Series for Miami’s emerging art collectors begins Thursday

For art enthusiasts interested in bring their interest home, Miami’s Bakehouse Art Complex is hosting a lecture series for emerging collectors. The first panel, slated for Thursday at 6 p.m., features arists and curators who will talk about fine tuning your taste and learning to make informed decisions. The second session, Feb. 7, is oriented to the mechanics of purchasing. The third, on Feb. 21, explores how to manage your collection.

Moderating all three panels will be Denise Gerson, independent curator who served as associate director for the Lowe Museum of Art for 24 years. Cost is $25 per session or $60 for the series. Seating is limited; reservations are recommended.

Information at 305-576-2828; www.bacfl.org.

Jane Wooldridge

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Three-generation family businesses share their secrets of success

In 2009, when Larry Zinn took over as sales manager for the Infiniti dealership that his father owned, he had a great idea: retrain the sales staff in a team approach and offer customers complimentary add-on services for the first year.

Some salesmen who were used to selling the same way for decades up and quit. But that didn’t deter Larry from insisting a new sales culture and value proposition for new car buyers was necessary. “I was persistent with everything I’ve believed we needed to do going forward. People were going to embrace change or move on,” says Larry, 28.

The resistance quieted, however, after Larry recruited young salespeople and had them trained in the new advantage program. The new approach helped push sales volume up 72 percent. "We had a lot of success with it,” he says.

Larry Zinn’s experience is not unusual for family-owned businesses that survive into a third generation and employ new tactics to keep from becoming obsolete.

Nationally, family-run businesses account for nearly 35 percent of the largest companies including Ford, Koch Industries, Hilton, Wal-Mart, Loews and Ikea. In South Florida, family-run businesses are particularly prevalent and account for a majority of the largest Hispanic companies, including Goya, Bacardi, El Dorado and Sedano’s Supermarkets.

But while more than 30 percent of all U.S. family-owned businesses survive into the second generation, only about 12 percent are passed onto the third generation, according to Family Firm Institute, a Boston-based association for family enterprise professionals. Those that do survive have a few intriguing commonalities: an ability to stay relevant, think bigger and take a long term view.

“They try to figure out where they want to be in 10 years and take steps to make that target,” says Wayne Rivers, president of The Family Business Institute in Raleigh, N.C.

Most third-generation family businesses, particularly those in South Florida, were started by a scrappy entrepreneur who saw business ownership as a way to provide for the family. Those businesses include grocery chains such as Sedano’s, restaurant operators such as Las Vegas Cuban Cuisine and airport concessionaires such as NewsLink.

Typically, in those businesses, the founder brought his kids with him to work, put them in the kitchen, the stock room, the sales floor, and taught them on-the-spot business lessons. Those kids eventually came to work full time and helped the company evolve beyond a seat-of-the-pants start-up into a more sophisticated business with processes and systems.

Now comes the third generation, who are more likely to have received formal business education before they return to the company. Often, they are able to leverage that training and move the company forward dramatically. But the succession also comes with challenges. They must keep the respect of longtime employees and show the same dogged commitment to seeing their company succeed, even after having already grown up enjoying the fruits of its success.

In successful third-generation businesses, the senior generation often stays on to ensure that commitment, adopting a role as mentor or advisor while creating an environment where younger family members can take on real responsibility, says Rivers, who consults for family businesses. “They get out of the way, let the next generation make their own mistakes, and gracefully exit when it’s appropriate.”

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Investors await word from Apple

No company today elicits such devotion and dedication among its customers and shareholders like Apple. The fervor felt by Apple fans for its products, its leaders and its business underscore the company’s technological eco-centric strategy. While that loyalty has made for rich rewards over the long term, it will mean very little to a myopic stock market when Apple reports its latest financial results Wednesday.

When a company so dominates a business like Apple does, it is subject to plenty of rumors, especially when that company, like Apple, is disciplined to not respond to speculation. There have been a series of anonymous and Wall Street analyst worries floated in the past quarter centered on the iPhone 5. First were concerns Apple couldn’t get enough supplies to build the phones fast enough. Then there were hints Apple cut its supply orders, suggesting slower sales.

Apple optimists have been quick to defend the company even as its stock has fallen from $700 to around $500 per share since September. The stock drop has come even as Apple probably sold a record number of iPhones and iPads during the holiday quarter.

No doubt Apple will trumpet its financial prowess on Wednesday. And it should. After all it generates more than $500 million dollars a day. But the short-sighted stock market has been conditioned to expect big numbers. Therein is the challenge for Apple: incubating such devotion without inflating expectations.

Tom Hudson is anchor and managing editor of Nightly Business Report, produced by NBR Worldwide and distributed nationally by American Public Television. In South Florida, the show is broadcast at 7 p.m. weekdays on Channel 2. Follow him on Twitter, @HudsonNBR.

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Norwegian Cruise Line launches strong IPO

Miami-based Norwegian Cruise Line joined its larger local competitors on Wall Street Friday in a strong debut.

Norwegian Cruise Line Holdings Ltd. raised nearly $447 million in an initial public offering of about 23.5 million shares and saw stocks sail 30 percent in trading.

Shares closed Friday afternoon at $24.79, up $5.79 from the $19 offering price set late Thursday night. That was above the range of $16-$18 that the company had expected.

“I think this was a classically beautiful IPO, albeit relatively small in terms of total dollars,” said Roderick McLeod, partner in the management consulting practice McLeod.Applebaum & Partners and a former cruise executive.

In regulatory filings, the company has said it plans to use proceeds from the IPO to reduce debt and pay expenses related to the offering. Norwegian is giving the underwriters a 30-day option to buy up to an additional 3.5 million shares.

Previously, the company was privately held in a partnership of Genting Hong Kong, with 50 percent of the cruise line, and private equity firms Apollo Management and TPG. Genting Hong Kong is a subsidiary of gambling and resort conglomerate Genting Group, which purchased the land currently occupied by The Miami Herald in 2011 for $236 million.

After the IPO, the three groups own a total of about 88 percent of the company’s ordinary shares.

Norwegian, with a fleet of 11 ships and three more on the way by the fall of 2015, has made its name by emphasizing a “freestyle” type of cruising that allows guests to choose from a variety of dining, entertainment and rooming options.

In an interview Friday morning, Norwegian Cruise Line President and CEO Kevin Sheehan said that the timing was right for the offering.

“It just seemed like a very logical time: We’re into 2013, we’ve got these beautiful new ships coming out soon and the marketplace is very excited about them,” he said. “The locomotive is moving and we’re at the tipping point with the brand.”

As the industry grows by just about 2.5 percent over the next five years, Sheehan said, Norwegian will grow capacity by more than 10 percent.

“It’s the double whammy,” he said. “Lower growth in the future with a phenomenal set of assets.”

He said the benefits of going public include raising capital, allowing the company to strengthen its balance sheet and putting it in the same playing field as its competitors. Carnival Corp., the world’s largest cruise ship company, and rival Royal Caribbean Cruises are both publicly traded. Carnival closed up about a percent at $38.58 Friday, while Royal Caribbean dropped just over a percent to $36.90.

“Now we’re out there and people can look at our results and the analysts can talk about us freely,” he said.

The launch capped years of attempts by Norwegian to go public, all abandoned for economic reasons.

Miami cruise expert Stewart Chiron, CEO of CruiseGuy.com, said the timing was good, with an industry performing well and a vastly improved company.

“I’m glad they finally got it done,” he said. “This was by far one of the important milestones that they wanted to cross.”

McLeod remembers an effort when he was president and chief operating officer at Norwegian that coincided with the stock market crash in October of 1987. He has also worked in senior positions at Royal Caribbean Cruises and Carnival Corp.

“I think we’ve all kind of known this was coming eventually and some of us have known it’s coming for 25 years,” McLeod said. “It’s never too late to do the right thing; this is the right thing for them to do.”

The move is smart, McLeod said, for several reasons.

“In addition to improving their leverage, reducing their debt, this expands their strategic options,” he said. “This is a currency, and that can work for them in lots of different ways.”

This report was supplemented with information from the Associated Press.

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Prices for Miami Beach luxury condos soar to records

Ultra-luxury condominiums on South Beach are fetching nosebleed prices.

On Tuesday, a penthouse at the Setai Resort at 2001 Collins Avenue closed for $27 million — the highest price ever for a South Florida condominium, according to real estate agents.

“We’re definitely seeing the market turning upward,” said Jeff Miller, of Zilbert International Realty in Miami, who represented the buyer in the sale of the palatial 7,100-square-foot condominium. “We’re seeing buyers come in from all over the globe.”

Just a few weeks ago, Ohio coal mining businessman Wayne Boich Jr. completed the sale of his Icon South Beach penthouse at 450 Alton Road in the uber-trendy South of Fifth neighborhood for just under $21 million.

The 6-bedroom, 7 1/2-bath Icon condo sparked a bidding war that drove the sale $2 million above the listing price — a level that is three times the $7 million Boich paid in July 2007 in the depths of the bust. It was a record price for a Miami Beach bayside condo.

“The luxury market is on fire in South Beach — especially the South of Fifth neighborhood,” said Dora Puig, principal of PuigWerner Real Estate Services, who was the listing broker for the Icon unit. “It’s moving Miami to totally different pricing points.”

The Setai’s record may not reign for long.

Penthouse 2 in the decade-old Continuum South tower at 100 South Pointe Drive in the South of Fifth neighborhood is on the market for $39 million.

That is a record listing price for a Miami-Dade condominium, according to Puig, who also snagged that listing.

Amid the market sizzle, Puig bumped up the asking price late last summer from $35 million.

The penthouse, which has 11,000 square feet of interior space, belongs to Manhattan real estate developer Ian Bruce Eichner, who built the Continuum project at the tip of South Beach and kept the trophy for himself.

The Continuum penthouse, which has 6,000 square feet of deck and a rooftop heated pool, boasts sweeping 13 1/2-foot ceilings that give the feel of a single-family home. The floor-to-ceiling glass walls offer a 360-degree view of the Atlantic Ocean, Biscayne Bay, downtown Miami and Miami Beach from 40 stories up.

“It looks down on Fisher Island, way down,” Puig said with a smile.

The unit has a private interior elevator, of course, and stretches over two indoor levels and two largely exterior levels.

One big plus: It has a gated entrance and sits on an expansive enclave of rolling lawns and gardens adjacent to a city park at the tip of the island.

The unit comes with an additional 874-square-foot guest quarters that would delight most mortals. “The guest unit is intended for professional quarters: the maid, the nanny, the chef, the pilot,” Puig explained.

Also included is a snazzy cabana on the beach.

Eichner has used it as a vacation home and once rented it to Tom Cruise for a couple of months while he was in Miami to film Rock of Ages.

On Thursday, Puig hosted Miami’s power brokers for a look at the Continuum penthouse over champagne and hors d’oeuvres. Next week, she plans to spend three days in New York touting the property to high-end brokers.

Such palatial properties typically are paid for in cash. But what would a monthly payment be?

With a 20 percent down payment of $7.8 million, the buyer would have to finance $31.2 million.

“I don’t know that I’d be able to find anybody willing to go that high on one unit,” warned Steve Schneider, a mortgage broker who is owner and president of Abacus Lending Group in South Miami.

If a buyer could line up a 15-year fixed rate mortgage at 3.5 percent, the monthly payment for principal and interest would be $223,043.35.

“I’d hate to see the tax bill,” said Schneider.

According to Miami-Dade County Property Appraiser records, the 2012 property tax bill on the Continuum penthouse was $264,896.17. That was based on an assessed value of just $9.5 million, less than half what the Property Appraiser listed as the market value of $19.3 million. The tax break came as a result of the state law that caps increases in assessed values on non-homesteaded property at 10 percent a year.

The condo maintenance fee for Eichner’s unit runs $7,624 a month. “I think that’s low for what you get,” said Puig.

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Miami Dolphins bill would bring state money to aging stadiums

A bill drafted by the Miami Dolphins would give Florida sports teams $3 million a year in state money to improve older stadiums, provided the owner pays for at least half the cost of a major renovation.

Under the law, the stadium would need to be 20 years old and the team willing to put in at least $125 million for a $250 million renovation. That’s less than the $400 million redo of Sun Life Stadium that Dolphins owner Stephen Ross proposed this week, which he hopes will win state approval thanks to his offer to fund at least $200 million of the effort to modernize the 1987 facility.

Miami-Dade and Florida would fund the rest through a mix of county hotel taxes and state general funds set aside for stadiums. Sun Life currently receives $2 million a year through the program, and the Dolphins want to create a new category that would give them an additional $3 million.

While the Miami Marlins and Miami Heat both play in stadiums subsidized by county hotel taxes, the Dolphins receive no local dollars. The bill would change that by allowing Miami-Dade to increase the tax charged at mainland hotels to 7 percent from 6 percent, and eliminate the current rule that limits the money to publicly owned stadiums. Sun Life Stadium, in Miami Gardens, is privately owned but sits on county land.

The bill pits enthusiasm for one of Florida’s most popular sports teams against a lean budget climate and lingering backlash against the 2009 deal that had Miami and Miami-Dade borrow about $485 million to build a new ballpark for the Marlins. Ross also must navigate a Republican-led Legislature that has twice rebuffed his requests for public dollars.

“I would be surprised if that bill even got a hearing in committee,” said Mike Fasano, a Republican representative from the Tampa area and a critic of tax-funded sports deals. “I’m a big Dolphin fan, and have been for years. But with all due respect, we’ve got people who are struggling throughout this state right now . .. The last thing we should be doing is giving a professional sports team or facility additional tax dollars.”

While the bill would open up the $3 million subsidy to other the teams, the Dolphins see it as unlikely that another owner would be willing to put up as much money for renovations as Ross, a billionaire real estate developer.

If the bill were enacted today, any stadium opened before 1993 would be eligible for the money, provided it could show the proposed renovation would generate an additional $3 million in sales taxes.

Ross and his backers are pitching the renovation as a boon to tourism, with Sun Life a magnet for the Super Bowl, national college football games and other major events. The National Football League is considering South Florida and San Francisco for the 2016 Super Bowl, and the Dolphins say approval of renovation funding is crucial to winning the bid.

Sen. Oscar Braynon, D-Miami Gardens, who sponsored the Senate bill, said the funding makes sense because when Sun Life hosts a Super Bowl, the entire state benefits from both tourism dollars and publicity.

“It’s a small price to pay for economic development, and for all the shine we get from major sporting events,” said Braynon, whose district includes Sun Life. Rep. Eduardo “Eddy” Gonzalez, R-Hialeah, is the sponsor on the House side.

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Coral Gables culinary students learn the art of sushi making

Christian Rivas is still years away from becoming a professional sushi chef, but his hand-crafted California roll looks good enough to serve professionally.

“The hard part was getting the roll to be in good shape,” Christian, a 16-year-old junior at Coral Gables Senior High, said of his first attempt.

The Gables student was one of about 30 who stood in rapt attention inside the school’s kitchen classroom. He is a member of the school’s culinary arts program.

On Tuesday morning, chefs and executives from Sushi Maki, including CEO Abe Ng, volunteered to teach these students about the restaurant business. The main part of the presentation was Kingston-bred director of sushi education Steve Ho Sang’s instruction on how to make sushi rolls and hand rolls.

Sushi Maki goes through three tons of fresh salmon every week, Ng said. The succulent Norwegian fish in front of the class, expertly filleted via Ho Sang’s knives, looked like half a week’s supply.

The executives were there as part of the Education Fund’s Teach-a-Thon program which brings business professionals into Miami-Dade County Public School classrooms. These pros volunteer to teach a class at the elementary, middle or high school level to help raise money for school activities such as Coral Gables’ culinary program and to promote the value of public school teachers.

“What a lot of people don’t realize is that teaching is really brain surgery,” said Linda Lecht, president of The Education Fund. “We want to call attention to the fact that teaching is a hard job and we, as a community, have to rally around our teachers if we are going to improve education. We want to get out the message of how important teaching is to our whole economy.”

Mercy Vera, Coral Gables’ culinary teacher, sought a partnership with The Education Fund — a North Miami-based non-profit that helps fund programs at Miami-Dade public schools from Homestead to Miami Gardens — to help prepare her students for careers in the profession.

The Education Fund’s latest fundraising campaign currently has $23,202 to split among 26 participating schools.

But having pros come into the classroom is also invaluable, Vera said, because it is impractical, if not near impossible, to cram 30 or more teenagers into a professional restaurant kitchen. And, of course, they would not be allowed to use the knives and other utensils. Here, in the school’s carefully stocked kitchen classroom, the guests give the kids a taste of reality.

“This brings a totally different dynamic to the classroom. This is an experience they normally wouldn’t have and this is the only way to show the children industry,” Vera said.

“I love the energy of public schools,” said Ng, 39. “I’m excited to do a restaurant 101, and to ignite a spark in them would be a big thing to me.”

The experience met with much enthusiasm from senior Jorge Castro, 19, who says he hopes to follow in the footsteps of Food Network star chef Bobby Flay, one of his inspirations in the culinary world.

“This is one of those jobs where you meet a lot of people and you make people smile when you make them good food and that counts — to see them smile,” Castro said.

Ng, a Palmetto High and Cornell grad, is part of a family that opened the Canton chain of Chinese food restaurants locally in 1975. His mom and dad still work at the South Miami and Coral Gables locations and the family also operates the spin-off Sushi Maki chain, which opened in 2000.

Ng enjoyed stepping out of the boardroom and into the classroom for his two-hour teaching experience.

“These students seem to have a good foundation,” he said as the students hustled to clean the kitchen. “The future generation of culinary, I’m optimistic about it.”

Follow @HowardCohen on Twitter.

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.CO sets sights on changing ‘the fabric of the Internet’

For the millions of people who equate the Web with .com, . CO Internet is out to change that mindset.

The Miami company that manages and markets the .co domain is already making impressive gains — more than 1.4 million in 200 countries have hung their businesses, blogs, personal projects or dreams on a .co virtual shingle. Still, that’s just a tiny fraction of industry titan VeriSign’s 105 million .com registrants.

“We want to change the fabric of the Internet,” Juan Diego Calle, founder and CEO of .CO Internet, said during an interview in .CO’s Brickell office. “We can only make that happen not by changing what happened in the last 25 years of the Web, which is owned by .com. We want to change the next 25.”

About 2½ years after the launch of .CO Internet, .co — the country code of Colombia — continues to be one of the fastest-growing Internet domains in the world and grew by 24 percent in 2012. .CO Internet is profitable and is projecting to bring in more than $25 million in revenues this year, the company said. The early success of .CO Internet, with operations in Miami and Colombia, is powered by passion and perseverance.

Calle moved to Miami from Colombia at age 15 with his family. He started several businesses, including one he sold in 2005 providing seed capital for what would come next. “I can’t say I ever sat still.” When he learned Colombia would be commercializing the country's .co domain extension in late 2006, he said it hit him like a lightning bolt.

With the right strategy and by “marketing the hell out of it,” the entrepreneur believed .co could solve a huge problem in the market — vanishing Internet domain names. If you’ve tried to nab a new .com address lately, you can relate — it’s difficult to find one that hasn’t been snatched up.

Calle thought that by appealing to the hearts and minds of the entrepreneur, .co could go where .info, .biz, .net or .me had never gone before. But first he needed the right team.

One of this first stops: The Big Apple, to visit Nicolai Bezsonoff, who had been an advisor and shareholder in Calle’s TeRespondo.com, a sort of Ask Jeeves for the Latin American market that was sold to Yahoo in 2005. At the time, Bezsonoff was the director of technology and operations at Citigroup.

“We went out for coffee, he started pitching me on a napkin. I said ‘really dude you want me to leave a big job at Citigroup for this?’ ” said Bezsonoff. “But he kept showing me the numbers … Later, that napkin was on my desk and it was one of those boring days and I kept looking at it and thought maybe I should.” He would become .CO’s chief operating officer.

Lori Anne Wardi, a lawyer and serial entrepreneur who was working at a venture capital firm at the time, became vice president in charge of brand strategy, business development and global communications. “She’s the heart and soul of the company,” said Calle. Eduardo Santoyo, based in Bogota, would become corporate vice president over policy and be the liaison with the Colombian government. “Some would say it was overkill talent but I needed the best. ... When you have a big dream, you have to think big and hire the right people,” Calle said.

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After rough year, Carnival hopes for calmer waters

After boarding the latest addition to the Carnival Cruise Lines family, Josh Beaver sampled lasagna at the new onboard Italian restaurant, downed some drinks with his traveling companions and hit the water slides while the afternoon was still young.

“So far, from what I’ve seen, there’s lots to do,” said Beaver, 33, of Holden Beach, N.C.

The Carnival Breeze hadn’t even left PortMiami yet on a recent Saturday, and already it buzzed with vacationers exploring all there was to do: nosh on a Pig Patty from the new Guy’s Burger Bar, make friends with bartenders at the new RedFrog Pub or check out a novel and a glass of the grape at the new Library Bar.

Here aboard one of the largest ships in the biggest brand of the Number One cruise ship company in the world, there was little hint that the last year was one of the toughest in the 41-year history of parent company Carnival Corp. & plc.

Last year got off to a catastrophic start when Costa Concordia, owned by Carnival unit Costa Cruises, struck rocks in Italian waters as the captain steered the ship on an unauthorized route. The massive liner listed to one side, and 32 people died in the chaos that followed.

“When you lose lives, it’s heartbreaking,” said Carnival Corp. Vice Chairman and COO Howard Frank, who devoted much of his time last winter handling the aftermath with Costa leaders. “And so I think in terms of our emotional reaction to it, it’s been the toughest year we’ve had.”

Carnival Corp. Chairman and CEO Micky Arison took criticism for not going to Italy following the wreck, but said he believes the company did the right thing and doesn’t second-guess his actions.

Financially, the company took a hit as well, starting with discounts that were necessary to drum up business after the accident. Costa’s future bookings plunged, but picked up after the operator slashed prices. As of mid-December, prices at Costa remained lower than they were a year earlier, though the company expects that to change once the anniversary of the accident passes.

“I think we’ve been consistent in saying the recovery at Costa is not a one-year issue,” Arison said during the December earnings call with analysts. “It’s going to be multiple years, and we are forecasting a recovery of about half the yield deterioration.”

The ship remains on its side off the island of Giglio; it’s expected to be removed by the end of summer.

A flurry of civil lawsuits have been filed, but none have reached trial yet; the company has reached compensation agreements with 70 percent of the more than 3,000 passengers who were not physically injured and 60 percent of injured passengers and families of those who died.

As the company and broader industry focused anew on safety, the summer months presented a fresh set of problems when the European economy weakened just as cruise lines were stationing more ships in the Mediterranean. While North America was immune to those concerns, the run-up to the Presidential election and the fiscal cliff debates prompted Carnival to worry about a slowdown in business at home.

Last month, Carnival forecast 2013 earnings that were lower than expectations and said advance bookings for the year were behind what they were a year earlier at lower prices. Many analysts believe the projections were conservative, though, and executives said they were hopeful that January would bring more robust business.

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Miami Beach builder Robert Turchin looks back — and ahead

If former Miami Beach vice mayor Robert Turchin had been a Miami decision maker during the recent vote that decided the fate of The Miami Herald building, he would probably have voted with the ‘nays’ allowing its demolition.

“There’s nothing special about it,” says the 90-year-old Turchin as he cruises Collins Avenue between 63rd and 48th streets, a strip dense with buildings from the same period as the Herald’s — specimens of post-war Miami Modern (MiMo) architecture that he constructed.

It is no exaggeration to say that Turchin built much of post-war Miami Beach, collaborating with Melvin Grossman, Morris Lapidus and other MiMo period architects. From 1945 to 1985, his firm was the busiest in the building trade. Royal York, Montmartre, Moulin Rouge, King Cole, Charter Club, Four Ambassadors — the list goes on, numbering upward of 100 buildings.

“I grew up when Miami Beach was a small town. It was 1945, and the hotels would close during the summer for renovations because they had no air conditioning. I couldn’t wait for summers, when I would return from school and work on the construction sites,” Turchin says.

In an era when hotel signs sometimes read “No Jews or dogs,” Turchin’s father was a successful builder who hoped his son would be a diplomat. It was not to be. After serving in World War II, for which he recently received a French Legion of Honor medal, he started his first project. Like subsequent ones, it broke the mold.

“The GI Bill made housing affordable for veterans, but it was single-family housing. I wanted to build a four-family unit under the bill,” Turchin says. It was an unprecedented proposal that went from city to state to federal agencies before it was approved. The multi-unit buildings launched the concept of condominiums.

As did other builders, he began to experiment with air conditioning. “Once we were able to air condition them, the hotels stayed open year-round. The beach boomed then,” he says.

Buildings came down to make way for new ones. Turchin’s Morton Towers went up where Carl Fisher’s circa 1920 Flamingo Hotel stood on 15 acres. “The land had become more valuable than the building,” he explains.

Turchin became known as “the builder’s builder” for riding to the top floor of construction sites on the hook of a crane, and walking the beams to inspect the work. His view of the built landscape was daring, pragmatic, and often at odds with those of preservationists like Nancy Liebman, a Miami Beach city commissioner from 1993 to 2001 who served with Turchin on the city’s first historic preservation board.

“A lot of the beautiful mansions on the bay and beach were lost to that kind of development,” laments Liebman. “It was the typical mentality of throw it away and build something new.”

But Turchin was building for the next generation. To him, the Art Deco buildings of his father’s generation — Edgewater Beach, the Sands and the Sea Isle where he honeymooned with his wife — were old school.

“They made no sense. They were all building with a few trees in front. They weren’t called Deco back then. Curlicues on concrete is how we thought of them,” he says.

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What the week’s big mortgage moves mean for consumers

This week brought three big developments to the nation’s beleaguered mortgage landscape. For consumers, the complex moves have been mostly mystifying, but experts say they all aim at turning the page.

“There is a strong desire to put behind us all this period of time — the aftermath of the darkest period in American finance. All these things [announced this week] are intended to do that,” said John Taylor, president and CEO of the National Community Reinvestment Coalition, a Washington, D.C.-based consumer advocacy group. “There are good and bad things in it for consumers.’’

A new rule issued Thursday by the Consumer Financial Protection Bureau aims to prevent lenders from making the sort of toxic mortgages that forced many unsuspecting borrowers into ruin. Yet the new “qualified mortgage” rule, according to some lenders, also could perpetuate the nation’s tight credit problem and keep many would-be homebuyers on the sidelines.

Meanwhile, two settlements unveiled Monday with big banks should resolve some lingering issues from the mortgage meltdown that have kept banks focused on past errors instead of getting back to the business of lending.

Here is a quick primer on the week’s developments and some likely implications for consumers.

OCC Settlement

The Office of the Comptroller of the Currency, which regulates nationally chartered banks, Monday unveiled an $8.5 billion settlement with 10 giant banks that service mortgages.

As part of the controversial settlement, the OCC is scrapping its Independent Foreclosure Review, which was aimed at identifying victims of robo-signing and other improper foreclosure tactics by banks, but soon proved to be a badly flawed effort.

Instead, under the OCC’s new approach — which will be spelled out in enforcement actions in a couple of weeks — more than 3.8 million borrowers who faced foreclosure between Jan. 1, 2009 and Dec. 31, 2010 stand to get some payment regardless of whether they actually suffered any harm.

The mortgage servicing banks covered are Bank of America, Wells Fargo, Citibank, JPMorgan Chase, SunTrust, PNC, Sovereign, U.S. Bank, MetLife Bank and Aurora.

The agreement provides for $3.3 billion to go directly to borrowers. Another $5.2 billion is earmarked for loan modifications and the forgiveness of deficiency judgments.

The OCC said the amount that eligible borrowers get will range from a few hundred dollars up to $125,000, depending on the type of error that possibly occurred in their mortgage servicing.

“If a borrower went through foreclosure with one of those 10 lenders, they should receive a couple hundred bucks, whether they deserve it or not,” said Guy Cecala, publisher and CEO of Inside Mortgage Finance Publications in Bethesda, Md., which tracks news and statistics in the residential mortgage industry. “The odds of getting $125,000 is the odds of winning the lottery. It would have to be a false foreclosure or where they were thrown out of their house illegally.”

The OCC will look to 13 broad categories of errors outlined in the Independent Foreclosure Review launched in April 2011.

Those include a litany of bumblings and misdeeds by the mortgage servicers, ranging from foreclosing on a homeowner who was following the rules during a trial period of a loan modification, to failing to offer a loan modification as mandated under a government program, to failing to follow up with a borrower to obtain needed documents under a government program.

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Florida company provides electrical power for the world

More than 4,000 miles from its home base in Doral, Energy International is helping keep the lights on and the power grid humming in Gibraltar, the British territory on the southern tip of the Iberian Peninsula.

Energy International, a global provider of power plants and energy solutions, sent a temporary plant that will provide power for at least the next two years while a more permanent fix is sought for the territory’s erratic and aging electrical system.

The Doral company was founded 14 years ago as MCA Power Systems and its initial goal was to pursue energy contracts in Latin America. It began in 2000 with a name change and in recent years its focus has become global.

“The world needs energy,’’ said Brett Hall, EI’s vice president of finance.

While the 2007-2008 recession curtailed the growth of worldwide energy demand, the U.S. Energy Information Agency has projected that global demand for electricity will increase by 2.3 percent annually from 2008 to 2035.

The potential is especially strong in developing nations. The International Energy Agency estimated that in 2009, 21 percent of the world’s population — 1.4 billion people — didn’t have access to electricity. In sub-Saharan Africa, the percentage of people without power rises to 69 percent.

Energy International has expanded sales from Latin America and the Caribbean to Europe, Africa and the Middle East, boosting revenue from $100 million annually in 2009 to more than $300 million today, Hall said. This year, EI is anticipating revenue of $350 million to $375 million.

In the next seven years the company, which is privately owned by American shareholders and affiliated with Gecolsa — the Caterpillar dealership in Colombia — hopes revenue will top $1 billion, he said.

Even though Energy International is based in the United States, it does little work domestically. Its sweet spot is emerging economies and projects that require an investment on its part of $100 million or less.

“Our focus is to do whatever makes the most economic sense for a particular market,’’ said Hall.

“We’re not going to be building a nuclear power plant,’’ he said. But EI will accommodate its solutions to local fuel supplies whether it’s biofuel, natural gas or heavy fuels that are more prevalent.

When it comes to the type of temporary power solution needed by Gibraltar, which had been plagued by a string of power outages at its archaic electrical facilities, EI can have a temporary plant up and running in 30 to 40 days, supplying the engineering, rental turbines and other equipment and doing the installation.

“We were able to support Gibraltar’s power needs on short notice,’’ said Andres Molano, EI’s vice president of sales. “Some of their equipment required major maintenance and they needed to stop their plants.’’

EI, one of the world’s largest suppliers of interim energy solutions, signed a $12 million contract with the government of Gibraltar in November and the plant was operational by Dec. 21. The agreement includes an option for a three-year extension.

The equipment now in use in Gibraltar is considered part of EI’s fleet and will move on to other energy emergencies when its service in the territory famed for the Rock of Gibraltar is complete.

But when it comes to its permanent power plants, EI will build a facility for a client looking to generate its own power or construct a plant, run it and sell power directly to the final user.

“We can do all the work ourselves. We have all the skills in house — finance, design, operations, maintenance, building and the equipment,’’ said Hall.

Energy International moved into the Middle East last year, completing projects in Oman and Yemen and establishing a subsidiary in Dubai to pursue business in Africa and the Middle East, said Molano.

“Africa is new to us, but we believe there are opportunities there,’’ he said.

The company also is looking for continued growth in Latin America, especially in Colombia, which is now attracting foreign investors who previously had been spooked by violence.

Remote areas of the Amazon where temporary power solutions are needed also represent opportunity for the company.

“EI is very fortunate to be in a position in which we have more excellent opportunities than capital.’’ said Hall, so this year it will be concentrating on raising equity to finance growth.

“One of our biggest challenges in 2013,’’ Hall said, “will be to find investors or joint venture partners to provide capital that will enable EI to perform these projects so our aggressive revenue growth targets can be achieved.’’

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Magic Jack ends suit against Net Talk

A suit between Magic Jack and a Miami-based rival has ended.

Net Talk, with headquarters in suburban Miami-Dade, announced Tuesday that Magic Jack had dropped its patent-infringement suit against Net Talk over the company’s Internet phone service. Magic Jack is one of the best-known providers of VOIP (voice over Internet protocol), and sued Net Talk in April over the competitor’s product.

In December, both sides agreed to drop the legal action, and the federal case was dismissed.

DOUGLAS HANKS

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Florida company provides electrical power for the world

More than 4,000 miles from its home base in Doral, Energy International is helping keep the lights on and the power grid humming in Gibraltar, the British territory on the southern tip of the Iberian Peninsula.

Energy International, a global provider of power plants and energy solutions, sent a temporary plant that will provide power for at least the next two years while a more permanent fix is sought for the territory’s erratic and aging electrical system.

The Doral company was founded 14 years ago as MCA Power Systems and its initial goal was to pursue energy contracts in Latin America. It began 2000 with a name change and in recent years its focus has become global.

“The world needs energy,’’ said Brett Hall, EI’s vice president of finance.

While the 2007-2008 recession curtailed the growth of worldwide energy demand, the U.S. Energy Information Agency has projected that global demand for electricity will increase by 2.3 percent annually from 2008 to 2035.

The potential is especially strong in developing nations. The International Energy Agency estimated that in 2009, 21 percent of the world’s population — 1.4 billion people — didn’t have access to electricity. In sub-Saharan Africa, the percentage of people without power rises to 69 percent.

Energy International has expanded sales from Latin America and the Caribbean to Europe, Africa and the Middle East, boosting revenue from $100 million annually in 2009 to more than $300 million today, Hall said. This year, EI is anticipating revenue of $350 million to $375 million.

In the next seven years the company, which is privately owned by American shareholders and affiliated with Gecolsa — the Caterpillar dealership in Colombia — hopes revenue will top $1 billion, he said.

Even though Energy International is based in the United States, it does little work domestically. Its sweet spot is emerging economies and contracts of $100 million or less.

“Our focus is to do whatever makes the most economic sense for a particular market,’’ said Hall.

“We’re not going to be building a nuclear power plant,’’ he said. But EI will accommodate its solutions to local fuel supplies whether it’s biofuel, natural gas or heavy fuels that are more prevalent.

When it comes to the type of temporary power solution needed by Gibraltar, which had been plagued by a string of power outages at its archaic electrical facilities, EI can have a temporary plant up and running in 30 to 40 days, supplying the engineering, rental turbines and other equipment and doing the installation.

“We were able to support Gibraltar’s power needs on short notice,’’ said Andres Molano, EI’s vice president of sales. “Some of their equipment required major maintenance and they needed to stop their plants.’’

EI, one of the world’s largest suppliers of interim energy solutions, signed a $12 million contract with the government of Gibraltar in November and the plant was operational by Dec. 21. The agreement includes an option for a three-year extension.

The equipment now in use in Gibraltar is considered part of EI’s fleet and will move on to other energy emergencies when its service in the territory famed for the Rock of Gibraltar is complete.

But when it comes to its permanent power plants, EI will build a facility for a client looking to generate its own power or construct a plant, run it and sell power directly to the final user.

“We can do all the work ourselves. We have all the skills in house — finance, design, operations, maintenance, building and the equipment,’’ said Hall.

Energy International has moved into the Middle East, completing projects in Oman and Yemen and establishing a subsidiary in Dubai in 2012 to pursue business in Africa and the Middle East, said Molano.

“Africa is new to us, but we believe there are opportunities there,’’ he said.

The company also is looking for continued growth in Latin America, especially in Colombia, which is now attracting foreign investors who previously had been spooked by violence.

Remote areas of the Amazon where temporary power solutions are needed also represent opportunity for the company.

“EI is very fortunate to be in a position in which we have more excellent opportunities than capital.’’ said Hall, so this year it will be concentrating on raising equity to finance growth.

“One of our biggest challenges in 2013,’’ Hall said, “will be to find investors or joint venture partners to provide capital that will enable EI to perform these projects so our aggressive revenue growth targets can be achieved.’’

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Billionaire Phillip Frost an ‘entrepreneur’s entrepreneur’

For that blind first date, a half-century ago, the young doctor, Phillip Frost, showed up at Patricia Orr’s family house in suburban New York, with an unusual gift: a miniature mushroom garden.

In the 50 years since, Frost, the son of a shoe store owner, has gone on to amass a fortune of $2.4 billion, according to Forbes magazine, becoming the 188th wealthiest man in the United States by developing and selling pharmaceutical companies. Along the way, he and Patricia have become major philanthropists in Miami-Dade County and they’ve signed a pledge to give away at least $1 billion more.

“He’s a relentless guy,” says Miami banker Bill Allen, who’s know him for more than 40 years. “He’s not afraid to take risks. ... He knows the intimate details of the chemistry of products, and he’s the kind of guy who can examine 50 deals while eating a sandwich.”

CNBC’s Jim Cramer recently praised Frost’s “incredible track record” for developing companies, calling Frost’s latest endeavor, OPKO Health, a “very risky” investment while noting it could offer huge gains under Obamacare.

But back in 1962, Patricia’s first impression was that Phil Frost was a bit of a nerd, finishing his medical internship with a strong interest in research — including mushrooms. She figured an academic career loomed.

“My mother was very impressed,” recalls Patricia, not so much by the M.D. behind Frost’s name but by the gift, something more serious than the usual flowers or candy. Serious was fine with Patricia, who was living at home while working toward a master’s degree in education at Columbia University. For their first date, they listened to a classical music concert.

Frost’s rise to riches may seem highly distinctive, but in an odd coincidence he has much in common with another prominent Miamian. Frost, 76, and car dealer Norman Braman, 80, both frequently appear on the Forbes list of wealthiest Americans. Both grew up in Philadelphia — Frost the son of a man who sold shoes, Braman son of a barber. Both are Jewish, well-known art collectors and philanthropists.

“He’s an entrepreneur’s entrepreneur,” says Braman. “We have a lot in common, coming from very poor families. But he went to Central High (a public school for exceptional students) and I was not qualified to go there.”

There are other differences. While Braman is voluble and highly visible in the causes he supports, Frost tends to be a reticent, almost shy speaker, given to careful pauses.

‘Lucky chances’

Told that a former colleague had called Frost “lucky,” Frost thought for a long moment. He could have cited many national business stories about his business acumen. Instead, he responded crisply: “I’ll be satisfied with lucky. I benefited from chance meetings.”

Frost spent his first years living above the shoe shop within an Italian market in South Philly. His two brothers were 15 and 16 years older. “I was an afterthought.”

The family was religiously observant, and Frost recalls his father singing him songs in Yiddish when he was small. He lived at home while attending the University of Pennsylvania, except for a year abroad in France. He took many science courses, but his major was French literature.

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Needle reaches the inner groove for Spec’s

In the end, even the almighty Adele and Taylor Swift could not hold back the inevitable.

Spec’s, one of the last great record stores, will close its flagship location in Coral Gables on U.S.1, thus joining once-favored chains like Virgin, Tower and Peaches, locally and abroad, that have withered from Internet shopping.

With the closing, sometime in January after the merchandise is liquidated, 64 years of history becomes memory for countless people who discovered a love of music in the home Martin “Mike” Spector built in 1948 when U.S.1 was but a two-lane road.

The original store, which sold cameras alongside 78-rpm records, was a few blocks south on the highway in South Miami and is now an Einstein’s bagel spot. The present location, opened in 1953 in Coral Gables, lived through the bobby sox era, Beatlemania, disco, punk, hip hop/rap, grunge, electronic dance music and all the format changes including 12-inch vinyl, 45-rpm, reel to reel, 8-track, cassette, compact disc and mp3.

After the first music industry recession in the late 1970s, Spec’s still managed to double in size by breaking through the walls of two restaurants in 1980 on its north side. The original room on the south side of the building would house, first, Spec’s’ VHS movie rentals and sales — Saturday Night at Spec’s! — and, later, one of the most expansive collections of classical music in town.

“It’s the soundtrack of our lives,” said store manager Lennie Rohrbacher, who spent 23 years of his life working at Spec’s, from Clearwater to Coral Gables

Music sales

At its peak, the Spec’s chain grew to some 80 stores in Florida and Puerto Rico. In 1993, annual sales exceeded $70 million. Spec’s went public in 1985 and, in 1998, the Spectors sold to Camelot Music Group, which was acquired by Trans World Entertainment Corp.

Trans World, which did not return several telephone messages, shrewdly kept the Spec’s name attached to the flagship store as goodwill even though, technically, it operated under the company’s retail subsidiary, F.Y.E. (For Your Entertainment).

But those are the cold, hard business facts.

Spec’s was “not like another Eckerd’s,” a drug store chain that also slipped into oblivion amid changing times, said Rohrbacher. “This was part of the community, part of my life. It’s not another store going under.”

Indeed, Spec’s was, first and foremost, a community gathering spot to share a love of music. In the ‘70s and ‘80s Spec’s resembled a makeshift camp site where people would sleep overnight in the parking lot to get the best shot at concert tickets in a pre-Internet world. Spec’s, a hop-skip from the University of Miami’s music school, served as its own music education outlet thanks to a knowledgeable sales staff.

Music education

“The proximity to the UM is prime real estate. Not to have it there will really be different. Even if they didn’t have what I was looking for, the staff was knowledgeable and you were sort of tapping into this knowledge base of people who could turn you on to new music. That’s what I’ll miss about it and the community around the store,” said Margot Winick, an employee at the Coral Gables Spec’s in the mid-1980s when she was a freshman at the UM.

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College championship won’t be easy money again

South Florida hotels should count their blessings from this weekend’s football bookings. The championship crowds won’t come this easily again.

With Notre Dame playing for its first national title in more than 20 years, demand is unusually high for both hotel rooms and tickets for Monday’s championship game against Alabama. The teams have two of the largest fan bases in the country, making this BCS game the biggest sports draw since the 2010 Super Bowl was held in Miami Gardens.

But if this game means an enviable match-up for the tourism industry, it also marks the end of South Florida’s automatic dibs on the championship every four years.

Next year will be the last time that college’s football championship rotates among the four cities that host major bowl games. In its place, college conferences will open up hosting duties to any community willing to bid on the championship game — a process bound to pit South Florida against larger subsidies and better stadiums offered by hungry rivals

“There are a lot of communities in the country that would love to host this event, like the Final Four and like the Super Bowl, ” said Michael Saks, COO of the Orange Bowl Committee, which organizes the BCS game when it comes to Miami Gardens.

This weekend’s BCS turnout should offer a tempting target for cities eager to wrest the game from its rotation among Pasadena, Calif. ( home to the Rose Bowl); Scottsdale, Arizona (Fiesta Bowl); New Orleans (Sugar Bowl); and Miami Gardens.

Turnout for Notre Dame alumni is so strong that organizers have set up a special hospitality tent off South Beach’s Ocean Drive. Notre Dame boosters have about 85 busses ready to bring in fans from as far away as Boca Raton for a 7 p.m. pep rally. “They’re thinking it could be 50,000 people,’’ said Graham Winick, of Miami Beach’s special-events division. “We’ve had multiple phone conversations.”

Alabama has its own pep rally at 4 p.m., but Winick wasn’t worried about that event. With Alabama playing for its third championship in four years, organizers are expecting a strong turn-out from the Crimson Tide but not a swarm.

Tickets for Monday’s game start at about $1,000, but sitting on the Notre Dame side of Sun Life Stadium costs about $500 more, said Michael Lipman, owner of the Tickets of America brokerage in Miami.

“The least expensive seats are being bought up by Alabama,’’ he said. “The lower bowl is going to have more Notre Dame fans, and the upper bowl is going to have more Alabama fans.”

Stubhub.com, the top ticket reselling site, said the BCS game is its best-selling event ever in terms of total sales volume. The average BCS ticket was going for $1,800 on the site midweek, up from the $1,200 price tag for the last two BCS games in 2012 and 2011, spokeswoman Shannon Barbara said.

At the Loews hotel in Miami Beach, all but a few of the 790 rooms are booked this weekend. The hotel’s eight poolside cabanas were also booked up at about $600 a day, giving guests access to the two-story apartments with showers, televisions and the option to order some fan-themed indulgences.

Fighting Irish supporters can drink a Pickled Irishman (Jameson’s Irish whisky and pickle juice) and eat Irish Nachos (waffle fries topped with Guinness-braised short ribs.) Fans of the Crimson Tide can order an Alabama Slammer (Southern Comfort, peach schnapps and sour mix) and Roll Tide ribs (soaked in “moonshine sauce.”)

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The return of the cranes: Miami-Dade construction projects on the horizon in 2013

The cranes are coming back to Miami.

The battered construction industry is going higher in the new year after showing strong signs of life in 2012. Will Miami feel more like Manhattan in a few years? It just might.

So far, there has been more talk than action, fewer shovels in the ground than grand announcements. Even so, construction is underway on a dozen new condominiums in Miami-Dade County — something that seemed beyond the realm of possibility not so long ago.

Commercial building is picking up, too, particularly in Miami’s hot new urban core.

The construction sector, which posted 62 consecutive months of job losses in Miami-Dade as of November 2012, is expected to finally begin adding jobs in 2013.

By far the centerpiece project to date is Brickell CityCentre, a $1.05 billion shopping and mixed-use project that broke ground in June 2012 and will span three blocks just west of Brickell Avenue to the south of the Miami River.

The 5-million-square-foot mega-project by developer Swire Properties will include a department store, luxury shops, restaurants, a hotel, office towers and condominiums. It is expected to be connected with bridges and covered walkways and to cement downtown Miami’s emerging image as a trendy place to work, live and play.

In Brickell alone, three new condominium projects already are under construction: Jorge Perez’s Related Group is building Millecento, a 42-story tower with 382 units, and MyBrickell, a smaller project with 28 stories and 192 units shoehorned onto a 0.4-acre site. Newgard Development Group is building BrickellHouse, a 46-story, 374-unit project.

More building, much more, is coming.

“We’re going to see a lot of cranes popping up in the first and second quarter, and a year from now, we’re going to see cranes all over the skyline,” said Tom Murphy Jr., chairman and CEO of Coastal Construction, a large Miami builder that is involved in various projects, from hotels to condominiums. “I believe we as a community — South Florida, especially Miami — will build more in the next 10 years than we did in the last 15.”

Among a long roster of projects, Coastal was tapped by developer DACRA for a major renovation project in the Design District, which in 2012 marked the arrival of luxury fashion retailers such as Cartier, Hermes, Louis Vuitton, Celine, Christian Dior and Prada, adding a new dimension to an area already known for home furnishings and restaurants.

DACRA president and CEO Craig Robins has a broader plan to bring in 40 to 50 luxury brands to the Design District by 2014. The area will have a pedestrian promenade, rooftop gardens and public plazas, in keeping with Miami’s emerging urban scene.

The focus on commercial development in Miami’s urban core, is all about providing more services to cater to the new residents who want everything within walking distance.

Spanish developer Espacio USA will break ground in 2013 on the first phase of a $412 million mixed-use project at 1400 Biscayne Boulevard. Starting with one 103,000-square foot office tower, the project will eventually include retail shops and residential units.

“It’s becoming much more of a New York lifestyle, and we’ll continue to see that,” said Ron Shuffield, president of Esslinger-Wooten-Maxwell Realtors in Coral Gables.

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Portion of Macy’s Flagler Street property in downtown Miami sold

A New York firm bought part of the Macy’s building in downtown Miami and is expected to acquire the rest. The next priority is negotiating a new lease to keep Macy’s as a tenant.

In a deal that could have implications for the future of downtown Miami’s anchor retail tenant, a New York real estate investment firm paid $15.55 million to acquire more than half the property that now houses Macy’s Flagler Street store.

The acquisition by Aetna Realty Group includes the 48,000 square feet of land that was leased to R.W. Burdine in 1917. Until the recent sale, the property was owned by 23 heirs of Richard and Harriet Ashby, who signed the initial 99-year lease with Burdine. The lease expires in 2016.

The Ashby family began taking steps to prepare the property at the intersection of Miami Avenue and Flagler Street for sale nearly four years ago, said Lewis R. Cohen, a GrayRobinson lawyer who represented the Ashby family in the transaction that closed on New Year’s Eve.

Over the years, Macy’s and its predecessor, Burdines, grew the site’s downtown presence well beyond the Ashby land, and the current building now extends another 30,000 square feet of land. Aetna has also made a commitment to purchase the remaining portion of the building, that is currently owned by Macy’s, Cohen said. But that deal hasn’t closed yet.

“That deal is a sure thing,” Cohen said. “They could not have closed with us without having an agreement with Macy’s completely nailed down.”

When Macy’s decided not to purchase the Ashby land itself, the owners soughta third-party that could control both pieces. The reason: Improvements made to the store over the years straddled both properties, such as elevators and escalators starting on one parcel and ending on another.

“Between the engineering difficulties of severing the properties and the legal issues involved, it would have been somewhere between extremely expensive and impossible” for different entities to share control, Cohen said.

Aetna was one of three bidders interested in the site, Cohen said. One of the other players was the Barlington Group, a Miami developer that in 2011 signed a deal with Macy’s to sub-lease 20,000 square feet of empty ground-floor space for a mix of restaurants and cafes.

Macy’s spokesman Jim Sluzewski said this transaction doesn’t impact Macy’s current lease. He declined to comment on any other pending transaction regarding the property the retailer owns in downtown Miami.

“It’s business as usual,” said Sluzewski, who also would not discuss Macy’s long-term plans for downtown Miami beyond the expiration of its lease. The company’s roots in downtown Miami date to 1898, when the first Burdines opened in a nearby downtown location.

Aetna and its local attorneys did not respond to calls Wednesday for comments.

But Cohen said Macy’s is in the process of finalizing a short-term deal with the new owners.

“They intend to stay for at least the foreseeable future,” Cohen said. “For a minimum of five years they’ll be there and possibly longer.”

Downtown scene

Macy’s long-term future on Flagler Street has been in doubt since 2007, when Macy’s Florida then-Chairwoman Julie Greiner took city leaders to task for the deplorable conditions in downtown and threatened that the retailer might leave.

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Housing, jobs key to lifting S&P toward record

NEW YORK --
With it appearing that Washington lawmakers are working their way past the “fiscal cliff,” many analysts say that the outlook for stocks in 2013 is good, as a recovering housing market and an improving jobs outlook helps the economy maintain a slow, but steady recovery.

Reasonable returns in 2013 would send the S&P 500 toward, and possibly past, its record close of 1,565 reached in October 2007.

A mid-year rally in 2012 pushed stocks to their highest in more than four years. Both the Standard & Poor’s 500 and the Dow Jones industrial average posted strong gains in 2012. Those advances came despite uncertainty about the outcome of the presidential election and bouts of turmoil from Europe, where policy makers finally appear to be getting a grip on the region’s debt crisis.

“As you remove little bits of uncertainty, investors can then once again return to focusing on the fundamentals,” says Joseph Tanious, a global market strategist at J.P. Morgan Funds. “Corporate America is actually doing quite well.”

Although earnings growth of S&P 500 listed companies dipped as low as 0.8 percent in the summer, analysts are predicting that it will rebound to average 9.5 percent for 2013, according to data from S&P Capital IQ. Companies have also been hoarding cash. The amount of cash and cash-equivalents being held by companies listed in the S&P 500 climbed to an all-time high $1 trillion at the end of September, 65 percent more than five years ago, according to S&P Dow Jones Indices.

Assuming a budget deal is reached in a reasonable amount of time, investors will be more comfortable owning stocks in 2013, allowing valuations to rise, says Tanious.

Stocks in the S&P 500 index are currently trading on a price-to-earnings multiple of about 13.5, compared with the average of 17.9 since 1988, according to S&P Capital IQ data. The ratio rises when investors are willing to pay more for a stock’s future earnings potential.

The stock market will also likely face less drag from the European debt crisis this year, said Steven Bulko, the chief investment officer at Lombard Odier Investment Managers. While policy makers in Europe have yet to come up with a comprehensive solution to the region’s woes, they appear to have a better handle on the region’s problems than they have for quite some time.

Stocks fell in the second quarter of 2012 as investors fretted that the euro region’s government debt crisis was about to engulf Spain and possibly Italy, increasing the chances of a dramatic slowdown in global economic growth.

“There is still some heavy lifting that needs to be done in Europe,” said Bulko. Now, though, “we are dealing with much more manageable risk than we have had in the past few years.”

Next year may also see an increase in mergers and acquisitions as companies seeks to make use of the cash on their balance sheets, says Jarred Kessler, global head of equities at broker Cantor Fitzgerald.

While the number of M&A deals has gradually crept higher in the past four years, the dollar value of the deals remains well short of the total reached five years ago. U.S. targeted acquisitions totaled $964 billion through Dec. 27, according to data tracking firm Dealogic. That’s slightly down from last year’s total of $1 trillion and about 40 percent lower than in 2007, when deals worth $1.6 trillion were struck.

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