For this show, we are going to focus on two key topics; (1) The California Split Roll Tax Initiative, (during the first half of the show; and (2) Lease Operating Covenants, which we will discuss in the second half of the show. Our special guests include Rex Hime, who will discuss the Split Roll Tax Initiative and attorney, Ira Meislik who has written numerous articles on his blog, “Ruminations”. For more information on our guests, read on.
You can watch the live show by clicking on your social media platform of choice, below.
CALIFORNIA SPLIT ROLL TAX INITIATIVE
California taxes its landowners in a unique way. You may have heard of Prop 13, a tax initiative which amended the California Constitution in 1978. This amendment to the constitution limited the taxes on real property to one (1%) percent of the full cash value of the property and further restricted annual increases to, no more than, two (2%) percent, per year. With certain exceptions, the property is initially assessed at the purchase price at the time of purchase and/or upon improvement to the property. Listen or download the audio only podcast, here.
Prop 13 has always applied to both, residential and commercial properties, despite numerous past attempts to treat commercial property differently from residential. There is now a new attempt to carve commercial properties from the protections of Prop 13, in the form of a new Proposition to be on the November 2020, statewide ballot. For more information, click here.
Rex Hime, President of the California Business Properties Association has taken a hard stance against this new proposition and any attempt to change the way California treats the taxation of commercial properties. In this show, Rex will explain what the new proposition(s) provide and why he opposes their passage.
For more detailed information about Proposition 13 on Wikipedia, click here.
LEASE OPERATING COVENANTS
A few weeks back, our Guest, Ira Meislik wrote a blog post about a state of Washington case that dealt with an Operating Covenant in a retail lease that required the shopping center anchor to stay open during minimum operating hours as required by the landlord.
Unfortunately for the landlord, this was not a boilerplate provision. To both Ira and I, this appeared to be a highly negotiated lease provision with language inserted by the tenant. The final negotiated language appears to be, not fully, thought out by the landlord or the landlord’s attorney. To read Ira’s full blog post, click here.
In this segment of our show, Ira, Peter and I will:
Describe what an Operating Provision is and why it is used; and
Discuss various options, negotiations and language that the parties could have considered
OUR GUESTS
REX HIME | LINKEDIN
Rex Hime is a native Californian, graduated from the University of California at Davis with a B.A. in Political Science and received his law degree from the UC Davis School of Law. Active in civic, church, military service and alumni activities Rex has shown a continued commitment to community involvement. He has served as the Presidential as well as the California State Assembly Representative on the Tahoe Regional Planning Agency and was a member of the California Task Force on Violence Prevention. Rex also most recently served as a Regent of the University of California.
Prior to joining California Business Properties Association (CBPA), Rex served on then Governor Reagan’s educational staff and as Assistant to the Director for the State Department of Consumer Affairs. Later he was the Executive Director of the California State Commission for Economic Development, Director for the California Commission on Agriculture and as a Special Assistant to the Lieutenant Governor. His legislative experience includes service as the Senior Assistant to the Minority Leader of the California State Assembly.
With a membership of more than 10,000, CBPA is the designated legislative advocate for the International Council of Shopping Centers (ICSC), the California chapters of the National Association of Industrial and Office Properties (NAIOP), the Building Owners and Managers Association of California (BOMA CAL), the Institute of Real Estate Management (IREM), the Retail Industry Leaders Association (RILA), the California Downtown Association (CDA), the CCIM of Northern California, and the Association of Corporate Real Estate Executives (ACRE) of Southern California.
Rex’s abilities and extensive background have qualified him as an acknowledged spokesman for the philosophy and direction of greater economic and individual freedom as well as the commercial industrial real estate industry.
IRA MEISLIK | LINKEDIN
Ira Meislik is the managing partner and principal of Meislik and Meislik. His practice is focused on all aspects of commercial real estate transactions, with particular emphasis on retail real estate matters. He also works in the business transactions area, where he is known for his emphasis on using and structuring unincorporated entities.
CO-HOSTS
PETER MORRIS | LINKEDIN
Peter is the principal of The Greestead Group, based in Vancouver, British Columbia. For 30+ years Peter has worked with global companies to elevate their success. A proven business and real estate strategist, and experienced leader with international experience, he provides customized solutions using proven global best practices in many aspects of business and real estate.
Prior to forming Greenstead, he served as the COO of Partners REIT, SVP Real Estate Management, North America for Colliers, International, and VP, Retail for Brookfield Real Estate.
As a consultant he has provided strategic advice and training across North America, including Mexico; Asia; South America and the Middle East.
His personal brand is that of a “Builder”. A builder of innovative solutions, people, teams, organizations and sustainable results.
HOWARD F. KLINE, ESQ.
Howard F. Kline is a Nevada licensed real estate advisor with SVN The Equity Group, located in Las Vegas Nevada. He has also been a licensed California attorney for over 42 years, primarily focused on commercial real estate and has been a licensed California broker and a licensed New York real estate agent. He is also the founder and host of CRE Radio & TV, an online commercial real estate magazine since 2010 and recently founded the Las Vegas Business Journal, an online, media rich, interactive business magazine. For more information, contact Howard at 702.706.4433 or at howard.kline@svn.com.