Real Estate Daily News Buzz – October 14, 2013
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The Dow Jones industrial average rose 111.04 points, or 0.7%, to close at 15,237.11 Friday. The Standard & Poor’s 500 index rose 10.64 points, or 0.6%, to 1,703.20. The NASDAQ composite rose 31.13 points, 0.8%, at 3,791.87 at close on Friday. Benchmark crude for November delivery fell 99 cents to close at $102.02 a barrel on the New York Mercantile Exchange.
HERBER APARTMENTS DOWNTOWN TUCSON OPENED THIS WEEKEND
TUCSON – The 8-story, 144-unit building at 202 E 12th Street in Tucson opened its doors this weekend to new and prospective tenants. Peach Properties and Holualoa Companies purchased the former low-income seniors complex at Armory Park after the City relocated residents in July 2012 to a new complex build by investors along Congress, west of I-10. Peach Properties and Holualoa purchased and renovated the project for $9 million. The building features 450 to 600 square-foot studios and one bedroom apartments. Rents range from $600 to $1,000 per month.
AG’S OFFICE REPORT ON RIO NUEVO: MISMANAGEMENT BUT NO CRIMINAL ACTIVITY
TUCSON – After investigating allegations of criminal activity associated with Tucson’s Rio Nuevo Multipurpose Facilities District for about eighteen months, the Arizona Attorney General’s Office has released a memo outlining its decision to decline prosecuting anyone. The state’s investigation, which was led by Assistant Attorney General Mike Jette, was joined by the FBI in the summer of 2011 and included help from two FBI agents and two FBI analysts. The investigative team examined tens of thousands of documents and interviewed dozens of witnesses. Mayor Jonathan Rothschild said the city can now put past Rio Nuevo misdeeds behind it and focus on the future. “The two agencies did thorough investigations and reached the right result,” Rothschild said. “It has long been time we looked forward about downtown. We have been doing that the past 20 months and we are seeing the rapid results.”
RISING LEGAL COSTS PUSH JPMORGAN TO RARE LOSS
NEW YORK – The largest U.S. bank by assets set aside $9.2 billion in the quarter to cover a string of litigation stemming from the housing crisis and the bank’s “London Whale” trading debacle. JPMorgan said it has placed a total of $23 billion in reserve to cover potential legal costs, including the $9.2 billion. Mounting legal costs pushed JPMorgan Chase to a rare loss in the third quarter, the first under the leadership of Jamie Dimon. In a conference call, CEO Dimon called the costs “painful,” but said they reflected “the reality we have to deal with.”
CITIES FISCAL CONDITIONS IMPROVE, BUT WORRIES PERSIST
TUCSON – Fiscal conditions are slowly improving for American cities, aided by increases in sales tax and income tax revenue, but rapidly rising pension and health costs for city workers continue to pose a potentially crippling threat, according to an annual study released Thursday by the National League of Cities. Local officials also expressed concern that the gridlock in Washington over the debt ceiling and other budget issues could send their cities back into a tailspin. In particular, there would be “catastrophic implications” to a failure to raise the debt ceiling, said Clarence E. Anthony, the league’s executive director.
GOP SHUTDOWN/DEBT PLAN, BUT NO AGREEMENT YET
WASHINGTON – Accelerated efforts in Congress came on Friday and throughout the weekend to keep the U.S. Treasury from defaulting as early as next week and to end the partial government shutdown. At the White House and Capitol, President Barack Obama and top aides consulted with both House and Senate Republicans on Fridat. There was no shortage of suggestions. Yet there was also was no evidence of agreement to end crises that have caused financial markets to shudder and interest rates to rise, while closing some federal offices and sending 350,000 workers home on furlough, without pay. Senate and House Republicans each offered to reopen the government and raise the $16.7 trillion debt limit – but only as part of broader approaches that envision deficit savings, something the Democrats don’t want.
‘ABENOMICS’ PRAISED BY SONY CORP. CEO
TOKYO – The chief of Sony Corp., one of the best known Japanese companies, praised the country’s prime minister Friday for his efforts to jump-start the economy and put the nation back on the global stage. Sony leader Kazuo Hirai said Prime Minister Shinzo Abe, who took office late last year, is restoring global confidence in Japan, while stressing that delivering on promises with action was critical. Abe is banking on policies dubbed “Abenomics” that center on structural reforms, easy monetary policy, relaxed labor regulations and free trade to return to growth.
DEL MONTE SELLS FOODS BUSINESS FOR $1.68 BILLION TO FOCUS ON PETS
SAN FRANCISCO – Del Monte Foods is selling off its fruit and vegetable business to focus instead on tasty vittles for pets. The San Francisco-based company said Friday that it is selling its consumer products business, which includes canned Del Monte pineapple and Contadina tomatoes, to Del Monte Pacific Ltd. in Asia for $1.68 billion. It will then begin catering solely to the tastes of furrier consumers through its pets business, which includes brands such as Pupperoni, Meow Mix and Milk-Bones.
STREETCAR STARTED HIGH-SPEED TESTING THIS WEEKEND
TUCSON – On Sunday from 8 p.m. to 5 a.m., the City of Tucson’s Sun Link streetcar team began conducting controlled high speed testing on the streetcar along University Boulevard, between Fourth Avenue and Euclid Avenue. The tests involved speeds of up to 45 mph, and were conducted on street sections closed to regular traffic.
CALIFORNIA CITY BANS RETAIL PET SALES
CARLSBAD, CA – The nationwide battle over so-called “puppy mills” made its way to Carlsbad, CA Tuesday night, where the City Council voted 3-1 to ban pet stores from selling dogs or cats after intense lobbying by a variety of animal rights groups. Carlsbad’s move comes three months after the city of San Diego banned retail pet sales and two weeks after the Oceanside City Council voted 3-2 against such a ban. A group representing breeders said Tuesday night that bans unfairly target reputable businesses. But more and more cities across the country—especially in California—have begun tackling the issue in response to pressure from groups such as the American Society for the Prevention of Cruelty to Animals and increased media attention on puppy mills. Concerns about animal welfare in Southern Arizona have prompted some recent municipal actions, such as last year’s City of Tucson ban on steroids for racing greyhounds, and Tucson and other jurisdictions’ recent consideration of new ways to fund spay/neuter programs.
EL TOUR SHORT NEARLY $100,000 IN SPONSORSHIPS
TUCSON – El Tour de Tucson officials say they don’t have a title sponsor for this year’s race and are approximately $97,000 short on corporate sponsorships. They say the race will still go on this year on Saturday, Nov. 23, but they do need a title sponsor for next year. Officials say if there is no title sponsor for next year, the organization might have to look into raising participation fees. The University of Arizona Medical Center was the title sponsor for the previous six years. Interested potential sponsors should contact Richard DeBernardis, founder and president of the Perimeter Bicycling Association of America, at (520) 745-2033
