NAIOP - Colorado Chapter

What is the National Association of Industrial and Office Properties?
What is the Common Cents Fund?
Why did NAIOP Colorado create the Common Cents Fund?
Where did the idea for the Common Cents Fund come from?
How will the program be funded?
What issues will the Common Cents Fund address?
How do I get more information on the Common Cents Fund or participate in the program?

What is the National Association of Industrial and Office Properties?

The National Association of Industrial and Office Properties (NAIOP) is a national association with over 10,000 members and an extensive network of 49 chapters that represent the interests of owners and developers of industrial, office and related commercial real estate throughout North America. The Colorado chapter is one of NAIOP's most successful chapters. It currently ranks fourth in the country in terms of membership, with more than 600 members.

What is the Common Cents Fund?

The Common Cents Fund is the funding vehicle that allows the Chapter to participate in public policy issues as established by the board of directors of the Colorado Chapter of NAIOP. The program seeks to encourage dialogue on issues that affect the organization's members and customers.

Why did NAIOP Colorado create the Common Cents Fund?

NAIOP has long been the voice of commercial real estate, and the Colorado chapter has had an active legislative agenda for some time. Over the years, however, the number of issues facing the commercial real estate industry, and the impact of these issues, has escalated. The Common Cents Fund was created to ensure that NAIOP Colorado and its members are properly positioned to affect local, regional, and state issues in a meaningful, proactive manner.

Where did the idea for the Common Cents Fund come from?

The program is based on the highly successful "Penny Per Square Foot" program created by the Minnesota chapter of NAIOP ten years ago. Since its inception, the "Penny Per Square Foot" Fund has grown steadily and is a critically important element in NAIOP Minnesota's legislative effectiveness. In fact, the Fund's diligent effort on property taxes led to a near 22 percent reduction in the class rate on commercial-industrial property in just two years.

How will the program be funded?

The Common Cents Fund will be funded by voluntary contributions from NAIOP members based primarily on one cent per square foot of property owned and/or managed. Additional funding mechanisms are available for landowners and other interested members.

What issues will the Common Cents Fund address?

The Common Cents Fund has identified the following priority issues that affect the organization's members and customers:

Economic Development: The Chapter's Board has identified economic development as a priority issue and has made a major commitment to the Metro Denver Economic Development Corporation. We also believe that the foundation of economic development is sound public policy designed to retain and attract business to Colorado.
Tax Policy: The commercial real estate industry is a major contributor to the state tax base, and it is important that the voice of commercial real estate be heard on issues related to tax policy. This is particularly important as the Gallagher Amendment imposes an ever-increasing share of the tax burden on commercial property.
Growth and Land Use: NAIOP believes that this is one of the most important and encompassing issues facing our region, and one that needs to be addressed by the legislature, not by a ballot initiative. NAIOP will continue to support reasonable growth management legislation that addresses this very complex issue while continuing our efforts to protect private property rights.
Transportation: Colorado's population has grown by 48% since 1980 and vehicle miles traveled have increased 89%; in the same time frame, the percentage of the State budget for transportation funding has decreased by 40%. Hence, the traffic congestion problems we have today. This is a major issue in Colorado especially in this time of declining State revenues.
Affordable Housing: The high price of housing is one of the most vexing problems facing Colorado today. NAIOP members, their customers, and their employees are having an increasingly difficult time finding a home they can afford, and companies looking to establish operations in the state are beginning to be turned away by our high housing costs. If the stock of affordable housing does not increase, the long-term impacts on Colorado's economy could be damaging.
Water & Power: Water supply has become a front-burner issue in the region and without vigilant attention to management, conservation and primarily new storage, Colorado could easily find itself in a situation that would have a devastating effect on the region's economy and quality of life. NAIOP Colorado will be working with other groups to raise the visibility and profile of this critically important issue.
Construction & Building Operations: Issues affecting the day-to-day operations of our members' properties such as constructions contracts (retainage/prompt pay legislation), sub-contractor indemnification, insurance, and construction defects, all affect our members and their tenants.

The Legislative Affairs Committee (LAC) will be reviewing these issues on an ongoing basis, establishing priorities and developing policy statements.

How do I get more information on the Common Cents Fund or participate in the program?

Contact Bob Moody, Executive Director Legislative Affairs, at the NAIOP Office (303) 782-0155, or by e-mail at rmoody@naiop-colorado.org. You may also print out the Common Cents Fund Pledge Form (pdf). This document requires the free Adobe Acrobat© Reader. To download this reader, go to the Adobe web site.