Future of 4th Street

Chair’s Report

Superintendents Group

Jackson Street Update

Grassroots Program

For Your Information

SMT/SMA Classes

Get your Company Noticed - Sponsor a meeting or

Advertise in 2016

In This Issue: The Future of 4th Street 4th Street has received a lot of attention since the opening of the Green Line in downtown St. Paul. But is that where the attention will end? Let’s think bigger. What might the future of 4th Street hold? What if 4th Street could come alive with incredible expanded retail, mixed and commercial use and a vibrant connection between the Farmer’s Market, Union Depot and Rice Park?

Join us on Monday, March 14th as BOMA President, Joe Spartz hosts a panel discussion and interactive Q & A with 4th Street Market District Stakeholders, Julie Bauch, Bauch Enterprises (180 E. 5th Street), Bill Bisanz, Lowertown Commons, Clint Blaiser, Halverson Blaiser Group, Tom Whaley, Executive Vice President, CHS Field, and St. Paul City Council Ward 2 Councilmember, Rebecca Noecker. This meeting will be held at the Doubletree Hotel in downtown St. Paul. Networking will begin at 11:40 am, lunch at noon and the program will start at 12:30. One hour of Continuing Education has been applied for!

Date: March 14th, 2016 Time: 11:40 am – 12:00 pm – Networking, 12:00 - 1:30pm – Lunch, Program Location: Doubletree Hotel, 411 Minnesota Street

Cost is $40.00 for members and $48.00 for non-members.

Register now!

Saint Paul BOMA News BOMA’s mission is to provide leadership to the commercial real estate industry through legislative

and regulatory advocacy, education, research, and professional networking

Vol. 2, No. 3 March 2016

332 Minnesota Street, Suite W2950 Saint

Paul, MN 55101

Phone: 651-291-8888

Fax: 651-291-1031

office@bomasaintpaul.org

www.bomastpaul.org

March Brokers Group March 9th Membership Meeting March 14th Superintendents Group March 16th FMA/RPA Class Starts March 21st SMT Class Starts March 23rd FMA Class Starts March 29th

April Brokers Group April 6th Education Committee April 7th Membership Meeting April 11th Superintendents Group April 20th Gala Committee April 21st Government Affairs April 26th

Chair’s Report Bill Thurmes, Chair Greater Saint Paul BOMA Board of Directors

Vol. 2, No. 3 March 2016

Have I ever mentioned how fun it is to hang out

with politicians? Probably not. However, each

year the Greater Saint Paul BOMA Board of

Directors and a few members of the Government

Affairs Committee do just that and we enjoy it a

great deal.

Recently we met with the Saint Paul City Council

and the Ramsey County Commissioners. It is a

great opportunity to get to know these high

profile members of the city and county

administration and tell them about our concerns

or thoughts on Saint Paul, especially as it relates

to commercial real estate. It also affords them the

opportunity to give us inside information

regarding various project and initiatives currently

taking place.

The City Council meeting included discussions on

the Jackson Street project and subsequent

assessments, the parking fee proposal that is

working its way through the state legislature, the

possibility of the 4th Street transformation to a

pedestrian/bike path, and an update of the Ford

plant site.

The Ramsey County Commissioners provided an

update on the deconstruction of the riverfront

properties that housed the county jail and county

offices and subsequent marketing efforts to sell

the site, as well as the development of the former

Army Ammunition Plant in Arden Hills. We also

heard an update on transit and its impact on the

East Metro region.

The Council Members and Commissioners are

always very complimentary of Greater Saint Paul

BOMA and consider the meetings a great way to

hear from us about what we would like to see

happen in Saint Paul and Ramsey County. And

BOMA is appreciative of their willingness to listen

to our concerns.

Help BOMA Stop the Adoption of the UPC

As BOMA has discussed with members in previous communications, the Association has worked diligently to oppose the adoption of the Uniform Plumbing Code (UPC). Under the prior Minnesota Plumbing Code, only “reduced pressure” or “RPZ” backflow preventers had to be tested on an annual basis while other kinds of backflow preventers did not. The UPC will require all backflow preventers to be inspected annually, not just the RPZ-type. We are trying to determine how this change will impact properties. To help us with this endeavor, we are seeking members to share with us examples of non-RPZ-type backflow prevention devices and assemblies that are in use at their buildings. How do you tell? RPZ-type backflow preventers discharge water out of the assembly when the water pressure changes, while other backflow preventers usually do not have this feature. If your property has one or more backflow preventers that are not of the RPZ-type, please contact, Joe Spartz at joe.spartz@bomastpaul.org

As of February 22nd the intersection of

Jackson and Kellogg will initially be closed

as part of the street reconstruction. The

closure is expect to run to the end of the

summer.

Click here to learn more about the Jackson

Street project and to see a detour map.

Jackson Street Update

Vol. 2, No. 3 March 2016

What is LED lighting and what are the benefits of switching to it? What should I buy-replacement fixtures, retrofit kits or replacement lamps? Kathy Foldesi with Viking Electric will be talking about this exciting new technology that many companies are switching to.

Kathy has been with Viking Electric for 26 years. She has worked in different capacities such as inside sales, telemarketing and account manager in the electrical field.

Barb Jerhoff with Xcel Energy will also be here to talk about LED lighting technology, retrofit options and available conservation rebates.

Barb has been with Xcel Energy and its predecessor NSP for 30 years with over 20 years partnering with customers on energy efficiency.

DATE: Wednesday, March 16th TIME: 11:30am – 12:45pm LOCATION: 180 East 5th Street, 2nd Floor Conference Room B* COST: $18.00 pre-registered, $20.00 walk-in EDUCATION: SMA/SMT/RPA/FMA CPD’s Available Register at www.bomastpaul.org or call 651.291.8888.

*Note: Locations change*

GSP BOMA Members "Buy BOMA". Advertising with us is a great way to gain visibility for your company in the Commercial Real Estate Industry. As a valued BOMA Member, we would like to give you this great opportunity to participate in Greater Saint Paul BOMA’s 2016 Sponsorship and Advertising programs. We encourage you to review our programs as this is an opportunity to invest in your immediate and long term business development plans. By advertising and/or sponsoring BOMA programs, you will immediately raise your profile and assure that you will be an essential part of the advancement of the commercial real estate industry in Saint Paul. The exposure, connections, and reputation gained will be extremely beneficial. Meeting Sponsorships (click to download) Sponsoring a meeting is a fantastic way to showcase the services your company provides! By sponsoring membership meetings you will be given the amazing opportunity to position your company in front of key decision makers while saving time and money! Act now to take advantage of this incredible offer! Newsletter Advertising (click to download) The Greater Saint Paul BOMA Newsletter is a monthly editorial that gets sent to over 400 Real Estate Professionals in the Twin Cities and Metro Area.

BOMA Bits Superintendents Group

Vol. 2, No. 3 March 2016

Issue advocacy is an essential function of BOMA. At both the national and local levels, BOMA represents member commercial real estate interests on proposed laws, regulations and codes that will impact building operations and the industry as a whole. Each year BOMA is able to influence legislation and code changes that provide substantial savings to buildings. No other association in the commercial real estate industry is as active and effective as BOMA in so many areas concerning legislation and codes. While BOMA is proud of the advocacy work we do each year, we can always improve. For BOMA to increase its voice and impact, especially at the local level, we need to do a better job of fully leveraging the Association’s membership. To this end, the Government Affairs Committee is asking you to join BOMA’s Grassroots Advocacy Network. This network is comprised of BOMA members, who reach out to their elected representatives at key times to help influence legislation. The time required to participate is minimal, but the impact may be significant. If you would like to participate in the network, BOMA would contact you if your representative will be involved in a critical vote that impacts legislation of interest to our members. We will ask you to call or email your representative. We’ll even let you know who this is, his or her contact information, and key talking points you can use in your message. It’s quick and easy for you, but powerful if most of our members participate. Please consider joining the Grassroots Advocacy Network. If you have questions or want to sign up, please contact Sadie at sadie.elwood@bomastpaul.org or call at 651-842-4023. Thank you for your consideration.

Vol. 2, No. 3 March 2016

The BOMA International National Issues Conference held during February 1-3 in Washington D.C. was a great success. A delegation of Minnesota BOMA representatives met with the state’s Members of Congress and their staff to discuss issues important to the commercial real estate industry.

Fire Sprinkler Depreciation Building owners are currently allowed to depreciate fire sprinkler systems in existing buildings over a 39-year period. BOMA is advocating for reducing this to a 15-year period to be consistent with other leasehold improvements.

ADA “Drive By” Lawsuits Under current ADA law, a potential plaintiff can take action against a building for perceived violations without any forewarning to the property. With increased frequency, disreputable lawyers are threatening legal action on buildings for alleged offenses to ADA and seeking settlement prior to commencing litigation. Frequently, the property owners will comply rather than take on the legal expenses required to defend themselves. BOMA is working to amend the current ADA law to require a notification and cure period in order to give a building adequate time to respond to any legitimate concerns. Adoption of this legislation will greatly reduce the frequency of these “drive by” lawsuits.

Energy Efficiency Tax Incentives The energy efficient commercial buildings deduction (179D) was extended through 2016. This provision provides for an accelerated deduction of up to $1.80/sf for energy efficient upgrades that achieve a 50% reduction in annual energy cost. BOMA is advocating for an additional extension with the deduction to be increased, and the threshold to qualify to be reduced so more buildings can take advantage of this legislation and are incented to improve energy efficiency.

President Joe Spartz and the BOMA Delegation meeting with Congressman Eric

Paulson

President Spartz at the Board of Governors Meeting

NIC A Success Washington D.C. February 1st-3rd

Vol. 2, No. 3 March 2016

Experience Exchange Report (EER) Surveys Open!

Share a Little. Gain a Lot. The 2016 surveys for both the Office Experience Exchange Report (Office EER) and the Industrial Experience Exchange Report (Industrial EER) are now open!

In order for BOMA International to create the best possible resources for the office and industrial sectors this year, we need your help—share your data with the 2016 Office EER survey and/or the 2016 Industrial EER survey, depending on the property type(s) you own or manage. Not only will your contribution make the best benchmarking resources in the industry even better, but you also will gain access to valuable information that will help you position your property or portfolio for success in 2016 and beyond.

Sharing your data is easy: Any office or industrial building can submit 2015 year-end income and expense data, regardless of whether or not the building is owned or managed by a BOMA member. The online submission form allows most respondents to complete each survey in about 30 minutes. No need to complete an entire survey at once. Save your answers as you go and return to the form as many times as needed before the March 31 deadline. Remember: All data submitted is kept in strictest confidence, and only market-level information is published.

Once you complete a survey, as our thanks to you, you will: Receive a free Expense Performance Comparison (EPC) report, which assesses how your building compares to its market peers; Gain priority access to the 2016 Office EER and/or 2016 Industrial EER—and receive deep discounts on your subscription(s); and Fulfill a prerequisite for applying for, maintaining or renewing your building's BOMA 360 designation. Your data matters! Complete the survey(s) today at eer.boma.org.

Property Tax Update St. Paul BOMA is actively involved in working to reform the statewide commercial property tax. It is partnering with other commercial real estate groups and the Minnesota State Chamber to help lead this initiative. Recently, BOMA became aware of a proposal that would reduce the overall tax on all commercial properties and include a provision to exempt the first $500,000 in property value. On the surface, this proposal may seem supportive of our goals since any reduction is good. However, BOMA is conducting research to ensure the exemption doesn’t create any unintended consequences. BOMA will support tax reform legislation that is fair and helps to reduce the tax burden on commercial real estate. We are hopeful that our efforts during the current session will result in some meaningful progress toward this legislative goal.

Click here to find more information about the Property Tax

At the BOMA membership meeting in February, Mayor Chris Coleman, PED Director Jonathan Sage Martinson and United soccer team owner, Bill McGuire, presented information on the proposed Midway stadium. There was interest in this location going back to 2012 when McGuire first purchased the team. The proposed site is uniquely situated given its proximity to I94, the Green Line and soon to be opened, BRT A Line. It wasn’t until 2015 when the Met Council indicated interest in looking at the soccer stadium on the portion of the 34.5 acre site they owned that the development became a possibility. When completed in 2018, this 20,000 seat stadium will have a major economic development impact on the entire Midway area.

Vol. 2, No. 3 March 2016

United Soccer Stadium

February Membership Overview

Vol. 2, No. 3 March 2016

SPRING SMT/FMA/RPA COURSES Courses Available through Saint Paul BOMA Fundamentals of Facilities Management – FMA Start Date: Mon., March 21st, Seven weeks total Test Date: Schedule through off site testing facility. Class Time: Mondays - 6:00–9:00 PM Location: Ecolab, 370 Wabasha Street, St. Paul Successful facilities managers must have business savvy supported by a broad scope of technical knowledge. This course provides the base from which to build a career in facilities management. You will learn how to structure and manage operations and maintenance programs, and how to manage personnel effectively to control workload. You will gain an understanding of the importance of facilities management to business organizations and operations, while also learning strategies for internal marketing. Key topic areas: principles of information management • investment, cost controls, and budgeting strategies • operating levels of facilities activities • outsourcing principles • benefits of leasing vs. ownership Air Handling, Water Treatment & Plumbing Systems – SMT Start Date: Wed., March 23rd, Seven weeks total. Test Date: Schedule through off site testing facility. Class Time: Wednesdays - 6:00–9:00 PM Location: Ecolab, 370 Wabasha Street, St. Paul Through this course, you will learn about climate control for human comfort, the components of HVAC systems, and the basics of water treatment and plumbing systems. You will gain the skills and knowledge to perform common water tests, maintain air-conditioning systems, maintain water services, and inspect portable fire extinguishers. Key topic areas: HVAC systems • air cleaning devices • indoor air quality • fire protection • systems • fire alarm systems Ethics is Good Business Short Course – FMA, RPA Start Date: Tues. March 29th three nights only Test Date: Take on your own computer Class Time: Tuesdays – 6:00–8:30 PM Location: Ecolab, 370 Wabasha Street, St. Paul This course helps you understand the impact that ethical behavior can have on your professional performance and your property’s bottom line. By working through difficult ethical dilemmas, you’ll develop the confidence to follow through, even when facing adversity.

Key topic areas: tenant relations • triple bottom line • confidential recordkeeping and SOX • trade secrets • proper use of funds • conflicts of interest • corporate social responsibility • environmental stewardship Please contact Denise Jenkins at denise.jenkins@bomastpaul.org or 651-291-8888 if you have questions. *************************************** Courses Available through Minneapolis BOMA Real Estate Investment and Finance Learn to take charge of real estate investments to maximize the value of a property. Develop knowledge about basic financial concepts as they relate to real estate, including valuation, analysis, taxation, depreciation, and life-cycle costing. Evaluate real estate investments and develop budgets that estimate net operating income. Study the income capitalization approach and cover property taxation costs and strategies to offset these costs. Gain the skills to conduct discounted cash flow analyses and calculate net present value and internal rate of return. This course features exercises that require the basic use of the HP 10bII* financial calculator. Key topic areas include asset valuation and enhancement, costs and taxes, capitalization and the appraisal process. Instructor: David Wright, FMA, RPA; U.S. Bank Corporate Real Estate When: Tuesday Sessions, February 16 - April 5 (no class March 15); 2:00 - 6:00 PM Where: Metro point 600; 600 Highway 169 S in St. Louis Park The Design, Operation, and Maintenance of Building Systems - Part 1 This course provides information property and facility managers need to manage the ongoing operation and maintenance of building systems and to maximize building efficiency and cost-effectiveness. Key topic areas: building design and construction • life-cycle costing • construction materials • structural systems • building envelopes • roofing • interior walls, ceilings, and flooring • HVAC and plumbing systems • building system controls and automation Instructor: Anthony Sparrow, RPA, FMA, SMA, CFM; Chief Engineer, CBRE Technical Services When: Tuesday Sessions, April 12 - May 24; 5:00 - 9:00 PM Where: Carlson Center - 601 Carlson Parkway, Minnetonka Please contact Kristine at (612) 338-8627 or by email.

Vol. 2, No. 3 March 2016

OFFICERS:

William Thurmes, Chair

Julie Bauch, Vice Chair

Shawn Wiski, Treasurer

DIRECTORS:

David Ketcham

Rick Hanson

Jerry Hersman

Pat Skinner

Bruce Thompson

Tim Yohnk

STAFF:

Joe Spartz, President

Rhonda Pape, Editor

Sadie Elwood, Editor

Greater Saint Paul BOMA First National Bank Building 332 Minnesota Street, W2950 St. Paul, MN 55101 Phone: 651-291-8888 Fax: 651-291-1031 www.bomastpaul.org Click here to follow us on twitter - @StPaulBOMA Click here to follow us on Facebook

Greater Saint Paul BOMA Newsletter published monthly by Greater Saint Paul BOMA

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The 29th Annual BOMA Golf

Tournament is on July 18th.

A Look Ahead