Colorado Real Estate Journal - November 19, 2014
Denver Metro BOMA’s 2014 slogan, “Leaders Building Value,” is not just a tag line. Rather, it has proven to be an affirmation of the association’s mission “to advance the commercial real estate industry through advocacy, knowledge exchange and professional development” – with a number of very exciting advancements being realized. Members advocate on behalf of their stakeholders on many issues. During the 2014 legislative session, BOMA strongly opposed and defeated House Bill 14-1165, entitled “Private Construction Contract Retainage and Payments,” which requires property owners who contract for improvements to pay 95 percent of the amount due, and to pay subcontractors immediately upon final acceptance or be subject to the payment of interest and penalties. As a result of BOMA’s efforts, this annual retainage bill was postponed indefinitely. BOMA also opposed HB14- 1375, the Urban Redevelopment Fairness Act, which if not vetoed by the governor in June would have made a number of modifications to the urban renewal law. However, the association did support Senate Bill 14-028, regarding expanding the list of individuals who are eligible for receiving monies from the Electric Vehicle Charging Station Grant Fund, and SB14-103, the Phase In High-Efficiency Water Fixture Options bill. BOMA has long been a proponent of benchmarking and voluntary actions to save energy and water. The association’s environmental sustainability initiatives were of great importance this year as demonstrated by BOMA’s partnership with Denver on the City Energy Project and its Watts to Water Program. Also in concert with sustainability, the BOMA International 360 Program continues to recognize buildings that encompass the highest standards of operational excellence and efficiencies. More than 500 buildings nationwide have achieved the BOMA 360 designation and in 2014 eight Denver buildings were added to this list. Another area of vital importance to building owners is perfecting and delivering leasehold improvements timely and within budget. Causing some delay in meeting this goal was the city’s strict adherence to Title III of the Americans with Disabilities Act. On March 28, 2014, the Department of Justice ruled that the maximum civil penalty for a first ADA violation is now $75,000, with a maximum penalty of $150,000 for a subsequent violation. This prompted local building officials to closely monitor Title III of the ADA, requiring newly constructed or altered places of public accommodation as well as commercial facilities (privately owned, nonresidential facilities such as factories, warehouses or office buildings) to comply with the ADA standards. Local owners/property managers/contractors were unquestionably surprised when building permits mandated that leasehold improvements address ADA compliance issues regarding seemingly new requirements for restrooms. These requirements have existed since Title III was signed into law Jan. 26, 1992. The early enforcement of Title III provisions was based on existing conditions, which often allowed the installation of handicapped facilities to be installed in a centralized public area location, usually within the main lobby area. In response to member inquiries, Denver Metro BOMA established a task force between members and Denver city officials establishing an ADA Work Group, which evolved into the current BOMA/Denver Development Services Workgroup that meets quarterly to discuss a variety of issues to building owners and managers in Denver. Currently, the group is working on the 2015 ICC code amendments with the city. Other advocacy and information exchange activities held during the year included contact meetings with legislative, building and other public officials. This was paramount to reinforcing commercial real estate’s influence and importance as a local and national economic driver. As such, local BOMA members advocated on behalf of building owners on an international level on issues such as leasehold depreciation, tax credits for energy efficiency retrofits and the renewal of the Terrorism Risk Insurance Act. Locally, through a well-organized intervention directed to the Public Utilities Commission in response to the Xcel Energy steam rate case, members were successful in curtailing a proposed significant multiyear increase. In addition, BOMA forged a highly collaborative working relationship with the Denver Building and Fire departments. Members were able to successfully assist with developing criteria for imposing elevator and boiler inspection fees under a new fee restructure proposed by the Denver Fire Department. A joint code compliance committee was established between BOMA and the Denver Building and Fire departments to review possible 2015 model International Code amendments and strategic working relationships with other local jurisdictions were formed. A medical office building compliance seminar was held in September to address the needs of commercial real estate professionals who specialize in all aspects of managing and leasing medical office buildings. Board of director’s member Courtney Hanfland with Catholic Health Initiatives has been vital to the success of this membership growth initiative and in developing an understanding within BOMA locally and internationally on what’s important to investors of health care real estate. Denver Metro BOMA places great value in developing emerging professionals. One specific educational highlight this year was in support of local sustainable initiatives. BOMA’s allied partners, Ampajen, McKinstry and YR&G, developed an innovative learning opportunity whereby participants engaged in a hands-on experiential training exercise to facilitate obtaining credit toward their LEEDEBOM certification. This course series, approved through BOMA and the U.S. Green Building Council, was conducted at the History Colorado Center and was noted as invaluable by program participants. Denver Metro BOMA continues to build its reputation by promoting a high level of social responsibility. The Community Affairs Committee is a leader in advocating on behalf of Colorado’s most vulnerable children and families. A longtime supporter of Denver Children’s Home and the Mount Saint Vincent Home, BOMA members have devoted hours of volunteer time assisting these agencies in the form of painting, cleaning, gardening and restoration work-day events, and continue to conduct one of the metropolitan area’s largest holiday gift and toy drive. This year, BOMA takes great pride in its successful delivery of activities that have proved instrumental in driving value to owners, protecting the environment through operating efficiencies, and promoting and preparing its members for exceptional professional development growth opportunities. We have achieved these goals through building a trusted relationship with key stakeholders and have improved the financial performance of the assets we manage. We will continue to be a comprehensive resource for the advancement of the commercial real estate industry through advocacy, knowledge exchange and professional development. We are “Leaders Building Value.”