California Business Properties Association

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CBPA STAFF




Matthew Hargrove

President & CEO



Rex W. Hime

VP Strategic Communications



Crystal Whitfield

Executive Assistant



Rex S. Hime

Senior Advisor

CBPA

Weekly Update

September 23, 2022

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  • LA TAX MEASURES TARGET REAL ESTATE


  • CALCHAMBER CALLS FOR CHANGES TO NONEMERGENCY COVID DRAFT RULES



  • TO SIGN OR NOT TO SIGN - 1 WEEK LEFT FOR GOV NEWSOM TO ACT


  • GOV NEWSOM SIGNS PROHIBITION ON MINIMUM PARKING REQUIREMENT


  • FEATURE STORY: FREIGHTWAVES - GOODS MOVEMENT ALLIANCE ENTERS CALIFORNIA SUPPLY CHAIN ADVOCACY SCENE


  • COMPLETING DEVELOPMENT PROJECTS IN CALIFORNIA - FINANCE AND REAL ESTATE SUMMIT



  • 2022 CBPA CALENDAR

LA Tax Measures Target Real Estate

There are currently a dozen local measures using the hole recently blown into Prop. 13 by the courts to raise your taxes with a simple majority vote instead of a two-thirds vote as it has been since 1978. CBPA is sounding the alarm bell on all these measures and attempting to coordinate efforts to stop them.  


The city of Los Angeles has two tax measures on the November ballot that seek to raise $1.1 billion in taxes from property owners. Below is a brief description of the two measures:

 

  • Measure SP – Parks & Recreational Facilities Parcel Tax - $227M/year for 30 years ($6.8 billion)
  • Ordinance ULA -- by “United to House L.A.” - $800M/year on ALL properties -commercial and residential 
  • 4% transfer tax on properties above $5M
  • 5.5% transfer tax on properties above $10M 

 

ULA and SP will drive up the cost of everything we buy and use – from housing to groceries, and from gas to daycare – and will drive up costs for renters and small businesses by at least 6% a year.

 

And make no mistake, ULA and SP will drive up the property taxes of every homeowner in Los Angeles, dismantling decades of Prop 13 protections!

 

With inflation raging at 9% a year, we should not raise any property taxes that make it more expensive to live or work in Los Angeles!

 

CBPA is helping lead the effort to defeat both measures. To help protect our members in Los Angeles against these outrageous tax increases, we are an active member of the Angelenos Against Higher Property Taxes – No on ULA and SP Committee, which has just launched.


Visit the website and stay tuned for how you can help in this battle.

CalChamber Calls for Change

to Nonemergency Covid Draft Rules

The Cal/OSHA Standards Board’s draft proposal to extend the state’s COVID-19 regulation for another two years—with some significant changes from the COVID-19 emergency regulation—still needs adjustments.

 

We are part of a coalition led by the CalChamber, calling for these adjustments.

 

One specific provision that we are calling for changes for has to do with the definition of “close contact” and could impact your day to day significantly.

 

The recent shift from the 6 feet/15 minutes definition to a new definition that treats all workers who “share the same indoor airspace” as close contacts has been a “mess of confusion” for California employers, the CalChamber commented. The prior definition prioritized those at greatest risk and was feasible to enforce. Despite the efforts of the California Department of Public Health (CDPH) and Cal/OSHA to draft frequently asked questions, the new analysis remains ambiguous at best, and particularly difficult for smaller employers.

 

The COVID-19 emergency regulation was first put into place in the fall of 2020 and has been repeatedly extended (including via the unusual step of an Executive Order [N-23-21]), but it will expire on December 31, 2022.

 

Click here for Cal/OSHA’s website and more details.

To Sign or Not to Sign -

1 Week Left for Gov Newsom to Act

The Governor has until September 30 to sign or veto bills passed by the Legislature before Sept. 1 and in the Governor’s possession on or after Sept. 1. The Governor has already acted on some which you can read more on below.

 

Here is a focused list of priority bills that we worked on to advance or protect the office, industrial, and retail real estate industry. Many are now on the Governor’s Desk awaiting veto or signature. Many others did not make it through the Legislative process but rest assured – they will be back.

PRIORITY BILLS

Gov Newsom Signs Prohibition on

Minimum Parking Requirement

Governor Newsom signed AB 2097 (Friedman) into law, a bill that would prohibit public agencies from imposing or enforcing parking minimums on developments within ½ mile of a major transit stop.

 

AB 2097 will eliminate requirements that homes and commercial buildings near transit or in neighborhoods with less car use be built with more parking than is necessary. By reducing the overbuilding of parking, this bill would reduce traffic, greenhouse gas emissions and air pollution, reduce the cost of housing to renters and homeowners, and improve the prospects of small neighborhood businesses fighting to survive during the pandemic.

 

Stay tuned for the final week of bills and the Governor’s action on them that will impact your business.

Feature Story: FreightWaves -

Goods Movement Alliance Enters

California Supply Chain Advocacy Scene

As California's supply chains continue to face challenges from overcrowded ports, labor shortages, and traffic congestion, the need for coordinated response from California's business community has never been more urgent. That's why we (CBPA and CBRT) formed a new coalition under the Goods Movement Alliance to urge common sense solutions on goods movement issues at all levels of government.


FreightWaves published a piece on the Goods Movement Alliance launch and importance, quoting Matthew Hargrove below:

 

“Between the docks and warehouses of Southern California and the state’s AB5 law on independent contractors, California plays an outsized role in the U.S. logistics sector.

 

And now a lot of once disparate groups that were exposed to supply chain issues but had never worked together on shared interests have a new umbrella under which to stand.

It is called the Goods Movement Alliance. Formed in August, the alliance was described by Matthew Hargrove, its co-chair, as mostly an association of associations that has come together because of their interests in supply chain issues in the Golden State.

 

Hargrove himself is the president and chief executive officer of the California Business Properties Association (CBPA), which includes such supply chain-focused companies as warehouse operators. 

 

“Some of our main members are some of the largest commercial real estate companies,” he said. 

While the supply chain events of the past year or two may have been the catalyst for the final push to create the Goods Movement Alliance, Hargrove said in an interview with FreightWaves that the momentum is not new. 

 

“We were getting hit with transportation issues,” Hargrove said of recent events that impacted his members with CBPA. “We were asked by the California Trucking Association to pay more attention to the trucking and greenhouse gas issues coming together.””

READ MORE

Completing Development Projects in California -

Finance and Real Estate Summit

Private-sector partners are invited to join California’s largest economic development association (California Association for Local Economic Development: CALED) on October 12 & 13 in Riverside, CA at a Finance and Real Estate Summit to discuss ways to move development projects from concept to completion in California – that includes strategizing a policy agenda for the next legislative session to address financing tools, barriers, and opportunities.

 

The agenda includes expert speakers walking you through how to address different components of completing projects in today's complex environment. We will also hold a teaching tour of specific projects in downtown Riverside and wrap up with an optional breakfast on the 13th to strategize a policy agenda to complete economic development projects in California.

 

For more information and to register, click here. For questions, please contact CALED Program Director, Michelle Stephens.

2022 CBPA Calendar

Tuesday, November 15


CBPA Board Meeting: 1:30 p.m. – 4:30 p.m.

Zoom

 

For more information on any of our events, please contact Crystal Whitfield at 916-443-4676 or cwhitfield@cbpa.com.

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