Agenda - Council - 07/28/1981 - Laserfiche WebLink

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NAIOP LEGISLATIVE Margaret Smith, newly appoint - NATIONAL ed Coordinator of Public Affairs, ACTIVITY has been successful in obtaining the appointment of 37 new local legislative chair- men. In comparison with the 10 in office in early May, there are now 47 local chairmen. National President Marty Miller has met with Treasury Secretary Donald T. Regan and is pleased to report that non -owner occupied buildings as well as owner- occupied buildings will be granted faster write -offs, not 10 years but probably 15 years. The national staff also testified three times before various congressional committees to oppose restrictions on industrial revenue bond financing. Consider- able effort has been made to oppose Congress' attempt to permit the GSA to lease substantial portions of itsbuildings to the general public in competition with the private devel- oper. Next spring a week -long legislative seminar is planned in Washington, D.C. MINNESOTA TAXES used to bill the de er- AND ASSESSMENT P PROCEDURES mination of taxes on office/ warehouse buildings from the decades -old "fair market val basis to an economic value (income app roach) Considerable surprise was expressed at the endorsement of the change by BOMA and Bill Balsiger volunteered to explore BOMA's position. Several feared that real estate taxes on office buildings could increase as much as 30 -50%. Gover- nor Quie's increase in tax levies to offset Minnesota's budget problems brought general dismay and will serve only to scare off new businesses. However, it was explained that he had no choice. To reduce expenditures instead would have meant � e. working the results of the entire session, which would have been impossible. TAX INCREMENT Although we were success - FINANCING ful in defeating the attemp- ted elimination of tax - exempt financing for development districts, the committee was put on notice that the attempt will be revived at the coming session. CONDEMNATION Public Affairs Counsel Bob BY ZONING Hoffman reported that al- though the San Diego Gas & Electric Company lost its case on a technical matter, a majority of the U. S. Supreme Court did support the new philosophy that "zoning or regulation can be a taking and that therefore the owner may be entitled to damages..." Justice Brennan quipped that "...if a police- man must know the Constitution why not a planner!" ENVIRONMENTAL Public Hoffm Af has also b SUBCOMMITTEE selected as a member of the Special Task Force appointed by the Environ- mental Quality Board to develop standards so that local Comprehensive Plans and Ordinances reviewed by the Environmental Quality Board can take the place of Environ- mental Assessment and Impact Statement preparation. The Task Force has been organized on the basis of a memo that Hoffman and Sellergren suggested several years ago: a recent example was cited in which a proposed development con- sistent with the Comprehensive Plan was approved over neighborhood objection precisely because of the prior approval of the Comprehensive Plan. However, the new process can have the disadvantage of increasing the total volume of paperwork. Recent interpretations have included the rationale that "economic fact must b e taken i nto de- consideration' before i c veloper. A review of state policy regardi dertaken because fat curb" standards for housing is being u of the social implications of the high costs involved. In fact. it is rumored that some developers have obtained approval to install private streets in their housing developments to avoid the excessive requirements and save as much as one -third the cost of installation by the city. It was suggested that the industrial and commercial developer be prepared to take advantage of whatever new policy evolves. LEGISLATIVE Maps of the various legisla- ALERT tive districts and the mes, SUBCOMMITTEE addresses and p bers of the corresponding representatives will be distributed at a forthcoming breakfast meeting. As issues arise, special legislative alerts will be sent out describing the matters at hand and suggesting general content for each member to use in contacting his or her representa- tive. The group felt that Margaret Smith's May mailing was excellent and will provide similar materials for use by our Chapter. In addition to legislative contact in response to specific issues, it was suggested that our members maintain quarterly contact with their respective representatives in order to establish a continuing working relationship. It is important to develop a positive program bills that w e initiate legislation rather than merely opp "development industry. FUTURE The committee will use the OBJECTIVES summer months to develop new objectives for legislative action in this coming year. Public Affairs Counsel Bob Hoffman will prepare a list of suggested issues for the committee's review at the next meeting on July 14. NAIOP may wish to share these plans with Minnesota Bust- ness Partnership, BOMA, MACI, the Small Business Group, and the Minnesota Taxpayers Association. Chairman Jim Stuebner will contact these groups to find out what interest they may have in attending a general breakfast meeting of our Upper Midwest Chapter. Together these groups could do a better job of preparing the kind of factual analysis neces- sary to affect the administration. In particular, NAIOP may well be the only source of companies who have left Minne- sota because of high taxes. — Jeff Coult, Secretary NAIOP Legislative Committee