2020 SPLIT ROLL MEASURE MUST BE DEFEATED

Posted: February 15, 2019 | Posted by Crystal Whitfield | No Comments

Rex S. Hime, President & CEO California Business Properties Association, has penned the following op/ed regarding the ongoing battle to protect Proposition 13.  You are highly encouraged to share this article and/or run it in your own publications:

Proposition 13 has been protecting taxpayers in California since 1978.  This measure created by Howard Jarvis is one of the only protections that you have against unimpeded increased in your property taxes – and now it is under serious threat.

Californians are some of the most heavily tax-burdened in the country. Now, special interests want to raise taxes by another $11 billion through this measure, despite record-high revenue, record-high per-pupil spending and $17 billion in budget reserves. A split roll property tax increase isn’t needed and will just make it more difficult to do business in California.

For years public employee unions and far-left wing advocacy groups have wanted to dismantle Proposition 13 in hopes of increasing your taxes to increase revenue for their members and pet spending projects.  Those groups have gathered enough signatures to place a measure on the ballot in November 2020.

One of the ONLY protections property owners in this state has is under serious threat and for thirty years – and now — I remain one of the primary people standing to fight back against this outrageous tax increase.

Under the 2020 proposal, Prop. 13 will be undone by mandating that all non-residential properties be reassessed to 2020 values and be reassessed every three years thereafter. Commercial property will lose certainty about future tax liabilities and one can only imagine the impact and cost to long time property owners that will see massive adjustments.

The proponents of this effort have stated that dismantling Prop 13 will result in an $11 billion tax increase on California’s property owners and employers.

Aside from the direct impact on properties, the State’s own Legislative Analyst’s office has warned that the proposal will introduce volatility into the state’s funding stream that puts everything from school funding to support and health programs for the elderly at risk.

Property taxes have been a reliably predictable revenue source for the state since prop 13 passed which allows for some predictability in budgeting and a reliable revenue stream.  The greediness of those that want to transfer property tax revenue to their own pockets threatens a system that has worked for more than 40 years!

As one of the longest standing taxpayer advocates in the state, I am coordinating an effort by taxpayer advocates and business groups alike to implement a statewide strategy and defeat this measure.  The campaign will be very costly and will take the efforts of many, but the costs of this tax are much greater.  Split roll inflicts a mortal wound on Prop 13 protections for all property owners and must be stopped.

Rex S. Hime has been protecting CA taxpayers his entire career. He has served as the President & CEO of California Business Properties Association for 35 years.

MORE REAL GROUPS SUPPORT HIME FOR SENATE

Posted: February 15, 2019 | Posted by Crystal Whitfield | No Comments

Two more major commercial real estate groups have endorsed Rex Hime for Senate supporting the long-time advocate for the many small businesses that make up this industry.

AIR Commercial Real Estate is an innovative, member-owned platform that provides commercial real estate professionals with tools they need to be successful providing a system of market research listing services, contracts and legal resources, and ongoing education.  AIR CRE has hailed Rex’s work for his years of fighting for Proposition 13, stopping split roll property tax, and being the major force beating back and effort to upend the real estate industry by banning dual agency status.

AIR CRE joins the other major statewide groups, Building Owners and Managers Association of California (BOMA California) and NAIOP California along with several NAIOP Chapters, in a strong show of support for their longtime advocate.

Rex S. Hime who has been the primary force in California advocating on behalf of California taxpayers who own commercial, industrial, and/or retail private property for over 35 years in his role as President and CEO of California Business Properties Association has answered the call of public service and filed paperwork to fill the seat of the district he has lived in for decades.

Rex has long talked about the importance of people from within the commercial real estate industry stepping-up and getting involved in elective politics.  He is putting those words into action.

Former-Governor Pete Wilson, and the Founder and President of the National Tax Limitation Committee Lew Uhler, are serving as Rex’s Campaign Chairs. Rex has also quickly garnered many endorsements including two former Senators who previously held the seat, Senator Tim Leslie (ret.) and current Congressmember John Doolittle.

Senate District 1 is a massive district stretching all the way from the Eastern part of Sacramento County, to Lake Tahoe, then all the way up to the Oregon border stretching to the middle of the State and back down.  The district is known as one of the most conservative areas of the state.

For more information about Rex’s run for California Senate District 1 click here REX HIME FOR SENATE

GO REX GO!

SUPPORT FOR RENTER RELIEF MEASURE

Posted: February 15, 2019 | Posted by Crystal Whitfield | No Comments

We have moved quickly to support a measure that will provide some relief to our state’s 2.4 million renters.  SB 248 jointly introduced by Assemblymember Lorena Gonzalez (D-San Diego) and Senator Steven Glazer (D-Orinda) would expand and reform California’s renter’s credit for the first time in 40 years.

“The housing crisis in California must be addressed and this is just one of many reforms we should enact to help our fellow citizens.  We must also look at other solutions to increase our housing supply which is the only way to truly bring down costs in the long term,” state Rex Hime, president and CEO of the California Business Properties Association.

Currently, eligible renters can qualify for $60 for single filers or $120 for married filers to offset their tax liabilities. There are 1.7 million renters who file for this tax credit now; under this legislation, 2.4 million renters would benefit.

CSLB URGED TO CLARIFY WHO CAN INSTALL BATTERY ENERGY STORAGE

Posted: February 15, 2019 | Posted by Crystal Whitfield | No Comments

Battery energy storage systems are rapidly expanding and being installed in schools, hospitals, businesses and homes throughout the state. Battery storage is a key technology to help California meet our clean energy and emissions reduction goals and expand the adoption of solar, wind, and other clean energy sources.

The Contractors State License Board’s (CSLB) primary mission is to protect consumers and the public. If not installed correctly by highly-qualified and licensed electrical contractors, battery energy storage systems pose unique fire, electrical, and public safety risks to installers, consumers, utility workers, and emergency personnel.

Ambiguity in the regulations has allowed C-46 solar contractor licensees to install battery energy storage systems when paired with a solar photovoltaic (PV) system, even though these battery energy storage systems are separate electrical systems and the C-46 solar contractors do not have the electrical training or expertise required.

The CSLB is currently working to clarify who can install these systems and our industry is urging that only licensed C-10 Electrical Contractors qualify for this work. Safe installation of battery energy storage systems by qualified electrical contractors and electricians is key to protecting public safety and we are concerned the CSLB get this right to protect our tenants and our buildings from a contractor taking on work that they are not fully qualified to do.

Click here to take action!

TEJON RANCH AND MAJESTIC LAND MAJOR DISTRIBUTION CENTER

Posted: February 15, 2019 | Posted by Crystal Whitfield | No Comments

Tejon Ranch announced that it has agreed to terms on a lease with a company that will relocate its western US distribution operations from the Los Angeles area to the Tejon Ranch Commerce Center (TRCC) in the fourth quarter of this year. The company, which wishes to remain anonymous for the time being due to competitive reasons, will occupy approximately 390,000 square feet of space in a new 580,000-square-foot building TRC is developing in partnership with Majestic Realty Co.

The new building represents the third partnership between TRC and Majestic Realty. Construction has commenced, and the building will be ready for occupancy in approximately eight months.

“This decision to move its western distribution warehouse from the Los Angeles area to TRCC underscores Tejon Ranch’s value as a proven and opportune place for companies wanting to locate and/or expand in California,” said Joseph N. Rentfro, executive vice president of real estate at Tejon Ranch Co. “Coming on the heels of L’Oréal USA’s decision last fall to move its professional salon distribution subsidiary, SalonCentric, from its Valencia facility to Tejon, it reinforces our location as a place where companies find great value in our compelling logistics model, our outstanding labor force, and where they have opportunity to grow and expand.”

“Majestic Realty is extremely pleased the partnership has been able to pre-lease a large portion of the new building we’re developing in partnership with Tejon Ranch Co.,” said Brett Tremaine, senior vice president at Majestic Realty Co.

“Working in Tejon Ranch, the time required to deliver a building ready for occupancy is as efficient and expeditious a process as you’ll find anywhere in the state, and perhaps the country. And with L’Oréal, and now a second company moving up from Los Angeles, we believe many more companies currently located in the Los Angeles basin will want to avail themselves of the Tejon Ranch Commerce Center’s strategic.

COMMERCIAL ENERGY CODE WORK BEGINS

Posted: February 15, 2019 | Posted by Crystal Whitfield | No Comments

The California Energy Commission will begin work on the 2023 Standards next week, kicking off with a meeting of representatives from Industry and other stakeholders.  2023 is not a misprint.

The California Energy Commission has already kicked off the development of the next set of energy efficiency building standards and if they stay on track, this set of regulations will take effect on 1/1/23.

On Monday, CEC staff will meet with CBPA, BOMA, NAIOP, ICSC, IREM and CBIA staff to summarize the issues that will be addressed in the forthcoming rulemaking.

In spring of last year, the CEC adopted the nation’s first solar mandate for low-rise residential construction and that will take effect in January of 2020.  For the 2023 standards, the CEC has already indicated their primary attention will focus on high-rise residential, commercial buildings and the existing building stock.  Related topics will be covered at CEC workshops scheduled to take place from June 2019 – March of 2020.

This will have a huge impact on your new construction and tenant improvements.  We are asking our members to identify experts – and funding for technical work – to help with this work.  Updates will be provided as proposed changes begin to take shape.

CBSC LAUNCHES NEW WEBSITE

Posted: February 15, 2019 | Posted by Crystal Whitfield | No Comments

The California Building Standards Commission (CBSC) launched a new website to a more modern and intuitive format and is also being updated to better serve you.

The new CBSC website address is https://www.dgs.ca.gov/bsc.

The content from their current website has been migrated and integrated with all the new information.  California’s building codes are some of the most complex in the nation and being able to quickly understand what is required when you build, and plan tenant improvements is essential to managing your properties.

WILL CEQA REFORM EVER HAPPEN?

Posted: January 18, 2019 | Posted by Crystal Whitfield | No Comments

Addressing issues related to the California Environmental Quality Act (CEQA) a measure that which was initially meant to bring sunshine to government projects but has morphed into a significant burden on the private sector, is always on the minds on Capitol denizens.  Every year it seems that politicians and Governors from both parties say, they are going to tackle the issue and reform it, but the only projects that ever seem to benefit are massive sports arenas.

We are always looking for signs that real CEQA reform may happen, and this year the new Governor’s focus on affordable housing are providing some silver-linings as one of the most significant hurdles to meeting the state’s dire need for more homes is the panoply of CEQA enabled lawsuits from NIMBY concerns to those meant to leverage labor negotiations.  Yes, there are some legitimate CEQA lawsuits but unfortunately those have so significantly been overwhelmed by the frivolous lawsuits that we need to remind ourselves of that.

As part of his aggressive rollout of the budget and initiatives to address housing affordability, Governor Newsome notes that the state’s current ranking of 49th out of 50th in home production “isn’t cutting it,” and that he wants to increase the current production of under 100,000 units per year to as much as 400,000 in the next three years.

To reach that goal, the Governor notes has been talking to organized labor and the real estate industry about a deal to streamline CEQA, stating, “We are past the point of absurdity with some of the abuses we are seeing,” Newsom said.”

These abuses happen on residential, commercial, and public projects, and we are hopeful the Governor stays aggressively engaged and doesn’t allow this momentum to slip away.

We are not yet ready to declare this “The Year of CEQA Reform,” but we are pleased to see clear-headed acknowledgement of the issue and nascent activity needed to lead to a solution.

CEQA LAWSUIT FOCUSES ON FRIVOLOUS LITIGATION

Posted: January 18, 2019 | Posted by Crystal Whitfield | No Comments

And if the Governor, Legislature, and interest groups in Sacramento cannot come together to bring some sanity to frivolous CEQA lawsuits, there is always the hope that the courts will rein-them-in.

To that end, we are closely watching a new lawsuit filed on behalf of the Icon Group against the carpenters and laborers union claiming the unions file CEQA actions a play to force union labor on development projects and not out of concern for the environment.

Abuse of CEQA for labor negotiation purposes is a common complaint across the state but has come to broader attention in the Los Angeles area recently as it has been used on some popular high-profile projects.

In this case, the Icon Group is trying to redevelop a building that has sat vacant for 20 years, a former Montgomery Ward building in Panorama City.  The project has been significantly delayed, the Icon Group claims, because the two unions are trying to force the company to enter into a “Project Labor Agreement” which will dictate to the developer what subcontractors they can use and drive up costs while narrowing choices, and CEQA filings have been part of the pressure tactics.

Companies across the state are watching this lawsuit closely and hope this one may help clear this one area of CEQA abuse.  Click here for more information on what is happening with the project.

BUSINESS GROUPS MEET WITH NEW BUDGET DIRECTOR

Posted: January 18, 2019 | Posted by Crystal Whitfield | No Comments

On Monday, CBPA, along with other significant business advocacy groups, were included in a luncheon organized by the CalChamber with the Governor’s newly appointed Director of Finance, Keely Martin Bosler.

The presentation was tailored to business interests and reviewed the budget from a fiscal point-of-view.  “We are in extraordinary times right now, but that is punctuated by a lot of uncertainty,” Martin Bosler commented.  Highlights of the presentation are included in the latest CalChamber Capitol Report video. Click here to view that video.

LAO OVERVIEW OF THE GOVERNOR’S BUDGET

Posted: January 18, 2019 | Posted by Crystal Whitfield | No Comments

And in case you haven’t gotten enough of the new budget, the Legislature is starting to weigh-in:

The Legislative Analyst’s Office has released its review of the Governor’s Budget.  Released last week, the Governor’s Budget is Mr. Newsom’s blueprint for state spending and a good map to show where the Administration thinks the state is heading and where his priorities lie.

That blueprint, however, will go through a significant review and revision process in the Legislature who will also imprint the plan with their own priorities and policy adjustments.  The LAO’s report is the beginning of that process.

The LAO’s four main take aways from the Governor’s Budget Plan are presented here in full and below is a link to the full report.  If you are responsible for helping to guide your company’s decisions about the future, understanding where the state is going and/or where policymakers think the state is going, is key:

Budget Position Continues to Be Positive. In our November Fiscal Outlook publication, we noted that the budget is in remarkably good shape—a comment based in large part on the significant discretionary resources we estimated were available. The Governor’s budget proposal reflects a budget situation that is even better than our estimates. Largely as a result of lower‑than‑expected spending in health and human services programs, we estimate the administration had nearly $20.6 billion in available discretionary resources to allocate. That said, recent financial market volatility poses some downside risk for revenues.

Governor’s Budget Prioritizes Debt Repayments and One‑Time Spending. The figure shows how the Governor proposes allocating the nearly $20.6 billion in available discretionary resources. The Governor proposes spending nearly half of these resources, $9.7 billion, to pay down certain state liabilities, including unfunded retirement liabilities and budgetary debts. The Governor allocates $5.1 billion—25 percent—to one‑time or temporary programmatic spending. The Governor allocates $3 billion—15 percent—to discretionary reserves. Although this represents a smaller share of resources than other recent budgets have devoted to reserves, the Governor’s decision to use a significant share of resources to pay down state debts is prudent.

Ongoing Costs Are in Line With Estimates of Available Ongoing Resources, but Costs Could Grow. The Governor proposes spending roughly $3 billion on an ongoing basis, which is a significantly higher level than recent budgets have allocated. Our economic growth scenario in the November Fiscal Outlook indicated $3 billion was roughly the level of ongoing spending that the budget could support. This was just one scenario, however, and some ongoing proposals would have higher costs under different economic conditions.

Governor’s Budget Outlines Many Policy Priorities Early. The Governor’s budget establishes a number of priorities for 2019‑20 and beyond, many of which align with recent legislative actions. In many cases, the administration is still developing these proposals and some are not yet reflected in the budget’s bottom line. By proposing these ideas at the beginning of the budget process, the Governor gives the Legislature the opportunity to collaborate with the administration.

Click here for the full report.

NEWSOM’S HOUSING BUDGET EXPLAINED

Posted: January 18, 2019 | Posted by Crystal Whitfield | No Comments

During his Inauguration speech, Governor Newsom called for a “Marshal Plan” for affordable housing, stating “No one should live in constant fear of eviction or spend their whole paycheck to keep a roof overhead.”

The Governor is making it plain that he is going to put affordable housing issues front and center as a high priority and that he won’t be playing “small ball.”  From major funding increases for affordable housing, to his threat to take away any city’s transportation dollars if it doesn’t meet its housing quota, Newsom’s plans match the audacious ambitions he outlined in the campaign, according to Matt Levin writing for CalMatters.

Click here to go in depth about the spending and policies proposed by Governor Newsom to address the housing shortage.

REAL ESTATE CHAMPION REX HIME RUNNING FOR STATE SENATE

Posted: January 18, 2019 | Posted by Crystal Whitfield | No Comments

Rex S. Hime, President and CEO of California Business Properties Association has been the primary force in California advocating for Commercial Real Estate in the State Capitol for almost 35 years, is answering the call of public service and will be running in a special election to fill the Senate seat that he lives in.

The Seat will be vacated due to current Senator Ted Gaines winning a seat on the Board of Equalization.  We expect the special election to take place in March of this year — just a few short months away.

Rex has long talked about the importance of people from within the commercial real estate industry stepping-up and getting involved in elective politics.  He is putting those words into action.

Former-Governor Pete Wilson, and the Founder and President of the National Tax Limitation Committee Lew Uhler, are serving as Rex’s Campaign Chairs. Rex has also quickly garnered many endorsements including two former Senators who previously held the seat, Senator Tim Leslie (ret.) and current Congressmember John Doolittle.

Senate District 1 is a massive district stretching all the way from the Eastern part of Sacramento County, to Lake Tahoe, then all the way up to the Oregon border stretching to the middle of the State and back down.  The district is known as one of the most conservative areas of the state.

For more information about Rex’s run for California Senate District 1 click here.

GO REX GO!

 

 

GOVERNOR NEWSOM – CALIFORNIA’S 4OTH CHIEF EXECUTIVE

Posted: January 12, 2019 | Posted by Crystal Whitfield | No Comments

Gavin Christopher Newsom, 51, was sworn in Monday as the 40th Governor of the State of California.  Many at the celebration heralded this even as the “start of a new era of Progressive activism.”  Governor Newsom won with a vote margin larger than any seen in the Modern Era.

Governor Newsom’s wife, Jennifer Siebel Newsom, and their four children stood by his side as he rested his hand on a bible and took the Oath of Office from California Supreme Court Chief Justice Tani Gorre Cantil-Sakauye.

Governor Newsom’s remarks the first week of taking the reins from Governor Jerry Brown focused on promises to restore California’s “luster,” and to fight the “corruption and incompetence,” of the current President of the United States

We welcome Governor Newsom and look forward to a continued good working relationship.  Please take the time to read his inaugural address as it will help set the blueprint for the next four to eight years of our state.

2016 First Inaugural Address, Governor Gavin Newsom

Congratulations Governor Newsom!

GOVERNOR NEWSOM RELEASES FIRST BUDGET

Posted: January 12, 2019 | Posted by Crystal Whitfield | No Comments

In a busy week, just days after being sworn in, Governor Newsom released his first proposed spending blue print, the 2019-20 state budget proposal.  The budget proposes a record-setting $209 billion in spending.

There will be many opportunities to argue about the state’s spending priorities but for now we want to thank the Governor for including with the $13.6 billion in funds to pay down state debt, keep up with pension obligations, and provide some much-needed one-time infrastructure expenditures, investing funds in stopping organized retail crime, and focus attention on expanding the state’s enhanced infrastructure financing districts and implementation of opportunity zones.

“During my inaugural speech, I described the California Dream as a house we are building together,” said Governor Newsom. “That wasn’t just a speech device – it’s exactly what we are proposing today. To make the California Dream available to all, our state must be fiscally sound. This Budget lays a strong financial foundation for our state by eliminating debts, expanding the rainy-day fund and paying down our unfunded liabilities,” said the Governor in a press release.

Click here to read a detailed summary of the massive spending plan.

NEWSOM’S HOUSING BUDGET EXPLAINED

Posted: January 12, 2019 | Posted by Crystal Whitfield | No Comments

During his Inauguration speech, Governor Newsom called for a “Marshal Plan” for affordable housing, stating “No one should live in constant fear of eviction or spend their whole paycheck to keep a roof overhead.”

The Governor is making it plain that he is going to put affordable housing issues front and center as a high priority and that he won’t be playing “small ball.”  From major funding increases for affordable housing, to his threat to take away any city’s transportation dollars if it doesn’t meet its housing quota, Newsom’s plans match the audacious ambitions he outlined in the campaign, according Matt Levin writing for CalMatters.

Click here to go in depth about the spending and policies proposed by Governor Newsom to address the housing shortage.

NEW YEAR NEW LABOR LAWS TO KNOW

Posted: January 12, 2019 | Posted by Crystal Whitfield | No Comments

As a proud member and partner of the California Chamber of Commerce we highly recommend you read their summary of the most important labor laws that are in effect as of January 1, 2019.

Click here to read the labor law summary and access the CalChamber’s white paper.

VEHICLE MILES TRAVEL COME TO CEQA DOCS NEAR YOU!

Posted: January 12, 2019 | Posted by Crystal Whitfield | No Comments

Our friends at Allen Matkins have also put together a white paper to walk through some of the recent changes to CEQA.

A large coalition of groups including CBPA and CBIA have been working for several years to try to make these new regulations as palatable as possible but have received a lot of push back from the previous administration and environmental advocates.

If you deal with CEQA this is an extremely important issue that now requires lead agencies to adopt the Vehicle Miles Traveled (VMT) methodology for evaluating transportation projects by July 1, 2020.  Click here to read the Allen Matkins VMT/CEQA alert.

REAL ESTATE CHAMPION REX HIME RUNNING FOR STATE SENATE

Posted: January 12, 2019 | Posted by Crystal Whitfield | No Comments

Rex S. Hime, President and CEO of California Business Properties Association has been the primary force in California advocating for Commercial Real Estate in the State Capitol for almost 35 years, is answering the call of public service and will be running in a special election to fill the Senate seat that he lives in.

The Seat will be vacated due to current Senator Ted Gaines winning a seat on the Board of Equalization.  We expect the special election to take place in March of this year — just a few short months away.

Rex has long talked about the importance of people from within the commercial real estate industry stepping-up and getting involved in elective politics.  He is putting those words into action.

Former-Governor Pete Wilson, and the Founder and President of the National Tax Limitation Committee Lew Uhler, are serving as Rex’s Campaign Chairs. Rex has also quickly garnered many endorsements including two former Senators who previously held the seat, Senator Tim Leslie (ret.) and current Congressmember John Doolittle.

Senate District 1 is a massive district stretching all the way from the Eastern part of Sacramento County, to Lake Tahoe, then all the way up to the Oregon border stretching to the middle of the State and back down.  The district is known as one of the most conservative areas of the state.

Click here for more information about Rex’s run for California Senate District.

GO REX GO!

HAPPY NEW YEAR!

Posted: January 7, 2019 | Posted by Crystal Whitfield | No Comments

Welcome back and Happy New Year!  We look forward to serving the commercial, industrial, and retail real estate association in 2019 and beyond.

Our industry has some very big challenges ahead including an extremely lopsided partisan divide in the Legislature, an incoming Governor with a huge mandate to steer the ship of state even further to the Left, and a split roll property tax initiative on the ballot next year.

We wish the political and policy road didn’t appear so bumpy, but we are prepared to do battle on your behalf and look forward to working with all of our members to smooth it out as much as possible.

REAL ESTATE CHAMPION REX HIME RUNNING FOR SENATE

Posted: January 7, 2019 | Posted by Crystal Whitfield | No Comments

Rex S. Hime, President and CEO of California Business Properties Association has been the primary force in California advocating for Commercial Real Estate in the State Capitol for almost 35 years, is answering the call of public service and will be running in a special election to fill the Senate seat that he lives in.

The Seat will be vacated due to current Senator Ted Gaines winning a seat on the Board of Equalization.  We expect the special election to take place in March of this year — just a few short months away.

Rex has long talked about the importance of people from within the commercial real estate industry stepping-up and getting involved in elective politics.  He is putting those words into action.

Former-Governor Pete Wilson, and the Founder and President of the National Tax Limitation Committee Lew Uhler, are serving as Rex’s Campaign Chairs. Rex has also quickly garnered many endorsements including two former Senators who previously held the seat, Senator Tim Leslie (ret.) and current Congressmember John Doolittle (ret.)

Senate District 1 is a massive district stretching all the way from the Eastern part of Sacramento County, to Lake Tahoe, then all the way up to the Oregon border stretching to the middle of the State and back down.  The district is known as one of the most conservative areas of the state.

For more information about Rex’s run for California Senate District 1 click here.

GO REX GO!

THE “BLUE WAVE” WAS ACTUALLY A “BLUE TSUNAMI” IN CALIFORNIA

Posted: January 7, 2019 | Posted by Crystal Whitfield | No Comments

It took almost two full months to assess exactly where the November Elections put the partisan divide in California and the news is that it was the largest win for Democrats at all levels of government ever in our state.  Every close race – and even a couple that were not close on Election night, moved into the win column for Dems.

At the Congressional level seven (7) seats switched from Republican to Democrat and played a large role in changing who holds the gavel in the U.S. House of Representatives back to Nancy Pelosi (D-San Francisco).  The California Delegation is now 44-7 in the house and both U.S. Senators remain Democrats

In the State Legislature the Democrats gained so much ground they not only reached the coveted “supermajority” status in both chambers, they have reached what some are referring to as “gigamajority” status.  Dems hold a 60-20 advantage in the 80 member Assembly; and a 29-11 majority in the 40 member Senate.

As for executive elected offices, Democrats now hold ever single statewide elective office.   And just as an example of how lopsided the numbers were in the election Governor-elect Gavin Newsom won his race by an incredible 21.6% margin.

Statewide the Democrats hold a 3.7 million voter advantage in registrations.

The Blue Wave that many had predicted turned out to be a Blue Tsunami.

PROPOSITION 10 DEFEATED SOUNDLY – ON TO SPLIT ROLL BATTLE

Posted: January 7, 2019 | Posted by Crystal Whitfield | No Comments

In one very bright spot for this election, our industry was part of the successful effort to defeat Proposition 10, the rent control measure.  In total over $48M was raised to defeat this measure and almost half of that came from our efforts as leaders of the Prop 10 Flaws effort.

Defeating rent control, you can see what happens when we are able to access capital to properly fund a campaign – this populist measure couldn’t even get to 39% support.

Rex Hime played a key role in organizing our industry’s distinct efforts in this fight, that paralleled the more broad-based No On 10 campaign, but emphasized some issues of specific importance to our members/industry.

We should take a moment to enjoy this victory. But our next task – defeating Split Roll Property Tax, on the ballot in Nov. 2020 – is already upon us. As there is no rest for the weary, we already have a meeting set up with other allied leaders dedicated to defeating split roll, next week.

Defeating this rent control measure by such a large margin shows that we can be successful at the statewide level when we are focused and funded.  However, it is not a given.  November 2020 is a Presidential Election Year and turnout amongst the Democrat base will be much higher.

Click here for a final result rundown of all the November 2018 propositions.

COMMERCIAL TAX LAWSUIT IN SF HAS STATEWIDE IMPLICATIONS

Posted: January 7, 2019 | Posted by Crystal Whitfield | No Comments

In conjunction with the Howard Jarvis Taxpayers Association (HJTA), CBPA, BOMA California, and the California Business Roundtable filed suit in August in the Superior Court in San Francisco challenging the city’s special tax on commercial property (Proposition C – passed in June 2018), which is an illegal and punitive gross receipts levy which will reduce commercial property values in the city by up to 12%.

Our lawsuit asserts that because the tax is expressly for a special purpose, it required a 2/3 vote of the city’s electorate under Propositions 13 and 218. But it did not pass by that margin. Rather, the tax proposal, designated as Measure C, received a scant 50.87% vote.

The basis for the lawsuit is that the California Constitution clearly holds that special taxes at the local level have required a two-thirds vote of the electorate as mandated by Propositions 13 and 218.

Click here for a newspaper story on the lawsuit.

40th GOVERNOR OF CALIFORNIA INAUGURATED ON MONDAY

Posted: January 7, 2019 | Posted by Crystal Whitfield | No Comments

After a weekend of parties and a high profile concert on Sunday featuring national level rappers and hip-hop starts and a family-friendly event taking over Old Sacramento on Sunday featuring kid DJ’s, Gavin Newsom will be sworn in as the 40th Governor of California on Monday at 11:15 a.m. and will give his first inaugural address at Noon. The event is free and will be available online.

GOVERNOR-ELECT NEWSOM NAMES CHIEF OF STAFF

Posted: November 9, 2018 | Posted by Crystal Whitfield | No Comments

After a 19 point victory on Tuesday, Governor-Elect Newsom wasted no time getting his team together.  Announcing Ann O’Leary, a long-time policy advisor to Hillary Clinton to serve as his chief of staff.  He also named Ana Matasantos, who served as Budget Director for both Governor Brown and Governor Schwarzenegger, as his Cabinet Secretary.

We congratulate Governor-Elect Newsom and look forward to working with him!

CALIFORNIA GOP LOSES MORE GROUND

Posted: November 9, 2018 | Posted by Crystal Whitfield | No Comments

It was no surprise that Mr. Newsom won the Governorship as all the polls indicated his success, however the fact that he won by almost  20 points was surprising, and that wide margin has proven to produce some surprises in legislative races too.

Normally in the off-year elections Republicans expect to do better than during Presidential elections, however Tuesday saw the GOP lose control of the House of Representatives and apparently cede a 2/3s vote majority in both houses of the Legislature.  Some races are still too close to call but it appears the trends are heading towards almost solid control across the board.

In terms of statewide offices the only post where a non-Democrat appears to have had some success is with the non-partisan Superintendent of Public Instruction Office, where Marshall Tuck holds about a 70K vote lead.

ELENI KOUNALAKIS WINS LT. GOVERNOR

Posted: November 9, 2018 | Posted by Crystal Whitfield | No Comments

In some very positive news for our industry was a bright spot in the election is that our only endorsed statewide candidate Eleni Kounalakis was successful in her bid for Lt. Governor with almost an 11 point win.  Eleni spoke with our Board over a year ago and received a rare endorsement.  Her past experience as a commercial real estate professional and knowledge of our industry was key in our endorsement.

We congratulate Lt. Governor Elect Kounalakis and look forward to working with her!

DEMOCRATS ON TRACK FOR SUPERMAJORITY IN BOTH STATE HOUSES

Posted: November 9, 2018 | Posted by Crystal Whitfield | No Comments

Even as the votes continue to be counted in some close races, it appears that both houses of the state Legislature will see a 2/3 vote Democrat majority, while setting the highest mark for one party in the Assembly in over 40 years.

In the Senate going in to the elections, Democrats controlled 26 of the 40 seats and needed one more to get to the supermajority of 27.

All Democrat incumbents appear to have successfully defended their seats and it appears they may flip the one needed seat, Senate District 14, in the Fresno/Bakersfield area as Sanger Councilwoman Melissa Hurtado is leading GOP incumbent Andy Vidak by 52 to 48 percent.

In the Assembly, Democrats are seeking to build on the supermajority they already hold.  Although several races are too close to call, if there are realistic scenarios in which they see a plus-three pickup and could start the new legislative session with a 57 vote supermajority.  54 is the vote threshold needed to pass new taxes.

We are paying close attention and will report as we have more news.

 

PROPOSITION 10 DEFEATED SOUNDLY – ON TO SPLIT ROLL BATTLE

Posted: November 9, 2018 | Posted by Crystal Whitfield | No Comments

In a very bright spot for this election, our industry was part of the successful effort to defeat Proposition 10, the rent control measure.  In total over $48M was raised to defeat this measure and almost half of that came from our efforts as leaders of the Prop 10 Flaws effort.

Defeating rent control, you can see what happens when we are able to access capital to properly fund a campaign – this populist measure couldn’t even get to 39% support.

Rex Hime played a key role in organizing our industry’s distinct efforts in this fight, that paralleled the more broad-based No On 10 campaign, but emphasized some issues of specific importance to our members/industry.

We should take a moment to enjoy this victory. But our next task – defeating Split Roll Property Tax, on the ballot in Nov. 2020 – is already upon us. As there is no rest for the weary, we already have a meeting set up with other allied leaders dedicated to defeating split roll, next week.

Defeating this rent control measure by such a large margin shows that we can be successful at the statewide level when we are focused and funded.  However, it is not a given.  November 2020 is a Presidential Election Year and turnout amongst the Democrat base will be much higher.

Click here for a final result rundown of all the November 2018 propositions.

 

VOTE TUESDAY (OR BEFORE)!

Posted: November 2, 2018 | Posted by Crystal Whitfield | No Comments

On Tuesday millions of Californians will go to the polls to vote for new representation and weigh-in on important policy questions up and down the ballot.

Our association makes recommendations on those issues that have a statewide direct and/or disproportionate impact on the commercial, industrial, and retail real estate industry.

For recommendations on local candidates and issues please connect with your local staff.

Please vote!

SUPPORT PROP 3 – WATER BOND

Posted: November 2, 2018 | Posted by Crystal Whitfield | No Comments

Proposition 3 authorizes $8.9 billion in state general obligation bonds for various infrastructure projects related to water projects.

Please vote YES on Proposition 3.

SUPPORT PROP 5 – PROPERTY TAX TRANSFERS

Posted: November 2, 2018 | Posted by Crystal Whitfield | No Comments

Proposition 5 would allow homebuyers who are age 55 or older or severely disabled to transfer their tax assessments from their prior home to their new home.

Please vote YES on Proposition 5.

OPPOSE PROP 10 – RENT CONTROL

Posted: November 2, 2018 | Posted by Crystal Whitfield | No Comments

Proposition 10 repeals Costa-Hawkins Rental Housing Act and would allow rent control across the state.  We believe the measure has too many flaws and must be defeated. Prop. 10 allows regulation of single-family homes, places bureaucrats in charge of housing, could cost the taxpayers millions in new costs to local government, and drives up the cost of new housing.

Please vote NO on Proposition 10.

CALCHAMBER PROPOSITION POSITIONS

Posted: November 2, 2018 | Posted by Crystal Whitfield | No Comments

Our friends at the CalChamber have taken a few more position on some of the proposition and we think you may find their list helpful.  Where we overlap we are in 100% agreement with the CalChamber!

2018 CalChamber Proposition Positions

RENT CONTROL MEASURE MUST BE DEFEATED! NO ON PROP 10 AD

Posted: November 2, 2018 | Posted by Crystal Whitfield | No Comments

Proposition 10 would be such a disaster for our industry we want to provide you more information and hopefully help you communicate with peers, colleagues, tenants, next door neighbors, your barista, and your barber, about why they should VOTE NO on PROP 10.

Prop 10 has too many flaws and must be defeated.

Here is a new ad on this bad measure that we hope you will share widely with your networks:

What Would Prop 10 Mean for California?

Prop. 10:

  • Allows Regulation of Single-Family Homes
  • Places Bureaucrats in Charge of Housing with the Power to Add Additional Fees
  • Puts Taxpayers at Risk for Millions in Legal Costs
  • Adds Tens of Millions in New Costs to Local Governments
  • Drives Up the Cost of Existing Housing

Vote NO on Prop. 10.  Click here for more information.

SPLIT ROLL MEASURE OFFICIALLY QUALIFIES FOR 2020 BALLOT

Posted: October 19, 2018 | Posted by Crystal Whitfield | No Comments

California Secretary of State Alex Padilla announced that the initiative to dismantle Proposition 13 by creating a split roll is qualified and eligible for the November 2020 ballot.

Under the proposal, all non-residential properties will be reassessed to 2020 values and be reassessed every three years thereafter.  Commercial property will lose certainty about future tax liabilities and one can only imagine the impact and cost to long time property owners that will see massive adjustments.

The proponents of this effort have stated it’s a $11 billion tax impact to your properties.

Aside from the direct impact on properties, the Legislative Analyst’s office has warned that the proposal will introduce far more volatility into the state’s funding stream.  Property taxes have been a reliably predictable since prop 13 passed allowing better budgeting.

We will continue to work closely with allied business and taxpayer groups on the statewide strategy to defeat this measure.  Our industry has been preparing for this moment for some time.  The campaign will be very costly, but the costs of this tax are much greater! THE TARGET IS YOU and you need to defend yourself.

Click here to learn more.

CSHPT LEADERS RESPOND TO SPLIT ROLL SACRAMENTO

Posted: October 19, 2018 | Posted by Crystal Whitfield | No Comments

Members of the Californians to Stop Higher Property Taxes coalition issued the following statements today in response to the $11 billion split roll property tax increase measure qualifying for the November 2020 ballot:

“Californians are some of the most heavily tax-burdened in the country. Now, special interests want to raise taxes by another $11 billion through this measure, despite record-high revenue, record-high per-pupil spending and $17 billion in budget reserves. A split roll property tax increase isn’t needed and will just make it more difficult to do business in California.”

Rex Hime, President, California Business Properties Association

“We have already established a strong and broad-based coalition to fight this assault on the most important taxpayer protection Californians have. A split roll property tax is an $11 billion tax increase that will increase costs for everyone at a time when the high cost of living is already driving companies and residents out of the state.”

Jon Coupal, President, Howard Jarvis Taxpayers Association

“Make no mistake, this is the first step toward a full repeal of Proposition 13, the most important taxpayer protection that has kept housing affordable, especially at a time when the growing list of taxes and fees being paid by hardworking Californians have led to the affordability crisis we’re facing today”

Rob Lapsley, President, California Business Roundtable

“Not only can Californians not afford an $11 billion tax increase, but the measure includes no taxpayer protections, cost controls or accountability and transparency. We will have no idea how this new tax revenue will be spent or have any guarantee it will go where the special interests claim it will. This measure will increase costs on all Californians without any guarantees the money will be used responsibly.”

Teresa Casazza, President, California Taxpayers Association

“This initiative will have a devastating impact on small businesses, which are already struggling to keep their doors open. Small businesses simply can’t afford an $11 billion tax increase, and neither can working Californians.”

John Kabateck, State Director, National Federation of Independent Business in California

 Californians to Stop Higher Property Taxes is a broad-based coalition of taxpayer advocates, small business advocates and a growing list of regional and local organizations all opposed to this $11 billion tax increase that will affect all Californians. Click here to learn more.

TWO WEEKS TO GO!

Posted: October 19, 2018 | Posted by Crystal Whitfield | No Comments

In just over two weeks Californian’s will go to the polls to vote for new representation and weigh in on important policy questions up and down the ballot.  Vote by Mail packets are already in the mail.

Our association makes recommendations on those issues that have a statewide direct and/or disproportionate impact on the commercial, industrial, and retail real estate industry.

For recommendations on local candidates and issues please connect with your local staff.

SUPPORT PROP 3 – WATER BOND

Posted: October 19, 2018 | Posted by Crystal Whitfield | No Comments

Proposition 3 authorizes $8.9 billion in state general obligation bonds for various infrastructure projects related to water projects.

Please vote YES on Proposition 3.

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