The Arizona Chapter of NAIOP, otherwise known as the Commercial Real Estate Development Association, has released its 2022 legislative public policy agenda which seeks to continue the momentum of recent sessions, NAIOP Arizona’s CEO Suzanne Kinney announced this week.
“With the monumental changes of the past two years, 2022 presents a unique opportunity for our market to break away from the pack,” Kinney said. “We will aggressively pursue legislation that will help accelerate our movement towards Tier 1 status for business attraction and job creation.”
Leading NAIOP Arizona’s legislative efforts will be its 2022 Executive Committee comprised of Kinney; Board Chair Rusty Kennedy of CBRE; Board Vice Chair Cathy Thuringer of Trammell Crow Company; Treasurer John Orsak of Lincoln Property Company; Programs Chair Phil Breidenbach of Colliers International; and Secretary Derek Flottum of Irgens. The group’s immediate Past Chair is Danny Swancey of ViaWest Group, who was preceded by Jim Wentworth of Wentworth Property Company.
NAIOP Arizona’s guiding principles involve supporting policies that drive demand for commercial real estate in Greater Phoenix and throughout Arizona, promote legislation that positions Arizona to be the preferred choice for corporate locations and expansions, and encourage “organic business growth through public policies that encourage entrepreneurship and new business formation.”
According to Kinney, the Arizona Legislature made significant progress this past year to blunt the impact of income tax increases imposed on small businesses and other taxpayers through Proposition 208. Another achievement was a two percent reduction of the commercial property tax assessment ratio, which remains a top policy priority in an effort to achieve parity with other types of property owners.
Kinney also said NAIOP Arizona will continue to oppose legal efforts and new ballot initiatives that would reduce Arizona’s economic competitiveness. And in response to recent lawsuits about economic development incentives, NAIOP will work to refine the system so that complicated development projects which bring value to the community can avoid time-consuming and costly litigation.
On the federal front, NAIOP will work with Arizona’s Congressional delegation to prevent damaging tax policy proposals from going into effect. Of particular concern are restrictions on 1031 like-kind exchanges, the taxation of carried interest as ordinary income rather than capital gains, elimination of the stepped-up basis for inherited assets, and removal of tax deductions for qualified pass-through entities.
The 900-member NAIOP Arizona is part of the main 19,000-member NAIOP, considered the leading association for developers, owners, and related professionals in office, industrial, retail and mixed-use real estate. The state chapter is the fifth largest out of 53 chapters across the United States and Canada.
“The growth of our chapter underscores its importance and relevance in Arizona’s commercial real estate industry,” said Kinney. “We’re extremely proud of what the chapter has accomplished considering the economic challenges of the past year and a half. We are a resilient industry.”
In 2021, NAIOP supported the development of CRE leaders through Diversity Student Scholarships for those pursuing a graduate degree in commercial real estate. One of the four scholarships was awarded to NAIOP Arizona member Margarita Effron, a graduate student in Arizona State University’s Master of Real Estate Development program.
Other members of the NAIOP Arizona board include Jenna Borcherding of VanTrust Real Estate, LLC; Matthew Krause of Krause Architectural & Interiors; Chris Anderson of Hines; Chris Burson of Alliance Bank of Arizona; Danielle Feroleto of Small Giants; Jeff Foster of Prologis; Tom Jarvis of Willmeng; Jeff Moloznik of RED Development, LLC; Kate Morris of Transwestern; Michael Olsen, of Globe Corporation; CJ Osbrink of Newmark Knight Frank; Darren Pitts and Velocity Retail Group; and Candace Rosauro of Layton Construction.
Phoenix-based Freeport-McMoRan Inc. (FCX) has announced the addition of former Monsanto Company CEO Hugh Grant to its 11-member Board of Directors. Grant, who was named CEO of the Year in 2010 by Chief Executive magazine, served as Monsanto’s CEO and Chairman of the Board from 2003 to 2018 when the company merged with Bayer AG.
Grant’s appointment was made shortly after Ryan M. Lance, the Board Chairman and CEO of ConocoPhillips, was named a director on Freeport-McMoRan’s board.
It was also recently announced that Freeport-McMoRan will have a new Chief Financial Officer as of March, when Maree E Robertson assume responsibility for the company’s accounting, finance, and tax functions. Robertson, who will also hold the title of senior vice president, will report to Kathleen L. Quirk, who was named President of Freeport-McMoRan earlier this year.
Freeport-McMoRan operates large, long-lived, geographically diverse assets with significant proven and probable reserves of copper, gold, and molybdenum. The company is one of the world’s largest publicly traded copper producers, with assets and mining operation across the globe, including Indonesia, South America, and multiple locations in the United States, many of which are in Arizona.
A Prescott couple is suing the state of Louisiana for its sales tax overreach into their small business, Halstead Bead. The National Taxpayers Union Foundation (NTUF), the Pelican Institute, and the Goldwater Institute will represent Brad and Hilary Scott in the case Halstead Bead v. Lewis, et al. The Scotts’ lawsuit asks that Louisiana provide a single point of contact for their tax collections, rather than requiring businesses to collect taxes for every one of Louisiana’s parishes.
The law permits states to enforce their tax laws and regulations on Arizona businesses — but it wasn’t always that way in the recent past. The national burden on small businesses came over three years ago with the Supreme Court (SCOTUS) ruling in South Dakota v. Wayfair. SCOTUS ruled that states could charge sales tax to out-of-state sellers, with or without a physical presence in their state. The ruling empowered over 11,000 jurisdictions nationwide at the cost of an additional burden to small businesses like Halstead Bead, a small crafts and jewelry supplier based in Prescott.
Halstead Bead owners, Brad and Hilary Scott, reported investing nearly 7,700 hours over the last three years to ensure compliance with the over 11,000 districts nationwide. That amounted to over $297,000 spent on sales tax compliance while only collecting $127,000; or, $2.28 spent for every dollar collected. However, the law doesn’t allow for mistakes with local tax requirements — even unwitting ones.
“I’d rather just send the blank check to the states and not do the collection,” said Brad. “It’s one thing to say, ‘You’re not complying correctly.’ It’s another to be effectively called a criminal for failure to comply with something that is so complex that you can’t do it reasonably.”
The Scotts bear their fair share of burdens in their 28-person company. Brad alone takes on many rolls: payroll, HR, benefits administration, finance, and accounting, to name a few.
“I don’t have this vast team of departments that answers to me. I don’t oversee anything— I’m neck-deep in it on a daily basis,” explained Brad.
In addition to the great financial burden, the Scotts reported other, intangible burdens shared by other small business owners like them: stress and fear. They explained that they’re reliable for all mistakes — even unwitting ones — as both the business and individual owners of the business.
“This is crushing liability. I don’t know how else to say it,” said Hilary. “We used to worry about Arizona, we used to worry about the United States. Now, I’m worried we’re going to run afoul of a law in some county in Louisiana or Colorado that I’ve never even heard of.”
While the Wayfair ruling has been profitable for some states who were reportedly “bleeding revenue” without the ability to tax out-of-state businesses, small businesses like Halstead Bead have been required to make substantial expenditures of time, finances, and resources. One small, family-owned business in Illinois reported spending over $100,000 and a year on a software to assist with compliance, and even then they reported that they will likely spend over $75,000 annually to fine-tune their compliance and training while they keep up with law and regulation changes.
Judge Jane Triche Milazzo, an Obama appointee, is presiding over the Scott’s case. Louisiana officials filed an extension on their response, anticipated December 23.
Corinne Murdock is a reporter for AZ Free News. Follow her latest on Twitter, or email tips to corinne@azfreenews.com.
On Thursday, Scottsdale Unified School District Superintendent Dr. Scott Menzel issued a statement calling criticism of a club that encourages child sexualization under the guise of offering support — Gender & Sexualities Alliance (GSA) clubs — as “targeted attacks,” and suggested that those concerned were bullies to the students involved in the club.
“Recently, there have been targeted attacks on student-created school clubs related to gender and sexual identity, sometimes called GSA clubs. The students who choose to participate in them have a legal right not to be bullied, intimidated, or otherwise targeted by adult members of our community, as well as by any of their peers,” wrote Menzel.
Menzel also asserted that SUSD doesn’t regulate the viewpoints of student-initiated clubs. The superintendent said even GSA viewpoints are protected, comparing it to clubs focused on athletics, politics, and faith. As AZ Free Newsreported, the GSA at Cocopah Middle School was initiated by English teacher Laylee Langner.
“Students’ rights to have differences of opinions, beliefs and interests are protected in the U.S. Constitution and in Arizona statute. Consistent with those rights, SUSD does not regulate the viewpoints of student-initiated clubs. We have athletic clubs, political clubs, and faith-based clubs in our schools, in addition to academic and philanthropic clubs. These clubs welcome anyone; participation in any club is voluntary.
Menzel has a doctorate and masters in philosophy. According to his LinkedIn, he received his bachelor’s degree in religion.
SUSD parent Jill Dunicandenounced Menzel’s response. Dunican told AZ Free News that it demonstrated that the superintendent lacked character and was effectively gaslighting the SUSD community on the severity of GSA’s presence and impact.
“Dr. Menzel’s attempt to frame parents as bullies for speaking out about the hateful curriculum that he has allowed into Scottsdale schools is despicable. Menzel’s use of vulnerable children as a shield to distract from his support for the CRT-aligned GLSEN program that encourages race-baiting, cop-hating, and the sexualization of children is beyond the pale,” stated Dunican. “It’s disappointing that Dr. Menzel has decided to gaslight the community on this issue. It only speaks to his lack of character and further demonstrates he is not a good fit for our community.”
Earlier this week,AZ Free News reported on claims by GSA of the Year winners at Cocopah Middle School that they’d successfully strong-armed SUSD into changing ID policy: instead of bearing their legal names on their IDs, which the budding LGBTQ activists referred to as their “deadnames,” students were permitted to display their chosen name on their IDs. Neither SUSD spokespersons or any of the board members responded to multiple inquiries about the “deadname” policy.
SUSD’s latest controversy comes in the midst of continued national exposure over the connection of their former governing board president, Jann-Michael Greenburg, to a secret dossier on parents and political enemies. Greenburg’s father created the Google Drive dossier, and Greenburg himself had editing access to it.
At the beginning of this month, Scottsdale Police Department (SPD) determined that the case fell outside their jurisdiction because the dossier consisted of open source and/or public documents. SPD passed their investigative materials on to the FBI, Maricopa County Attorney’s Office, and Arizona Attorney General Mark Brnovich’s office for further review.
Corinne Murdock is a reporter for AZ Free News. Follow her latest on Twitter, or email tips to corinne@azfreenews.com.
The National Rural Electric Cooperative Association has recognized Arizona State Rep. Gail Griffin with the organization’s 2021 Regional Award for Outstanding Service. The award recognizes outstanding service at the regional or state level to electric cooperatives.
Griffin (R-LD14) serves areas of Cochise, Graham, Greenlee, Graham, and eastern Pima counties. She was nominated for the award by Grand Canyon State Electric Cooperative Association (GCSECA) and Sulphur Springs Valley Electric Cooperative (SSVEC).
In nominating Griffin, SSVEC Chief Executive Officer Creden Huber touted the representative’s myriad efforts to assist Arizona’s Cooperatives, including her protection of the capital credits program, her willingness to work together to solve policy problems, and her understanding of cost and maintenance concerns involving pole attachments by cable and telecommunication companies.
Huber also noted Griffin’s appointment as chair of House Natural Resources, Energy & Water Committee gives her responsibility for ensuring legislation that may negatively impact Cooperatives is addressed in committee. Griffin previously chaired the Senate’s NREW Committee.
“For the past 20 years, your guidance, passion and dedication to the electric co-op family gained you a reputation as a great leader in the electric cooperative program,” NRECA CEO Jim Matheson wrote in the award notification. “Your strong commitment to the seven cooperative principles and work on advocacy, education and training had a profound effect throughout the State of Arizona.”
Griffin takes pride in being a strong proponent of Arizona’s electrical cooperatives throughout her time in the Legislature.
“They are consumer owned, not-for-profit entities that ensure their members are provided with reliable and affordable service,” she said upon receiving the award. “I will continue to champion electrical cooperatives for the vital role they play in strengthening rural Arizona.”
NRECA represents more than 900 consumer-owned, not-for-profit electric cooperatives, public power districts, and public utility districts across America.
Due to the Arizona School Boards Association (ASBA) not withdrawing from the National School Boards Association (NSBA) over its controversial letter asking the Biden Administration to investigate parent and community opposition as domestic terrorists, Dysart Unified School District (DUSD) Governing Board voted last week to leave the association.
The board was split on the decision, 3-2. President Dawn Densmore issued the motion, and Clerk Christine Pritchard seconded. Board member Chrystal Chaffin joined Densmore and Pritchard in voting to leave ASBA. The remaining two board members, Traci Sawyer-Sinkbeil and Jo Grant, dissented.
Superintendent Quinn Kellis said that about three out of every 30 sample policies are based on opinion rather than statute. Densmore emphasized that it wasn’t the quantity that concerned her — it was the quality of those few opinion-based policies.
“Except for the part where they redline the policy about not teaching that you’re biased because you’re a certain race, gender, sex, you know, ASBA recommends we get rid of that,” said Densmore. “It’s just things like that that have me concerned about ASBA.”
Pritchard said that the people once a part of ASBA that made it amazing are no longer there. She described how political ASBA had become since she was elected over 15 years ago.
“I just feel like ASBA has really changed over the years. When I was first elected to the board, it was 2006, I remember going to the ASBA conference in 2006 and it just had a completely different feel,” said Pritchard. “It seems like for an agency or organization that’s supposed to be nonpartisan they are so far one way. And, whether one way’s the right one or one way’s not the right way, the point is that it’s supposed to be nonpartisan. It seems like they’re so politicized and there’s such an agenda and then to not take a stand against NSBA’s action was really disappointing.“I cringe a lot of times when I get their emails because they’re politicized, and I don’t want to be associated with that. And right now we are. It just doesn’t feel good to me.”
Chaffin said that ASBA’s new board member training just complained about “bad bills” passed by the legislature. She said that ASBA pushes certain agendas constantly and doesn’t factor the individual needs of districts.
“I don’t think they reflect our board and our district’s values,” concluded Chaffin.
“And they didn’t stand up for our parents — that’s the biggest piece. And to pay to be part of an organization that stands behind another organization that would make such a blatantly disrespectful comment, I don’t want to be associated with that,” added Pritchard.
Sawyer-Sinkbiel asked the board if anyone had invited ASBA to offer an explanation for not leaving the NSBA. Densmore responded by citing ASBA Executive Director Dr. Sheila Harrison-Williams’ refusal to address the controversy head-on.
Sawyer-Sinkbiel expressed concern that the board’s actions would hurt rather than help their district by cutting out a . She insisted that this was based on a national narrative rather than a local problem.
“We’re worried about Dysart. We shouldn’t be worried about a national narrative,” responded Sawyer-Sinkbiel. “I feel that we are trying to take all the things that we have done and throwing them out with that few percentage [sic] of the bad things. So, I don’t think that we should separate — I do believe we should have ASBA to come out and answer what questions that we do have. Put their feet to the fire. Ask them exactly what is going on.”
Pritchard rebutted that no clarification was necessary based on ASBA’s actions. She assured that DUSD has their own legal services that address their policies, which Kellis confirmed.
“It’s not a misunderstanding where I need them to clarify with me. It’s just a change in their mindset or a change in their organization as a whole. It’s the same type of political agenda and they shouldn’t be that way,” said Pritchard.
Sawyer-Sinkbiel challenged Chaffin on her statement that the board had an attorney. Kellis clarified that they do have prepaid legal through the trust, assigned based on the case.
Pritchard said that statute analysis and policy drafting could be procured. Chaffin asked why the district couldn’t use the money that would’ve gone to ASBA and pay
Sawyer-Sinkbiel challenged Chaffin again, asking who they would hire and if Chaffin was suggesting they not carry out their elected duties of drafting policy. Chaffin responded that she was suggesting that they could hire someone if they needed review of drafted policies or if they needed alerts on legislative changes.
“That’s a lot of ‘ifs’ and I’m not comfortable with supporting a lot of ‘ifs,” responded Sawyer-Sinkbiel.
Pritchard challenged Sawyer-Sinkbiel to weigh her pragmatic concerns with ethical concerns.
“What about our integrity? What does that mean?” said Pritchard. “To stay with them when this is who they are just because ‘Well, they can look at our policies,’ and I understand what you’re saying Mrs. Sawyer-Sinkbiel, I’m not saying be willy-nilly, I’m saying they’re not the only organization that can do that job.”
Sawyer-Sinkbiel doubled down after neither Pritchard or Chaffin could name an alternative to ASBA. She said they shouldn’t leave ASBA and instead settle for telling the association what upset DUSD. Sawyer-Sinkbiel insisted that DUSD didn’t know why ASBA decided not to leave NSBA.
Grant offered an explanation of her “no” vote similar to Sawyer-Sinkbiel: insisting that there may be financial troubles ahead if they didn’t plan prior to taking action.
“We just pulled an agenda item questioning a budget item for a department for $40,000 and we asked them to please go back and rework that. Now we’re talking another budget item that is $28,998,” said Grant. “And if we cancel with ASBA, we have no idea how much we’re going to spent on policy support or BoardDocs and it could be more than $28,998. It just seems to me that we should do our homework and come back with okay, BoardDocs is going to cost this amount of money and somebody to do policy support [will cost that much].”
Chaffin countered that integrity was the greater concern at the moment, not logistics. She said that the board has six months to figure out who would fill ASBA’s shoes.
“How long do you want to compromise […] our integrity to be associated with an organization that views parents the way NSBA does, that is very politicized,” said Chaffin. “We talk about, we don’t want our teachers bringing politics into the classroom. Well, this particular organization is flooding our district with tons of their politicized opinions and their views and agendas. It’s a matter of principle to me.”
The back-and-forth between Chaffin and Grant became more intense after that. Grant repeated that she’d like to see the costs before making a decision on ASBA.
“So there’s a price to integrity?” asked Chaffin.
Grant retorted that their decisions as a board have nothing to do with integrity. She also asked who would lobby for DUSD, if not ASBA.
“It has nothing to do with integrity. We talk about taxpayer money — what if the bill comes back at $50,000? I’m just asking the question,” said Grant. “When you walk in this door, we are now school board members. We may have different political opinions outside this room. […] At the end of the day, we have to be supporting public schools.”
Grant also challenged the notion that ASBA is political. She rejected the notion that the association’s emails were political, asking for specific examples. Grant dismissed Densmore’s example of race-based caucuses, insisting that both state and federal governments have race-based caucuses.
Sawyer-Sinkbeil repeated that she felt a personal attack on DUSD would be a more relevant reason to leave ASBA. She disagreed that NSBA’s letter included DUSD parents. Pritchard insinuated that Sawyer-Sinkbeil wasn’t being objective on the matter because of her having served leadership roles within ASBA.
DUSD membership to ASBA lasts through June 2022, making up .25 percent of the district’s operational budget according to the district. ASBA offers policy support and legal insight on legislative changes relative to K-12 education.
The board also approved a resolution related to the decision to leave ASBA. Densmore, Pritchard, and Chaffin voted for it, while Sawyer-Sinkbeil and Grant voted against it. The resolution asserted that parents had the right to parent their children without obstruction or interference from any political entity or government, and that ASBA’s actions weren’t reflective of that statement.
The resolution cited Education Secretary Miguel Cardona’s remarks during a testimony before the Senate Committee on Health, Education, Labor, and Pensions at the end of September. Cardona said that parents shouldn’t be the sole authority in their children’s education.
“I believe parents are important stakeholders, but I also believe educators have a role in determining educational programming,” said Cardona.
The resolution also called upon the Arizona legislature to pass a bill strengthening protections for parental rights.
The board’s decision came less than a month after voting to end its relationship with the NSBA.
Corinne Murdock is a reporter for AZ Free News. Follow her latest on Twitter, or email tips to corinne@azfreenews.com.
