm employment rising less than 1 percent year-over-year in April. The real estate sector continues to gradually recover, up 3.3 percent from 2010, but construction employment continues to fade, hitting the lowest level since 1990. The jobless rate fell to 8.7 percent in April from 10.6 percent a year ago, one of the highest in America. The winding down of NASA's shuttle program will temporarily eliminate thousands of jobs until the Constellation program begins running (expected in 2015).

"Population growth picked up 1.2 percent in 2011 as net outward state migration appears to have stopped, but growth remains well below the pre-recession trends, "said Sherry Cooper, Chief Economist, BMO Financial Group.

Housing is showing signs of stabilization, but it is far from adding meaningfully to economic growth. Home prices were down 3.2 percent year over year in 2012 Q1 that's twice the decline seen nationally. The months' supply of homes for sale has fallen sharply in Miami, Tampa and Sarasota due to depressed new building activity and higher sales. While foreclosures are declining, the foreclosure rate was still extremely high at 14.3 percent in 2012 Q1, miles above the 4.4 percent national rate and the highest in America. Meantime, nearly 44 percent of mortgages remained in a negative equity position in 2011 Q3, the third highest in the country.

According to Dave Maraman, Florida President at M&I, a part of BMO Financial Group, "Florida businesses have started taking the opportunity to invest in their operations to improve productivity. We are providing our clients with sector expertise, local knowledge and mid-market focus to assist them with specific solutions to help them upgrade their businesses."

BMO Financial Group announced in 2011 that the company is making an additional $5 billion in business credit available to support the U.S. business-led recovery.

The full State Monitor report can be downloaded at www.bmocm.com/economics.

About BMO Financial Group

Based in Chicago, BMO Harris Bank N.A. provides a broad range of personal banking products and solutions through over 650 branches and approximately 1,350 ATMs in Illinois, Wisconsin, Indiana, Kansas, Missouri, Minnesota, Nevada, Arizona and Florida. BMO Harris Bank's commercial banking team provides a combination of sector expertise, local knowledge and mid-market focus throughout the U.S. Deposit and loan products and services provided by BMO Harris Bank N.A. Member FDIC. BMO Harris Bank(SM) is a trade name used by BMO Harris Bank N.A. BMO Harris Bank is part of BMO Financial Group, a North American financial organization with 1,600 branches, and a retail deposit base of approximately $180 billion.

Contact Information

Media Contact:

Beth Copeland

(317) 269-1395

beth.copeland@micorp.com

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)

It can be argued that no organization knows Florida real estate better than Florida Realtors (formerly known as the Florida Association of Realtors).  So, when Florida Realtors issues a release complete with its in-house economist giving optimistic projections about the housing industry and the banking industry to boot, then hands down this has got to be our "news release of the week."  

You can read the report referenced in the news release here.

Here from the Florida Realtors on May 4, 2012:

Florida Realtors®: Fla. 'Shadow' Inventory Easing, Growing Demand Should Absorb Supply

ORLANDO, Fla., May 4, 2012 /PRNewswire-USNewswire/ --

Fear of the unknown and what lurks in the shadows may be common, but it's greatly overrated when it comes to the "shadow inventory" of Florida's real estate market, says Florida Realtors® Chief Economist Dr. John Tuccillo.

"The fear is that the inventory of delinquent and foreclosed loans will be released onto an already weakened market," Tuccillo says, explaining the findings of a new report conducted by the Florida Industry Data and Analysis department. "But the reality appears to be different, even in Florida where distressed properties make up a significant portion of the market."

Tuccillo points out that lenders have no reason to flood the state's real estate market with more homes if doing so would drive prices down and impact the lender's profit. While some worry that lenders were holding back on purpose, Florida Realtors chief economist says that's not the case – the large number of distressed properties on hold was "largely the result of confusion over the rules of the game, and thus missteps by the lenders."

The study, "The Distressed Property Market and Shadow Inventory in Florida: Estimates and Analysis," reviewed data from Multiple Listing Service (MLS) providers around the state, along with data provided by CoreLogic, a statistical analysis company.

Tuccillo says, "We looked at the recent history of distressed property listings and transactions relative to normal market data, as well as estimates for the shadow inventory, and came to some conclusions about the likely course for the future."

Some of the study's findings include:

• While Florida remains one of the nation's hardest-hit states for distressed property sales, distressed property sales and listings have declined since late 2010, except for single-family-home short sales.
• Average prices for distressed and normal property sales have been stabilizing.
• In general, Realtors in Florida and lenders have learned how to cope with distressed properties in a way that stabilizes the market.
• Florida's highest percentage of distressed property (compared to total listings) occurs in the I-4 corridor and Southeast Florida; the lowest percentage occurs in Northwest Florida.
• Florida's shadow inventory was 550,000 units at the end of 2011, a decline of about 9 percent from its peak in the first quarter of 2010.
• Currently, the flow of new seriously delinquent (90 days or more) loans moving into the shadow inventory is offset by the roughly equal flow of distressed sales (short sales and REOs).
• The number of foreclosures and REOs was significantly lower in February of 2012 than one year earlier, suggesting slower shadow inventory growth.

Tuccillo predicts that while distressed properties will be a significant feature of the Florida real estate market over the next 10 years, it will be considered just one property type that a buyer can consider – one that has its own unique sales techniques and documentation.

The full report is available on Florida Realtors' member website, floridarealtors.org, at http://www.floridarealtors.org/Research/index.cfm; look under Research Reports, Residential, to select "The Distressed Property Market and Shadow Inventory in Florida: Estimates and Analysis."

Florida Realtors®, formerly known as the Florida Association of Realtors®, serves as the voice for real estate in Florida. It provides programs, services, continuing education, research and legislative representation to its 115,000 members in 63 boards/associations. Florida Realtors® Media Center website is available at http://media.floridarealtors.org.

SOURCE Florida Realtors

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Here at Florida Commercial News, we post major news announcements and press releases that impact Florida real estate investment and Florida land development as the "release of the week."

This week's big news item is the steady increase in residential real estate sales here in Miami, Florida, as reported by the Miami Realtors: Miami real estate has seen a steady increase in Miami home sales prices for the past 120 days, supporting the optimism of many Florida industry insiders that the Florida real estate market has hit bottom and is bouncing back -- good news for all Floridians.

Note: notice the impact of international real estate investors on these numbers....

Here, from the Miami Association of REALTORS:

Miami Home Prices Rise Significantly for Fourth Consecutive Month

For the fourth consecutive month, Miami home prices posted strong gains in March. The median sales price of condominiums in the Miami-Dade County surged 46 percent to $141,700 in March compared to a year earlier, according to the 26,000-member MIAMI Association of REALTORS and the local Multiple Listing Service (MLS) system. The median sales price of single-family homes rose 13 percent to $180,000.

Miami, FL (PRWEB) April 19, 2012

For the fourth consecutive month, Miami home prices posted strong gains in March. The median sales price of condominiums in Miami-Dade County surged 46 percent to $141,700 in March compared to a year earlier, according to the 26,000-member MIAMI Association of REALTORS and the local Multiple Listing Service (MLS) system. The median sales price of single-family homes rose 13 percent to $180,000.

“The fact that Miami home prices have significantly increased for four consecutive months indicates prices have bottomed and have caught up with sales levels,” said Martha Pomares, 2012 Chairman of the Board of the MIAMI Association of REALTORS. “We expect this trend to continue, as Miami increasingly attracts international buyers and investors, second and vacation home buyers, and migrating U.S. residents.”

Statewide median sales prices in March increased 20.8 percent to $105,000 for condominiums and 10.3 percent to $139,000 for single-family homes, according to data from Florida Realtors Industry Data and Analysis department and vendor partner 10K Research and Marketing. The national median existing-home price for all housing types was $163,800 in March, a 2.5 percent increase from March 2011.

In March, the average sales price for single-family homes in Miami-Dade County increased 21.8 percent, from $279,608 in 2011 to $340,634 in 2012. The average sales prices for condominiums jumped 23 percent, from $212,616 to $261,523.

Sales of existing homes decreased but remain at historically high levels. The sales of existing single-family homes in Miami-Dade decreased 12 percent in March, from 1,039 to 919, compared to record sales levels March 2011. Sales of condominiums were down 10.1 percent, from 1,542 to 1,387, compared to March 2011.

Statewide sales of existing single-family homes totaled 18,370 in March 2012, down 5.7 percent compared to a year ago. Statewide condominium sales totaled 10,012, down 12 percent from those sold in March 2011. Nationally, sales of existing single-family homes, townhomes, condominiums, and co-ops decreased 2.6 percent from February but were 5.2 percent higher than they were in March 2011, according to the National Association of Realtors (NAR).

“The Miami residential real estate market saw record demand that resulted in an all-time record for home sales,” said 2012 MIAMI Association of REALTORS Residential President Patricia Delinois. “This consistent demand coupled with fewer distressed properties being transacted has logically resulted in notable price appreciation unlike anywhere else in the U.S.”

Inventory Declines 34 Percent Year-over-Year

From March 2011, the inventory of residential listings in Miami-Dade County has decreased 34 percent from 18,883 to 12,379 in March 2012. Compared to the previous month, the total inventory of homes dropped 5.1 percent. Total housing inventory nationally decline 1.3 percent at the end of March but is 21.8 percent below a year ago.

Distressed Properties

Strong demand for bank-owned (REO) properties and improved processing of short sales has resulted in rapid absorption of distressed listings and contributed to price appreciation. In March, 49 percent of all closed residential sales in Miami-Dade County were distressed, including REOs (bank-owned properties) and short sales, compared to 52 percent in March 2011 and 54 percent the previous month. Contrary to a year ago, there are now more short sales being transacted than REOs.

International Buyers Fuel Cash Sales

In Miami-Dade County, 65 percent of total closed sales in March were all-cash sales, compared to 65 percent in February and 66 percent a year earlier. Cash sales accounted for 47 percent of single-family and 79 percent of condominium closings. Nearly 90 percent of international buyers in Florida purchase properties all cash. Nationally, all-cash sales were 32 percent of transactions in March, reflecting the stronger presence of international buyers in the Miami real estate market.

Note: Statistics in this news release may vary depending on reporting dates. Statistics reported by MIAMI are not impacted by NAR’s rebenchmarking efforts. MIAMI reports exact statistics directly from its MLS system.

About the MIAMI Association of REALTORS

The MIAMI Association of REALTORS was chartered by the National Association of Realtors in 1920 and is celebrating more than 90 years of service to Realtors, the buying and selling public, and the communities in South Florida. Comprised of four organizations, the Residential Association, the Realtors Commercial Alliance, the Broward County Board of Governors, and the International Council, it represents more than 26,000 real estate professionals in all aspects of real estate sales, marketing, and brokerage. It is the largest local association in the National Association of Realtors, and has partnerships with more than 100 international organizations worldwide. MIAMI’s official website is http://www.miamire.com.

Here at Florida Commercial News, we post major news announcements and press releases that impact Florida real estate investment and Florida land development as the "release of the week."

This week's big news item is the announcement of more development in Lake Nona as Florida Hospital announces a new, important expansion:

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Florida Hospital College of Health Sciences breaks ground on new five-story building to accommodate new programs

ORLANDO, Fla., April 10, 2012 - With an eye toward the future, Florida Hospital College of Health Sciences announced plans to expand its campus to accommodate more students and offer new programs in the health care field.

"With this new building, we are going to be able to educate and train more students in a variety of medical professions," said Dr. David Greenlaw, president of Florida Hospital College of Health Sciences. "Florida is a destination spot for many retirees around the country, so it is imperative that we respond accordingly to offer the best medical care training."

The new 90,000-square-foot, five-story building will feature a large multi-purpose room to host educational hospital and community events, as well as a medical simulation lab with infant, child and adult simulators. The new academic center will also house four clinical labs, five chemistry and biology labs, and a variety of other classrooms with the capability to broadcast courses to diverse geographic locations using the latest web streaming technology.

"Our students truly benefit from a hands-on learning experience," said Kathleen Wren, Ph.D., CRNA, Chair of the Nurse Anesthesia Program at the Florida Hospital College. "This new building will enhance what we are already doing with our students. Our proximity to Florida Hospital Orlando already provides our students with a valuable clinical learning experience and by creating more programs that are in demand, we will be able to train more future medical professionals."

In addition to the new building, the college is expanding its curriculum to offer doctorates in nurse anesthesia, physical therapy and pharmacy. The college currently has a master's program in occupational therapy and health care administration in additional to a variety of associate and bachelor's degrees ranging from nursing to diagnostic medical sonography.

Based on information compiled by the U.S. Census Bureau, it is estimated that by 2030 there will be 72.1 million people over the age of 65 living in the United States. In other words, the elderly will comprise 19 percent of the U.S. population, almost twice their percentage in 2000. With the aging population, as well as an increasingly health conscious society, Florida Hospital College has taken the initiative to prepare for the inevitable growing need for medical professionals.

Florida Hospital College of Health Sciences, located near downtown Orlando, specializes in allied health and nursing education. Founded in 1992, the college currently enrolls 2,700 students in its associate, bachelor's and master's degree programs. The college works closely with Florida Hospital to give students the clinical experience that only a major medical center can provide.

For media inquiries only, contact Florida Hospital Media Relations at 407-303-8217.