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DAYTONA BEACH PIER

June 24th, 2009 10:55 AM

Daytona leaders consider buyout of pier lease

JUNE 24, 2009

By EILEEN ZAFFIRO
Staff Writer

DAYTONA BEACH -- For the first time in its 84-year history, the Daytona Beach Pier could be owned and operated by the city.

On Tuesday a citizen committee that's been discussing the pier for the past year asked City Manager Jim Chisholm to start talking to the leaseholder that operates the pier about a possible buyout.

After talking to the partners of Diland Corp., which took over the operational lease of the pier in 2004, Chisholm plans to report back to the committee with either a negotiable figure or a rejection of the idea.

Members of Diland Corp. could not be reached for comment Tuesday.

"I think the city should have full control of it," said committee member Theresa Doan, whose late husband bought the pier in 1966. "I think you really need to buy them out and have a clean slate."

Doan argued that the pier's value has increased since a new beachfront park was built nearby and the new ramp entrance to the pier was improved. She said the value would shoot up more if another parking garage is built in the area and the city builds a second adjacent pier.

With property values still low, now is the time to talk, she said. Another motivation is the city would be able to pursue grants, she said.

Chisholm said he recently learned of millions of dollars in federal grants the city could apply for if it had control of the pier. The grants could be used for improvements, and the city's community redevelopment funds could be used for the lease purchase.

No one discussed a precise number they want Chisholm to start with in negotiations, but most numbers tossed around at Tuesday's meeting ranged from below $1 million to closer to $2 million.

One committee member, Paul Zimmerman, seemed hesitant to pursue a buyout.

"This just feels like a bailout to me and I'm uncomfortable using taxpayer dollars for a bailout," Zimmerman said at the beginning of the meeting.

Zimmerman said it might be in the city's best interest to evict Diland if the company doesn't make improvements by a determined date. But that could prove costly, take a long time and be problematic, other committee members said.

A city buyout would be a way out of the current lease that some say is defective. That lease started in 2004, when Diland took over pier operations. That same year Doan deeded the pier structure itself to the city.

Some community members and city officials have been unhappy with Diland's operation and improvements to the pier and started calling for change about a year ago.

The question over the past several months had been whether to stick with the current lease, or put out requests for proposals from other businesses seeking to run the pier. Diland also could have bid and remained the tenant under a new lease with the city.

Daytona Beach officials would like to see the pier better maintained, and have discussed pouring $2 million into repairs and upgrades such as hurricane windows and doors for the historic casino building.

"In the end we've got to get this cleaned up so we can get back to business," Chisholm said.

eileen.zaffiro@news-jrnl.com

Posted by Sondra McDonald on June 24th, 2009 10:55 AMPost a Comment (0)

Volusia County Taxes from Daytona New Journal

June 2nd, 2009 12:19 AM

June 1, 2009

Property values plunge, could mean huge tax increases for some homeowners

By JAMES MILLER
Staff Writer

Taxable property values in Volusia County will tumble by double digits this year for the first time in memory, according to early projections released on today by the Property Appraiser Morgan Gilreath.

The taxable values, which reflect the 2008 market, are projected to drop 18 percent, according to Gilreath.

The steep decline sets the stage for difficult budget negotiations for cities, counties and other local taxing authorities.

Some local officials say cutting spending by the same percentage as the decline in values would be disastrous for the services local governments provide.

But to offset the property devaluation and keep spending at 2008-09 levels, taxing authorities would have to adopt double-digit percentage tax rate increases. While they could do that without meeting the legal definition of a tax increase, the rate hikes nonetheless would result in higher taxes for some property owners.

Gilreath said the property owners most vulnerable to tax increases would be those who have accumulated the greatest benefits under the state’s Save Our Homes cap on annual assessment increases to homestead properties, which are those claimed as primary residences by their owners.

That’s because the taxable values for some of those properties essentially will hold steady rather than drop.

The numbers released today are a prelude to the preliminary tax roll numbers that will be released July 1. They’re intended to help local governments as they prepare for the coming year’s budgets.

The cities facing the biggest projected drops are Deltona and Ponce Inlet, at 23.6 percent and 23.8 percent respectively.

Posted by Sondra McDonald on June 2nd, 2009 12:19 AMPost a Comment (0)

Existing-Home Sales Jump

June 1st, 2009 11:55 PM

From the National Association of Realtors

NAR: Existing-Home Sales Jump
Existing-home sales rose in April with strong buyer activity in lower price ranges, according to the NATIONAL ASSOCIATION OF REALTORS®.

Existing-home sales — including single-family, townhomes, condominiums and co-ops — increased 2.9 percent to a seasonally adjusted annual rateof 4.68 million units in April from a downwardly revised pace of 4.55 million units in March. Yet, home sales were 3.5 percent below the 4.85 million-unit level in April 2008, according to NAR.

Lawrence Yun, NAR chief economist, says first-time buyers continue to influence the market but there also is a seasonal rise of repeat buyers.

“Most of the sales are taking place in lower price ranges and activity is beginning to pickup in the midprice ranges, but high-end home sales remain sluggish,” he says. “The Federal Reserve needs to help restore liquidity for the jumbo mortgage market by buying these loans under the TALF program.”

Buyers Once Again Emerge

An NAR practitioner survey in April showed first-time buyers declined to 40 percent of transactions, implying more repeat buyers are entering the traditional spring home-buying season. It also showed the number of buyers looking at homes has increased 14 percentage points from a year ago.

“This is consistent with our forecast for home sales in the latter part of the year to be 10 to 20 percent higher than the second half of 2008,” Yun says.

It's critical that distressed homes be quickly cleared from the market, Yun says.

“Fortunately, home buyers are being attracted to deeply discounted prices and are bidding up many foreclosed listings, particularly in California, Nevada, and Florida — this will set the stage for healthy market conditions going forward,” Yun says.

NAR President Charles McMillan says conditions are optimal for buyers with good jobs and long-term plans.

“We have record low mortgage interest rates, a wide selection of homes and affordable prices in most areas,” he says. “When you add the $8,000 first-time buyer tax credit, it’s hard to imagine a better time to make an investment in your future through homeownership.”

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage fell to a record low 4.81 percent in April from 5.00 percent in March; the rate was 5.92 percent in April 2008; data collection began in 1971.

A Closer Look at the Numbers

National median existing-home price: for all housing types, was $170,200 in April, which is 15.4 percent below 2008. Distressed properties, which accounted for 45 percent of all sales in April, continue to downwardly distort the median price because they generally sell at a discount relative to traditional homes.

Total housing inventory: at the end of April, rose 8.8 percent to 3.97 million existing homes available for sale, which represents a 10.2-month supply at the current sales pace, compared with a 9.6-month supply in March. “The gain in inventory is largely seasonal from sellers entering the spring market," Yun says. "Even with the rise, inventory over the past few months has remained consistently lower in comparison with a year earlier."

Single-family home sales: rose 2.5 percent to a seasonally adjusted annual rate of 4.18 million in April from a level of 4.08 million in March, but are 2.8 percent below the 4.30 million-unit pace in March 2008. The median existing single-family home price was $169,800 in April, which is 14.9 percent below a year ago.

Existing condominium and co-op sales: increased 6.4 percent to a seasonally adjusted annual rate of 500,000 units in April from 470,000 in March, but are 9.4 percent lower than the 552,000-unit pace a year ago. The median existing condo price was $173,900 in April, down 18.5 percent from April 2008.

By Region

NAR reported the following with existing-home sales across the country:

Northeast: jumped 11.6 percent to an annual pace of 770,000 in April, but are 10.5 percent below April 2008. Median price: $237,400, which is 9.6 percent lower than a year ago.
Midwest: slipped 2 percent in April to a level of 1.00 million and are 9.9 percent lower than a year ago. Median price: $138,800, down 11.7 percent from April 2008.
South: increased 1.8 percent to an annual pace of 1.74 million in April but are 8.9 percent lower than April 2008. Median price: $148,000, which is 12.8 percent below a year ago.
West: rose 3.5 percent to an annual rate of 1.17 million in April and are 19.4 percent higher than a year ago. Median price: $222,600, down 21.8 percent from April 2008.

Posted by Sondra McDonald on June 1st, 2009 11:55 PMPost a Comment (0)