property

Distressed Sales Volume Remains at Elevated Levels Despite Big Boost in Non-Distressed Sales in Recovering Economy

March 15, 2012

Distressed trading volume has stabilized but continues to remain at elevated levels, increasing by approximately 2% last year over 2010. However, a surge in non-distressed property trading driven by improving economic conditions has begun to mitigate its impact on commercial real estate pricing levels overall. According to CoStar Group data, the volume of distressed transactions in December 2011 remained well above the average monthly volume for…

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Plenty of Recession Damage Still Left To Undo

March 15, 2012

The commercial real estate rubble still left over from the Great Recession continues to exact a punishing toll on property values and owners’ and lenders’ books. In this statistical state analysis, CoStar Group has identified 168,580 office, flex, industrial and retail properties in its national property database with a vacancy rate of 60% or more. The number of properties by type at this level of vacancy distress is as follows: Retail: 67,525…

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BAM Backs Perot With $400M Joint Venture Targeting Industrial Real Estate Investment

March 14, 2012

Brookfield Asset Management (NYSE: BAM) formed a joint venture with Hillwood, the Dallas-based real estate investment and development firm owned by Ross Perot, Jr., to acquire, develop and manage industrial property across the U.S. Backed by an equity commitment of $400 million, the venture could deploy up to $1 billion buying up industrial property within three years, principally large warehouses. Hillwood will be tasked with selecting suitable…

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PG&E’s Inks 250,000-SF Office Lease in San Ramon

March 14, 2012

Pacific Gas and Electric plans to move the majority of its gas operations to Bishop Ranch, a 585-acre business community in San Ramon, CA. The utility supplier finalized a 10-year lease for 250,000 square feet of office space at 6121 Bollinger Canyon Road. Built in 2003, Building Z is a five-story, 250,000-square-foot office building in in the East Bay/Oakland market. Sunset Development Co. owns the LEED Gold certified property. Bishop Ranch…

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Big Banks To Pay Millions In Settlement With NY Over Mortgage Practices

March 14, 2012

* JPM, BofA and Wells Fargo partially settle NY lawsuit * Citi, Ally Financial also part of $25 mln deal * Banks did not admit any wrongdoing * NY state warns of future lawsuits By Basil Katz and Karen Freifeld NEW YORK, March 14 (Reuters) – Five major U.S. banks have agreed to pay $25 million to New York State over their use of an electronic mortgage database that the state said resulted in deceptive and illegal practices that led to more than 13,000 foreclosures. JPMorgan Chase & Co, Bank of America Corp and Wells Fargo & Co each agreed to pay $5.9 million in order to partially settle a lawsuit over their use of the Mortgage Electronic Registration System (MERS), Two other banks, Citigroup Inc and Ally Financial, also agreed to pay $5.9 million and $1.25 million respectively although they were not named in the Feb. 3 lawsuit. It was not immediately clear why Citi and Ally opted to participate in the settlement, although they are in the process of settling other similar claims. All five banks in February reached a settlement with 49 states and federal agencies to pay $25 billion to resolve government lawsuits over faulty foreclosures and the handling of requests for loan modification. In the New York settlement in February, none of the banks admitted nor denied the MERS allegations, the agreement said, a copy of which was obtained by Reuters on Tuesday. MERS is an electronic database created in the mid-1990s for tracking mortgage ownership. New York State Attorney General Eric Schneiderman said in his lawsuit that the system was plagued by inaccuracies. In exchange for the $25 million, New York State has agreed to drop some specific MERS claims. The state will use the money to address housing issues, such as mortgage defaults and foreclosures and further investigation and prosecutions. Citigroup, JPMorgan and Ally declined to comment on the settlement, while spokespeople at the other two banks were not immediately available. FUTURE LAWSUITS Other allegations in the New York lawsuit have not been resolved and the state said it will still pursue claims for damages incurred by New York borrowers and homeowners. “We intend to aggressively litigate this case to finally prohibit the widespread illegal and deceptive practices of the banks set forth in our complaint,” Danny Kanner, a spokesman for Schneiderman, said in an email on Tuesday. “The significant sum of $25 million obtained by this office does absolutely nothing to limit the aggressive posture we will continue to take to protect homeowners and borrowers.” The lawsuit said the use of MERS resulted in the filing of improper NY foreclosures and created “confusion and uncertainty” over property ownership interests. Over 70 million mortgage loans, including millions of subprime loans, have been registered in the MERS system, rather than in local county clerks’ offices, according to the lawsuit. Nearly 11 million Americans owe more than their homes than they are worth, after home values fell 33 percent from a 2006 peak fueled by generous loans, often to people with dubious credit records. The earlier $25 billion housing settlement gives President Barack Obama, as he seeks re-election in November, a chance to show he is willing to get tough with big banks to help ordinary Americans survive the pain of the nation’s foreclosure crisis. The deal, to be spread out over three years, requires the banks to cut mortgage debt amounts and extend $2,000 payments to borrowers who lost their homes to foreclosure. But the banks still face a host of other potential government enforcement actions and investor lawsuits related to their packaging of home loans into securities, and other mortgage-related activities. In January, Obama announced the creation of a new working group to coordinate inquiries into abusive home-loan lending and the pooling of risky mortgages that sparked the housing crisis. Schneiderman was tapped to help lead the group.

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Real Estate Deals A Double Blow To Small Businesses

March 13, 2012

Randy Truckenbrodt has just as many headaches as he does properties. The co-owner of Randall Industries, an Elmhurst, Ill.-based company that rents and sells construction equipment , has spent more than 20 years acquiring personal, investment and business real estate, including a home in Indian Head Park, Ill., an investment property in New Buffalo, Mich., two small farms in Lockport, Ill., and three business properties in Florida. This growing empire has become not an asset but a drag on his business as many of these properties are now underwater, with some vacant and others tied up in major disputes with banks. Like many small-business owners, Truckenbrodt has used his properties to leverage his business, and since his assets have lost value, he’s unable to rent them out to raise money for his business. “What affects me personally affects the company,” Truckenbrodt said. In recent years his company’s employee count has dropped from 195 to about 115. The proceeds from his Florida business property rentals have declined from $15 million in revenue four years ago to $3.5 million. Entrepreneurs like Truckenbrodt who own small businesses and real estate may be suffering from a one-two punch following the Great Recession, with declines in both their companies’ income and their real estate’s value. Many of these small-business owners might experience financial difficulty until the real estate market recovers. And this involves a large majority of entrepreneurs. About 92 percent of small-business owners own some form of real estate, according to a study last month by the National Federation of Independent Business . About 89 percent of small-business owners own a home, while more than 20 percent own their place of business and 35 percent own investment properties, according to William J. Dennis, a senior research fellow at the federation and author of the report. “What [entrepreneurs] have frequently done in the past is either mortgaged the proceeds and put that back into the business or collateralized it for business purposes,” Dennis said. “When the housing market fell apart … they took a huge nosedive. They lose an enormous amount of value, which means not only can’t they borrow on it, but there’s also a wealth effect, in that you tend not to spend when you don’t think you have anything to back it up.” Truckenbrodt is feeling the pain. “Instead of investing in my business, I’m doing everything I can to pay debts down,” he said. “I used to leverage [these properties] for business, and now I’m just trying to get out of the grasp of these banks.” Their grip has tightened as Truckenbrodt has tried to get a new mortgage on his home and keep up with his existing property loans through the recession. Though he previously owned his home outright, he wanted to take out a new mortgage but was turned down as a result of his company’s losses. “They almost do a strip search to get a loan approved on a mortgage,” Truckenbrodt said. “It’s unbelievable the information they’re asking when you think just a few short years ago, people were walking in off the streets with virtually no verification of employment. It’s gone totally in the other direction.” And the decline in real estate value and demand pose a huge burden. Truckenbrodt’s commercial buildings were assessed at half the amount he bought them for four years ago. “We have an empty building,” he said. “There are empty buildings everywhere.” Perhaps the most frustrating situation Truckenbrodt has encountered was when a bank wanted to charge him $85,000 in fees for a fairly standard loan covenant waiver and, when he balked, said it would raise the interest rate to 13 percent on his $5.5 million loan instead. Though the bank eventually backed down, Truckenbrodt claims that being a business owner who meets his financial obligations in a punishing real estate market is a challenge. “The banks are coming in and whacking anyone who can pay their bills. If you can show any hint of staying power, they’re going to come after you, raise your rates, try to hit you with penalties,” he said. “Banks have seen a lot of pressure from the regulators to address underperforming or underwater loans,” said Scott Talbott, senior vice president of government affairs for the Financial Services Roundtable, a trade association representing 100 of the largest financial services firms. That pressure from regulators is part of the reason why banks are toughening their standards, he said. “The reality is real estate, whether it’s your home — or the land on which your business is built — has declined, and this decrease in assets makes it harder to get access to credit,” Talbott said. “Financial services firms are working harder to help homeowners and business owners deal with the decrease in real estate, primarily through loan modifications.” When it comes to helping small businesses recover fully, politicians and bankers need to look at broader economic issues raised by the recession, said Dennis of the National Federation of Independent Business. “This is all tied together, and any single-minded approach really misses the point.”

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You Could Buy The ‘Nation’s Smallest Town’

March 13, 2012

The sole resident of one Wyoming town has called himself its owner, and mayor, for years. But now, for a relative bargain, you could take that title away from him. Don Sammons, the sole resident of the town of Buford, Wyoming, is putting his property, and hence entire town, up for auction at the starting price of $100,000, the Wyoming Times reports ( h/t The Atlantic ). The deal includes a U.S. zip code, a historic school building, a three-bedroom home and the town’s only source of revenue, a gas station and convenience store called the Buford Trading Post . Sammons purchased the town in 1992 with his wife and son, but after his wife passed away several years ago and his son moved out, he says it’s about time to move away from what some say is among the smallest towns in the country . It may come as no surprise that one of the smallest towns in America is located in Wyoming — the state has the lowest population in the nation with an estimated 509,293 people, according to TIME . But the town wasn’t always so tiny. It was once home to a booming population of about 2,000, attracting guests like the honorable President Ulysses S. Grant, and the not-so-honorable Butch Cassidy, the bandit immortalized on the big screen by Paul Newman, according to the Wyoming Times . That the asking price for Buford is so low may be surprising, even when taking into account that its 8,000 foot elevation can make for some seriously inclement whether . Still, a prospective buyer could potentially purchase the entire 10 plus acre town for a little more than the average price of a new home in 2010 at $272,900 . In fact, Buford is a real bargain compared to many other towns that have recently gone up for sale. Even a medieval town in France, home now to “thieves, drunks and squatters” as well as some crumbling buildings, according to nearby residents, was put up for sale last month for the asking price of $436,370 — more than four times that of Buford’s starting price. But if you’ve got some extra cash to splash, why not buy a personal island? Red Rock Island in San Francisco bay, rumored to be the home of buried pirate treasure , was recently put on the market for $9 million .

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India Cancer Ruling Opens Door For Cheaper Drugs

March 13, 2012

* Indian authorities issue first compulsory license * Drugmakers target India growth, but wary of patent regulations * HIV/AIDS, heart disease treatments targeted by campaigners (Adds link, smends headline) By Kaustubh Kulkarni and Henry Foy MUMBAI, March 13 (Reuters) – India’s move to strip German drugmaker Bayer of its exclusive rights to a cancer drug has set a precedent that could extend to other treatments, including modern HIV/AIDS drugs, in a major blow to global pharmaceutical firms, experts say. On Monday, the Indian Patent Office effectively ended Bayer’s monopoly for its Nexavar drug and issued its first-ever compulsory license allowing local generic maker Natco Pharma to make and sell the drug cheaply in India. It is only the second time a nation has issued a compulsory license for a cancer drug after Thailand did so on four drugs between 2006 and 2008, also on affordability grounds. Thailand also issued licenses for HIV/AIDS and heart disease treatments. “This could well be the first of many compulsory rulings here,” said Gopakumar G. Nair, head of patent law firm Gopakumar Nair Associates and former president of the Indian Drug Manufacturers’ Association. “Global pharmaceutical manufacturers are likely to be worried as a result … given that the wording in India’s Patent Act that had been amended from ‘reasonably priced’ to ‘reasonably affordable priced’ has come into play now.” The new wording is seen as a lower threshold for compulsory licenses, which can be issued under world trade rules by nations that deem major life-saving drugs to be too costly. The licenses allow them to authorise the local manufacture or importation of much cheaper, generic versions. Global drugmakers see emerging markets such as India as key growth opportunities, but remain concerned over intellectual property protection. Nair said HIV-related medicines were likely to be the most at risk by compulsory licenses in the future. India has one of the world’s fastest-growing rates of HIV and heart disease is also the country’s biggest killer, but widespread poverty in Asia’s third-largest economy makes many non-generic drugs unaffordable for millions. Currently, Pfizer and GlaxoSmithKline sell a modern HIV/AIDS drug known as Selzentry through their joint venture firm ViiV Healthcare. The treatment costs more than 60,000 rupees ($1,200) for one month’s dosage in India. Bayer’s Nexavar cancer drug costs around $5,500 a month in India, making it “not available to the public at a reasonably affordable price”, the patent office ruled. About 40 percent of Indians live below the poverty line, government data shows. A provision of the Indian Patents Act allows for a compulsory license to be awarded after three years of the grant of patent on drugs that are deemed to be too costly. MORE TO COME? Other patent rulings are imminent. A long-running case involving the granting of an Indian patent for Swiss drugmaker Novartis’ cancer drug Glivec is expected to be heard in the country’s Supreme Court this month. The case does not involve the issue of compulsory license, but it has also pitted advocates of free trade and intellectual property rights against pro-generics campaigners who say a ruling in favour of Novartis could see other drugs in India priced outside of the reach of most of the population. “This (Bayer) case might become a trend-setter, wherein generic players can make copies of patented products,” said Siddhant Khandekar, analyst at ICICI Direct. “While global giants might not like this, generic companies will benefit along with common people,” he said, adding that the cancer treatment market in India was worth up to 30 billion rupees ($600 million). The Bayer case underscores the still fractious relationship between global pharmaceutical firms and India. Companies like Pfizer, GlaxoSmithKline and Novartis are eyeing India and other emerging markets, notably China, as a growth opportunity but worry about property protection in a country that is also a leading source of cheap copycat medicines. “Big Pharma” has recently struck some alliances with Indian drugmakers to tap into their generics expertise, but these have also not always run smoothly, with Pfizer on Tuesday scrapping a partnership with India’s Biocon Ltd. In cancer treatments, India’s Cipla Ltd, which has the second largest share of the local drugs market, may also benefit from the Bayer case. Cipla is fighting a Bayer suit for patent infringement after the Indian drugmaker launched a generic version of Nexavar in India in April 2010. BAYER CONSIDERS OPTIONS Natco’s finance chief, Baskara Narayana, told Reuters that sales of the generic version of Nexavar, whose chemical name is sorafenib, were expected to be about 250 million to 300 million rupees ($5-6 million) a year once it is launched. Bayer, which developed Nexavar with U.S. biotech firm Onyx Pharmaceuticals, said it was evaluating its options. “We are disappointed by the decision of the Patent Controller in India to grant a compulsory license for Nexavar,” Bayer said in a statement. Tapan Ray, director general of the Organisation of Pharmaceutical Producers of India, an industry group of multi-national drugmakers, said the Bayer ruling was disappointing. “The solution to helping patients with innovative medicines does not lie in breaking patents or denying patent rights to the innovators,” Ray said. Pfizer has questioned the issue of affordability, saying many Indians are well off and can afford Western medicines. “There is huge wealth in India,” Pfizer CEO Ian Read told Reuters in London on Monday. “There are maybe 100 million people in India who have wealth equivalent to or greater than the average European or American, who don’t pay for innovation. So this is going to have to be a discussion at some point.” But groups that campaign for cheap access to drugs in poor countries have welcomed the Bayer ruling. Medecins Sans Frontieres said the ruling means that new medicines in India that are still under patent, including some of the latest treatments for HIV/AIDS, could potentially have generic versions produced for a fraction of the cost. “It’s a bold move by the government and it’s a good judgment … which will benefit people,” said Dara Patel, secretary general of the Indian Drug Manufacturers’ Association, an industry body of Indian companies. “Drugs to treat heart-related diseases and HIV are costly,” said Patel. “Compulsory licensing will make them available at one-fourth or one-fifth of the price, which is good.” ($1 = 49.9750 Indian rupees) (Additional reporting by Ben Hirschler in LONDON and Tan Ee Lyn in HONG KONG; Editing by Tony Munroe and Mark Bendeich)

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Saudi Arabia’s property market – hot, hot, hot!

March 12, 2012

Saudi Arabia’s property market is hot. Other places may worry, but the oil Kingdom is rolling in money.

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Joel Sucher: Fannie, Freddie, and the FHFA Holding The Line On Foreclosure Policies

March 9, 2012

An ongoing drama is unfolding: a David versus Goliath tale of sorts that pits a Riverside, California family fighting to stay in their home against the weight of that elephant, otherwise known as “Freddie.” Arturo de los Santos, his wife and four children have already been evicted from their home once. But now, with the support of Alliance of Californians for Community Empowerment, Occupy Los Angeles and Occupy Riverside, they’ve re-occupied the vacant house. Their supporters have placed boots on the ground and inside the house to serve as witnesses and shields if sheriffs should come knocking once again. It’s a rage-against-the machine story, but with a puzzling subtext: Santos is working and willing to make a deal, but Freddie has turned a deaf ear. Now, his plight has become the focus for on-going media attention, namely from MSNBC and Huffington Post . A native of Corpus Christi, Santos joined the Marines in 1991 and after finishing a stint on an aircraft carrier found his way to Santa Ana, Calif., where he found a job in the aviation industry. He rose to a position as supervisor, and he’s still there. Together with his wife, Magdalena, they purchased a home in nearby Riverside that’s provided a roof over the heads of four children. When the global economy caved in 2008, his hours at the aviation plant were cut back and he asked his servicer, JPMorgan Chase, for a loan modification. According to Santos and his supporters, events then unfolded in true Kafkaesque fashion. He was denied a loan modification, re-applied, then given a temporary ‘mod,’ on which he made timely payments, then denied, again, for a permanent modification. Before he received his final denial, he learned that his house was going on the auction block. After questioning Chase about what was going on, the response, as he tells it, was “there’s a modification department and a foreclosure department, and the foreclosure department decided to sell your home.” So the great foreclosure machine began to grind away, and because California is a non-judicial state, meaning foreclosures there don’t need to go through the court system, the gears were greased to make eviction a whole lot easier. In January, 2011, Cal-Western Reconveyance Corp. — a title company with a disturbingly sinister moniker — engineered a transfer of ownership to Chase, then to Freddie Mac. Santos protested that he made enough to enable him to continue to pay a modified mortgage. Freddie refused. With foreclosure a done deal, the Santos family left the house. Then a magic slingshot appeared, giving this David a tool to fight back. He signed up with Alliance of Californians for Community Empowerment to be one of those homeowners to participate in a re-occupy-your-foreclosure campaign and, with family in tow, took back his home last December. Accusations have gone back and forth between Santos’s supporters and Freddie spokespeople as an acrimonious backdrop to what has now become a court battle. Last week, a California judge presiding over the case told Freddie to go back to the drawing board and come up with some legally palatable reasons why the family should be evicted for a second time. Arturo de los Santos is one of those emerging soldiers in this war against homelessness, a committed fighter who refuses to submit to a foreclosure firing squad. With Freddie and Fannie Mae together holding or guaranteeing roughly half the nation’s mortgages, that’s a lot of potential executions. Is there any sort of reprieve in the works for Santos or the legions of others caught up in similar straits, perhaps along the lines of the recent robo-signing settlement that offered the possibility of principal reduction? No, says the Fannie/Freddie overseer and majordomo, the Federal Housing Finance Agency (FHFA). Fannie and Freddie never signed on to the Shaun Donovan-brokered agreement. Executives at the “three F’s” are now hunkered down in the trenches, hands clamped over ears, waiting for the shelling to stop and the criticism to abate. No matter that HUD’s Shaun Donovan or California Attorney General Kamala Harris support principal reduction. The D.C. heavies simply won’t countenance any reconsideration. In fact, it’s quite the opposite. FHFA’s acting director, Edward DeMarco, continues to summon up that old “moral hazard” saw when discussing why he won’t lop off some struggling family’s principal. But never mind that notion when it’s time for the GSEs (government-sponsored enterprises) to belly up to the taxpayer’s bar for more cash to cover continued losses. No moral hazard there (think “bailout”). It’s an on-going beltway version of Alice in Wonderland. There are others around the country whose tales are only beginning to surface: like Giovanni and Linda DeCaro, who tried, unsuccessfully, to negotiate a settlement with Freddie to save their Springfield, Mass., home through a short sale strategy, brokered by Boston Community Capital’s Stabilizing Urban Neighborhoods program, that would have allowed the couple to buy back their property at a reduced price and then make monthly payments on a fixed rate 30-year mortgage. Restrictions would prevent them from selling the house for more than they paid without sharing the profits with Boston Community Capital. Sensible, even a tad innovative? Yes. Too much so for Freddie, which sees the DeCaro home as simply an investment property to be sold for top dollar. Greed again rears its ugly head. DeMarco has remained brittle and unbendable in his refusal to consider the emotional damage done to millions of homeowners through the GSEs’ efforts to keep the foreclosure machine running at full speed. As a relic of the Bush administration, DeMarco seemingly panders to a Republican agenda that follows lock step behind Mitt Romney’s call to “let the foreclosures proceed.” Unfortunately, it’s an attitude that continues to fuel the Darwinian fires that have decimated communities around the country. Joel Sucher, a filmmaker with Pacific Street Films in Hastings-on-Hudson, N.Y., is working on “Foreclosure Diaries,” a documentary about the financial crisis. This story comes to us courtesy of American Banker .

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BayHill Capital Corporation Announces Change of Board Members and Addition to Management

March 9, 2012

LEHI, UT–(Marketwire – Mar 9, 2012) – BayHill Capital Corporation ( OTCBB : BYHL ) announced today the election of two new directors and the appointment of a CEO. The new directors are Peter Brincker Moller and Rene Dyhring Mikkelsen. Mr. Moller was also appointed CEO. Both Mr. Moller and Mr. Mikkelsen are affiliates of Global Green Capacity Ltd., the largest shareholder of Canola Property Ghana Limited (CPGL). These changes are in anticipation of the company’s previously announced plans to acquire CPGL, a transaction BayHill expects will close sometime during this next month.

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China property investment slows 27.8% in Jan-Feb

March 9, 2012

(MENAFN) China’s National Bureau of Statistics said that in the first 2 months of the current year, annual growth in property investment slowed to 27.8 percent, reported Reuters. The agency added …

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Oman surges ahead

March 8, 2012

Residential prices in Oman are significantly down from their 2008 peak, especially within Integrated Tourism Complexes (ITCs).

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Banks Returning to CRE Lending via Multifamily, Owner-Occupied Properties

March 8, 2012

It’s not a big hook to hang a hat on, but the small increase in some commercial real estate loan balances on bank books at the end of the year serves as yet another indication of thawing lending markets for property investors. Overall loan balances on bank books posted their largest real growth in four years, according to year-end numbers released this past week by the Federal Deposit Insurance Corp. (FDIC). As far as CRE lending goes, it was…

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The Unanswered Multifamily Contradiction

March 8, 2012

With increasing occupancies and rents, the multifamily sector has been one of the commercial property types to bounce back fastest from the effects of the ‘Great Recession.’ Yet, at the same time, the multifamily sector has been one of the worst performing property types in terms of delinquencies, a contradiction noted by Fitch Ratings. Using the standard Fitch Ratings definition that counts any loan 60 or more days behind in payment as delinquent…

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Biotech, Lab Property Owners Holding Their Own Despite Shifting Landscape for Tenants

March 8, 2012

Big changes are roiling U.S. biotechnology and life sciences companies — and by extension the real estate owners that rent them with lab, R&D and manufacturing space — with pressures from global markets and regulatory and economic uncertainty causing tenants to rethink their property footprints and expansion plans, and even downsize in some cases. While the changes over the last five years have inevitably created volatile market conditions for…

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CBRE Taps Durburg To Oversee All Leasing and Sales Transaction Services

March 7, 2012

CBRE Group promoted one of its division presidents to the newly created position of Global President, Transaction Services. In his new role, Jack Durburg, formerly president of CBRE’s U.S. Central Division based in Chicago, will be charged with expanding the firm’s position in leasing, capital markets and transaction management services globally across all property types, working closely with the regional and business line leaders. Durburg…

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Defensive Leasing Strategy Helps Aussie REIT Dodge First Refi Bullet

March 7, 2012

With an $87.6 million loan coming due this August, Sydney, Australia-based Real Estate Capital Partners USA Property Trust may have dodged a refinancing bullet on a two-building complex in Bedford, MA, but may still take a hit on a separate office campus in Parsippany, NJ. Real Estate Capital Partners USA signed RSA Security to a 328,232-square-foot, 12-year lease renewal in the two buildings at 174 and 176 Middlesex Turnpike (Bldgs 3 and 4) in…

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Trinitas Ventures Hires Sales and Marketing Manager

March 6, 2012

LAFAYETTE, IN–(Marketwire – Mar 6, 2012) – Shannon Sorrells recently joined Trinitas Ventures LLC , a premier developer, owner and manager of high-quality student housing communities, as a sales and marketing manager for Trinitas’ property management division, where she will ensure that new and existing student housing properties continue to achieve strong rents and occupancies.

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Greece initiates tender for large seaside plot on Corfu Island

March 6, 2012

(MENAFN) The Hellenic Republic Asset Development Fund said that it launched a tender for the exploitation of a 120-acre, forested property on the western resort island of Corfu, reported AP. The …

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Why Generic Biotech Drugs May Not Be Coming Anytime Soon

March 5, 2012

* Biosimilars seen priced 10-40 pct below branded biotech drugs * Intellectual property, regulatory uncertainties remain * FDA to hold May 11 public hearing By Deena Beasley LOS ANGELES, March 5 (Reuters) – One of the pledges of the Obama administration’s healthcare overhaul was to enable cheaper copies of expensive biotech drugs, but the savings may not be as deep or come as quickly as hoped. Healthcare companies and industry experts say questions over how the market will work and the specter of patent litigation mean robust competition for generic biotech drugs might wait until the end of the decade. The regulatory requirements – which could force drugmakers to spend more money on testing – could mean eventual cost savings for payers of as little as 10 or 20 percent per treatment. That discount is paltry compared with savings of up to 90 percent for traditional generic medicines sold at U.S. pharmacies once the patents on brand-name pills expire. U.S. health regulators issued their first draft of guidelines governing that process in February. Drugmakers and industry experts say the proposed rules still fall short of providing a clear understanding of the best way to develop this market. “It should be the next bolus of growth for the generic drug industry and we need to fight to get a substitutable, interchangeable biogeneric marketplace,” said Heather Bresch, chief executive officer at Mylan Inc, the world’s third-largest generic drugmaker. “We don’t have that today.” The U.S. healthcare law in 2010 stipulated that regulators establish a process for approving lower-cost copies of biotech drugs – often referred to as “biosimilars” because they are not made from the same living cell line as the original drug. It drew upon a 2008 estimate by the Congressional Budget Office that the United States would save $25 billion from the use of biosimilars over 10 years. “The CBO anticipated the first biosimilar to come this year in their score of savings impact,” said Jonah Houts, senior director of government affairs at pharmacy benefit manager Express Scripts Inc. “That is not likely to happen.” Biologic medicines that treat conditions such as cancer and rheumatoid arthritis are derived from living organisms such as proteins and tend to be injected. The innovative drugs – first introduced in the 1980s – can cost tens of thousands of dollars a year. Copying them, while ensuring safety, is much more complicated, and expensive, than making conventional chemical-based compounds. HIGHER BAR FOR INTERCHANGEABLE DRUGS With annual sales near $150 billion, the U.S. biotech drug market is a juicy target for companies that have seen lower-cost generics take a huge share of the traditional prescription drug market. By 2015, U.S. sales of biosimilars are expected to reach $1.9 billion to $2.6 billion, according to IMS Health. The approval process for generic versions of chemical-based pills has existed for nearly 30 years. The U.S. Food and Drug Administration’s new guidelines are meant to provide a similar “abbreviated pathway” for biotech medicines. But the complexity of biosimilars has led to a drawn-out process and more questions posed by the industry. For example, the FDA said that manufacturers could also seek to have their drugs classified as “interchangeable,” which would allow a biosimilar drug to be automatically dispensed by a pharmacy without first checking with the prescribing doctor. The label could also lead to a deeper discount for patients. The FDA is the only health regulator in the world that has been given the authority to make that classification – as stipulated under the healthcare law. It is accepting public comment through early April and will hold a hearing on May 11. For a biosimilar to be considered interchangeable, the FDA said it would require additional clinical studies, which would increase research costs for manufacturers. Drugmakers would need to show that switching back and forth between a brand-name biologic drug and its copy does not compromise patient care. “Sponsors of those drugs have to consider how much to invest,” said Gillian Woollett, vice president of FDA regulatory strategy and policy at industry consulting firm Avalere Health. “An interchangeable would be considered more of a generic drug … the idea would be to gain market share in exchange for lower price.” If the drugs are not deemed interchangeable, doctors will need to issue prescriptions specifically for the biosimilar version, as opposed to the brand drug it is copying. That will require companies to spend more on marketing costs to promote their biosimilars. The FDA’s guidance “could have been written in a way that made interchangeability easier to achieve,” said Express Scripts’ Houts. Hospira Inc, which has a biosimilar to Amgen Inc’s Epogen anemia drug on the market in Europe, expects to launch its U.S. product in mid-2015. It will not be considered interchangeable with Epogen, said chief scientific officer Sumant Ramachandra. “It is likely FDA will avoid interchangeability in the first few years of the market, but that does not negate the possibility they will be approved towards 2020,” Sanford Bernstein analyst Ronny Gal said in a research note. 20 PERCENT, NOT 90 PERCENT Hospira said U.S. biosimilars are likely to sell at discounts of 20 to 40 percent from the branded competitors. Loreen Brown, senior vice president at distributor AmerisourceBergen Corp’s pharmaceutical consulting service, puts the discount at 10 to 20 percent. The magnitude of the discount for biosimilars, even if they are interchangeable, will depend on how many competitors reach the market and the costs to make the medicines. “Manufacturers are going to have to promote these products just like the branded products,” Brown said. The first biosimilar versions of top-selling biologic drugs may not even use the FDA’s new process to reach the U.S. market as companies contemplate simply pursuing a standard drug approval process instead. A standard drug application and a single-usage approval could be adequate for biosimilars with just one use, but may not make as much sense for products used to treat a variety of illnesses – such as different types of cancer. The biosimilar application process includes another requirement that could entangle drugmakers. A company seeking to make a generic version of a medicine will need to share its application with the brand-name manufacturer, a potential source of arguments, or even patent lawsuits, over how the generic was made. U.S. patent expirations for biotech drugs will occur in 2013 for Epogen and another Amgen drug, white blood cell booster Neupogen. The FDA said in early February it had held discussions for a total of 35 potential biosimilar products, but had yet to receive an application. Hospira has not yet decided whether to opt for a standard new U.S. drug application for its version of Epogen as opposed to the process outlined by the FDA’s recent proposed rules, Ramachandra said. The company puts the cost of getting a biosimilar drug approved for the U.S. market at $100 million to $200 million per product, compared with drug industry estimates of about $1 billion for new brand-name medicines. “It’s going to be a costly process. It’s going to be a slow process,” Woollett said. (Additional reporting by Bill Berkrot, Lewis Krauskopf and Ransdell Pierson in New York; Editing by Michele Gershberg and Matthew Lewis)

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Michael Geist: CMA Needs to Change its Tune

March 5, 2012

Last week I wrote about the astonishing demands of the Canadian music industry as it seeks a massive overhaul of Bill C-11, the copyright reform bill. The Canadian Independent Music Association is seeking changes to the enabler provision that would create liability risk for social networking sites, search engines, blogging platforms, video sites, and many other websites featuring third party contributions. If that were not enough, it is also calling for a new iPod tax, an extension in the term of copyright, a removal of protections for user generated content, parody, and satire, as well as an increase in statutory damage awards. CIMA and ADISQ, which represents the Quebec music industry, appeared before the C-11 committee last week and the demands only seemed to increase. For example, ADISQ is asking the government to add a requirement for Internet providers to disclose customer name and address information to copyright owners without court oversight. Conservative MP Paul Calandra rightly noted the obvious parallels to Bill C-30, where the government wants similar disclosures to law enforcement. In this case, however, ADISQ wants the information disclosed to a private party based on nothing more than an allegation of infringement. Calandra’s comments suggest that the government recognizes the dangers of such an approach. The proposed lack of due process is not limited to the disclosure of subscriber information. During its appearance, CIMA said it wanted a takedown system without any due process. Mike Lake, the Parliamentary Secretary to the Minister of Industry, took the organization to task for the proposal. In response to Lake’s concerns, CIMA replied: Don’t get us wrong there. We believe that there should be some due process. What we don’t believe is that it’s practical to expect. In other words, CIMA believes in due process, but doesn’t think Canadians should expect any. As for where proposed mandatory disclosure of subscriber information in copyright claims and content takedowns might lead, the industry also wants unlimited damage awards for individuals. When asked for a figure, CIMA responded: Quite frankly, we’d rather see no limit on statutory damages, but in the spirit of the act, I don’t think, as an association, we’ve talked about a specific ceiling. We were hoping to engage in more discussions on that with folks on your side of the table to talk about what is an appropriate level, if it is deemed that there should in fact be a level. The comments bring to mind assurances from movie industry representatives last year that there are no plans to file lawsuits against individuals, only to launch dozens of lawsuits against individuals over the alleged downloading of the Hurt Locker movie a few months later. The Bill C-11 hearings continue this afternoon.

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This Guy Was Fined For Not Cutting The Grass Of A Home He Was Kicked Out Of

March 2, 2012

Mowing the lawn may be an awful chore, but imagine having to pay a fine for not cutting the grass of a house from which you were evicted. David Englett of Crowley, Texas is being charged after he didn’t pay a series of Arlington city fines for, among other things, not moving the lawn of a home he had already lost to foreclosure, local news CBS 11 reports ( h/t The Consumerist ). Englett had also been fined for owning an alarm without the necessary permit and for a fence in bad shape. Although it’s possible Englett isn’t responsible for the infractions, don’t be surprised the city of Arlington is giving it a try. “You have to remember cities are all about grabbing money from you,” CBS 11′s legal advisor Jerry Loftin said . “They try anyway they can.” Property maintenance and associated fines have become a complicated legal area during the foreclosure crisis. Millions of homes have been abandoned at a time when cash-strapped cities have come to see fees as an attractive way to close budget gaps. Maintaining abandoned properties is also of importance for any city that hopes to make the best of struggling housing market . In New York City, for example, banks have reclaimed some 2,000 homes with property violations, amounting to 3,700 fines, according to a survey by state Senator Jeff Klein (D-Bronx), cited by the New York Daily News . In hundreds of cases, those banks have refused to pay up. Deutsche Bank is the greatest offender, owning 211 properties with open fines. U.S. Bank, meanwhile, reportedly has yet to pay some $40,000 worth of fines to the city, according to the same report. It’s not just New York. Towns across the country are getting increasingly serious about property maintenance violations. In the past two weeks alone, the Connecticut towns of Stonington and Woodbury have proposed blight ordinances in addition to Bellows Falls, Vermont . Meanwhile, the town of Rocky Hill, Rhode Island, is considering increasing the severity of the blight ordinance violations it already has in place. Even at the federal level, the cost of owning real estate is getting higher. In 2010, the government paid $30.7 billion to maintain the 3.3 billion square feet of property it owns, up from $29.2 billion in 2009, according to a recent report from the General Services Administration, the Federal Times reports .

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Tax The Catholic Church? Cash Strapped Italy Considers Options

March 2, 2012

Alessandro Speciale Religion News Service VATICAN CITY (RNS) Pinched by the global recession and tough-love budget demands of the European Union, the Italian government is looking for extra revenue, and has its eyes set on commercial properties owned by the Roman Catholic Church. On Feb. 15, the government of Prime Minister Mario Monti announced it wants to revise rules on the tax-exempt status of church-owned commercial property. Though the exemption also applies to other not-for-profit entities, such as trade unions, political parties and religious groups, the Catholic Church is its largest beneficiary. “Such a move would have been unimaginable six months ago,” said Francesco Perfetti, a history professor at LUISS University in Rome. “After all, no matter whether you are a believer or not, the church is an integral part of Italy’s culture.” The exemption, introduced in 1992, has sparked a heated debate, especially after the Euro crisis and Italy’s staggering debt forced the government to introduce sweeping austerity measures, including a sharp rise in the pension age. Critics say the current rules give church-owned businesses, such as hotels and restaurants, an unfair advantage over their competitors. Church officials respond that purely commercial church businesses must already pay taxes in full, and that the exemption is aimed at helping social institutions like schools and hospitals, not at giving the Catholic Church an unfair advantage. “We don’t ask for preferential treatment but just to be treated as other not-for-profit entities,” Cardinal Angelo Bagnasco, president of Italy’s bishops conference, said in January. In fact, Italian church officials cautiously welcomed the government’s announcement, saying it would help “clarify” the situation. In a reflection of the sensitivity surrounding every issue related to the Catholic Church, Monti took the unusual step of personally explaining the sense and scope of the new rules in a speech to a Parliament committee on Feb. 27. In his statement, Monti avoided any explicit reference to the church, and stressed that the government “holds in high esteem the not-for-profit sector’s contribution to society.” Monti, a trained economist, said the new norms would clarify which commercial properties qualify as not-for-profit, in order to avoid possible sanctions from the European Union. Not everyone, however, was convinced by the prime minister’s reassurances. The Salesians, a large religious order, said they would be forced to close many of the thousands of private schools they operate throughout Italy if forced to pay property tax on them. Other church-affiliated bodies voiced similar concerns. Yet, despite the consternation the new law provoked, it might not change things dramatically. According to a government-mandated study, the current tax exemption costs the government about 100 million euros ($131.9 million) in lost revenue, a tiny amount compared to Italy’s public debt of 1.9 trillion euros ($2.5 trillion). Mario Staderini, secretary of the Italian Radicals party, which is highly critical of the church, said that, despite the promises, the new norm won’t deliver much: “Its effects will be small.” For him, property tax exemptions are just the start of the conversation. “Italy’s whole system of public funding for the church, which amounts to 1 billion euros per year, must be overhauled,” he said. For the church, too, the main result of the government’s initiative may be little more than a clarification of today’s somewhat obscure norms. Since it was first passed in 1992, the law has been modified many times by bylaws and government regulations, further muddling up the picture. That has led to a steep rise in the number of court cases in recent years, said Patrizia Clementi, a tax expert with the Milan diocese who also consults for the Italian bishops conference on the issue. A clearer law might also lead to a decline in tax evasion: In the city of Rome alone, greater scrutiny of church-owned properties has brought nearly 11 million euros ($14.5 million) in extra tax revenues since 2005. “Right now there are gray areas,” she said. “We hope the new norms will clarify the situation.”

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U.S. Mint HQ Fetches $147.5 Million

March 2, 2012

NSP Ventures Corp. purchased the U.S. Mint headquarters building at 801 Ninth St. NW in Washington, DC, from Wereldhave USA Inc., a commercial real estate investment firm based in the Netherlands, for $147.5 million, or approximately $624 per square foot. The eight-story, 236,054-square-foot office property is one block away from Gallery Place Metro Station and is next to the 1.9 million-square-foot mixed-use CityCenterDC development. Stanley…

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UBS Invests $74M in N. Hollywood Luxury Apts.

March 2, 2012

A core fund managed by UBS acquired NoHo14, a 180-unit mixed-use high-rise at 5435-5449 Lankershim Blvd. in the NoHo Arts District of Los Angeles, CA, for $73.9 million or $410,583 per unit. A joint venture led by Beverly Hills-based Kennedy Wilson, Guardian Life Insurance and Urban Partners/RECP sold the asset. The 14-story luxury apartment building was originally built as a condominium project in 2008. After the partnership purchased the property…

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Did You Get Your Check? IRS Has $1 Billion Waiting For You

February 29, 2012

Did you file your 2008 tax return? One million people did not, and as a result, the Internal Revenue Service is sitting on a pile of cash — $1 billion to be precise — in unclaimed tax refunds , the IRS announced last week. Half of the refunds waiting to be had are worth $637 or more, the IRS said. It’s not too late to claim your refund if you were one of the million people who were not required to file a tax return because you made under a certain amount of money. In fact, you have until April 17, 2012 to file a 2008 tax return , according to the IRS, before the extra cash becomes the property of the U.S. Treasury. Tax refunds are not the only money you could potentially lose out on by not filing a tax return. According to the IRS: Some people, especially those who did not receive an economic stimulus payment in 2008, may qualify for the Recovery Rebate Credit. In addition, many low-and moderate-income workers may not have claimed the Earned Income Tax Credit (EITC). Think you’re owed money? You can access old tax forms at IRS.gov .

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SL Green Closes on $252.5M Acquisition in NYC

February 28, 2012

SL Green Realty Corp. (NYSE: SLG), the largest commercial office landlord in New York City, has closed on its previously announced acquisition of the HarperCollins Bldg. at 10 E. 53rd St. in New York City. The total purchase price came to $252.5 million, or approximately $647 per square foot. The company then entered a joint venture with Canada Pension Plan Investment Board (CPPIB), which took a 45 percent ownership stake in the property with…

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Dating Website Sued Over Dead Soldier Pics

February 28, 2012

VANCOUVER – A popular British Columbia-based dating website is among two companies being sued by the parents of a dead U.S. soldier, who allege their son’s photograph was used on online personal ads four years after he was killed in Iraq. The parents of U.S. army Lt. Peter Burks are suing PlentyofFish.com, which is based in Vancouver, and True.com, based in Dallas. The parents’ lawsuit, filed Monday in state district court in Dallas, alleges photos of their son, who was killed in Iraq in 2007, were used without their permission. The parents are seeking compensatory and punitive damages. The lawsuit alleges a photo of Burks in uniform appeared on an ad for True.com, which was displayed on PlentyofFish. One ad proclaimed, “Military Man Searching for Love.” Alan Burks said the photo was taken days before his 26-year-old son was killed in Baghdad in late 2007 and is on the website of the family’s Unsung Hero Fund, which provides supplies to troops in war zones as a tribute to Peter Burks. In December, a friend recognized Peter Burks in an ad on PlentyofFish.com, clicked on it and was directed to True.com, Alan Burks said. He said his son was engaged at the time of his death, so the idea that he was trying to meet women online as the ad portrays “couldn’t be more wrong.” “I felt horrified, disgusted,” Alan Burks, who lives in Dallas, told The Associated Press on Monday. “It upset me.” PlentyofFish Media spokesman Paul Bloudoff said the company didn’t advertise online in the U.S. in December. He said hundreds of thousands of third parties advertise via his company’s site every month, and that it cannot control nor know about the content of those ads. Even so, the ad has been blocked from the company’s network, he said. “We dealt with this matter a month ago,” Bloudoff said in an email. “In our opinion, this case should not have been filed.” True.com president Ruben Buell said Monday that he hasn’t seen the lawsuit but “will be researching this diligently.” He said the company, whose official business name is True Beginnings LLC, buys ads that run on other dating websites but does not know what happened in this situation. “I certainly feel for his family,” Buell said Monday. PlentyofFish Media did not say how long the ads — including one with Peter Burks’ photo that said “Soldiers Want You!” — ran or how his photo was obtained, said Rogge Dunn, the attorney who filed the suit. In addition to emotional suffering, his parents have also suffered financial damages because, since his death, they have legal control over his image and never authorized any photos to be used to endorse these sites, Dunn said. Alan Burks said he plans to donate any money awarded in the suit to military charities. “For me, this is making sure that the honour and legacy of Peter is protected,” he said. “But also it concerns me that they would use the likeness of a live soldier or someone else.”

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Wealthy More Likely To Cheat And Steal Than Poor: Study

February 27, 2012

MONTREAL – A new study says rich people are more likely to engage in unethical behaviour than their poorer counterparts. That’s the finding from researchers at the University of California and the University of Toronto, published today in the Proceedings of the National Academy of Sciences of the United States of America. In two tests, researchers found that upper-class drivers were more likely to cut off other cars and pedestrians at crosswalks. The researchers used age, vehicle make and appearance to assess drivers’ social class. In another series of tests involving undergraduate students and adults, researchers found that those who consider themselves “upper class” were more likely to take valued items from others, lie during negotiations and cheat to increase their chances of winning a prize. The authors of the study say the differences in ethical behavior can be explained, at least in part, by the upper-class participants’ more favourable attitude toward greed. But they also stress that this is not a universal trend, arguing that there are many examples of ethical behaviour amongst more affluent people, such as philanthropic work. The authors also point out that unethical behavior is not absent from lower-class individuals, as has been demonstrated by numerous studies on the relationship between the concentration of poverty and violent crime. The findings in the tests conducted on undergraduates and adults were consistent across age, gender, ethnicity, religion and political orientation of the participants.

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Will Utah Law Destroy Agriculture Industry Transparency?

February 27, 2012

SALT LAKE CITY (AP) — Filming on farms, ranches and dairies could be prohibited in Utah by a bill moving to the Senate this week, despite concerns that animal abuse will go unreported. The prohibition is needed because “national propaganda groups” are hiding cameras on agricultural property and using the footage as part of their larger agenda of shutting down the operations, said Rep. John Mathis, R-Vernal, the sponsor of House Bill 187. The bill, which passed the House 60-14 Friday, would make it a misdemeanor to film on private agricultural property without the owner’s consent. Allowing the groups to continue to film on private property is “akin to a neighborhood watch group that goes into your home and hides cameras because you may one day do something to your kids,” Mathis said. Multiple animal rights groups have launched national campaigns against the bill, which they said will penalize people who uncover animal abuse. Among those groups is People for the Ethical Treatment of Animals, which has sent a letter from actress Cloris Leachman to lawmakers. “Citizens’ right to document cruelty to animals_wherever it occurs_is crucial in helping local, state, and federal officials enforce anti-cruelty laws,” Leachman wrote in her letter. The bill will protect businesses to the detriment of animals, said Suzanne McMillan, director of farm animal welfare for The American Society for the Prevention of Cruelty to Animals. “Bills like this only serve to heighten suspicion that the agricultural industry has something to hide,” McMillan said. “Americans deserve to know how their food is produced, and responsible farmers should welcome that transparency.” The proposed law is also overly broad and could limit the ability of whistleblowers to document illegal actions, said Rep. Brian King, D-Salt Lake City. Last year, similar bills failed in Iowa, Florida, New York and Minnesota. The involvement of national groups will likely hold little sway over Utah lawmakers, however. Rep. Mike Noel, R-Kanab, who is a cattle rancher, said opponents of the bill want to control agriculture but have no understanding of how hard farmers and ranchers actually work. “Nobody wants to go slop around in cow manure in the middle of the night or at six in the morning, and they certainly don’t want some jackwagon coming in and taking a picture of them,” Noel said.

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Insanely Old Will Sparks Battle

February 25, 2012

BOSTON — With only eight days to live, a wealthy, ailing Massachusetts merchant wrote in his will 351 years ago that he was leaving a spectacular 35-acre seafront property for the benefit of public school children, decreeing the land should never be sold or wasted. The dying wish of William Payne, one of the state’s earliest settlers, created the nation’s oldest charitable trust and eventually led tenants to build 167 cottages – most of them used by summer vacationers – on the land he left for the seaside city of Ipswich. The rent money has generated some $2.4 million to help fund public schools over the last 25 years. Now, the trustees want to tear up the will, convert the property into condominiums and sell them to the tenants to settle a 2006 lawsuit filed by the tenants over rent increases. But hundreds of Ipswich residents have gone to court to block the settlement, saying it violates the sacred intent of Payne’s will and shortchanges the schools. The Massachusetts Appeals Court is considering whether to nullify the settlement and is scheduled to hear arguments in the case March 2. The residents contend that while independent appraisals show the value of the land is an average of about $41 million, the agreement sets a sale price of nearly $32 million. They also say that the settlement also denies public schools the benefit of rising land value that occurs over the long term and that could help them collect higher rents. Attorney General Martha Coakley, whose office enforces laws governing public charities, is supporting the settlement approved by a probate court judge in December, saying that the trust is no longer able to carry out Payne’s wishes. Mark Swirbalus, who represents opponents of the settlement, said the case sends a “troubling message” because it shows the intent of someone setting up a trust could be trampled and the rights of beneficiaries could easily be compromised in decisions that do not protect their best interest. “In short, the agreement to sell the land, and the court’s approval of this agreement, seem to have been done for the sake of expedience, regardless of William Payne’s intent and Massachusetts law,” Swirbalus said. Residents seeking to block the deal have accused trustees of mismanagement, operating in secrecy and making sporadic and small payments to public schools for years long before the tenants sued over the rent. Disputes over wastewater and other necessary improvement to the land also fueled complaints against the trustees, formally known as Feoffees of the Ipswich Grammar School. “The fundamental problem in all this is there are a lot of different opinions in town as to whether the trustees are sort of willfully evil or just incompetent,” said Douglas DeAngelis, an Ipswich parent and one of the 14 people seeking to join the lawsuit. “But, at the end of the day, you have a $40 million asset that’s never been professionally managed.” Payne’s land gift was intended to help Ipswich comply with a 1647 colonial law that required communities with more than 100 families to set up a grammar school to prepare students for admission to “the College at Cambridge” – a reference in his will to Harvard College, founded in 1636 with a mission to prepare young men for the ministry. The second paragraph of Payne’s handwritten will declares in flourishing script: “I giue vnto the free scoole of lpswitch, the little neck of land alt Ipswitch, commonly knowne by the name of Jeferrys neeck. The which is to bee, and remaine, to the benifitt of the said scoole of Ipswitch, for euer, as I haue formerly Intended, and therefore the sayd land not to bee sould nor wasted.” Ed Cafasso, a spokesman for the sale opponents, said the plaintiffs are not only contesting the probate court ruling, but also contend that Coakley “failed to investigate evidence of the charity’s mismanagement,” including the fact that so little money has been distributed to the schools over the years as well as previous instances in which trustees rented cottages they were managing – leaving them with little incentive to set rents at market value. The attorney general’s office, however, on Friday defended its decision to support the land sale, saying the trust had become ineffective in serving its stated purpose of aiding Ipswich schools. “The settlement terms … comply with charities law and achieve two important goals: First, they restore a much needed revenue stream for the Ipswich schools consistent with William Payne’s wishes and ensure the long-term viability and sustainability of his gift in the future,” Brad Puffer, spokesman for Coakley, said in a statement. “Second, they provide for a publicly appointed board to govern the trust that will be created with proceeds from the sale of the Little Neck land,” Puffer said. “This change will enhance public accountability and transparency for the trust going forward.” Trustee Peter Foote, who manages affairs on behalf of other trustees, declined to comment. Attorney William Sheehan, who represents the trustees, said the settlement represents the best option in efforts to ensure that Ipswich schools continue to receive funding from Payne’s dying wish. Suggestions that the trustees have mismanaged the land “and this notion of `no, we are better off if the property is rented’” ignores the fact that the settlement shifts to condo owners the burden of about $1 million required to fix significant erosion problem that occurred on the land in 2007, Sheehan said. The settlement also eliminates the uncertainty created by a potential liability from the 2006 lawsuit that tenants filed to block the trustees from evicting them from their cottages for refusing to pay higher rents, Sheehan said. ___

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Are Officials Ignoring Tainted PA Water?

February 24, 2012

EVANS CITY, Pa. (AP) — A western Pennsylvania woman says state environmental officials refused to do follow-up tests after their lab reported her drinking water contained chemicals that could be from nearby gas drilling. At least 10 households in the rural Woodlands community, about 30 miles north of Pittsburgh, have complained that recent drilling impacted their water in different ways. The Department of Environmental Protection first suggested that Janet McIntyre’s well water contained low levels of only one chemical, toluene. But a review of the DEP tests by The Associated Press found four other volatile organic compounds in her water that can be associated with gas drilling. DEP spokesman Kevin Sunday said on Friday that the low chemical concentrations were not a health risk, and suggested that the contamination may have come from the agency’s laboratory itself or from abandoned vehicles on or near the property. But Sunday didn’t answer why DEP failed to do follow-up tests if the DEP suspected that its own lab was contaminated. One public health expert said the lack of follow-up tests by DEP doesn’t make sense. “DEP cannot just simply walk away,” said Dr. Bernard Goldstein, professor emeritus at the University of Pittsburgh School of Public Health. McIntyre and other residents say the water problems started about a year ago, after Rex Energy Corp. of State College, Pa., drilled two wells. But a map Rex provided also shows gas wells from other companies in the area. Residents in the community have been complaining for nearly a year, but DEP never revealed the possible presence of chemicals to the general public. Rex has been supplying drinking water to many households, but has sent letters notifying them it will no longer deliver drinking water after Feb. 29. In a statement, Rex said that the wells of residents who have complained are from 2,100 to 4,600 feet from its drilling locations. The company noted that many other homeowners in the area haven’t raised complaints or concerns. Rex also said there are old oil wells in the region that could impact some ground water, and that there were “no notable differences in water chemistry between pre- and post-drill water quality tests of the water wells in question.” McIntyre’s water showed detectable levels of t-Butyl alcohol, acetone, chloromethane, toluene and 1, 3, 5-trimethylbenzene. The chemicals can be used in the high-pressure hydraulic fracturing process that has led to a production boom of deep shale gas in Pennsylvania. But some are also commonly used in households and other industry, such as toluene, a paint thinner. Goldstein said the multi-chemical mix is what is so unusual, since it suggests either multiple sources of contamination, or an industry that uses many different chemicals. “Where would you get such a strange mixture?” Goldstein asked. “Is this coming from drilling?” He added that the low concentrations shown in the test may not be a health threat, and may not be connected to gas drilling. But if DEP’s own laboratory was even a potential source of the chemicals, the agency had the obligation to follow up. “You’ve got to pursue the finding,” Goldstein said, since if the lab was at fault the variety of chemicals that showed up “makes no sense at all, except a really sloppy lab.” Sunday said an independent peer review of the DEP laboratory found it to be “a well-managed, efficient and highly functional laboratory” that is “driven by a culture of customer service.” McIntyre told the AP that she repeatedly asked a DEP field worker for follow-ups after two separate tests last summer showed the chemicals, as well as elevated levels of some natural underground compounds such as barium. “He said no,” she said, leaving her feeling that she had no one to turn to for an objective public health opinion. She also said the chemicals didn’t show up on pre-drill water tests. As drillers have poured into Pennsylvania to tap its vast Marcellus Shale gas reserves, residents and environmentalists have raised concerns over the impact or potential impact to water supplies. Water contamination in Dimock, in northeast Pennsylvania, has riled some homeowners for months. State regulators determined that Houston, Texas-based Cabot Oil & Gas Co. drilled faulty gas wells that allowed methane to escape into Dimock’s aquifer. The company paid heavy fines but denied responsibility; it has been banned from drilling in a 9-square-mile area of Dimock since April 2010. Another Woodlands resident who complained about dramatic changes in her water over the last year said DEP staff suggested the bad smell was simply from garden slugs in her well, which is 300 feet deep. “They just insult your intelligence. I don’t trust the DEP,” said Kim McEvoy, who lives about a mile from McIntyre. McEvoy said she wants the U.S. Environmental Protection Agency to investigate the community, and that she’s come to that point because state environmental officials haven’t answered her questions. “Something has happened here,” McEvoy said.

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Marty Zwilling: Ten Common Arrogance Traps for Startups to Avoid

February 24, 2012

Lack of confidence in yourself, your product, and your startup is a surefire recipe for disaster. At the other extreme, too much confidence or arrogance can kill you just as fast. It’s always painful when a startup fails, but as a mentor to founders I would hope that you can learn from these failings and not stumble on the same issues: “Business plans are for dummies .” Some startups think business plans are only for investors. In reality, you should do a business plan primarily for yourself, as it forces you to think through all the elements. If it’s not written down, you can’t measure it, and thus you can’t manage it. Also written plans are much more effective communication to your employees, lawyers, accountants, and other key players in your rollout. “It’s the market, stupid.” It’s great to have a passion about a favorite new toy you invented, but just because you love it doesn’t mean the whole world will love it. Another variation on this theme is the person who creates a “solution” from technology, and then makes up a “problem” that it will solve. There is no substitute for understanding the market, and sizing the opportunity, before you climb out on a limb. “If we build it, they will come.” The hot term these days is “viral marketing,” meaning we won’t do any marketing, but our product is so great that everyone will know about us anyway by word of mouth and through Internet social networks. In most cases, viral marketing only begins to work after you prime the pump with several million in real marketing over a couple of years. “We have no competitors.” VCs and angel investors hear this one all the time. The investor view is that if you can’t find any competitors, either you are not being honest, or you haven’t looked, or there isn’t any market for your product. Your funding request will likely go into the circular file. “More features than anyone.” Just because you included all the features of Facebook, MySpace, Twitter, and LinkedIn in your new social networking product, doesn’t mean everyone will love it. In fact, quite the opposite usually happens, due to complexity and work to switch. Investors like laser focus on a market-need causing real pain. “Microsoft is too big/slow to be a threat.” Usually the reason the big companies are no threat is that the market is too small. Competing with IBM, Microsoft, and other large companies is a very difficult task. Entrepreneurs who utter this line are kidding themselves. They may think it’s bravado, but investors think it’s stupidity. “We have the first-mover advantage.” That’s probably the soft way of saying, we don’t have a patent or any “secret sauce” for a competitive advantage. Unfortunately, a startup with no brand name and no intellectual property is a sitting duck for the big slow company, as soon as they see you gaining a bit of traction. Sleeping giants do wake up. “No need to risk my own funds. ” This is usually seen as the difference between involved and committed. Investors expect the founder and other principals to have “skin in the game,” over and above “sweat equity.” If you and your friends are trying to play Donald Trump, don’t expect other mere mortals to carry the risk load for you. “We’re funded, now we can relax .” Quite the opposite is really true. Now the real work starts to build a sustainable business. Now you have to manage to budgets and timelines, and avoid the temptation to splurge a bit on office space or too many new employees. “Me, myself, and I.” I recently watched a promising startup I know wither and die for lack of funds because the founder refused to consider stepping aside as CEO in favor of a more experienced candidate, as a condition of a $1 million VC investment. I reminded him that he could easily “kick himself up to Chairman,” but he wanted it all, and let ego take precedence over good business sense. You probably think these are so obvious that they are clichés. I wish that were true, but I still see them happening every day. The most successful startup founders are never too busy to listen to the market, listen to their advisers, stifle their ego, and enjoy the ride. It’s a lot more fun than the alternative.

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Canadian Mining More Corrupt Than Parts Of Developing World: Survey

February 24, 2012

Corruption in Canada’s mining industry is worse than in some African and Latin American countries, says a new survey from the Fraser Institute. Alberta, British Columbia, Quebec, Nunavut and the Northwest Territories all ranked in the survey as more corrupt than Chile and Botswana . The remaining provinces and territories ranked better than any developing country, but were still seen as more corrupt than many U.S. and Australian jurisdictions. The study notes that Chile and Botswana have the fastest-growing resource sectors on their respective continents, suggesting a link between economic growth and lack of corruption. The Northwest Territories ranked as the most corrupt in Canada, with fully 16 per cent of respondents saying corruption would keep them from investing in the area. Sweden, Norway and Finland, as well as the U.S. states of Minnesota and Missouri, were ranked as the least corrupt in the survey that looked at 93 countries and sub-national areas and surveyed 802 mining companies worldwide. Most of the developing world, and some developed countries such as Poland and Spain, ranked worse than any Canadian province. It’s a surprising result that suggests some Canadian jurisdictions may have a way to go in ensuring confidence in their mining sectors, and it indicates that controversies surrounding Canadian mining companies may go beyond concerns about their operations abroad. “ It’s clearly a concern, though a concern amongst a minority of miners ,” survey co-ordinator Fred McMahon told the Globe and Mail. “I doubt there’s big money passing hands, but it might be a favour here or a favour there. … It’s something that plagues mining companies around the world.” The report does not cite examples of corruption in Canadian mining. But concerns have traditionally centred around Canadian companies’ activities abroad. Mining firms have often been criticized for their links to resource-fuelled wars in Africa . Bribery is seen as being among the most common problems. Last year, Calgary-based Niko Resources agreed to pay a $9.5-million fine after admitting it bribed a Bangladeshi government minister . Under Canada’s Corruption of Foreign Public Officials Act , it is illegal for Canadian companies to bribe officials anywhere in the world. In another case, the RCMP raided the offices of Calgary-based Blackfire Exploration last year as part of an investigation into allegations the company bribed Mexican officials to suppress dissent against an open pit mine in Chiapas. In 2009, three men linked to Blackfire were arrested for the murder of an anti-mining activist . “ This tragic outcome can be traced directly to the Harper government’s refusal to end the impunity currently enjoyed by Canadian mining companies ,” Council of Canadians chair Maude Barlow said at the time. But in a 2009 report on corruption in mining , Ernst & Young reported that heavy regulation may also be to blame. Mining is among the most heavily regulated industries in the world, and “as a result, officials who have the power to block, delay or frustrate a project may attempt to solicit bribes for the benign exercise of that power.” The report also suggests that corruption may not be worth it, financially. “The impact of such activities can seriously degrade a company’s share price and potentially trigger costly shareholder or other litigation,” the report stated. “Furthermore, the time spent by management in attending to investigations, press inquiries or regulatory processes can distract management from the business of developing or operating a mineral property, or exploring for new properties.” Canada’s mining sector was worth $54 billion to Canada’s economy in 2010, amounting to 4.4 per cent of GDP .

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‘Unhealthy’ To Stare At Tweets All Day, Twitter Co-Founder Says

February 22, 2012

MONTREAL – Twitter co-founder Christopher Isaac “Biz” Stone has a message for those followers who stare at their tweet feed for hours on end. It’s not healthy. Stone says he’d prefer that people visit the popular social networking site frequently than sacrifice their life to it. He told a Montreal business audience even he is amazed by the influence of Twitter, which the founders initially thought would just be used for fun. Stone says it has instead ended up linking millions of people and been used to spur social change such as the so-called Arab spring, triggered by pro-democracy movements in the Middle East. The entrepreneur’s speech focused on tips for business people including that they should show empathy for their employees and shouldn’t be afraid to fail. He also says creativity is an unendingly renewable resource.

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Fred Bauer: Industrial Policy: The Jump-Start Romney’s Campaign Needs?

February 21, 2012

As Mitt Romney struggles in the polls against his Republican rivals (particularly Rick Santorum) for the GOP nomination, it may be time for him to focus more on industrial policy.  Romney has obviously done a lot of thinking on manufacturing policy, so he perhaps should put that thinking to use.  Romney’s recent op-ed in the Wall Street Journal , which slams the People’s Republic of China for its distortion of the market, suggests that he may be moving in that direction. Attending to industrial policy could be one way of helping Romney change the public perception that he represents the interests of the top 1%.  According to recent polls, many voters think that Romney’s policies would benefit the rich more than those of any other GOP presidential candidate; even 50 percent of Tea Partiers think that he favors the rich over the poor and middle class.  There’s something ironic about this perception, since many on the ideological, “purist” right have hammered Romney’s policies as being too sympathetic to the middle class.  But politics is filled with ironies; it’s the job of a candidate to address those ironies and change the narrative.  Focusing on restoring the health of the industrial middle class may be one avenue for narrative change. A defense of manufacturing policy could also pay electoral dividends in Rust Belt states like Michigan and Ohio, where Santorum (who is also trying to stake out territory in manufacturing policy) is running neck-and-neck with — if not outpacing — Romney.  These areas saw manufacturing as a source of wealth, and declines in manufacturing have hit many of these state economies hard. Say Romney were to run an ad like this: [Open on Romney in an abandoned, mostly empty warehouse that used to be a factory] Romney: In 1998, this factory in ——-, Michigan provided nearly a thousand middle-class jobs.  A few years later, it was closed down, and a new factory opened up in China.  This story has been repeated in small towns and cities across America for years, and, though it may complain, Washington has chosen not to deal with this issue in a serious way.  Middle America has paid the price for Washington’s negligence. Well, it’s time to change that.  Americans are a hard-working people, and, given a level playing field, we can succeed at almost any task.  But the playing field is not level.  When countries manipulate their currencies, violate intellectual property rights, give illegal subsidies to native industries, and raise unfair barriers to U.S. products, the American worker suffers.  As president, I will take steps to correct these trade imbalances, even if I have to step on some toes to do it.  I support the free market, but a lot of the stuff we’re seeing is not part of the free market.  When I’m president, I’ll work to ensure that this [gesturing to empty building] is not America’s future.  Working together, we can turn this country around and safeguard for future generations the legacy of economic opportunity passed down to us. Unlike complaining about, say, Santorum voting to increase the debt ceiling , an ad like this would focus on an affirmative case for Romney.  It would help shift the broader political debate from being a process-oriented one (who’s up today? will negative attacks backfire?) to a substance-oriented one. A mastery of policy details is one of Romney’s strengths.  To reinvigorate his campaign, he needs to enunciate and defend a distinctive policy vision.

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Video: Wong Favors China Overseas Land, Resources Land, Vanke

February 20, 2012

Feb. 20 (Bloomberg) — Nicole Wong, a Hong Kong-based property analyst at CLSA Asia-Pacific Markets, talks about China’s real estate market and developers’ stocks. China’s January home prices recorded their worst performance in at least a year, with none of the 70 cities monitored by the government posting gains as Premier Wen Jiabao reiterated his determination to maintain property curbs. Wong speaks with Rishaad Salamat on Bloomberg Television’s “On the Move Asia.” (Source: Bloomberg)

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China home prices drop in January

February 19, 2012

(MENAFN) China’s home prices declined for the fourth straight month in January, indicating a policy-driven property market downturn is deepening, Reuters reported. According to the National …

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David Isenberg: The State Department Tells Us How They Really Felt: Part 1

February 17, 2012

Perhaps the old saying that good things come to those who wait is true. Three years, five months, and four days ago I filed a Freedom of Information Act request with the U.S. State Department. This was a follow up request to a previous FOIA request. Originally I had asked for contract documents pertaining to the U.S. State Department’s Worldwide Personal Protective Services contract. WPPS is the State Department’s effort to pre-plan, organize, set up, deploy and operate contractor protective service details around the world. It has also been the main cash cow for what was once Blackwater, now Academi. Its primary public contract was WPPS and WPPS II umbrella contracts, along with DynCorp International and Triple Canopy Inc., for protective services in Iraq, Afghanistan, Bosnia and Israel. In March 2000 the State Department issued the first iteration of the WPPS contract. It was awarded to DynCorp International to provide services in the former Yugoslavia and subsequently was used for deployments in the Palestinian Territories and in Afghanistan for the Karzai Protective Operation. In early 2004 additional task orders were added to the original contract to provide contractor support for the U.S. Embassy in Baghdad when it opened on July 1, 2004. DynCorp was unable to meet the full requirements of the expanding mission, and a second service provider was established through a contract with Blackwater USA. Another company, Triple Canopy, subsequently was awarded a third contract. This is not a contract which will go down in contracting history for its transparency. In January 2010, the state’s inspector general office released its August 2009 Memorandum Report on the Preliminary Review of the Second Worldwide Personal Protective Services (WPPS II) Contract Task Orders . The memo informed various State offices of the audit cancellation of the WPPS II contracts due to “insufficient documentation.” Anyway, the State Department did finally provide documents . In going through them I saw that the statement of work referred to semiannual performance assessments that the State Department was supposed to do of its contractors. So I requested copies of all six month performance reports, for the three WPPS contractors then operating in Iraq, from the time they each first started operating in Iraq through the last completed performance report, as of September 16, 2008. On February 13 I finally received documents responsive to that request. Of course, what I received is only a fraction of what I requested and some of what I received was incomplete, or in State Department jargon, “released with excisions.” Still, let us be grateful to the State Department. Because this documentation provides a long overdue inside look on how the State Department oversees the implementation of its contracts by its contractors. Now, before going any further I gladly acknowledge that firms like Blackwater, DynCorp and Triple Canopy had and have very difficult jobs. Trying to protect people in a war zone is dangerous work. Given the first few years after the initial invasion of Iraq by U.S. forces, when contractors were often bereft of realistic guidance from the U.S. government on what they could and could not do, coupled with a government bureaucracy that was ill-equipped to do effective oversight back in the early years of Operation Iraqi Freedom, not to mention a protect the client at all costs attitude on the part of some contractors, it is not difficult to understand why sometimes things went wrong. But in spite of that companies very often did good, even great work. And, as any reasonable person might suppose, sometimes they screwed up royally. Of course, some in industry just can’t bring themselves to acknowledge the obvious. They would rather blame the messenger and accuse the media of pursuing “spicy merc” stories than admit that sometimes a contractor messed up. What these documents provide is information on how the State Department rated its contractors on criteria such as quality, cost control, business relations, timeliness of performance and customer satisfaction. Today we look at Blackwater. The State Department assessment, dated July 1, 2008, comes about nine and a half months after the killing of 17 Iraqi civilians at Nisour Square in Baghdad by Blackwater contractors. According to Paul Isaac, the DS/OPO/HTP (Department of State/Office of Overseas Protective Operations/High Threat Protective Division) contracting officer representative: During the late summer and fall of 2007, actions by Blackwater WPPS management personnel, concerning two task orders, caused the program office to lose confidence in their credibility and management ability. Blackwater management’s lack of communications and handling of the two separate incidents disrupted Program Office and Regional Security Office operations. While the Program Office was in the process of requesting the removal of the Local Program Manager, the Director and Deputy Director of WPPS Operations, and two project managers, the personnel in question resigned from the WPPS program. You can read the full evaluation here ( Part 1 and Part 2) . As an interesting side note, the evaluation was signed off by contracting officer Kiazan Moneypenny. I noted in my book that: It did not help Blackwater when the press reported that the State Department interceded in a congressional investigation of Blackwater, ordering the company not to disclose information about its Iraq operations without approval from the Bush administration. The State Department official, Kiazan Moneypenny, wrote Blackwater vice president Fred Roitz to “advise” him of Blackwater’s obligations under the State Department’s contract. Among them was this statement: “All documents and records (including photographs) generated during the performance of work under this contract shall be for the sole use of and become the exclusive property of the U.S. government.” These obligations, according to the contract, exist in perpetuity, not just until the contract expires. As a result, Moneypenny told Roitz to make “no disclosure of documents or information generated under [the contract] unless such disclosure has been authorized in writing by the Contract Officer.”

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Tim Gibbon: Prevention Before Cure: Preparing and Keeping Your Website in Order

February 17, 2012

In competitive marketplaces the web, related social media and even mobile channels can be unforgiving. The window of opportunity to entice and maintain interest is limited if the quite straightforward approaches aren’t adopted. Fail here, and the task of ‘turning the frown upside down’ could become an impossible mission. Therefore, the best course of action is to follow the prevention before cure school of thought – where presenting the brand properly within digital environments better assists in establishing health and maintaining it. Businesses may be at different points on their journeys in terms of their website; e.g. a new site, a refresh, or maybe it’s a little grey around the sideburns. They need to check on the health of their sites, which shouldn’t be managed in silo from the rest of its operations. Above all, the impact that any health check and implementation of changes may have should be tempered with what may have an impact with the offline presence of the business. Indeed, how they should be managed, so that they are seamless. Focusing on websites, there are many approaches that businesses could take not only to give their brand a digital health check, but implement processes taking into consideration many other facets that have an impact upon the business. Every website owner should know more about their web presence and site. On a basic level how their customers arrived, what they did when they got there and how they left. Without knowing this basic and essential information, all facets of a business (including customer services, marketing, PR and sales), whether it is off or online may suffer. With real-time tracking available now, the excuses not to do this are limited. The internet is a lot less forgiving than any other medium available today, due to the rate it moves and how much more social it has become. It’s a combination of factors that influence and instil confidence. Some of the factors seem so simple and obvious, and from experience the devil will be in the detail and addressing the simple obvious issues can separate success from failure. The ways best to avoid common mistakes include looking at some of the top mistakes below*. Website performance. Monitoring site performance, e.g. referrals, how users arrive, entry pages and most popular / unpopular pages can help a business ascertain how their activity off and online impacts the traffic driven to a site. Unmasking interest. Monitoring drop off points and exit pages and understanding why the user has left; allows the business to find and apply measures to reduce this from happening. It could be a number of reasons, so this needs to be addressed as soon as is able. With many free and low cost web analytics tool with countless tutorials to guide businesses owners, there isn’t an excuse not to embrace this. Reeled them in? Seal the deal. Complicated or long billing process (perhaps users cannot see the submit button, or it’s too small and so on) which deters visitors from making that all-important transaction. Web analytics can monitor entry and exit to purchase, so this information should be available at business owners fingertips ensuring more informed decision to help perfect this process. The final purchase. After addressing the above, having the transaction process as smooth as it can be could be all undone at final hurdle due to restrictive. payment methods. If businesses are online, then they should be trading online and in doing so have international appeal (and in turn its product / services). Payment methods should reflect this being secure, flexible with plenty of choice for the end user. There are numerous providers that cater for this and the upside is they will make more sales catering for credit wise customers, who are more security conscious than ever. Aesthetics are incredibly important, but a site and business need to do more than this. Beyond providing great products, services and ‘being good, or doing no evil’, the appeal to customers can be achieved by addressing some simple requirements below. The digital check list* Create, and maintain sensible URLs throughout the site taking visitors on interesting journeys From web analytics present clean, crisp and intelligent websites that are easy to navigate, but think how online can translate into offline promotions / presence Avoid usability and accessibility issues, ascertaining how users can access and interact with the brand (think mobile, tablet and web) Have more than a form to get in touch, provide a postal address, telephone number and so on State how long web enquiries will take to be answered, particularly if serious about customer service and building much need long-term relationships and pass-a-long factor Explain pricing structures easily with special offer or discounts shown clearly, remember everyone loves an offer and bargain Explain returns policy (and/or refund); a clear and simple explanation (in plain English) of what it is and what it entails Present clear privacy and terms and conditions (T&Cs) that may be read at visitor’s leisure and are reviewed as necessary Ensure that it is clear to whom the website applies. Businesses are global with a web presence, so if there are any restrictions (e.g. UK delivery only) state this from the outset to avoid disappointment Think social (incorporating social media into retail activity), but don’t be governed by it. Appreciate how word-of-mouth can be shared with positive and negative experiences As a rule of thumb, become your audience; use and test your website as if you are a customer (new and old). It sounds obvious and even cheesy, but businesses may look at their website differently, though someone else’s’ eyes. Next time, how to manage a brand online with a website and what your options may be. *Note this isn’t an exhaustive list, but an initial guide of what to consider.

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Eric Larnick: Disney & Marvel Act Like Villains Toward ‘Ghost Rider’ Creator

February 16, 2012

Whether you’re excitedly planning on seeing “Ghost Rider: Spirit of Vengeance” this weekend or scoffing at the absurdity of paying to watch Nic Cage urinate fire (in 3D), there’s an ugly publicity battle going on behind-the-scenes between the Disney corporation and a 68-year-old former comic book writer in ill health. It concerns the complicated field of U.S. Copyright Law and is a clear example of the lack of ethics that exist in both the comic book industry, an artform that touts its super-heroics and moral inspiration, and the Walt Disney Company. Gary Friedrich, former writer for Marvel Comics has been involved in a long dispute over his claim as the creator of “Ghost Rider,” the motorcycle-riding, flaming-skullhead monster that made a worldwide gross of $228 million when Sony Pictures adapted the character for the big screen in 2007 . He brought a lawsuit toward Marvel, in an attempt to get royalties he felt he was due. After a protracted legal battle — during which Marvel became under the employ of the Disney Corporation and its massive defense team — the court has settled the dispute and Friedrich now finds himself owing the billion-dollar media empire more money than he has. The Facts of the Case Friedrich claims that he developed the character independently in 1968, and sold it to Marvel for publication, writing the first appearances of the character in 1972. However, according to Friedrich’s legal team, Marvel failed to register “Ghost Rider” with the U.S. Copyright Office, and as such, the copyrights returned to him in 2001. Friedrich filed suit with the company when the first movie came out to obtain royalties he felt belonged to him; during that time he sold “Ghost Rider” merchandise at comic book conventions, with the reasoning that it was his property to exploit. The case was finally resolved in December of 2011, with the court ruling that when Friedrich endorsed his paychecks for the freelance writing gig, he was consenting to handing over the ownership of the character to Marvel. At that time, Marvel’s regular practice was to include copyright language on the paycheck — meaning you had to hand over the copyrights when it was time to get paid. Marvel, now backed by Disney, countersued Friedrich for selling unlicensed merchandise of their property, and last week, Marvel/Disney (let’s call them Misney) agreed to drop the suit if Friedrich pays $17,000 . Currently Friedrich is unemployed and suffering from various health ailments. Many writers and artists in the comic community have rallied to set up a donation plan for him to help fight his legal fees , hoping that some of the people who are going to pay to $17 to see a 3D screening of “Ghost Rider” this weekend, are willing to set aside a few dollars toward one of the people who actually made the movie possible. ( And if you feel so inclined to donate a few dollars, do it HERE. ) Now there are a couple of important details to take into consideration: 1.) Friedrich’s level of complete ownership is disputed by both “Ghost Rider” artist Mike Ploog and editor Roy Thomas. Unfortunately, there aren’t accurate records from forty years ago, so it’s a mater of hearsay. However, no one disputes that Friedrich is at least co-creator. 2.) Selling merchandise before the copyright case was settled was not a wise move, and was going to provoke the ire of the big corporation. 3.) Misney had every right to counter-sue to protect their property. Here’s Why Marvel and Disney Are the Villains Because they’re making an example out of Gary Friedrich to scare away generations of comic creators from attempting to fight for a share of profits from the work they provided. In this case, a cease-and-desist would have been enough to prevent Friedrich from stepping out of bounds moving forward. Whether you side with Friedrich’s specific claim or not, it’s indicative of unfair business practices that have plagued the comics industry since the first appearance of Superman. Comic companies want to scare away men — now reaching their retirement age — from trying to collect on work they did as freelancers. That work now generates millions of dollars of revenue in movie sales and merchandising. Misney are hypocrites because they present themselves as a “universe of heroes.” They’re not. They’re a brand of merchandise. Marvel is a brand like Ed Hardy or Hasbro or Mcdonald’s are a brand. It’s not about artistic integrity. Misney want you to buy their Ghost Rider comics, buy their Ghost Rider action figures, buy their Ghost Rider Slurpee cups, buy their Ghost Rider t-shirt, buy their Ghost Rider video games. They don’t care about your loyalty to the character, they care about your dependence as a consumer. They don’t care if you defend them or not; they merely want you to buy their stuff and look the other way, when they drive competitors out of business (the competitor in this case is: the co-creator of the new toy they’re trying to sell you, 68 years old, struggling to make ends meet and foolishly signed a contract 40 years ago that never accounted for new forms of media presentation like a movie.) Comic companies like Marvel and DC display no ethical responsibilities to the creators who are generating the content they are trying to sell to Hollywood. And to be fair, that’s their prerogative. We shouldn’t be shocked at a corporation’s inhumanity because corporations aren’t people; with the national focus on the depressed economy, people should know by now that it’s up to the audience (as voters, consumers, etc.) to change a system they think is fundamentally broken or willingly accept working under a system where the only aim can be staying on a corporation’s good side. The History of Comic Creators Getting Screwed It wasn’t until relatively recently that contracts in the comic book industry became reasonably professional. Movie royalties were never a consideration for many years because comic book movies were never a thing that seemed possible. So there are decades worth of bad business deals where artists and writers had no leverage. Whether you’re a fan of the original comics or have come to discover Batman and the Avengers through their massive box office success, there’s a responsibility to be aware of the complicated and unethical history of the men who gave you Superman, Captain America and many more. PHOTOS:

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Dave Johnson: Will American Anti-Labor Policies Infect Europe?

February 16, 2012

I want to send a warning to working people in Europe: when you let your businesses save money by mistreating workers in other countries, it might teach them to think they can save money by mistreating you, too. Over here in the US we have learned this the hard way. We entered into “free trade” agreements that enabled our businesses to take advantage of exploited labor in countries like China, and the plutocrats used that as a wedge against us here to drive down our wages, get rid of our benefits and break our unions. Now your own business leaders are taking advantage of eroded labor rights here, and if you let them get away with this they will want to bring these working conditions back to you. Recently in the post Democracy V. Plutocracy, Unions V. Servitude I described how American companies use China as a wedge to drive down wages and labor rights here, The threat is in the air: “Shut up and take the wage cuts or we will move your job to China.” … Workers in countries like China where people have no say have low wages, terrible working conditions, long hours, and are told to shut up and take it or they won’t have any job at all. They are given no choice. Increasingly workers here have their wages, hours, benefits, dignity cut and are told to shut up and take it or their jobs will be moved to China . Because we are pitted against exploited workers in countries where people have no say, we have no choice. The unions are weakened, the government doesn’t enforce or weakly enforces labor laws and regulations, age, gender or race discrimination laws, worker safety laws, so workers are placed in a terrible squeeze. Workers who try to organize unions are isolated, moved, smeared, fired, humiliated, whatever it takes. In countries like Germany workers are still paid fairly well and have benefits and rights. Here our pay, benefits and labor rights have eroded terribly. This is the result of American companies using exploited labor in countries like China as a wedge to force concessions at home. Can the same chain of events attack wages, benefits and unions in Europe? Last May, Harold Meyerson’s LA Times op-ed, The U.S.: Where Europe comes to slum , described how European companies come here and behave like American companies, … slumming in America is fast becoming a business model for some of Europe’s leading companies, and they often do things here they would never think of doing at home. These companies — not banks, primarily, but such gold-plated European manufacturers as BMW, Daimler, Volkswagen and Siemens, and retailers such as IKEA — increasingly come to America (the South particularly) because labor is cheap and workers have no rights. In their eyes, we’re becoming the new China. Our labor costs may be a little higher, but we offer stronger intellectual property protections and far fewer strikes than our unruly Chinese comrades. … The auto companies of Europe and Japan have opened factories in the nonunion South over the last couple of decades. Not one of them has agreed to refrain from waging a union-busting campaign should their workers wish to organize. Their stance could not be more different from their attitude toward workers and unions in their home countries. Meyerson describes the kinds of anti-union, anti-worker things these companies are learning how to do, As a report released by Human Rights Watch late last year documents, companies that routinely welcome unions, pay middle-class wages and have workers’ representatives on their corporate boards in Germany and Scandinavia have threatened their U.S.-based employees with permanent replacement by other workers as the penalty for protesting wage cuts (that was the German manufacturer Robert Bosch), ordered workers to report on fellow workers’ pro-union activities (that was T-Mobile, a subsidiary of Deutsche Telekom) and disciplined workers who couldn’t show up for unscheduled weekend shifts announced on Friday night (that was IKEA, according to an L.A. Times story). T-Mobile’s Anti-Union Efforts Here is an example. Germany’s Deutsche Telkom is trying to turn their wholly-owned subsidiary US company T-Mobile into a low-wage, low-benefit, union-free dumping ground. Is this an effort to ultimately bring these tactics back home to break Germany’s unions? This is how T-Mobile is operating now: In May T-Mobile workers in upstate New York filed a petition for a union election. Over the next three months management used anti-union “isolate and pressure” tactics to erode support. Instead of letting the workers decide for themselves if they wanted a union, they contested the effort and brought in a “union avoidance” specialist firm. The company used excuses to delay the election, and launched a propaganda campaign, making the workers hear a constant barrage of reasons to suspect union motives, suspect the benefits the union promised, and other reasons not to vote for a union. They were repeatedly required to leave their job to attend meetings and conference calls, on company time, where they were lectured, given misinformation, told they would lose benefits they current had, that unions would make them pay $5,000 in dues every year, told again and again that the union was lying, that union organizers were only telling them things to get bonuses, told they must not ever talk to each other about the union on company time and that if they voted for a union the company would have to eliminate their jobs and contract out the work instead. After enough of this the workers withdrew the election petition. The Sheer Weight Of This Wears You Down When regular people who are just doing their jobs, who work hard and get up in the morning and go home tired and don’t make a lot have to face constant tactics of daily pressure by management, constantly being told that unions are evil and “unions bosses’ and “union thugs” are trying to trick them, and they are put under tactics that isolate them from being able to discuss what is true or not, finally the sheer weight of all of it together can be too much. Again and again when workers try to form a union they are up against these tactics. Management repeatedly calls meetings where they give professionally-crafted propaganda speeches about all the terrible things that will happen if workers vote for a union. If a worker has the courage to stand up and talk about the good reasons for a union, they are excluded from future meetings and isolated from the other workers. (This is when a company stays legal and doesn’t just fire people who favor a union – not an uncommon tactic and it takes years for the company to be penalized for illegal firings, if it ever is.) In these situations management completely controls the message and keeps workers from hearing the other side. Typical Here, Outrageous There This all sounds normal to American workers, because this is what American companies do. This is what workers regularly face when they try to organize to make their workplace better and safer and get things like sick pay, decent wages and some benefits. We have sort of become used to this kind of treatment here. In America we have gone from 30% to 7% union membership because companies are allowed to fight unions, and routinely do things like this. But T-Mobile is wholly owned by a German company. Germany respects workers rights and German workers would be absolutely shocked if they understood that a German company was doing this to workers. They would be shocked to even see a company try to stop a union – why would a good company want to? Will American Anti-Labor Policies Infect Europe? So here is the question for European working people to ask. Will Europe let the US be their China? American companies learned to use China as a weapon against workers here. Will European companies bring American anti-labor practices home as a weapon to break down European worker rights and living standards? Will European companies learn to use American anti-labor practices against European workers? Or will European workers stop this in time? If you think this sort of thing can’t happen in Europe, just look at what is happening to Greek workers right now . US workers are threatened with having to do things like China does them in order to compete. Will German workers be threatened and told things have to be like the US? Will they tell that German public that their policies need to be more “Business friendly?” So this is a warning to European working people. Pay attention to what your companies are doing in the US. You really don’t want them learning to operate the way a lot of US companies operate, or your own wages, benefits and even your jobs could be on the line – like ours are here. This post originally appeared at Campaign for America’s Future (CAF) at their Blog for OurFuture . I am a Fellow with CAF. Sign up here for the CAF daily summary .

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Steve Mariotti: Replicating an Idea, Part 2

February 16, 2012

This is part two of a 3-part series. Read part one here . One great idea can change the world — but only if people know about it and use it. Having a great idea is therefore only half the battle. The other half is replicating it. I’ve spent over thirty years replicating one idea: that every child would benefit greatly by learning to start a small business and, in turn, would positively affect their communities and, ultimately, the entire world. Now that I’ve had some time to reflect on this journey, I can see what worked and what failed to spread this idea. Here are the principles that have worked for me. Twelve Tenets for Replicating an Idea 1. Recognize Your Idea as an Agent of Change Visualize how you want the world to be and imagine your idea as an agent of change. Keep the core idea to one sentence — and then outline the big picture in full detail. Use visuals, define strategy, and encourage discussion: Ask others to envision your goals. This process will define the integrity of your idea, and ensure that it is the driving force behind everything you do. Look for new ideas at the intersection of two seemingly disparate situations that, when overlapped, create a harmonious solution. In my case, those two separate situations were 1) small business training and 2) teaching low income youth. When I began teaching public high school in 1982, these two concepts had yet to be combined. Traditionally, most schools globally are not conducive to entrepreneurial culture. School curriculum is often based on memory recall and isolated problem solving. It tends to lack an overarching framework that connects reading and math to the workplace environment. As a result, my students were often not motivated to learn. When I began teaching them practical business lessons, however, they became very engaged. I discovered that students actively want to apply what they learn in the classroom to the outside world in a real, tangible way — not in preparation for what may arise, but in the here and now. I built my career on this insight. Combining core curriculum with teaching entrepreneurship became a self-sustaining concept, and the mission of providing entrepreneurship programs to inspire young people from low-income communities to stay in school and plan for successful futures encapsulated my vision: Every child can learn to create a pathway to prosperity. 2. Define Your Mission and Your Strategy Your mission is to move the world closer to your vision. Write a mission statement that will distinguish your mission from others and yet allow for creative growth. Defining your mission is essential because it conveys what you do and provides the framework for your actions. It is the context in which current activities are evaluated and from which strategies will be formulated. NFTE holds the value of my initial idea in its mission statement: NFTE provides a highly experiential and academic program that inspires young people from low income communities to recognize opportunity and plan for successful futures by pursuing educational opportunities and starting their own businesses. Your strategy, how you are going to compete, is comprised of the creative tactics you use to accomplish your mission personified by how you utilize your resources. NFTE integrates entrepreneurship classes within school curricula and structures after-school programs, with the goal of teaching business literacy to low-income youth. The three main areas of services are: entrepreneurship and business literacy curriculum; teacher training and certification to implement NFTE programs; and alumni services to provide a network of support for program graduates. This last allows us to evaluate our long-term impact. Every service we offer replicates our initial, core idea: Every child deserves to learn economic self-sustainability. 3. Marshal Your Resources for Greater Impact. Your primary role as change agent will be to marshal resources and to allocate them successfully. Put together a package of resources — facilities, labor, capital sources, branding potential — to support your idea and the organization you will be forming to accommodate it. You will be creating a support system for your idea that will enable you to generate awareness of your mission and provide for future growth. Your legal structure (for-profit or non-profit) will be part of your strategy for gathering resources. Choose carefully, as each has its pros and cons. Work through multiple legal structures and have your idea integrated into other legal structures to get maximum impact and leverage. By infusing your idea into other structures you will be using other organizations’ fixed costs as a vehicle to replicate and advance your idea. And remember, you can replicate an idea without a legal structure simply by publishing and speaking to audiences about it. That was Planck’s methodology. 4. Protect the Integrity of Your Idea: Brand It. Document, copyright, patent and trademark, and be prepared to use the legal system of intellectual property rights as defined in various countries, to solidify your idea into being. You may not own the idea, but you own the expression of it, and this is what you will need to protect. Choosing the right name for your organization is vital. It should make a great first impression and be easily remembered. Include a tagline that emphasizes what you do. Initially, my organization’s name was the South Bronx Entrepreneurial Education Project, but I soon realized that this would not do for a national movement, so I changed it to the National Foundation for Teaching Entrepreneurship (NFTE). As we began to develop international partnerships, we changed the name again, to the Network for Teaching Entrepreneurship (which kept the initials NFTE), with the tagline, Start It Up. We also decided that NFTE should be pronounced as an acronym, “Nifty,” to create an easily remembered nickname. Your name and tagline may change, but getting them right initially can have a significant bearing on your future. Once you have defined your idea in a mission statement and named the organization that will carry your idea into the world, develop a program manual. Write it with scalable impact in mind. Describe your business, where you are located, the products and services you are providing and standards of quality. Include past marketing and sales, and projected goals. In NFTE’s case, our first replication overseas lasted only three years. We chose a partner that had similar goals but did not have the capital to sustain the effort. We realized that without capital you cannot get things done, and we severed the relationship. Fortunately, our agreement included a clause that outlined what would happen if the relationship did not work out. Because we were careful to protect the integrity of our idea and brand it, from the start, we were able to keep all intellectual property, including our name and logo, and begin again. 5. Know Your Story and Tell It Effectively. Every idea worth replicating has a powerful story behind it. How you introduce the motivation behind your idea will become as important as the idea itself. The story of how your organization came into existence is the frame for how you illustrate the changes it will accomplish. The story should be the driving force in your communications. Being mugged by economically disadvantaged young men was my impetus. As a result of this experience, I sought to better the lives of at-risk youth and guide them to a pathway of economic self-sustainability. The idea resulted from a transformative change: After the mugging I suffered from PTSD. To overcome it, I decided to confront my fear of urban youth by becoming a New York City public high school teacher. I quickly lost my fear of these young people became part of the local community and became filled with a desire to teach them entrepreneurship and an ownership mind frame, so that none of them would ever have to resort to crime. A story is compelling when it is true, told with passion and energy in a concise and easy-to-understand way, and centrally focused on human behavior. Others will need to know how your idea can help people live better lives, and why you are the person to execute it. Being able to communicate your idea to others through the media will be absolutely essential — the most successful way to do this will be through a motivational story. Developing a concise “elevator pitch,” so you can share your idea across quickly and succinctly is also important. 6. Your Unit of Change: the Numbers that Will Drive You. For your idea to be replicated throughout the world, its effects must be measurable. Find the “unit of change” for your idea — the unit you will use to measure the effectiveness of your idea. From day one, my unit of change was the cost of the NFTE program for one child versus the loss in productivity if that child were to drop out of school. Once you have defined your unit of change, you can perform cost/benefit analysis and use it to create a powerful public awareness message: This is the impact your idea is having. Describing the impact in economic terms will help you measure success, and drive your future funding efforts. At present, the NFTE program cost-per-student is under $1000 annually, and the benefit of keeping a child in school and successfully equipping him or her for the workforce is over a million dollars — the estimated loss in lifetime wages for a high school dropout (per the Alliance of Excellent Education). The escalating rate of high school dropouts causes an alarming total loss of $325 billion in wages in the U.S. alone. Knowing your unit of change lets you translate the worth of your idea to others. For NFTE graduates, street smarts become business smarts and their economic impact on the world is in the billions of dollars. You and your team should know and internalize the numbers that drive performance, and the financial implications of each choice made along the way. Establish how you measure success, and use your measurements to promote the organization through public-relations efforts. Measuring success from the start will also incentivize your employees to further your mission, providing them with a simple and effective way to measure their impact.

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Jason Alderman: Talking Finances With Your Valentine

February 14, 2012

As you and your spouse celebrate Valentine’s Day over a candle-lit dinner, you may want to avoid romance-killing topics like, “Honey, let’s talk about our financial future.” But you really should have that conversation sooner rather than later if you want to keep your relationship on a healthy footing. In any marriage, major life changes may require you to reassess how you manage the family finances. Unfortunately, many couples don’t make time to plan ahead and are later caught off guard. For example: If you have children, are you budgeting for their medical care, food, clothing, education, etc.? A bigger family also sometimes means needing a bigger house — and downsizing after they leave the nest. As your parents age, you may need to care for, house or financially support them. During hard times, grown children and other relatives may also tap you for assistance. Changing career goals, continuing education and taking time off work to raise a family can all impact your income and ability to save for retirement. Do you have an emergency fund for unexpected events like urgent medical expenses, layoffs or reduced work hours or being forced to move for a job? And, speaking of retirement, are you still on the same page about when, where and how you wish to retire? Were you counting on home equity to help finance it? If you haven’t had a financial heart-to-heart lately and aren’t sure what to do next, here are a few suggestions: Make a financial “date.” You’re both busy and have probably divvied up financial chores like bill paying and checkbook balancing. But even if you’re in complete agreement on money matters, the family “accountant” should keep his or her spouse in the loop — if for no other reason than so they can easily take over in an emergency. Set up monthly or even weekly meetings to discuss things like bill payments, progress or setbacks regarding savings goals, budgeting for upcoming expenses (property taxes, insurance premiums, back-to-school supplies, etc.), and strategies for coping with unforeseen expenses (car repairs, emergency dental work, tuition increases, etc.) Don’t postpone uncomfortable discussions. Should one of you accidentally bounce a check or miss a payment, don’t wait until your next powwow to address it or try to hide the problem. You’ll only make matters worse and create an atmosphere of mistrust. Fess up and deal with the issue right away — you might even save yourself additional late fees or penalties. Be united. When the news isn’t good — say your 401(k) balances tanked last quarter or one of you got laid off — communication is all the more important. Whether you need to temporarily tighten the budget or make a major life-altering decision like postponing retirement, talk it through and be prepared to compromise so neither party becomes the bad guy. Reaffirm your goals. Couples often start out with one game plan but then life deals an unexpected hand and goals change. Touch base periodically on how you both feel about such major issues as family size, home ownership, career changes, financing college for your kids (or yourselves), financial risk appetite, when and where you’ll retire, and taking care of elderly parents. Update legal documents. Make sure your legal and financial documents are up to date and reflect your current wishes, including wills, financial and medical powers of attorney, life insurance policies, retirement accounts, investment funds and any other accounts where beneficiaries or people who control your health or finances are named. This is especially important if you’ve added — or lost — family members in recent years. Follow your budget. Some of the worst marital disagreements occur when one or both parties sabotage the family budget. If you don’t already have a budget, many free tools are available online. Check out the U.S. Treasury Department’s MyMoney.gov , Mint.com and Practical Money Skills for Life , a free personal financial management site run by my employer, Visa Inc. Seek help . If you discover that you’ve gotten off track or need help realigning your financial goals, a number of outside resources are available: The National Foundation for Credit Counseling can help you locate a free or low-cost credit counselor. You can find a financial planner or advisor through the Financial Planning Association , the Certified Financial Planner Board of Standards or the National Association of Personal Financial Advisors . On Valentine’s Day, don’t kill the mood with talk of budgets and such; but do make sure that before too much time passes, you reopen the doors of financial communication so you know you’re both working toward the same goals. This article is intended to provide general information and should not be considered legal, tax or financial advice. It’s always a good idea to consult a legal, tax or financial advisor for specific information on how certain laws apply to you and about your individual financial situation. To participate in a free, online Financial Literacy and Education Summit on April 23, 2012, go to Practical Money Skills .

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Ben Bernanke: Blame Housing For This Lousy Recovery

February 10, 2012

Housing, with some help from Wall Street, got us into the Great Recession, and it is housing that has made the recovery from that recession so slow and painful, Federal Reserve Chairman Ben Bernanke said today. “The state of the housing sector has been a key impediment to a faster recovery,” Bernanke said in a speech at the National Association of Homebuilders International Builders’ Show in Orlando, Florida on Friday. “In the typical economic recovery, a resurgent housing sector helps fuel reemployment and rising incomes,” he added. “But as you know all too well, that scenario has not played out this time.” Bernanke cited economic studies that suggest the collapse in home prices might be shrinking consumer spending, the largest engine of U.S. economic growth, by between $200 billion and $375 billion a year. Underwater homeowners are also unable to move to find better, higher-paying work or borrow against home equity to help with emergency expenses, Bernanke observed. So begins the vicious cycle in which clusters of foreclosed homes lower property values throughout entire communities and hurt property tax revenues, which lead to cutbacks in municipal services that push house prices still lower. Economists have seen evidence lately that the housing market might finally have hit a bottom after a collapse and slump that has lasted more than six years. But home prices and new-home construction are still in a deep pit despite record-low mortgage rates that have made housing theoretically more affordable than ever . The Fed helped push those interest rates to rock-bottom lows in part to support the housing market. But their efforts have mostly been met with frustration. Bernanke suggested the still-weak housing market might be making it hard for low rates to do much good. Banks, suffering from losses on bad mortgages are afraid of taking still more losses so tighten lending standards, making borrowing more difficult even at low rates. “The Federal Reserve, in its supervisory capacity, continues to encourage lenders to find ways to maintain prudent lending standards while serving creditworthy borrowers,” Bernanke said. “But the slow recovery of the housing market and the economy” and other factors are keeping lenders cautious. He also acknowledged that the recovery in housing will continue to be painfully slow, estimating that one million foreclosed homes owned by banks could hit the market each year “for the next few years,” keeping downward pressure on prices. One possible solution, he acknowledged, would be to turn some of these foreclosed properties into rental properties, to help meet rising rental demand. But he also acknowledged there was no silver bullet for housing. Without it, the recovery could stay slow and painful for a while longer.

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Owner Of ‘Illegal’ California Gold Mine Surrenders To Face Charges

February 10, 2012

SACRAMENTO, Calif. (AP) — A man who state and local officials say is running a massive illegal gold-mining operation in California’s Sierra Nevada surrendered Thursday to face 14 criminal charges of operating without permits and polluting a creek. Joseph Hardesty also faces state fines of nearly $900,000. He was booked into El Dorado County Jail on the charges, which include four felonies, and was being held in lieu of $75,000 bond. His attorney, William Brewer, says Hardesty turned himself in after investigators from the district attorney’s office searched for him at his mother’s home and the home of his partner in the Big Cut Mine, near Placerville. Hardesty surrendered a day after The Associated Press published a story about the mine, which is in the Sierra foothills between Sacramento and Lake Tahoe, and his three-year battle with authorities. “It’s unfortunate that our government has decided in this case to take away our liberties and our rights without adequate process,” said Brewer, of San Diego. “Joe really is a very honorable person and I just wish things were different.” He denies his client is mining gold, saying he is operating a sand and gravel business to complement another he owns in Sacramento County. State and local officials say they have evidence and statements indicating the site is being mined for gold at a time when the precious metal’s price is hovering near $1,700 an ounce. Hardesty, 54, had promised to surrender last week but failed to appear. Authorities said Hardesty turned himself in at the sheriff department’s office in Placerville about 11:30 a.m. and was taken to jail without incident. Brewer said investigators had looked for his client everywhere except where he was — his home in Elk Grove, south of Sacramento. Hardesty contends that he has a historic right to operate the Big Cut Mine on nearly 150 acres he bought seven years ago, based on a reclamation plan he had filed with El Dorado County in 2009 and $188,000 in bonds. Local authorities and the State Mining and Geology Board disagree. On top of the mining board’s fines, El Dorado County charged Hardesty with mining and grading without permits, working despite stop orders, releasing sediment into Weber Creek, violating zoning laws, and using hazardous materials without proper permits. Hardesty, his wife, Yvette, and his partner, Rick Churches, brought in heavy equipment to cut into a steep ridge high above the creek, although Joseph Hardesty is the only one facing charges. The site is guarded by locked gates covered with “no trespassing” signs, but an AP reporter and photographer were able to view the mining operation from a heavily forested ridge a few hundred yards away. Late last month, local and state inspectors with a warrant entered the property and documented at least 30 acres stripped bare, four drainage ponds and a football-field-sized gravel bed about 60 feet deep. Inspectors previously found gold on what is called a shaker table, which is used to separate the heavy metal from sand and gravel. Bruce Person, an engineer with the county transportation department who helped inspect the property, said a previous owner found an ancient riverbed on the property could produce between 1 and 3 ounces of gold for every ton of material. El Dorado County Deputy District Attorney Michael Pizzuti declined to comment Thursday on Hardesty’s arrest. He previously told the AP that Hardesty’s partner told a county inspector that they intended to remove gold and sell the rocks it was separated from as gravel. Hardesty already was on probation after pleading no contest last year to a misdemeanor charge of storing unpermitted hazardous waste in Sacramento County. He now faces allegations that he violated his probation by continuing to operate at both the Sacramento and El Dorado locations. The fines were levied in January by the State Mining and Geology Board, a division of the California Department of Conservation. The penalty climbs by $15,000 for each day he continued to operate.

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Retail Outlook: Cautious Optimism as Tipping Point In Shopping Center Rents Expected In 2012

February 9, 2012

Retail property rents are expected to begin to rise later this year as demand for store space in shopping centers and malls slowly soaks up available space and, combined with the dearth of new space under development, finally tips the supply and demand balance. Improvements in market fundamentals are starting to spread into secondary markets and smaller shopping centers typically occupied by Mom-and-Pop businesses, according to CoStar’s 2011 Retail…

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Good Vibrations the Continuing Theme for the Multifamily Business

February 9, 2012

Overlooking the fact that the 20- to 34-year-old renters driving the robust apartment market are probably too young to remember the Beach Boys, apartment REIT Camden Property Trust played the surfer anthem on its pre-earnings conference call music to set the theme for the ongoing apartment industry rebound. “Our pre-conference music was chosen today to commemorate the 50th anniversary of the Beach Boys,” explained Richard J. Campo, chairman and…

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Graphic Packaging Inks 109,556-SF Office Lease

February 8, 2012

Graphic Packaging International, a packaging manufacturer, leased 109,556 square feet at RiverEdge Summit at 1500 RiverEdge Parkway in Atlanta, GA. The company will initially move its headquarters into 86,525 square feet in the first quarter of next year, but iStar Financial, the owner, will also build a state of the art, 23,000-square-foot product development center that will be attached to 1500 RiverEdge Parkway. The property is a nine…

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