|
||||||||||||
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
St. Louis Business & Technology News
"When you think Saint Louis, think Saint Louis Front Page," a weekly publication covering the news and events in the greater St. Louis area. 
How To Reach Us:St. Louis Front Page P.O. Box 1354 St. Louis, MO 63188 Voice: 314-771-0200 Fax: 314-771-0300 To submit news, contact: editor@slfp.com To advertise, contact: advertising@slfp.com |
 |
St. Louis City Announces Wage Incentives for Local Businesses ST. LOUIS, MO, (SLFP.com), February 3, 2010 - The City of St. Louis is providing an incentive to local businesses by paying up to half the salaries for up to six months for new employees who have been laid off or downsized from their previous employer. The "On-the-Job Training" program is available for eligible businesses through the City's St. Louis Agency on Training and Employment (SLATE). Available to businesses on a first-come, first-served basis, the OJT program is made possible by funding from the 2009 American Recovery and Reinvestment Act (ARRA). Due to limited funding, local companies interested in participating must meet certain employment criteria. "This is a win-win opportunity for both businesses and experienced workers. This program benefits businesses by allowing them to hire a new employee while offsetting training costs. The employees benefit by learning new skills and showcasing their work ethic and abilities to perform the required job duties with their new employer," said Mayor Francis G. Slay. SLATE, part of the Missouri Career Center system, will work to connect participating businesses with qualified candidates from the local workforce. For more information on the eligibility requirements for businesses interested in the OJT program contact Bonnie Mireles at 314-657-3546. Missouri General Revenue Collections Declined 12.5 Percent JEFFERSON, MO, (SLFP.com), February 3, 2010 - State Budget Director Linda Luebbering announced today that 2010 fiscal year-to-date net general revenue collections declined 12.5 percent compared to fiscal year 2009, from $4.44 billion last year to $3.88 billion this year. Net general revenue collections for January 2010 decreased by 22.4 percent compared to those for January 2009, from $722.8 million to $561.2 million. Because of the revenue situation, additional expenditure restrictions of $73.8 million are being made to ensure the budget stays balanced for the remainder of the fiscal year. Individual income tax collections decreased 11.2 percent for the year, from $3.23 billion last year to $2.88 billion this year. Sales and use tax collections decreased 7.5 percent for the year from $1.12 billion last year to $1.04 billion this year. Corporate income and corporate franchise tax collections decreased 13.4 percent for the year, from $283.1 million last year to $245.3 million this year. All other collections decreased 4.2 percent for the year, from $245.8 million last year to $235.4 million this year. Refunds increased 14.1 percent for the year, from $445.9 million last year to $508.7 million this year. Real Estate CEOs Predict Long Road to Recovery WASHINGTON, DC, (PRNewswire, February 3, 2010 - Amid signs of a stuttering recovery, senior real estate executives report that declining fundamentals and deterioration in Net Operating Income (NOI) pose formidable challenges to the commercial real estate sector -- encompassing office buildings, shopping malls, warehouses, hotels, and apartment buildings -- according to The Real Estate Roundtable's 1st quarter 2010 Sentiment Index. "Our industry urgently needs public policies that will drive job growth in the economy. We need policies that will facilitate equity investment in real estate. And we need policies that will restart a secondary market - to help banks clear their balance sheets of toxic assets while encouraging greater lending to credit worthy borrowers, both large and small," Roundtable President and CEO Jeffrey DeBoer said. "The sense of overall gloom that prevailed one year ago has eased. Credit markets have thawed somewhat and that is obviously good. However, there is a long road to recovery ahead and policy uncertainty only makes the road more difficult to travel," DeBoer added. The Roundtable's latest Sentiment Index (now at 73, up from 63 in the previous quarter) shows an industry just beginning the process of pulling itself out from the depths of the deepest real estate downturn seen in a generation. The Overall Sentiment Index is calculated based on averages of Future and Current Indexes - all measured on a scale of 1 to 100. To reach an Overall Index of 100, for example, all survey respondents would have to answer that conditions are "much better" today (Current Conditions) compared to one year ago, and will also be "much better" 12 months from now (Future Conditions). The Sentiment Index indicates that confidence in market conditions may be on the mend, yet industry leaders remain guarded in their improved outlook. The Current Conditions Index, which measures market conditions today versus one year ago, came in at 69, a 13 point increase from last quarter's sentiment reading. The Future Conditions Index, which measures market conditions today versus one year from now, came in at 77, an increase of seven points from the 4th quarter of 2009. A common concern among the 110+ survey respondents is the impact of declining fundamentals and deterioration in NOI. As one CEO commented, "There are 20 million or more people who are underemployed or unemployed. Businesses are being very cautious. The federal government is considering raising taxes. All of this is causing uneasiness." Another executive added, "Things will be slow to recover because economic growth and jobs take time. Jobs drive fundamentals." Survey participants also noted that if interest rates are raised now to counter inflationary pressures, it would undermine the conditions needed for economic recovery. Many participants said they expect lenders to continue loan extensions to avoid forced sales, particularly for high quality assets wallowing in a distressed market. Yet with hundreds of billions of dollars of commercial real estate debt maturing annually over the next several years - and limited ability to refinance on the horizon - many respondents said the deleveraging process necessary for an economic rebound has been delayed. DeBoer noted, "The volume of commercial real estate transactions is anemic. Transaction volume is down more than 90 percent compared with 2007. The scarcity of transactions feeds on itself as value determination is made more difficult and lenders are more reluctant to extend credit. Policy actions that facilitate equity infusions, particularly from global capital sources, would help spur transaction volume and assist in deleveraging maturing debt." Perhaps the biggest reason for the positive change in sentiment this quarter is an improved outlook on capital markets. Approximately two-thirds of respondents said capital - for both debt and equity - is more accessible now compared to one year ago, during the height of the financial crisis. Of all survey respondents, 83% predicted an increased availability of debt capital in one year, while 75% said there would be an increase in available equity in one year. As the report notes, while this sentiment is a good sign for 2010, it also indicates that there is still a long way to go before market conditions can be qualified as "back to normal." Some respondents also said asset values may be close to bottoming out. The report shows 45% expect real estate asset values to increase in the next year, while 35% expect them to remain flat, and 19% predict further declines. "The free-fall in pricing has stopped," said one interviewee, adding, "Values are going to stay along the bottom through 2010." Another participant reiterated this view, saying, "In terms of valuations, we're at the 'muddle through' point, with fundamentals continuing to provide downward pressure." DeBoer and The Roundtable have been championing a multi-pronged plan to attack the liquidity crunch afflicting the markets. "Just as there is no single cause of the financial crisis, there is no single solution - no 'silver bullet' - to address the mammoth refinancing challenges in commercial real estate," said DeBoer. "As President Obama emphasized the need for job creation during his State of the Union address last week, we agree that generating sustainable jobs is a top policy priority. At the same time, we remain vigilant in ascertaining market conditions, while urging policymakers to encourage stable asset valuations, enhanced transparency and sensible underwriting practices - all key factors for the return of a reliable credit system," DeBoer added.  
The Saint Louis Front Page is owned and maintained by the Moore Design Group for the sole purpose of disseminating news and information about the Metropolitan Saint Louis area. Text or graphics may not be copied, rewritten or distributed in any manner whatsoever without written permission. For more information, contact editor@slfp.com All rights reserved world wide © 1996 - 2010 Moore Design Group. |
|
St. Louis Front Page
| |||||||
