Left to right: David Krumwiede (Lincoln Property Co.); Tom Johnston (Cushman & Wakefield); Chris Toci (Cushman & Wakefield); Clay Wells (McShane Construction Corp.); Joe Ihrke (Carlson Real Estate); Mike Haenel (Grubb & Ellis); Katrina De Baker (NAIOP Arizona Vice President); Mitch Rosen (SunCor Development Co.)

NAIOP Arizona joined forces with members from the International Council of Shopping Centers, BOMA-Arizona and the Valley Partnership to host their fourth annual Day at the State Capitol on February 19. The event took place on the Senate Lawn of the State Capitol in Phoenix. NAIOP members and their co-hosts provided an opportunity to educate lawmakers and their staff on important issues relating to commercial real estate development. Each of the members’ association presidents were given the opportunity to speak to the crowd of more than 100 individuals to promote the commercial real estate agenda.

Steve Betts, president and CEO of SunCor Development Company, presented a keynote address on the current state of the commercial real estate market and how over-regulation would be detrimental to the industry. He described economic development as a driving force to help invigorate the state’s economy and reiterated that our members are the in the driver’s seat. The industry aims to continue to provide this leadership with the support of the Arizona General Assembly on legislative issues such as regulatory reform of impact fees.

Steve Betts, president and CEO of SunCor Development Company, addresses lawmakers and participants.

Betts thanked the legislators for their hard work on behalf of the four associations and encouraged everyone to continue the dialogue on issues vital to the welfare of commercial real estate.

2009 Legislative Priorities:
Arizona’s General Assembly members were in attendance to hear the industry’s pressing legislative issues and review the economic impact commercial real estate development has on the state, as illustrated on NAIOP Arizona’s 2009 state cards.

NAIOP Arizona comprises 320 member companies. In 2008, the commercial real estate development industry was responsible for contributing the following to the state’s economy:

NAIOP Arizona President Tim Lawless and State Senator John Nelson (R-District 12)

• Contributing $262.3 million in total output to the economy
• Generating $88.4 million in income
• Supporting 3,079 jobs
  In addition, existing buildings contributed $130.1 million in direct spending to Arizona’s economy.

NAIOP outlined the following issues as priorities for the 2009 general session:

• Regulatory Reform of Impact Fees – Support of regulatory reform efforts to amend the impact fees process to ensure that businesses are paying their fare share.
• Opposition of Mandated Commercial Real Estate Cost Increases – NAIOP Arizona opposes tax and fee increases that unfairly single out the business community as a sector in order to balance the state budget deficit. In regards to GPLET (Government Property Lease Excise Tax), NAIOP Arizona opposes legislation to eliminate or significantly impair the ability of municipalities to utilize this important incentive program as it is vital in promotion re-development.
• Support of Economic Development – NAIOP Arizona is in support of renewable tax credits (i.e., solar) that create high paying jobs and diversify the state’s economy.