The February Report
February 15, 2018
Congratulations James V. Camp Receives Honor
MORE IMPORTANT than the State of the Union speech was the fact our Past President Jim Camp was honored as the Chapter President of the Year by NAIOP Corporate at the recent Leadership and Legislative Retreat in Washington, D.C. Jim has been providing service to NAIOP at the National, State and local level for many years. Most of what Jim has done over the years has been behind the scenes, but his footprint is clear. When Jim sees an issue, no matter what it might be, he is all in. Clearly the thing that gains a lot of his attention is the legislative work. His dedication to the commercial real estate industry is very strong and he fights things he believes will be harmful. It is probably fair to say that if Jim had not gotten so engaged in the dual agency fight, that bill may have passed and dual agency would be banned in California. At the SoCal level, Jim was the long-time chair of the Legislative Affairs Committee and involved in plenty of local issues. Additionally, Jim has been the very long-term Chair of the NAIOP State Council which brings all the NAIOP Chapters in California together to work on common issues and to try to assist each other. This is a brief overview of Jim’s dedicated service! Again, congratulations, Jim. Well deserved.
Joining Jim at the Leadership and Legislative Retreat were So Cal members President Elect Pamela Westhoff, Membership Vice Chair Andy Bratt, Corporate Board Member Tom Wulf, Legislative Committee member Kevin Ivey, chapter Marketing and Communications Christina Hong, Legislative Affairs Director Peter Herzog and CBPA’s Matthew Hargrove. The SoCal delegation met with five members of congress and/or their staffs including two newly elected Representatives Harley Rouda and Katie Hill.
Important Issues Discussed with Congress Members
Information packets were left with Representatives that provided detailed information on NAIOP’s positions on key priority issues including Tax Policy, Energy Efficiency and Environment, Infrastructure and Transportation. Also delivered to lawmakers was a summary of NAIOP SoCal Regional Issues, which included information on Realistic Approach to Federal Clean Air Standards, California’s Infrastructure, Transportation and Goods Movement, and Poverty and Lack of Middleclass Jobs. Copies of these position papers are attached for the Board’s review.
Big Mistake – Tax Bill Changes 15 Year Depreciation to 40 Years!
While in Washington NAIOP members were updated on what is being referred to as a drafting error in the tax bill regarding Qualified Improvement Property (QIP). For tax purposes, building owners have been able to write-off the improvements to the interior portion of a building over 15 years. This was a bipartisan agreement when this was changed from 39 years a few years back. However, when the change was adopted it was not made permanent and has to be approved by Congress each year. Due to a typo or drafting error the current statute assigns QIP an appreciation life of 40 years instead of 15. NAIOP Corporate is working with members of Congress and allied business groups to get this error corrected. However, everything is difficult in today’s D.C. environment. A detailed description of this issue and NAIOP’s position is included in the Tax Policy position paper attached.
Rex Hime for California Senate District 1
Everyone knows by now that CBPA’s Rex Hime is running for a special election to fill the unexpired term of a resigned Senator in District 1. All NAIOP members are encouraged in joining NAIOP SoCal’s Political Action Committee in supporting Rex’s campaign with a generous contribution and signing up as an endorser of his campaign. This is a very competitive race and Rex needs all of our support. In the March 26, 2019 primary election Rex needs to finish in the top two out of six candidates. Once that is accomplished, he just needs to come in number one in the June 4, 2019 election. For more information on the race, to contribute and endorse visit his website at: www.rexhime.com.
Los Angeles County Public Arts Tax
Your Thoughts and Comments Would Be Helpful
We have been trying to work with the Los Angeles Arts Commission and Planning Department staff for some time on their push to require all new development in Los Angeles County to hire an artist to create a unique piece of art, contribute to artistic activities or pay an in-lieu fee of 1% of the construction cost of the project. This was actually supposed to be approved by the Planning Commission late last summer, but we have slowed it down. The County staffs claim they want our input which we have freely given, yet they still have not revised the art ordinance at all. It also appears likely the Planning Commission will approve some type of art ordinance. So, we are considering calling the County staff bluff, and actually doing a redline version with lots of changes, such as a lower cost, excluding industrial for safety reasons, not requiring an artist, incentives, having all processing costs and maintenance covered by the 1%, for example. We would appreciate your input if this sounds like a good strategy and any suggestions that might help make the art ordinance palatable.
NAIOP SoCal Forming an Issues Political Action Committee
Our chapter currently has what is referred to as a General-Purpose Political Action Committee (PAC). This committee can be used to make contributions to candidates and issues, but is limited to the amount that can be contributed to issues. For this reason, NAIOP SoCal is in the process of establishing an Issues PAC so that we are in a position to raise funds to help in the campaign to fight Statewide Split Roll when it is on the ballot in 2020. We need a few passionate commercial property/business owners to serve on the committee. If you are interested in serving on this new PAC or know someone who you would like to recommend, please contact Director of Legislative Affairs Vickie Talley – email@example.com – (949) 380-3300. This is not a large time commitment, but it is a very important one!
FACTS ARE IMPORTANT – Prop. 13 Is Good for ALL Californians
“The California Schools and Local Community Funding Act” is a special interest backed statewide ballot initiative that is qualified to appear on the November 2020 ballot. The measure attacks Proposition 13 and raises costs on California’s working families, small businesses, consumers and seniors. If passed it will require business property taxes to be reassessed to current market value – CREATING A SPLIT ROLL. It is an attack on Proposition 13. Jon Coupal of the Howard Jarvis Taxpayers Association outlines why Prop. 13 is Good for All California:
- Prop. 13 limits the tax rate on all real estate in California to 1% of the value of the property and limits annual property tax increases to 2% per year of assessed value.
- Renters benefit because Prop. 13 makes property taxes predictable and helps reduce upward pressure on rents.
- Business owners benefit because Prop. 13 helps owners’ budget and invest in their businesses – creating jobs.
- Local government and schools benefit because Prop. 13 provides a reliable and stable growing revenue source – even when real property values drop, property tax revenues go up.
- Neighborhoods benefit due to the fact that it helps to stabilize neighborhoods as residents are no longer driven out by unaffordable tax increases.
For the complete text of Coupal’s article: www.hjta.org/california-commentary/by-all-means-lets-educate-the-voters-about-proposition-13/ • Information on Split Roll visit Californians To Stop Higher Property Taxes: www.stophigherpropertytaxes.org