UPDATE: Proposition 13/Split Roll Property Tax Qualifies for the 2020 Statewide Ballot

UPDATE - October 16, 2018

Yesterday, it was announced that the initiative to dismantle Proposition 13 by creating a split roll has qualified and is eligible for the November 2020 ballot.

Under the proposal, all business properties will be reassessed to 2020 values and will be reassessed every three years thereafter. Commercial property will lose any certainty and one can only imagine the impact and cost to long-time property owners. The proponents of this effort believe it’s a $12 billion tax grab from the commercial real estate industry.

The California Legislative Analyst’s Office has warned that the switch would introduce far more volatility into the state's revenue stream.

BOMA California and the California Business Properties Association will continue to work closely with allied business and taxpayer groups on the statewide strategy to defeat this measure. Our industry has been preparing for this moment for some time. 

Click here to read the Proposition.

Click here to read a story about the initiative from the Los Angeles Times.

--------------------

Original Post - October 10, 2018

In August, proponents advocating for amending Proposition 13 and creating a split-roll property tax by ending the protections and certainty for commercial property, submitted signatures to place the initiative before voters on the November 2020 ballot.

Every commercial real estate organization - including BOMA California - has at some point over the last 30 years taken a position in opposition to split roll taxation – nothing in this measure changes that stance.

The measure itself is very clear in its actions:

• Bring all commercial properties to a new assessed 2020 value that becomes the new base year for taxation.
• Require that all commercial property be reassessed every three years thereafter.
• Establishes an exemption for properties valued at less than $1 million – however this is a questionable exemption as the property is reassessed every three years eventually it will lose that exemption.
• The measure removes all the tax protections provided by Proposition 13. 
• Ends the treating of all property the same for taxation purposes for the first time in California’s history. 

BOMA California is taking a strong opposed position against any proposed split roll tax initiative. Studies have shown it will have a negative impact on values, put many small businesses and tenants out of business. It will cost jobs and impact negatively the overall economy of California.

Feel free to visit this website for information: http://www.stophigherpropertytaxes.org/

BOMA San Francisco Opposes November Tax Measure Proposition C - The Largest Tax Increase in San Francisco History

The November ballot in San Francisco contains an initiative ordinance, Proposition C, which, if passed, would be the largest tax increase in the city’s history.

This measure would mostly affect the major tenants in BOMA member buildings and may have implications for BOMA members depending on your company’s San Francisco gross receipts tax category.

We urge you review the measure to determine how your enterprise may be impacted.

Proposition C is a NEW and additional tax measure that follows the passage of the current largest tax increase in San Francisco history on the commercial real estate industry in June for childcare and early education.

For many of San Francisco’s largest employers, it will double both the Gross Receipts and Administrative Office Taxes. This measure imposes $300 million of new taxes on approximately 200-300 businesses and locks in the existing $382 million the city currently spends for homeless services. The result is a $682 million budget set aside, by far the city’s largest, which during the next recession will result in huge general fund cuts.

This measure targets the largest professional service firms, retailers, hotels and headquartered companies - businesses that employ 20% of our workforce and generate 40% of the city’s business taxes.

The solution to our homeless epidemic is not just more money spent the same way – we need to be smarter, more creative and more accountable.

Prop. C has no plan, no reform and no accountability.

The San Francisco Chamber of Commerce is leading the campaign along with the Committee on Jobs, Hotel Council and BOMA San Francisco in organizing the campaign against this measure. Recent polling shows with a well-funded, well-organized campaign, Proposition C can be defeated. Please click here to find additional information on the measure, as well as how to contribute to the campaign by clicking here.

For more information on how you can help, please email: info@noonpropc.com.

BOMA Protects the Commercial Real Estate Industry - Proposition 13/Split Roll Property Tax

In August, proponents advocating for amending Proposition 13 and creating a split-roll property tax by ending the protections and certainty for commercial property, submitted signatures to place the initiative before voters on the November 2020 ballot.

Every commercial real estate organization - including BOMA California - has at some point over the last 30 years taken a position in opposition to split roll taxation – nothing in this measure changes that stance.

The measure itself is very clear in its actions:

• Bring all commercial properties to a new assessed 2020 value that becomes the new base year for taxation.
• Require that all commercial property be reassessed every three years thereafter.
• Establishes an exemption for properties valued at less than $1 million – however this is a questionable exemption as the property is reassessed every three years eventually it will lose that exemption.
• The measure removes all the tax protections provided by Proposition 13. 
• Ends the treating of all property the same for taxation purposes for the first time in California’s history. 

BOMA California is taking a strong opposed position against any proposed split roll tax initiative. Studies have shown it will have a negative impact on values, put many small businesses and tenants out of business. It will cost jobs and impact negatively the overall economy of California.

Feel free to visit this website for information: http://www.stophigherpropertytaxes.org/

UPDATE: San Francisco's Better Market Street Project

BOMA San Francisco's members along Market Street and adjacent streets have been well-represented by Jose Guevara, long-time volunteer of the association. Jose is BOMA's representative monitoring the Better Market Street Project.

Here is the current status of of the BMSP:

• Master design 100% complete 
• Overall concept for street design 
• Replacement of sidewalk brick with concrete pavers 
• Sidewalk width to be reduced and standardized 
• Replacement of historical street lamps/poles with new replicas 
• All trees to be replaced (with less locations)
• Muni stops 
• Delivery zones 
• Landscape locations 
• Standard kiosk design for all locations 
• Start at Octavia Street to the Embarcadero

• Detailed design 15% complete 
• Pavers (style/material/size/color) not yet selected 
• Landscape areas design/plants/maintenance not yet determined 
• Bike lanes and associated barrier not yet determined 
• Utility lines replacement coordination not yet done 
• Coordination with Muni, BART, newspaper rack vendor, kiosk vendors, City services etc not yet initiated
• Design of kiosks not yet addressed
• Design of Muni stops and delivery locations still in discussion
• Project to be done in sections: 
• No determined sequence yet: 
• Octavia to Van Ness
• Civic Center (Van Ness to 6th) 
• Mid-Market (6th to 3rd) 
• 3rd to Fremont 
• Fremont to the Embarcadero 

• Expected activity 
• Excavation (trenches the size of a small truck) to start in August on Market street at various locations to identify utility (type/lines/boxes) location to determine how to reroute. 
• Design to be tested initially on Market from 8th Street to 6th Street. Test phase projected to start within the next 6 months.

BOMA San Francisco Members Meet with San Francisco District 8 Supervisor Rafael Mandelman

BOMA San Francisco members had the opportunity to meet with Supervisor Rafael Mandelman recently. Mr. Mandelman was recently elected to the position and this was the first official BOMA meeting with him.

District 8 encompasses The Castro, Noe Valley, Diamond Heights, Glen Park, Corona Heights, Eureka Valley, Dolores Heights, Mission Dolores, Duboce Triangle, Buena Vista Park, and part of Twin Peaks.

Key issues discussed included:

• The state of the commercial real estate industry;
• Tax policy;
• Ongoing communication with Supervisor Mandelman and BOMA;
• Mr. Mandelman's priorities for the City
• Affordable housing;
• Support for public schools;
• Neighborhood vitality;
• Transit.

We thank Supervisor Mandelman for his time and look forward to working with him soon. 

About Supervisor Mandelman

Supervisor Rafael Mandelman represents District 8 on the San Francisco Board of Supervisors.

Prior to his election, Supervisor Mandelman served as a Deputy City Attorney for the City of Oakland and as an elected Trustee on the City College of San Francisco Board of Trustees. As a Deputy City Attorney​, Supervisor Mandelman practiced primarily in the areas of real estate, economic development, and affordable housing.

Supervisor Mandelman has been active on a variety of public and nonprofit boards, having served as a commissioner on San Francisco’s Building Inspection Commission and Board of Appeals, a member of the Bay Area Jewish Community Relations Council, president of the Board of Directors of Livable City, and Co-Chair of the San Francisco LGBT Community Center Board. A past president of the Noe Valley and Harvey Milk LGBT Democratic Clubs, Supervisor Mandelman has been an elected member of the San Francisco Democratic County Central Committee since 2006.

Supervisor Mandelman grew up in San Francisco, attending Brandeis-Hillel Day School and Lick-Wilmerding High School prior to earning a B.A. in History from Yale College, a Master of Public Policy from Harvard’s John F. Kennedy School of Government and a law degree from UC Berkeley’s Boalt Hall School of Law.

BOMA San Francisco's Annual Emergency Preparedness Seminar on September 20th - Thank You!

SFPD Chief Bill Scott and Keynote Presenter Dr. Erroll Southers

Without question, this was a great seminar thanks to our BOMA San Francisco Emergency Preparedness Committee leaders and presenters. Special thanks to our sponsors (including food/coffee sponsor Montgomery Technologies) and public sector emergency response partners:

San Francisco Police Department Chief, Bill Scott

San Francisco Fire Department Assistant Deputy Chief, Michael Cochrane

San Francisco Department of Emergency Management, Mary Ellen Carroll 

KEYNOTE, Managing Director of the International Security Consulting Group TAL Global, Erroll Southers  

2018 Seminar Focus

Cybersecurity incidents are high-speed, unstructured and diverse. Crisis management for these cases is intense and demanding. BOMA’s Emergency Preparedness Seminar had attendees participate in a tabletop exercise where things were not as they seem. Attendees received key preparedness information to take back to their ownership/property management group, engineering and security teams, and tenants.

Emergency Preparedness Committee Speaker and Event Moderator

Bonnie Kalbrosky, 2018 Chair of BOMA San Francisco’s Emergency Preparedness Committee & Senior General Manager with JLL

Jeff Ellis, CPP, Director of Security & Life Safety, Paramount Group, Inc.

Rail Alignment and Benefits (RAB) Study - Property Owners May Be Impacted

Recently, BOMA San Francisco's Government Affairs Policy Advisory Committee (GAPAC) met with Susan Gygi, PE, with the San Francisco Planning Department regarding an important plan that may affect BOMA members.

The Rail Alignment and Benefits (RAB) Study is analyzing the best ways to bring Caltrain and High Speed Rail to the Salesforce Transit Center while connecting San Francisco's fastest-growing neighborhoods on the east side of the City.

Rail alignment, while esoteric, may have a major impact on adjacent property owners when the project is final and construction begins:

• Watch the RAB presentation given at SPUR or see the slides here.
• Click here to review an article on the subject from the San Francisco Examiner: Downtown rail extension route to Salesforce Transit Center wins approval

To coordinate and support efforts of Caltrans, Caltrain, High Speed Rail, the Transbay Joint Powers Authority, the RAB Study includes 5 components:

Study Components Map

1. Rail Alignment into the Salesforce Transit Center (SFTC)

This component seeks to answer the most time sensitive question of the RAB: how to bring both Caltrain and High-Speed Rail from the county line into the Salesforce Transit Center.

2. Railyard Reconfiguration/Relocation

This component considers reknitting the fabric of the City by modifying or relocating some or all of the activities at the 4th/King Railyard.

3. Urban Form and Land Use Considerations

Relocating the Caltrain Railyard and/or other infrastructure changes could make new land available for the restoration of the street grid, improved bike/pedestrian connections, elimination of rail hazards and noise, and construction of housing, commercial development, and open space. This component considers these issues at a conceptual level and provides a baseline for future study.

4. Transit Center (SFTC) Extension/Loop

This component explores future scenarios for train connections and operations beyond the initial connection to the SFTC to improve station capacity and/or rail connections beyond SFTC to the East Bay or back down the Peninsula.

5. Boulevard I-280

This component analyzes the interaction between proposed rail alternatives and the I-280 structure to ensure that the rail alignment does not preclude the possibility of future changes to I-280 north of Mariposa.

Please reach out to johnb@boma.com with any questions.

BOMA California Advocacy Update: Water Replacement Mandate by 2019

Water Fixture Replacement Mandate - Must Complete by 2019

As of January 1, 2014, SB 407 requires non-compliant plumbing fixtures to be replaced with water conserving plumbing fixtures when a property is undergoing additions, alterations or improvements. Applicants seeking to obtain permits for any of these types of work will be required to replace non-compliant fixtures prior to final permit approval or issuance of a certificate of occupancy by the local building department.

This law applies only to properties built on or before January 1, 1994, and by January 1, 2019, ALL those pre-1994 buildings must comply with these requirements, regardless of whether or not you are planning to renovate the space.

The California Association of Local Building Officials (CALBO) has worked with some of its local building official members to clarify the requirement. Here is an info sheet from the City of Santa Clara that will help you determine if your building is in compliance or not (but the general rule of thumb is that if it was built after 1994, or has been renovated since then, you will most likely be in compliance)

Plumbing Fixtures Replacement (SB407) for Existing Single/Multi-Family Residential and Commercial Buildings. Click here to read more.

The law does have the following exceptions; per Civil Code Section 1101.7, this article shall not apply to any of the following: a) Registered historical sites; b) Real property for which a licensed plumber certifies that, due to the age or configuration of the property or its plumbing, installation of water-conserving plumbing fixtures is not technically feasible; c) A building for which water service is permanently disconnected; d) Building was built and available for use on or after January 1. 1994

The original bill gave our industry 10 years to comply with this measure, at our request (the bill originally only gave five years to comply). We still believe that is a reasonable time horizon set by the state and continue to encourage our members to make sure you have completed this work within the allotted time frame.

Second San Francisco Seawall Community Meeting - Explore Seismic and Flooding Scenarios

BOMA San Francisco Members:

You're Invited to the second Seawall Community Meeting!

Event Details

Wednesday, September 26

5:30 PM - 7:00 PM

The Exploratorium's Fisher Bay Observatory Gallery, Pier 15

Embarcadero and Green Streets

RSVP for the Seawall Community Meeting

Join the Port of San Francisco at the second in a series of Seawall Community Meetings to learn more about the Embarcadero Seawall, explore seismic and flooding scenarios, and participate in an interactive mapping exercise.

The event will be held in the Exploratorium’s beautiful Fisher Bay Observatory Gallery. 

Refreshments served!

2018 San Francisco Zero Graffiti Huddle: Smart Solutions!

The members of the San Francisco Graffiti Advisory Board (GAB) - including Doug Hayward with CBRE, would like to invite you to participate in the 2018 Graffiti Huddle: Zero Graffiti -- Smart Solutions!

October 17th

11:30 a.m. to 4:30 p.m.

The San Francisco Public Library

100 Larkin Street, (at Grove Street)

Koret Auditorium, located on the lower level

This is not a Library Sponsored Program

The Huddle goals are to create a network of neighborhood and business representatives to share ideas, best practices and innovative campaigns aimed at eradicating graffiti vandalism.

The Huddle program will include presentations discussing the many issues victims of graffiti vandalism face, how to address the problem, and smart solutions! Our interactive presentations will give attendees the opportunity to provide input and a Q&A portion.

BOMA San Francisco is sponsoring this wonderful program again this year. Please consider attending.