Government Affairs Update - January 2021

Government and Industry Affairs Update - January 2021
BOMA’s mission is to be essential to commercial real estate by enhancing value through advocacy, education, information, professional development, and industry networking.The value to BOMA’s stakeholders from the advocacy work BOMA does at the national, state, and local level is immense. BOMA membership supports these efforts by investing approximately one cent per square foot and the return on investment is considerable. Learn about your ROI on BOMA membership.

Be part of BOMA’s Advocacy Team. Be encouraged to join BOMA’s Government and Industry Affairs committee. Please contact Justin Wallander for more information.

Please be encouraged to participate in BOMA’s Virtual Olympia Day on February 3rd. Register for free here.

Key BOMA Issues for the 2021 Legislative Session and Local Advocacy

Support

• Tax Increment Financing (TIF) – Being developed by a coalition, this broad tool is needed to encourage development in partnership with State and local governments.
• Commercial COVID Property Tax Deduction/Value Reassessment – Real estate values have been dramatically impacted by COVID, this major event should be factored into finding relief for Commercial Property.
• Delay implementation of HB 2701 until July 1, 2022 – New damper testing regulations

Oppose

• Dual Agency Ban – While 42 states allow dual agency representation, this bill would increase costs by prohibiting a broker from representing both parties in a transaction.
• Sales tax on leases/rent – should it be proposed.
• Commercial Rent Waiver/Commercial Eviction Ban – Lawmakers have already spoken about their interest in extending “small business relief” including rent abatement and eviction prohibition for months or years.
• State Capital Gains Tax – Proposed as high as 9 % and would be a precursor to a State Income Tax because WA would be the only State with a State Capital Gains Tax without a State Income Tax.  
• Removal of sales tax exemption on janitorial services – should it be proposed.

Monitor

• State Payroll Tax – Proposed Seattle-style tax on all Reopening Procedures for Commercial Property – BOMA need to be involved with the Governor’s staff
• and lawmakers working on the process for reopening our industry.
• Transportation Package – BOMA has been involved with prior Transportation packages to ensure that they include BOMA’s priorities
• Rent Control – BOMA would not be primary but could be part of a broad coalition of real estate entities who have opposed and killed rent control in WA State.
• Green Energy/Environmental Mandates – Continue to monitor green energy and environmental proposals introduced in the Legislature to ensure that they are workable for commercial real estate members. Including a proposed ban on fossil fuels in new constriction (State and Local level)

Key Local Issues

1. Public Safety
2. King County C-Pacer: Meeting with King County/Workshop
3. City of Seattle 2022 Participatory Budget Process
4. City of Seattle Department of Transportation: Review of TMP Program
5. City of Seattle Energy Code to Council this Month: Connect with CM Strauss
6. City of Seattle 2021 Elections: The Mayor and the Councilmembers at large terms are up in 2022. Mayor Durkan not running; CM Mosqueda has announced she will run for re-election; CM Gonzales has not committed.

C-Pacer King County
Building owners need to let King County know what specific features of the C-PACER program will encourage use of this innovative financing mechanism to making your facilities more efficient and resilient.

Join King County on January 27, 2021 for an online workshop about the development of the County’s Commercial Property Assessed Clean Energy + Resiliency (C-PACER) program. In this hour-long session, King County staff will provide a brief overview and context of the C-PACER program, highlight resources and King County’s process, and hold a facilitated discussion to get input from stakeholders.

The workshop will be held from 2pm – 3:30pm. The presentation is an hour in length, with additional time for questions if necessary. Zoom details and registration are available at the link below. The workshop is free, but please register if you plan to join. Register Here.

City of Seattle Energy Code Update to Council Committee in January
BOMA has had a number of meetings with the city to express concerns over certain elements of the code. While most of the code addresses new construction, the way in which the code begins to eliminate the use of natural gas will impact the built environment as well. There have been no studies to indicate that Seattle City Light will have the resources and infrastructure to provide the power to all electric buildings, nor do we know what the impact will be on the existing gas infrastructure that should continue to provide energy to existing buildings. Advocacy will send a letter to the Mayor and Council identifying these and other issues.

Public Safety
Proposal for Misdemeanor Basic Need Defense

Seattle City Councilmember, Lisa Herbold, intends to introduce legislation amending the Seattle Municipal Code to add a defense against prosecution of misdemeanors on the basis that an individual committed a crime to meet an immediate basic need due to poverty or behavioral health issues.It is reasonable to believe that implementation of this policy would have a negative impact by discouraging officers from making arrests and prosecutors from filing formal charges in Municipal Court, exacerbating the already intolerable public safety issues we face, particularly in downtown Seattle.There is no accompanying plan to require intervention and provide the help that many of the perpetrators need.  

Incident Reports and Survey

BOMA has sent out a public safety survey to our members in King County similar to the one we did in 2019. We have also set up a program that allows our members to report incidents in downtown Seattle. Report an Incident here.This information is critical in sending a message to the Seattle policy makers about the need to significantly improve the public safety conditions in downtown Seattle.

Public Safety Task Force

The BOMA Public Safety Task Force continues its valuable work in advocating for public safety downtown Seattle.  Councilmember Lewis generously spent about two hours doing a walk through of the central business district and Pioneer Square, hearing our concerns and sharing his ideas for improving the environment. We have reached out to others on the Council as well as the Mayor’s office and expect to meet with them soon.
 
City of Seattle Department of Transportation: Review of Transportation Management Program (TMP)
The City of Seattle is beginning a process to determine the success of the TMP and consider how they can track and enforce more effectively. BOMA Advocacy is engaged to ensure that our members voices are heard.