Combing through 2,600 bills to determine possible impacts on the commercial real estate industry and actively tracking, testifying on and lobbying 70 to 90 of them has become standard work of NAIOP Maryland’s Legislative Committee during a General Assembly session. Creating such an extensive, informed and effective legislative operation, however, required years of dedicated effort and a few pivotal decisions along the way.
“When Manis Canning and Associates was hired by NAIOP Maryland years ago, Pat Hughes was doing an unbelievable job leading its legislative work,” said Nick Manis, whose firm has been working with the association since 2005.
That work, however, was focused.
“There was one issue before the legislature that NAIOP cared about and that was a real estate transfer tax called the controlling interest tax,” Manis said. “Every year, the bill would pass the House so we would focus our efforts on the Senate Budget and Tax Committee. And we were able to defeat it many years based on Pat Hughes’ leadership and relationships.”
But in 2007, NAIOP Maryland leadership decided to expand the chapter’s legislative work, said Cole Schnorf, Chief Operating Officer and Director of Development at Manekin, LLC and NAIOP-MD President in 2008 and 2009. “Instituting the Penny Per Square Foot fund and convincing major developers – COPT, Merrit, St. John and others – to support it, let us hire Tom Ballentine [as Vice President for Policy and Government Relations] and establish a consistent, credible presence in Annapolis.”
Increasingly, NAIOP Maryland and its Legislative Committee were able to assess and intervene on a growing list of legislation relevant to the industry.
“When I was introduced to the Legislative Committee, it was an eye-opening moment,” said Tom Pilon, Executive Vice President/Development at St. John Properties and and long-time chair of the Legislative Committee. “I had been trying to manage legislative issues for St. John Properties just as part of our work. It was very difficult to stay informed and give good testimony on issues. When I saw this industry organization put a legislative structure together, that was huge. I saw the kind of impact an organization could have both for us as a company and for the industry.”
The Legislative Committee began meeting weekly during General Assembly sessions to analyze proposed legislation, determine the chapter’s position on relevant bills and plan any needed actions, such as testimony at committee hearings. The committee also expanded its roster of volunteers, both to conduct regular committee work and to step in periodically to provide insights and guidance on specific topics core to their professional expertise.
In addition to developers and brokers, “we have environmental attorneys and engineers who know a lot about water quality, transportation and the Building Energy Performance Standards. We have other attorneys who specialize in tax and contracts and land use laws,” Pilon said. “We have grown this network with a wide range of specializations so we can bring in people who are expert on topics as needed. We are very cognizant of the fact that everybody is busy and we don’t want to overtax people.”
From the beginning, the NAIOP Legislative Committee presented a unified state-wide industry perspective to policy makers. The composition of the committee includes representatives from NAIOP DC | MD so that the leading companies from both major markets in Maryland are at the table.
“NAIOP Maryland has one of the best legislative committees of any client we represent,” Manis said. “The committee is very well versed on different parts of the industry. They review every issue, rate its impact and tell us their opinions. For me, it’s great listening to these industry leaders because they live and breathe these issues day in and day out. Hearing them discuss the impacts and intricacies of each bill helps me go advocate on their behalf.”
That ongoing work has bolstered NAIOP Maryland’s legislative efforts in other ways. It has helped educate legislators and unelected officials on CRE-related topics. It has organized pointed testimony on key bills.
Due to the chapter’s consistent, informed and professional efforts, “Tom Ballentine is now regarded in Annapolis as an expert in the development field,” Manis said. “NAIOP has a reputation as a credible source of information, even when NAIOP’s view doesn’t match the opinions of some legislators.”
In recent years, NAIOP has expanded the use of litigation strategies to support industry legislative priorities.
In 2022, NAIOP submitted an Amicus Curiae petition, requesting that the Maryland Court of Appeals review a lower court ruling that threatened the validity of zoning text amendments and opened legislative actions related to zoning to court challenges by community groups.
More recently, NAIOP joined multiple Maryland real estate trade groups, condominium associations, utilities, and the state’s largest retirement community to seek federal court relief from the state Building Energy Performance Standards.
All of the legislative efforts deliver real value to members of the CRE industry, Schnorf said.
“It all comes down to dollars and cents. If you’re not paying attention, you can be hit by a regulation that slows down permitting or reduces your land use, makes changes to existing projects or increases your energy bill. This is important work.”