02/12/86 - Laserfiche WebLink

Home

I LEGISLATIVE COMMITTEE REPORT I Members of the legislative committee have been closely monitoring the tax bill that recently came out of the House Ways and Means Committee and was approved by the full House of Representatives. On November 22, many NAIOP members contacted the offices of Representative Bill Frenzel (Third District), member of the Ways and Means Committee, to voice concerns over the treatment of real estate in the tax bill. Representative Frenzel resisted approval of the bill in committee and during the full House vote. The tax bill, as it now stands, impacts the real estate industry in four ways: I. Real Estate depreciation would be switched to a 3O-year straight-line schedule. 2. Prohibition of investors deducting more than they are in- vesting in a project (at risk rules). Exempt from this pro- hibition are transactions financed by third parties. It is unclear what impact this change would have on joint ven- tures with a financial institution. Investment interest deductions will be limited to $20,000 above investment income. This includes investment in- come. 3. I MEMBERSHIP COMMITTEE UPDATE I We move into 1986 with well over 200 members, making us the I fourth largest NAIOP chapter in the United States. More impor- tant, our chapter has received national acclaim for the quality of our monthly programs and the high level of voluntary member par- ticipation in making our local chapter work. I Each member has by now received a statement for 1986 national NAIOP dues. Our national office relies upon these dues to coor- dinate the national activities of NAIOP, and to organize the quality I PROGRAM COMMITTEE NEWS I I Last month, John Davis, Senior Vice President of Eberhardt Realty, pro- vided timely comments on interest rates and available financing packages prior to introducing his guest speaker, Larry Melody. I want to thank John for organizing, speaking and finally arranging for Larry Melody 10 I address our Chapter. Larry provided his ever-insightful, interesting and humorous observations of the real estate and finance markets. This mark- ed Larry's second appearance and I am sure that he will return. Thank you again, John, for your efforts on behalf of the Program Committee and for an outstanding financing update. 4. Investment tax credits are repealed. The tax bill now moves to the Senate where President Reagan pro- mises to re-shape it. It would not be too early to let Senators Boschwitz and Durenburger hear from you on this issue. Locally, the drive to eliminate Minnesota's number I position in the area of commercial and industrial property taxes continues. Shenehon & Associates, Inc. is updating the study they did showing 1983 property taxes on comparable industrial buildings throughout the nation. Shortly after the New Year, the Legislative Committee is to have an informal working breakfast with Governor Perpich, to keep him informed of the issues involved. The Minnesota Association of Commerce and Industry continues to be an ally in NAIOP's efforts to reduce commercial and in- dustrial property taxes. Meetings are to be held shortly to set up a coalition of interested parties and an agenda to achieve the goal of tax reduction. Updates will continue to appear in the newsletter as progress is made. The next scheduled meeting is at 7:30 a.m., January 23 at the offices of Marfield. Belgarde, & Yaffe. Bob Cunningham Acting Secretary. NAIOP Legislative Committee seminars it sponsors for members during the year. The national of- fice also provides fmancial support to our local NAIOP so that we can continue our efforts on behalf of the development community. Our chapter has never been stronger. During 1986, we will see our new legislative lobbying agenda take shape coordinated by our own staff lobbyist. The programs slated for our 1986 meetings will be more informative than ever. Participation by our members on the various committees haS never been at a higher level. Membership in NAIOP continues to be the best investment we can make to protect and preserve our interest. Thank you for your con- tinued support at the local and national levels. Steven B. Hoyt Membership Committee Chairman Mark your calendars for these upcoming programs: February 18: Moderators, Pat Ryan/Harry Yafree Ryan Construction Company of Minnesota Marfield, Belgarde & Yaffe Companies Multi-Housing Development Current and Long Term Development Trends Moderator, Program Committee Annual All-Day Seminar Amfac Hotel March 19: Thank you and 1 look forward to seeing you a the Radisson South Hotel on January 21. Greaory E. Bradbury Program Committee Chairman