BOMA Government Affairs Committee

The Government Affairs Committee meets on the first Thursday of the month at noon at the BOMA office. Please plan to attend the next meeting. All members, both Principal and Allied, are invited to participate in this important committee, which covers a variety of governmental issues that impact the commercial real estate industry. One of the primary benefits of serving on this committee is that you get advanced information about issues that impact you and your building or company

Legislative Affiars

The next LAC meeting will be held on Thursday, August 19th at 8:00 a.m. at the BOMA office. A conference call option is also available. At the August meeting we will plan BOMA’s activities for the election cycle and discuss candidates, ballot initiatives and BOMA PAC contributions. If you want to be included, please contact Shawn Murphy chair of the LAC at shawn.murphy@grubb-ellis.com, or the BOMA office.

Colorado BOMA PAC

The Legislative Affairs Committee and Colorado PAC will sponsor a contest hole at the July 15th BOMA golf tournament at the Ridge at Castle Pines North to raise money for the BOMA Colorado PAC. This is an election year and the BOMA PAC helps to support candidates who are willing to listen to our concerns. Please plan to contribute at the tournament, or, you may contribute any time by contacting the BOMA office.

How Many Jobs Do Office Buildings Support Colorado?

For each $1 million of outlay for office building operations in 2009, 24.4 jobs were supported nationwide, resulting in a total of more than one million jobs directly supported by office building operations. The findings are from a new report released by BOMA International, The Contribution of Office Building Operating Outlays on the U.S. and States’ Economies in 2009, which details the impact of commercial office buildings on the national and local economies. The study provides a powerful snapshot of the industry’s contribution to the economy, the jobs it supports and the subsequent earnings it generates. To find out more about how office buildings contribute to Colorado and local economies, visit the Report’s website and click on Colorado. The research was funded through BOMA International´s Industry Defense Fund and will be used to augment BOMA’s advocacy efforts at all levels of government.

Senate Efforts to Pass Carried Interest Continue

With the House having passed its version of carried interest prior to the Memorial Day recess, the Senate has been engaged in efforts to pass its own version of the “American Jobs and Closing Tax Loopholes Act” (H.R. 4213). The House version treats carried interest as 50 percent ordinary income and 50 percent long-term capital gains for two years, then moves to a permanent 75/25 split (75 percent ordinary income/25 percent capital gains) with an effective date of Jan. 1, 2011. Last week the Senate failed to invoke “cloture” on its initial proposal and will once again attempt to invoke cloture tomorrow morning with a less expensive bill that taxes the carried interest on an asset held for less than five years as 75 percent ordinary income and 25 percent capital gains. If held for five years or longer, the carried interest is taxed as 50 percent ordinary income, 50 percent capital gains. In order to invoke cloture, the Senate needs 60 votes, which would then limit debate and allow for a final, majority rule vote. BOMA International continues express its opposition to changing the taxation on carried interest at a time when the industry is still attempting a recovery. If you haven´t already done so, it’s not too late to make a call or write your elected officials today.

EPA Knee Deep in Stormwater

On May 10, 2010, the U.S. Environmental Protection Agency (EPA) released a notice that the agency plans to move forward on an information collection request (ICR) on stormwater management including discharges from developed sites. EPA has drafted questionnaires that it intends to send randomly to owners and developers of developed sites.

BOMA International, in conjunction with the Real Estate Roundtable, International Council of Shopping Centers and several other real estate associations, filed comments on June 9, 2010 on the EPA´s information collection request and plans to continue to work to educate EPA, OMB and the Small Business Administration that this is an expansion of EPA´s authority and EPA should not be able to proceed without first following the process proscribed in Sections 308 and 402 of the Clean Water Act. Under the Act, EPA presently regulates point sources, including active construction sites. By sending the proposed ICR to owners of already developed properties, we believe EPA is expanding its authority well beyond that given to it under the Clean Water.