CBPA's California Legislative Update 4/24/2020
- CA STATE FAIR CANCELLED
- THE PIVOT TO RECOVERY
- ECONOMIC TASK FORCE
- ROADMAP TO PANDEMIC RESILIENCE
- BOMA INTERNATIONAL RE-ENTRY REPORT
- SPLIT ROLL; $10B-PLUS TAX HIKE MAY GAIN TRACTION WITH STRESSED LOCAL GOVERNMENTS
- WILLIE BROWN OPPOSES SPLIT ROLL - HURTS MINORITY OWNED BUSINESSES
- ECONOMIC POLICY ASSISTANCE OFFERED BY BUSINESS ASSOCIATION
- JUDICIAL COUNCIL EMERGENCY RULES WILL CAUSE UNNECESSARY DELAYS
- AMENDED BILL WOULD REQUIRE 25% STATEWIDE RENT REDUCTION
- COVID-19 RESOURCES PAGE
- CBPA 2020 CALENDAR
CA STATE FAIR CANCELLED
"I'm going to make a motion that I didn't ever think I was going to have to make," said Vice Chair of the California Exposition & State Fair board of directors, Rex Hime on a meeting that was held over Zoom, and like that, years of tradition and the event which brings in almost $17M to the state facility – over 60% of revenue – was cancelled.
Hime is also the colorful President and CEO of the California Business Properties Association, an organization that is working hard to help the commercial real estate industry stay informed and navigate through this crisis.
Playing against these type of gray suits, Hime has been at the helm of the commercial real estate group since the early 1980’s and is known for colorful Hawaiian-style shirts. He is one of the few people in the state to ever be appointed by five different Governor’s.
“Of course, even as long as I have been involved in politics and policy, I’ve never seen anything like this,” said Hime, referring to the cancellation of the fair and to the extreme upheaval he has witnessed in the past three months. “But I have also been extremely impressed at the response in California – from both the public and private sectors. Every seems to have been able to act in the interest of public health and minimizing the impacts of this pandemic.”
CBPA has transitioned to remote work and continues to represent the industry in many capacities including with the Governor and Executive Branch, Legislature, regulatory agencies, and keeps up with allied groups in Sacramento such representing allied and aligned industries.
THE PIVOT TO RECOVERY
Governor Gavin Newsom is providing daily briefings on the State’s response to the COVID-19 pandemic. These briefings have become a valuable tool in understanding the state’s response and what lies ahead.
At his April 22 briefing the Governor went into a lot of detail about expanding testing and contact tracing to be able to identify and isolate persons with the COVID-19 virus as the first of six strategies for gradually modifying California’s stay-at-home order.
Earlier this week, the California Department of Public Health updated its testing guidance to recommend testing of some asymptomatic individuals, such as health care workers, first responders and correctional workers.
The Governor reiterated that the constant monitoring of conditions “on the ground” means “there is no light switch and there is no date” for when the stay-at-home order will be lifted.
At his briefing today, the Governor expressed a “hope” that the orders can be relaxed “soon,” but did not want to commit to any timeline, instead indicating that the criteria previously set out must be met, and also hinting that it won’t all happen at once. He oft uses an allusion to “a dimmer, not a light switch,” when talking about reopening.
Find out more information about the State response here.
ECONOMIC TASK FORCE
Note: We are re-running this story from last week, because there has been so much press about this task force. We want to make sure you have access to the list of who is serving and the scope:
Last week, Governor Newsom announced the formation of an economic task force to help the state pivot to recovery once the COVID-19 health emergency has passed.
Chaired by billionaire climate activist an recent presidential candidate Tom Steyer, along with the governor’s Chief of Staff Ann O’Leary the task for has 80 people, including a who’s who of industry heads ranging from Apple CEA Tim Cook to Disney Chair Bob Iger. The task force also includes four former Governors.
Click here for a full list of the task force.
Click here for the Governor’s Press Release.
Click here for a story from our friends at the CalChamber, whose CEO Allan Zaremberg, is serving on the committee.
ROADMAP TO PANDEMIC RESILIENCE
Many groups are working to figure out how different sectors of the economy can re-open safely and not backslide on tamping down the spread of the virus.
One report that is catching some attention is called the “Roadmap to Pandemic Resilience,” written by a bipartisan group of experts in economics, public health, technology, and ethics from across the country, calls for more testing and a phased opening of the economy.
The report, let by the Harvard Center for Ethics with support from The Rockefeller Foundation, is the nation’s first comprehensive operational roadmap for mobilizing and reopening the U.S. economy and has caught attention from policymakers as a pragmatic approach.
As you listen to Governor Newsom’s daily briefings, many of the concepts in this plan are evident, especially the notion for the need to re-open in carefully and to use testing, contact tracing, and continued social distancing as well as supported isolation.
The report, a product of more than 45 economists, social scientists, lawyers and ethicists, is summarized here in Plain English, is a phased approach that relies heavily on testing to make sure “hot spots” of the virus are contained as soon as possible. Click here to view complete video.
Click here for the full report as it may help provide ideas on how your own organizations can be prepared to re-open.
BOMA INTERNATIONAL RE-ENTRY REPORT
All industries are figuring out the safest way to re-open. BOMA International has released a guidance document entitled, “Getting Back to Work: Preparing Buildings for Re-Entry Amid COVID-19.”
This helpful document will walk you through all the things a commercial property owner will be thinking about as you prepare to welcome back tenants and the public. The first piece of advice? “Start now”!
Click here for BOMA International’s “Getting Back to Work: Preparing Buildings for Re-Entry Amid COVID-19.”
SPLIT ROLL; $10B-PLUS TAX HIKE MAY GAIN TRACTION WITH STRESSED LOCAL GOVERNMENTS
“California Business Properties Association President Rex Hime said property owners and small businesses, both of whom are already hurting due to the pandemic, will be most severely hit if the split roll passes.
“`With many small businesses already closed, an additional tax by the state that gets passed down from their landlord will only worsen the business climate in the state, Hime said. These higher operating costs will then get pushed down to the consumer, who will pay more for goods. `The fact is small businesses have been hammered by everything that's going on, ` Hime said. ‘Now is not the time to pass a $12B tax increase when property owners and small businesses are struggling to get things going again.’”
Click here to read more.
According to a recent PPIC released earlier this week, support for the measure is currently at 50% and opposition is at 47%. Research confirms that if our industry has sufficient resources to communicate with voters this measure will be defeated. If you want help make that happen, click here.
WILLIE BROWN OPPOSES SPLIT ROLL - HURTS MINORITY OWNED BUSINESSES
This week, former Assembly Speaker and San Francisco Mayor Willie L. Brown, Jr. penned an opinion piece in CALmatters explaining how the $12.5 billion-a-year property tax hike measure will hurt minority-owned small businesses.
Brown argues the flawed measure will negatively impact small businesses due to rent increases from skyrocketing property taxes. Small businesses are particularly hurt by the COVID-19 pandemic and the resulting economic shutdown.
We agree wholeheartedly with Speaker/Mayor Brown! Click here to read his op/ed opposing split roll.
Additionally, coalition of African American civil rights, faith and community leaders announced their opposition today to the $12.5 billion-a-year property tax increase measure headed to the November ballot. Click here to read all about it.
ECONOMIC POLICY ASSISTANCE OFFERED BY BUSINESS ASSOCIATION
Seventeen business groups in Sacramento, representing tens of thousands of companies, employing millions of Californians, have pledged a willingness to assist the Governor in getting our State’s economy back on track.
Click here to read the letter signed by Rex S. Hime representing the commercial real estate industry.
JUDICIAL COUNCIL EMERGENCY RULES WILL CAUSE UNNECESSARY DELAYS
At its meeting two weeks ago, the Judicial Council approved 11 temporary emergency rules, including setting bail statewide at $0 for misdemeanors and lower-level felonies to “safely reduce jail populations” and staying eviction and foreclosure proceedings to protect Californians from losing their homes during the COVID-19 pandemic.
This was the second emergency council meeting of court and branch leaders from around the state to consider further measures to ensure California courts—which remain open as "essential services" under Gov. Newsom's stay-home executive order—can meet stringent health directives while also providing due process and access to justice.
Unfortunately the order has a number of unintended and uncontemplated impact that will severely hamper the recover. CBPA, as well as several other groups, have asked the Judicial Council to revise these rules as soon as possible. For real estate there are a number of impacts, including extending the time in which unlawful detainer actions can begin.
However, of utmost urgency, is revising Emergency Rule No. 9 extends all statutes of limitations for all civil actions until 90 days after the Governor declares that the state of emergency related to COVID-19 is lifted. This rule has the potential of stopping project as part of the CEQA process.
Click here to read CBPA’s letter asking the Judicial Counsel to revise emergency Rule No. 9.
AMENDED BILL WOULD REQUIRE 25% STATEWIDE RENT REDUCTION
AB 828 (Ting; D-San Francisco) has been amended to, among other things, require a 25% statewide rent reduction for residential properties. This bill would devastate the rental market in California, and we have joined a coalition opposing the bill.
Click here to read the opposition letter to AB 828.
COVID-19 RESOURCES PAGE
The reaction to COVID-19 is fluid and fast. There are many sources of information out there and until things start to settle down will only send essential updates that impact our industry.
To that end, we have created a “COVID-19 Resources” page where we will collect and post information specific to commercial real estate. We will also link to local and national real estate resource pages.
We hope consolidating this information will help you as you work with local authorities on emergency response plans, shelter-in-place orders, defining “essential” businesses, and other important issues.
If you have pages that you find particularly helpful, please let us know and we will link to them.
Click here to view CBPA COVID-19 Resources Page.
CBPA 2020 CALENDAR
Tuesday-Wednesday, June 9-10
California Commercial Real Estate Summit
Cal Chamber, Sacramento
DUE TO SHELTER IN PLACE ORDERS THIS EVENT IS CANCELLED
Thursday, November 5
CBPA Board Meeting & Industry Awards Dinner
The Renaissance Hotel, Newport Beach
