Another Indication that the Rio Grande Valley is Weathering the Recession Better than Most of the Country
McAllen credit rating upgraded
Standard and Poor's calls it the best in Rio Grande Valley
Nick Pipitone
The Monitor
McALLEN –- The city’s credit rating was recently upgraded by the financial services company Standard and Poor’s, another indication that the city and regional economy are weathering the recession better than most of the country.
S&P cited continued employment and population growth, an increasingly diversified economy, strong financial management policies and moderate overall debt levels as the primary reasons for upgrading the city’s rating two spots, from AA- to AA+, the second-highest possible rating, behind AAA.
Horacio Aldrete-Sanchez, S&P’s primary analyst on the McAllen rating, said the city has the highest rating in the Rio Grande Valley. It also brings the city in line with the state’s bigger metro areas and other mid-level U.S. metro areas S&P considers financially stable, like Knoxville, TN and Cincinnati, OH.
The city requested S&P re-visit their credit profile in August because they no longer had any outstanding debt bonds, which is what credit agencies usually rate, city Finance Director Jerry Dale said.
“I know the agencies have all been reviewing credit in light of what they’ve called the new international standards,” Dale said. “Because of that, I wanted them to look at the city to see where we were in comparison to others.”
The city will also be looking to issue approximately $14 million in debt to fund the new main library at North 23rd Street and Nolana, so will be soon accessing the credit markets again, Aldrete-Sanchez noted in the report S&P issued last month on the city’s new rating.
The higher credit rating is a “significant step” for the city, Aldrete-Sanchez said, and will mean a couple of things.
First, the city will be able to borrow money at a lower cost when looking to fund capital improvement projects, which could translate to savings of up to $1 million in the library bond transaction, City Manager Mike Perez said.
For residents, those savings should help the city keep its tax rates and utility fees low, Dale said.
The higher rating also can be used as a recruiting tool to draw companies looking to relocate.
“When (companies) look at a community, it’s important to them that it’s well-run, stable and tends to be pro-business, or at least not anti-business,” said Keith Patridge, president of the McAllen Economic Development Corporation. “To increase the credit rating for the city, it very clearly through a third party demonstrates that McAllen hits all three.”
The credibility of financial research and analysis companies like S&P and Moody’s took a hit during the economic meltdown last fall. Both agencies had several of the sub prime loans and bonds that contributed to the financial collapse rated high, sometimes at AAA. But the agencies’ track record on local government and municipal bonds is better, and most investors still look to them, said Ansley Chua, finance professor at the University of Texas Pan-American.
“People still trust them,” Chua said. “We basically have nobody else to grade them, so we kind of have to trust somebody.”
Dale said the city has been working to improve its credit profile for several years and reverse the misperception held by many investors that the Rio Grande Valley was “a collection of dusty little towns with no economic development and everybody starving to death.”
Since 1982, the city’s rating has improved from A-plus to AA-minus in 2004, to its AA-plus rating today.
—
Monday, October 5, 2009
Sunday, October 4, 2009
McAllen to launch major marketing campaign in U.S. and Mexico | NAI Rio Grande Valley
McAllen to launch major marketing campaign in U.S. and Mexico
By Steve Taylor
Rio Grande Guardian
McALLEN, Oct. 3 - McAllen civic and business leaders are set to mount a major marketing effort nationally, locally, and in Mexico.
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Some aspects of the ad campaign were unveiled to chamber of commerce officials from the state of Tamaulipas by McAllen Chamber of Commerce President and CEO Steve Ahlenius. He did not say how much was being spent on the campaign.
“McAllen is going to be running an ad campaign along the Rio Grande Valley from Matamoros to Reynosa promoting McAllen as a destination for restaurants and shops within the next 90 days. We are also going to run some of that campaign in northern Mexico,” Ahlenius said, during a power-point presentation. “That’s going to shoehorn into a larger campaign that is going to happen nationally, both in Texas and the national market.”
Ahlenius made his remarks when his Chamber hosted a meeting of the Rio Grande Valley-Tamaulipas Chambers of Commerce group.
Ahlenius said the City of McAllen, McAllen Economic Development Corporation and the McAllen Chamber of Commerce would be jointly hosting news conferences in Saltillo, Monterrey, San Luis Potosi and Ciudad Victoria to promote the opening of the Anzalduas International Bridge.
“Obviously, those markets are critical to Mexican visitors coming here. We want them coming through the new bridge, through the Hidalgo Bridge, or any of the other bridges, that gets them to the U.S,” he said.
Part of the marketing strategy will include the promotion of McAllen as a growing destination for arts and entertainment. Ahlenius said the city has commissioned three different artists to design high quality pieces of art that will be displayed in different parts of the city. The money for this is coming for a $25,000 public art grant, he said.
In addition, McAllen will be hosting over 100 artists from across Mexico during an arts event last two and a half days next February. “It’s going to be fun. We are going to have music, it will be a family event and I think you are going to enjoy it,” Ahlenius said. Luis Cantu, a native of Houston who lived in Mexico for many years will be in charge of this project. Cantu is vice president of Community Development and Inter-American Relations for the Chamber.
There will also be a major “matchmaking” event to connect businesses in McAllen with businesses in Sinaloa, Mexico. “It is all about fostering business opportunities between our community and communities in Mexico,” Ahlenius said.
In addition to announcing the marketing campaign, Ahlenius spoke at length about a critical new role the chamber had identified for itself – providing added value to the group’s members and the wider community. “If we are not creating wealth or adding value to our members and to the business community then we have failed our mission as a business association,” he said.
Ahlenius said the days are long gone when the Chamber would put on an event and then go home saying, ‘that was a good event.’
“How do you know it is a good event? How do you measure success? Is it profitable?” Ahlenius asked. He said he tells folks that the McAllen Chamber is a non-profit in name only. “We are a business association run by business people. The expectation is that we are also profitable. When we do things we are not losing money, we are making money,” he said.
Ahlenius said his Chamber is also “highly productive” because it has to be. “We have got to produce and we have got to produce more with less,” he explained. He said he has a story he likes to tell to illustrate this point. Five years ago he visited Ireland to see a new Dell computer manufacturing complex. The plant manager explained that Dell’s goal in the next 18 months was to cut a billion dollars in expenses through gearing up the new factory “That’s phenomenal. I think our challenge as an operation is, how do we get more out of less - because everybody else is,” Ahlenius said.
Ahlenius listed some important attributes a chamber of commerce has to have, including high customer satisfaction, positive relationships, both inside and outside of an organization, and innovation. “Businesses create innovation. The challenge for chambers is to become innovative, to try new things, not to do the same things over again over again,” he said. A chamber can become irrelevant if it does the same things over and over, he said.
Ahlenius said there are five key areas the McAllen Chamber is focusing on to bring about added value to the community. The five are securing conventions, bringing tourists to the city, fostering creativity, fostering innovation, and entrepreneurial development.
With regard to the new $65 million convention center, Ahlenius said the aim is to book 20,000 hotel room nights a year for events connected with the center.
With regard to attracting tourists, the Chamber is specifically targeting two types, the Mexican national and the nature tourist, Ahlenius said. He pointed out that the Chamber has an office in Monterrey and that a “good deal of money” is spent on advertising aimed at Mexican nationals that could be spending a weekend in the city. “We feel very strongly that we have a lot of the restaurant and retail experiences that people are looking for,” Ahlenius said.
With regard to McAllen becoming home to a vibrant class of creative thinkers, Ahlenius cited Richard Florida’s book, The Rise of the Creative Class. In the book, Florida argues that artists, educators, scientists, engineers and the like are the driving force behind innovation, entrepreneurial activity and economic growth.
“The communities of 21st century that succeed will be the ones that foster arts; that foster creativity, those where people want to go to experience different things,” Ahlenius said.
The City of McAllen was catering to such people, Ahlenius said, pointing to Art Walk, an arts-related event that takes place on the first Friday evening of each month on Main Street. He also pointed to the live music on offer in Archer Park and the convention center. Another example, he said, is the creative incubator the McAllen Chamber runs, which has 16 different studios for graphic designers, photographers, filmmakers and other artists to work in. He said the Chamber has awarded $16,000 in grants to local artists over the last year.
A great example of creative people being a driving force in the economy, Ahlenius said, are the two guys that created You Tube in a garage in Palo Alto, California. About 18 months ago You Tube was sold for over a billion dollars, Ahlenius said. “Our board has made a commitment to do things that foster inventors, people who have new ideas, whether it is software, technology, etc. The idea is to get that concept from the garage to the market place,” Ahlenius said.
Focusing on innovation is also a key area, Ahlenius said. The Chamber is providing up to $10,000 in grants to someone who has a good idea that needs to get to a market place. That money can be used for patent searches, testing, prototype development, filings, etc. “The idea is to move that project along for them as far as what they are wanting to see happen,” Ahlenius explained.
Another area the McAllen Chamber is focusing on is entrepreneurship. Ahlenius said this is a critical component for any chamber. He said a small business grant would be awarded to a McAllen area business, probably within the next 60 days, worth up to $25,000. “The idea is to help to grow that small business,” he said. The Chamber also has an entrepreneurial boot camp that is run in conjunction with the University of Texas-Pan American. Ahlenius said this program helps put entrepreneurs in contact with investors who are looking at opportunities to help locally grown small businesses. Ahlenius also pointed to a business plan competition the Chamber runs with South Texas College. The student with the best business plan gets $1,000, the student with the second best business plan gets $750, and the third placed student gets $250. “We do that every semester. The idea is to get college kids thinking about starting their own business,” Ahlenius said.
Matchmaking events are also important to the McAllen Chamber. Recently, the Chamber hosted an event with the state of Veracruz. About 30 businesses from Veracruz and 15 from the Valley were matched to try to foster deals. “That’s what it comes down to. If we are not fostering those types of exchanges, if we are not providing those types of opportunities to our members to do business we have really missed the boat in terms of what we need to be doing in this community,” Ahlenius said.
One new program the McAllen Chamber will be launching, probably within the next 60 days, is helping Latinas who want to run their own business. The program is being launched in association with Wells Fargo Bank, which has chipped in $10,000. It will be called the Latina HOPE program. Hope stands for Home, Office, Part time, Entrepreneur. “It’s for women who are at the poverty level who, by having a home-based business, can make an additional $200 or $300 a month, to help supplement their income, from their homes. That idea was taken from a lot of businesses that we have seen in Mexico,” Ahlenius said.
By Steve Taylor
Rio Grande Guardian
McALLEN, Oct. 3 - McAllen civic and business leaders are set to mount a major marketing effort nationally, locally, and in Mexico.
Some aspects of the ad campaign were unveiled to chamber of commerce officials from the state of Tamaulipas by McAllen Chamber of Commerce President and CEO Steve Ahlenius. He did not say how much was being spent on the campaign.
“McAllen is going to be running an ad campaign along the Rio Grande Valley from Matamoros to Reynosa promoting McAllen as a destination for restaurants and shops within the next 90 days. We are also going to run some of that campaign in northern Mexico,” Ahlenius said, during a power-point presentation. “That’s going to shoehorn into a larger campaign that is going to happen nationally, both in Texas and the national market.”
Ahlenius made his remarks when his Chamber hosted a meeting of the Rio Grande Valley-Tamaulipas Chambers of Commerce group.
Ahlenius said the City of McAllen, McAllen Economic Development Corporation and the McAllen Chamber of Commerce would be jointly hosting news conferences in Saltillo, Monterrey, San Luis Potosi and Ciudad Victoria to promote the opening of the Anzalduas International Bridge.
“Obviously, those markets are critical to Mexican visitors coming here. We want them coming through the new bridge, through the Hidalgo Bridge, or any of the other bridges, that gets them to the U.S,” he said.
Part of the marketing strategy will include the promotion of McAllen as a growing destination for arts and entertainment. Ahlenius said the city has commissioned three different artists to design high quality pieces of art that will be displayed in different parts of the city. The money for this is coming for a $25,000 public art grant, he said.
In addition, McAllen will be hosting over 100 artists from across Mexico during an arts event last two and a half days next February. “It’s going to be fun. We are going to have music, it will be a family event and I think you are going to enjoy it,” Ahlenius said. Luis Cantu, a native of Houston who lived in Mexico for many years will be in charge of this project. Cantu is vice president of Community Development and Inter-American Relations for the Chamber.
There will also be a major “matchmaking” event to connect businesses in McAllen with businesses in Sinaloa, Mexico. “It is all about fostering business opportunities between our community and communities in Mexico,” Ahlenius said.
In addition to announcing the marketing campaign, Ahlenius spoke at length about a critical new role the chamber had identified for itself – providing added value to the group’s members and the wider community. “If we are not creating wealth or adding value to our members and to the business community then we have failed our mission as a business association,” he said.
Ahlenius said the days are long gone when the Chamber would put on an event and then go home saying, ‘that was a good event.’
“How do you know it is a good event? How do you measure success? Is it profitable?” Ahlenius asked. He said he tells folks that the McAllen Chamber is a non-profit in name only. “We are a business association run by business people. The expectation is that we are also profitable. When we do things we are not losing money, we are making money,” he said.
Ahlenius said his Chamber is also “highly productive” because it has to be. “We have got to produce and we have got to produce more with less,” he explained. He said he has a story he likes to tell to illustrate this point. Five years ago he visited Ireland to see a new Dell computer manufacturing complex. The plant manager explained that Dell’s goal in the next 18 months was to cut a billion dollars in expenses through gearing up the new factory “That’s phenomenal. I think our challenge as an operation is, how do we get more out of less - because everybody else is,” Ahlenius said.
Ahlenius listed some important attributes a chamber of commerce has to have, including high customer satisfaction, positive relationships, both inside and outside of an organization, and innovation. “Businesses create innovation. The challenge for chambers is to become innovative, to try new things, not to do the same things over again over again,” he said. A chamber can become irrelevant if it does the same things over and over, he said.
Ahlenius said there are five key areas the McAllen Chamber is focusing on to bring about added value to the community. The five are securing conventions, bringing tourists to the city, fostering creativity, fostering innovation, and entrepreneurial development.
With regard to the new $65 million convention center, Ahlenius said the aim is to book 20,000 hotel room nights a year for events connected with the center.
With regard to attracting tourists, the Chamber is specifically targeting two types, the Mexican national and the nature tourist, Ahlenius said. He pointed out that the Chamber has an office in Monterrey and that a “good deal of money” is spent on advertising aimed at Mexican nationals that could be spending a weekend in the city. “We feel very strongly that we have a lot of the restaurant and retail experiences that people are looking for,” Ahlenius said.
With regard to McAllen becoming home to a vibrant class of creative thinkers, Ahlenius cited Richard Florida’s book, The Rise of the Creative Class. In the book, Florida argues that artists, educators, scientists, engineers and the like are the driving force behind innovation, entrepreneurial activity and economic growth.
“The communities of 21st century that succeed will be the ones that foster arts; that foster creativity, those where people want to go to experience different things,” Ahlenius said.
The City of McAllen was catering to such people, Ahlenius said, pointing to Art Walk, an arts-related event that takes place on the first Friday evening of each month on Main Street. He also pointed to the live music on offer in Archer Park and the convention center. Another example, he said, is the creative incubator the McAllen Chamber runs, which has 16 different studios for graphic designers, photographers, filmmakers and other artists to work in. He said the Chamber has awarded $16,000 in grants to local artists over the last year.
A great example of creative people being a driving force in the economy, Ahlenius said, are the two guys that created You Tube in a garage in Palo Alto, California. About 18 months ago You Tube was sold for over a billion dollars, Ahlenius said. “Our board has made a commitment to do things that foster inventors, people who have new ideas, whether it is software, technology, etc. The idea is to get that concept from the garage to the market place,” Ahlenius said.
Focusing on innovation is also a key area, Ahlenius said. The Chamber is providing up to $10,000 in grants to someone who has a good idea that needs to get to a market place. That money can be used for patent searches, testing, prototype development, filings, etc. “The idea is to move that project along for them as far as what they are wanting to see happen,” Ahlenius explained.
Another area the McAllen Chamber is focusing on is entrepreneurship. Ahlenius said this is a critical component for any chamber. He said a small business grant would be awarded to a McAllen area business, probably within the next 60 days, worth up to $25,000. “The idea is to help to grow that small business,” he said. The Chamber also has an entrepreneurial boot camp that is run in conjunction with the University of Texas-Pan American. Ahlenius said this program helps put entrepreneurs in contact with investors who are looking at opportunities to help locally grown small businesses. Ahlenius also pointed to a business plan competition the Chamber runs with South Texas College. The student with the best business plan gets $1,000, the student with the second best business plan gets $750, and the third placed student gets $250. “We do that every semester. The idea is to get college kids thinking about starting their own business,” Ahlenius said.
Matchmaking events are also important to the McAllen Chamber. Recently, the Chamber hosted an event with the state of Veracruz. About 30 businesses from Veracruz and 15 from the Valley were matched to try to foster deals. “That’s what it comes down to. If we are not fostering those types of exchanges, if we are not providing those types of opportunities to our members to do business we have really missed the boat in terms of what we need to be doing in this community,” Ahlenius said.
One new program the McAllen Chamber will be launching, probably within the next 60 days, is helping Latinas who want to run their own business. The program is being launched in association with Wells Fargo Bank, which has chipped in $10,000. It will be called the Latina HOPE program. Hope stands for Home, Office, Part time, Entrepreneur. “It’s for women who are at the poverty level who, by having a home-based business, can make an additional $200 or $300 a month, to help supplement their income, from their homes. That idea was taken from a lot of businesses that we have seen in Mexico,” Ahlenius said.
Friday, October 2, 2009
IRS Rule Change Leads To Spike In Commercial Loan Modifications | NAI Rio Grande Valley
IRS Rule Change Leads To Spike In Commercial Loan Modifications
South Lake Tahoe, United States (IBwire.com - October 02, 2009) The IRS rule change issued on September 15, 2009 allows loan servicers and commercial property owners to agree on a workable modification before a default of the loan. Prior to this change, owners of commercial property could only get a small change in the terms because a major change would jeopardize the REMIC's tax exempt status.
REMIC's are essentially trusts that were established to purchase loans from commercial mortgage bankers. These trusts would then sell the income stream as an investment vehicle on Wall St to institutional and individual investors.
The market for CMBS investments broke down following the sub-prime crisis in 2008. The Federal Reserve has made efforts to restore liquidity to that market with the TALF (term asset lending facility) program which funds loans to owners of recently issued CMBS.
From 2005 - 2007 about 70% of commercial loans were packaged into CMBS. Many of these loans were made with loose underwriting standards to feed the demand for high yield investments. These loans typically have a 3 to 7 year maturity. With the commercial real estate price deflation that is occurring and the tightening of lending standards, property owners will have a hard time finding financing.
"We have seen an increase of 30% in lead production at commercialmodification.com since the IRS changed the rules two weeks ago" says Ted Schmidt, President of Leadsnet, Inc., a leading provider of commercial mortgage modification leads.
Read More...
South Lake Tahoe, United States (IBwire.com - October 02, 2009) The IRS rule change issued on September 15, 2009 allows loan servicers and commercial property owners to agree on a workable modification before a default of the loan. Prior to this change, owners of commercial property could only get a small change in the terms because a major change would jeopardize the REMIC's tax exempt status.
REMIC's are essentially trusts that were established to purchase loans from commercial mortgage bankers. These trusts would then sell the income stream as an investment vehicle on Wall St to institutional and individual investors.
The market for CMBS investments broke down following the sub-prime crisis in 2008. The Federal Reserve has made efforts to restore liquidity to that market with the TALF (term asset lending facility) program which funds loans to owners of recently issued CMBS.
From 2005 - 2007 about 70% of commercial loans were packaged into CMBS. Many of these loans were made with loose underwriting standards to feed the demand for high yield investments. These loans typically have a 3 to 7 year maturity. With the commercial real estate price deflation that is occurring and the tightening of lending standards, property owners will have a hard time finding financing.
"We have seen an increase of 30% in lead production at commercialmodification.com since the IRS changed the rules two weeks ago" says Ted Schmidt, President of Leadsnet, Inc., a leading provider of commercial mortgage modification leads.
Read More...
Thursday, October 1, 2009
More Jobs in the McAllen-Edinburg, Texas Market
Ninety-nine of the nation’s 100 biggest labor markets had fewer jobs in August than a year earlier, led by a loss of 230,000 jobs in the Los Angeles area, according to a report released Wednesday by the U.S. Bureau of Labor Statistics.
The only exception was the Mexican border market of McAllen-Edinburg, Texas, which had 3,200 more jobs in August than in the same month a year ago.
The following are the 100 biggest labor markets in America, ranked according to raw change in employment between August 2008 and August 2009. Each market’s percent change is in parentheses:
McAllen-Edinburg, Texas, gain of 3,200 jobs (1.5%)
Jackson, Miss., loss of 1,200 jobs (-0.5%)
Baton Rouge, La., loss of 3,300 jobs (-0.9%)
El Paso, Texas, loss of 3,500 jobs (-1.3%)
Worcester, Mass., loss of 3,500 jobs (-1.4%)
Trenton, N.J., loss of 4,000 jobs (-1.7%)
Little Rock, Ark., loss of 4,600 jobs (-1.3%)
New Haven, Conn., loss of 4,900 jobs (-1.8%)
Columbia, S.C., loss of 5,100 jobs (-1.4%)
... Read More
The only exception was the Mexican border market of McAllen-Edinburg, Texas, which had 3,200 more jobs in August than in the same month a year ago.
The following are the 100 biggest labor markets in America, ranked according to raw change in employment between August 2008 and August 2009. Each market’s percent change is in parentheses:
McAllen-Edinburg, Texas, gain of 3,200 jobs (1.5%)
Jackson, Miss., loss of 1,200 jobs (-0.5%)
Baton Rouge, La., loss of 3,300 jobs (-0.9%)
El Paso, Texas, loss of 3,500 jobs (-1.3%)
Worcester, Mass., loss of 3,500 jobs (-1.4%)
Trenton, N.J., loss of 4,000 jobs (-1.7%)
Little Rock, Ark., loss of 4,600 jobs (-1.3%)
New Haven, Conn., loss of 4,900 jobs (-1.8%)
Columbia, S.C., loss of 5,100 jobs (-1.4%)
... Read More
Monday, September 28, 2009
The Third Coast, Post 9/11 Shipping Alternative | NAI Rio Grande Valley
The Third Coast
The unique location of the Greater McAllen Alliance corridor positions it as one of the most competitive shipping ports to and from Asia, Europe and South America. Considered by many companies as the third coast, this corridor is the cost effective, post 9/11 shipping alternative. Globally produced goods can be consolidated in one location to serve all North American markets. World events over the last few years have changed the reliability of our traditional logistic systems. Today, smart companies are looking at alternatives.
Shippers have started using the Mexican ports of Manzanillo and Altamira to save time and money. Shipments arriving at these ports are moved by truck or rail to a new dry port in Reynosa, Mexico or distribution warehouses in the greater McAllen area. From here they are shipped to points across North America. This route can save the shipper 20-25% in transportation costs and an average of three days of shipping time. With the increased emphasis on logistics cost and speed to market, it is easy to see the benefits of being able to ship all global production to customers from a single North American location. This virtually eliminates the need for restaging or partial shipments to meet customer demands.
Shipping through this new corridor is faster, cheaper and easier. Just another instance of bridging the Americas (and now the World) for international trade.
Knowledge is Power! Upcoming Constitutional Amendments on the November 3rd Election Ballot | NAI Rio Grande Valley
Knowledge is Power!
Here is an article from TAR's consumer website, www.TexasRealEstate.com that relates to the upcoming Constitutional Amendments on the November 3rd Election Ballot. This is great information to review prior to casting your vote.
Important issues for Texas homeowners
SEPT. 28, 2009
On Nov. 3, 2009, the voters of Texas will once again have an opportunity to take a stand against the burdensome and uneven taxation of residential property. There are four amendments that will directly affect all property owners in the state, and the Texas Association of REALTORS® is imploring all homeowners to vote and be heard on these issues.
So what exactly are you voting for in this election cycle? If you're like me, you have on more than one occasion glanced at a proposed amendment, scratched your head, and had a bewildered look on your face. The language is so full of legislative jargon, and without background information, it is difficult at times to figure out the intent.
I'm sure that anyone who has ever seen an episode of Star Trek has probably wondered, "How is it that aliens from all across the galaxy can speak and understand English?" The television show explained this phenomenon through the use of an accepted convention in science fiction called a "universal translator." No matter what kind of gibberish was spoken, it would always come out as plain English. I have no doubt that anyone who has ever consulted with an attorney on a legal issue probably could've used something like this.
Yes, I am a lawyer. It is a much-maligned profession (and admittedly sometimes deserved). But in this case, I must rise to our defense. Believe it or not, there is a reason why the language of statutes and proposed amendments is so seemingly convoluted. Every word has to be carefully considered and painstakingly analyzed to make sure it meets constitutional requirements, is not overly ambiguous, and will not be misconstrued.
That being said, legalese is definitely not the best way to convey information to voters. So that is why I, your friendly neighborhood association legal counsel, will act as your universal translator for the upcoming election on the proposed constitutional amendments. I'm only going to translate those propositions on the Nov. 3 statewide ballot that directly affect homeowners. By the way, just to be clear, I urge you to join Texas REALTORS® in voting for all of these. Here we go ...
Proposition 2
Legalese: The constitutional amendment authorizing the legislature to provide for the ad valorem taxation of a residence homestead solely on the basis of the property's value as a residence homestead.
Translation: If you're a homeowner in Texas, you are well aware of the astronomical increases in the appraised values throughout the state, especially if the property is not covered by zoning regulations. The central appraisers are using a practice called "highest and best use," which is a method that allows a property to be valued on potential use rather than the current use. So if your residence homestead happens to be near a new commercial development, you could have a Spock-like, eyebrow-raising experience the next time you get your appraisal. Proposition 2 will fix this problem, mandating that a residence be appraised only on as a residence, regardless of what the highest and best use of the property may be.
Proposition 3
Legalese: The constitutional amendment providing for uniform standards and procedures for the appraisal of property for ad valorem purposes.
Translation: There is currently a hodgepodge of rules and standards for appraisals throughout the 254 counties of Texas. Passing this amendment would allow the state to have direct enforcement and oversight over every appraisal district. This would ensure that there is uniformity of the appraisal processes across the state; and if there were inconsistent appraisal methods among the counties, the state would have the power to establish uniformity. If this amendment were to pass, property owners in counties throughout the state could be assured that they were being evaluated in a similar manner. This is important because state funding for public schools is based on the taxable property in each school district.
Proposition 5
Legalese: The constitutional amendment authorizing the legislature to establish a single board of equalization for two or more adjoining appraisal entities that elect to provide for consolidated equalizations.
Translation: The main responsibility of the board of equalization is to hear appeals of the appraised value to taxable property and to resolve disputes between taxpayers and the appraisal districts. Appraisal districts have had a difficult time appointing boards in rural counties. By allowing appraisal district to pool together their qualified applicants, it would enable those counties to ensure that the appraisal process is handled professionally and in a timely manner.
Proposition 11
Legalese: The constitutional amendment to prohibit the taking, damaging, or destroying of private property for public use unless the action is for the ownership, use, and enjoyment of the property by the state, a political subdivision of the state, the public at large, or entities granted the power of eminent domain under law or for the elimination of urban blight on a particular parcel of property, but not for certain economic development or enhancement of tax revenue purposes, and to limit the legislature's authority to grant the power of eminent domain to an entity.
Translation: Surprisingly, this one is actually pretty self-explanatory. Both the U.S. and the Texas Constitution authorize the power of eminent domain. This power allows a governmental entity to take private property as long as it is for a "public use" and the owner is adequately compensated. This amendment would narrow the scope under which private property could be taken by eminent domain. It essentially would eliminate the taking of private property for either private economic development (e.g., a shopping mall) or to boost tax revenues. Lastly, as of Jan. 1, 2010, the power of eminent domain could be granted only be a two-thirds vote of the Texas Legislature.
Now that you're armed with your very own universal translator, you can take the steps to live long and prosper. I'd start by voting for propositions 2, 3, 5, and 11 on the Nov. 3 ballot!
Here is an article from TAR's consumer website, www.TexasRealEstate.com that relates to the upcoming Constitutional Amendments on the November 3rd Election Ballot. This is great information to review prior to casting your vote.
Important issues for Texas homeowners
SEPT. 28, 2009
Lost in translation
By GABRIEL LOPEZ
On Nov. 3, 2009, the voters of Texas will once again have an opportunity to take a stand against the burdensome and uneven taxation of residential property. There are four amendments that will directly affect all property owners in the state, and the Texas Association of REALTORS® is imploring all homeowners to vote and be heard on these issues.
So what exactly are you voting for in this election cycle? If you're like me, you have on more than one occasion glanced at a proposed amendment, scratched your head, and had a bewildered look on your face. The language is so full of legislative jargon, and without background information, it is difficult at times to figure out the intent.
I'm sure that anyone who has ever seen an episode of Star Trek has probably wondered, "How is it that aliens from all across the galaxy can speak and understand English?" The television show explained this phenomenon through the use of an accepted convention in science fiction called a "universal translator." No matter what kind of gibberish was spoken, it would always come out as plain English. I have no doubt that anyone who has ever consulted with an attorney on a legal issue probably could've used something like this.
Yes, I am a lawyer. It is a much-maligned profession (and admittedly sometimes deserved). But in this case, I must rise to our defense. Believe it or not, there is a reason why the language of statutes and proposed amendments is so seemingly convoluted. Every word has to be carefully considered and painstakingly analyzed to make sure it meets constitutional requirements, is not overly ambiguous, and will not be misconstrued.
That being said, legalese is definitely not the best way to convey information to voters. So that is why I, your friendly neighborhood association legal counsel, will act as your universal translator for the upcoming election on the proposed constitutional amendments. I'm only going to translate those propositions on the Nov. 3 statewide ballot that directly affect homeowners. By the way, just to be clear, I urge you to join Texas REALTORS® in voting for all of these. Here we go ...
Proposition 2
Legalese: The constitutional amendment authorizing the legislature to provide for the ad valorem taxation of a residence homestead solely on the basis of the property's value as a residence homestead.
Translation: If you're a homeowner in Texas, you are well aware of the astronomical increases in the appraised values throughout the state, especially if the property is not covered by zoning regulations. The central appraisers are using a practice called "highest and best use," which is a method that allows a property to be valued on potential use rather than the current use. So if your residence homestead happens to be near a new commercial development, you could have a Spock-like, eyebrow-raising experience the next time you get your appraisal. Proposition 2 will fix this problem, mandating that a residence be appraised only on as a residence, regardless of what the highest and best use of the property may be.
Proposition 3
Legalese: The constitutional amendment providing for uniform standards and procedures for the appraisal of property for ad valorem purposes.
Translation: There is currently a hodgepodge of rules and standards for appraisals throughout the 254 counties of Texas. Passing this amendment would allow the state to have direct enforcement and oversight over every appraisal district. This would ensure that there is uniformity of the appraisal processes across the state; and if there were inconsistent appraisal methods among the counties, the state would have the power to establish uniformity. If this amendment were to pass, property owners in counties throughout the state could be assured that they were being evaluated in a similar manner. This is important because state funding for public schools is based on the taxable property in each school district.
Proposition 5
Legalese: The constitutional amendment authorizing the legislature to establish a single board of equalization for two or more adjoining appraisal entities that elect to provide for consolidated equalizations.
Translation: The main responsibility of the board of equalization is to hear appeals of the appraised value to taxable property and to resolve disputes between taxpayers and the appraisal districts. Appraisal districts have had a difficult time appointing boards in rural counties. By allowing appraisal district to pool together their qualified applicants, it would enable those counties to ensure that the appraisal process is handled professionally and in a timely manner.
Proposition 11
Legalese: The constitutional amendment to prohibit the taking, damaging, or destroying of private property for public use unless the action is for the ownership, use, and enjoyment of the property by the state, a political subdivision of the state, the public at large, or entities granted the power of eminent domain under law or for the elimination of urban blight on a particular parcel of property, but not for certain economic development or enhancement of tax revenue purposes, and to limit the legislature's authority to grant the power of eminent domain to an entity.
Translation: Surprisingly, this one is actually pretty self-explanatory. Both the U.S. and the Texas Constitution authorize the power of eminent domain. This power allows a governmental entity to take private property as long as it is for a "public use" and the owner is adequately compensated. This amendment would narrow the scope under which private property could be taken by eminent domain. It essentially would eliminate the taking of private property for either private economic development (e.g., a shopping mall) or to boost tax revenues. Lastly, as of Jan. 1, 2010, the power of eminent domain could be granted only be a two-thirds vote of the Texas Legislature.
Now that you're armed with your very own universal translator, you can take the steps to live long and prosper. I'd start by voting for propositions 2, 3, 5, and 11 on the Nov. 3 ballot!
Saturday, September 26, 2009
Pharr, TX to Benefit from BBVA Compass Shifting Jobs to Texas
BBVA Compass shifts jobs to Texas
San Antonio Business Journal - by Greg Barr
Thursday, September 24, 2009
Fast-growing regional bank BBVA Compass plans to shift 200 jobs from its call center in Birmingham, Ala., to Texas.
The bank plans to phase out call center operations in Alabama and transition the jobs to Pharr, near McAllen, and also to a new call center to be located in San Antonio, according to BBVA spokesman Ed Bilek.
The jobs will be outsourced to call center operator Atento, effective Oct.1.
BBVA Compass, based in Birmingham, is the U.S. banking arm of Spanish financial services giant Banco Bilbao Vizcaya Argentaria SA. The holding company for BBVA’s U.S. operations is based in Houston.
Barr writes for the Houston Business Journal, an affiliated publication to the San Antonio Business Journal.
San Antonio Business Journal - by Greg Barr
Thursday, September 24, 2009
Fast-growing regional bank BBVA Compass plans to shift 200 jobs from its call center in Birmingham, Ala., to Texas.
The bank plans to phase out call center operations in Alabama and transition the jobs to Pharr, near McAllen, and also to a new call center to be located in San Antonio, according to BBVA spokesman Ed Bilek.
The jobs will be outsourced to call center operator Atento, effective Oct.1.
BBVA Compass, based in Birmingham, is the U.S. banking arm of Spanish financial services giant Banco Bilbao Vizcaya Argentaria SA. The holding company for BBVA’s U.S. operations is based in Houston.
Barr writes for the Houston Business Journal, an affiliated publication to the San Antonio Business Journal.
Federal Reserve Leaves Interest Rates Near Zero | NAI Rio Grande Valley
Federal Reserve leaves interest rates near zero By Don Lee Los Angeles Times | Business
September 24, 2009
The Fed's policy-setting committee said evidence suggested "economic activity has picked up," compared with its Aug. 13 assessment that the economy was merely "leveling out."
This time the Fed also said that "activity in the housing sector has increased" and that businesses' pace of cutting back on investments and staffing had slowed.
But the panel, citing continuing job losses and constrained household spending, said in a statement that "economic activity is likely to remain weak for a time." Substantial slack, or unused capacity, will probably dampen cost pressures and keep inflation subdued for some time, the committee said.
The panel voted 10 to 0 to leave the target for the Fed's key short-term interest rate between zero and 0.25% for "an extended period," which many analysts interpret to mean until at least mid-2010.
Although that's good for consumers paying mortgages and credit cards, "if you're a saver, it's keeping rates down -- you hate it," said Babette Heimbuch, chief executive at the Los Angeles-based thrift FirstFed Financial Corp.
Jack Ablin, chief investment officer at Harris Private Bank in Chicago, said he was encouraged "by the unanimity of the Fed governors, that we have all of them behind this decision to keep rates low."
With high unemployment and bank lending still weak, Ablin added, "I think the Fed is taking a very realistic view. There certainly is a lot of stimulus in the system, but also a lot of slack."
The Fed also announced another cautious move toward eventually pulling back from its unusual interventions in financial markets to keep the economy from collapsing. The Fed is about two-thirds of the way through its previously announced plan to buy as much as $1.25 trillion of government agency mortgage-backed securities by the end of this year.
On Wednesday, the central bank said it would buy the full $1.25-trillion amount but would "gradually slow these purchases" until they are completed next March, along with another program to buy $200 billion in agency debt.
"The mortgage market has gotten a reprieve, and mortgage rates may stay low going into the spring of next year," said Chris Rupkey, an economist at Bank of Tokyo-Mitsubishi in New York.
But, he added, "there might be some fear that rising interest rates next spring when the Fed stops buying mortgages could put the kibosh on the recovery."
The purchases of mortgage bonds issued by government agencies have helped push down the cost of home loans. They also have made the Fed, in effect, the principal source of financing for the housing market and have contributed to a ballooning of the central bank's balance sheet. Some analysts fear that the Fed's programs are supplying the economy with too much cheap money that will lead to spiraling inflation.
The Fed's plan to wind down the purchases of mortgage-backed securities indicates a stronger confidence in the housing market as the central bank seeks to shift the financing back to the private sector.
Yet it also buys the agency time, said G.U. Krueger, an economist at HousingEcon.com, a research and consulting firm in Los Angeles.
"They're hedging their bets a little bit, keeping their options open in case the market falls again," Krueger said.
With the economy showing signs of improvement, the Fed has come under increasing pressure to address the question of an "exit strategy" for its lending programs.
"The exit strategy will become the focal point of future policy deliberations," California State University economist Sung Won Sohn said in a research note. "After all, a firefighter's first rule of survival is 'Know your way out.' "
The Fed policy-setting panel's next meeting is Nov. 3-4.
don.lee@latimes.com
September 24, 2009
Reporting from Washington - The Federal Reserve said Wednesday that it would keep short-term interest rates near zero for the foreseeable future, even though the central bank acknowledged that the economy was recovering from its long downturn.
The announcement after a two-day Fed meeting makes clear that the agency is in no hurry to raise interest rates despite concerns that the federal government's soaring deficits and the Fed's extraordinary stimulus measures will eventually drive up inflation.
The Fed's policy-setting committee said evidence suggested "economic activity has picked up," compared with its Aug. 13 assessment that the economy was merely "leveling out." This time the Fed also said that "activity in the housing sector has increased" and that businesses' pace of cutting back on investments and staffing had slowed.
But the panel, citing continuing job losses and constrained household spending, said in a statement that "economic activity is likely to remain weak for a time." Substantial slack, or unused capacity, will probably dampen cost pressures and keep inflation subdued for some time, the committee said.
The panel voted 10 to 0 to leave the target for the Fed's key short-term interest rate between zero and 0.25% for "an extended period," which many analysts interpret to mean until at least mid-2010.
Although that's good for consumers paying mortgages and credit cards, "if you're a saver, it's keeping rates down -- you hate it," said Babette Heimbuch, chief executive at the Los Angeles-based thrift FirstFed Financial Corp.
Jack Ablin, chief investment officer at Harris Private Bank in Chicago, said he was encouraged "by the unanimity of the Fed governors, that we have all of them behind this decision to keep rates low."
With high unemployment and bank lending still weak, Ablin added, "I think the Fed is taking a very realistic view. There certainly is a lot of stimulus in the system, but also a lot of slack."
The Fed also announced another cautious move toward eventually pulling back from its unusual interventions in financial markets to keep the economy from collapsing. The Fed is about two-thirds of the way through its previously announced plan to buy as much as $1.25 trillion of government agency mortgage-backed securities by the end of this year.
On Wednesday, the central bank said it would buy the full $1.25-trillion amount but would "gradually slow these purchases" until they are completed next March, along with another program to buy $200 billion in agency debt.
"The mortgage market has gotten a reprieve, and mortgage rates may stay low going into the spring of next year," said Chris Rupkey, an economist at Bank of Tokyo-Mitsubishi in New York.
But, he added, "there might be some fear that rising interest rates next spring when the Fed stops buying mortgages could put the kibosh on the recovery."
The purchases of mortgage bonds issued by government agencies have helped push down the cost of home loans. They also have made the Fed, in effect, the principal source of financing for the housing market and have contributed to a ballooning of the central bank's balance sheet. Some analysts fear that the Fed's programs are supplying the economy with too much cheap money that will lead to spiraling inflation.
The Fed's plan to wind down the purchases of mortgage-backed securities indicates a stronger confidence in the housing market as the central bank seeks to shift the financing back to the private sector.
Yet it also buys the agency time, said G.U. Krueger, an economist at HousingEcon.com, a research and consulting firm in Los Angeles.
"They're hedging their bets a little bit, keeping their options open in case the market falls again," Krueger said.
With the economy showing signs of improvement, the Fed has come under increasing pressure to address the question of an "exit strategy" for its lending programs.
"The exit strategy will become the focal point of future policy deliberations," California State University economist Sung Won Sohn said in a research note. "After all, a firefighter's first rule of survival is 'Know your way out.' "
The Fed policy-setting panel's next meeting is Nov. 3-4.
don.lee@latimes.com
Friday, September 25, 2009
Ramon: Anzalduas International Bridge should be open before end of year
Ramon: Anzalduas International Bridge should be open before end of year
By Steve Taylor
McALLEN, Sept. 25 - McAllen Bridge Director George Ramon will be going to Washington, D.C., next week with Mayor Richard Cortez to see if he can get a firm date for the opening of the Anzalduas International Bridge.
“We will be talking to the U.S. Department of State and other agencies, trying to set up a date,” Ramon said.
“Hopefully, it will open before year's end. We are working with the appropriate federal agencies and stakeholders to bring this project online sometime in December. It behooves us to have this project ready to start operations when the busiest time for crossings is and that’s November and December.”
Ramon made his remarks in an insightful speech to the Rio Grande Valley-Tamaulipas Bi-National Chambers of Commerce group at the McAllen Chamber of Commerce offices on Thursday.
Giving the keynote address, Ramon spoke about Anzalduas Bridge and the importance of free trade for the Valley and northern Mexico. “Free trade is about breaking down the barriers and that is what NAFTA has done. It was worked,” Ramon said.
While many people think of free trade as a modern concept, because the North American Free Trade Agreement only started in 1994, its origins in Latin America go back at least 150 years, Ramon said.
He paid tribute to free trade pioneers of the 19th century, such as Benito Juárez of Mexico, Simón BolÃvar of Venezuela, and José Martà of Cuba. “Their vision was free trade for the Americas,” Ramon said.
Free trade did not happen as quickly as it should have, Ramon said, not because of the complexity of the issue but because of a lack of trust. “The physiological barriers were there 150 years ago,” he said.
The advent of NAFTA, however, has created the largest trading bloc in the world, Ramon said. “Free trade has helped the border economies on both sides of the river,” he said.
In 2008, two-way trade between the U.S. and Mexico was valued at $340 billion, Ramon said. Of this, 80 percent went through Texas and a large part of it went through South Texas. “Trade has increased and the barriers have come down,” he said.
The big problem now, Ramon said, is the port of entries themselves. “Why? Because they are very congested and obviously the events of 9/11 have forced a more dramatic review of people, goods and documents coming into the country, hence the need for new border crossings,” Ramon said.
Ramon joked that he learned the art of patience while working on the Anzalduas International Bridge project. He said he started work on it when his oldest son was in first grade elementary school. That son is now in his third year of college. “It’s been a rather costly, somewhat cumbersome, process but we are here and very near completion of the project,” he said.
The City of McAllen is the managing partner in the Anzalduas bride project. The cities of Mission, Hidalgo and Granjeno are also involved. The City of McAllen has invested $42 million, Ramon said, the federal government $25.5 million, and the state of Texas $28.5 million, not including ancillaries such as utilities, drainage and in-kind contributions. “So, we are looking at well in excess of $100 million in capital investment to benefit the region,” Ramon said.
From the border station on the U.S. side to the border station on the Mexican side, the distance is 3.2 miles. Ramon said the bridge has been designed specifically to facilitate trade. It will have Radio Frequency Identification (RFID) technology that allows scanners to read laser visas, passports and other entry documents from a distance. It will also have a SENTRI lane, which is a dedicated commuter lane for low risk travelers.
“What we are trying to do is take away some of that congestion from other bridges so as to allow a more efficient flow of goods and people across our bridges. I would like to say this is the port of the future,” Ramon said. “We are going to have the latest and the greatest technology out there. The crossing-the-border experience is going to be much easier.”
Ramon said McAllen city leaders do not necessarily view Anzalduas as a revenue generating bridge in terms of toll collections. “What’s important to us is that it be a trade facilitator. It’s what happens beyond the bridge that’s important to the development of our communities and that’s how we view it,” he said. “This is not just for McAllen. It is for Reynosa, Monterrey, and beyond.”
Ramon added that the construction of Anzalduas International Bridge was yet another example of McAllen “doing something with a regional vision.” He pointed to the expansion of the airport and the local hospitals and the construction of the new convention center as further examples of this regional approach.
“We are doing something not even in our own town, it’s in another city (Mission), just like the bridge we own in Hidalgo (is not in our city). The vision has always been one to improve the border economy and improve the quality of life,” Ramon said.
By Steve Taylor
McALLEN, Sept. 25 - McAllen Bridge Director George Ramon will be going to Washington, D.C., next week with Mayor Richard Cortez to see if he can get a firm date for the opening of the Anzalduas International Bridge.
“We will be talking to the U.S. Department of State and other agencies, trying to set up a date,” Ramon said.
“Hopefully, it will open before year's end. We are working with the appropriate federal agencies and stakeholders to bring this project online sometime in December. It behooves us to have this project ready to start operations when the busiest time for crossings is and that’s November and December.”
Ramon made his remarks in an insightful speech to the Rio Grande Valley-Tamaulipas Bi-National Chambers of Commerce group at the McAllen Chamber of Commerce offices on Thursday.
Giving the keynote address, Ramon spoke about Anzalduas Bridge and the importance of free trade for the Valley and northern Mexico. “Free trade is about breaking down the barriers and that is what NAFTA has done. It was worked,” Ramon said.
While many people think of free trade as a modern concept, because the North American Free Trade Agreement only started in 1994, its origins in Latin America go back at least 150 years, Ramon said.
He paid tribute to free trade pioneers of the 19th century, such as Benito Juárez of Mexico, Simón BolÃvar of Venezuela, and José Martà of Cuba. “Their vision was free trade for the Americas,” Ramon said.
Free trade did not happen as quickly as it should have, Ramon said, not because of the complexity of the issue but because of a lack of trust. “The physiological barriers were there 150 years ago,” he said.
The advent of NAFTA, however, has created the largest trading bloc in the world, Ramon said. “Free trade has helped the border economies on both sides of the river,” he said.
In 2008, two-way trade between the U.S. and Mexico was valued at $340 billion, Ramon said. Of this, 80 percent went through Texas and a large part of it went through South Texas. “Trade has increased and the barriers have come down,” he said.
The big problem now, Ramon said, is the port of entries themselves. “Why? Because they are very congested and obviously the events of 9/11 have forced a more dramatic review of people, goods and documents coming into the country, hence the need for new border crossings,” Ramon said.
Ramon joked that he learned the art of patience while working on the Anzalduas International Bridge project. He said he started work on it when his oldest son was in first grade elementary school. That son is now in his third year of college. “It’s been a rather costly, somewhat cumbersome, process but we are here and very near completion of the project,” he said.
The City of McAllen is the managing partner in the Anzalduas bride project. The cities of Mission, Hidalgo and Granjeno are also involved. The City of McAllen has invested $42 million, Ramon said, the federal government $25.5 million, and the state of Texas $28.5 million, not including ancillaries such as utilities, drainage and in-kind contributions. “So, we are looking at well in excess of $100 million in capital investment to benefit the region,” Ramon said.
From the border station on the U.S. side to the border station on the Mexican side, the distance is 3.2 miles. Ramon said the bridge has been designed specifically to facilitate trade. It will have Radio Frequency Identification (RFID) technology that allows scanners to read laser visas, passports and other entry documents from a distance. It will also have a SENTRI lane, which is a dedicated commuter lane for low risk travelers.
“What we are trying to do is take away some of that congestion from other bridges so as to allow a more efficient flow of goods and people across our bridges. I would like to say this is the port of the future,” Ramon said. “We are going to have the latest and the greatest technology out there. The crossing-the-border experience is going to be much easier.”
Ramon said McAllen city leaders do not necessarily view Anzalduas as a revenue generating bridge in terms of toll collections. “What’s important to us is that it be a trade facilitator. It’s what happens beyond the bridge that’s important to the development of our communities and that’s how we view it,” he said. “This is not just for McAllen. It is for Reynosa, Monterrey, and beyond.”
Ramon added that the construction of Anzalduas International Bridge was yet another example of McAllen “doing something with a regional vision.” He pointed to the expansion of the airport and the local hospitals and the construction of the new convention center as further examples of this regional approach.
“We are doing something not even in our own town, it’s in another city (Mission), just like the bridge we own in Hidalgo (is not in our city). The vision has always been one to improve the border economy and improve the quality of life,” Ramon said.
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