050307

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President's Letter By Ray Kisor, MiCAR President Grubb & Ellis/Paramount Commerce, Grand Rapids, MI Dear Members, As a MiCAR member I trust you are aware of the REALTOR® Political Action Committee (RPAC), but do you know how viable it is and why you should be contributing to RPAC? The quick answer is to protect your livelihood and pocket book. If you need further explanation just look at the current issues Michigan’s legislators have been discussing. Don’t have time in your day-to-day business to keep up with the happenings in Lansing – just one more reason you need RPAC. We have a staff of professionals at MAR that works to monitor and promote legislation that will benefit the commercial practitioner, this is covered by your membership dues. Your RPAC donations, 100% are used to support REALTOR® friendly candidates. RPAC is the best, most effective way for REALTORS® to come together from across the state and become active as a powerful lobbying machine. There are several issues currently being debated in Lansing that could affect your bottom line. We have all heard about the Governor’s proposed 2% tax on services. MiCAR leadership is still alert on this issue as there are ongoing talks about increasing taxes in relationship to property and we are likely to see a proposed restructuring of Michigan’s current tax structure on the next ballot, or in legislative form. The Consumer Protection Act is another hot button with MiCAR members. As it stands, this act protects licensed businesses from excessive legal liability. Legislation has been introduced in the Legislation to take away this protection. Obviously, this would mean you might end up paying for not only your attorney fees, but the plaintiff’s fees as well. The staff at the MAR has testified against this bill in committee, and continues to work closely with the bill sponsor to have it removed from consideration. The MAR remains committed against the bill and has a strong presence at workgroups regarding on this issue. Other items the commercial practitioner should be concerned with include the replacement of the Single Business tax which expires at the end of this year and legislation dealing with how the state collects taxes from rental property owners, known as the WPW issue. Although these items seem to deal with a variety of issues, the main component in all of them is that they directly impact the commercial real estate industry. RPAC is our most effective tool in fighting against unfair business tax burdens, fee increases, and regulations. RPAC is our industry’s insurance policy, and by contributing, you are securing the real estate profession for all MAR members. If you’d like to donate, or learn more about RPAC, please visit www.mirealtors.com/advocacy/rpac.html. top Brownfield Redevelopment - Cash Cow or Money Pit? By Douglas Brown, ASTI Environmental Among the reasons ASTI Environmental’s 3,000 developer clients are taking a second look at Brownfield sites is that down towns have acquired a new cachet in recent years – 79 million baby boomers and empty nesters who grew up in the suburbs are having children later or not at all (source: Brookings Institute). Boomers are also choosing down towns because they prefer urban funk to suburban blandness, refuse to commit to hour-long commutes and want to be near restaurants, entertainment and cultural amenities. Locally, according to Kurt Metzger, Director of Research at the United Way of Southeast Michigan; Downtown Detroit has added over 33,000 new residents and with an additional 20,000 will reach critical mass. This data is meaningful because most industry began in down town's and first-ring cities and ultimately left Brownfields in their wake as they sprawled to the suburbs. Read entire article top MiCAR Public Policy Update WPW Issue Back in Spotlight Gov. Granholm is again eying commercial rental property taxation as a means for generating additional revenue for her budget proposal. Despite her 2005 veto of a MAR endorsed compromise on this issue that would have resulted in revenue to the state this year, new legislation is aimed to increase the taxable value of commercial rental properties to regain some of these perceived losses. Recall that this issue first came to light in 2002 with the Michigan Supreme Court decision in WPW Acquisition Co. v. City of Troy. Under the ruling the court held that increases in taxable value for commercial rental property, due to increases in occupancy, to be unconstitutional under Proposal A. As a result, commercial rental property owners can take a loss upon decreases in occupancy, lowering their taxable value, but cities cannot increase the assessment once the building is full again. House Bills 4375 and 4376, sponsored by Representative Paul Condino (D-Southfield), build upon the 2005 compromise legislation allowing taxation of commercial rental property to return to its pre-WPW state. The bills as written provide for adjustments due to both decreases and increases in occupancy. Unfortunately the current legislation seeks to retroactively tax additions going back to 2005. MAR testified in the House Tax Policy committee against these bills, strongly opposing the retroactive nature of the legislation. Despite best efforts, the bills garnered enough support from the House Democrats to pass out of committee and the House of Representatives in a matter of hours. MAR is meeting with members of the Senate Finance Committee and Senate leadership to express our opposition to the retroactivity of the current bills. Find out more about MAR advocacy issues top MiCAR Provides Educational Opportunity at Synergy MiCAR, the commercial division of MAR, continues to provide value to commercial practitioners by once again sponsoring Synergy The Michigan Commercial Real Estate Conference, which took place April 25th at the Breslin Center in East Lansing. In addition to sponsoring the event, MiCAR also provided two legal updates that were each approved for two hours of continuing education. Approximately 130 commercial practitioners received credit from these sessions. The event featured keynote speaker David E. Davis, editor and chief of Winding Road magazine and several sessions that were continuing education approved, as well as networking opportunities. To see a list of presenters and topics that were featured at Synergy’s 2007 event visit www.synergymichigan.com. top Wireless/Communications Q & A True mobility without wires and plugs may the dream of every fast-moving real estate professional. Step into the wireless age and imagine the possibilities for new productivity. Learn the the scoop on: The pros and cons of multifunction wireless devices How to improve cell phone reception in the field What software to buy for your PDA How and when you get wireless access to your MLS Plus, much, much more Learn more here. top West Michigan Hosts Commercial Event The Commercial Alliance of REALTORS® will be hosting the West Michigan Summit for commercial real estate practitioners on October 3rd at DeVos Place in Grand Rapids. The Summit will feature six hours of continuing education credits, networking opportunities as well as a trade show. Speakers of the event include MAR Legal Counsel, Greg McClelland, President of The Lipsey Company, Michael Lipsey and motivational speaker, Walter Bond. Visit www.carwm.com for more information. top	May 2007 • President's Letter • Brownfield Redevelopment - Cash Cow or Money Pit? • Public Policy Update • MiCAR Provides Educational Opportunity at Synergy • Wireless Communications Q&A • West Michigan Hosts Commercial Event
NAR - REALTORS® Commercial Alliance Resources • Hot Topics • Technology & Intelligence • Commercial Report • Real Estate Outlook • RCA Report • Commercial Power Tools

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President's Letter
By Ray Kisor, MiCAR President
Grubb & Ellis/Paramount Commerce, Grand Rapids, MI

Dear Members,

As a MiCAR member I trust you are aware of the REALTOR® Political Action Committee (RPAC), but do you know how viable it is and why you should be contributing to RPAC? The quick answer is to protect your livelihood and pocket book. If you need further explanation just look at the current issues Michigan’s legislators have been discussing. Don’t have time in your day-to-day business to keep up with the happenings in Lansing – just one more reason you need RPAC. We have a staff of professionals at MAR that works to monitor and promote legislation that will benefit the commercial practitioner, this is covered by your membership dues. Your RPAC donations, 100% are used to support REALTOR® friendly candidates. RPAC is the best, most effective way for REALTORS® to come together from across the state and become active as a powerful lobbying machine.

There are several issues currently being debated in Lansing that could affect your bottom line. We have all heard about the Governor’s proposed 2% tax on services. MiCAR leadership is still alert on this issue as there are ongoing talks about increasing taxes in relationship to property and we are likely to see a proposed restructuring of Michigan’s current tax structure on the next ballot, or in legislative form. The Consumer Protection Act is another hot button with MiCAR members. As it stands, this act protects licensed businesses from excessive legal liability. Legislation has been introduced in the Legislation to take away this protection. Obviously, this would mean you might end up paying for not only your attorney fees, but the plaintiff’s fees as well. The staff at the MAR has testified against this bill in committee, and continues to work closely with the bill sponsor to have it removed from consideration. The MAR remains committed against the bill and has a strong presence at workgroups regarding on this issue. Other items the commercial practitioner should be concerned with include the replacement of the Single Business tax which expires at the end of this year and legislation dealing with how the state collects taxes from rental property owners, known as the WPW issue.

Although these items seem to deal with a variety of issues, the main component in all of them is that they directly impact the commercial real estate industry. RPAC is our most effective tool in fighting against unfair business tax burdens, fee increases, and regulations. RPAC is our industry’s insurance policy, and by contributing, you are securing the real estate profession for all MAR members. If you’d like to donate, or learn more about RPAC, please visit www.mirealtors.com/advocacy/rpac.html.

top

Brownfield Redevelopment - Cash Cow or Money Pit?

By Douglas Brown, ASTI Environmental

Among the reasons ASTI Environmental’s 3,000 developer clients are taking a second look at Brownfield sites is that down towns have acquired a new cachet in recent years – 79 million baby boomers and empty nesters who grew up in the suburbs are having children later or not at all (source: Brookings Institute). Boomers are also choosing down towns because they prefer urban funk to suburban blandness, refuse to commit to hour-long commutes and want to be near restaurants, entertainment and cultural amenities. Locally, according to Kurt Metzger, Director of Research at the United Way of Southeast Michigan; Downtown Detroit has added over 33,000 new residents and with an additional 20,000 will reach critical mass. This data is meaningful because most industry began in down town's and first-ring cities and ultimately left Brownfields in their wake as they sprawled to the suburbs.

Read entire article

top

MiCAR Public Policy Update

WPW Issue Back in Spotlight

Gov. Granholm is again eying commercial rental property taxation as a means for generating additional revenue for her budget proposal. Despite her 2005 veto of a MAR endorsed compromise on this issue that would have resulted in revenue to the state this year, new legislation is aimed to increase the taxable value of commercial rental properties to regain some of these perceived losses.

Recall that this issue first came to light in 2002 with the Michigan Supreme Court decision in WPW Acquisition Co. v. City of Troy. Under the ruling the court held that increases in taxable value for commercial rental property, due to increases in occupancy, to be unconstitutional under Proposal A. As a result, commercial rental property owners can take a loss upon decreases in occupancy, lowering their taxable value, but cities cannot increase the assessment once the building is full again. House Bills 4375 and 4376, sponsored by Representative Paul Condino (D-Southfield), build upon the 2005 compromise legislation allowing taxation of commercial rental property to return to its pre-WPW state. The bills as written provide for adjustments due to both decreases and increases in occupancy. Unfortunately the current legislation seeks to retroactively tax additions going back to 2005.

MAR testified in the House Tax Policy committee against these bills, strongly opposing the retroactive nature of the legislation. Despite best efforts, the bills garnered enough support from the House Democrats to pass out of committee and the House of Representatives in a matter of hours. MAR is meeting with members of the Senate Finance Committee and Senate leadership to express our opposition to the retroactivity of the current bills.

Find out more about MAR advocacy issues

top

MiCAR Provides Educational Opportunity at Synergy

MiCAR, the commercial division of MAR, continues to provide value to commercial practitioners by once again sponsoring Synergy The Michigan Commercial Real Estate Conference, which took place April 25th at the Breslin Center in East Lansing. In addition to sponsoring the event, MiCAR also provided two legal updates that were each approved for two hours of continuing education. Approximately 130 commercial practitioners received credit from these sessions.

The event featured keynote speaker David E. Davis, editor and chief of Winding Road magazine and several sessions that were continuing education approved, as well as networking opportunities.

To see a list of presenters and topics that were featured at Synergy’s 2007 event visit www.synergymichigan.com.

top

Wireless/Communications Q & A

True mobility without wires and plugs may the dream of every fast-moving real estate professional. Step into the wireless age and imagine the possibilities for new productivity.

Learn the the scoop on:

The pros and cons of multifunction wireless devices
How to improve cell phone reception in the field
What software to buy for your PDA
How and when you get wireless access to your MLS
Plus, much, much more

Learn more here.

top

West Michigan Hosts Commercial Event

The Commercial Alliance of REALTORS® will be hosting the West Michigan Summit for commercial real estate practitioners on October 3rd at DeVos Place in Grand Rapids. The Summit will feature six hours of continuing education credits, networking opportunities as well as a trade show.

Speakers of the event include MAR Legal Counsel, Greg McClelland, President of The Lipsey Company, Michael Lipsey and motivational speaker, Walter Bond.

Visit www.carwm.com for more information.

top

May 2007

• President's Letter

• Brownfield Redevelopment - Cash Cow or Money Pit?

• Public Policy Update

• MiCAR Provides Educational Opportunity at Synergy

• Wireless Communications Q&A

• West Michigan Hosts Commercial Event

NAR - REALTORS® Commercial Alliance Resources

• Hot Topics

• Technology & Intelligence

• Commercial Report

• Real Estate Outlook

• RCA Report

• Commercial Power Tools

720 North Washington Avenue • P.O. Box 40725 • Lansing, Michigan 48901-7925
800.454.7842 • Fax: 517.334.5568 • Contact us • www.mirealtors.com
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