House Committee Advances Terrorism Risk Insurance Bill

On Friday, June 20, the House Financial Services Committee, chaired by Jeb Hensarling (R-Texas), voted to approve a five-year reauthorization of the Terrorism Risk Insurance Act (TRIA) program due to expire at the end of this year.

Renewal of the TRIA program is a top priority for NAIOP and the commercial real estate industry.  The program, which creates a federal backstop against losses due to terrorist acts beyond a certain amount, enables private insurers to continue offering coverage for acts of terrorism. Without it, the availability of terrorism coverage for commercial projects would be greatly diminished as insurers refuse to cover acts of terrorism in new policies, and exclude losses from terrorist upon renewal of existing policies.

Sponsored by Rep. Randy Neugebauer (R-Texas), the House bill, the TRIA Reform Act of 2014 (H.R. 4871), was approved on a party-line vote of 32-27. The partisan vote in the House contrasts sharply with a vote earlier this month in the Senate Banking Committee on that body’s version of a TRIA extension bill, (S. 2244) which passed the committee by an overwhelming 22-0 bipartisan vote. The Senate version contains fewer changes to the underlying TRIA program while renewing it for s years. The full Senate is expected to vote on S. 2244 in July.

Both bills call for insurers to pay a larger proportion of losses from any future terrorist actions, among other things. The House bill, however, also adds a distinction between conventional terrorist attacks and nuclear or biological acts of terror, which raises concerns for industry as it creates future uncertainty as to coverage.

NAIOP is a member of the Coalition to Insure Against Terrorism (CIAT), which advocates for renewal of the program and issued a statement in support of the House committee’s action.  NAIOP’s government affairs staff continues to meet with House and Senate members and their staff to push for quick passage of TRIA renewal in each chamber.

Leadership Lunch Club

Join your peers at NAIOP Charlotte’s Leadership Lunch Club event on Thursday, June 26. Fred Klein, Senior Managing Partner at Childress Klein Properties will lead discussion at this exclusive Developing Leaders event. For Fred Klein’s biography, click here.

This is a Free event, available only for NAIOP Charlotte Developing Leaders; lunch will be served. Pre-registration is required due to limited space. The registration cut-off for this event is Tuesday, June 24, 2014. Members who register before the cut-off date but do not show up for the event will be invoiced for $10.

This event will be held at the Childress Klein Properties’ office: 301 S. College Street, Suite 2800, Charlotte, NC 28202 Directions and parking information for 301 S. College Street.

Call for Customer Feedback: Have You Had Difficulty Working With Us?

Code Enforcement Customers:

It’s common for agencies to ask for customer feedback — in fact, Mecklenburg County Code Enforcement has several permanent avenues for customer feedback already in place. Our latest customer survey, which launches today, is different. We take seriously the idea that some of our customers are struggling in their relationship with us. That’s why we’re asking for specific feedback on incidents where you may have found it difficult to work with the Code Enforcement system or our staff.

You’ll see in the survey that we ask for a lot of specifics. Every question on this survey is optional, and if you like, you can remain anonymous, but we strongly encourage you to provide as many specifics as you can. The reason for that is that we want to investigate your issue thoroughly and completely, identify areas where we can improve, and perhaps even provide you specifics on our findings.

We encourage you to be open and frank with your feedback. Mecklenburg County Code Enforcement has zero tolerance for any kind of “retribution” based on your feedback in this survey or anywhere else. We value your perspective and strive daily to serve you better while still fulfilling our mission to ensure the safety of citizens and visitors in Mecklenburg County.

This survey will be open through 11:59 p.m. Monday, June 16th.

To take the survey, click here or copy and paste this link into your browser: https://www.surveymonkey.com/s/BTNYQ8X

Thank you for taking the time to share your feedback.

Seeking Input on the PCCO Mitigation Fee Program

The City of Charlotte is looking for feedback on possible amendments to the Mitigation Fee program that gives developers an alternative approach to meeting the on-site stormwater requirements of the Post-Construction Controls Ordinance (PCCO).

City Council last month unanimously approved a six-month extension of the PCCO Mitigation Fee program, but asked stormwater staff to spend the summer evaluating the effectiveness of the program and determining whether a case-by-case review of each application would be more effective.

At a stakeholder meeting last week, staff outlined several options for amending the program, which currently allows developers of small commercial sites to contribute to the cost of public offsite improvements rather than installing onsite systems such as retention ponds, which often must be located underground because of site constraints.

The fees collected ($60,000 for the first acre, $90,000 for each additional acre) are used by the City to make system improvements within the same basin as the development, from stream bank restoration to the purchase of private property in floodplains.

Over the past 2 years, the City has collected $898,000 in mitigation fees from 10 redevelopment projects totaling $14 million in value that chose to pay the Mitigation Fee in lieu of constructing onsite controls. The revenue was used to fund 6 public stormwater projects that might otherwise not have been completed, including wetlands restoration near McAlpine Creek and 3 new ponds in north Charlotte.

PLEASE give your feedback on the PCCO Mitigation Fee program by completing the City’s survey.

CLICK HERE TO PARTICIPATEhttps://www.surveymonkey.com/s/Y999TR5

For questions about this survey or PCCO, please contact Joe Padilla, REBIC, 704-940-3174 or joe.padilla@rebic.com. An additional public meeting likely will be held later in June, with a vote by the Council’s Environment Committee scheduled for August. NAIOP supports extending the existing Mitigation Fee option for at least another 3 years. We believe the program helps encourage redevelopment of vacant sites while providing the revenue necessary mitigate the impact of a property’s urban runoff.

Thank you for your input – we will share your responses with the City of Charlotte as they continue to study these options.

Nominations Open for Developing Leaders Award

Nominate a commercial real estate professional under the age of 35 for his/her outstanding contributions.   To nominate a candidate, refer here.

Profiting from Joint Venture Partnerships

Cash in the form of joint venture partnerships may seem luring, but developers must pay close attention to the details of the deal to reap the rewards.   To read further, click here.

House Deals with Depreciation While Senate Struggles with Extenders

The House of Representatives has begun to move bills renewing individual tax extender provisions, but the Senate continues to struggle with a larger extender bill.   To read further, click here.