Beginning January 1, 2013, a new 3.8% Medicare tax will take effect, while at the same time many of the tax cuts and incentives

passed over the past several years are scheduled to “sunset” on December 31, 2012 if Congress fails to take any action after the Presidential election.

The Patient Protection and Affordable Care Act, known as Obama Care, includes a new 3.8% Medicare tax for interest, dividends, passive income, i.e., capital gains for single taxpayers earning more than $200,000.00 per year, and married taxpayers earning more than $250,000.00 per year. The 3.8% Medicare tax does not apply to IRA or other retirement assets. In addition, if these taxpayers are working, there will be an additional payroll tax of .9% over the thresholds of $200,000.00 (single) or $250,000.00 (married).

In addition to Medicare tax increases, the “sun-setting” provisions (those that will take effect without any action of Congress) include: 1. Long Term Capital Gains. The current rate of 15% will increase to 20% and, therefore, with the additional 3.8% Medicare tax, the total rate on capital gains will be 23.8%.

2. Personal Income Tax Rates. Presently our tax rates range from 10% to 35%, and these will increase to 15% up to a maximum rate of 39.6%. 3. Dividends. The so-called Bush tax cuts changed the treatment of dividends from ordinary income to capital gains rates, which are currently 15%. The sunsetting of these tax cuts will result in dividends being taxed at ordinary income rates of up to 39.6%, together with the 3.8% Medicare tax, resulting in a total tax rate of 43.4% on dividends for higher earners.

In addition to the income tax changes, there are several important estate and gift tax changes that are scheduled to occur if there is no con-gressional action prior to year end, including: 1. Lifetime Exclusion Amounts. The current $5,000,000.00 exclusions amounts for gift, estate and generation-skipping taxes will be reduced to $1,000,000.00. 2. Tax Rates. The current rate of 35% will increase to a maximum rate of 55%. 3. Portability. The ability of a surviving spouse to utilize any unused exemptions of a deceased spouse ends on December 31, 2012.

If you would like any additional information or wish to make any changes to your estate plan in anticipation of these changes, please contact our Estate Planning department. Contact Jenifer at jschembri@blalockwalters.com

BLALOCK WALTERS REviEW

· Blalock Walters Has Expanded the firm’s Business and Health Care Practice Areas by Welcoming Attorney Ann Breitinger

· Three Additional Blalock Walters Attorneys Have Attained an AV Rating

· Message From The Partners

· What Do You Mean My Business is Not ADA Compliant?

· Jonathan Fleece Has Won Health Care Hero of the Year

· The River Grande Hotel Revitalization – A Textbook Example of Effective Public-Private Partnerships

· Street Vacation Obtained to Help Secure Manatee High School Campus

inSidE ThiS EdiTiOn

Tax Law Changes Scheduled January 1, 2013

Join Us On:

Jenifer S. Schembri, Esq.

W E M A K E A D I F F E R E N C E . FOuRTH QuARTER 2012

Mark P. Barnebey | PrincipalLand Use, Local Government, Real Estate

Robert G. Blalock | PrincipalBanking, Business, Estate Planning, Real Estate

Ann K. BreitingerBusiness, Health Care

Anthony D. Bartirome | PrincipalEstate Planning, Estate & Trust Administration, Tax

Lisbeth P. BruceLand Use, Real Estate

Marisa J. DaviesBusiness Litigation

Jonathan D. Fleece | PrincipalBusiness, Health Care

Dana Carlson GentryEstate Planning

Charles F. Johnson, III | PrincipalBusiness Litigation

Mary Fabre LeVine Business Litigation

Melanie Luten | PrincipalBusiness, Real Estate

Michael D. MagidsonBusiness, Health Care

Fred E. Moore | PrincipalBusiness Litigation, Labor and Employment

Stephen G. Perry | PrincipalBanking, Real Estate

Matthew R. PlummerBanking, Real Estate

William C. Robinson, Jr. | PrincipalBusiness, Land Use, Real Estate

Scott E. Rudacille | PrincipalLand Use, Local Government, Real Estate

Jenifer S. Schembri | PrincipalBusiness, Estate Planning, Tax

Robert S. Stroud | PrincipalBusiness, Health Care, Real Estate

Clifford L. Walters, III | PrincipalBusiness, Estate Planning, Land Use, Real Estate

Matthew D. Westerman | PrincipalBusiness Litigation, Immigration, Labor and Employment

OuR ATTORnEyS

941.748.0100 tel 941.745.2093 faxwww.blalockwalters.com

BradenTon802 11th Street WestBradenton, FL 34205

SaraSoTa2 North Tamiami Trail, Suite 408Sarasota, FL 34236

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Blalock Walters is pleased to welcome attorney Ann Kathryn Breitinger to our Business and Health Care Practice Groups. Ann counsels clients regarding entity formation, business governance issues, business transactions and health care transactional and regulatory matters. She also audits and analyzes arrangements under fraud and abuse, fee-splitting statutes, Stark II, related anti-referral laws, HIPAA and HITECH Act and Medicare and Medicaid rules and regulations.

Ann received her B.A. from DePauw university, cum laude, and her J.D. from Saint Louis university School of Law, where she also received a Certificate of Concentration in Health Law. She was a staff editor of

the Saint Louis university’s Journal of Health Law and Policy; a member of the Health Law Moot Court Competition Team; and received Saint Louis university’s Academic Excellence Award in Business Associations. She is a recurring contributor to the “Of Note” Section of Health Care Ethics uSA, as well as a guest columnist for JuRIST.

Her legal Internships included the Office of the General Counsel for the Iowa Governor’s Office, Families uSA in Washington, D.C., and Advocacy and Outreach of Blank Children’s Hospital in De Moines, Iowa.

The Firm is thrilled to have Ann as a part of its Health Care and Business Services Practice Groups. Her skills and dedication to clients and our community fit the “we make a difference” culture of Blalock Walters. We are so fortunate to have her join the firm and add to our continued growth and success. Contact Ann at abreitinger@blalockwalters.com

Blalock Walters Has expanded the firm’s Business and Health Care Practice areas by Welcoming attorney ann Breitinger

Ann Kathryn Breitinger, Esq. and Judge Moreland

Ann Kathryn Breitinger, Esq.

To ensure compliance with Treasury Department regulations, we advise you that, unless otherwise expressly indicated, any tax ad-vice contained in this communication (including any attachments) was not intended or written to be used, and cannot be used, for the purpose of (i) avoiding tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions or (ii)

promoting, marketing or recommending to another party any tax-related matters addressed herein. This publication is not intended as legal advice, which may often turn on specific facts. Readers should seek legal advice before acting with regard to the subjects mentioned herein. Citations omitted due to space limitations but available upon request.

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MeSSage FroM THe ParTnerS

Some years ago when our firm determined to publish a newsletter on a regular basis we made some basic decisions. One of these was that we would use the work of our attor-neys -- not “canned” writings furnished to us by a publishing company which does not have specific knowledge as to the interests of our clients or our community.

Our firm is divided into several Practice Areas: Banking, Business, Business Litigation, Estate Planning, Estate and Trust Administration, Health Care, Immigration, Labor and Employment, Land use, Local Government, Real Estate and Tax Law. Each area in rotation is asked to provide an article for the newsletter on a regular basis, keeping in mind what our attorneys believe to be the interest of our clients and colleagues.

The topics covered in this newsletter include: How and why a street vacation was obtained to improve security at Mana-tee High School; the exciting status of The River Grande hotel revitalization; surging issues surrounding ADA compliance in your businesses; and tax law changes scheduled for 2013. We are of the opinion this system results in articles that are fresh and currently topical as there is no lag-time between the writing and the publication of the article.

Another advantage to our publication is that it showcases the talents and abilities of our attorneys. Quite frankly, we are proud of our attorneys and the wide range of expertise they bring to better serve our clients. We hope you concur.

Robert G. Blalock, Esq.

Congratulations to our attorneys Anthony D. Bartirome, Dana Carlson Gentry and Lisbeth P. Bruce who have received AV Preeminent Ratings by their peers, according to LexisNexis Martindale-Hubbell.

The Martindale-Hubbell® Peer Review Ratings™ are an objective indicator of a lawyer’s ethical standards and professional

ability. Attorneys receive Peer Review Ratings™ based on evaluations by other attorney members of the Bar and the judiciary. AV Preeminent is a significant rating accomplishment and a testament to the fact that a law-yer’s peers rank him or her at the highest level of professional excellence. Almost one-half of Blalock Walters’ attorneys are now AV Rated.

Tony practices primarily in the areas of Estate Planning, Charitable Giving and Estate and Trust Administration, with an emphasis on Estate, Gift and Generation Skipping Transfer Taxation. He also assists families with Trust and Probate Administration includ-ing Ancillary Probate Administration.

Dana’s practice concentrates in Estate Planning and Wealth Preservation, Retirement Planning, Estate and Gift Taxation, Generation Skipping Transfer Taxation, and Trust and Probate administration including An-cillary Probate Administration. She is Board Certified in Wills, Trusts and Estates by The Florida Bar.

Lisbeth’s law practice focuses primarily on real estate related transactions and real estate development. She represents individuals and companies in pur-chasing, selling, leasing, and developing real estate.

Three additional Blalock Walters attorneys Have attained an aV rating

941.748.0100 tel 941.745.2093 faxwww.blalockwalters.com

BradenTon802 11th Street WestBradenton, FL 34205

SaraSoTa2 North Tamiami Trail, Suite 408Sarasota, FL 34236

WE MAKE A DIFFERENCE

A surge of Americans with Disabilities Act lawsuits against business and property owners is again sweeping our area from Marco Island to Tampa, hitting shopping centers, motels, restaurants, resorts, bars, gas stations, and movie theaters, among others. As of January

26, 1992, the Americans with Disabilities Act (ADA) generally required property owners to remove barriers to allow access for disabled individuals in existing structures which are “public accommodations.” A public accommodation is defined as a business which is open to the public, and includes virtually all retail businesses, medical offices, and other places where members of the public may avail themselves of goods and services offered by a business.

Who is liable and what must be done? The ADA requires property owners and tenants/business operators to comply with the law’s requirements. For buildings built before 1992, and which have not been renovated, architectural barriers to disabled persons must be remediated to the extent “readily achievable.” Readily achievable is defined as barrier removal which is able to be carried out without much difficulty or expense. The ADA Accessibility Guidelines (ADAAG) contains a list of 21 generally recommended modifications usually considered to be readily achievable.

Can plaintiffs in these lawsuits force expensive building renovations? No, for existing pre-1992 structures, only readily achievable barrier removal is required. In addition, there are certain defenses which can be raised, for example, that certain changes may be technically infeasible, such as a parking area which is sloped for drainage reasons that cannot be made level without incurring substantial expense.

New construction must be built to current building code standards including adherence to requirements of the new ADAAG. Therefore, when purchasing or leasing property, it is important to review existing building conditions to determine whether changes are required in order to comply with the ADA, prior to purchase and/or opening a new business. Leases often designate who will be the responsible party for ADA compliance and these obligations should be negotiated carefully between the parties.

For further information about your ADA issues, please contact Mary Fabre LeVine at Blalock Walters 941-748-0100, or email: mlevine@blalockwalters.com

What do You Mean My Business is not ada Compliant?

Mary Fabre Levine, Esq.

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SunCoaST CoMMuniTieS BLood Bank driVe

Blalock Walters is proud to have participated in our semi-annual Suncoast Communities blood bank drive held at our offices. Many of our employees gave and we thank everyone for supporting our community in this important endeavor.

To ensure compliance with Treasury Department regulations, we advise you that, unless otherwise expressly indicated, any tax ad-vice contained in this communication (including any attachments) was not intended or written to be used, and cannot be used, for the purpose of (i) avoiding tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions or (ii)

promoting, marketing or recommending to another party any tax-related matters addressed herein. This publication is not intended as legal advice, which may often turn on specific facts. Readers should seek legal advice before acting with regard to the subjects mentioned herein. Citations omitted due to space limitations but available upon request.

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Congratulations to our very own Jonathan Fleece on winning the 2012 Health Care Heroes of the Year award in the Non-physician category, and to all finalists who were honored on October 9, 2012 at the Tampa Bay Business Journal event. The awards program brings focus to the big and little miracles performed by people who have dedicated their lives to helping others.

Jonathan is the firm’s Health Care Practice Area leader where he advises professionals and businesses on how to strategically plan for success during

the sweeping changes that are coming over the next decade. He is Board Certified in Health Law by The Florida Bar.

Jonathan is also the acclaimed co-author of The New Health Age: The Future of Health Care in America. He is Founding Chair of the Manatee County Health Care Alliance, Inc.; Chair of the Manatee Chamber’s Health Care Committee; and on the Board of Tidewell Hospice.

We celebrate in the reflected glory of Jonathan’s recognition as he is the first to say it was the support he received from all of you and his family that enabled him to jumpstart the New Health Age.

Jonathan Fleece Has Won Health Care Hero of the Year announCeMenTS

Mark Barnebey has been elected Secretary of Manatee Economic Development Corporation, and also

as Secretary for the Florida Railroad Experience.

ann Breitinger has joined the Leadership Committee of Manatee Young Professionals

Marisa davies, Litigation, was appointed as a Barrister in Judge John M. Scheb, American Inn of Court.

Tidewell Hospice announced its 2012-13 Board of Trustees to include Jonathan Fleece.

Charles Johnson has been appointed to the Board of Directors of the Manatee Education Foundation.

Jenifer Schembri has been elected to the Executive Committee of the Asolo Repertory Theatre Board of Directors.

Will robinson has been appointed by Governor Rick Scott to the Twelfth Circuit Judicial Nominating Commission.

Scott rudacille has been appointed as a Planning Commissioner by the

City of Holmes Beach Planning Commission.

Jonathan & Amy Fleece

941.748.0100 tel 941.745.2093 faxwww.blalockwalters.com

BradenTon802 11th Street WestBradenton, FL 34205

SaraSoTa2 North Tamiami Trail, Suite 408Sarasota, FL 34236

WE MAKE A DIFFERENCE

During the boom of the 1920s, the Manatee River Hotel was constructed along the banks of the Manatee River and its historic splendor included serving as a Prohibition-era play-ground for the rich and famous. unfortunately, over the past decade, the building has fallen

into disrepair and one of the most historic buildings in Manatee County faced a dire prospect of having to be demolished, given its age and deteriorating condition.

Fortunately, The Widewaters Group, Inc. acquired the property and soon thereafter began strategizing with government partners to make the redevelopment of the site a reality. Widewaters’ planned a $15 Million Dollar renovation project which included redeveloping the site into a modern hotel, with the amenities that twenty-first century guests expect. Given the scope of the redevelopment and current market conditions, public-private partnerships with federal, state and local governments were critical to the success of the redevelopment project.

The federal government’s historic preservation tax credit program and the state government’s Brownfield program first allowed certain tax credits to be granted given the historic preservation and the environmental remediation that would occur on the property.

A major step was the successful negotiation and approval of a devel-opment agreement with the Bradenton Community Redevelopment Agency, which allowed certain property tax abatements, cash contri-butions and public street improvements along the frontage of the property. The development agreement was unanimously ratified by the Bradenton City Council. The Council also approved certain off-site

parking rights allowing patrons of the hotel to park in existing public spaces nearby.

Finally, Manatee County, through its economic development incentive grant program approved cash contributions along with parking rights to a county-owned lot near the property.

From the federal government level on to the local government level, the project’s success was tied to obtaining these public-private partnerships. “Without the support of the Bradenton community, specifically the Bradenton CRA, City Council and the Manatee Board of County Commission, the redevelopment of the Manatee River hotel would not have occurred. It took a collaborative effort from all levels of government to bring this historic redevelopment to reality” said Brian Long, Director of Development for Widewaters.

All of the incentives were tied to employment and historic preservation construction standards, which the project hopes to meet when it completes the project in late 2013. Blalock Walters is extremely proud to have represented Widewaters in both acquiring the hotel property and negotiating several of these public-private partnership agree-ments. Once the redevelopment project is completed and the hotel is open for business, one of Bradenton’s most historic buildings will be restored, adding a new hotel with major employment and economic benefits to downtown Bradenton, and Manatee County will be a reality that we all can be proud of.

Will Robinson is a Principal in our Real Estate and Land Use Practice Areas. Contact Will at wrobinson@blalockwalters.com

The river grande Hotel revitalization – a Textbook example of effective Public-Private Partnerships

William C. Robinson, Jr., Esq.

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To ensure compliance with Treasury Department regulations, we advise you that, unless otherwise expressly indicated, any tax ad-vice contained in this communication (including any attachments) was not intended or written to be used, and cannot be used, for the purpose of (i) avoiding tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions or (ii)

promoting, marketing or recommending to another party any tax-related matters addressed herein. This publication is not intended as legal advice, which may often turn on specific facts. Readers should seek legal advice before acting with regard to the subjects mentioned herein. Citations omitted due to space limitations but available upon request.

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Litigation attorney Fred Moore and team Running Up a Tab completed the Ragnar Napa relay race benefitting the San Francisco Police Activities League. Runners from all over the country came out and conquered the 187-mile course through the wine country of Northern California this past September.

Each team required 12 runners, two support vehicles, and three volunteers. Runners started at the Marina Green on the San Francisco Bay, crossed the Golden Gate Bridge, wound their way through Marin toward Petaluma, then crossed to Sonoma, Napa, and finally arrived at the finish line in Calistoga.

Kudos to Fred and his team for completing the race. We thank Fred for continuing to make a difference in the lives our youth.

Fred Moore Completes ragnar relay race from San Francisco to Calistoga

Mark Barnebey, as attorney for the School Board of Manatee County, assisted in obtaining the vacation and closing of a portion of 32nd Street West in Bradenton. A street vacation is sometimes proposed when the benefits of the County or City controlling this area of

a street (or vacant right-of-way) are outweighed by the benefits of deeding the property to the adjoining property owner. usually, if vacated, the property subject to the street vacation will be divided equally between adjoining property owners.

In this case, 32nd Street West, which divided parts of the Manatee High School campus, created a significant health and safety issue for students at the high school.

Although the road was closed during school hours, accidents had occurred with students crossing the street after school activities, when the road was reopened. More importantly, even when the street was closed, pedestrians could not be restricted from using this area because of the public nature of the area. This allowed potentially disruptive, dangerous or inappropriate people to mingle with students and staff during school hours without the ability of the school officials or police to make them leave.

The long term plan for the vacated street is to provide a landscaped and integrated campus setting for this area of Manatee High School. Additional security and safety features should benefit the educational experience for students and faculty of Manatee High.

Mark is a Principal and group leader of our Local Government and Land Use Practice Areas. He is Board Certified in City, County and Local Government Law by The Florida Bar. Contact Mark at mbarnebey@blalockwalters.com

Street Vacation obtained to Help Secure Manatee High School Campus

Mark P. Barnebey, Esq.