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California Business Properties Association

ICSC - BOMA California - NAIOP California - IREM California - RILA - Nareit - CALED - ACRE - AIR CRE



Matthew Hargrove

President & CEO



Melissa Stevens

Chief Operating Officer



Rex W. Hime

VP Strategic Communications



Crystal Whitfield

Executive Assistant



Rex S. Hime

Senior Advisor

CBPA

Weekly Update

May 13, 2022

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  • WAREHOUSE/LOGISTIC CENTER BAN HEADS TO FLOOR – CONTACT YOUR ASSEMBLYMEMBERS
  • TAXPAYER PROTECTION ACT - 2024 BALLOT
  • AIR RESOURCES BOARD DRAFT SCOPING PLAN - CBRT RESPONDS
  • CALIFORNIA BUDGET - GOVERNOR'S MAY REVISION $49.2B DISCRETIONARY SURPLUS
  • UNEMPLOYMENT INSURANCE FUND DEBT - REQUEST FOR MORE FUNDS
  • CALIFORNIA COMMERCIAL REAL ESTATE SUMMIT – POSTPONED
  • CBPA 2022 CALENDAR

Warehouse/Logistic Center Ban Heads to Floor -

Contact Your Assemblymembers

AB 2840 (Reyes) the bill that would create a de facto ban on most new warehouse projects passed Assembly Appropriations Committee on Wednesday with a partisan vote and will be heading to the Assembly Floor.

 

In the plainest language, AB 2840 attempts to stop the building of any facility 100,000 s.f. or more within 1,000 ft of a “sensitive receptor,” which has a broad definition but is basically most non-industrial uses. Additionally, all projects that are not banned due to proximity to a sensitive receptor must have a skilled and trained workforce agreement to be approved.

 

Even if your company doesn’t build/own these types of facilities, the precedent set by this bill will have a huge impact on all commercial real estate projects in the future.

 

Please contact your local Assemblymembers to talk to them about our concerns with AB 2840. To find your local representative, click here.

 

In addition to creating new statewide construction buffers in statute, the bill continues to mandate skilled & trained workforce requirements on all warehouse projects 100K s.f. and greater, circumvents local land uses processes, and ignores the nation’s strongest environmental laws. 

 

We will continue to work with our coalition partners, as seen on this formal opposition letter, to make sure the severity of the negative impacts this bill is communicated directly to legislators.

 

AB 2840 will disrupt California’s ability to move goods effectively and efficiently; will stop local economic development and redevelopment projects; and will kill high wage jobs in areas where they are needed most.

 

Contact your local Assemblymember and ask them to OPPOSE AB 2840!

Taxpayer Protection Act -

2024 Ballot

The Taxpayer Protection Act (TPA) which has collected over 1 million Signatures and will qualify for the November 2024 statewide ballot.


Below, please find a statement by the campaign on their commitment to the voters and updates on this initiative.


“Despite being on the streets for just three months, we have already collected more than 1.1 million signatures â€“ making us the most popular of all the ten measures that have been competing for signatures in this election cycle.


It’s clear that with our highest cost of living and state/local taxes that voters want more of a say over new and higher taxes in the future in addition to much-needed oversight and accountability for unelected bureaucrats who are making policy and regulatory decisions that raise costs on all working families. 


To ensure that voters have that say in the future, we have made the decision to keep our commitment to you (and the voters) by continuing to collect our full 1.5 million signatures to ensure we qualify for the ballot. By making this decision we are now moving forward for the 2024 election instead of the 2022 election. Rest assured: you will have the opportunity to support and vote for the Taxpayer Protection and Government Accountability Act in 2024.”

 

As we prepare to assure this important measure PASSES in the 2024, we will also be focusing on other important statewide ballot measures. We will also get more involved with helping to stop some of the local tax proposals using the Upland Loophole to pass taxes with a bare majority, 50% of votes, such as the L.A. City Real Estate Documentary Transfer Tax that will cost our industry $800M per year in that one city alone unless we stop it.

Air Resources Board Draft Scoping Plan - 

CBRT Responds

On May 10, the Air Resources Board released their Draft Scoping Plan Update for 2022.


Rob Lapsley, President of the California Business Roundtable issued a statement in response to these plans on behalf of the business community, addressing the rising cost of energy and transportation:


“We have and continue to support the state’s climate change goals. However, as we continue to implement our current policies, we are beginning to see the reality as the state transitions from goals to mandates. Working families are paying highest-in-the-nation gasoline prices, 50 percent more for residential electricity than they did just 10 years ago, and the highest inflation rate since June 1982. Just last week, state officials admitted as many as 4 million residents could be subject to rolling blackouts this summer due to inadequate electricity supply, while also stating that residential electricity rates will increase another 40-70 percent by 2030. On our current path, California families’ electric costs will increase by as much as 120 percent by the end of this decade.”


Lapsley continued,


“Businesses need certainty to grow and invest in jobs here. But our current policies have us facing an unpredictable and unreliable electric grid. Now the Air Resources Board (ARB) wants to make it worse by driving up energy and transportation costs even higher, which will be disproportionately paid by those who can least afford it. Inland regions of our state already pay up to 70 percent more for electricity than the more temperate—and often more affluent—coastal communities. And thanks to the state’s ongoing housing crisis, which has been exacerbated by climate policies, working families cannot afford to live near work and will again disproportionately pay for further gasoline increases and regressive policies like a vehicle miles traveled charge."


“Throughout the Scoping Plan process, we, along with the broader business community, have repeatedly raised concerns about cost to the ARB board and staff, stating that any final plan must appropriately consider the most cost-effective approach to achieving our climate goals. We already have a poverty crisis in California, partially driven by our transportation and energy costs. As this process moves forward, we encourage the ARB and Legislature to carefully consider the impact new policies have on working families, certainty, stability, and economic growth. If California is going to lead in transforming our economy through energy policy, we cannot afford to get it wrong. We must be able to show responsible, reasonable, and affordable policies that allow us to achieve our goals without driving families into poverty and businesses out of this state.”


As the Air Resources Board continues to move through the process with these plans, we also urge that any final plans must consider cost effectiveness and impact it will have on everyday Californians as well as the business climate as a whole.

California Budget - 

Governor's May Revision $42.9B Discretionary Surplus

This morning, California Governor Gavin Newsom proposed a $300.7 billion budget to provide relief for Californians. Led by GDP growth of 7.8 percent, the proposal includes a $97.5 billion surplus. The Governor’s proposal ensures that this year’s spending will not hamstring future budgets, calling for $37.1 billion in reserves including $23.3 billion for the state’s Rainy-Day Fund.

 

See below for some bullet points on the updated proposed California Budget. If you would like to get into the weeds on this proposal, click here.

 

  • $300.7B Total



  •  $49.2 Billion Discretionary Surplus ($97.5B Total Surplus)


  • 94% of surplus revenues spent on one-time expenditures


  • $18.2 Billion Inflation Relief

Emergency rent relief, utility bills, health care, etc.


  • $47.1B Climate Commitment

Wildfire, water supply, grid reliability, etc.


  • $37B Infrastructure

EV Charging, broadband, housing, etc.


  • $660M Public Safety

Organized retail crime, new officers, etc.

 

While funding for some of these categories increased, monies to aid the Unemployment Insurance Fund debt remains the same from the January proposal.


Read below to find out more on our pursuance of funds for this critical issue.

Unemployment Insurance Fund Debt -

Request for More Funds

We are part of a large CalChamber led coalition requesting $10 billion for Unemployment Insurance Fund (“UI Fund”) relief be included in the 2023 budget. We are asking for both short-term and long-term relief, as it is imperative to staving off the consequences of the UI Fund’s debt.

 

Specifically, we are asking for $1B to reimburse employers for the 2023/20024 tax increases. This would cover the payroll tax increases caused by the UI Fund’s Debt. Additionally, we are requesting $9B to reduce the outstanding debt and address future tax increases in 2025 and beyond.

 

Now is the time to protect California’s fledgling recovery by taking action on California’s UI Fund. California’s businesses are trying to re-hire and rebuild – and increasing per-employee taxes will only slow that recovery. Moreover, such spending is a win-win because it will simultaneously avoid Gann limit concerns and will help reduce the state’s future budget obligation.

 

To see the entire coalition and read our budget request letter, click here.

 

This is a high priority for our industry and the business community as whole, stay tuned for more news on this request in the coming weeks.

California Commercial Real Estate Summit -

Postponed

The California Commercial Real Estate Summit (CCRES) previously schedule for early June, is postponed because the lingering impacts of COVID restrictions made space availability an issue and the proximity with the primary election and a change in the legislative schedule is currently not conducive to securing meetings with legislators. 


As soon as venues are secured, and the exact date is settled more details will be sent about CCRES. We are aiming for the week of August 8.

 

CBPA respects your time and we do not want to ask you to travel to Sacramento unless it will be worth the effort and expense. We believe August is a better time this year.

 

Thank you for your flexibility and understanding that postponing CCRES is the prudent thing to do, we apologize for any inconvenience this causes.


CCRES is the one time of year that industry leaders from all sectors of the commercial, industrial, and retail real estate industry join come together from across the nation and hear from top policymakers and California State Legislators. 

CBPA Calendar 2022

Tuesday, June 7

CBPA Annual Board Meeting

Zoom


Tuesday/Wednesday, August 9-10 (Tentative)

California Commercial Real Estate Summit

Sacramento

 

Tuesday, November 15

CBPA Board Meeting 

Sacramento

 

For more information on any of our events, please contact Melissa Stevens at

916-443-4676 or mstevens@cbpa.com.

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