Vermont Buzz

Energy bill threatens jobs and economy

I, too, stand with the numerous businesses in support of the governor’s veto on H.520, not because I am in any way opposed to efficiency programs or the many positive elements of this bill that would help Vermont to address global climate change. My opposition stems from a concern for the adverse effect this proposal may have on Vermont’s business reputation and the fact that our legislators are reneging on a prior promise to Entergy/Vermont Yankee. If the bill were allowed to become law, it would only add substance to the contention that our business climate is unpredictable and hostile. The hastily crafted funding scheme sets a poor precedent.

Legislators have cited the profitability of Yankee’s parent company, Entergy, as another excuse to levy this tax. They have decried the amount of property taxes that Entergy pays, yet this is an agreement that was negotiated by this very body in a previous legislative session. Singling out Entergy to foot the bill sends out a negative signal to the many other profitable national firms here in Vermont. Is this a proper encouragement for employers while we are trying to attract good jobs to our state and losing our young people to states with more opportunities and lower costs of living? An unpredictable business climate coupled with higher electricity costs could significantly affect any company’s decisions to expand or relocate and invest in Vermont.

This legislative action may also have a negative impact on the state’s ability to negotiate future contracts with Hydro-Québec as well, or any other potential power generator that might consider Vermont as a place to do business.

I fully support efforts to increase efficiency measures, but there are better ways to go about achieving such goals. Vermont’s economy should not be undermined with such legislative action, nor should the integrity of this great state be devalued. Vermonters expect it and should not accept anything less.
The Legislature’s attack, on nuclear power seems antithetical to their concern with global climate change. If the goal is to truly address global warming, why then would they support a legislative initiative to target and penalize a large-scale, clean and affordable source of power within Vermont that can provide reliable electricity without significant fossil emissions; one that provides more than 600 highly technical jobs and currently contributes more than $200 million a year in economic benefit to Vermont? The connection between funding this initiative and having Entergy foot the bill is truly only a political convenience. It’s not fair, it’s not smart, and it’s not right.

I support the governor’s use of his veto pen.

Staige Davis
CEO of Lang McLaughry Spera
Former chairman, Vermont Business Roundtable

Letter to Editor: Burlington Free Press

Dear Editor:

It is clear Vermont needs strong leadership if we are to achieve an energy portfolio that provides clean, reliable and affordable power.

It was surprising to read our Senate President Pro Tem Shumlin's piece in the Free Press on May 3 ("My Turn: Tackling climate change requires

courage"). Refusing to acknowledge that nuclear power could play any part in our economic and environmental futures may be politically correct but it ignores the reality of our situation. Given the urgency of global warming which Senator Shumlin truly recognizes, nuclear power does seem to bridge an environmental and economic progress gap without pumping tens of thousands of tons of toxins into the atmosphere. I freely admit that the waste storage issue has not been solved, but there is currently no better option if our society is to be competitive and progress in a global market.

Renewable energy sources like wind, hydro and solar clearly need to be incorporated immediately into our energy mix and efficiency measures must be embraced. None of these can provide the constant supply of electricity that we will need in the interim. Top down regulatory reform that will streamline the process for renewables should be a priority for our legislators. Just imagine how long it would take get a permit in Vermont for any of these options on a scale that is efficient and cost effective.

Leadership must emerge that is willing to support reform measures and not discount our need for continuing reliable supplies including hydro and nuclear.

It is also wrong and unfair to pin the funding for the efficiency expansion on Vermont Yankee. Instead of taxing Vermont Yankee $37 million, we need to be talking about renewing our contracts with Hydro Quebec and re-licensing Vermont Yankee or Vermont will be at a huge disadvantage economically and environmentally. Not facing these issues will leave us no choice but to purchase coal, oil, gas or wood fueled energy which may exacerbate pollution and global warming at a cost that is unpalatable for business and residence customers alike.

Sincerely,

Staige Davis
Member and former Chair of the Vermont Business Roundtable.

VT Education Property Tax Adjustment

VT Education Property Tax Adjustments – Act 185

The Vermont Legislature has changed the way in which State of Vermont Education Property Tax Adjustments are paid. In the past, the Vermont Tax Department paid the rebate/ prebate amounts directly to the individual property owner who was entitled to the tax adjustment. Beginning in 2007, the property tax adjustment will be paid directly to the municipality as a credit toward the homestead amount. Source:  VREIN (VT Real Estate Information Network)

LANG MCLAUGHRY SPERA

 

 

 

 

 

 

 

 

Three Top Firms Merge to Form Largest Independent Real Estate Company in Vermont and Northern New Hampshire.

With 12 Offices and $600 Million in Sales, Lang McLaughry Spera Becomes One of New England's Leading Firms

January 31, 2007, South Burlington, VT--Three of New England's oldest and most respected real estate firms- Lang Associates, McLaughry Real Estate and Pall Spera Company- today announced they have merged to form the largest real estate company in Vermont and northern New Hampshire, and the third-largest independent in all of New England.

The new firm, Lang McLaughry Spera, serves homebuyers and sellers in the two-state geographic area encompassing the Upper Connecticut River Valley, the Central Vermont and Stowe areas and Northwestern Vermont including the Champlain Valley.

With 12 offices, a 200-member sales and support team and more than $600 million in combined sales, Lang McLaughry Spera immediately establishes itself as one of the leading real estate companies in the Northeast.

"I can't begin to describe how excited I am at this merger, and what it will mean in terms of benefits to clients when it comes to buying or selling their properties," said Staige Davis, owner of Lang Associates and chief executive officer of the new firm.

"This is truly a unique merger which brings together three highly regarded companies from separate, non-competing markets.  Joining forces creates a tremendous opportunity to expand our presence from local players into a formidable regional firm.  For our customers, it means increased exposure on a regional and national level, additional services, greater marketing support and increased exposure of their properties. We're proud to not only retain the names of each of the firms, but also the past history, connections and local market expertise as well."

The merger has substantial benefits for the company's sales associates as well, Davis said.  "By working for one company in distinct, non-competing markets, our associates will benefit from a true esprit de corps, comprehensive training and educational materials, and enhanced purchasing power through combined ads, marketing programs, referrals and other media resources.  Our sales associates are now part of the largest independent real estate brokerage firm in northern New England." Davis said yard signs reflecting the company's new logo for the local offices are currently being produced and will be in place in February.

Buff McLaughry, owner of McLaughry Real Estate, will serve as chief operating officer, while Pall Spera, owner of Pall Spera Company, will serve as president of the luxury brand.

The merger brings together the talents, resources, experience and deeply-rooted community involvement of three of the area's longest-operating independent firms.  McLaughry Real Estate was founded in 1959, and Lang Associates and Pall Spera Company were both founded in 1969.

Steve Murray, publisher of real estate industry research firm, Real Trends, called the merger "unique from a number of perspectives.  Here you have three extremely successful, independent firms from three distinct markets coming together under one organizational roof to create a significant regional presence.  That in itself is remarkable. Next, when was the last time you've heard of such a merger of this magnitude that resulted in zero job reductions and no shuffling of management?"

"This merger portends very good things for homebuyers and sellers throughout northern New England" Murray added.  "As just one benefit to buyers and sellers, Lang McLaughry Spera will market properties which are offered in the multiple listing services statewide, rather than locally, in both Vermont and New Hampshire."

In New Hampshire, the new company's offices are located in Hanover, West Lebanon and Grantham.  In Vermont, offices are located in Fairlee, Middlebury, Morrisville, Norwich, South Burlington, St. Albans, Stowe, StoweVillage and Woodstock.

About Lang McLaughry Spera

Lang McLaughry Spera is Vermont and Northern New Hampshire's largest real estate company with 12 offices and more than $600 million in sales in 2006. According to Real Trends, an industry research firm, the company is the third-largest independent real estate firm in all of New England. With corporate offices based in So. Burlington, Lang McLaughry Spera continues affiliations with Leading Real Estate Companies of the World, Luxury Portfolio, the Board of Regents, Who's Who in Luxury Real Estate and other leading industry organizations. For additional information, visit www.LMSRE.com. Additional information can be found at: www.langrealestate.com, www.mclaughry.com and www.pallspera.com.  This month, the company distributed its winter edition of the Lang Lion & Davis Portfolio, a four-color magazine of New Hampshire's and Vermont's finest homes.

2006 3rd Highest Sales Year!

WASHINGTON, January 25, 2007 -  Report from NAR

Existing-home sales eased but prices stabilized as inventories tightened in December, while 2006 was the third-highest sales year on record, according to the National Association of Realtors®.

Total existing-home sales – including single-family, townhomes, condominiums and co-ops – eased 0.8 percent to a seasonally adjusted annual rate1 of 6.22 million units in December from a level of 6.27 million in November.  Sales were 7.9 percent lower than a 6.75 million-unit pace in December 2005.

There were 6,480,000 existing-home sales in all of 2006, down 8.4 percent from a record 7,075,000 in 2005.  The second highest total was 6,779,000 in 2004; NAR began tracking home sales in 1968.

- National Association of Realtors

What is Inclusionary Zoning?

Inclusionary zoning is a land-use concept in which local ordinances require builders to include a certain amount of housing for low- and moderate-income households. In contrast, exclusionary zoning is a technique that effectively drives up the cost of housing, excluding lower-income households from the community. Exclusionary zoning practices have been under attack in communities around the country for decades, most notably in New Jersey, where the historic MountLaureldecisions have led the way in promoting inclusionary zoning techniques and creating affordable housing.

A book, “Field Guide to Inclusionary Zoning” by Frederik Heller includes background information on inclusionary zoning, case studies on what works & what doesn't, considerations in developing inclusionary zoning ordinances, and information on the Mount Laurel doctrine.

- from the National Association of Realtors

Home Improvement Spending

According to the Joint Centerfor Housing Studies at Harvard, Americans spent $168.7 billion on home improvements and repairs in 2006, 1.5 percent more than in 2005.

At the same time the Joint Center came out with its data, the National Association of Homebuilders' survey of remodelers found that kitchen and bathrooms remain the top remodeling jobs, and master bedroom suites and great rooms are the two most popular home additions. The remodelers were surveyed during the first three quarters of last year.

The bulk of the demand for remodeling jobs continued to come from the baby boom generation, according to the NAHB research, which was conducted in conjunction with the quarterly surveying used to produce the NAHB's Remodeling Market Index. However, work requests from 30- to 40-year-old members of Generation X are on the rise, and they are turning out to be bigger spenders than the generation preceding them, the NAHB data show.

Rising energy prices last year appeared to have little impact on the demand for jobs related to improving residential energy efficiency, and a majority of remodelers were involved in making modifications for aging-in-place, although they said that most consumers aren't familiar with the concept. My feeling is that the NAHB should hold a contest to come up with a better description than aging in place, which better describes how I feel when a late train makes me miss the start of an important meeting.

In the first quarter of last year, when remodelers were asked about their most common jobs during 2005, 75 percent reported being hired to remodel kitchens, 67 percent remodeled bathrooms, 57 percent added rooms, 44 percent provided whole house remodeling and 40 percent replaced doors and windows.

This article was taken from the Realty Times - January 25, 2007. "Home Improvement Spending Up Marginally" by Al Heavens

10 THINGS I WANT FOR VERMONT

It’s the holiday season and I’m thinking about Thanksgiving, stockings at Christmas and, maybe even New Year’s resolutions. As outgoing chairman of the Vermont Business Roundtable, I want to send thanks, my wish list, and some potential resolutions to all the Santas and their elves around the state, but especially those in Montpelier.

First, I give thanks for what we have here in Vermont — friendships and civic-minded fellow Vermonters who have emerged from a relatively clean election season. So, what will it be — switches and coal in my stocking or, what I really want, which includes:

1. A green energy future beyond 2012 that includes both nuclear energy and large hydro.
Renewables (i.e., small-scale wind and hydro), efficiency, and demand side management programs should be our first choice for new energy supplies, but cannot realistically fill the enormous gap that would be created if Vermont Yankee’s and Hydro-Quebec’s licenses are not renewed.

These two sources comprise about 70 percent of Vermont’s energy supply. Vermonters don’t want their energy future stockings filled with lumps of smog-producing coal.

2. A government that shows leadership by making our energy future more palatable by reducing the regulatory barriers for those who want to adopt renewable energy practices.
Can you imagine if we have to wait as long for renewable energy in Vermont as we have for the Circumferential Highway?

3. A Legislature that gives Catamount Benefit Plan a chance to be implemented and monitored before introducing further large scale health care reforms.

The enormous number of separate reform initiatives that are incorporated under current law, need to be fully designed, implemented, and monitored to determine if the desired or intended outcomes have indeed been met.

Let’s see if what has passed actually begins to put downward pressure on the rate of health care cost increase while, at the same time, making Vermonters healthier.

4. A policy goal that identifies investments in the state’s human capital as its primary economic development strategy.

Educational attainment correlates positively with personal income, personal health, state tax revenues, civic engagement, and higher levels of satisfaction around quality of life issues. Let’s address the issues that are preventing Vermont’s families and our education system from nurturing the development of educational aspirations or preparing all students to enter the work force ready to succeed.

5. An agreement that Vermonters will first undertake a serious discussion of education expenditures and the cost drivers of our system before delving into the creation of a new formula.

Research shows that over the past 20 years, new funding formulas have had no sustainable impact on the rate of education spending. We have declining enrollments, yet our rate of spending is increasing at twice the rate of inflation. It’s time for a constructive conversation around systems thinking.

6. A commitment by the Legislature to begin the lengthy and necessary process to amend the Vermont constitution and adopt four-year terms.

Vermont is one of only two states in the nation without a four-year term for governor. No executive, in either the public or private sector, should have to plan his staff and future with only a two-year window. It’s time to begin the dialogue.

7. An agreement that Santa spends within his means.

Vermont’s combined taxes are by most accounts some of the highest in the country. We need to recognize our small working population makes for a fiscal challenge. If the state needs to spend more, it must grow the number of companies that will pay taxes, rather than raise the taxes on the existing base. If it can’t grow the number of income-producing businesses, it should spend within its means.

8. Elected officials who pay attention now to the demographic, changes in Vermont’s future.

Vermont will soon have the oldest average age in the country, if trends continue. We will also have many fewer school-age children. We need to plan to fill the needs of our aging population while keeping in mind that our schools will have many fewer students.

9. An era of true leadership from our state government.

We need our elected officials to move beyond simply managing government to creating new vision, making informed choices, setting clear and well-funded priorities, taking certain risks, and making things happen.

Being decisive has not been the hallmark of our recent history. Let, our officials lead from the top. Enlightened leadership is worth the risk. Rudolf is living proof.

10. A celebration of business in Vermont.

In my experience, we have some of the finest businesses in the nation. In general, businesses are socially responsible, environmentally conscious, and have goals consistent with the Vermont ethos. We contribute greatly to the quality of life in our communities and state, yet, at times, it seems as though our efforts are not recognized. Let’s celebrate business and the jobs and prosperity it brings to all Vermonters.

As chairman of the state’s leading business organization focused on long-range policies, I urge all the Santas and their elves to maintain a reasoned and balanced approach to the examination, discussion and development of policy in 2007. Our citizens deserve nothing less.

Best wishes for the future of Vermont and to all Vermonters in this holiday season.

The writer is chairman of the Vermont Business Roundtable’s board of directors and president of Lang, Lion and Davis

Market Buzz

The latest economic forecasts suggest that the real estate market correction is coming to an end offering consumers a once-in-a-lifetime buying opportunity.

The average 30-year fixed rate mortgage rate remains near 40-year lows.  The selection of homes will once again become limited.  For prospective buyers, there may never be a better time to buy a home than right now.  Taking advantage of the variety of homes available on the market today allows buyers the unique opportunity to find the home of their dreams.  Expanded selection combined with low interest rates offer buyers and an opportunity that may never be available again in their lifetime. 

Research indicates that home prices will not go any lower.  The national picture remains bright.  As prices begin to rise again, buyers who do not act now could be making a costly mistake.   Real estate remains the best investment.  The average home purchased five years ago has appreciated 49%.  Even with the recent 2.2% decline in the median home price, this still equates to a more than 45% return on investment for the average homeowner. 

Media reports of a vast market decline are deceiving and consumers will benefit from purchasing a home now before prices begin to rise once again.  Forbes Magazine (using U.S. Department of  Housing and Urban Development statistics), states U.S. real estate prices increased more than 56% from the beginning of 1999 to the end of  2004. 

While year-to-year fluctuations are normal, real estate remains once of the best performing and consistent long-term investments.  For consumers looking for long-term and stable growth rates, real estate is still their number one choice.

(Information provided by National Association of Realtors)

Survey: Homeownership Still a Sound Investment

"U.S. homeowners see their homes as a sound financial investment and want to make improvements, according to the “Wells Fargo Third Annual Survey of U.S. Homeowners.” The survey, involving more than 1,300 homeowners, was conducted in August 2006. Respondents were asked about their financial behaviors and attitudes regarding their homes, the roles their homes play in their future and their concerns about pending adjustable-rate mortgage (ARM) interest rate resets.

Homeowners were asked about various financial products and investments and how they fit into their overall financial portfolio. A majority (72 percent) report that the equity in their home is their most important investment. Among homeowners who have a home equity loan or line of credit more (82 percent) say their home equity is most important.

When asked to select the most important benefit in owning a home from several options, the top choices were that it provides a sense of security (25 percent) and it is a great investment (24 percent). Women were more likely than men, by a 3-to-2 ratio, to view the most important benefit as security, while men were more likely than women, by a 3-to-2 ratio, to see their home as an investment.

Younger homeowners (Generation Y, defined as ages 18-29) are more inclined than the older generations (baby boomers, ages 42-60, and war babies, ages 61 and over) to view real estate as an important investment option in their financial portfolios (44 percent vs. 32 percent).

Despite the recent general slowdown in housing prices, the survey found that 90 percent of homeowners expect their own home value to stay the same (27 percent) or increase (63 percent) during the next 12 months. A large majority (80 percent) are satisfied with their home purchase, indicating they would likely purchase their current home again. Additionally, the majority (54 percent) said they like their current home and would make improvements."

From REAL Trends E-Mail Update #853 11/7/06