In 2011, with a slowly improving market and a very fragile economy, NAIOP Massachusetts, the Commercial Real Estate Development Association, advocated for policies and legislation that increased predictability and promoted economic development.
The year brought the start of a new legislative session on Beacon Hill and a second term for Gov. Deval Patrick. New cabinet secretaries and commissioners brought significant changes to the Administration.
In 2011, the implementation of the Economic Development Bill, which passed in 2010 (Chapter 240 of the Acts of 2010) was a key priority for NAIOP. The Permit Extension Act, included in that bill, extended permits in effect by two years. It kept alive countless economic development projects and allowed them to move forward, ultimately creating desperately needed jobs and tax revenue. Given the prolonged recession, an extension of this important law is now critical, benefiting housing, office and retail projects throughout the state. NAIOP is urging the Legislature to enact such an extension before the close of the legislative session on July 31, 2012.
Another NAIOP priority within Chapter 240 was the requirement that, prior to adopting new regulations, all agencies must file a statement detailing the impact of the proposed regulation on small businesses (those with under 500 employees). The Executive Office of Housing & Economic Development is overseeing the implementation of this requirement and has developed a comprehensive form for all agencies to use. NAIOP will continue to monitor implementation of this law during the coming year to ensure the cost impacts of new regulations on businesses are considered.
Turtle Talk
In light of significant budget cuts this past spring, the Mass Department of Environmental Protection launched a task force to review current regulations to determine how and where efficiencies could be achieved. A diverse task force was created to provide input on the creation of a regulatory reform plan. A draft plan was released in the fall, and implementation is expected in 2012. NAIOP applauded the Department for undertaking this initiative and looks forward to an opportunity to participate in the various stakeholder groups that will be created as a result of this process.
Other regulatory priorities for NAIOP in 2012 will include input on the draft Conservation Plan for the Eastern Box Turtle issued by the Natural Heritage and Endangered Species Program (NHESP). The Eastern Box Turtle has long been a source of frustration for developers who encounter the species in Massachusetts. The Conservation Plan sets benchmarks which would allow regions to effectively delist the species once certain habitat thresholds are achieved. NAIOP submitted extensive comments on the draft plan. In 2012, NAIOP will continue to advocate for a final plan that provides flexibility, proper notification, and offsite mitigation banking for all landowners.
NAIOP will also continue to provide input on multiple stormwater initiatives being proposed by the Environmental Protection Agency and advocate for a practical, cost-effective approach to this issue. With compliance costs expected to approach $150,000 per acre for the draft general permit for residually designated discharges, this issue will have a direct impact on existing properties and future economic development in Massachusetts.
In addition to its regulatory advocacy, NAIOP works to engage legislators on issues affecting the commercial real estate industry.
On The Waterfront
A top legislative priority for the organization is passage of Senate Bill 371, An Act to Revitalize the Commonwealth’s Waterfronts, filed by Sen. Anthony Petruccelli of East Boston. The bill would reform the facilities of public accommodation requirements under Chapter 91, the law governing waterfront development. As a result of the current uniform statewide standards, many of the ground floor areas within existing waterfront projects are vacant or under-utilized. The NAIOP legislation would allow for more flexibility for existing and proposed waterfront projects and could allow long-stagnant projects to move forward.
As the commercial real estate industry looks to 2012, NAIOP will continue to urge legislators and regulators alike to make Massachusetts a more competitive place to do business.
Tamara C. Small is director of governmental affairs, NAIOP Massachusetts.
