THE VOICE OF THE SOUTHERN CALIFORNIA REAL ESTATE COMMUNITY.

NAIOP SoCal Investigates Storm Water Run Off

Who is to bear the cost of cleaning up our ocean waters? That is the question being debated. To address the issue of storm water runoff, current regulations are being proposed by local regional water quality control boards. We all want clean water in the ocean, but is it fair to saddle the development industry with the bulk of the cost? Since this expense will only be passed on in the form of higher rents for our businesses and higher home prices for our employees, we don't think so. Any cost associated with storm water runoff must be borne equitably by all who benefit. Contamination of our ocean waters is not caused by the developer. Contamination comes from many sources, including gas and oil leaking from cars, fertilizers from gardens and waste products from pets and animals, all of which find their way into our ocean through existing means.

The issue of storm water runoff, and particularly storm water runoff regulations, is of tremendous importance to Koll. This issue may have a significant financial impact on our projects going forward, the cost of which will ultimately be paid for by future tenants of those projects," said Nader Shah, vice president of development for Koll Development Company. "We are happy that NAIOP SoCal has taken such a proactive approach to researching this issue, and look forward to seeing their final report."

Los Angeles County has already adopted stringent storm water runoff regulations and the Santa Ana Regional Board is currently considering similar mandates. The cost of these mandates is not justified by the benefits received since they do nothing to stop the contamination of our ocean water. Moreover, the enforcement of these regulations is by local government. Landowners in South Orange County are already feeling the effects of penalties for noncompliance.

In keeping with its mission of proactively addressing issues that impact the industry, NAIOP SoCal has begun in-depth research on storm water runoff and storm water regulations. From this research, NAIOP SoCal intends to better understand the practical impacts of these regulations on its members and the industry, and to thereafter determine effective strategies to accomplish the goal of cleaning up our ocean waters. Additionally, NAIOP SoCal's goal is to determine what Best Management Practices (BMPs) are appropriate and how to comply with the permits in order to better achieve the intended benefit at the lowest effective cost.

As part of NAIOP's research, storm water experts are being consulted throughout the entire process. Contacts with an extensive understanding and involvement in the Municipal Storm Water Permit Process, including the Building Industry Association of Southern California (BIASC) and San Diego, Geomatrix Consultants, the Irvine Company and Stanley Grant of the University of California, Irvine are also being interviewed.

NAIOP SoCal has focused its attention on gathering information from regional water quality boards in Los Angeles, which oversees the Los Angeles region; Santa Ana, which oversees north Orange County; and San Diego, which oversees southern Orange County. In September, NAIOP SoCal will have a detailed report and a summary of the practical effects of the permits.

The Chapter is also building a coalition with local Orange County cities and the BIASC to address the proposed permits being issued by the Santa Ana Regional Board. As part of that effort, comment letters have been sent to the Regional Board and NAIOP SoCal's representatives have provided testimony at board meetings.

Based upon its findings to date, NAIOP SoCal has found the proposed regulations to be impractical and inefficient resulting in companies incurring tremendous costs in light of unknown benefits. Moreover, the regulations may lead to third party lawsuits, since under the proposed permits as written, projects will not be in compliance with the permits on day-one of permit implementation.

If you have questions or would like additional information on storm water runoff and storm water runoff regulations, please contact Vickie Talley, The Los Angeles Business Journal is not responsible for the contents of this article.