Boca considers Mizner mastermind's pitch for new downtown project

BOCA RATON - The city wants to transform its downtown — again.

Twenty years ago, Mizner Park was supposed to create a livable, walking-friendly city center with shops, restaurants, an amphitheater and condos. So far, it's cost more than $100 million in taxpayer money.

Now, city leaders are looking to Tom Crocker, the developer who built Mizner Park, to complete a decades-old vision. In coming weeks, Crocker and a consultant will brief city leaders on a grand plan to complete the downtown — another European-style pedestrian plaza lined with offices, shops, homes, restaurants and a hotel — that he estimated could cost hundreds of millions. To build it, Crocker says he needs a financing structure similar to that used with Mizner Park. The plan hinges on using taxes generated by rising property values.

But that financing structure didn't pay off with Mizner Park, often leaving the city to foot the bill with other sources of taxpayer money. Even after spending tens of millions more on its downtown than neighbors, city officials say they trail the competition.

Controversy over Mizner Park spawned new state laws, a restructuring of city government, increased taxes, a slew of lawsuits and debt that taxpayers will be paying for more than a generation. The new project is being proposed at a time of real estate uncertainty and budget tightening.

The city borrowed almost $70 million for Mizner with the idea that it would pay for itself as downtown property values went up. However, projections proved wrong for years, forcing the city to increase its utility taxes and to pour $20 million into the project, city records show.

It wasn't until two years ago that skyrocketing property values generated enough money from downtown to cover loan payments. Meanwhile, bankers, lawyers, consultants and underwriters pocketed fees close to $7 million in refinancing the Mizner loan twice. The city still owes about $54 million.

In 2000, Crocker sold his share of Mizner; he declines to say for how much. After three changes in ownership, the plaza is now owned by a Chicago-based developer. The city owns the land.

Crocker defends Mizner and the new project. People can look at downtown development spurred by Mizner, which is what the city promised, Crocker said in an interview.

"It did exactly what the city said it would do," he said. "Now, we can complete that vision."

Mizner Park was called a catalyst for downtown redevelopment. Most would agree that it did that — but at a cost to taxpayers that includes the direct Mizner debt and another $34 million poured into landscaping, widening roads, installing sewer and water lines and fancy street lights.

Unforeseen challenges
It started in 1989, when voters approved buying the 30-acre site where the dilapidated Boca Raton Mall sat, upgrading it and leasing part of it to Crocker for an "urban village." Teachers Insurance and Annuity Association, a large pension fund, backed the developer and together they owned the buildings.

The rental income from Crocker and money from what's called tax increment financing, based on rising property values, were supposed cover loan payments. As a backup, the city pledged taxes residents pay on electricity, telephone bills, water and fuel. For 10 years, the city avoided using that by cobbling together money from advanced rent and other sources.

What city leaders didn't anticipate was state lawmakers reacting to Mizner by changing Florida laws to, in effect, prohibit money from two taxing districts — hospitals and children's services — from going to loan payments.

They couldn't see lawsuits coming, including one filed against the city by the mayor at the time, that delayed downtown development. And they couldn't know that the savings-and-loan crisis of the 1980s would leave tracts of downtown office space empty.

Add to that a recession in the early 1990s and that no one predicted the property value of the entire downtown would decrease from 1989 to 1995 by $22 million. In 1991, voters reacted by passing a referendum that ousted the independent seven-member CRA board and put City Council members in charge of the agency.

In a 1997 report the city wrote: "The redevelopment plan has worked as anticipated, but the financial plan has proven to be unrealistic to this point due to the magnitude of unexpected negative events." That year, utility taxes rose to cover loan payments.

"It sounds like the idea was good, but the execution wasn't timely," said Stephen Blank, a senior fellow in finance at the Urban Land Institute, a Washington, D.C.-based group that studies real estate.

The spine plan
Just as Mizner started paying for itself in 2005, council members started pushing for what's often referred to as a "pedestrian spine" connecting downtown's two main attractions: Mizner and Royal Palm Place. Soon thereafter, Crocker made his pitch.

"This is a no-cost proposal to the city of Boca Raton," he said.

Real Estate Designers offers totally innovative solutions for your software development, Internet programming, real estate web design and hosting needs. Our service includes domain name registration and real estate web design. Real Estate Designers provides the complete solution including design, application development and marketing.

source: sun-sentinel.com

New tax break would help most, but don't expect a fortune

About 220,000 Palm Beach County homeowners would see a property tax benefit from the "super exemption" headed to a statewide vote in January, but for many the savings could be fleeting.

A South Florida Sun-Sentinel analysis showed that 63 percent of those who own a primary residence in Palm Beach County would benefit, which is more than the 52 percent legislative analysts had predicted. However, the average savings is far less — $1,212 — than the Legislature estimated, the Sun-Sentinel found. State analysts said the average savings would top $2,000 in the first year.

Among the potential beneficiaries of the new, bulked-up homestead exemption, about one in three — 76,891 homeowners — would pocket less than $500 in savings the first year, the Sun-Sentinel analysis of tax data showed.

Even homeowners who benefit should be wary about embracing the new exemption, experts say, because there would be no cap to protect them from dramatic jumps in real estate taxes such as with Save Our Homes.

"The taxes are going to go up over the long run," said Chris Bender of Wellington, an engineer who would save $1,267 on his initial tax bill on his $463,000 home in the Village Walk development. But he said he prefers Save Our Homes because of the 3 percent cap on yearly tax value increases.

"Sure, I stand to save money, but in the long run, I pay more and it's bad for the economy. I don't know how it got through."

The "super exemption" is the centerpiece of a package Gov. Charlie Crist and the Legislature tout as the largest tax cut in Florida's history.

If the amendment passes in a Jan. 29 statewide vote, current homeowners could choose to keep their Save Our Homes tax break or opt for the new homestead exemption.

As a rule, new buyers and owners of moderately priced homes would save under the new exemption, but high-end homeowners and longtime homesteaders are better off under the current system.

The Sun-Sentinel analyzed tax data on 351,317 homesteaded property owners in Palm Beach County to find out who would benefit and who would not. About 220,000 save between pennies and $4,196 on their tax bills, while the remaining 131,000 are better off under Save Our Homes.

More than 5,000 low-income seniors and owners of inexpensive homes would have their property tax bills reduced to zero.

With the new exemption, the average bill among beneficiaries would drop to $2,718 — a 31 percent savings.

But Property Appraiser Gary Nikolits said people should be skeptical of switching. Most people who plan to stay in their home for more than a few years are better off with Save Our Homes, he said.

"It's the same as an adjustable-rate mortgage," said Nikolits, noting that despite the current real estate funk, homes usually grow in value at about 7 percent or 10 percent a year. "There's a lot of benefit up front, but as it continues to adjust, those benefits evaporate quickly and you end up paying a whole lot more than you would under the current system."

In middle- and low-income communities, the "super exemption" would produce big benefits, at least temporarily. In the Bexley Park affordable-housing development in Delray Beach, where homes are worth an average $270,000, all 208 homesteaders would see savings. The average discount: $1,773.

Mitchell Katz, 36, bought his home in Bexley Park for $225,000 in 2005. He'd save more than $1,500 in the first year with the new exemption, but he plugged his values in a tax calculator and found out he'd pay more over time." Tough to turn $1,500 down, but I don't think it's a very wise move over the long term," said Katz, a university administrator. "I'm looking at staying in my house for a long time. Being short sighted, when everything's tight, it's easy to say yes, do it. But looking long term, I'm probably leaning toward voting against it."

The new system favors lower-priced property with its three tiers for setting taxable value. A $200,000 home would be taxed at just $50,000 in value, while a $1 million house would be taxed on $805,000 in value. Thus, vast numbers of owners in developments such as Boca Raton's Royal Palm Yacht & Country Club, where homes run more than $2 million, are better off under the current system.

Frank Fahy, 71, is an example. He pays about $5,100 in taxes on his $527,000 oceanfront condo in Juno Beach, where he's lived since 1993. Under the "super exemption," his taxes would jump to more than $7,000. He's voting against the amendment and is frustrated the Legislature didn't make his Save Our Homes tax break portable.

"I think there's gotta be a better equilibrium," he said. "The real estate market, too, is being killed, absolutely killed. A lot of people who are looking to move, we're locked in. Anyplace I would go to get something comparable, I'd have to pay $15,000, $16,000 in taxes."

Statewide, legislative analysts said 73 percent of all homeowners would save with the "super exemption," with an average discount of about $1,300. But for local homeowners, especially given South Florida's sharp rise in real estate values in the last five years, savings are dictated by how much your home is worth and when you bought it.

"In this plan, the savings are significant. But there's still not enough, especially for South Florida," said state Rep. Adam Hasner, R-Boca Raton, who helped push the plan through the Legislature during a June special session. "There were better approaches for tax relief. The political realities made the current approach the only alternative."

Rep. Carl Domino, R-Jupiter, the Legislature's only Republican to vote against the "super exemption," said the new system simply doesn't work in South Florida.

"Why should the average voter give up the knowledge that under Save Our Homes, their taxes are only going to go up 3 percent a year for a sort of gamble? People will pay for certainty," he said.

Real Estate Designers offers totally innovative solutions for your software development, Internet programming, real estate web design and hosting needs. Our service includes domain name registration and real estate web design. Real Estate Designers provides the complete solution including design, application development and marketing.

source: sun-sentinel.com

Homeowners fight to make rising payments

The nation's mortgage crisis hasn't hit bottom yet, but many homeowners have.

They may be delinquent, in foreclosure or scrambling to deal with adjustable mortgage rates that will soon spike, putting their monthly payments out of reach.

As the credit crunch takes a toll on homeowners, a growing number are seeking help -- and getting it.

Local mortgage counseling agencies say their phones are ringing constantly and their clientele growing exponentially these days.

"We see clients across every age, income level and household status," said Richard Schram, projects director for Consumer Credit Counseling Service of Central Florida in Orlando. "And the increase in clients this year has been dramatic."

The caseload at ACORN Housing Inc. in Orlando has also skyrocketed, said Laura Johns, director of the unit, which has low- and moderate-income clients.

"I'd say that at a minimum, we've tripled what we did last year at this time," she said.

Among its clients, Ada and Santos Cruz worried they couldn't keep their Orlando home much longer.

Both in their early 60s, the Cruzes were battling the rising cost of an adjustable-rate mortgage they took out in the 1990s. The rate had grown from 6.44 percent to 8 percent last year and was headed up again.

She earned a modest salary as a juvenile-detention officer; he was on disability income. With their mortgage rate topping 9 percent, compounded by other debts, they knew something had to be done.

Early this year, with the help of an ACORN housing counselor, they tapped into a program for moderate-income borrowers, ditched the old loan and locked in a new fixed-rate loan at 6.1 percent, buoyed by their good credit rating.

"From the beginning, it wasn't our choice to take that adjustable mortgage," Ada Cruz said. "At the time, they just bombarded us with paperwork telling us that was all that was available to us. But now, we feel like this is smooth sailing. We're not in trouble anymore."

ARM 'sticker shock' kicks in

Millions of homeowners have experienced mortgage "sticker shock" as their adjustable rates have kicked in. More than $1 trillion in mortgage debt is expected to adjust higher in 2007 alone, triple the amount last year, according to First American Loan Performance, a research firm based in San Francisco.

Lured by often artificially low teaser rates, many borrowers used ARMs to buy homes beyond their means during the housing boom. As those introductory rates expire, some people have seen their monthly mortgage payments almost double.

Credit counselors can help them get back on track. As soon as there are signs of trouble, cash-strapped homeowners should call their mortgage lender, the counselors say. A call to the lender, or mortgage servicer (if the loan has been sold), may yield surprising results.

Some lenders will renegotiate

As home prices fall, sales plummet and the reins on financing tighten, the housing slump has made lenders more receptive to negotiate repayment plans, loan modifications or refinance deals, counselors said.

"We're seeing mortgage servicers much more willing to lock in the initial teaser rate and fixing it for the rest of the loan," said Michael Shea, executive director of the national office of ACORN Housing Inc., a nonprofit counseling agency based in Chicago. "For some people, that is enough to make the loan affordable."

Many ACORN clients can qualify for a loan-relief program for low- and moderate-income people that the agency manages with Bank of America, officials said.

"If people can come to us before they are late with their mortgage payment, I'd say they have a 75 percent chance of qualifying and getting their mortgage refinanced," said Johns, ACORN Housing's Orlando director. "Of course, that depends a lot on individual circumstances, credit rating and other issues."

Most people who come to the Consumer Credit Counseling Service of Central Florida are already delinquent on their mortgage or in foreclosure, said Schram, the projects director. The agency even counts among its clients some homeowners in fashionable Baldwin Park, a planned community near downtown Orlando, he said.

Overall, the agency has a 60 percent success rate in helping people deal with foreclosure and renegotiate their home loan, he said. "Many people wait too long to ask for help because it is such a traumatizing time for them," Schram said.

If homeowners seek help from an agency at the first sign of mortgage trouble, experts said, it will increase their chances of financial survival and make them less susceptible to "foreclosure rescue" scams.

"There is a lot of desperation out there, and where there is desperation, there is always a scam artist looking to take advantage," said Jordan Goodman, a former writer for Money magazine and publisher of www.moneyanswers.com. "Talk to your lender. Talk to a housing counselor. Unfortunately, too many do the opposite. They go into hibernation."

Real Estate Designers offers totally innovative solutions for your software development, Internet programming, real estate web design and hosting needs. Our service includes domain name registration and real estate web design. Real Estate Designers provides the complete solution including design, application development and marketing.

source: sun-sentinel.com

Nationwide dropping coverage for thousands of Florida homeowners

Another big Florida property insurer is dropping customers to reduce its storm risk statewide.

Nationwide Insurance said Tuesday it plans to dump 39,000 homeowner insurance policies, including 6,200 in Palm Beach County and 2,000 in Broward County.

Two years ago, Nationwide began jettisoning 35,000 homeowner policies statewide and stopped taking on new property insurance customers. The company will finish the earlier round of policy cuts by mid-2008.

Earlier this year, State Farm Florida Insurance Co. and Allstate Floridian Insurance Co. said they were shedding 156,000 policies following busy hurricane seasons in 2004 and 2005.

The Nationwide policy cuts will be made on customer renewal dates and start early next year, so affected homeowners can continue their coverage through the Nov. 30 end of hurricane season. The first notices alerting policy holders will go out in September.

The Columbus, Ohio-based insurer, the fifth-largest in Florida, also is dropping 1,600 commercial policies statewide but did not have a breakdown Tuesday of the cuts by county.

"It goes without saying that this is a difficult business decision, but one we need to make to continue to be there for our remaining customers," spokesman Eric Hardgrove said.

The announcement is yet another blow to Florida's reeling property insurance market.

Insurers have started leaving Florida or drastically cutting their policies in the state. Those that remain are increasing prices dramatically, and that's after Gov. Charlie Crist pledged to cut rates during a special legislative session in January.

The Legislature passed a law that enabled companies to buy cheaper reinsurance, which is insurance for insurance companies, and pass savings on to policy holders. But many homeowners complain that they won't see significant savings.

Late Tuesday, the Florida Office of Insurance Regulation released a statement regarding Nationwide, saying "it is unfortunate that this is largely reflective of what ... the private property insurance market in Florida has been doing."

In July, State Farm, Florida's largest private home insurer, said it's dumping about 50,000 coastal policies starting next year.

Allstate Floridian started trimming 106,000 policies in the spring. Those customers will be offered the option of policies with Royal Palm Insurance Co.

Nationwide said it used several criteria in making its latest round of cuts, including the distance a home is from the coast, its age, value and type of construction. The company said most affected policy holders will receive offers for alternative coverage from Security First Insurance, a Fort Lauderdale company.

After the reductions, Nationwide will have 176,000 homeowner policies and 40,800 commercial policies statewide. The company now has 26,700 residential customers in Palm Beach County and 12,600 in Broward.

Nationwide's decision does not surprise Robert Hartwig, president of the Insurance Information Institute, a nonprofit industry group. He has criticized Crist for "bashing" insurers and forcing them into rollbacks and rate freezes during the special session.

"It's unfortunate but true that insurers are not able to charge a rate that allows them to earn an extended rate of return," Hartwig said. "That's what driving insurance decisions in Florida."

The "inevitable consequence" is that state-backed Citizens Property Insurance Corp., Florida's largest overall property insurer, will continue to grow as private insurers drop policies.

Bob Milligan, the state's insurance consumer advocate, has a different perspective.

"We are being whipsawed by the insurance companies," Milligan said. "We're on the defense, and somehow we have to get on the offense."

Real Estate Designers offers totally innovative solutions for your software development, Internet programming, real estate web design and hosting needs. Our service includes domain name registration and real estate web design. Real Estate Designers provides the complete solution including design, application development and marketing.

source: sun-sentinel.com

These homes come with a little Disney magic

Walt Disney Co. and KB Home have signed an exclusive marketing agreement to feature Disney-branded home furnishing products in developments throughout the nation, including Orlando, it will be announced today.

Central Florida, home to Walt Disney World, will feature eight model homes with Disney fashions -- more than any other community in Florida.

Disney is best known for its toys and movies, but it also has a line of flooring, window coverings, lighting and more. The various options will be incorporated into select model homes and available for review in KB Home's 15,000-square-foot studio in south Orlando in early 2008.

The Disney furnishings will not be available as options for new houses until next year as well. In the past several years, Disney executives have made a concerted effort to promote the company's branded products, and the collaboration with KB Home will further position Disney "as a leading lifestyle brand," said Pamela Lifford, an executive vice president in Disney's consumer products division.

Lifford said the agreement with KB Home, one of the nation's leading builders, offers an opportunity for the company "to present our extensive collection" to an audience of home shoppers.

The collaboration comes less than a year after KB Home announced a marketing partnership with style maven Martha Stewart, for a line of Martha Stewart homes and Martha Stewart communities.

The company recently opened its first Martha Stewart development in Florida in Ormond Beach. But one planned for west Orange County that was announced last year has been delayed by weak market conditions.

To kick off its campaign with Disney, KB Home is launching an eight-week Magical Dream Sweepstakes. Starting this week, visitors to any KB Home community can enter a drawing to win one of 10 children's bedrooms decorated with Disney-themed furniture and products.

The bedrooms, aimed at children and preteens, will be at eight of the company's 22 communities in Central Florida:

Avalon Park, off Alafaya Trail in east Orange County.

Mallard Pond, off U.S. Highway 192 in St. Cloud.

Hammock Trails, off Ham Brown Road in Kissimmee.

Preserve at Eagle Lake, off State Road 417 in Sanford.

Arbor Ridge, off U.S. 441 in Apopka.

Southern Fields, off U.S. 27 in Clermont.

Landings at Sugar Mill, off Interstate 95 in New Smyrna Beach.

Bayberry Lakes, off LPGA Boulevard in Daytona Beach.

The decor and furnishings will be from popular characters and movies including Cinderella, Disney's Pixar animated movie Cars and Pirates of the Caribbean.

"We're going to have some fun with the characters," said George Glance, division president of KB Home in Orlando. The line of fashions available early next year, he said, will include lighting, flooring, ceiling fans and other products.

Children are the core of Disney's fan base, and almost 60 percent of KB Home buyers are families with children, said Wendy Marlett, senior vice president of sales and marketing for KB Home at its Los Angeles headquarters.

That should "not only drive traffic to our communities," she said, as children clamor for their parents to take them to see the furnishings, but it allows the company "to offer something that no other home builder can -- a little Disney magic built right into their new KB Home."

*

Topix Username

Will display with your forum posts
*

Email Address

Will never be shown to other users
*

Password

At least five characters (letters and numbers)
*


Confirm Password
*

Birthdate

Required by COPPA
*

Login Sign in with your existing Topix account and write your comments below. Don't have an account?

Email Address

Password

Forgot your password?

Comments
Type the numbers you see in the image on the right:

Please note by clicking on "Post Comment" you acknowledge that you have read the Terms of Service and the comment you are posting is in compliance with such terms. Be polite. Inappropriate posts may be removed by the moderator.
Click here to find out more!

* Classifieds
o Place an ad
o Find a job
o Find a car
o Find real estate
o Find rental properties
o Shopping
o Dating
o Pets
local radar
* Weather
* Traffic
* News
o Broward County
o Palm Beach County
o Regional/Florida
o Cuba/Americas
o Nation/World
o Help Team
o Legislature
o Education
o Health & Science
o Blogs
o Columnists
o Corrections
o Multimedia Gallery
o Video
* Opinion
* Sports
* Business
o Personal Finance
o Real Estate
o Help Team
o Insurance
o Career and Workplace
o Small Business
o Sports Business
o Local Stock Index
o WSJ Sunday
o Columnists
* Entertainment
* Features
* Travel
* Obituaries
* Get Local Palm Beach
* Newspaper Services
o Get home delivery
o Subscriber services
o Work at Sun-Sentinel
o Advertise with us
o Buy photos
o Buy back issue
o Contact us
o Sell Our Paper
* Resources
o Holiday HQ
o Recent Articles
o Florida Lottery
o Find a restaurant
o Movie times
o Horoscopes
o Calendar of events
o Webcam
o Site Map
* Metromix

Click here to find out more!
Click here to find out more!
Real Estate Message Board
Join our Real Estate message board, where you can talk about the latest real estate trends in South Florida.

ADVERTISEMENT
Search Classifieds
SHOP JOBS CARS HOMES
Popular stories: Business

* For banks, credit relief
* How to ensure your holiday donations are well-spent
* Evolution of holiday shopping is hard to predict
* Fuel, credit crunch to hit '08 airline profit
* SEC accuses Orlando firm of pyramid scheme preying on Hispanics

More most viewed

* Evolution of holiday shopping is hard to predict
* Fort Lauderdale-based luxury cruise line sold
* SEC accuses Orlando firm of pyramid scheme preying on Hispanics
* Freddie, Fannie CEOs warn of tough 2008
* Property tax portability rewards longtime residents

More most e-mailed

* Most viewed
* Most e-mailed

ADVERTISEMENT

* amNY |
* Baltimore Sun |
* Chicago Tribune |
* Daily Press |
* Hartford Courant |
* LA Times |
* Newsday |
* Orlando Sentin

Real Estate Designers offers totally innovative solutions for your software development, Internet programming, real estate web design and hosting needs. Our service includes domain name registration and real estate web design. Real Estate Designers provides the complete solution including design, application development and marketing.

source: sun-sentinel.com