7/04/2007

Topic: Sustainability & Job Creation
Speakers:
Brian Reilly-Director of Economic Development, City of Cleveland
Andrew Watterson–Manager of Sustainability, City of Cleveland
Jon Ratner–Forest City Enterprises
David Beach –EcoCityCleveland
Melanie KintnerKnowles –Director, Green Building Coalition.

Senate Passes Energy Bill without Energy Mandates for Real Estate Development

Last week, the U.S Senate debated energy bill H.R. 6, the Clean Energy Act of 2007. Late Thursday evening, the legislation passed after Senators agreed to drop certain controversial provisions from the original package. A proposal was offered by Senator Charles Schumer (D-N.Y.).

The Schumer amendment would have mandated strict energy-efficiency targets, forcing states to adopt the rules as a part of their building codes. In fact, the language of Schumer’s amendment would have required state and local governments to adopt new energy codes for new construction and renovations every three years. The mandated codes would have, at a minimum, required buildings to be 30 percent more energy efficient by 2015, and 50 percent more energy efficient by 2022.

NAIOP, along with a coalition of real estate interests, led the opposition to Senator Schumer’s amendment. NAIOP chapters and members weighed in with letters and calls to their Senators. The coalition successfully educated Senators and staff on the potentially devastating impact the Schumer amendment could have on the commercial real estate industry.

The Senate-passed energy bill also left out important tax provisions originally passed by the Senate Finance Committee, including tax deductions for energy-efficient commercial buildings. The $32 billion tax package included large tax increases on the oil and gas industries, ultimately garnering widespread opposition in the Senate. The energy-efficient tax deduction provisions, however, are expected to be included by the House of Representatives in another tax bill before the end of the year.

June 29, 2007

House Bill Would Increase Taxes on Partnership "Carried Interest" Income

On June 22, Representative Sander Levin (D-Mich.) introduced legislation that would increase taxes on "carried interests," or certain income received by members in a real estate partnership. In many partnerships, a portion of a managing general partner’s compensation for services is based on the ultimate success of the venture rather than as salary. Known as “carried interest” income, it has been taxed at capital gains tax rates (15 percent) instead of higher ordinary income rates. The Levin bill would require that “carried interest,” regardless of the nature of the underlying assets involved, would be taxed as ordinary income.

House Democrats argue the legislation is needed because many large, private equity funds and hedge managers have been receiving hundreds of millions of dollars in fees for services, and characterizing these as carried interests in order to pay capital gains tax rates. In particular, newspaper headlines concerning the initial public offering of the Blackstone Group have fueled fears among the Congressional tax-writing committees that large private equity and hedge funds were escaping paying an equitable share of their taxes by using carried interest instead of salary for services.

The House legislation could have an adverse impact on many real estate ventures, many of them smaller partnerships. Proposals to tax carried interest at ordinary income rates without regard to the nature of the underlying investment could unfavorably impact the flow of capital to real estate deals, and could disrupt many real estate partnerships. NAIOP opposes any wholesale changes to the current treatment of “carried interests,” and will work with the tax writing committees of Congress to ensure the interests of the commercial real estate industry are protected.

3/12/2007

GCREO Release: Engaging the City: Improving the Development Process by Jud Kline, AIA, GCREO Ex Officio [Click Here] to read the release.

GCREO Release: 2007 President's Letter by Christine Percival. [Click Here] to read the release.

3/12/2007

GCREO Release: Minutes from the 2007 Strategic Planning Meeting [Click Here]

3/01/2007

[Click Here] to read Mayor Frank G. Jackson's 2007 State of the City Address.

GCREO Release: Presidents Summary, 2006 Summary by Judson A. Kline, AIA.
[Click Here] to read the release.

Heritage Ohio Announces Main Street Communities. [Click Here] for the full article.

Initiative for Improving the Development Process in the City of Cleveland. [Click Here] for the full article.

The semi-annal GCREO Newsletter is now available. [Click Here] to view.

The semi-annual GCREO Newsletter is now available. [Click here] to view.

3/1/2005

Karin Schulz, RPA, CPM, Leed AP joined Meridian Realty Investments, Inc., the new owners of One Cleveland Center, as Vice President of Asset Management. Meridian was established in 1981 and focuses on placing corporate investors in tax advantaged investments such as affordable housing and renewable energy. Meridian has placed approximately $9 billion since inception and currently raises approximately $1 billion/year.

Meridian Realty Investments was founded in 1997 and focuses on debt and equity placement, mortgage portfolio disposition, advisory services and 1031 Tenant-In-Common sponsorship. As Vice President of Asset Management, Karin will focus on asset management and acquisitions for MRI’s Tenant-In-Common investment program.

Karin has over 20 years experience in property/asset management consisting of mixed-use suburban and urban office, retail centers, multi-family and mixed-use industrial/warehouse projects. Karin has been a member of CREW Cleveland since 1993, was president of CREW Cleveland in 1999, served as National Delegate in 2000 & 2001, National Director of CREW Network in 2002 & 2003 and is currently a Trustee of the CREW Foundation.

Other industry affiliations include Trustee of the Building Owner's and Managers Association of Greater Cleveland, Trustee of Greater Cleveland Real Estate Organization, member of the City of North Olmsted Architectural Review Board, member of the Institute of Real Estate Management and member of the Cleveland Green Building Coalition.

State of the State - Governor Taft's Five-Year Tax Reform Plan [Click here] to view in PDF format.

On November 17th, GCREO held its annual Town Hall Forum at the former Joseph & Beth book store space at Shaker Square. Peter Rubin, the President of The Coral Company, (the new owner of Shaker Square), moderated the panel discussion on "The Impact of Social Compact on Urban Retailing." Operating in an "Oprah" style of moderating, Mr. Rubin engaged the panel members and the audience in approximately 120 of a lively and informative conversation.

Mayor Jane Campbell kicked off the event with an overview of her 2004 trip to the ICSC convention is Las Vegas and how that trip highlighted the need to market Cleveland and its assets. The Mayor also provided a summary of the City's involvement with KeyBank and others in generating The Social Compact report on retailing in the City.

Panel members included Arne Goldman, Director of Business Development, Marous Brothers Construction; Gerald Buck, SVP and Commercial Real Estate Team Leader, Huntington National Bank; Robert Simons, Professor, Levin College of Urban Affairs at CSU; Russell Berusch, SVP of Real Estate Development, Neighborhood Progress Inc.; Daryl Rush, Director of Community Development, City of Cleveland; India Pierce Lee, VP of Programming, Neighborhood Progress Inc.; Stephanie Turner, VP of Community Development Banking, KeyBank National Association; Suzanne Hamilton, VP of Commercial Real Estate, Huntington National Bank; and David O'Neill, Partner, Colliers
International.

View pitcures from the Townhall Forum. [Click here]

GCREO Semiannual Newsletter is now available. Please [Click here] to download.

2/11/2004

Issue 31 - A Vote for a Greater Cleveland

Tuesday March 2nd is Election Day in Ohio and among other important issues of local impact is Issue 31, a proposed property tax levy that provides a specific plan to create some beneficial programs for overall Economic Development as well as Arts & Cultural activities. As a friend of Downtown Cleveland Partnership, we want you to be aware of the details of this critical issue that, if passed, would positively benefit not only downtown Cleveland, but communities ! throughout Cuyahoga County.

Issue 31 - A Vote for a Greater Cleveland
On Tuesday, March 2nd, Cuyahoga County voters will be asked to vote FOR ISSUE 31, a strong plan to strengthen our local economy by:
Creating an economic development plan to both create and protect local jobs;
Supporting Arts & Cultural activities that contribute to our economy and our neighborhoods, as well as enriching our quality of life.
A specific plan to accomplish these goals has already been developed in support of this issue
If passed, Issue 31 will raise ! $21 million annually to keep existing jobs here and to attract new, good-paying jobs.
All Issue 31 funds must be spent on creating jobs and economic development within Cuyahoga County, according to state law.
Issue 31 will cost the owner of a $100,000 home less than $2/month. It's a small investment in our future - guaranteed to produce real results.
For more information on Issue 31, visit www.SupportArtsandCulture.org or call 216-575-0331

January 12, 2004

GREATER CLEVELAND REAL ESTATE ORGANIZATION, INC. APPOINTS 2004 LEADERSHIP
–Greater Cleveland Real Estate Organization, Inc. (GCREO) has appointed their new leadership for 2004. GCREO is a forum for the exchange of ideas and information concerning legislative and public affairs matters affecting real estate organizations and their members in Northern Ohio. David P. O’Neill of Colliers International has been named President. Other officers include: Suzanne Hamilton of Huntington Bank as Vice President/President-Elect, Paul Goldberg of Flagship Properties as Treasurer, and Lee Chilcote, Esq. as Secretary.

January 16, 2004

Delinquent Property Tax Foreclosures
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
HB13 DELINQUENT PROPERTY TAX FORECLOSURE
Mary M. Cirelli (H52-D-Canton)
To authorize an expedited procedure for foreclosing liens for
long-delinquent property taxes.
02/05/2003 Referred to House Civil and Commercial Law

Unlicensed Service/Deceptive Trade Practices
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
HB38 UNLICENSED SERVICE - DECEPTIVE TRADE PRACTICE
John R. Willamowski (H04-R-Lima)
To make the performance of a service for compensation without a required license, certificate, permit or registration a deceptive trade practice and to create a civil cause of action for injunctive relief and damages under the deceptive Trade Practices Law against a person who performs a service without a required license, certificate, permit, or registration.
09/17/2003 House Civil & Commercial Law (Fifth)

BIENNIAL BUDGET
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
HB95 BIENNIAL BUDGET
Charles E. Calvert (H69-R- Medina)
Operating budget for the biennium.
EFFECTIVE 6/26/03; SOME SECTIONS DIFFERENT DATES.
06/26/2003 Signed by Governor; appropriations eff. 6/26/03 OMBA OPPOSED A PORTION OF THIS BILL. THIS BILL INCLUDES A PROVISION TO INCREASE ALL COUNTY RECORDING FEES BY 100% AND TO PERMANENTLY DEDICATE THE INCREASED FEES TO THE OHIO HOUSING TRUST FUND. THE INCREASE WILL BECOME EFFECTIVE AUGUST 1, 2003.

TAX DELINQUENT LAND
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
HB127 TAX DELINQUENT LAND
Gregory V. Jolivette (H54-R-Hamilton)
To permit municipal corporations to acquire tax delinquent land for redevelopment
free from liens for the unpaid taxes.
EFFECTIVE 3/11/04; SOME SECTIONS 12/11/03.
12/11/2003 Signed by Governor; eff. 3/11/04. Some sections 12/11/03

SOCIAL SECURITY NUMBERS
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
HB170 SOCIAL SECURITY NUMBERS
Jamie Callender (H62-R-Willowick)
To prohibit the inclusion of an individual's social security number on any document
that is prepared for recording in the office of the county recorder.
09/17/2003 Referred to Senate Judiciary--Civil Justice

Water Pollution Control Loan Fund
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Ohio EPA will hold a meeting on Monday, January 12, to discuss its
draft program management plan for the Water Pollution Control Loan Fund. The fund provides financial and technical assistance for a wide variety of actions to protect or improve the quality of Ohio's rivers, streams, lakes, and other water resources. It offers assistance opportunities for both public and private entities.

Home Sales Rose in 2003
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Sales of new and existing homes in the first 11 months of 2003 beat the previous record set just last year, according to the Ohio Association of Realtors.