CBPA Weekly Update 👋

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

June 3, 2022

ICYMI - WAREHOUSE/LOGISTIC CENTER BAN PASSES FLOOR CBPA RESPONDS
UNEMPLOYMENT INSURANCE DEBT - REQUEST FOR MORE FUNDS
ASSEMBLY SPEAKER TRANSITION - RENDON TO RIVAS
BIRD PROTECTION STANDARDS
SCOTT GROSSFELD - GLOBE ST RETAIL INFLUENCER OF 2022
CALIFORNIA COMMERCIAL REAL ESTATE SUMMIT – AUGUST 9-10, 2022
CBPA 2022 CALENDAR

ICYMI -

Warehouse/Logistic Center Ban Passes Floor

CBPA Responds

Matthew Hargrove, President and CEO of California Business Properties Association (CBPA), issued the following statement in response to the passage of AB 2840 (Reyes) on the Assembly Floor last week:

“AB 2840 breaks a key link in the state’s supply chain. It is a step backwards when the current pandemic illustrated how essential an efficient goods movement system is to Californians.”

CBPA stood with a diverse coalition of stakeholders to oppose the measure including several Labor Unions, the CalChamber who designated the bill as a Job Killer, and CBIA who designated the bill as a Housing Killer.

Hargrove continued, “Modern warehouses and logistics centers are major job creators as well as being among the most energy and water efficient buildings in the nation. The trucks that take products from warehouses to the desired locations are cleaner than ever and are well on their way to becoming emissions free.

AB 2840 by Assemblymember Reyes seeks to ban warehouse and logistics projects over 100,000 s.f. from being built within 1,000 feet of other non-warehouse buildings.

Due to strong objections from her colleagues, Ms. Reyes committed to narrowing the bill to only include Riverside and San Bernardino Counties. The bill then barely passed over the objections of representatives from those counties with the minimum votes and strong bipartisan opposition.

Hargrove continued, “By targeting the Inland Empire, this bill increases emissions by pushing critical infrastructure further from population centers, will stop local economic development and redevelopment projects, and kill high wage union jobs for contractors and their employees where they are critically needed.”

To view the press release, click here.

The bill is in the Senate awaiting assignment to committee. CBPA is urging the Senate Governance and Finance Committee to review the bill over concerns that it upends local planning authority for cities and counties, as well as undermines the nation’s strictest environmental law, CEQA.

The next major deadline is July 1, by which time the bill must be out of its Senate Policy Committee.

THANK YOU to all of you who have helped on this bill, and please stay tuned for more AB 2840 information in the coming weeks.

Unemployment Insurance 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.

Assembly Speaker Transition -

Rendon to Rivas

Over the last week there has been word of change in the future of Assembly Speakership. After Floor Session ended, Assemblymember Robert Rivas met with Speaker Rendon to share that he believes he has the votes to become the next Speaker.

Assemblymember Rivas seeks to be the next Speaker of the Assembly, as he begins to plan a succession plan with current Speaker Rendon. Earlier this week the two issued statements due to all the intrigue. Speaker Rendon stated,

“I applaud Robert Rivas for securing the support of a majority of the current Democratic Caucus to succeed me as Speaker of the Assembly,”

Rendon continued, “Assemblymember Rivas has brought together a broad and diverse coalition that reflects the high esteem in which he is held by our colleagues.”

Assemblymember Rivas released this statement,

“Anthony Rendon is serving us well as Speaker and we have a lot of important business in front of us,”

Rivas continued “I agree with the majority of our current caucus that Speaker Rendon should remain as Speaker for at least the rest of this legislative session. I look forward to working with him for the betterment of California and the unity of the Assembly Democratic Caucus.”

As they work together for a smooth transition, stay tuned on when the change will occur and what that means for the California State Assembly.

Bird Protection Standards

In 2019, the Building Standards Commission attempted to add in “Bird Friendly Design” to the California Green Building Standards Code but pulled back due to pressure from the business community on lack of involvement at the time.

Now these proposals are coming up in the process again.

Next Tuesday, June 7, the Building Standards Commission will be holding a workshop on codes and regulations regarding “Project-Bird Friendly Design” and we will be at the table to provide input along with other stakeholders.

This could impact your new buildings and plans by adding a financial burden and changes in regard to their window tint, paint, tree canopy and building glazing.

This workshop is meant to be information gathering to help with any plans moving forward. Stay tuned for more information on bird protection standards in California.

Scott Grossfeld -

Globe St. Retail Influencer of 2022

Scott Grossfeld has been named Globe Street’s “Retail Influencer” of 2022. Grossfeld has been a great ally to our industry for many years and is on the committee that puts on our bi-annual Industry Awards Dinner in Sacramento in Orange County.

With a more than 30-year industry background, Scott Grossfeld works as a top California attorney, representing clients in the retail real estate industry, including developers, owners, lenders, and investors, on a wide range of project types in all aspects of complex real estate transactions. As a partner with Cox, Castle & Nicholson, Grossfeld’s practice focuses on shopping center and other commercial development and leasing. For the past 20 years, he has served as the co-chair of Cox Castle’s retail and commercial development team of 15 attorneys, for which he generates new work for the firm, fosters new and existing client relationships, and manages team administrative functions.

He also participates in various Cox Castle strategic planning committees. He has comprehensive experience representing developers and property owners in all aspects of retail development, including the negotiation and drafting of leases, purchase and sale agreements, development and management agreements, reciprocal easement agreements, listing agreements and all other agreements related to the acquisition, construction, development and repositioning of commercial projects.

During his career, Grossfeld has negotiated millions of square feet of leases with almost every national and regional retailer in the U.S. at every type of retail project, including neighborhood, grocery-anchored, entertainment/lifestyle and power centers and regional malls. Among his many clients are a major Southern California luxury retail, hospitality, and residential developer that he has represented for more than two decades, including negotiating leases with significant retailers such as Amazon, Netflix, Nike, Apple, Gucci, Saint Laurent, Chanel and Samsung. For the past 20 years, he has held significant positions with ICSC, including roles on the ICSC Law Conference planning committee and the government relations committee.

Congratulations, Scott!

California Commercial Real Estate Summit -

August 9-10, 2022

The California Commercial Real Estate Summit (CCRES) previously schedule for early June, is now scheduled for August 9-10, 2022.

We apologize for the postponing, lingering impacts of COVID restrictions made space availability an issue and the proximity with the primary election and a change in the legislative schedule was not conducive to securing meetings with legislators.

We respects your time, and we did not want to ask you to travel to Sacramento unless it would 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.

In the very near future, more information on hotels, meeting space, and agenda items for the event will be provided as we prepare for a great CCRES!

We look forward to seeing you there!