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HomeMy WebLinkAbout2013-01-28 City Council Minutes MINUTES OF REGULAR MEETING BANGOR CITY COUNCIL – JANUARY 28, 2013 Meeting called to order at 7:30 PM Chaired by Chairman Durgin Councilors Absent: None Meeting Adjourned at 9:35 PM PUBLIC COMMENT None. CONSENT AGENDA ASSIGNED TO ITEM NO. COUNCILOR MINUTES OF: Bangor City Council Regular Meeting of January 14, 2013, Bangor School Committee Regular Meeting of December 12, 2012, Bangor Water District Regular Meeting of December 18, 2012 and Special Meeting of December 20, 2012, Infrastructure Committee Meeting of January 15, 2013 Action: Approved and Accepted Liquor License Renewal: Application for Liquor License, Malt, Spirituous, Vinous, Arayos SPRAGUE LLC d/b/a Diamonds, 190 B Harlow Street Action: Moved to New Business Application for Liquor License, Malt, Spirituous Vinous, Chases SPRAGUE Family Restaurant Inc. d/b/a Chases Family Restaurant & Hideaway Lounge, 1575 Hammond Street Action: Approved 13-062 ORDER Authorizing Execution of First Amendment to Indenture of Lease – LONGO Maine Aero Services, Inc. Action: Passed 13-063 RESOLVE Ratifying Action of Catherine M. Conlow, City Manager, Executing GALLANT Amendment to Lease with General Services Administration - Bangor International Airport Action: Passed CONSENT AGENDA ASSIGNED TO ITEM NO. COUNCILOR 13-064 ORDER Authorizing the City Manager to Apply for a Grant from the HAWES Corporation for National and Community Service- AmeriCorps: Governor’s and Mayor’s Initiative Action: Passed Page 1 MINUTES OF REGULAR MEETING BANGOR CITY COUNCIL – JANUARY 28, 2013 REFERRALS TO COMMITTEE AND FIRST READING ASSIGNED TO ITEM NO. COUNCILOR 13-065 ORDER Authorizing Issuance of $3,100,000 of the City’s Enterprise Fund BLANCHETTE General Obligation Bonds and a Tax Levy There For Action: First Reading and Referral to Finance Committee Meeting of February 4, 2013 13-066 RESOLVE Accepting and Appropriating a grant in the amount of $150,859 from LONGO the Federal Aviation Administration and $8,381 from the Maine Department of Transportation under the Airport Improvement Plan (AIP) program, grant # 57 for the canal fill wildlife abatement project Action: First Reading 13-067 RESOLVE Appropriating funds not to exceed the amount of $500,000 from BALDACCI Airport Department reserves for the purpose of completing improvements to two buildings located at Bangor International Airport Action: First Reading UNFINISHED BUSINESS ASSIGNED TO ITEM NO. COUNCILOR 13-058 ORDINANCE Amending the Code of the City of Bangor, Chapter 231, Public Parks BALDACCI – Use of Tobacco Products Prohibited Action: Motion made and seconded for Passage Dr. Robert Allen, representing the Public Health Advisory Board and Dr. Paul Shapero, representing the American Lung Association of Maine both spoke in favor of passage of this ordinance. Residents Paula Matlins, Andrew Matllins and Laura Mitchell spoke in favor of passage of this ordinance. Motion made and seconded to amend the ordinance to prohibit smoking with no designated smoking areas. Councilor Baldacci read a letter from the American Cancer Society and asked that the letter and other correspondence he had received in regard to the subject be included in the record. A copy of the correspondence is attached to the minutes. Vote on Amendment: 4 – 5 Councilors Voting Yes: Baldacci, Longo, Sprague, Durgin Councilors Voting No: Blanchette, Civiello, Gallant, Hawes, Nealley Motion Failed Motion made to amend the ordinance by limiting smoking within 200’ of a designated playground. Motion died for lack of second. Page 2 MINUTES OF REGULAR MEETING BANGOR CITY COUNCIL – JANUARY 28, 2013 UNFINISHED BUSINESS ASSIGNED TO ITEM NO. COUNCILOR Motion made and seconded to end debate. Passed Vote on Main Motion: 4 – 5 Councilors Voting Yes: Baldacci, Long, Sprague, Durgin Councilors Voting No: Blanchette, Civiello, Gallant, Hawes, Nealley Motion Failed 13-060 RESOLVE Appropriating a $202,268 Rebate of Group Health Insurance GALLANT Premiums as a Result of the Patient Protection and Affordable Care Act Action: Motion made and seconded for Passage Passed 13-061 RESOLVE Appropriating $846,987 of Arena Fund Revenues for FY 2013 Debt SPRAGUE Service Action: Motion made and seconded for Passage Passesd NEW BUSINESS ASSIGNED TO ITEM NO. COUNCILOR PUBLIC HEARING: Liquor License Renewal Application, Malt, Spiritous, Vinous of SPRAGUE Arayos LLC d/ba/ Diamonds, 190 B Harlow Street Action: Motion made and seconded to open Public Hearing. Public Hearing Opened Kathy Baldacci, Karen Foley and Sharon Gray spoke in opposition to the approval of this application due to the disturbance its patrons cause to the residence at the School House Apartments. Motion made to table for 60 days with a temporary permit in order to increase control and security. City Solicitor Norman Heitmann advised that there is no provision for a temporary license and recommended that the City Council take action before the expiration of the current license. Motion died for lack of second. Jim Ellis spoke on behalf of Diamonds stating that he has been working with the city to resolve issues and to alleviate the issues. Motion made and seconded to postpone to the February 11, 2013 Council Meeting Motion Doubted Vote: 7 – 2 Councilors Voting Yes: Baldacci, Blanchette, Civiello, Hawes, Longo, Nealley, Durgin Councilors Voting No: Gallant, Sprague Passed to Postpone until February 11, 2013 Page 3 MINUTES OF REGULAR MEETING BANGOR CITY COUNCIL – JANUARY 28, 2013 NEW BUSINESS ASSIGNED TO ITEM NO. COUNCILOR PUBLIC HEARING: Special Amusement License for Arayos LLC d/b/a Diamonds, 190 B SPRAGUE Harlow Street Action: Motion made and seconded to postpone this item until the February 11, 2013, Council Meeting Passed to Postpone until February 11, 2013 PUBLIC HEARING: Application for Liquor License, Malt, Spirituous Vinous, Tuy Hien SPRAGUE LLC d/b/a Little Vietnam Restaurant & Bar, 667 Hogan Road Action: Motion made and seconded to open the Public Hearing Public Hearing Opened Motion made and seconded to close the Public Hearing Public Hearing Closed Motion made and seconded for Approval Approved Motion made and seconded to Suspend the Rules to hold a Public SPRAGUE Hearing Passed Motion made and seconded to open a Public Hearing on the application for an automobile junkyard recycling permit of One Steel Recycling Public Hearing Opened Motion made and seconded to close the Public Hearing Public Hearing Closed Motion made and seconded to approve the application for an automobile junkyard recycling permit of One Steel Recycling Passed 13-068 ORDER Authorizing the execution of a lease between the City of Bangor and LONGO the Maine Department of Public Safety for property at Bangor International Airport Action: Motion made and seconded for Passage Passed 13-069 ORDER Authorizing the Sale of Lot 14 in the BanAir Industrial Park to BLANCHETTE Kurt Thomas Action: Motion made and seconded for Passage Passed __________________________________________ Lisa J. Goodwin, MMC, City Clerk Page 4 � a J M s Cancer Action Network - January 28, 2013 Dear Members of the Bangor City Council: fnericall Cancer sociel Cancer .lection Network 1 B0vvd(_)III \1111 151211d. 5uitc IOO � t�t�5 1�flll. M l . 04086 `(} 7, 3 1,O7 11,1! 11.�1t4�a[).11I' The American Cancer Society Cancer Action Network (ACS CAN) is the advocacy affiliate of the American Cancer Society (ACS), which is a nationwide, community-based, voluntary health organization dedicated to eliminating cancer as a major health problem by preventing cancer, saving lives, and diminishing suffering from cancer through research, education, advocacy, and services. On behalf of ACS CAN, I am writing to express support for the January 28 City Council meeting agenda item pertaining to the tobacco -free public parks ordinance. We commend the inclusion of all tobacco products and encourage you to pass a comprehensive tobacco -free ordinance without any exemptions for certain public parks and without any amendments that would allow only for the establishment of designated areas of the park to be tobacco -free. Tobacco use is the leading preventable cause of death in the United States, equaling more than 4001,000 deaths every year, Tobacco use increases the risk of at least 15 types of cancer and contributes to more than 30% of all cancer deaths, including 87 percent of lung cancer deaths. Smokers who quit can add up to eight years to their lives. Each year, smoking accounts for an estimated 443,000 premature deaths in the United States, including 49,400 deaths among nonsmokers as a result of secondhand smoke. Tobacco use costs the nation $193 billion in health care expenditures and productivity losses. Annually, tobacco use costs Maine $602 million in health care costs, $534 million in lost productivity, and kills 2,200 Mainers. According to a 2012 US Surgeon General report, every tobacco -related death is replaced by two new smokers under the age of 25. Taking efforts like the ones being discussed at your next meeting will allow the city of Bangor and state of Maine to improve health, reduce costs, and allow the generations of today and tomorrow to thrive. States and localities have been at the frontlines of tobacco control by legislating and implementing effective, proven strategies to reduce youth initiation, encourage current users to quit, and to protect all from secondhand smoke. Currently, more than half of the United States population is covered by a smoke-free law. In 2009, the Maine Legislature passed a law to prohibit smoking in, on or within 20 feet of a beach, playground, snack bar, group picnic shelter, business facility, enclosed area, public place or restroom in a state park or historic site. Many cities and towns across Maine have since taken efforts to pass similar public health policies for city/town parks and beaches. Still, there is more work to be done as Maine adults and children continue to be exposed to secondhand smoke in public places. Continuing to pass smoke-free laws remains one of the ACS CAN's top priorities. Secondhand smoke is a major health hazard proven to cause lung cancer, heart disease and emphysema. With 4,000 chemicals and more than 60 carcinogens — including arsenic and polonium — secondhand smoke is responsible for an estimated 3,000 lung cancer deaths in nonsmoking adults each year. In 2006, the U.S. Surgeon General concluded that there is no risk- free level of exposure to secondhand smoke. According to Stanford University, harmful exposure to secondhand smoke can occur within 20 feet of an active smoker in outdoor settings. Comprehensive smoke-free laws reduce exposure to secondhand smoke, encourage people to quit or cut down on smoking, and prevent youth from starting to smoke. ACS and ACS CAN are dedicated to reducing cancer incidence and mortality rates from tobacco use. We know what strategies are effective in preventing children from even starting to smoke, helping smokers quit their deadly addiction, and protecting all citizens from the health hazards of secondhand smoke and will work with policymakers in reducing the burden tobacco has on our nation, our state, and our local communities. For these reasons, we urge the Bangor City Council to support efforts to prohibit tobacco use in all city parks. Please feel free to contact me if you need additional information or have any questions about the information contained above. Sincerely, Hilary Schneider State Director of Government Relations and Advocacy 1 t r ALPHA 2012/2013 Roy trd of Dire tor-. 1::x..1113 1..1!1'1'.11 1�11�! 1 �1,1�'ril:•ri.'I. 1'I�1 �. 1 ?nzr` .1ll�i'7;tc�:'..111'I 1 I�c'lllslli; .I c11.-i�1(ii71 .111'1 I. ,11(.111: S 1);11: V"'.11 -o. 1 Y,:1,..111) 1 :.�.'rt7!lI1'�' 1)IIT�yr1I' kris111IaI1111] January 28, 2013 Bangor City Council Mayor Nelson Durgin, Council Chair 73 Harlow Street Bangor, ME 04401 Dear Mayor Durgin and Members of the Bangor City Council: My name is Tina Pettingill, the Executive Director of the Maine Public Health Association. We are an organization which represents 400 public health professionals and students across the State committed to creating an environment which sustains and improves the health and well-being of Maine residents. Our diverse membership has a common interest in the promotion and protection of the public's health. I am writing today to urge you to adopt a 100°Y tobacco -free outdoor spaces ordinance for the municipal parks, playing fields and recreational areas in Bangor. Reliable and credible sources such as our nation's highest medical official, the U.S. Surgeon General, as well as Stanford University researchers and Repace & Associates have published reports warning about the dangers of secondhand smoke in outdoor settings. This research proves that drifting secondhand smoke can indeed pose a significant health risk for nonsmokers sitting or standing near smokers outdoors. Conclusions from researchers include that smokers need to be at least 20 feet away from non-smokers in order to avoid concentrations of secondhand smoke and that contaminant levels can be as high in outdoor settings as in indoor settings. This is revealing and enlightening information as we know that there is no safe level of exposure to secondhand smoke- a toxin that is more deadly then arsenic, asbestos or lead. The reason this type of policy change works is simple- this is what the vast majority of Maine people want. Surveys consistently demonstrate that over 75% of Mainers support smoke-free environments including restaurants, bars, homes, workplaces, parks and beaches. In addition to Maine people wanting this type policy, smoke-free parks ordinances have proven to be self -enforcing. The University of Minnesota did a large-scale survey of 257 parks directors that had smoke-free policies in 2004 and found that: • 74% reported no problems with policy violators; ��-�ti��-.mainenublicl�calrh.o r� A% r • 88% reported no changes in park usage and for those reporting a change in park use following the policy, 71% reported an increase in usage; • In addition, 58% of park directors reported less litter in park areas. This same study reveals that enforcement was an area of worry for nearly all park directors without a policy. However, in communities with a policy, few park directors actually experienced compliance problems and 99% of park directors with policies would recommend such a policy to other communities. Successful implementation of this type of ordinance relies on everyone working together. Education, signage and community and patron awareness are the keys to success, as is the passage of an ordinance itself. When people understand that an ordinance is in place, via signage and community messaging, compliance rates are high. In cases where they don't comply, The American Lung Association of California reminds us that "part of what makes these laws self -enforcing is that they are enforceable if needed. They are real laws with penalties and consequences for violation." On behalf of the Board, staff, 400 members of the Maine Public Health Association and the 80% of Bangor residents who do not use tobacco, I thank you for your thoughtful consideration of a tobacco -free parks ordinance. This ordinance will protect our parks, people, pets and wildlife; it will be self -enforcing and put Bangor in line with State parks... a win-win for everyone involved. Feel free to contact me with any questions at mainepha@gmail.com or 730.1040. Thank you for your time. Kristina Pettingill, MPH Executive Director l 11-1 1)I'iv-C, .1UiItI-,[a, X11_>;�I ,,vwxv.mainepublichcalth.org As an emergency medicine physician who practices in Bangor and a member of the Maine Medical Association's Board of Directors, I read with frustration a report on the City Council government operations committee discussion Monday night regarding the proposal to restrict tobacco use in city parks (Bangor Committee Debates Tobacco Restrictions for Public Parks, Oct. 4 Several Council members commented that smoking is an issue of individual rights. This is correct in the sense that tobacco is a legal product and adults have a right to use cigarettes and tobacco products. However, Dr. Gratwick got it right when he said this is an issue of public health. An individual's right to smoke should end when it will adversely impact the health and raise health care spending for the rest of us. Families, children and those of us who don't smoke (nearly 80% of adults in Maine are non-smokers) should be able to enjoy the use of Bangor's playgrounds and outdoor spaces without worrying that we are putting our health at risk or having to be the ones to get up and leave. The City is careful to keep the parks clean and well cared for so people don't get hurt on the playground equipment or slip and fall in the parking lot. Shouldn't the City also take a simple, no cost step to keep those of us who don't want to be exposed to it safe from tobacco smoke? We know that second hand tobacco smoke, even in outdoor places, is dangerous. Exposure to outdoor tobacco smoke can subject people nearby to similar or even higher levels of particulates than indoor tobacco smoke. And, we know that exposure to second hand smoke has an established connection to adverse health outcomes in adults and children, including asthma, respiratory infection, and lung cancer. More recent work has shown an association between second hand smoke exposure and reduced cognitive ability in children, increased respiratory disease in adults, and increased coronary heart disease in women. Finally, one of the primary reasons for encouraging the development of smoke-free policies in outdoor locations frequented by young families and children is that such environments are very effective in preventing youth tobacco use in the first place. Prevention is critical because if young people don't start to use tobacco by age 26, they almost certainly will never start. For these reasons, the American Medical Association supports the elimination of smoking in all public places. The Maine Medical Association, a membership organization of 3600 physicians, including over 300 who live or work in Bangor, also support policies that protect non-smokers from involuntary exposure to hazardous tobacco smoke. We are proud of Bangor for considering this ordinance and know the Council will do the right thing to protect Bangor's residents and visitors. We hope the Council does not water down the proposal to have a complete ban on smoking in parks. Charles F. Pattavina, MD On Behalf of the Maine Medical Association : ;1; .. t .. — M `f z ±7 r'1'. f� • � . .. �-5:;ss, + .. '1 - '1,. - -'..i - :1 Dr. pattavina is an emergency medicine physician who practices at St. Joseph Hospital and a member of the Maine Medical Association Board of Directors 0 STAR .. Rent Estate I (arm. a ion News: National January 23, 2013 Written by Mark Heschmeyer (mheschmeyer@costar.com) T �=�s 1.� � �.. � ' `� � .d. �, f � � e � :. 11 � �r M t z, � i - - �' ••,�' s'_ -° r��� i � � i''� 'tel � i ' � } � � M1 � �• 3,.� � � 1 � , �! '�..... ,,.i 'yam, .�� t i..i {,..: 1 iii � d ' .,p L,, ai� �:, CRE Firms Herald Flurry of L a to Year Deals Even as Some Worry Investment Activity Driven More by Policy Than Property Economics Clarion Partners, a leading New York -based global investment manager, epitomizes what has been occurring in the U.S. commercial real estate investment sales market over the past few weeks. Clarion has been on a tear, as has the investment market. • In a joint venture with MetLife Real Estate Investors, Clarion purchased the 1.4 million -square -foot Constitution Center, the largest, privately -owned, trophy office building in Washington.. DC, for $734 million. • Acting on behalf of a separate account client of the firm, Clarion paid $129.3 million for a six - property, 407,458 -square -foot office portfolio in the Four Point section of Boston's Seaport District. • In New Jersey, Clarion paid $76 million for the 353 --room Hanover Marriott on behalf of -an institutional investor. Three huge deals that closed in a span of few short weeks, which has been the story for much of the CRE market as We've rolled into 2013• Cassidy Turley estimates the uptick in deal volume at the end of 2012 was close to 20% above historical norms. Share this story with your followers Tweet But the big question on nearly everyone's mind is: Can it continue? Tim Wang, a director, head of investment research and a member of Clarion's investment committee, thinks so, and says compared to other options available to investors, CRE is very attractive right now. "The European sovereign debt crisis seems to be stabilizing. China's economy has rebounded. The U.S. is finally ready to confront our budget deficits and long-term structural issues," Wang said. "So, on balance, the economic outlook is relatively positive. On the other hand, investors are facing a volatile stock market and ultra-low bond yields. High quality commercial real estate is a logical choice for investment today." That sentiment is shared by research analysts at most commercial real estate firms across the country, although some are concerned the deal flow seems to have more to do with policy matters and tax avoidance rather than underlying economic and property fundamentals. "Though investor demand for multifamily, CBD office, trophy shopping centers and net leased investment remains extremely high, the late year flurry of deals that we saw in December had more to do with fear of 'taxmageddon' than anything else," said Garrick Brown, director of research at Cassidy Turley in San Francisco. "If anything, I think this trend does not speak to underlying economic fundamentals but ongoing policy concerns." And that, Brown said, is very good news. "Policy concerns are now the greatest threat to the economy -not weak underlying economic f=undamentals," Brown said. "And though the fiscal cliff deal was wanting and certainly set the stage for more discord with debt ceiling II, I also think that the worst short-term damage was averted with that deal. Business confidence is up. Copyright (c) 2013 CoStar Realty Information, Inc. All rights reserved. CONTINUED: Do a Few Good Weeks Portend a Good Year Ahead? "Though it didn't have a huge impact on pricing and cap rate trends, we did see some sellers whose pricing had previously been set in stone suddenly accept offers they had previously rejected to close deals," Brown continued. "But we also saw a lot of activity from people who contacted us late in the year simply looking to self a property quickly." Jacques Edelin, director of research at Newmark Grubb Knight Frank in New York, said underlying business conditions could put a damper on the investor enthusiasm of the last few weeks. "Corporate earnings growth for the big S&P 500 companies turned negative in the third quarter of 2012 for the first time in 11 quarters (nearly three years), which means the economy is not improving despite what the media and politicians are telling us. That doesn't bode well for 2013," Edelin said. So what's an investor to do? "The key challenge for core investors in 2013 will be availability of properties for sale," said Lee Menifee, managing director, research and strategy at American Realty Advisors in Glendale, CA. "With foreign investors,. REITs, pension funds and retail investors all poised to increase their exposure to U.S. real estate, there may not be many sellers, and the high quality properties that come onto the market will spark intense bidding wars. But investors who choose to sit on the sidelines in the coming year are likely to find the 2014 environment similarly competitive, and will miss out on a year of attractive income returns and potential appreciation." Menifee expects value-added and opportunity investors will find competition even more fierce this year than last. "Many troubled assets are "self -curing' due to rising property values, reducing the number of distressed sales," he said. "Instead of distressed owners, value added and opportunity investors increasingly will have to buy distressed assets, which are always more challenging and expensive to reposition." As always in commercial real estate, a key to sustained growth will be financing. Menifee said he beelieves the net deleveraging of commercial real estate will constrain value growth, particularly in tertiary markets. "Despite the growing availability of debt for core properties, banks and most other lenders are decreasing their exposure to U.S. real estate," he said. "CMBS markets could play a bigger role in 2013, but investor demand is as likely to ebb as it is to flow, depending on the regulatory environment and perceptions of the quality of the underlying properties." CoStar asked other CRF professionals for their take on how they expect 2013 will progress based on their experience over the past few weeks. Here are some of the additional responses: A Better Year Than 2012 One or two good months does not a "trend" make! That said._. I do believe that 2013 will be a better year than 2012. We are certainly experiencing an uptick in activity in our Tucson office market, in both sales and leases. Even the general "chatter" in the street is a bit more intense. Some of it is due to pent-up demand in requirements to purchase or lease. Some of it is due to a feeling of more confidence in what the future will bring. But I expect this increase in the level of activity will be fragile and the day-to-day news coming out of Washington, as well as state and local governments, will have great effect on the direction of this "trend." I do believe we are recovering. But the pace will be slow enough that it won't really feel like things are getting much better until the day sneaks up on us and we realize that it's happened! Thomas .I. Nieman, principal, commercial properties at Cushman & Wakefield I Picor Commercial Real Estate Services in Tucson More Deals Because There Are More Options Copyright (c) 2013 Costar Realty Information, Inc. All rights reserved. CONTINUED: Do a Few Goad Weeks Portend a Good Year Ahead? As cap rates compress too low for many investors for core assets in the most sought-after gateway markets, more investors are open to secondary markets and lesser -quality assets to achieve reasonable returns. There are more acquisition options as investor criteria expands. Most investors feel this is a great time in the cycle to acquire real estate. Now that values are clearly on the rebound and most markets are seeing improvements in occupancy and rates, investors are less apprehensive about the market. Sellers feel pricing has improved enough to sell. Sellers feel better about selling assets now than they have in four years, so there are more willing sellers. In some property sectors and market areas, values are still less than replacement costs. Plus new development is still more difficult to finance. This further drives the acquisition vs. new development decision toward acquisition. Michael Bull, president at Bull Realty Inc. in Atlanta Unless Washington Mucks It Up We expect the recovery to show some acceleration in 2013. It has been a long, slow road to get to this point, but we believe that the business community's confidence levels are finally returning to a level of equilibrium. Provided Washington does not dislodge that confidence, the fundamentals also appear to point to higher levels of real estate activity across most sectors. I would describe the ingredients as a combination of improving confidence, positive growth from the housing sector (which has been a major detraction for several years), a healthier financing environment and an employment market that is not strong, but is trending positively. These economic fundamentals are set against a backdrop of limited new supply in the real estate market, so any pickup in demand is having. a meaningful impact on the markets. James R. Wrigley, executive vice president of Trefoil Properties LP in Lansdale, PA Absorption Will Be Key Class A office in Dallas seems to be selling well. Class B office fundamentals seem to be improving finally, but most B and C buildings are not primed for sale due to low occupancies and low rental rates. Some Class A owners may feel that their in-place rental rates are still too low to sell despite higher occupancies. It seems unlikely that cap rates will decline further and likely will remain flat for next few years. Owners of Class B office should be hoping that Class A office rates and occupancies are becoming high enough to be restrictive to tenants and that Class B buildings will therefore benefit. I think that this may begin in 2013. There are statistics and anecdotal evidence to indicate that concessions are diminishing and that tenant's leverage has already peaked and is on the decline. Ryan Phillips, president of Signature Asset Management Inc. in Dallas I track absorption closely and it has been increasing steadily each quarter. Vacant spaces need to be absorbed before landlords can get any real pricing power. We are probably 12 months away from any price increases. Todd Hamilton, associate broker at Cutler Commercial in Phoenix Employment Primary Driver of Recovery We believe activity will be firing on all cylinders and continuing the momentum over the past two months. This includes sales velocity, better occupancy, less concessions, more development, continued cap rate compression for core product in core markets and more investment capital in secondary and tertiary markets. Employment tends to be the primary driver of this CRE recovery. You are seeing stronger employment numbers in the core markets which is increasing occupancy for office product, more discretionary dollars For retail spending and increased confidence by both companies and investors to put their money back to work. In addition, the low interest rate environment is allowing for continued momentum for both buyers and sellers. Joel Dumes, vice president of investments from The Dumes Falk Group of Marcus & Millichap in Cincinnati Copyright (c) 2013 CoStar Realty Information, Inc. All rights reserved. CONTINUED: Do a Few Good Weeks Portend a Good Year Ahead' Still Too Early To Tell The market continues to be a story of haves and have-nots. Some real estate firms have embraced the new economy, and are doing business in a new way. Much of that requires learning and letting go. Some firms have, and some have not. The market is different than it was in 2006 and even 2010 for that matter. We've reached a peak and a bottom both over the last five years. Values have been rising. There is job growth, it is modest, but it exists. Most importantly, there is money. Debt and equity capital is readily available for trophy deals, value add deals so long as they are priced correctly. Bottom line, 2013 will likely be ok or good. I don't expect it will be great. Aasif M. Bade, president of Ambrose Property Group in Indianapolis The New Normal I think it only signals that the market has adapted to a new normalcy, which should continue in 2013. Retail sales have been near or above pre -recession highs For two years. Unemployment is the only thing holding the recovery back farther. The divergence of the two (retail sales and employment) suggests two things. Firstly it signals a structural retrenching where the outcome of the retooling of corporate America in response to the recession - i.e, more efficient operations doing more with fewer employees. Secondly, the lag in construction -related activity (which we know to be true) vs. retail sales has been somewhat surprising to some, but requires the full repricing effect on home ownership to finally work most of the way through the system. Gabriel Silverstein, president of Angelic Real Estate LLC in New York Bearish Sentiment Should Subside We glided off the cliff mostly unscathed, Europe seems to be relatively stable, and housing inventory seems to have dwindled (even the shadow kind) due to a rush of enthusiasm for discounted/distressed housing in 2012. Overall, very few clouds ahead - corporations should begin spending and expanding, which should propel job growth, and investment activity should continue with less uncertainty in the air. Provided that we don't have any surprises, bearish sentiment across the country should begin to substantially recede in 2013. Nelson B. Garcia, managing associate at CGI Merchant Group in Miami Keep up weekly on national news, trends and property leads with the Watch List Newsletter, a weekly pdf that includes other news and leads not found on the CoStar Group web news pages. Sign up for the Watch List E -Mail Alert. A new issue is published late each Wednesday. Copyright (c) 2013 CoStar Realty Information, Inc. Alf rights reserved.