Bill Gaines, a Cocoa Beach bartender, is as close to the economy as anyone these days. His insights come from noticing when patrons buy expensive cocktails, and cheaper ones. As with the stock markets and the economy overall, the drink choices fluctuate. What's been steadier, unfortunately for Gaines, has been a decline in the tips he receives. "I have seen the tip amount dwindle considerably during the last few years," Gaines said, attributing the slide to the economic downturn and a clientele that's increasingly unwilling to tip generously. What Gaines likely is experiencing is what Michael Lynn, professor of consumer behavior and marketing at Cornell University's School of Hotel Administration, calls a "triple whammy" hitting wait staff in the struggling economy. People have been dining out and going to bars less, Lynn said, so that means fewer people to leave tips. Also, when they do go out, consumers are spending less, which means smaller checks to base the tip on. And many waiters and waitresses are getting fewer hours as restaurants look to reduce costs, which translates to fewer opportunities to earn tips. This trend is particularly significant in Florida, where the $57 billion hospitality industry, which includes restaurants, employs 900,000 people, making it the state's largest employer. [Source: Florida Today]
Florida Law: Snap Judgment
Every officiating crew in the National Football League consists of nine members — seven on the field and two in the instant replay box. Each official has a designated role during the game, but as umpire, J. Jeffrey Rice must both police the trenches, where the offensive and defensive lines do battle. He also serves as the go-to crew member when questions arise about the rules. Rice says the skills he exercises while wearing a striped shirt on Sunday aren't too different from those he uses in his weekday life as an attorney in Fort Myers. "In court, I've got to know the law. I've got to be able to make split-second decisions or react to a judge's question," Rice says. "When I'm on the field, I have to know the rules backwards and forwards because I have to make split-second decisions there, too." Growing up, Rice played football and other sports. While in law school at Case Western Reserve University in Ohio, he started officiating high school football games to help support himself and to stay involved in athletics. Now in his 16th year with the NFL, he still likes being part of the game, and the weekly stipends supplement his law income — NFL refs earn between $2,500 to $8,000 a game, based on seniority. Continue reading Snap Judgment.
 "I'm kind of the policeman of the game," says attorney/umpire Rice (left). [Photo: Phil Coal/AP] |
More suspects to be charged with fraud in Rothstein racket
Four more people are expected be charged in connection with the $1.2 billion Ponzi scheme orchestrated by convicted Fort Lauderdale attorney Scott Rothstein, federal sources said Tuesday. Three former employees of his now-defunct firm and one other person will likely surrender this week on one charge of conspiracy to commit wire fraud, the sources said. Rothstein was arrested in 2009, charged with racketeering, money laundering and fraud related to a scheme in which he sold fabricated legal settlements to wealthy investors. Last June, the disbarred lawyer was sentenced to 50 years in prison and ordered to repay $363 million to some 320 victims from South Florida, the Northeast and elsewhere. But authorities have recovered only a fraction of those losses. [Source: Miami Herald]
Tough economy makes marriage a balancing act
It was persistence that led to "yes" when Leonardo Cicarelli, a charismatic insurance agency owner, asked out Candice Fong on New Year's Eve. But Fong, a market development manager for a wireless phone company, says when she walked down the aisle at her wedding last month, she knew her new husband's equal persistence as a business owner comes with job-related stress. "I'm going to have to help him learn to vent and move on." As we head into summer, wedding plans kick into full gear. But before couples head down the aisle, they should know what it takes to go the distance these days. New studies by Pew Research show the divorce rate has declined over the past 20 years, but at the same time, fewer people are getting married. Strong marriages take investment. Today, people are working longer hours, making less time for spouses and feeling too exhausted for sex. Even more, job stress, now at a high, can change the chemistry between couples, making a marriage fragile. [Source: Miami Herald]
Florida banks post profit for first time in three years
Financial institutions in Florida earned $18 million in the first quarter, their first profit in three years. But four in 10 of those banks and thrifts are losing money, a sign the state's pummeled financial industry is still struggling to recover.
Banks nationwide posted net income of $29 billion in the first quarter of 2011, up 66 percent from last year and their best performance since the onset of the financial crisis, according to data released Tuesday by the Federal Deposit Insurance Corp.
The FDIC's confidential list of troubled banks added just four names in the quarter to 888, the smallest increase in 31/2 years. Those banks hold $397 billion in assets, up from $390 billion.
That still puts nearly 12 percent of the nation's banks at risk of failing.
"The process of repairing bank balance sheets is well along, but is not yet complete," said FDIC Chairman Sheila Bair.
[Source: Sarasota Herald-Tribune]
ALSO AROUND FLORIDA:
› Spirit Air seeks share sale at discount to JetBlue, Southwest
Spirit Airlines Inc., the U.S. carrier that charges for carry-on luggage, is seeking to sell shares today at a discount to bigger low-cost airlines as rising fuel prices crimp industry profits and force higher fares.
The airline is offering 20 million shares at $14 to $16 each to raise as much as $320 million, according to a regulatory filing. At the midpoint, Miramar, Florida-based Spirit would be valued at about $951.6 million, or 13 times 2010 earnings. That compares with 19 times for JetBlue Airways Corp. and 21 times for Southwest Airlines Co. (LUV) Allegiant Travel Co. (ALGT), the closest to Spirit in size, trades at a multiple of 14.
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SPORTS BUSINESS
Play Money The finances of pro athletes too frequently follow a riches-to-rags trajectory. Not the least of their challenges involves finding a good financial adviser. |
› UF scientists devise new way to analyze epidemics
An international team of researchers led by the University of Florida has created a new way to analyze the spread of dangerous viruses, according to a study published online today in Nature Communications.
The method uses sets of mathematical rules to do something software cannot easily accomplish — analyze subtle DNA differences to more fully understand health threats such as HIV, hepatitis or even influenza.
Information about sexual habits, intravenous drug use and other behaviors or characteristics that play a role in HIV transmission can be found through comprehensive interviews with large numbers of people. But even with that exhaustive analysis, the fine elements concerning the distribution of the virus can be unclear.
The new technique can ascertain similar information — and more — by taking DNA sequences from patients and partitioning them according to differences in how the virus evolved. By quickly characterizing how the virus spreads, researchers can discover information about the demographics of the people being infected and the drug-resistance of the virus. The information can shape prevention measures to thwart potential epidemics.
› Florida explorers take Spanish treasure claim to court
Florida deep-sea explorers are asking a U.S. federal appeals court to overturn a judge's ruling that 17 tons of treasure recovered from a sunken Spanish galleon belongs to Spain.
Tampa-based Odyssey Marine Exploration ( OMR - news - people ) asked a three-judge panel of the 11th Circuit Court of Appeals on Tuesday to give it the rights to an estimated $500 million in coins and artifacts salvaged about four years ago. A federal judge in Tampa ruled in 2009 that Spain is the rightful owner of the treasure from the navy frigate Nuestra Senora de las Mercedes y las Animas.
› Orlando sets visitor record at 51.5 million
Orlando's tourism-promotion bureau announced today that a record-breaking 51.5 million people visited the Orlando area last year.
The final visitor count for 2010 topped the old record of 49.3 million people who flocked to Central Florida in 2005.
Orlando won an unofficial race with New York to become the first U.S. travel destination to draw 50 million visitors in a single year.
New York Mayor Michael Bloomberg announced earlier this year that the Big Apple drew 48.7 million visitors in 2010. The Bloomberg administration set a goal in 2007 of reaching 50 million by 2012.
› Investors hope Office Depot CEO decision means change
Office Depot's stock ticked up Tuesday, following an after-market announcement Monday that the company had named interim CEO Neil Austrian as permanent chief executive. The stock closed at $4.17, up 15 cents a share.
But analysts said the price advance suggests investors are banking on change: a potential merger or sale for the Boca Raton-based office-supply retailer.
Austrian's appointment "was surprising to me," said Anthony Chukumba, analyst with BB&T Capital Markets. "I thought the company was going to bring in an outsider with a fresh set of eyes and perspective, who could make the necessary changes." Chukumba said Tuesday's bump up in stock price could signal that investors think management will try to sell the company. A combination with competitor OfficeMax would allow the merged companies to consolidate and give it more leverage with suppliers, he said, but he doesn't see a deal in the "near future."
› EA is getting older, but keeping its edge
EA Tiburon is starting to show its age.
The staff at the Maitland video-game studio still consumed three tons of Captain Crunch and other cereal and 5,000 gallons of milk last year (there's a free cereal bar on every floor), there's still a ball pit in the middle of a circular conference table and the company still hands out an annual award for the best office prank.
But the company known for pushing the kind of creative environment made popular by Silicon Valley startups is growing up.
The average age of its Maitland employees is now 34, an increase from the upper-20s. "A lot people are married and have kids," said Daryl Holt, chief operating officer for the studio.
Could the company, one of Orlando's tech darlings known for its high-wage jobs, innovative employees and games such as Madden NFL and Tiger Woods PGA Tour, be losing its edge?
Go to page 2 for more stories ...
› On orders from Gov. Scott, Swiftmud eliminates seven basin boards
In a move they said was dictated from Tallahassee, Southwest Florida Water Management District board members voted Tuesday to get rid of seven volunteer boards that help with everything from restoring Tampa Bay to planning for future water needs.
The seven basin boards had their own budgets and taxes, and some had been around longer than the water district itself. But as of May 31, they will all be gone.
The proposal to disband all the basin boards wasn't included in the meeting agenda posted online, according to Todd Pressman, who cast the lone no vote. Instead it came up during a discussion of ways to cut the budget.
But the leaders of the state agency commonly known as Swiftmud were well aware this was coming, Pressman said, and that it was being pushed by Gov. Rick Scott and his staff.
"It's been in the works from Tallahassee for a few months," said Pressman, a Clearwater political consultant and chairman of the Pinellas-Anclote River Basin Board.
› EverBank considers moving 1,000 employees, adding 200 new jobs
EverBank is considering a major move to downtown Jacksonville that would include relocating at least 1,000 employees from its Southside facilities. It would also add 200 new, full-time jobs.
The Jacksonville-based bank wants $2.75 million from the city to help with the estimated $26 million cost of the move
The proposal from Mayor John Peyton will go before Jacksonville City Council tonight. It would require that the bank maintain at least 1,000 employees downtown during the first five years of the contract.
EverBank announced Tuesday that downtown was one of the areas it was considering as a site to consolidate its operations.
› Expressway, state reach deal to build Wekiva Parkway
Metro Orlando's major road-building authority and the state are joining forces to build the Wekiva Parkway, $1.8 billion missing link in the region's beltway.
The two agencies aim to break ground on the 26-mile toll road as early as spring of next year, with completion within seven years. Yet, many details remain to be worked out, most importantly how to pay for the project. A plan could be developed by August.
The deal will be announced Wednesday morning during a meeting of the board of the Orlando Orange County Expressway Authority. Ananth Prasad, newly appointed secretary of the state Department of Transportation, also will attend.
The arrangement comes less than a month after state lawmakers threatened to force the authority to pay the state $50 million annually for 35 years to pay for building the parkway. That plan, however, died during the legislative session.
› AutoNation marks 8 million vehicles sold
Fort Lauderdale-based AutoNation on Tuesday marked the sale of its 8 millionth vehicle: a Honda Fit sold to a woman just back from U.S. Army deployment in Afghanistan.
The 14-year-old company called the sale an "auto retail first." AutoNation had sold its 5 millionth vehicle in February 2005, underscoring its speedy growth. The company now has 247 new vehicle franchises in 15 states.
The company celebrated the occasion by surprising U.S. Army civil affairs specialist Wendy Byrd Kang with her car as a gift. Chief Executive Mike Jackson and company founder H. Wayne Huizenga presented her the keys Tuesday at the Honda of Dulles store in Virginia when she came to pick up her purchase.
› 70 positions cut in Macclenny mental health facility
The state mental health facility in Macclenny will lose about 70 positions because of budget cuts to the Florida Department of Children and Family.
Northeast Florida State Hospital, which survived efforts this year from Gov. Rick Scott to privatize state mental health facilities, will have to cut about 7 percent of its personnel, DCF spokesman Joe Follick said.
In an effort to save doctors, nurses, administrators and other workers whom Follick called the "frontline people," the hospital plans to cut mostly support staff, such as custodial and food-service employees.
"...The employees at these facilities are great," Follick said. "This is not an indication of their value that these decisions are being made."
The Legislature reduced the department's budget by $48 million, which means cutting 480 positions in all. Half of those positions will come from the state's three mental health hospitals in Gainesville, Chattahoochee and Macclenny.
› SBA recognizes Floridian for her outstanding disaster recovery efforts
The U.S. Small Business Administration's Field Operations Center -- East (FOCE) provides federal disaster assistance to homeowners, renters and businesses of all sizes in the eastern half of the country. Each year they search for candidates to honor with their Perseverance Award. The candidates are business owners, public officials and/or volunteers who displayed selflessness, determination and resolve in the aftermath of a disaster.
"The Perseverance Award is an acknowledgement of an individual's effort and recognition of the contributions they make toward the recovery of their communities," said Frank Skaggs, Director of SBA's Disaster Field Operations Center in Atlanta. "Each of the recipients displayed tremendous courage and resourcefulness in the disaster's aftermath, which exemplifies the spirit one must have to recover." Perseverance Award winner: -- Brenda Bryson- Coastal Printing Services, Inc., Panama City Beach, FL --By the summer of 2010, many businesses in Florida became economically devastated by the impact of the Deepwater BP Oil Spill. Reports of the oil spills sweeping toward Panama City Beach and sightings of tarballs on its pristine beaches resulted in a huge decline of tourism state-wide. Although some affected businesses were able to earn income by assisting in the cleanup, others continued to experience significant loss of revenue. Bryson sought disaster assistance from the SBA and was able to keep her business open. For her actions to take measures to overcome the obstacles presented by the disaster and for retaining a majority of her employees, Bryson earned the Perseverance Award for a business owner whose company recovered from a significant disaster-related loss.
› Sharky's on the Pier ready to expand to 550 seats
One of Venice's largest waterfront restaurants would nearly double in size if the City Council agrees with Sharky's on the Pier's latest expansion plans. City Council meeting.
The restaurant, on city-owned beachfront land, seats about 300 and has been approved to build a two-story addition with a new courtyard, second bar and kitchen and about 160 new seats. The owners, citing in part the city's need for money, want to add another 150 seats, raising the capacity to 550.
"It would provide the opportunity for increased sales and therefore increased rent to the city," said Mike Pachota, in a letter to the acting city manager.
The Venice Pier Group, Sharky's owner, now pays about $407,000 annually to the city. That includes $13,454 in annual rent with 5 percent on gross sales above $300,000. In fiscal year 2009, that came to $407,266.
Sharky's owners have proposed paying the city about $405,000 for parking spaces that the city recently built - but no additional rent.
Acting City Manager Nancy Woodley is recommending that the council approve the plan because of the potential added revenue brought by additional seating.
› Federal contracting opportunities for women topic of UNF seminar
The University of North Florida Small Business Development Center Network Procurement Technical Assistance Center will present a seminar to explain the Women-Owned Small Business Federal Contract Program Thursday.
The seminar is from 9-11:30 a.m. Thursday at the University of North Florida University Center.
The program is aimed at increasing federal contracting opportunities for small businesses owned by women and economically disadvantaged women.