Real Estate Daily News Buzz is designed to give news snippets to readers that our (yet to be award winning) editors thought you could use to start your day. They come from various business perspectives, real estate, government, the Fed, local news, and the stock markets to save you time. Here you will find the headlines and what the news buzz for the day will be.
The Dow Jones industrial average rose 5.33 points, less than 0.1%, to close at 16,025.53. The NASDAQ composite increased 6.23 points, or 0.2%, to 4,068.75. The S&P 500 index climbed 3.28 points, or 0.2%, to 1,808.37. Benchmark U.S. crude for January delivery slipped 31 cents to $97.34 a barrel on the New York Mercantile Exchange.
RISING RICHES: 1 IN 5 IN US REACHES AFFLUENCE
WASHINGTON (AP) — Fully 20% of U.S. adults become rich for parts of their lives, wielding extensive influence over America’s economy and politics, according to new survey data. These “new rich,” made up largely of older professionals, working married couples and more educated singles, are becoming politically influential, and economists say their capacity to spend is key to the U.S. economic recovery. But their rise is also a sign of the nation’s continuing economic polarization. They extend well beyond the wealthiest 1 per cent, a traditional group of super-rich millionaires and billionaires with long-held family assets. The new rich have household income of $250,000 or more at some point during their working lives, putting them — if sometimes temporarily — in the top 2% of earners.
TECH GIANTS CALL FOR CONTROLS ON GOV’T SNOOPING
LONDON (AP) — Major technology companies, stung by poor publicity for having helped the U.S. government access personal data, on Monday issued an open letter to President Barack Obama asking for tighter controls on surveillance.
As part of a global campaign to reform data collection, Google, Facebook, Apple and others said that concerns over national security should be weighed against individual rights. The letter follows this summer’s revelations by former National Security Agency contractor Edward Snowden, who leaked details of the secret programs that critics argue violate privacy rights. Intelligence officials argue that the NSA’s tactics have helped to disrupt terror attacks and that they’ve taken care not to routinely look at the content of conversations or messages by American citizens.
"COMMON GROUND" AWARDS FOR PROJECTS IN TUCSON
TUCSON - The City of Tucson won a number of "Common Ground" Awards at the Metropolitan Pima Alliance's (MPA) ceremony this past Friday demonstrating the City's commitment to strategic and successful partnerships with the local business community. MPA honored the City with its Public Policy Award for the Main Gate Overlay District (MGD). The MGD promotes transit-oriented development on the western edge of the University of Arizona Main Campus to encourage the use of public transportation, including the Sunlink Tucson Modern Streetcar. The MGD "preserves historic structures while allowing new growth and development," and was developed as a result of, "30+ neighborhood meetings, eight noticed public meetings and several informal meetings with representatives from the neighborhood." In addition, the City of Tucson and its partners won the MPA's Revitalization Award for the Trinity Place Townhomes Project, which includes, "88 energy efficient and state of the art townhome units... designed to meet the needs of low income families." And the City was recognized with its private sector partners for the Planning Design and Construction Award due to its participation in the Plaza Centro and The Cadence Project. This project provides new housing, 19,000 square feet of commercial space, and parking at the eastern gateway to Downtown Tucson.
TWO BUSINESSES CLOSER TO RECEIVING CITY BUSINESS INCENTIVES
TUCSON - Two local Tucson companies, Modular Mining Systems and Mr. Car Wash, are in line to receive waivers for building permit fees and construction sales tax credits, as a result of meeting specific employment-related criteria. While the Tucson Mayor and Council were briefed last week on the progress of both plans, the companies are at different stages in the City’s business incentive program. Over the first 12 months of the program, the City's Office of Economic Initiatives identified $12.8 million in incentives for seven projects. In return, the City and other taxing districts are expected to pick up a combined $24 million in estimated revenue from the seven projects over eight years. The projects also represent about $100 million in capital investment within the city and 540 permanent jobs. Tucson offers 21 different incentives to qualifying businesses.
RTA AWARDS CONTRACT FOR SPECIAL-NEEDS TRANSIT SYSTEM
TUCSON - The RTA board voted Thursday to give Total Transit, the parent company of Discount Cab, a $17 million contract to handle the day-to-day operations of its special-needs transit system for the next three years, beginning May 1. The Phoenix-area company already contracts for similar services in several cities in the Phoenix metro area. The change from Handicar to Total Transit is expected to begin next spring for Sun Shuttle and Dial-A-Ride services. The decision ends a long relationship with Tucson-based MV Transportation/Handicar, which has approximately 200 employees. The RTA Board recommended the change, saying it was concerned that proposed staffing and compensation changes by the current contract holder to trim its bid price would negatively impact service.
PEORIA CITY COUNCIL MAY BAN TEXTING AT MEETINGS
TUCSON - Peoria is considering an ordinance to ban City Council members from texting or emailing each other during public meetings. The goal is to avoid potential violations of the state’s Open Meetings Law. Peoria leaders say there hasn’t been a problem, but they want to take steps to ensure public business is handled transparently. “The Arizona Open Meetings Act envisions that you’re going to have an open discussion and an open public meeting,” City Attorney Steve Kemp advised the Peoria City Council recently. “It does not envision that you would email yourselves or text message yourselves on the dais about decisions.” Cities from New Jersey to California have broached bans on texting from the dais. The Encinitas, Calif., City Council last year implemented such a prohibition.
NEW AMERICAN AIRLINES EMERGES AS DEAL CLOSES
FORT WORTH, Texas (AP) — American Airlines emerged from bankruptcy protection and US Airways culminated its long pursuit of a merger partner as the two completed their deal Monday to create the world’s biggest airline. It’s the latest in a series of mergers that will leave four airlines controlling more than 80 per cent of the U.S. air-travel market. With less competition, the airlines have successfully limited the number of seats, boosting prices and returning to profitability.
SURVEY: FED ECONOMIC STIMULUS WILL END IN 2014
NEW YORK (AP) — The vast majority of business economists believe the Federal Reserve will begin to pull back on its massive economic stimulus program in the first three months of 2014, according to a November survey done by the National Association of Business Economists. The survey also showed a majority of economists believe the United States’ economic recovery will accelerate next year. NABE surveyed 51 economists between Nov. 8 and Nov. 19 and found that 62 per cent of respondents believe the Fed will pull back on its bond-buying program in the first quarter of 2014. Another 30 per cent believe the Fed will begin to reduce its bond buying in the second quarter of 2014. Combined, nine out of 10 economists believe the Fed’s stimulus program will wind down next year, after being placed in its current form since December 2012.
SYSCO TO BUY US FOODS FOR ABUT $3.5B
HOUSTON (AP) — One of the largest food supply companies is buying one of its key rivals, creating an even larger, global distribution company. Sysco is buying privately held US Foods for about $3.5 billion in cash and stock. When the deal closes, Sysco expects the addition of US Foods to boost its annual sales by about 46 per cent to around $65 billion. Sysco shares rose almost 10% Monday and hit their highest point in decades. Houston’s Sysco will pay $3 billion in common stock and $500 million in cash. It will also assume or refinance about $4.7 billion in debt. That puts the total value of the deal at about $8.2 billion.