Busy holiday coming around square in downtown Franklin
By The Tennessean-August 27, 2008
FRANKLIN — The Franklin Public Square will get a workout this Labor Day weekend.
First up, the Franklin Jazz Festival gets things rocking for the 19th year. Headlining the fundraiser for the Epilepsy Foundation Middle and West Tennessee is Creole accordionist Buckwheat Zydeco
On Saturday, the lineup is the Storm Kings at 5:15, 7 and 8:15 p.m.; Corazon at 6 p.m.; Cissy Crutcher at 7:10 p.m.; and Buckwheat Zydeco at 8:30 p.m.
On Sunday, performances include Reggie Wooten & Friends at 5:15, 7 and 8:15 p.m.; Christina Watson at 6 p.m.; Pat Coil Sextet at 7:10 p.m.; and Orquesta MaCuba at 8:30 p.m.
Gates open a 5 p.m. Admission is $5 each day. For more information, such as what you can bring onto festival grounds, visit franklinjazzfestival.com.
For early risers, Labor Day begins Monday with the pounding of hundreds of feet during the 30th running of the Franklin Classic benefiting Mercy Children's Clinic.
The 5K and 10K foot races are certified and ChampionChip timed. Also there are a 4K walk, Kids Kilometer Fun Run, music and a Kids Zone featuring inflatables, face painting, games and snacks.
Registration begins at 5:45 a.m. with the first race set for 7. The start and finish lines are all on the Public Square.
To view race maps and registration fees, visit FranklinClassic.org.
News, interests, info and tips about the Real Estate Market in Middle Tennessee. Our Focus is the Nashville area, both Williamson and Davidson County and the surrounding areas of Franklin, Brentwood, Spring Hill, Thompson's Station, Hendersonville, Leipers Fork, Belle Meade, Nolensville, the Cool Springs area and the Vanderbilt area
August 27, 2008
City of Spring Hill expects to have more than enough made up for its tax loss with retail boom
Shoppers help cities cope in economy
By Tennessean- August 27, 2008
When Kroger relocates early next year, it will take hundreds of thousands of dollars in sales tax revenues with it. The supermarket is moving less than a mile up Main Street into Thompson's Station.
That's bad news for Spring Hill. The good news is that by the time the store leaves, the city expects to have more than made up for its loss with a retail boom that includes another new Kroger and more big-box stores in The Crossings retail development.
Spring Hill Finance Director Jim Smith has been tracking the upswing in sales tax revenues since the first few businesses opened this spring: Super Target, Kohl's, Cracker Barrel and Logan's Roadhouse. Those businesses have helped the city's sales tax revenues increase 69 percent over the same months last year.
And if those stores continue to do
as well as they have, the city will bring in the $2.8 million expected in the 2008-09 budget, Smith said.
That means for each saucepan sold at Bed, Bath & Beyond, each gadget sold at Circuit City, and anything sold at any new store, shoppers will help the city build back its reserves from zero.
"It looks like we're right on target," Smith said, no pun intended.
Thompson's Station booms
Still under construction, the new "marketplace" store is starting to look like a Kroger on Thompsons Ridge Way. Kroger opted for the new location when it decided to expand but had no room to do so in the existing Campbell Station location a short way down the road.
The 125,000-square-foot store is expected to open in the first quarter of 2009. Another new location, a 66,000-square-foot store on Port Royal Road, will open by the end of 2009, said Melissa Eads, corporate spokeswoman. There's no word on a buyer yet for the Campbell Station store, but Eads said they hope to have a tenant lined up by the time they move out.
Eads said the company does not disclose the amount of anticipated sales, or sales tax revenues, it will generate. But town staff anticipates the new Kroger could boost the town's 2008-2009 budget by $102,000 over last year. Town Recorder Doug Goetsch said that amount may have to be lessened, however, depending upon when the story opens.
The Crossings is close to full
It's been half a year since Super Target opened in The Crossings. It started a lineup of roughly a half-million square feet of new retail property on the Maury County side of Spring Hill.
There are only a few lease spaces left, said Geren Moor, chief financial officer for GBT Realty, the Brentwood firm that created The Crossings. So far, business has been good.
"They don't give us their numbers, but they say they've been above their projections,' Moor said. "That helps us sell the remaining spaces. They're very marketable."
The development also includes several out parcels, not counted in that square footage. Altogether The Crossings is expected to generate roughly $175 million in annual sales, based on calculations used by the International Council of Shopping Centers. From that, $3.5 million a year will come to Spring Hill in the form of sales tax revenues.
Moor said the big box anchors in a commercial development are attractive to small businesses, which are greater in number.
"They create a lot of foot traffic, and the smaller shops tend to do well when there's more traffic coming through," he said.
A second phase, planned on the adjacent 50 acres, is expected to include a movie theater, more restaurants, hotels and more retailers.
Shoppers help rebuild savings
City leaders used a conservative estimate for sales tax revenues in the 2008-09 budget because they didn't know how much money the new stores could generate as they opened in the last half and last quarter of the fiscal year. Last year, The Crossings yielded $2,157,000 for the city. This year, the expectation is for $2.8 million.
The goal is to use money above that $2.8 million to build back the city's reserves, which were depleted last fiscal year to cover expenses.
Ideally, the city's fund balance should be 20 percent of the general fund budget, which is $11 million this year. Smith said his counterparts in other cities advised him that amount is sufficient to cover any unexpected expense.
"It will be a multi-year project," Smith said, noting that the city could save about $220,000 this year — a tenth of that $2.2 million goal. "I'd say it's certainly possible."
Building fees had long been the city's main revenue stream, but now retail is the great hope among city leaders. Spring Hill is also seeing more retail development in Campbell Station and along Port Royal Road and Saturn Parkway.
When Super Target and Kohl's opened in March, it took about a two-month turnaround for the state to collect the sales tax money and send the city its share. By May, the city noticed a $68,446 jump on the Maury side above April's receipts. It also perked up by nearly $38,000 on the Williamson side. Smith said that's a sign that more people are shopping closer to home.
"They might have slowed down their spending a bit, but it looks like they are doing their shopping here, which is good. It supports Spring Hill and it helps provide the services. Otherwise, they're helping Franklin or Columbia provide their services."
By Tennessean- August 27, 2008
When Kroger relocates early next year, it will take hundreds of thousands of dollars in sales tax revenues with it. The supermarket is moving less than a mile up Main Street into Thompson's Station.
That's bad news for Spring Hill. The good news is that by the time the store leaves, the city expects to have more than made up for its loss with a retail boom that includes another new Kroger and more big-box stores in The Crossings retail development.
Spring Hill Finance Director Jim Smith has been tracking the upswing in sales tax revenues since the first few businesses opened this spring: Super Target, Kohl's, Cracker Barrel and Logan's Roadhouse. Those businesses have helped the city's sales tax revenues increase 69 percent over the same months last year.
And if those stores continue to do
as well as they have, the city will bring in the $2.8 million expected in the 2008-09 budget, Smith said.
That means for each saucepan sold at Bed, Bath & Beyond, each gadget sold at Circuit City, and anything sold at any new store, shoppers will help the city build back its reserves from zero.
"It looks like we're right on target," Smith said, no pun intended.
Thompson's Station booms
Still under construction, the new "marketplace" store is starting to look like a Kroger on Thompsons Ridge Way. Kroger opted for the new location when it decided to expand but had no room to do so in the existing Campbell Station location a short way down the road.
The 125,000-square-foot store is expected to open in the first quarter of 2009. Another new location, a 66,000-square-foot store on Port Royal Road, will open by the end of 2009, said Melissa Eads, corporate spokeswoman. There's no word on a buyer yet for the Campbell Station store, but Eads said they hope to have a tenant lined up by the time they move out.
Eads said the company does not disclose the amount of anticipated sales, or sales tax revenues, it will generate. But town staff anticipates the new Kroger could boost the town's 2008-2009 budget by $102,000 over last year. Town Recorder Doug Goetsch said that amount may have to be lessened, however, depending upon when the story opens.
The Crossings is close to full
It's been half a year since Super Target opened in The Crossings. It started a lineup of roughly a half-million square feet of new retail property on the Maury County side of Spring Hill.
There are only a few lease spaces left, said Geren Moor, chief financial officer for GBT Realty, the Brentwood firm that created The Crossings. So far, business has been good.
"They don't give us their numbers, but they say they've been above their projections,' Moor said. "That helps us sell the remaining spaces. They're very marketable."
The development also includes several out parcels, not counted in that square footage. Altogether The Crossings is expected to generate roughly $175 million in annual sales, based on calculations used by the International Council of Shopping Centers. From that, $3.5 million a year will come to Spring Hill in the form of sales tax revenues.
Moor said the big box anchors in a commercial development are attractive to small businesses, which are greater in number.
"They create a lot of foot traffic, and the smaller shops tend to do well when there's more traffic coming through," he said.
A second phase, planned on the adjacent 50 acres, is expected to include a movie theater, more restaurants, hotels and more retailers.
Shoppers help rebuild savings
City leaders used a conservative estimate for sales tax revenues in the 2008-09 budget because they didn't know how much money the new stores could generate as they opened in the last half and last quarter of the fiscal year. Last year, The Crossings yielded $2,157,000 for the city. This year, the expectation is for $2.8 million.
The goal is to use money above that $2.8 million to build back the city's reserves, which were depleted last fiscal year to cover expenses.
Ideally, the city's fund balance should be 20 percent of the general fund budget, which is $11 million this year. Smith said his counterparts in other cities advised him that amount is sufficient to cover any unexpected expense.
"It will be a multi-year project," Smith said, noting that the city could save about $220,000 this year — a tenth of that $2.2 million goal. "I'd say it's certainly possible."
Building fees had long been the city's main revenue stream, but now retail is the great hope among city leaders. Spring Hill is also seeing more retail development in Campbell Station and along Port Royal Road and Saturn Parkway.
When Super Target and Kohl's opened in March, it took about a two-month turnaround for the state to collect the sales tax money and send the city its share. By May, the city noticed a $68,446 jump on the Maury side above April's receipts. It also perked up by nearly $38,000 on the Williamson side. Smith said that's a sign that more people are shopping closer to home.
"They might have slowed down their spending a bit, but it looks like they are doing their shopping here, which is good. It supports Spring Hill and it helps provide the services. Otherwise, they're helping Franklin or Columbia provide their services."
Nolensville community has high appeal and plans to grow
Residents, retailers, neighboring towns define booming area
By The Tennessean-August 27, 2008
To the untrained eye, the intersection of Nolensville Pike and Concord Road can easily be confused for Williamson County. And why not?
The area has higher design standards than what you find a little farther north in Davidson County. The new town homes and businesses bear the influence of Brentwood and Nolensville, though these municipalities have no control over the area.
In fact, a portion of it even has a Brentwood address, given its location within the 37027 ZIP code.
It's a thriving pocket in southeast Davidson County where young professionals such as Brian Maholic have recently discovered a person can find an affordable home while benefiting from the amenities of its more affluent neighbors.
"This part of town isn't all that bad," Maholic, 25, said. "It's really close to everything. My wife and I are both runners, and we run in Crockett Park all the time. We're in Davidson, but they want to be Brentwood."
A few years ago, this area where Williamson and Davidson counties meet was nothing more than overgrown fields and old, rundown homes and businesses.
"When I first started looking in the area, there was really not much out there except the antique stores," resident Wendy Perrotte said. "Now, it's still a little transitional, but I think for the most part it's kind of cleaning up."
She moved into the area two years ago and has seen it steadily develop to offer more restaurants, retail business and grocers.
"I have really enjoyed being able to shop without driving very far," she said.
Residential growth has kept pace. Developers, unable to put up town homes across the border in Williamson County, instead opted to build here and have found a niche, especially with a younger clientele.
Lenox Village, the large pedestrian-friendly mixed-use development just north of the county line off Nolensville Pike, is one of the most successful neo-traditional projects in Middle Tennessee. With its residential component of single-family homes, town homes and condos now well established, the retail and lifestyle components are under way.
Last year, Maholic bought a 1,600-square-foot town house in Concord Place, an impossibility in Brentwood. But with no children and quick access to interstates 24 and 65, he found it an ideal situation for he and his wife.
"Our options were really, do you want to live in Mt. Juliet? No. Spring Hill? No. Do we need that much of a home? Not really, and the town homes are really popular," he said.
Brentwood influence felt
In January, Pam Taylor moved from Florida to Cane Ridge. She shops in Brentwood and wants to see more of that community's influence bleed into her own.
The area bordering Williamson County, though not as strict as Brentwood or Nolensville, does have a higher design standard. Parker Toler, the Metro councilman representing the area, said the idea is to keep a fluid aesthetic between the borders.
"We're trying to keep the development so it matches what's in Williamson County and what's in Davidson County," he said. "Those are nice developments, where the Publix is and the new Kroger is," Toler said. "I think things will need to fit in with what's there."
He pointed out that some Williamson County residential developments, such as Annandale and Burkitt Place, extend over the county line into his district, again blurring the identity of these communities.
That creates a challenge for Brentwood and Nolensville officials, who are working to protect property values in their cities.
"I think everybody pretty much is allowed to do their own thing, and that's a difficult situation when you have three municipalities come together," Brentwood City Commissioner Betsy Crossley said. "That is really a growing area. It's close to Brentwood. It's upscale Davidson County."
She said Brentwood does have some agreements with neighboring communities that regulate what can be built, such as not having commercial in one area abut residential in another.
In Nolensville, which adopted strict design guidelines a few years ago, community leaders keep a nervous eye on what's happening just over the county line.
"We wish we had more say on it, but we don't. We have none," Nolensville Planning Commissioner Matt Happel said. "You hope that it's going to look good. I think someday it will probably blend a little bit."
Happel said the businesses and homes going up in the area sometimes use materials that aren't allowed in Nolensville because his town is looking to create a "small-town quaint" look in its future developments.
Retail thrives
This area has become a popular destination for many Williamson County residents because it offers eating and shopping options closer than they can find in their own communities. Several restaurants have opened just over the county line in southeast Nashville because Nolensville, which has seen rapid residential growth in recent years, doesn't allow liquor by the drink.
In December 2006, Bill Darsinos opened Sophie's Bistro, an upscale restaurant at 6601 Sugar Valley Drive, just off Nolensville Pike. The 85-seat restaurant appeals to patrons on both sides of the county line.
"Every month, business gets better," he said. "I get a lot of Brentwood, a lot of Franklin customers. A lot from the Lenox Village. We're a suburb of Brentwood, so our clientele is pretty affluent."
Darsinos said the immediate area around his business continues to attract younger residents with disposable income looking for more-upscale eating options.
"It's a diverse group that wants to have a nice dinner, a romantic dinner, but they don't want to drive all the way downtown, spend the money on gas," he said. "Those are the people who would go to Midtown Cafe or Sunset Grill, but instead of driving, they're coming here."
He foresees, even with the economy's slowdown, the area continuing to grow in the next two to three years.
Toler said he also expects more commercial and residential development in this area and says that's good news for residents who want to see it develop an identity beyond its proximity to Williamson County.
"We love living in the area and just wish for a little bit more 'community' type of feeling, and I think that if we were absorbed into a town, that would help us in defining the area, socially," Maholic said. "Right now we're just kind of the rest stop between Nolensville, Brentwood, Smyrna and Nashville."
Creating that feel includes adding amenities such as sidewalks along Nolensville Pike and bringing in more restaurants, he said.
"I'd definitely like some more food options," Perrotte said. "We go over to Cool Springs and Smyrna for shopping. A Home Depot or Target would be great as well as some clothing and shoe stores."
For Maholic, the developing area still provides a great first home, but in the coming years, he may consider a short move across the border into Williamson County.
"I'm really watching what's going on in Nolensville and hoping we can get in there," he said.
By The Tennessean-August 27, 2008
To the untrained eye, the intersection of Nolensville Pike and Concord Road can easily be confused for Williamson County. And why not?
The area has higher design standards than what you find a little farther north in Davidson County. The new town homes and businesses bear the influence of Brentwood and Nolensville, though these municipalities have no control over the area.
In fact, a portion of it even has a Brentwood address, given its location within the 37027 ZIP code.
It's a thriving pocket in southeast Davidson County where young professionals such as Brian Maholic have recently discovered a person can find an affordable home while benefiting from the amenities of its more affluent neighbors.
"This part of town isn't all that bad," Maholic, 25, said. "It's really close to everything. My wife and I are both runners, and we run in Crockett Park all the time. We're in Davidson, but they want to be Brentwood."
A few years ago, this area where Williamson and Davidson counties meet was nothing more than overgrown fields and old, rundown homes and businesses.
"When I first started looking in the area, there was really not much out there except the antique stores," resident Wendy Perrotte said. "Now, it's still a little transitional, but I think for the most part it's kind of cleaning up."
She moved into the area two years ago and has seen it steadily develop to offer more restaurants, retail business and grocers.
"I have really enjoyed being able to shop without driving very far," she said.
Residential growth has kept pace. Developers, unable to put up town homes across the border in Williamson County, instead opted to build here and have found a niche, especially with a younger clientele.
Lenox Village, the large pedestrian-friendly mixed-use development just north of the county line off Nolensville Pike, is one of the most successful neo-traditional projects in Middle Tennessee. With its residential component of single-family homes, town homes and condos now well established, the retail and lifestyle components are under way.
Last year, Maholic bought a 1,600-square-foot town house in Concord Place, an impossibility in Brentwood. But with no children and quick access to interstates 24 and 65, he found it an ideal situation for he and his wife.
"Our options were really, do you want to live in Mt. Juliet? No. Spring Hill? No. Do we need that much of a home? Not really, and the town homes are really popular," he said.
Brentwood influence felt
In January, Pam Taylor moved from Florida to Cane Ridge. She shops in Brentwood and wants to see more of that community's influence bleed into her own.
The area bordering Williamson County, though not as strict as Brentwood or Nolensville, does have a higher design standard. Parker Toler, the Metro councilman representing the area, said the idea is to keep a fluid aesthetic between the borders.
"We're trying to keep the development so it matches what's in Williamson County and what's in Davidson County," he said. "Those are nice developments, where the Publix is and the new Kroger is," Toler said. "I think things will need to fit in with what's there."
He pointed out that some Williamson County residential developments, such as Annandale and Burkitt Place, extend over the county line into his district, again blurring the identity of these communities.
That creates a challenge for Brentwood and Nolensville officials, who are working to protect property values in their cities.
"I think everybody pretty much is allowed to do their own thing, and that's a difficult situation when you have three municipalities come together," Brentwood City Commissioner Betsy Crossley said. "That is really a growing area. It's close to Brentwood. It's upscale Davidson County."
She said Brentwood does have some agreements with neighboring communities that regulate what can be built, such as not having commercial in one area abut residential in another.
In Nolensville, which adopted strict design guidelines a few years ago, community leaders keep a nervous eye on what's happening just over the county line.
"We wish we had more say on it, but we don't. We have none," Nolensville Planning Commissioner Matt Happel said. "You hope that it's going to look good. I think someday it will probably blend a little bit."
Happel said the businesses and homes going up in the area sometimes use materials that aren't allowed in Nolensville because his town is looking to create a "small-town quaint" look in its future developments.
Retail thrives
This area has become a popular destination for many Williamson County residents because it offers eating and shopping options closer than they can find in their own communities. Several restaurants have opened just over the county line in southeast Nashville because Nolensville, which has seen rapid residential growth in recent years, doesn't allow liquor by the drink.
In December 2006, Bill Darsinos opened Sophie's Bistro, an upscale restaurant at 6601 Sugar Valley Drive, just off Nolensville Pike. The 85-seat restaurant appeals to patrons on both sides of the county line.
"Every month, business gets better," he said. "I get a lot of Brentwood, a lot of Franklin customers. A lot from the Lenox Village. We're a suburb of Brentwood, so our clientele is pretty affluent."
Darsinos said the immediate area around his business continues to attract younger residents with disposable income looking for more-upscale eating options.
"It's a diverse group that wants to have a nice dinner, a romantic dinner, but they don't want to drive all the way downtown, spend the money on gas," he said. "Those are the people who would go to Midtown Cafe or Sunset Grill, but instead of driving, they're coming here."
He foresees, even with the economy's slowdown, the area continuing to grow in the next two to three years.
Toler said he also expects more commercial and residential development in this area and says that's good news for residents who want to see it develop an identity beyond its proximity to Williamson County.
"We love living in the area and just wish for a little bit more 'community' type of feeling, and I think that if we were absorbed into a town, that would help us in defining the area, socially," Maholic said. "Right now we're just kind of the rest stop between Nolensville, Brentwood, Smyrna and Nashville."
Creating that feel includes adding amenities such as sidewalks along Nolensville Pike and bringing in more restaurants, he said.
"I'd definitely like some more food options," Perrotte said. "We go over to Cool Springs and Smyrna for shopping. A Home Depot or Target would be great as well as some clothing and shoe stores."
For Maholic, the developing area still provides a great first home, but in the coming years, he may consider a short move across the border into Williamson County.
"I'm really watching what's going on in Nolensville and hoping we can get in there," he said.
August 13, 2008
More homeowners owe more than their homes are worth
Nashville Business Journal, Tuesday, August 12, 2008
A new report shows U.S. home values dropped nearly 10 percent in the second quarter, leaving almost one-third of homeowners who bought in the last five years "under water" on their mortgages.
"The second quarter is the sixth consecutive quarter of home value declines and we see little promise of turnaround in the short-term as the rates of decline have yet to slow and, in fact, actually accelerated in many markets," said Stan Humphries, Zillow's vice president of data and analytics,
According to the report from Zillow.com, which tracks home valuations, second-quarter prices fell 9.9 percent from last year and were 1.7 percent lower from the previous quarter. The average home value was $206,919. Zillow said the median U.S. home value has not been this low since the fourth quarter of 2004.
One in four homes sold in the past year was for a loss and foreclosed homes accounted for 50 percent of all home sales.
In the Washington area, according to Zillow, all home values fell 1.9 percent to an average of $368,177 between 2007 and 2008. Single-family home values tumbled 13.5 percent to an average of $407,348. Local owners who purchased their homes in 2006, with 10 percent down, are seeing negative equity of $15,517 or 4.7 percent , according to Zillow. The median owner equity in homes bought in 2007 is down by $717 or 0.2 percent. Homes bought this year have positive equity, on average, by $55,679 or 18.3 percent.
In the second quarter, 63.4 percent of homes in the Washington area lost value -- 42.7 percent were sold for a loss and 24.9 percent were foreclosure transactions. Year over year, 90.8 percent of area homes lost value, 29.6 percent were sold for a loss and 17.5 percent were foreclosure transactions.
Things are rosier for people who purchased their homes in 2003, with 15 percent down, before the housing market crumbled. According to Zillow, those folks have seen an increase of $117,500 in their home values, up 52 percent from the time of purchase.
Nashville Business Journal, Tuesday, August 12, 2008
A new report shows U.S. home values dropped nearly 10 percent in the second quarter, leaving almost one-third of homeowners who bought in the last five years "under water" on their mortgages.
"The second quarter is the sixth consecutive quarter of home value declines and we see little promise of turnaround in the short-term as the rates of decline have yet to slow and, in fact, actually accelerated in many markets," said Stan Humphries, Zillow's vice president of data and analytics,
According to the report from Zillow.com, which tracks home valuations, second-quarter prices fell 9.9 percent from last year and were 1.7 percent lower from the previous quarter. The average home value was $206,919. Zillow said the median U.S. home value has not been this low since the fourth quarter of 2004.
One in four homes sold in the past year was for a loss and foreclosed homes accounted for 50 percent of all home sales.
In the Washington area, according to Zillow, all home values fell 1.9 percent to an average of $368,177 between 2007 and 2008. Single-family home values tumbled 13.5 percent to an average of $407,348. Local owners who purchased their homes in 2006, with 10 percent down, are seeing negative equity of $15,517 or 4.7 percent , according to Zillow. The median owner equity in homes bought in 2007 is down by $717 or 0.2 percent. Homes bought this year have positive equity, on average, by $55,679 or 18.3 percent.
In the second quarter, 63.4 percent of homes in the Washington area lost value -- 42.7 percent were sold for a loss and 24.9 percent were foreclosure transactions. Year over year, 90.8 percent of area homes lost value, 29.6 percent were sold for a loss and 17.5 percent were foreclosure transactions.
Things are rosier for people who purchased their homes in 2003, with 15 percent down, before the housing market crumbled. According to Zillow, those folks have seen an increase of $117,500 in their home values, up 52 percent from the time of purchase.
Tennessee farm acreage up to record values
Nashville Business Journal, August 12, 2008
Tennessee cropland and pasture values rose to record levels in 2007 to $3,600 and $4,100 per acre, respectively, the highest since records began in 1997.
According to the USDA's National Agricultural Statistics Service, all Tennessee farm land and building values rose 7 percent in 2007 to an average of $3,650 per acre, up $250 per acre from 2006.
Tennessee's cropland cash rent this year is $65 per acre, compared with $67 per acre in 2007. Pasture cash rent in the state increased to $22 per acre, up $2 from 2007.
Farm real estate values in the U.S. averaged an 8.8 percent rise in 2007 to a $2,350 per acre high, up $190 more than a year earlier.
Both cropland and pasture values for 2008 are record highs nationally. Cropland values rose by 10 percent to $2,970 per acre, up from the previous high of $2,690 in 2007. Pasture value rose by 6 percent to $1,230 per acre.
Strong commodity prices and farm programs, outside investments, favorable interest rates, and tax incentives continue to be the factors that drive farm real estate values to record levels. Livestock prices, recreational use, and urban development remain the predominant influences that increase pasture land values.
The highest farm real estate values remained in the Northeast region, where development pressure continued to push the average value to $5,080 per acre. The Northern Plains region had the lowest farm real estate value, at $1,110 per acre, up 15.5 percent from the previous year. In the Corn Belt region, cropland values rose 14.8 percent, to $4,260 per acre.
The Southern Plains region increased 12 percent from the previous year, to $1,490 per acre. The Northern Plains region also had the highest average percentage increase in pasture value, 19.7 percent above 2007. In the Southern Plains and Mountain regions, which account for more than half of the pasture in the U.S., pasture values per acre increased 17.1 percent and 6.4 percent, respectively.
Nashville Business Journal, August 12, 2008
Tennessee cropland and pasture values rose to record levels in 2007 to $3,600 and $4,100 per acre, respectively, the highest since records began in 1997.
According to the USDA's National Agricultural Statistics Service, all Tennessee farm land and building values rose 7 percent in 2007 to an average of $3,650 per acre, up $250 per acre from 2006.
Tennessee's cropland cash rent this year is $65 per acre, compared with $67 per acre in 2007. Pasture cash rent in the state increased to $22 per acre, up $2 from 2007.
Farm real estate values in the U.S. averaged an 8.8 percent rise in 2007 to a $2,350 per acre high, up $190 more than a year earlier.
Both cropland and pasture values for 2008 are record highs nationally. Cropland values rose by 10 percent to $2,970 per acre, up from the previous high of $2,690 in 2007. Pasture value rose by 6 percent to $1,230 per acre.
Strong commodity prices and farm programs, outside investments, favorable interest rates, and tax incentives continue to be the factors that drive farm real estate values to record levels. Livestock prices, recreational use, and urban development remain the predominant influences that increase pasture land values.
The highest farm real estate values remained in the Northeast region, where development pressure continued to push the average value to $5,080 per acre. The Northern Plains region had the lowest farm real estate value, at $1,110 per acre, up 15.5 percent from the previous year. In the Corn Belt region, cropland values rose 14.8 percent, to $4,260 per acre.
The Southern Plains region increased 12 percent from the previous year, to $1,490 per acre. The Northern Plains region also had the highest average percentage increase in pasture value, 19.7 percent above 2007. In the Southern Plains and Mountain regions, which account for more than half of the pasture in the U.S., pasture values per acre increased 17.1 percent and 6.4 percent, respectively.
Historic homes join green parade
Owners install solar panels, soy insulation to lower costs, impact
By KEVIN WALTERS • August 13, 2008
FRANKLIN —James Smith can trace the transformation of his Dutch Colonial office into a solar-powered showpiece back to one source: a broken water pipe.
One Monday morning last July, James and Lisa Smith walked into the 1920s-era home on Fifth Avenue they use as an office for their human resources business to find a pipe had come loose under an upstairs sink.
A weekend of pouring water had ruined the old home's plaster walls and framing. That meant big changes ahead for the office and the Smiths.
"It pretty much destroyed the house," James Smith said. "We talked about it. We said, 'Hey, here's an opportunity.' You take your lemons and make your lemonade."
The Smiths are finishing installation of new solar panels and other amenities they say will dramatically reduce the office's energy bills and decrease the impact of the house on the environment.
"Oil has an economic stranglehold on us," Smith said. "Anything we can do to help reduce carbon emissions and greenhouse gases, that's also something we were interested in doing."
Their project comes as property owners across the country are seeking new ways to reduce their energy bills and their impact on environmental resources such as coal and oil.
Neighbors share mind-set
While new buildings — such as the city's Columbia Avenue police headquarters under construction — will feature green roofs, retrofitting offers a way to keep historic buildings in step with newer, energy-saving features.
"The greenest building is one that already exists," said Shanon Wasielewski, interim city planning director. "It doesn't make sense to throw out existing historic materials for something new in the name of sustainability."
Yet existing buildings produce about 70 percent of emissions, downtown building owner Karen Cochran said.
Cochran, who owns the white Five Points building that is home to Starbucks, is busy trying to alleviate the impact of her building on the environment.
Cochran's property, as it happens, is just down Fifth Avenue from the Smiths, though both owners were working independent of each other. As it happens, both buildings are listed in the National Register of Historic Places.
Wasielewksi said she was not aware of other buildings in the city's historic districts that have undergone "green" conversion.
Last year, Cochran bought about $1,800 worth of "carbon offsets" for the building from an Austin, Texas, company, with the money largely going to a wind energy project in the Midwest.
Now, Cochran is planning even more ambitious measures, though they haven't been finalized.
She's awaiting approval of a grant from the state Department of Economic and Community Development to purchase a photovoltaic solar electrical system for the roof of the building.
Like the Smiths, she received recent approval from city historic zoning commissioners to install solar panels on the building.
The system would make the building more energy efficient and the excess electricity produced at the building could be resold. However, the building's trademark electric "Noel" sign and its holiday lights would stay in place.
Cochran, who credited the film An Inconvenient Truth with inspiring her, believes the steps she takes today for the building will affect future generations.
"I keep asking myself, 'What is it going to cost if I don't do anything? What will it cost if we, as a community, or as a country don't do anything?' " Cochran wrote in an e-mail for this story. "I am willing to spend money now, if I know I can save money in the long run, build value and off-set the high prices of utilities, while doing the right thing for my grandkids."
Investment to see return
As a small-business owner, James Smith was also mindful of the costs of updating his office.
"I wanted to go green, but I didn't want to go into the red doing it," Smith said. "I think that's the way more Americans feel about it."
After researching the project, Smith found that converting his office from a traditional electric building to a green office powered by non-carbon sources such as solar and methane power and wind would mean a dramatic reduction in his power bills.
When completed, Smith estimates his energy bills will be reduced from an average of $250-$350 a month to $25-$50 a month.
His renovation includes a new heating and air system that will remove "99.98 percent" of the building's air pollutants, not using paints with harmful volatile organic compounds and using soy-based foam insulation.
Owners install solar panels, soy insulation to lower costs, impact
By KEVIN WALTERS • August 13, 2008
FRANKLIN —James Smith can trace the transformation of his Dutch Colonial office into a solar-powered showpiece back to one source: a broken water pipe.
One Monday morning last July, James and Lisa Smith walked into the 1920s-era home on Fifth Avenue they use as an office for their human resources business to find a pipe had come loose under an upstairs sink.
A weekend of pouring water had ruined the old home's plaster walls and framing. That meant big changes ahead for the office and the Smiths.
"It pretty much destroyed the house," James Smith said. "We talked about it. We said, 'Hey, here's an opportunity.' You take your lemons and make your lemonade."
The Smiths are finishing installation of new solar panels and other amenities they say will dramatically reduce the office's energy bills and decrease the impact of the house on the environment.
"Oil has an economic stranglehold on us," Smith said. "Anything we can do to help reduce carbon emissions and greenhouse gases, that's also something we were interested in doing."
Their project comes as property owners across the country are seeking new ways to reduce their energy bills and their impact on environmental resources such as coal and oil.
Neighbors share mind-set
While new buildings — such as the city's Columbia Avenue police headquarters under construction — will feature green roofs, retrofitting offers a way to keep historic buildings in step with newer, energy-saving features.
"The greenest building is one that already exists," said Shanon Wasielewski, interim city planning director. "It doesn't make sense to throw out existing historic materials for something new in the name of sustainability."
Yet existing buildings produce about 70 percent of emissions, downtown building owner Karen Cochran said.
Cochran, who owns the white Five Points building that is home to Starbucks, is busy trying to alleviate the impact of her building on the environment.
Cochran's property, as it happens, is just down Fifth Avenue from the Smiths, though both owners were working independent of each other. As it happens, both buildings are listed in the National Register of Historic Places.
Wasielewksi said she was not aware of other buildings in the city's historic districts that have undergone "green" conversion.
Last year, Cochran bought about $1,800 worth of "carbon offsets" for the building from an Austin, Texas, company, with the money largely going to a wind energy project in the Midwest.
Now, Cochran is planning even more ambitious measures, though they haven't been finalized.
She's awaiting approval of a grant from the state Department of Economic and Community Development to purchase a photovoltaic solar electrical system for the roof of the building.
Like the Smiths, she received recent approval from city historic zoning commissioners to install solar panels on the building.
The system would make the building more energy efficient and the excess electricity produced at the building could be resold. However, the building's trademark electric "Noel" sign and its holiday lights would stay in place.
Cochran, who credited the film An Inconvenient Truth with inspiring her, believes the steps she takes today for the building will affect future generations.
"I keep asking myself, 'What is it going to cost if I don't do anything? What will it cost if we, as a community, or as a country don't do anything?' " Cochran wrote in an e-mail for this story. "I am willing to spend money now, if I know I can save money in the long run, build value and off-set the high prices of utilities, while doing the right thing for my grandkids."
Investment to see return
As a small-business owner, James Smith was also mindful of the costs of updating his office.
"I wanted to go green, but I didn't want to go into the red doing it," Smith said. "I think that's the way more Americans feel about it."
After researching the project, Smith found that converting his office from a traditional electric building to a green office powered by non-carbon sources such as solar and methane power and wind would mean a dramatic reduction in his power bills.
When completed, Smith estimates his energy bills will be reduced from an average of $250-$350 a month to $25-$50 a month.
His renovation includes a new heating and air system that will remove "99.98 percent" of the building's air pollutants, not using paints with harmful volatile organic compounds and using soy-based foam insulation.
August 2, 2008
Do's and don'ts of real estate investment partnerships
• Williamson A.M. news services • August 1, 2008
Partnering with others on a real estate investment is a great way to create new opportunities.
However, while partnering in real estate investments can be a financial and lifestyle boon, there are many nuances one must understand before taking the real estate partnership plunge.
Below, Robert Jenson, CEO of The Jenson Group, sheds light on some do's and don'ts of real estate joint ventures.
Do put everything in writing
Don't let a miscommunication cost you a relationship. Purchasing joint property can be an exciting time, but it is also imperative to document all deal terms, arrangements and agreements.
Mutual understandings that are clear today may become murky years down the road, so thwart potential conflicts by writing all plans out in advance.
Do plan ahead
While cliché, it's true: fail to plan, plan to fail.
For a shared property, even before the deal is done buyers should map out a yearly property usage calendar in advance along with schedules for cleaning service, payment of utility and other bills and the like to ensure everyone will be in agreement before being locked into a mortgage.
For investment properties, this would also include when to pull money out to purchase another, when to sell and other such concerns.
Do anticipate challenges, obstacles
Might you have to evict a tenant? Is your vacation property in a declining market? Is your partner no longer able to make their share of the mortgage payment?
Plan for worst-case scenarios in advance and have contingencies in place . . . or, at least, considered among all parties involved.
Do create an exit strategy
How will the group decide when it's time to sell the joint venture property?
Will there be an option for one partner to buy the other out and, if so, how exactly will that work?
Planning the property sale is equally as important as planning for its purchase.
Put all options on the table — and in writing — before signing on the dotted line.
Do stay mindful of taxes
It's wise to treat the property and partnership at large like a small business, with monthly Profit and Loss statements.
Who will take advantage of the write-offs that property can provide?
Will this be split 50/50 or other arrangement?
Meet with your CPA before the purchasing to determine the tax and other fiscal implications of the purchase.
Don't attempt to execute the deal among yourselves
Purchasing property is a complicated financial transaction under normal circumstances, and a joint ownership situation only adds to that complexity. A buyer's real estate agent can appropriately structure the price and terms and otherwise save the group time, hassles and money in the process. It's also advisable to hire an attorney to legally structure the partnership, perhaps by establishing a LLC that, in addition to providing liability protection, will also provide taxation and other benefits for the co-owners.
Don't rest on the laurels of the relationship
Because you know and perhaps even love your partner(s), don't be lulled into a false sense of security — treat the transaction like the serious business deal that it is. It's wise to work through worst-case scenarios in advance to avoid infighting should an ominous situation come to pass.
Don't play the blame game
Once the ink is dry and escrow has closed, your partnership is official for better or for worse. Now it's time to function as a team, particularly when the going gets tough. Experiencing some problems with your tenant? Is your vacation home a money pit? Rather than blaming and pointing fingers, remember you're all working toward the same goal and that, ultimately, everyone wants to get the problem resolved. Be receptive to other ideas, and remember you're immersed in a democracy, not a dictatorship.
Don't let your partner slide
Is your partner not holding up to their end of the deal? Or are you just doing far more work on the yard or home improvements than you had agreed to . . . in writing? Are they not paying bills or covering other debts?
Rather than getting angry and argumentative, simply pull out the documentation you (hopefully) put in place at the onset to remind the partner of his or her obligations. If the problems persist despite your best attempts, remember that your credit and financial future is on the line.
Your last resort, an unfortunate recourse, would be to take the matter up in a court of law.
• Williamson A.M. news services • August 1, 2008
Partnering with others on a real estate investment is a great way to create new opportunities.
However, while partnering in real estate investments can be a financial and lifestyle boon, there are many nuances one must understand before taking the real estate partnership plunge.
Below, Robert Jenson, CEO of The Jenson Group, sheds light on some do's and don'ts of real estate joint ventures.
Do put everything in writing
Don't let a miscommunication cost you a relationship. Purchasing joint property can be an exciting time, but it is also imperative to document all deal terms, arrangements and agreements.
Mutual understandings that are clear today may become murky years down the road, so thwart potential conflicts by writing all plans out in advance.
Do plan ahead
While cliché, it's true: fail to plan, plan to fail.
For a shared property, even before the deal is done buyers should map out a yearly property usage calendar in advance along with schedules for cleaning service, payment of utility and other bills and the like to ensure everyone will be in agreement before being locked into a mortgage.
For investment properties, this would also include when to pull money out to purchase another, when to sell and other such concerns.
Do anticipate challenges, obstacles
Might you have to evict a tenant? Is your vacation property in a declining market? Is your partner no longer able to make their share of the mortgage payment?
Plan for worst-case scenarios in advance and have contingencies in place . . . or, at least, considered among all parties involved.
Do create an exit strategy
How will the group decide when it's time to sell the joint venture property?
Will there be an option for one partner to buy the other out and, if so, how exactly will that work?
Planning the property sale is equally as important as planning for its purchase.
Put all options on the table — and in writing — before signing on the dotted line.
Do stay mindful of taxes
It's wise to treat the property and partnership at large like a small business, with monthly Profit and Loss statements.
Who will take advantage of the write-offs that property can provide?
Will this be split 50/50 or other arrangement?
Meet with your CPA before the purchasing to determine the tax and other fiscal implications of the purchase.
Don't attempt to execute the deal among yourselves
Purchasing property is a complicated financial transaction under normal circumstances, and a joint ownership situation only adds to that complexity. A buyer's real estate agent can appropriately structure the price and terms and otherwise save the group time, hassles and money in the process. It's also advisable to hire an attorney to legally structure the partnership, perhaps by establishing a LLC that, in addition to providing liability protection, will also provide taxation and other benefits for the co-owners.
Don't rest on the laurels of the relationship
Because you know and perhaps even love your partner(s), don't be lulled into a false sense of security — treat the transaction like the serious business deal that it is. It's wise to work through worst-case scenarios in advance to avoid infighting should an ominous situation come to pass.
Don't play the blame game
Once the ink is dry and escrow has closed, your partnership is official for better or for worse. Now it's time to function as a team, particularly when the going gets tough. Experiencing some problems with your tenant? Is your vacation home a money pit? Rather than blaming and pointing fingers, remember you're all working toward the same goal and that, ultimately, everyone wants to get the problem resolved. Be receptive to other ideas, and remember you're immersed in a democracy, not a dictatorship.
Don't let your partner slide
Is your partner not holding up to their end of the deal? Or are you just doing far more work on the yard or home improvements than you had agreed to . . . in writing? Are they not paying bills or covering other debts?
Rather than getting angry and argumentative, simply pull out the documentation you (hopefully) put in place at the onset to remind the partner of his or her obligations. If the problems persist despite your best attempts, remember that your credit and financial future is on the line.
Your last resort, an unfortunate recourse, would be to take the matter up in a court of law.
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