CBPA's California Legislative Update 2/25/2022
-
ASSEMBLY NEW DEMOCRATS BUDGET PRIORITIES
-
SACRAMENTO MAYOR ENVISIONS REUSE FOR OFFICE BUILDINGS
-
REX S. HIME SACRAMENTO RECEPTION SUCCESS
-
INDUSTRY AWARDS DINNER HONOREES & CBPA’S 50TH ANNIVERSARY – REGISTER!
-
CBPA 2022 CALENDAR
ASSEMBLY NEW DEMOCRATS BUDGET PRIORITIES
A group of Democrats have submitted a letter to the Assembly Budget Committee Chair Assemblymember Ting identifying their budget priorities. With unprecedented revenue being reflected in the Budget, this letter signed by 15 members of the legislature asks for measured leadership and balanced decision making.
The key items they highlighted for consideration in the Budget are:
-
State Reserves: Expansion of Budget Stabilization Account and Safety Net Reserve.
The Legislature should maintain its track record of prudent budget management. The state reserves provide an important safety net, giving California the tools to respond to future challenges when there may be less federal assistance available.
Under the current proposal, reserves in the Budget Stabilization Account and Safety Net Reserve reach nearly $22 billion. We request an increase in state reserves equal to 20 percent of the General Fund budget (excluding prop 98). This 20-percentage threshold is consistent with pre-pandemic reserve levels.
-
Unemployment Insurance Fund Debt: One-Time Pay Down of $7.25 billion.
The current anticipated budget surplus provides the Legislature with an opportunity to use one-time funds to pay down the state’s Unemployment Insurance (UI) Fund debt. We request a one-time payment of $7.25 billion, which would equal approximately one third of the estimated year-end deficit. This prudent investment would go a long way towards decreasing the total interest owed on this debt. We believe that this would not only help California businesses today, it would also support the state’s overall fiscal stability moving forward.
-
Incentivize Growth in California’s Manufacturing Sector
We request that the existing Sales and Use Tax Exemption for Manufacturing Equipment should be expanded to the full 6% of the State’s portion. The existing partial exemption of 3.375% has proven to be insufficient to incentivize robust growth in the manufacturing sector.
For every $1 spent in manufacturing, another $2.79 is added to the economy—the highest multiplier effect of any economic sector. For every worker employed in manufacturing, there are an additional five employees hired in other industries. Growth in the manufacturing sector is a key component of California’s economic recovery. The need for domestic manufacturing is even more acute given challenges in global supply chain issues.
To read the full letter, click here.
SACRAMENTO MAYOR ENVISIONS REUSE FOR OFFICE BUILDINGS
Tuesday morning, Sacramento Mayor Darrell Steinberg shared thoughts on converting office space into apartments as part of a downtown shift after the pandemic for more housing at an annual breakfast meeting.
The Sacramento Bee reported on this meeting where he stated,
“State, local and private sector workers have become accustomed to telecommuting — and they like it,” Steinberg said at the Downtown Sacramento Partnership’s State of Downtown breakfast. “The reality poses either a threat or an opportunity, especially for mid-size and smaller office buildings.”
The Bee continued with information on Sacramento’s unique downtown situation, “Sacramento’s downtown is particularly dependent on state workers. Real estate firm CBRE estimates up to 40% of the office space downtown is made up of state employees, either in leased or state-owned buildings.”
With reuse legislation coming to fruition in the Capitol, Mayor Steinberg seems to be taking a thought process of similarity. While we know there are numbers that show offices are returning and employees miss the comradery of work, this type of shift is an idea being circulated that could impact our industry.
We are looking for input from you, our members, on your thoughts of this type of reuse for our commercial properties and will keep you up to date on further advancements of this kind of legislation.
To read the full Sacramento Bee article, click here.
REX S. HIME SACRAMENTO RECEPTION SUCCESS
Last week friends of Rex S. Hime converged on the Hyatt Sacramento’s Capitol View Room to wish him a happy retirement and send him off with a bang.
This event was a huge success, thank you to the almost 200 of you who were able to swing by and show Rex how important he was to us as an industry leader and friend.
New President & CEO Matthew Hargrove opened up the short program talking about his 15 year working relationship with Rex, handing the mic off to Norb Bartosik who worked on the State Fair Board with Rex for many years. He even shared some fun gubernatorial appointment stories. After that Jeanne Cain, followed by Richard Lyon and Bob Raymer shared stories of working all throughout the State over the last 4 decades and the work Rex has done to fight for the commercial real estate industry and California’s economy as a whole.
Lastly, Assemblymember Jim Cooper presented Rex with a Resolution dedicated to his 37 years of service to our industry and Rex had the last word with laughs as always.
If you missed this event - don’t worry! There is still a chance on March 24 for those of you on the southern end of the state to celebrate Rex along with CBPA’s 50th anniversary and the Industry Awards Dinner Honorees. Find information on this event below!
INDUSTRY AWARDS DINNER HONOREES & CBPA’S 50TH ANNIVERSARY - REGISTER NOW
California Business Properties Association Industry Awards Dinner & 50th Anniversary Celebration is scheduled for March 24, 2022, at The Renaissance Hotel in Newport Beach starting at 6:00pm. This bi-annual event is a chance to recognize the unwavering leadership of individuals and companies dedicated to the office, industrial, and retail real estate industry.
This year we will be pairing the Awards Dinner with a 50 Year Celebration, acknowledging the history and key role California Business Properties Association has played in advocating for and defending our vital industry. CBPA would not be successful without our leadership, membership, and those in our industry who go above and beyond in the legislative process.
With Rex Hime’s retirement announcement, and his 37 years of service to our industry, this event will also be an opportunity to honor and thank him and those who helped establish CBPA to become “The Voice of Commercial Real Estate,” in California.
The following peer-nominated awards represent the highest recognition given to industry leaders in the State of California:
The Ernest W. Hahn Memorial Award honors our founder’s many contributions to the real estate industry. The award is given to an individual and/or organization that go above and beyond the call of duty to impact legislative, regulatory, or public policy issues on behalf of our industry.
NewMark Merrill along with Sandy Sigal went above and beyond writing a check to defeat Prop 15 defending our industry from Split Roll Tax in 2020. From pushing for more signage at their properties, advocacy, and press – NewMark Merrill undoubtedly impacted our successes on the ballot in 2020.
Honoree: NewMark Merril, Sandy Sigal
The John Caldecott Memorial Award honors the unfaltering lifelong community service provided by John Caldecott through his service in the Salvation Army. The award recognizes an individual and/or organization that advances our industry through community service to others.
Kilroy Realty Corporation (KRC) is committed to being a real estate leader in innovation and sustainability. Part of that commitment is investing in our communities and future leaders. KRC seeks to address issues and needs aligned with our goals and objectives through financial support of education and community enrichment programs. KRC provides financial assistance to accredited schools and 501(c)(3) nonprofit organizations that work to produce programs and projects centered around community enrichment.
The Ray Magnussen Memorial Award honors Ray Magnussen who, as a provider to our industry, lead a statewide effort of advocacy to help fight issues facing all of us. The award is given to an individual service provider and/or organization that goes above and beyond the call of duty to impact the commercial real estate industry.
Sarahann spent countless hours providing legal guidance to our industry while navigating through the eviction moratoriums that took us by storm because of the pandemic. We were able to defeat legislation threatening our industry like SB 939, thanks to Sarahann Shapiro.
Honoree: Sarahann Shapiro, Pahl & McCay
Champion of the Industry Awards are presented to individuals and/or companies who have dedicated themselves to the improvement of the commercial, industrial, and/or retail real estate industry in California through the development of projects that stand-out for their innovation, attraction, and versatility.
Mr. Horne is passionate about collaboration and actively promotes the integration of multiple disciplines to ensure well-conceived, strategic solutions for complex client assignments. This passion led him to becoming an early adopter and champion for workplace transformation, including Workplace Strategy, Experience Consulting, Change Management and Occupancy Management.
Click the links below for Registration, Sponsorship, and hotel accommodations:
We look forward to seeing you in March and celebrating our industry together!
CBPA 2022 CALENDAR
Thursday, March 24
Industry Awards Dinner and CBPA Board Meeting
The Renaissance Hotel, Newport Beach
Thursday, April 7
CBPA Industrywide Legislative Meeting
Southern California
Tuesday, June 7 – Wednesday, June 8
California Commercial Real Estate Summit
and CBPA Annual Board Meeting
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.
