UPCOMING EVENTS
June 17
Real Estate Investment & Finance RPA Course
June 18
Transportation Toolkit Workshop
July 9
President's Mixer
July 14
BOMA, CREW, IFMA, NAIOP & The Registry Joint CRE Program
July 23
Paella in the Pavilion
Our Monthly Luncheon
Moves Outdoors
July 31
TOBY Entry Deadline
August 8 
Silicon Valley CRE
Community Clean-Up Day
August 13 
Summer Mixer @Gordon Biersch
August 20
Emergency Preparedness
Workshop
August 20
Monthly Luncheon
August 28
BOMA & Bauer's Wine Tour
 
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  JUNE 2015

President's Message

Summer is upon us!
I just returned from my first California Commercial Real Estate Summit in Sacramento. Our Government Affairs Committee Chair, Sarahann Shapiro of Pahl & McCay, has been attending this event for the last 10 years on our behalf. She appreciated having me and President Elect Rebecca Barnes of LBA Realty join her and we are both so glad we did.

With us at the CRE Summit were representatives from BOMA Cal, NAIOP, numerous BOMA associations from around the State, ICSC, and the California Chamber of Commerce. The first afternoon was spent discussing what bills were in process, those already voted on and which ones were a priority for the next day when we met with our Assembly and Senate leaders. We broke up into groups of 4 and went to the Capital to see our assigned representatives or their aides. We had the opportunity to tell them which bills we as an industry supported and which ones we opposed and why. (See a brief summary of the Summit in the article below.)

There is so much happening and we at BOMA SV are working on the best way to get this information to our members. Our goal is to hit the highlights, thus making it easier to understand what each bill is about and the consequences both good (and not so good) were it to pass.

I know I will find this helpful!

Sincerely,

California Commercial Real Estate Summit Meets

The annual California Commercial Real Estate Summit (CCRES) was held at the State Capitol in Sacramento earlier this month. The CCRES is organized by the California Business Properties Association, of which BOMA California is a member. Nearly 85 real estate leaders from throughout the state came together for the summit to advocate on behalf of the commercial real estate industry. Seventeen "teams" of advocates met with staff representing more than one-third of the state's legislators.

Issues discussed included reforming disability access legislation to make it easier for businesses to address public access violations; reducing requirements for entities that acquire automated external defibrillators, including scaling back training requirements for employees; and allowing funds from the Greenhouse Gas Reduction Fund to be used for the implementation of the Property Assessed Clean Energy (PACE) Reserve Program. CCRES participants also lobbied against a split roll property tax, which would tax commercial property at higher rates than residential property.

BOMA Golf Tourney Recap

Chairman Rebecca Barnes, LBA Realty and her Golf Committee put together an amazing event on Thursday, June 4. Their sold out event brought together BOMA friends and colleagues for a day filled with beautiful weather, great food and drink, contests, prizes…and golf!

With a Hollywood Hills theme, golfers were greeted by everything from Bonnie & Clyde to the gopher from Caddy Shack. A few pictures are shown here, but go to our Photo Gallery for a full spread on the day.

Over 30 volunteers kept the day moving along smoothly. Everything from registration to handing out the last raffle prize was managed by a great team. Thank you!

Golf Committee Chair:
Rebecca Barnes
LBA Realty

Vice Chair:
Mike Ybarra
Century Lighting & Electric

Logistics Chair:
Terry Riecken
CMD Builders

Raffles & Goodie Bags Chair:
Christian Pellechia
Slatter Construction

Volunteers Chair:
Angela Bushong
Sleepy Hollow Management

Registration Chair:
Patti McBane
Smith Commercial Management, Inc.

Sponsorship Chair:
Felicia Trueba
The Sobrato Organization

VOLUNTEERS:  Anna McQuillan Rose, Alison Lee, Kristen Schneider, Steve Delmonico, Celine Scott, Rob Davis, Vannesa Vasquez, Marie Bugna, Somer Urbano, Valerie Camarena,  Aubrey Caton, Leanne LaPerle, Harris Ginyard, Bridget Forde, Tina Chavous, Tracy Ward, Jaydee Rodriguez, Nancy Zaro, Alex Sofranac, Blaine Boccignone, Lou Contreras, Stephanie Mattson, Nicole Carmona, Margaret Hardy, Suzanne Kato, Ryan Ferrara, Ryan Reber, Randy Davis, Brianna Colonna, Patricia Duplan, Sabrina Sherrin, Antonio Crema.
Thank You, Volunteers!

Thank you to our wonderful sponsors for supporting this event and making it so much fun!  What a creative bunch! Special thank yous to our Main Event Sponsor Valley Crest Landscape Maintenance and to our Memorial Sponsor Deutsche Asset & Wealth Management. Both these sponsors have stepped up annually to ensure the success of this tourney in honor of BOMA Silicon Valley's first President, Sherie Dunn. Please take a look at our Golf page to see all of our fantastic sponsors

Lose something? The BOMA office has a few items left behind by our golfers: a pair of men's loafers, a club head cover and a cell phone. Contact us to retrieve your lost item!  barbara@boma-sv.org

Split Roll: Truth & Consequences

On Wednesday, June 10 Senator Holly Mitchell (D-Los Angeles) and Senator Loni Hancock (D-Oakland) gut-and-amended Senate Constitutional 5 into a split roll property tax measure. They held a press conference with a number of public employee labor groups to announce effort.  Representatives from the business community were not let into the press conference – even though it was held in a public room in the Capitol. However, BOMA California representatives were able to view materials that were handed out and speak with reporters who were present as they left the room.

With a two-thirds vote of the Legislature, SCA 5 would to amend the State Constitution to allow for regular reassessments of commercial and industrial property to their fair market value, starting with the 2018-19 fiscal year. However, the constitutionally mandated 1 percent tax rate would be retained, and Proposition 13 protections would continue to apply to residential rental property and agricultural property.

The measure would also provide for a five-year phase-in of regular fair market value reassessments for certain commercial and industrial property owners; and exempt from personal property taxes $500,000 of tangible personal property used for business purposes, beginning January 1, 2019.

If approved by two-thirds of the Legislature the measure would be placed on the November 2016 ballot. The Governor's signature is not required.

TRUTH:

The bill and similar measures rely on misinterpretation or lack of understanding of the true positive impacts of having all property types covered by Prop 13. The positive impact on California's economy is well documented:

  • According to a 2012 report by the Legislative Analyst's Office, "Property tax revenues increased throughout the recession while other major revenue sources declined significantly."
  • A Pepperdine study showed that in 2008-09 when California property values faced the dramatic decline in the wake of the sub-prime crisis and the market collapse (industrial and commercial values fell 6.5%), property taxes collected from these same properties actually rose 5.0%.
  • Board of Equalization data shows that the average annual growth of property taxes for nonhomeowner property is 7.34% and for homeowners it is 6.82% since Proposition 13 was put in place. Business property taxes have increased at a higher rate than homeowner property taxes.
  • Local government services and schools can more easily plan out their future budgets because property tax revenues are more predictable and stable than other sources of revenue.

CONSEQUENCES:

  • Dramatic Tax Increase:  A split roll property tax will increase property taxes on businesses by an estimated $6 billion, according to a recent Pepperdine Study.
  • Significant Economic Harm: The cost to the California economy of this property tax increase would total $71.8 billion of lost output and 396,345 lost jobs over the first five years of a split roll property tax scheme. The losses to California's economy would be even greater in succeeding years.
  • Damaging to Small, Women and Minority Owned Businesses:  A split roll property tax would further damage California's already difficult business climate. Increased property taxes damage small business property owners and tenants alike. Because small businesses typically lease properties where the cost of property taxes is passed through to the tenant, employment losses would be disproportionately concentrated in small businesses, and especially those owned by women and minorities.

BOMA members should familiarize themselves with these key points and share them with their representatives, neighbors and colleagues. Creating a split tax roll is not only bad for commercial real estate, it hurts California.

Summer @ BOMA

BOMA Silicon Valley has a wide variety of activities planned for members and colleagues throughout the summer. Mark your calendars and get out of the office to learn, network and have some fun!

LEARN:  RPA classes, Transportation and Emergency Preparedness workshops are all on the agenda. Follow the link to our EDUCATION page!  And now is the time to get your building and your team the recognition they deserve…July 31 is the deadline to enter The Outstanding Building of the Year (TOBY).

NETWORK: The President's Mixer and our outdoor monthly luncheon, Paella in the Pavilion are just two of the events where you can meet with CRE colleagues this summer.

HAVE FUN: The Emerging Leaders Mixer at Gordon Biersch and the annual BOMA & Bauer's Wine Tour are both scheduled for this August. Great reasons to take a break!

All links to upcoming events are on the BOMA Silicon Valley HOME PAGE.