Gov. DeSantis inaugurated for second term, Florida's own migrant crisis, brace for higher electric bills as costs rise, and more...
January 6, 2023 — This Week's Top Stories in Florida
Welcome to this week’s edition of Floridian Today, a newsletter about all things Florida — from politics, business, real estate, and climate. Reporting from the Sunshine State, these are the most important stories you need to know. To never miss an update, subscribe here:
Here’s the latest from Florida…
Gov. Ron DeSantis inaugurated for second term, hailing Florida as a “promised land of sanity”
Ron DeSantis was inaugurated for a second term as Florida’s governor on Tuesday, further positioning himself as a national leader and a likely Republican presidential candidate in 2024. In his 15-minute inaugural address on the steps of the Historic Capitol, Gov. DeSantis addressed national issues like immigration, crime, education, and inflation, promoting his administration as the guard against Democratic policies and a “woke” agenda. "The policies pursued by these states have sparked a mass exodus of productive Americans from these jurisdictions, with Florida serving as the most desired destination, a promised land of sanity," DeSantis said as he drew a contrast between Florida and other states across the country. His messaging sounded much like his reelection campaign that proved successful, branding Florida as a bastion of freedom and touting his conservative record that has become well-known nationally.
DeSantis, a once relatively unknown three-term congressman on Florida’s East Coast, surged to national prominence during the COVID-19 pandemic, in which the Republican governor rejected imposing restrictions like mask mandates, stay-at-home orders, and vaccination requirements. Gov. DeSantis has since elevated his profile and captured headlines by being outspoken against illegal immigration, enacting legislation aimed at restricting conversations of sexual orientation and gender identity in grades K-3, tightening abortion rights, and criticizing President Joe Biden’s policies. His controversial style was furthered by cracking down on alleged election crimes, engaging in a fight with The Walt Disney Company, sending charter flights of migrants from the southern border to the exclusive enclave of Martha’s Island, and allowing parents to sue school districts that teach critical race theory. As governor, DeSantis has also tread his own path over his predecessors by getting involved in local politics, endorsing candidates for school boards, and taking a direct role in redrawing congressional maps that helped shape the electoral balance of the state. His policies and unapologetic stance on contentious issues make the two-term governor well-poised to take on former President Donald Trump in a 2024 White House bid, despite being silent on his presidential ambitions so far. He spent much of the last election cycle boosting his name recognition, traveling the country to fundraise and campaign for other Republican candidates. In his second term, Gov. DeSantis plans to grant additional tax cuts to families, expand gun rights with a constitutional carry law, add further restrictions on abortions, and take on teacher unions. In what could be DeSantis’ final two years as the state’s chief executive, he will likely put his entire agenda on the table.
DeSantis defeated his gubernatorial challenger Charlie Crist, a former Republican governor-turned-Democratic congressman, in a landslide victory in November, winning reelection with a margin of more than 19 percent.
DeSantis’ inauguration speech leads to a celebratory evening inaugural ball
In his fiery inaugural address that kicked off his second-term, Florida Governor Ron DeSantis portrayed himself as a national leader well-positioned to make a (likely) presidential bid with a focus on the woes of the federal government and Democratic-run states. The Republican governor painted a contrast between the policies and politics of the federal government and progressive states with the image of Florida as “a citadel for freedom,” “where ‘woke’ goes to die.” DeSantis touted Florida as an example for the country while criticizing the "floundering federal establishment in Washington D.C.," before describing the Biden administration’s failure on tackling inflation, draconian COVID-19 measures, and the escalating migrant crisis at the U.S.-Mexico border. Americans are "pessimistic about the country's future," DeSantis said in his inauguration speech on Tuesday. "Florida is proof positive that we the people are not destined for failure. Decline is a choice. Success is attainable, and freedom is worth fighting for.” Gov. DeSantis touted Florida’s net-migration rate, which was the highest in 2022, and the state’s ability to attract new residents from across the nation, including from blue states with liberal ideologies. He rebuked these states as having "embraced faddish ideology" and liberal activism, such as criminal justice reforms that "coddled criminals" and "medical authoritarianism in the guise of pandemic mandates and restrictions." "The policies pursued by the states have sparked a mass exodus of productive Americans from these jurisdictions, with Florida serving as the most desired destination, a promised land of sanity," DeSantis touted in front of more than 3,000 attendees. The public event was part of two days of inauguration festivities, with reports indicating that some in the audience paid between $50,000 to $1 million to attend. The speech was preceded by Gov. DeSantis taking the Oath of Office, which came after Lieutenant Governor Jeanette Nuñez, Chief Financial Officer Jimmy Patronis, Commissioner of Agriculture-Elect Wilton Simpson, and Attorney General Ashley Moody, were all sworn-in.
Tuesday’s swearing-in ceremony of Governor Ron DeSantis’ second-term was followed by a dinner at Florida State University on Monday evening that was catered by Carbone, a popular New York City eatery that recently opened a Miami Beach location. The dinner and candlelight cocktail hour officially commenced the inauguration festivities and featured a menu that was influenced by the governor and first lady’s Italian heritage. On Tuesday evening at 6:00 PM, nearly 4,000 donors and supporters donning ballgowns and tuxedos descended on the Donald L. Tucker Civic Center in Tallahassee, home to FSU’s basketball team, for the Republican governor’s inaugural ball. The arena was transformed into a extravagant celebration, featuring colored lights, hors d’oeuvres, photo stations, and a stage that featured lead vocalists and a brass band playing a variety of hits. Gov. DeSantis appeared on stage with First Lady Casey DeSantis and children to Van Zant’s “Sweet Florida” playing through the venue’s speakers. The 2022 song was written for the governor, highlighting his record and efforts to keep Florida free during the COVID-19 pandemic. The song was featured in pro-DeSantis election ads during his re-election campaign. The couple then danced to “Fly Me to the Moon” by Frank Sinatra. The event was sponsored by major corporations including Walmart, CVS Health, Walgreens, the Boeing Company, Florida Power & Light, Lockheed Martin, Humana, Altria, the Seminole Tribe of Florida, among others.
Florida’s own migrant crisis, DeSantis activates National Guard
This week saw more than 600 Cuban and Haitian migrants descend on the Florida Keys via small boats in just a matter of days, with local authorities declaring the situation as a “crisis.” The Miami Sector of U.S. Customs and Border Protection report a 400% increase in migrant encounters since October, including 26 human smuggling events intercepted in a five-day period. The Florida Keys and portions of South Florida have witnessed an influx of migrant landings or attempted landings that have escalated the humanitarian crisis and compelled Gov. DeSantis to activate the Florida National Guard in response. The governor’s executive order also directs state law enforcement agencies to respond to the Keys to aid local officials with the influx of illegal migrants. In a statement announcing the executive order, DeSantis criticized President Joe Biden and the federal government’s immigration policies as worsening the crisis. “As the negative impacts of Biden’s lawless immigration policies continue unabated, the burden of the Biden administration’s failure falls on local law enforcement who lack the resources to deal with the crisis,” said Gov. DeSantis. The Dry Tortugas National Park, located about 70 miles west of the Keys, was forced to temporarily close after more than 400 migrants overwhelmed the island and the U.S. Coast Guard had to coordinate their removal and transfer to Key West. Over 4,400 mostly Cuban migrants, and some Haitians, have arrived in Florida via sea since August, with almost 8,000 intercepted by authorities, up nearly 300% from the 2021-22 fiscal year. Cuba has experienced the largest mass exodus of citizens depart for the U.S. since the Castro revolution in the 1950s. The flood of migrants has been spurred by increased political persecution by the communist government, economic turmoil, a growing food shortage, and climbing inflation. Meanwhile, Haiti is seeing a surge of its own due to worsening conditions that include poverty, gang violence, and political upheaval.
Floridians to pay higher electric bills as utility costs rise
Amid rising expenses in a tightened economy, Floridians are expected to begin seeing higher electric bills in 2023. In December, the Florida Public Service Commission approved a request that will allow Duke Energy Florida, Tampa Electric Co. (TECO), Florida Power & Light (FPL), and Florida Public Utilities Co. to raise electric rates for their customers beginning in January. State regulators approved the petition by power companies due to the rise of natural gas costs incurred by utilities and the volatility in fuel prices. The average price increase will be roughly $18 a month, according to estimates. The electric bills charged to homeowners and businesses are determined by expenses, like base rates, fuel costs, and other charges, with the Public Service Commission deciding every year to consider what costs will be passed on to consumers. Utilities are also expected to return to the Commission this month for approval to recoup losses from steep fuel costs faced in 2022, which crossed $2 billion for FPL and $1 billion for Duke Energy. If approved, the proposed recovery plan will levy additional charges on consumers over a protracted time frame so electric companies can recoup their higher-than-expected natural gas costs. Florida’s utility companies rely heavily upon natural gas to generate electricity and conditions domestically and abroad in the last year saw those prices double. To emphasize the industry’s heavy dependency on natural gas, TECO, which services more than 800,000 customers in the Tampa Bay area, expects to generate 84% of its electricity using the fuel source. In 2020, natural gas fueled about 75% of total electricity generation in the state.
State exceeds revenue expectations
A year-end report showed the state’s general revenue tax collections were 14.1%, or $447.2 million, higher than expected in November. For the month, Florida collected $3.625 billion in general revenue, well exceeding the projection issued months prior, according to the Legislature’s Office of Economic & Demographic Research. Sales tax collections – the overwhelming source of the state’s general revenue – posted strong numbers by beating estimates by $412.1 million. The better-than-expected results point to Hurricane Ian recovery and rebuilding efforts in Southwest Florida as economic activity gradually returns. Inflation has also boosted sales tax collections due to the higher prices, but it is generally a short-term effect as consumers revert to spending more on non-taxable essential goods like food and less on discretionary taxable items. Documentary-stamp tax collections on real estate transactions were well-below November projections by 23.9%, or $32.8 million, as historically-high interest rates depress home sales by more than 38% year-over-year.
Toll relief program begins for Florida drivers
The state’s toll relief program began this week at the start of the new year and aims to provide cost savings to Florida motorists who frequently travel toll roads. Beginning January 1 through 2023, drivers with 35 or more electronic toll transactions each month will receive credits back to their SunPass account as reimbursement, in which Floridians are eligible to earn 50% back on the costs of tolls each month as credits. The relief program was passed unanimously by the State Legislature in December’s special session with $500 million set aside to administer the program. Senate Bill 6A was subsequently signed by Gov. DeSantis. 1.2 million toll commuters are estimated to benefit with the average driver expected to save $400 over the year. The relief program applies to all state toll facilities that accept electronic payments and is eligible only for two-axle vehicles.
Hurricane Ian federal aid crosses $4B in relief
Florida has received over $4.4 billion in federal aid following Hurricane Ian’s devastating landfall in the southwestern region of the state three months ago. The billions in federal assistance come via grants, disaster loans, and flood insurance payments directed to the state and households impacted by the storm. As of January 3, Federal Emergency Management Agency (FEMA) reported that $859 million was provided to homes impacted by the storm in 26 counties. Another $503 million was provided by FEMA to state authorities for emergency response. $1.37 billion was also dolled out by the U.S. Small Business Administration in low-interest disaster loans to small business owners, homeowners, and renters to boost their recovery. Additionally, the National Flood Insurance Program has paid out $1.72 billion to policyholders so far after receiving more than 45,500 flood insurance claims. The total amount of financial assistance is steadily climbing as applications and claims continue being accepted. FEMA reports that they have made contact with hundreds of thousands of survivors with visits made to 352,000 homes and over 256,000 home inspections to applicants for federal disaster assistance.
The dangers of Florida’s yearly sugarcane burning
Every year, from October to May, nearly 8,000 fires across South Florida are set ablaze across nearly 400,000 acres of agricultural land that grows sugarcane crops. In 2022, pre-harvest sugarcane burning season, which is authorized by the Department of Agriculture, began at the start of “Florida Climate Week” on October 3, perhaps unintentional irony considering the serious impact of the burns on human and environmental health. It is common practice for farmers to burn thousands of acres of sugarcane crops yearly due to dried leaves left behind by the harvest that slows down future crop growth and requires arduous processing that is costly. Farmers and the commercial sugar industry in Florida resort to burning their vast sugarcane fields before harvest to remove the unused outer leaves of the plant to allow only the sugar-bearing stalk behind. As a result of these burns, toxic smoke and ash fills the atmosphere in and around the Everglades Agricultural Area, comprising the surrounding land of Lake Okeechobee in western Palm Beach County. Of course, this has created negative consequences in furthering climate change, but also creating pollution that has harmed the health of sugar workers and South Florida residents, including mostly minority and impoverished communities. A study conducted by Florida State University and published in August finds that two to three people in South Florida die prematurely every year as a result of their exposure to carcinogenic sugarcane burns. Others that reside in western Palm Beach County, including the poverty-stricken city of Belle Glade, disproportionately suffer from respiratory distress, cardiovascular disease, and a higher risk of cancer than their fellow Floridians.
Many decades have passed with no legislative action taken to abandoned the permitted practice of burns despite the well-documented hazards. Louisiana and even Brazil, the latter which produces roughly 20 times more cane sugar than the U.S., have outlawed the harmful pre-harvesting burns in favor of more sustainable, smoke-free green harvesting. This season’s state-approved burns have moved forward in the wake of the scientific findings published by FSU, in which the sugar industry has criticized as being “meritless” and “biased.” Similar studies have been conducted abroad that have linked sugarcane fires to increased greenhouse gas emissions. While the sugarcane industry and farmers defend the practice of burns as saving jobs, residents are turning to local and federal officials for help as the skies cloud over with smoke and fine particles from the fires miles away. They are asking Palm Beach County Commissioners to utilize its AlertPBC text message and calling system to warn residents of the risks of authorized sugarcane burns in their proximity. Congresswomen Debbie Wasserman Schultz and Lois Frankel have called for additional studies on the pollution creased by the fires and increase air monitoring, but few officials are calling for the practice to come to an end, emphasizing the power and influence of the sugar industry in Florida politics. Former Agriculture Commissioner Nikki Fried received more than $500,000 in campaign contributions from political action committees largely funded by big sugar corporations and did little to rein in the industry during her tenure. The same is true for incoming Ag Commissioner Wilton Simpson, having been the beneficiary of direct funding by sugar companies as well as industry-backed PACs. Simpson also campaigned on his support for the Right to Farm Act which would block lawsuits stemming from exposure to fine particulate pollution from agricultural fires. However, there is hope for residents of the Glades as revisions are set to be made to Clean Air Act standards that could tighten air quality restrictions. Congress will also have the opportunity to encourage environmentally-friendly sugarcane harvesting techniques when the federal Farm Bill is up for its five-year reauthorization this year.
Tampa Bay’s strong year for commercial real estate sales, totaling billions of dollars
Florida was a top spot for Americans looking to move in 2022, and it’s likely that trend will continue even as demand levels off. Beyond the residential real estate market, the past year was also hot for commercial properties and ended the year strong, especially in South Florida and Tampa Bay which saw record transactions and vacancy rates fall. The 20 highest-grossing sales in three counties that surround Tampa combined for a total of $2 billion, with several transactions exceeding $100 million, according to the Tampa Bay Times. Previously, commercial real estate sales in Tampa Bay never, or very infrequently, crossed that mark, even just within the last decade. The population growth, strong job market, low taxes, business-friendly policies, and relative affordability that continues to draw people from across the country has attracted investors looking to profit off the high demand. Sales volume slowed by the third quarter of 2022 as interest rates climbed, but investors remain optimistic about the market outlook as property values increase.
Here are Tampa Bay’s top five largest commercial real estate transactions in 2022:
Novel Midtown - $236.5M
The 390-unit apartment complex is located within Tampa’s $1 billion Midtown mixed-used development and sold one year after its grand opening.
Sirata Beach Resort - $207M
Located in St. Pete Beach, this 13-acre beach resort featuring 382 rooms broke the record for the most expensive hotel sold in Pinellas County when it sold in December 2022. The resort was previously purchased for $108.2 million in 2017.
Nine15 - $184M
This 23-story, 362-unit residential building in downtown Tampa opened in 2017 and offers views of the Hillsborough River and is within walking distance to the Straz Center and Curtis Hixon Waterfront Park. The last owner purchased the property for $120 million in 2020.
4. Wyndham Grand Clearwater Beach - $141M
The six-year-old resort is the largest development ever built on Clearwater Beach at 750,000 square feet, with two 15-story towers, a 343-room hotel, and 22,000 square feet of event space.
5. The Delmar - $132.8M
The 689-unit waterfront apartment complex in South Tampa was purchased in June and is poised for a significant renovation that also aims to bolster residential amenities.
Controversial plan to build 1,000 luxury homes in Palm Beach County in jeopardy
A plan to develop 1,000 upscale homes in Palm Beach County’s Agricultural Reserve has generated heated debate among elected officials, developers, and environmentalists since first being proposed in 2021. However, the proposal by homebuilder GL Homes is now in doubt of moving forward after November’s election that resulted in the loss of two county commissioners who backed the project. Their replacements – Commissioner Marci Woodard and Sara Baxter – have said publicly they do not support the housing plan. GL Homes will go before the County Commission in May for approval, which looks increasingly unlikely. The controversial plan would involve GL Homes swapping 1,600 acres in Loxahatchee to Palm Beach County for the rights to build 1,000 luxury homes in the 21,000-acre Agricultural Reserve owned by the county. Another 277 homes would be set aside for affordable housing and GL Homes agreed to construct a 750-acre above-ground reservoir to aid in water storage and treatment to sweeten the deal. According to Palm Beach County’s Comprehensive Plan, the Reserve exists to “reserve unique farmland and wetlands in order to enhance agricultural activity, environmental and water resources, and open space.” Additionally, uses of the land would be limited for the purposes of “agriculture, conservation, low-density residential development.” The County Commission gave preliminary approval to the land swap in a narrow 4-3 vote last February, and a postponement granted in August will see the finalized proposal before Commissioners in May. The matter raises land-preservation concerns between developers and environmentalists, especially as the county faces a housing shortage amid increasing demand from new residents. Developers see the Ag Reserve’s farmland as an opportune space to build additional houses. Environmentalists have opposed the land exchange for the destruction and over-development of the area, which has created traffic issues on nearby roads. Palm Beach County staff and the Palm Beach County Planning Commission have both recommended the proposed housing plan be denied.
Tampa Bay’s highest-paid CEOs
The Tampa Bay area is home to 20 corporate headquarters, including five that appear on the Fortune 500 list and combine to employ a workforce of more than 600,000 people. And while the region’s largest companies saw significant challenges since the onset of the COVID-19 pandemic and many underwent reorganization, the executives leading those corporations ended 2022 with sizeable compensation packages. As reported by the Tampa Bay Times, the executives of Tampa Bay’s 20 largest companies are all men and received total pay between $3 million and $21.5 million for the year. Based on 2021 figures, the combined base salary of these business leaders is $17.8 million, but when adding in all the other compensation (e.g. stock awards, option awards, bonus incentives, etc.), that sum grows to $152.3 million.
Here’s a look at Tampa Bay’s five highest-paid CEOs…
L. Neil Hunn, Roper Technologies: $21,557,738 (total pay)
Mark Mondello, Jabil: $16,435,268 (total pay)
Paul Reilly, Raymond James Financial: $13,901,046 (total pay)
James O’Rourke, Mosaic Co.: $12,297,011 (total pay)
Rich Hume, TD Synnex (formerly Tech Data): $9,529,362 (total pay)
The CEO of Lakeland-based Publix Super Markets, Inc., Todd Jones, received total pay of $3,433,824, listed at No. 19 on the list. David Deno, the CEO of Bloomin’ Brands, another notable Tampa Bay business and the parent company of Outback Steakhouse, Bonefish Grill, Carrabba’s, and Fleming’s Prime Steakhouse and Wine Bar, earned a total salary package of $7,518,278 – the eighth largest compensation in the region.
Central Florida tourism rebounds in 2022, boosting tax revenue by 46%
Tourism is a leading economic driver to Central Florida’s economy, thanks largely to theme parks like Walt Disney World Resort, Universal Studios Orlando, SeaWorld, Legoland, and a year-round warm climate that attracts nearly 60 million global tourists each year. However, no other industry was hit harder by the COVID-19 pandemic than tourism. Orlando was a casualty of the slump in tourism-related travel due to health concerns, shutdowns, and travel restrictions. The sector came to a near halt in 2020, negatively impacting tourism tax revenue collected by local governments and used to provide essential services and programs, including those to support infrastructure, public safety, schools, and parks. Gradually, Central Florida began welcoming visitors back in 2021 and quickly hit a stride, exemplifying pent-up demand to travel. In March 2022, Orange County reported tourist development tax collections, a 6% tax levied by hotels and short-term rental properties, were 118.2% higher year-over-year and exceeded any other previous monthly collection on record by 23%, according to the county comptroller. That trend continued in October 2022, when tourist development tax revenue in Orange County was up 46% compared to last year, leading to increased hiring in the hospitality industry.
Four Florida cities listed among the 20 fastest-growing in America
In 2022, Florida was ranked the fastest-growing state in the U.S. – a first since 1957 – with a population increase of 1.9%, according to the Census Bureau. While the headlines and anecdotes of people moving to the Sunshine State appear to permeate everywhere, it seems no corner of the state is left untouched by net migration flow. However, in a new study by financial technology company SmartAsset, four Florida cities grew especially quickly and were among the top 20 “boomtowns” in the U.S. The data and methodology examined five-year net population change, yearly GDP growth, five-year growth in the number of businesses, five-year housing unit growth, and the unemployment rate. Fort Myers was listed as the No. 5 boomtown in America, the only Florida city in the top ten. SmartAsset notes the city’s population has increased by nearly 20% since 2016, and during this period, worker’s wages grew about 47% during that time, and 28% more housing units were been added to the market since 2016. It’s unclear if the devastation left by Hurricane Ian will negatively impact the growth Fort Myers has experienced in recent years. Port St. Lucie, Riverview, and Homestead rounded out the top 20, appearing at No. 11, 13, and 15, respectively.
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