• Established in 1972 · CBPA has over four decades of service to the commercial industrial retail real estate industry
  • Archive for February, 2016

    Feb 26

    GROVE INTRODUCES LABOR REFORM PACKAGE

    Posted by CBPA | No Comments

    Assemblymember Shannon Grove (R-Bakersfield) has introduced a package of bills intended to make government-union books more transparent and allow member to have more say in representation.  AB 2753 would require public employee unions to post budgets online and make them available to members.  AB 2754 would mandate public employee unions hold an election every two years to ratify its continued representation of members.  At press time, both measures are given very long odds of moving through their first policy committees, even by the author.  Grove remarked to the press that the people that want to see the reforms be successful are not well represented on legislative committees

    Feb 26

    CBPA ENDORSES FACILITIES BOND ACT OF 2016

    Posted by CBPA | No Comments

    The California Business Properties Association (CBPA) has endorsed the Kindergarten Through Community College Public Education Facilities Bond Act of 2016. The measure, a $9 billion state school facilities bond to adequately fund school construction and modernization projects throughout the state, will appear on the November 2016 ballot.

    “Passing a state school facilities bond in November is going to accomplish important goals: provide an infusion of funds to move projects forward; create good paying jobs; and give students access to great schools.  This investment will strengthen California.” said Rex Hime, President and CEO.

    The last statewide school facilities bond was passed by California voters in 2006. The state’s fund to provide matching dollars to school districts that have already raised local funds for school construction projects has been effectively depleted, leaving a muti-billion dollar backlog of K-14 project applications in limbo. With estimates placing K-14 school construction funding needs for the next decade at more than $20 billion, the school facilities bond will be a significant step forward to address the state’s school construction needs.

    Passing the school bond in November will also help protect one of California’s most successful investment partnerships between the state, local school districts and private business. This successful partnership has been in place since 1998, providing safe and modern schools to millions of children and good paying jobs to regions across the state. According the Center for Strategic Economic Research, every $1.2 billion in annual new construction and modernization investment will create or support more than 15,000 jobs, and result in $2.5 billion in overall economic output benefits for California’s economy.

    “Continuing the investment partnership between the state, school districts, and the business community will help provide students with modern, safe school facilities equipped for their success,” concluded Hime.

    Passing the school bond in November is important to our state’s continued economic success. To find out more click here.

    Feb 26

    BOE SELECTS NEW CHAIR & VICE CHAIR

    Posted by CBPA | No Comments

    Earlier this week the Board of Equalization (BOE) selected Member Fiona Ma as its new Chair and Member Diane Harkey as Vice Chair. The other Board members include Jerome Horton, George Runner, and State Controller Betty T. Yee.

    The BOE meets monthly and is the only elected tax board in the country. They administer more than 30 tax and fee programs. During fiscal year 2014-15, the BOE managed $60.5 billion of revenue.

    New Vice Chair Harkey stated, “I look forward to another productive year working with my colleagues on the Board to help individual taxpayers, small business owners and our larger employers navigate the maze that is California tax policy, so that we may stimulate job growth and create opportunities for all Californians.”

    The BOE’s monthly meetings offer taxpayers and other interested parties opportunities to participate in the formulation of rules and regulations adopted by the Board.

    We look forward to a continued good working relationship with the BOE.

    Feb 26

    PROPERTY TAX SURCHARGE BALLOT MEASURE DROPPED

    Posted by CBPA | No Comments

    In a surprising move, the proponents of a measure to add a multi-billion dollar property tax on the 2016 ballot for social programs, have stopped collecting signatures and shut down the effort, vowing, however, that they will try again “another year.”  Proponents said the tax would raise almost $8 billion, with a majority coming from commercial properties.

    At last report, the “Lifting Children and Families out of Poverty Act,” had collected a quarter of the signatures needed to make the ballot and was successfully raising money from Hollywood activists.

    The reason give, by former BOE member Conway Collis:  “The 2016 ballot has become too crowded with too many revenue raising measures on it.” “Consequently it makes more sense to qualify early for a later ballot.”

    Political insiders believe, however, the abandonment of the proposition was due to a combination of factors, including the fact that the business community in the state were taking the threat seriously and vowing to push back on the measure.  Combined with the fact that the electorate still shows strong support for Proposition 13, the success of the measure was not assured and a long expensive battle loomed.  Finally, it is assumed that other powerful groups pushing for tax increases – such as extension of income taxes and more tobacco taxes – on the ballot pressured the proponents to move out of the way.

    This is the second property tax initiative that was planned for the 2016 ballot that has been dropped.  The first was a split roll property tax that was walked away from shortly after Governor Brown expressed concern about it.

    CBPA has strongly been arguing that such a tax increase would hurt the economy by raising rents, evaporating jobs, and have a negative impact on small businesses.

    Although there are many factors to the political calculus that goes into these decisions, the fact that the commercial real estate industry has had an ongoing education effort through the Californians to Stop Higher Property Taxes should not be underestimated.  Read more here.

    Feb 26

    ACCEPTANCE TESTING COULD INCREASE COSTS

    Posted by CBPA | No Comments

    A coalition of union groups are pushing an agenda item at the CA Energy Commission that could have an impact on the costs and complications for tenant improvements.  We are asking that members of our industry assist us in reviewing the proposals and provide input.

    According to CEC materials, “Acceptance Tests” ensure code compliance and promote optimization of efficiency and performance for nonresidential buildings. They serve to determine whether specific building components, equipment, systems, and interfaces between systems conform to criteria set forth in the 2013 Building Energy Efficiency Standards.  However, there are significant questions on whether the costs and added complications and time delays inherent in layering on more paperwork and inspections, is feasible or would even produce any value added or significant energy savings.

    The Energy Commission is holding a staff workshop on this issue February 29th in Sacramento.  Click here for more information about “acceptance testing” and please provide any feedback you may have.

    Feb 26

    2016 BUILDING EFFICIENCY STANDARDS SEMINAR

    Posted by CBPA | No Comments

    California’s building efficiency standards have been updated, with changes that will become mandatory in January 2017. This seminar will cover what’s new in Title 24 for both residential and non-residential buildings, from high performance walls and attics to lighting and lighting controls.

    The session will also review challenges that have resulted in implementing the 2103 standards, strategies for addressing them, and solutions to these challenges that may be included in the recent revisions.

    With each cycle, California’s Energy Code is moving closer toward the goal of ZNE for all new construction. It’s vital for you to stay up to date with its evolution.

    Click here for more information and to register.

    Feb 19

    BILL INTRODUCTION DEADLINE – TODAY!

    Posted by CBPA | No Comments

     Today is one of the busiest days in the California State Legislature.  A major hurdle, “New Bill Introduction Deadline,” is when the slow trickle of bills that have steadily increased becomes a tsunami.   All bills for the 2016 session must be introduced by today.  Each session nearly 2,500 bills are introduced and we identify upwards of 500 that have an impact on the commercial real estate industry.

    Yesterday nearly 400 bills were introduced; today we expect upwards of 600 more.  All of them will be read over the weekend.

    Stay tuned as we identify those bills and get them out to our legislative committee for analysis, prioritization, and discussions about positions.  Our “industrywide” legislative meeting is scheduled for March 17 – we look forward to your input!

    Feb 19

    CBPA ENDORSES SCHOOL BOND / OPPOSES PROPERTY TAX INCREASE

    Posted by CBPA | No Comments

    At its Board of Directors meeting earlier this week California Business Properties Association leadership reaffirmed its endorsement of the school bond measure that will appear on the November 2016 statewide ballot.  Additionally CBPA reaffirmed its opposition to the “Cortopassi Measure” which will appear on that same ballot and would require a statewide ballot vote for any public project using revenue bonds exceeding $2 billion.

    Furthermore, CBPA discussed at length the “Collis” effort which would undo Proposition 13 by applying a property tax surcharge on all properties with an assessed value exceeding $3 million, which is currently gathering signatures in hopes of going before voters later this year.

    For more information on these measures click the links below:

    Education Bond – School Bond (support)

    $2 Billion Bonds Need Voter Approval.  “Cortopassi” (oppose)

    OUT FOR SIGNATURE: Changes Prop 13. – Property Tax Surcharge. “Collis” Initiative (oppose)

    The CBPA Board also had a preliminary discussion about legislative and regulatory issues we are expecting to take up a significant amount of time in 2016 including, CEQA, ADA, Land Use, Water, Sustainable Freight Strategy, Affordable Housing, and much more!

    Feb 19

    BROAD COALITION COALESCING TO OPPOSE CORTOPASSI INITIATIVE

    Posted by CBPA | No Comments

     A broad range of Californian’s including business groups and labor groups have banded together to educate the public about an initiative that if passed would jeopardize many infrastructure projects across the state. Initiatives have not been assigned proposition numbers yet, so as of new it’s simply referred to as the “Cortopassi” initiative, after its primary proponent.  The ballot measure will appear on the June 2016 ballot, would erode local control and add new hurdles to building infrastructure projects in California by allowing voters in faraway regions to reject local infrastructure projects outside of their communities.

    The initiative is not receiving good reviews:  Governor Jerry Brown expressed opposition to the measure and through a spokesperson said it was “a really bad idea.” (LA Times 11/2/15).  Fitch Ratings said “it would constrain infrastructure financing and likely result in reduced investment over time, particularly for major water projects.” (11/19/15). The California Chamber of Commerce warned “this ballot measure is both deceptive and dangerous”.  The State Building and Construction Trades Council said the measure “threatens our economy and job-creation.” And the Bay Area News Group called the initiative “a disaster”. (BANG 11/6/15)

    We are part of a broad and growing coalition opposed to this measure and will keep you posted as it progresses and let you know what you can do to help.  Stay tuned!

    Feb 19

    REFORM HOW CA PAYS FOR ROADS

    Posted by CBPA | No Comments

    Our friend Loren Kay, President of the California Foundation for Commerce and Education, has some ideas about how to pay for roads and highways, and why your business should care and get involved.

     “California’s transportation finance system is running out of gas. Not literally, but the buck or two for each gas station fill-up is getting much less bang than it did a decade ago.

    “The Governor and Legislature are debating how to resolve a $5.7 billion annual mismatch between revenues and spending for road and highway upkeep. But any short-term fix reliant on the gasoline tax will only be a stop-gap measure.”

     Click here for the full op/ed.

    Feb 19

    ACCEPTANCE TESTING COULD INCREASE COSTS

    Posted by CBPA | No Comments

    A coalition of union groups are pushing an agenda item at the CA Energy Commission that could have an impact on the costs and complications for tenant improvements.  We are asking that members of our industry assist us in reviewing the proposals and provide input.

    According to CEC materials, “Acceptance Tests” ensure code compliance and promote optimization of efficiency and performance for nonresidential buildings. They serve to determine whether specific building components, equipment, systems, and interfaces between systems conform to criteria set forth in the 2013 Building Energy Efficiency Standards.  However, there are significant questions on whether the costs and added complications and time delays inherent in layering on more paperwork and inspections, is feasible or would even produce any value added or significant energy savings.

    The Energy Commission is holding a staff workshop on this issue February 29th in Sacramento.  Click here for more information about “acceptance testing” and please provide any feedback you may have.

    Feb 19

    2016 BUILDING EFFICIENCY STANDARDS SEMINAR

    Posted by CBPA | No Comments

    California’s building efficiency standards have been updated, with changes that will become mandatory in January 2017. This seminar will cover what’s new in Title 24 for both residential and non-residential buildings, from high performance walls and attics to lighting and lighting controls.

    The session will also review challenges that have resulted in implementing the 2103 standards, strategies for addressing them, and solutions to these challenges that may be included in the recent revisions.

    With each cycle, California’s Energy Code is moving closer toward the goal of ZNE for all new construction. It’s vital for you to stay up to date with its evolution.

    Click here for more information and to register.