Three-generation family businesses share their secrets of success

In 2009, when Larry Zinn took over as sales manager for the Infiniti dealership that his father owned, he had a great idea: retrain the sales staff in a team approach and offer customers complimentary add-on services for the first year.

Some salesmen who were used to selling the same way for decades up and quit. But that didn’t deter Larry from insisting a new sales culture and value proposition for new car buyers was necessary. “I was persistent with everything I’ve believed we needed to do going forward. People were going to embrace change or move on,” says Larry, 28.

The resistance quieted, however, after Larry recruited young salespeople and had them trained in the new advantage program. The new approach helped push sales volume up 72 percent. "We had a lot of success with it,” he says.

Larry Zinn’s experience is not unusual for family-owned businesses that survive into a third generation and employ new tactics to keep from becoming obsolete.

Nationally, family-run businesses account for nearly 35 percent of the largest companies including Ford, Koch Industries, Hilton, Wal-Mart, Loews and Ikea. In South Florida, family-run businesses are particularly prevalent and account for a majority of the largest Hispanic companies, including Goya, Bacardi, El Dorado and Sedano’s Supermarkets.

But while more than 30 percent of all U.S. family-owned businesses survive into the second generation, only about 12 percent are passed onto the third generation, according to Family Firm Institute, a Boston-based association for family enterprise professionals. Those that do survive have a few intriguing commonalities: an ability to stay relevant, think bigger and take a long term view.

“They try to figure out where they want to be in 10 years and take steps to make that target,” says Wayne Rivers, president of The Family Business Institute in Raleigh, N.C.

Most third-generation family businesses, particularly those in South Florida, were started by a scrappy entrepreneur who saw business ownership as a way to provide for the family. Those businesses include grocery chains such as Sedano’s, restaurant operators such as Las Vegas Cuban Cuisine and airport concessionaires such as NewsLink.

Typically, in those businesses, the founder brought his kids with him to work, put them in the kitchen, the stock room, the sales floor, and taught them on-the-spot business lessons. Those kids eventually came to work full time and helped the company evolve beyond a seat-of-the-pants start-up into a more sophisticated business with processes and systems.

Now comes the third generation, who are more likely to have received formal business education before they return to the company. Often, they are able to leverage that training and move the company forward dramatically. But the succession also comes with challenges. They must keep the respect of longtime employees and show the same dogged commitment to seeing their company succeed, even after having already grown up enjoying the fruits of its success.

In successful third-generation businesses, the senior generation often stays on to ensure that commitment, adopting a role as mentor or advisor while creating an environment where younger family members can take on real responsibility, says Rivers, who consults for family businesses. “They get out of the way, let the next generation make their own mistakes, and gracefully exit when it’s appropriate.”

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Investors await word from Apple

No company today elicits such devotion and dedication among its customers and shareholders like Apple. The fervor felt by Apple fans for its products, its leaders and its business underscore the company’s technological eco-centric strategy. While that loyalty has made for rich rewards over the long term, it will mean very little to a myopic stock market when Apple reports its latest financial results Wednesday.

When a company so dominates a business like Apple does, it is subject to plenty of rumors, especially when that company, like Apple, is disciplined to not respond to speculation. There have been a series of anonymous and Wall Street analyst worries floated in the past quarter centered on the iPhone 5. First were concerns Apple couldn’t get enough supplies to build the phones fast enough. Then there were hints Apple cut its supply orders, suggesting slower sales.

Apple optimists have been quick to defend the company even as its stock has fallen from $700 to around $500 per share since September. The stock drop has come even as Apple probably sold a record number of iPhones and iPads during the holiday quarter.

No doubt Apple will trumpet its financial prowess on Wednesday. And it should. After all it generates more than $500 million dollars a day. But the short-sighted stock market has been conditioned to expect big numbers. Therein is the challenge for Apple: incubating such devotion without inflating expectations.

Tom Hudson is anchor and managing editor of Nightly Business Report, produced by NBR Worldwide and distributed nationally by American Public Television. In South Florida, the show is broadcast at 7 p.m. weekdays on Channel 2. Follow him on Twitter, @HudsonNBR.

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Miami-Dade sees first hiring drop since 2010

Miami-Dade ended 2012 with its first overall job loss in more than two years as sharp drops in construction, healthcare and government jobs wiped out other gains.

The sectors all share one key funding source — tax dollars — as ongoing squeezes in government budgets force cutbacks in hospitals, infrastructure projects and basic municipal staffing. Miami-Dade lost nearly 5,000 local government jobs in December compared to the year before. Its hospital and construction sectors were both down almost 2,000 jobs each. Miami-Dade last saw its overall payroll number decline in June 2010.

Along with a hiring loss, Miami-Dade reported a sharp increase in people describing themselves as unemployed. Miami-Dade’s unemployment rate went from 8.4 percent in November to 8.8 percent in December, the sharpest increase since the recession was still underway in 2009.

Miami-Dade’s new job numbers were easily the most discouraging data set in Florida’s latest employment report. Florida reported an unemployment rate of 8 percent for December, down from 8.1 percent in November even though hiring is down for the year. And Broward recorded its second month of job gains, up about 5,000 positions.

Construction and government hiring have been rocky for years in South Florida, but the decline in the healthcare could mark a new, disturbing milestone for Miami-Dade’s economy. Before the end of 2012, Miami-Dade hospitals hadn’t reported a net job loss for 56 months. The losses follow significant layoffs at both the University of Miami medical school and the Jackson hospital system.

Miami-Dade’s 8.8 percent unemployment rate is still significantly lower than where it was a year ago, when unemployment sat at 10.2 percent in December 2011. Monthly employment reports also subject to revisions, so the hiring picture could look much better in a month. Still, Miami-Dade’s increase of four-tenths of percentage point in the unemployment rate is the fastest growth since April 2009, two months before the 2007-09 recession officially ended.

Of all the local job markets, only Miami-Dade receives a seasonally adjusted unemployment rate on the same day as the statewide report. The smaller markets’ raw rates aren’t considered as reliable.

Broward’s raw unemployment rate was 6.7 percent in December, down from 7 percent in November.

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Jackson Health System leaders fire off memos on UM

A little known children’s program at Jackson Memorial Hospital run by University of Miami doctors has sparked two contentious memos to the county’s political leaders.

Speaking about the pediatric bone marrow transplant program, Marcos Lapciuc, the Jackson board chairman, fired off an email late Thursday to the mayor and county commissioners complaining about UM “wishing to cease” providing such services at Jackson.

Jackson Chief Executive Carlos Migoya quickly responded with a “clarifying” memo to the politicians that “we have every indication” that UM will continue to providing such services at Jackson,” but might also provide those services elsewhere.

Migoya added that, if UM also undertook such services at another hospital, it would “clearly raise a host of complex issues.”

Both the medical school and Jackson have been struggling to overcome financial problems. UM so far has refused to say what it plans to do. When board members raised the issue earlier this week, UM spokeswoman Christine Morris said only that “we continuously work with our expert doctors and leadership at Jackson to make sure that our patients get the best possible care.”

Bone marrow transplant can be a crucial, life-saving treatment. UM doctors working at Jackson do about 10 to 20 of them each year on children, said Jackson spokesman Edwin O’Dell.

What concerns board members is that, as with any operating room procedure, staff needs to do quite a few each year in order to remain competent and hone their skills. If a program’s annual number of procedures gets too low, the state could withdraw certification.

Joaquin del Cueto, a veteran Jackson board member, told The Herald Thursday that the small program is symbolic of larger tensions between UM and Jackson. When UM purchased the 560-bed Cedars Medical Center, across the street from Jackson Memorial, in 2007, there was an understanding that UM pediatric services and transplants would remain services performed at Jackson, del Cueto said.

Earlier this week, a Jackson attorney told the board that there was nothing in the agreements with UM in which UM promised to keep transplants exclusively at Jackson.

Nevertheless, board members thought they had an understanding. Joe Arriola called the UM possibility of taking the pediatric program elsewhere “a stab in the back to our feelings,” to which fellow board member Darryl Sharpton added, “not to our feelings: Our viability.”

Board member del Cueto told The Herald that the spreading of the bone marrow program is “not in our best interests” because “we’ve invested millions of dollars to be the regional provider of transplant services” and Jackson has developed “highly trained professionals,” nurses and others, to do the procedures..

Del Cueto said he believes that Jackson’s basic operating agreement with UM requires UM to support the Jackson transplant program. He said he understands that Migoya is trying to calm the waters, to keep negotiations open with UM, but “I can’t sit by quietly” while UM is undermining Jackson.

In his memo to county commissioners, Migoya said, “We are continuing conversations with university leaders to find solutions that address both institutions’ long-term goals.” He said that UM has provided no notice that it plans to terminate these pediatric procedures at Jackson, but if it did, that “could be viewed” as a violation of the Jackson and UM signed agreements.

“Our professional recommendation is to continue our conversations with university leaders,” Migoya wrote.

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Jackson Health System asks Kendall trauma center be shut down

Ratcheting up the stakes in Miami-Dade’s hospital wars, Jackson Health System has filed two petitions with the state demanding a hearing to consider its belief that the license for trauma operations at Kendall Regional Medical Center was granted illegally and should be revoked.

Jackson, which for years has had the county’s only trauma center, has been complaining loudly since the Scott administration decided the state needed more centers. Kendall Regional’s opened in November 2011.

Jackson executives estimate it has been losing about $28 million a year since then because, as one of its trauma doctors quipped, Jackson Memorial’s Ryder Trauma Center tends to get the inner-city gunshot victims who have no insurance while Kendall gets the suburban car accident victims with insurance.

State officials and the HCA hospital chain, which owns Kendall Regional, maintain that Miami-Dade’s size requires more than one trauma center.

Mark McKenney, medical director of the Kendall center, said Wednesday the center has treated 2,500 patients in its first year -- “with mortality rates significantly below the state and national averages.” He said Kendall treats anyone who comes through the door, including plenty of gunshot and stabbing victims who may or may not have insurance.

McKenney said the state decided Miami-Dade needed more trauma centers after a 2005 study showed that only 39 percent of the county’s trauma victims were treated in trauma centers. Those treated in ordinary emergency rooms showed a considerably higher mortality rate, McKenney said.

In Miami-Dade, HCA’s Mercy and Tenet’s Palmetto General have also applied for trauma licenses. Jackson countered by seeking trauma units at its two community hospitals, Jackson North and Jackson South.

In its filings to the Department of Health on Jan. 2, Jackson’s lawyers asked for formal administrative hearings, maintaining North and South were unfairly denied approval in a Dec. 13 Department of Health letter that stated the regulators were rethinking trauma rules on trauma centers after court rulings.

The Jackson petitions, first reported on Tuesday by Jim Saunders of News Service of Florida, noted that an administrative law judge in November 2011 decided that the Department of Health’s trauma certification rule was invalid. After that, the department granted provisional licenses to Kendall Regional and three other hospitals.

On Nov. 30, 2012, the First District Court of Appeal upheld that decision. Seven days later, the department approved the application of Ocala Regional, another HCA facility, and allowed it to open the following day. Gov. Rick Scott is the former chief executive of HCA.

Jackson’s attorneys accused the department of giving these other hospitals a “selective benefit.” They said that a hearing would establish that “the ultimate facts” show that “all provisional licenses issued under the invalid trauma rule need rule should be revoked,” as well as all pending applications, until the department established a legally acceptable rule on trauma centers.

Steve Ecenia, an attorney for HCA, called Jackson’s petition “bizarre” because, instead of seeking approval for its own applications, it was trying to hit back at other hospitals, including Ocala, “hundreds of miles away.” He said the appeals court decision wasn’t final, because there are demands for a rehearing, and the Department of Health’s licensing has been fair.

A Department of Health spokeswoman said Wednesday that the department “had no additional information to provide.” A Jackson spokesman said executives couldn’t comment “because of pending litigation.”

Wayne Brackin, chief operating officer of Baptist Health South Florida, said Baptist is “very worried about this trauma issue,” because in the 1980s, the trauma system fell apart in Miami-Dade with many hospitals losing money on the service, and Baptist doesn’t want the Ryder Trauma Center weakened by competition that could again endanger trauma care in the county.

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Miami Dolphins bill would bring state money to aging stadiums

A bill drafted by the Miami Dolphins would give Florida sports teams $3 million a year in state money to improve older stadiums, provided the owner pays for at least half the cost of a major renovation.

Under the law, the stadium would need to be 20 years old and the team willing to put in at least $125 million for a $250 million renovation. That’s less than the $400 million redo of Sun Life Stadium that Dolphins owner Stephen Ross proposed this week, which he hopes will win state approval thanks to his offer to fund at least $200 million of the effort to modernize the 1987 facility.

Miami-Dade and Florida would fund the rest through a mix of county hotel taxes and state general funds set aside for stadiums. Sun Life currently receives $2 million a year through the program, and the Dolphins want to create a new category that would give them an additional $3 million.

While the Miami Marlins and Miami Heat both play in stadiums subsidized by county hotel taxes, the Dolphins receive no local dollars. The bill would change that by allowing Miami-Dade to increase the tax charged at mainland hotels to 7 percent from 6 percent, and eliminate the current rule that limits the money to publicly owned stadiums. Sun Life Stadium, in Miami Gardens, is privately owned but sits on county land.

The bill pits enthusiasm for one of Florida’s most popular sports teams against a lean budget climate and lingering backlash against the 2009 deal that had Miami and Miami-Dade borrow about $485 million to build a new ballpark for the Marlins. Ross also must navigate a Republican-led Legislature that has twice rebuffed his requests for public dollars.

“I would be surprised if that bill even got a hearing in committee,” said Mike Fasano, a Republican representative from the Tampa area and a critic of tax-funded sports deals. “I’m a big Dolphin fan, and have been for years. But with all due respect, we’ve got people who are struggling throughout this state right now . .. The last thing we should be doing is giving a professional sports team or facility additional tax dollars.”

While the bill would open up the $3 million subsidy to other the teams, the Dolphins see it as unlikely that another owner would be willing to put up as much money for renovations as Ross, a billionaire real estate developer.

If the bill were enacted today, any stadium opened before 1993 would be eligible for the money, provided it could show the proposed renovation would generate an additional $3 million in sales taxes.

Ross and his backers are pitching the renovation as a boon to tourism, with Sun Life a magnet for the Super Bowl, national college football games and other major events. The National Football League is considering South Florida and San Francisco for the 2016 Super Bowl, and the Dolphins say approval of renovation funding is crucial to winning the bid.

Sen. Oscar Braynon, D-Miami Gardens, who sponsored the Senate bill, said the funding makes sense because when Sun Life hosts a Super Bowl, the entire state benefits from both tourism dollars and publicity.

“It’s a small price to pay for economic development, and for all the shine we get from major sporting events,” said Braynon, whose district includes Sun Life. Rep. Eduardo “Eddy” Gonzalez, R-Hialeah, is the sponsor on the House side.

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Global entrepreneurship nonprofit Endeavor coming to Miami

Flawless execution helped propel Argentine Marcos Galperin’s e-auction site, Mercado Libre, above the competition to become a $3.8 billion company. Some 50,000 small businesses now use it to market their wares.

Leila Velez and Heloísa Helena Assis, cousins who grew up in the slums of Rio, started with one product and one salon. Today their company, Beleza Natural, operates 24 salons that bring in $75 million in revenues, employs 1,500 people and has an eye on U.S expansion.

Both were powered, in part, by Endeavor, a global nonprofit that selects, mentors, supports and accelerates high-impact entrepreneurs in metropolitan areas of 16 countries — and, soon, in Miami.

Endeavor and its local supporter, the John S. and James L. Knight Foundation, announced Tuesday that Knight is providing Endeavor with $2 million in grant funding over five years for Endeavor’s first U.S. expansion. Endeavor’s Miami office could ultimately service dozens of local entrepreneurs, but first a local board needs to be assembled, a managing director hired and offices set up.

Beginning late this year, South Florida’s innovators will be able to apply to become Endeavor Entrepreneurs, connecting them to a global network of mentors and advisors who can help grow their ventures. “We think this is a cornerstone of making Miami more of a place where ideas are built,” said Matt Haggman, Miami program director for the Knight Foundation, which has made entrepreneurship a key focus of its Miami program.

The announcement is an important milestone in Miami’s efforts to accelerate an entrepreneurial ecosystem, which has been gaining momentum, said Haggman, who led the effort for Knight, its largest investment in entrepreneurship to date. Accelerators, incubators and co-working spaces have been opening up, including Launch Pad Tech, which is receiving $1.5 million in public funding and opens for its first class next week. Last month, the first ever Innovate MIA week attracted hundreds of entrepreneurs, investors and other supporters to a packed schedule of daily events, which included the Americas Venture Capital Conference and Endeavor’s International Selection Panel.

“Miami is almost the perfect seeding ground for Endeavor,” said Peter Kellner, co-founder of Endeavor and now an Endeavor board member, an investor and South Florida resident who began discussing the project with Haggman in the spring. “There are commitments from large institutions like Knight, FIU, UM, there is capital, there are people that are interested in making things happen, there are already clusters of activity like accelerators and incubators. That’s where Endeavor thrives.”

Endeavor selects and works primarily with companies from a wide range of industries that are already earning $500,000 to $15 million in annual revenue and ready for the next stage: explosive growth.

“While the vast majority of small businesses employ two or three people, Endeavor businesses employ an average of 237,” said Endeavor co-founder and CEO Linda Rottenberg.

Launched in 1998 and headquartered in New York City, Endeavor now operates throughout Latin America, Africa, the Middle East, Europe and Southeast Asia and supports more than 750 entrepreneurs who are chosen in a rigorous selection process.

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.CO sets sights on changing ‘the fabric of the Internet’

For the millions of people who equate the Web with .com, . CO Internet is out to change that mindset.

The Miami company that manages and markets the .co domain is already making impressive gains — more than 1.4 million in 200 countries have hung their businesses, blogs, personal projects or dreams on a .co virtual shingle. Still, that’s just a tiny fraction of industry titan VeriSign’s 105 million .com registrants.

“We want to change the fabric of the Internet,” Juan Diego Calle, founder and CEO of .CO Internet, said during an interview in .CO’s Brickell office. “We can only make that happen not by changing what happened in the last 25 years of the Web, which is owned by .com. We want to change the next 25.”

About 2½ years after the launch of .CO Internet, .co — the country code of Colombia — continues to be one of the fastest-growing Internet domains in the world and grew by 24 percent in 2012. .CO Internet is profitable and is projecting to bring in more than $25 million in revenues this year, the company said. The early success of .CO Internet, with operations in Miami and Colombia, is powered by passion and perseverance.

Calle moved to Miami from Colombia at age 15 with his family. He started several businesses, including one he sold in 2005 providing seed capital for what would come next. “I can’t say I ever sat still.” When he learned Colombia would be commercializing the country's .co domain extension in late 2006, he said it hit him like a lightning bolt.

With the right strategy and by “marketing the hell out of it,” the entrepreneur believed .co could solve a huge problem in the market — vanishing Internet domain names. If you’ve tried to nab a new .com address lately, you can relate — it’s difficult to find one that hasn’t been snatched up.

Calle thought that by appealing to the hearts and minds of the entrepreneur, .co could go where .info, .biz, .net or .me had never gone before. But first he needed the right team.

One of this first stops: The Big Apple, to visit Nicolai Bezsonoff, who had been an advisor and shareholder in Calle’s TeRespondo.com, a sort of Ask Jeeves for the Latin American market that was sold to Yahoo in 2005. At the time, Bezsonoff was the director of technology and operations at Citigroup.

“We went out for coffee, he started pitching me on a napkin. I said ‘really dude you want me to leave a big job at Citigroup for this?’ ” said Bezsonoff. “But he kept showing me the numbers … Later, that napkin was on my desk and it was one of those boring days and I kept looking at it and thought maybe I should.” He would become .CO’s chief operating officer.

Lori Anne Wardi, a lawyer and serial entrepreneur who was working at a venture capital firm at the time, became vice president in charge of brand strategy, business development and global communications. “She’s the heart and soul of the company,” said Calle. Eduardo Santoyo, based in Bogota, would become corporate vice president over policy and be the liaison with the Colombian government. “Some would say it was overkill talent but I needed the best. ... When you have a big dream, you have to think big and hire the right people,” Calle said.

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After rough year, Carnival hopes for calmer waters

After boarding the latest addition to the Carnival Cruise Lines family, Josh Beaver sampled lasagna at the new onboard Italian restaurant, downed some drinks with his traveling companions and hit the water slides while the afternoon was still young.

“So far, from what I’ve seen, there’s lots to do,” said Beaver, 33, of Holden Beach, N.C.

The Carnival Breeze hadn’t even left PortMiami yet on a recent Saturday, and already it buzzed with vacationers exploring all there was to do: nosh on a Pig Patty from the new Guy’s Burger Bar, make friends with bartenders at the new RedFrog Pub or check out a novel and a glass of the grape at the new Library Bar.

Here aboard one of the largest ships in the biggest brand of the Number One cruise ship company in the world, there was little hint that the last year was one of the toughest in the 41-year history of parent company Carnival Corp. & plc.

Last year got off to a catastrophic start when Costa Concordia, owned by Carnival unit Costa Cruises, struck rocks in Italian waters as the captain steered the ship on an unauthorized route. The massive liner listed to one side, and 32 people died in the chaos that followed.

“When you lose lives, it’s heartbreaking,” said Carnival Corp. Vice Chairman and COO Howard Frank, who devoted much of his time last winter handling the aftermath with Costa leaders. “And so I think in terms of our emotional reaction to it, it’s been the toughest year we’ve had.”

Carnival Corp. Chairman and CEO Micky Arison took criticism for not going to Italy following the wreck, but said he believes the company did the right thing and doesn’t second-guess his actions.

Financially, the company took a hit as well, starting with discounts that were necessary to drum up business after the accident. Costa’s future bookings plunged, but picked up after the operator slashed prices. As of mid-December, prices at Costa remained lower than they were a year earlier, though the company expects that to change once the anniversary of the accident passes.

“I think we’ve been consistent in saying the recovery at Costa is not a one-year issue,” Arison said during the December earnings call with analysts. “It’s going to be multiple years, and we are forecasting a recovery of about half the yield deterioration.”

The ship remains on its side off the island of Giglio; it’s expected to be removed by the end of summer.

A flurry of civil lawsuits have been filed, but none have reached trial yet; the company has reached compensation agreements with 70 percent of the more than 3,000 passengers who were not physically injured and 60 percent of injured passengers and families of those who died.

As the company and broader industry focused anew on safety, the summer months presented a fresh set of problems when the European economy weakened just as cruise lines were stationing more ships in the Mediterranean. While North America was immune to those concerns, the run-up to the Presidential election and the fiscal cliff debates prompted Carnival to worry about a slowdown in business at home.

Last month, Carnival forecast 2013 earnings that were lower than expectations and said advance bookings for the year were behind what they were a year earlier at lower prices. Many analysts believe the projections were conservative, though, and executives said they were hopeful that January would bring more robust business.

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What the week’s big mortgage moves mean for consumers

This week brought three big developments to the nation’s beleaguered mortgage landscape. For consumers, the complex moves have been mostly mystifying, but experts say they all aim at turning the page.

“There is a strong desire to put behind us all this period of time — the aftermath of the darkest period in American finance. All these things [announced this week] are intended to do that,” said John Taylor, president and CEO of the National Community Reinvestment Coalition, a Washington, D.C.-based community advocacy group. “There are good and bad things in it for consumers.’’

A new rule issued Thursday by the Consumer Financial Protection Bureau aims to prevent lenders from making the sort of toxic mortgages that forced many unsuspecting borrowers into ruin. Yet the new “qualified mortgage” rule, according to some lenders, also could perpetuate the nation’s tight credit problem and keep many would-be homebuyers on the sidelines.

Meanwhile, two settlements unveiled Monday with big banks should resolve some lingering issues from the mortgage meltdown that have kept banks focused on past errors instead of getting back to the business of lending.

Here is a quick primer on the week’s developments and some likely implications for consumers.

OCC Settlement

The Office of the Comptroller of the Currency, which regulates nationally chartered banks, Monday unveiled an $8.5 billion settlement with 10 giant banks that service mortgages.

As part of the controversial settlement, the OCC is scrapping its Independent Foreclosure Review, which was aimed at identifying victims of robo-signing and other improper foreclosure tactics by banks, but soon proved to be a badly flawed effort.

Instead, under the OCC’s new approach — which will be spelled out in enforcement actions in a couple of weeks — more than 3.8 million borrowers who faced foreclosure between Jan. 1, 2009 and Dec. 31, 2010 stand to get some payment regardless of whether they actually suffered any harm.

The mortgage servicing banks covered are Bank of America, Wells Fargo, Citibank, JPMorgan Chase, SunTrust, PNC, Sovereign, U.S. Bank, MetLife Bank and Aurora.

The agreement provides for $3.3 billion to go directly to borrowers. Another $5.2 billion is earmarked for loan modifications and the forgiveness of deficiency judgments.

The OCC said the amount that eligible borrowers get will range from a few hundred dollars up to $125,000, depending on the type of error that possibly occurred in their mortgage servicing.

“If a borrower went through foreclosure with one of those 10 lenders, they should receive a couple hundred bucks, whether they deserve it or not,” said Guy Cecala, publisher and CEO of Inside Mortgage Finance Publications in Bethesda, Md., which tracks news and statistics in the residential mortgage industry. “The odds of getting $125,000 is the odds of winning the lottery. It would have to be a false foreclosure or where they were thrown out of their house illegally.”

The OCC will look to 13 broad categories of errors outlined in the Independent Foreclosure Review launched in April 2011.

Those include a litany of bumblings and misdeeds by the mortgage servicers, ranging from foreclosing on a homeowner who was following the rules during a trial period of a loan modification, to failing to offer a loan modification as mandated under a government program, to failing to follow up with a borrower to obtain needed documents under a government program.

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Legal feud over Spanish-language TV leads to federal suit in Miami

What began as a highly-touted affiliation between a new Spanish-language national television network and a popular independent local station in Miami has dissolved into a legal dispute of David and Goliath proportions.

MundoFox Broadcasting, part of the family of communications giant News Corporation, filed suit in the U.S. District Court Southern District of Florida against the parent company of America Tevé Channel 41-WJAN, America-CV Network, for breaching two agreements forged in May.

The complaint alleges that in South Florida "MundoFox’s initial launch had less exposure, viewership was lower, soliciting advertisers became more difficult and advertising revenue decreased,” because the network was swapped to inferior channel positions by cable providers.

In a statement, America-CV Network, denied the allegations in the complaint and announced that it will defend itself vigorously.

— DANIEL SHOER ROTH

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Unemployment claims on the rise in Miami-Dade

Miami-Dade County ended 2012 with more people joining the unemployment rolls than it did last year.

The late-year increase in first-time unemployment claims broke a trend of declining applications throughout most of 2012. First-time claims spiked about 15 percent in November and December, with about 17,500 new applications in all over those 60 days. That’s compared to 15,000 during the same time in 2011. For the entire year, claims were still down about 10 percent.

In Broward, overall claims were down 15 percent. In November and December, Broward residents applies for 10,200 first-time unemployment benefits, compared to about 10,500 in 2011 — a 3 percent drop.

DOUGLAS HANKS

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4 smartphones with standout features

These days, smartphones are almost all drawing from the same bag of tricks, and it can be hard to tell one from the next. If the average smartphone will do all the basic things you want it to, what does it take to be special? Here are four smartphones with unusual features that really make them stand out.

Nokia Lumia 920

Rating: 4 stars out of 5 (Excellent)

The good: This phone forges new Windows Phone ground with wireless-charging support and a highly sensitive screen you can use with gloves. Moreover, Nokia helps fill in Windows Phone OS gaps with a few missing features.

The bad: A thick, heavy build and slippery finish for some colors make the Lumia 920 harder to hold and carry, and the phone’s overhyped camera doesn’t have enough settings.

The cost: $99.99

The bottom line: Nokia’s Lumia 920 is heavy and thick, but if you want the most powerful, feature-rich Windows Phone smartphone available, this is it.

Samsung Galaxy Note 2

Rating: 4 stars out of 5 (Excellent)

The good: Oodles of screen real estate make this terrific for videos, games, and reading, and its improved stylus aids productivity. A blazing quad-core processor, a great camera and strong battery life round out the advantages of this Android 4.1 phone.

The bad: The huge display makes it unwieldy to carry, and hiccups in the S Pen stylus and apps can slow you down. The pricey Note 2 isn’t a suitable tablet replacement across all categories.

The cost: $149.99 to $309.99

The bottom line: Samsung delivers a powerful, boundary-pushing device that gets a lot right. Yet its complicated features and high price raise questions about its purpose.

Motorola Droid Razr Maxx HD

Rating: 4 stars out of 5 (Excellent)

The good: This Droid (Verizon) offers fast performance, a big, eye-popping screen and luxurious design. It also has great call quality, lots of storage, 4G data speeds, and unbeatable battery life.

The bad: The major weakness is a camera that produces subpar images. The phone is filled with Verizon bloatware as well.

The cost: $149.99 to $299.99

The bottom line: Motorola’s fast, stylish Droid Razr Maxx HD offers outstanding battery life, but its camera captures unimpressive images.

Samsung Galaxy Beam

Rating: 3.5 stars out of 5 (Very good)

The good: An integrated pico projector, as well as a dual-core processor, 720p video capture and a 4-inch Super AMOLED screen.

The bad: The projection software needs some work, the 5-megapixel camera sometimes blurs indoor shots, and the Beam is thicker and heavier than many phones.

The cost: $474.49 to $839.99

The bottom line: Despite weak software, the Galaxy Beam’s bright projector pushes boundaries, and strong smartphone features make it a worthy standalone device.

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Norwegian Cruise Line to go public

In a long expected move, Miami-based Norwegian Cruise Line Tuesday announced plans to take the company public.

The company has registered an initial public offering of 23,529,412 ordinary shares with the Securities and Exchange Commission. The shares will be traded on the NASDAQ; no price has set been set.

The third largest ocean-going cruise line, Norwegian Cruise Line has 11 ships with itineraries in North America (including Alaska and Hawaii), the Caribbean, Bermuda, the Mediterranean and the Baltic. Genting Hong Kong - a subsidiary of Genting Group, a gambling and resort conglomerate that purchased the land currently occupied by The Miami Herald in 2010 for $236 million - owns 50 percent of the cruise line in a partnership with private equity firms Apollo Management and TPG.

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Billionaire Phillip Frost an ‘entrepreneur’s entrepreneur’

For that blind first date, a half-century ago, the young doctor, Phillip Frost, showed up at Patricia Orr’s family house in suburban New York, with an unusual gift: a miniature mushroom garden.

In the 50 years since, Frost, the son of a shoe store owner, has gone on to amass a fortune of $2.4 billion, according to Forbes magazine, becoming the 188th wealthiest man in the United States by developing and selling pharmaceutical companies. Along the way, he and Patricia have become major philanthropists in Miami-Dade County and they’ve signed a pledge to give away at least $1 billion more.

“He’s a relentless guy,” says Miami banker Bill Allen, who’s know him for more than 40 years. “He’s not afraid to take risks. ... He knows the intimate details of the chemistry of products, and he’s the kind of guy who can examine 50 deals while eating a sandwich.”

CNBC’s Jim Cramer recently praised Frost’s “incredible track record” for developing companies, calling Frost’s latest endeavor, OPKO Health, a “very risky” investment while noting it could offer huge gains under Obamacare.

But back in 1962, Patricia’s first impression was that Phil Frost was a bit of a nerd, finishing his medical internship with a strong interest in research — including mushrooms. She figured an academic career loomed.

“My mother was very impressed,” recalls Patricia, not so much by the M.D. behind Frost’s name but by the gift, something more serious than the usual flowers or candy. Serious was fine with Patricia, who was living at home while working toward a master’s degree in education at Columbia University. For their first date, they listened to a classical music concert.

Frost’s rise to riches may seem highly distinctive, but in an odd coincidence he has much in common with another prominent Miamian. Frost, 76, and car dealer Norman Braman, 80, both frequently appear on the Forbes list of wealthiest Americans. Both grew up in Philadelphia — Frost the son of a man who sold shoes, Braman son of a barber. Both are Jewish, well-known art collectors and philanthropists.

“He’s an entrepreneur’s entrepreneur,” says Braman. “We have a lot in common, coming from very poor families. But he went to Central High (a public school for exceptional students) and I was not qualified to go there.”

There are other differences. While Braman is voluble and highly visible in the causes he supports, Frost tends to be a reticent, almost shy speaker, given to careful pauses.

‘Lucky chances’

Told that a former colleague had called Frost “lucky,” Frost thought for a long moment. He could have cited many national business stories about his business acumen. Instead, he responded crisply: “I’ll be satisfied with lucky. I benefited from chance meetings.”

Frost spent his first years living above the shoe shop within an Italian market in South Philly. His two brothers were 15 and 16 years older. “I was an afterthought.”

The family was religiously observant, and Frost recalls his father singing him songs in Yiddish when he was small. He lived at home while attending the University of Pennsylvania, except for a year abroad in France. He took many science courses, but his major was French literature.

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Billionaire Phillip Frost an ‘entrepreneur’s entrepreneur’

For that blind first date, a half-century ago, the young doctor, Phillip Frost, showed up at Patricia Orr’s family house in suburban New York, with an unusual gift: a miniature mushroom garden.

In the 50 years since, Frost, the son of a shoe store owner, has gone on to amass a fortune of $2.4 billion, according to Forbes magazine, becoming the 188th wealthiest man in the United States by developing and selling pharmaceutical companies. Along the way, he and Patricia have become major philanthropists in Miami-Dade County and they’ve signed a pledge to give away at least $1 billion more.

“He’s a relentless guy,” says Miami banker Bill Allen, who’s know him for more than 40 years. “He’s not afraid to take risks. ... He knows the intimate details of the chemistry of products, and he’s the kind of guy who can examine 50 deals while eating a sandwich.”

CNBC’s Jim Cramer recently praised Frost’s “incredible track record” for developing companies, calling Frost’s latest endeavor, OPKO Health, a “very risky” investment while noting it could offer huge gains under Obamacare.

But back in 1962, Patricia’s first impression was that Phil Frost was a bit of a nerd, finishing his medical internship with a strong interest in research — including mushrooms. She figured an academic career loomed.

“My mother was very impressed,” recalls Patricia, not so much by the M.D. behind Frost’s name but by the gift, something more serious than the usual flowers or candy. Serious was fine with Patricia, who was living at home while working toward a master’s degree in education at Columbia University. For their first date, they listened to a classical music concert.

Frost’s rise to riches may seem highly distinctive, but in an odd coincidence he has much in common with another prominent Miamian. Frost, 76, and car dealer Norman Braman, 80, both frequently appear on the Forbes list of wealthiest Americans. Both grew up in Philadelphia — Frost the son of a man who sold shoes, Braman son of a barber. Both are Jewish, well-known art collectors and philanthropists.

“He’s an entrepreneur’s entrepreneur,” says Braman. “We have a lot in common, coming from very poor families. But he went to Central High (a public school for exceptional students) and I was not qualified to go there.”

There are other differences. While Braman is voluble and highly visible in the causes he supports, Frost tends to be a reticent, almost shy speaker, given to careful pauses.

‘Lucky chances’

Told that a former colleague had called Frost “lucky,” Frost thought for a long moment. He could have cited many national business stories about his business acumen. Instead, he responded crisply: “I’ll be satisfied with lucky. I benefited from chance meetings.”

Frost spent his first years living above the shoe shop within an Italian market in South Philly. His two brothers were 15 and 16 years older. “I was an afterthought.”

The family was religiously observant, and Frost recalls his father singing him songs in Yiddish when he was small. He lived at home while attending the University of Pennsylvania, except for a year abroad in France. He took many science courses, but his major was French literature.

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Needle reaches the inner groove for Spec’s

In the end, even the almighty Adele and Taylor Swift could not hold back the inevitable.

Spec’s, one of the last great record stores, will close its flagship location in Coral Gables on U.S.1, thus joining once-favored chains like Virgin, Tower and Peaches, locally and abroad, that have withered from Internet shopping.

With the closing, sometime in January after the merchandise is liquidated, 64 years of history becomes memory for countless people who discovered a love of music in the home Martin “Mike” Spector built in 1948 when U.S.1 was but a two-lane road.

The original store, which sold cameras alongside 78-rpm records, was a few blocks south on the highway in South Miami and is now an Einstein’s bagel spot. The present location, opened in 1953 in Coral Gables, lived through the bobby sox era, Beatlemania, disco, punk, hip hop/rap, grunge, electronic dance music and all the format changes including 12-inch vinyl, 45-rpm, reel to reel, 8-track, cassette, compact disc and mp3.

After the first music industry recession in the late 1970s, Spec’s still managed to double in size by breaking through the walls of two restaurants in 1980 on its north side. The original room on the south side of the building would house, first, Spec’s’ VHS movie rentals and sales — Saturday Night at Spec’s! — and, later, one of the most expansive collections of classical music in town.

“It’s the soundtrack of our lives,” said store manager Lennie Rohrbacher, who spent 23 years of his life working at Spec’s, from Clearwater to Coral Gables

Music sales

At its peak, the Spec’s chain grew to some 80 stores in Florida and Puerto Rico. In 1993, annual sales exceeded $70 million. Spec’s went public in 1985 and, in 1998, the Spectors sold to Camelot Music Group, which was acquired by Trans World Entertainment Corp.

Trans World, which did not return several telephone messages, shrewdly kept the Spec’s name attached to the flagship store as goodwill even though, technically, it operated under the company’s retail subsidiary, F.Y.E. (For Your Entertainment).

But those are the cold, hard business facts.

Spec’s was “not like another Eckerd’s,” a drug store chain that also slipped into oblivion amid changing times, said Rohrbacher. “This was part of the community, part of my life. It’s not another store going under.”

Indeed, Spec’s was, first and foremost, a community gathering spot to share a love of music. In the ‘70s and ‘80s Spec’s resembled a makeshift camp site where people would sleep overnight in the parking lot to get the best shot at concert tickets in a pre-Internet world. Spec’s, a hop-skip from the University of Miami’s music school, served as its own music education outlet thanks to a knowledgeable sales staff.

Music education

“The proximity to the UM is prime real estate. Not to have it there will really be different. Even if they didn’t have what I was looking for, the staff was knowledgeable and you were sort of tapping into this knowledge base of people who could turn you on to new music. That’s what I’ll miss about it and the community around the store,” said Margot Winick, an employee at the Coral Gables Spec’s in the mid-1980s when she was a freshman at the UM.

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AutoNation stock soars on sales spike

AutoNation, the national chain of dealerships headquartered in Fort Lauderdale, continues to reap the gains from a rebound in auto sales.

In December, sales of new vehicles jumped 15 percent at AutoNation. For the year, sales were up 20 percent. The new stats are better than the industry-wide numbers out this week, which forecast a 13 percent increase in sales of 2011 totals. That would bring 2012’s tally to 14.5 million new vehicles sold.

The numbers are still well below pre-recession peaks of 17 million set in 2005, but still capture the impact of an improving economy in the nation’s auto showrooms. AutoNation owns dealerships across the country, including South Florida’s Maroone chain.

The company’s stock soared 3 percent Friday to $41.88 a share after the release of the December sales numbers.

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Portion of Macy’s Flagler Street property in downtown Miami sold

A New York firm bought part of the Macy’s building in downtown Miami and is expected to acquire the rest. The next priority is negotiating a new lease to keep Macy’s as a tenant.

In a deal that could have implications for the future of downtown Miami’s anchor retail tenant, a New York real estate investment firm paid $15.55 million to acquire more than half the property that now houses Macy’s Flagler Street store.

The acquisition by Aetna Realty Group includes the 48,000 square feet of land that was leased to R.W. Burdine in 1917. Until the recent sale, the property was owned by 23 heirs of Richard and Harriet Ashby, who signed the initial 99-year lease with Burdine. The lease expires in 2016.

The Ashby family began taking steps to prepare the property at the intersection of Miami Avenue and Flagler Street for sale nearly four years ago, said Lewis R. Cohen, a GrayRobinson lawyer who represented the Ashby family in the transaction that closed on New Year’s Eve.

Over the years, Macy’s and its predecessor, Burdines, grew the site’s downtown presence well beyond the Ashby land, and the current building now extends another 30,000 square feet of land. Aetna has also made a commitment to purchase the remaining portion of the building, that is currently owned by Macy’s, Cohen said. But that deal hasn’t closed yet.

“That deal is a sure thing,” Cohen said. “They could not have closed with us without having an agreement with Macy’s completely nailed down.”

When Macy’s decided not to purchase the Ashby land itself, the owners soughta third-party that could control both pieces. The reason: Improvements made to the store over the years straddled both properties, such as elevators and escalators starting on one parcel and ending on another.

“Between the engineering difficulties of severing the properties and the legal issues involved, it would have been somewhere between extremely expensive and impossible” for different entities to share control, Cohen said.

Aetna was one of three bidders interested in the site, Cohen said. One of the other players was the Barlington Group, a Miami developer that in 2011 signed a deal with Macy’s to sub-lease 20,000 square feet of empty ground-floor space for a mix of restaurants and cafes.

Macy’s spokesman Jim Sluzewski said this transaction doesn’t impact Macy’s current lease. He declined to comment on any other pending transaction regarding the property the retailer owns in downtown Miami.

“It’s business as usual,” said Sluzewski, who also would not discuss Macy’s long-term plans for downtown Miami beyond the expiration of its lease. The company’s roots in downtown Miami date to 1898, when the first Burdines opened in a nearby downtown location.

Aetna and its local attorneys did not respond to calls Wednesday for comments.

But Cohen said Macy’s is in the process of finalizing a short-term deal with the new owners.

“They intend to stay for at least the foreseeable future,” Cohen said. “For a minimum of five years they’ll be there and possibly longer.”

Downtown scene

Macy’s long-term future on Flagler Street has been in doubt since 2007, when Macy’s Florida then-Chairwoman Julie Greiner took city leaders to task for the deplorable conditions in downtown and threatened that the retailer might leave.

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World markets rally after U.S. ‘fiscal cliff’ deal

LONDON --
The world’s financial markets breathed a huge sigh of relief Wednesday that U.S. lawmakers agreed on a budget deal that will stop hundreds of billions of dollars in automatic tax increases and spending cuts that risked plunging the world’s biggest economy into recession.

Stocks around the world started 2013 with hefty gains as investors welcomed the vote in the House of Representatives that made sure that the U.S. does not go over the so-called “fiscal cliff.” Though longer-term fiscal problems remain and President Barack Obama will likely face more battles with the Republican-dominated House, investors were relieved that the biggest near-term stumbling block to the world economy has been cleared.

“Investors are trading with a sense of relief after lawmakers in Washington agreed on a compromise to avoid the fiscal cliff that has been the dominant theme in equity markets since the presidential elections back in November,” said Mike McCudden, head of derivatives at stockbroker Interactive Investor.

In Europe, the FTSE 100 index of leading British shares jumped 2.2 percent to 6,028, its first foray above the 6,000 mark since July 2011. The CAC-40 in France rose 2.4 percent to 3,729 while Germany’s DAX was up 2.3 percent at 7,786.

Earlier, in Asia, Hong Kong’s Hang Seng index shot up 2.9 percent to close at 23,311.89, its highest finish since June 1, 2011. Australia’s S&P/ASX 200 surged 1.2 percent to close at 4,705.90, its best finish in 19 months while South Korea’s Kospi jumped 1.7 percent to 2,031.10.

Wall Street was likewise set to rally on the open – Dow futures were up 1.3 percent at 13,195 while the broader S&P 500 futures jumped 1.5 percent to 1,441.

The “fiscal cliff” deal is likely to remain the focus of attention in financial markets over the rest of the day.

The bill that Congress approved calls for higher taxes on incomes over $400,000 for individuals and $450,000 for couples, a victory for Obama. Earnings above those amounts would be taxed at a rate of 39.6 percent, up from the current 35 percent. It also delays for two months $109 billion worth of across-the-board spending cuts that had been set to start affecting the Pentagon and domestic agencies this week.

If lawmakers had not agreed by the Jan. 1, 2013 deadline on the new budget measures, more than $500 billion in tax increases would have hit the economy in 2013 alone. Government spending worth $109 billion would have been cut from the military and domestic spending programs.

Though fears over an imminent fall off the “fiscal cliff” have eased, investors still have a host of issues to worry about – not least the prospect of more debates over unresolved longer-term U.S. budget issues.

“Cynics will point out that another argument has been booked in for two months’ time, when the debt ceiling comes up for debate, and Republicans will be looking to make progress on the spending cuts that haven’t been featured in the New Year deal,” said Chris Beauchamp, market analyst at IG.

Investors will also keep a close watch on any response from the credit rating agencies. After a fight in Congress to raise the debt limit in 2011, Standard & Poor’s lowered the U.S. government’s AAA bond rating, citing the lack of a credible plan to reduce the federal government’s debt. It also voiced its concerns about the “effectiveness, stability and predictability of American policymaking.”

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