Archives for January 2015

Marijuana is becoming legal in more states, which may make it tougher for landlords seeking to enforce their own bans.
As the movement to legalize marijuana blazes through the nation, landlords and building managers may be wondering whether the right to ban the drug from their properties is going up in smoke. The truth around the issue is a bi hazy.
State laws legalizing some form of pot use don’t prevent landlords from writing lease agreements prohibiting marijuana on their properties. “If a landlord does not want marijuana cultivated, grown, or used on the property, the lease should directly address this and state such prohibition,” says Lesley Walker, associate counsel for the National Association of REALTORS®. “For existing lease agreements, a landlord could consider having tenants sign an addendm that specifically addresses the presence and use of marijuana on the property.”
But the laws don’t necessarily support such agreements either. When a state law says no person shall be penalized for using marijuana, does evicting a tenant who violates a property owner’s no-pot policy constitute a penalty? The question is still being tested in the legal system, but housing experts say state courts are likely to err on the side of “yes”. So for landlords and property managers, there’s real concern not only about creating a zero-tolerance policy but also about enforcing one.
Twenty-three states and the District of Columbia have legalized medical marijuana, and four of those states- Alaska, Colorado, Oregon, and Washington- have also legalized recreational pot. (Voters in D.C. also approved recreational marijuana in November, but the measure was struck down by Congress.) And while no state explicitly requires landlords to accomodate tenants who wish to use the drug at home, many of these states prohibit landlords from discriminating against medical marijuana patients by refusing to rent to them.
Still marijuana laws are in flux. The federal government, which has long held that any form of pot use is illegal, effectively ended ints ban on medical marijuana in late December after President Barack Obama signed a bill prohibiting federal funds from being spent to prosecute medical marijuana users. This may change the situation in California, for example, where residents with medical conditions have the right to “full and equal accommodations” in housing. Before the recent federal change, such protection didn’t necessarily include medical marijuana, says June Barlow, general counsel for the California Association of REALTORS®. But the new law could lead to medical marijuana accommodations in California.
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By: Graham Wood (REALTORMag.REALTOR.org)
 
 

The 225-acre Arrowhead Park real estate development on the campus of New Mexico State University in Las Cruces has hit a milestone of sorts. The project is at a point, says its executive director, that it is ready to join forces with a development partner for future stages.
Pictured is a rendering of the forthcoming Burrell College of Osteopathic Medicine, to be located on the campus of New Mexico State University.
Wayne L. Savage told Business First that Arrowhead Park, part of the technology-and-research-driven Arrowhead Center, is on the lookout for a partner to collaborate on an ambitious 30 to 40 acre mixed-use development. An initial build-out, Savage said, would consist of about 120,000-square-feet of buildings — a mix of just about anything, save a multifamily component. There would be office, research, recreational and other commercial pieces, including education, said Savage. The development dollars for just the first couple years of work hovers around $20 million to $30 million. “You can’t put a price tag on the entire development just yet,” Savage said.
“Since 2012, we’ve brought consultants together to look at the [development] and one of the recommendations was to create a sense of identity. We need to create more of a sense of place, the landscaping, amenities — all part of the master planning process we envision for the next few years. We think we have the potential to be a more well-rounded project, not just [a research park],” Savage added.
A request for qualifications (RFQ) with a March 11 deadline for interested developers has been released. Savage said Las Cruces has kept a close eye on the momentum of Albuquerque’s Innovate ABQ initiative — stating that the two projects can be compared in many ways. “The city of Albuquerque may be a little ahead of the discussion, but we feel we’re there too,” Savage said.
The RFQ targets a developer or development team that is interested in designing, constructing, owning and managing anchor tenant and mixed-use facilities. Savage said he’s hopeful a New Mexico-based firm or team would emerge, but that the RFQ is open to anyone who is qualified.
Arrowhead has gotten renewed focus in recent months, as Santa Fe entrepreneur Dan Burrell and his family announced it would bring an $85 million private osteopathic medical school to the property.
More information and RFQ details are available here.
By: Damon Scott (Albuquerque Business First)
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LEFT: John Garcia, executive vice president of the Home Builders Association of Central New Mexico and state secretary of economic development under ex-Gov. Gary Johnson, speaks in support of a right-to-work bill on Thursday. RIGHT: Brian Condit of the New Mexico Building and Construction Trades Council, who was chief of staff for Democratic Gov. Bill Richardson, said that Intel has made huge investments in its Rio Rancho plant despite the state’s lack of a right-to-work law. (Eddie Moore/Albuquerque Journal)

SANTA FE – A bill that would make New Mexico the nation’s 25th state with a right-to-work law cleared its first House hurdle Thursday, despite opposition from labor union leaders and members who vowed to keep fighting the high-profile measure.

After nearly five hours of debate, members of the House Business and Employment Committee voted 8-5 in favor of the proposed change in labor laws, which would bar nonunion workers from having to pay union fees as a condition of their employment.

The bill’s sponsor, Rep. Dennis Roch, R-Logan, told reporters after Thursday’s vote that a right-to-work law could bolster the state’s economic development efforts, though he acknowledged it would not be a cure-all.

“This is one component of a multifaceted business climate improvement in New Mexico, to get job creators here and get New Mexicans back to work,” Roch said.

However, Senate Majority Leader Michael Sanchez, D-Belen, told the Journal after Thursday’s House committee vote that he views the right-to-work legislation as “hurtful.”

“It’s anti-worker, anti-family – that’s what it is,” Sanchez said. “I don’t believe it’s going to get through the Senate.”

Long stymied in New Mexico, right-to-work legislation has emerged as a hot-button issue in the 60-day session that began last week, prompted by a GOP takeover of the House for the first time in 60 years. Democrats still have a 25-17 majority in the Senate, which would also have to approve any right-to-work bill for it to advance to Gov. Susana Martinez’s desk.

Currently, there are 24 right-to-work states, with Indiana and Michigan being the latest to enact such laws. Before those two states, just one other state – Oklahoma – had approved a right-to-work law since 1993.

Although several right-to-work bills have been introduced at the Legislature this year, the bill debated Thursday would apply to employees in both the private and public sectors in workplaces covered by collective bargaining agreements.

Opponents of the proposal, House Bill 75, said it could hurt workers by undermining labor unions, and possibly driving down pay and benefit levels.

“Right-to-work might be good for businesses, but it’s not good for workers,” said Alicia Woody, a Hobbs teacher and union member who was one of dozens to speak against the measure.

A smaller number of supporters, many of them affiliated with business groups, also testified Thursday. Some of them described the right-to-work bill as a fairness issue, since nonunion workers would be able to choose whether to pay union fees.

Lt. Gov. John Sanchez, in a rare appearance before a legislative committee, was among those who spoke in favor of the measure, saying it could reverse New Mexico’s recent population loss by helping to create new jobs.

“It will strengthen unions by making them more accountable to their members,” said Sanchez, who ran an Albuquerque roofing company before being elected lieutenant governor.

Studies on whether right-to-work bills actually lead to job growth and what – if any – impact they have on wage levels could play a key role in this year’s debate.

Republican Party of New Mexico Chairwoman Debbie Maestas said in a statement after Thursday’s vote that a majority of right-to-work states have higher per capita income levels than New Mexico.

But Sanchez cited a congressional report that found workers pocket about $7,000 less per year in right-to-work states, compared with workers in states that do not have such laws.

Brian Condit of the New Mexico Building and Construction Trades Council, who previously worked as chief of staff for Democratic Gov. Bill Richardson, pointed out that Intel Corp. has made massive investments in the company’s Rio Rancho plant since the 1980s despite the state’s lack of a right-to-work law.

Right-to-work proposals have faltered in the Legislature in recent years, and approved legislation was vetoed in 1979 and 1981 – both times by the late Gov. Bruce King, a Democrat.

Of roughly 751,000 total workers, New Mexico had about 46,000 union members in the private and public sectors in 2013, according to the U.S. Bureau of Labor Statistics. That 6.2 percent union membership rate was far lower than the national average of 11.3 percent.

Critics of right-to-work legislation claim it would weaken labor unions, which play an active role in New Mexico elections. Three large unions – two teachers unions and one public employees union – combined to spend roughly $1.8 million during the state’s 2014 election cycle, according to an analysis by the Washington D.C.-based Center for Public Integrity.

Thursday’s vote in the House Business and Employment Committee largely broke down along party lines, with one Democratic lawmaker, Rep. Dona Irwin of Deming, joining with the committee’s seven Republican members in support of the bill.

The legislation now advances to the House Judiciary Committee.

By: Dan Boyd (Albuquerque Journal)

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