Tuesday's Top Stories
TUESDAY, AUGUST 5, 2008
TALLAHASSEE:
Crist Backs Property Tax Cut Proposal
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Florida Trend is...
Crist said Monday for the first time that he will work to help pass Amendment 5, which would eliminate most school property taxes, saving property owners at least 25 percent. But the measure would also require the Legislature to find other funds to replace the lost revenue, including raising the sales tax and possibly closing tax exemptions — a prospect that has drawn opposition from business and education groups. [Source: St. Petersburg Times]
ORLANDO:
Developer's Star Has Faded
Recent events have raised plenty of questions about whether Kuhn is truly the savvy real-estate entrepreneur some thought him to be. His defenders call him a "visionary," but what good is a vision without follow-through? Just eight months after he purchased the Church Street complex out of bankruptcy, Kuhn began to default in November on payments to his lender. [Source: Orlando Sentinel business columnist]
More from Trend: Cameron Kuhn: Still Mr. Big?
FLORIDA:
Gov. Kirk Blazed Trail Followed by Crist
He was a playboy bachelor, the first Republican governor of Florida since Reconstruction and a promising candidate for the vice presidency. His name was Claude Kirk Jr. Four decades later, the legend of Kirk endures. He was a Florida original, a pure character, a combination of Huey Long, P.T. Barnum and Jesse Ventura. At his inaugural ball in January 1967, the 41-year-old governor was accompanied by a ravishing, 33-year-old green-eyed blonde known only as "Madame X." If Charlie Crist weds Carole Rome, he will be the first governor to marry in office since the man the Miami Herald dubbed "Claudius Maximus" exchanged vows with Erika Mattfeld. [Source: Tampa Tribune]
More from Trend: Charlie's Way
BONITA SPRINGS:
Homebuilder Files for Chapter 11 Bankruptcy Protection
With Chapter 11 bankruptcy protection in place, WCI Communities now must look for ways to pare more than $1.9 billion in debt while keeping its doors open. Bonita Springs-based WCI, a cornerstone developer in establishing southwest Florida's gated golf course and condo retirement lifestyle, filed Chapter 11 bankruptcy protection Monday in Delaware, where it is formally incorporated. The company also announced that Chief Executive Officer Jerry Starkey, a 20-year veteran of WCI and its predecessor firm, has left the company. David Fry, 48, the former chief operating officer, is the interim chief executive officer and president. [Source: Fort Myers News-Press]
ALSO AROUND FLORIDA:
›School Voucher Proposals Remain on the Ballot [South Florida Sun-Sentinel]
One amendment would resurrect an abolished voucher program that allows parents to educate children in private schools with public money. The other would allow the state to give financial aid to churches and other religious institutions.
Despite Monday's ruling by Leon County Circuit Judge John Cooper, the state teachers union and the Florida Education Association vowed to continue its efforts to kill the amendments. School vouchers, the union and others say, drain money from already underfunded public schools.
›Big Budget Deficit Ahead for Florida [Orlando Sentinel]
Florida's sagging economy will push state government back into the red this month and force Gov. Charlie Crist to either further cut spending or tap deeper into the state's reserves.
Florida's sales and real-estate tax revenues have continued to plummet this year, forcing Crist in June to order all state agencies to hold back 4 percent of the $25.7 billion operating budget for the fiscal year that began July 1.
›Publix, Other Grocers Report Depressed Quarterly Profits [St. Petersburg Times]
A new study by TNS Retail Forward, a retail think tank, found 20 percent of food shoppers switching stores for cheaper prices. And they are shaving food bills by trading down to store brands, buying less food and eating at restaurants less frequently. Experts blame a stagnant economy and shaky job security for this surge in consumer thriftiness.
In the past week, Publix, Winn-Dixie and the owners of Sweetbay Supermarket reported depressed quarterly profits and meager same-store sales gains of 1 percent to 2 percent.
›TECO Plans to Build Natural Gas Pipeline [St. Petersburg Times]
"Most of the power plants built in Florida in the last 10 years, and most of those that will be built in Florida in the next 10 years, run on natural gas," said Bill Cantrell, president of TECO Energy subsidiary Peoples Gas. "We see it as really a growth opportunity for us."
›Manatee County Approves Teacher Pay Cut [Sarasota Herald-Tribune]
Board members voted unanimously to support Schools Superintendent Roger Dearing's recommendation to reduce teachers' pay by cutting two working days per year from their schedule. The proposal, part of a plan to cut $21.4 million from the district's annual budget, also includes a freeze on pay increases and lowers the entry—level salary for teachers by 2 percent.
›Offshore Oil Drilling Tough Issue for the Candidates [Miami Herald]
Sens. John McCain and Barack Obama have changed positions on offshore oil drilling as voters cry out for relief from gas prices. Forget terrorism or Social Security. The 2008 election is increasingly turning on $4-per-gallon fuel.
›Expect a Boom of Florida Baby Boomers [Orlando Sentinel]
The Sunshine State is about to boom with boomers. Between 2010 and 2030, baby boomers (born between 1946 and 1964) are expected to descend on Florida in even larger numbers and will increase their standing as the state's largest age group.
The reasons: They are nearing retirement age, the state's housing prices have become more affordable and Florida's tropical climate remains a draw.
›New Housing Law is Ray of Hope [Tampa Tribune editorial]
New federal help for the big mortgage lenders and first-time homebuyers could help revive Tampa's housing market. The quicker markets stabilize, the less taxpayers will have to pay in the complex bill with an unknown price tag.
President Bush signed it last week, but we don't blame him for doing it quickly, without fanfare.
›Suit Claims Rep. Buchanan Skirted Campaign Finance Laws [Tampa Tribune]
A former employee has filed a lawsuit accusing U.S. Rep. Vern Buchanan of falsifying business documents in the operation of a Venice car dealership.
The lawsuit also says Buchanan skirted federal campaign laws by reimbursing dealership employees for contributions they made to his political campaign.
›Conference to Focus on New Economy [Tallahassee Democrat]
Tallahassee area business and civic leaders will converge on Amelia Island Plantation this weekend for the annual Chamber Community Conference and a series of sessions on how companies can survive a shaky economy. "The greatest, principal difference this year is that everybody is aware, painfully so, that we're in a very difficult economy," said Ron Sachs, chairman of the Greater Tallahassee Chamber of Commerce.
›Buyer Wants Out of Trump Condo-Hotel Deal [South Florida Sun-Sentinel]
The Trump International Hotel & Tower project on Fort Lauderdale beach Monday became the latest condo-hotel development to face a legal battle from an unhappy investor.
John Taglieri, of Nahant, Mass., filed a lawsuit asking for his $146,000 deposit back and other damages, alleging that he was misled into signing a contract for a $730,000 unit in 2005.
›Citizens Forcing 350,000 Windstorm Clients to Reapply for Coverage [Palm Beach Post]
Florida's largest property insurer, Citizens Property Insurance Corp., has started telling its 350,000 windstorm customers that their policies won't be renewed unless they reapply for coverage.
The change, which will begin in February and extend through January 2010, is part of Citizens' switch to a new computer system designed to streamline the issuing of hurricane-wind policies for customers east of Interstate 95 in south Florida.
›New Insurer Willing to Take on Florida's Risky Business [Orlando Sentinel]
John Adhia, 43, president of Tampa-based Avatar Property & Casualty Insurance, which recently started offering homeowners policies throughout the state: "Florida needs new insurance companies. When the traditional players like the Allstates and State Farms of the world are leaving or nonrenewing, we have a window of opportunity." From Trend: A Game of Risk
›Long Odds for Accord on Energy Policy [Sarasota Herald-Tribune]
Though the nation desperately needs a comprehensive energy policy, U.S. Rep. Vern Buchanan said Monday there is almost no chance Congress will make any progress on the issue this year. Buchanan, R-Longboat Key, said both Democrats and Republicans agree a policy must be created, but neither party is willing to let the other score political points with the public.
›Related Group, Cousins Complete 50 Biscayne Sales [South Florida Business Journal]
The Related Group and its partner, Atlanta-based Cousins Properties (NYSE: CUZ), have closed on the sale of the remaining 120 residential units at 50 Biscayne, a 54-story, 528-unit luxury condominium tower in Miami.
The buyer is a partnership of the Related Group and private equity firm Lubert-Adler Partners.
Peter Zalewski, who tracks closing activity through his Condo Vultures Realty, believes the bulk buying strategy is to rent the units to cover the maintenance and taxes, then sell them in about five years, when the market should be better.
›Property Tax Plan Fails in Deltona [Orlando Sentinel]
To the relief of landowners, some of whom had driven for hours or flown in from out of town, the Deltona City Commission killed a tax plan that would have slapped about 200 property owners with a total of $83 million in taxes over 30 years.
›Rubio, Rivera Criticize Cuba Travel Agencies [Miami Herald]
Two Florida legislators -- Marco Rubio, speaker of the House of Representatives, and state Rep. David Rivera -- on Monday accused the agencies that offer travel packages and send packages to Cuba of making false allegations during a trial in Miami federal court to determine the validity of a new state law that imposes high fees and tighter restrictions on that industry.
›62 Lee County Illegal Immigrants Nabbed [Fort Myers News-Press]
As part of a five-day law enforcement operation, 62 immigration fugitives and violators, including six gang members, have been arrested in Lee County. The operation was carried out last week by U.S. Immigration and Customs Enforcement, as well as the Lee and Collier county sheriffs' offices, with a focus on Lee County, according to ICE spokeswoman Nicole Navas.