Remember that proposal a few years back by L.A. city officials to double the transaction tax on property sales?

It got slapped down quickly after intense lobbying from local real estate groups. Now it’s back – though in a much more limited way.

Los Angeles Mayor Eric Garcetti, in an appearance on “Ask the Mayor” on KABC-TV (Channel7), said he is working up a $75 increase in the documentary transfer tax on transactions involving commercial properties and wants to put it on the November ballot. The tax increase, according to the mayor, would generate $30 million a year for affordable housing and other programs aimed at reducing homelessness.

Garcetti’s proposal is similar to one that failed to pass the state Legislature last year, except while the statewide bill was a $75 fee on all real estate transactions, this one appears to be limited to commercial properties.

In concept at least, some local real estate and business groups are on board with Garcetti’s proposal.

“We have for years supported the concept of a documentary transfer tax on the sale of commercial properties to support affordable housing and homeless services,” said Carol Schatz, chief executive of the Central City Association, which represents downtown L.A. business interests. “We believe our members see this proposal as a good investment in solving our homeless state of emergency and affordable housing crisis.”

But the proposal is still a work in progress. Connie Llaanos, Garcetti’s press secretary, told the Business Journal that the exact structure of the fee is still being defined, though her statement did confirm that the fee would be on “nonsale real estate transactions.”

Commercial property industry representatives said they are concerned the fee would include lease transactions.

“Our big question right now is whether this will include commercial leases,” said Martha Cox-Nitikman, vice president of public policy for the L.A. chapter of the Building Owners and Managers Association. “If it does include leases, $75 for a few transactions a year won’t mean much, but it could really start adding up for commercial real estate owners with major portfolios.”

Cox-Nitikman added that while her group could support a documentary transfer tax, much would depend on who else would share in the burden of raising money for affordable housing and homeless services.

“This is a societal problem. We are willing to do our part, but the chief burden should not fall on our members,” she said.

Refinery Restart?

The massive ExxonMobil Corp. refinery in Torrance, mostly idle since a devastating explosion a year ago, could soon move closer to restarting.

The South Coast Air Quality Management District and ExxonMobil are in what could be final negotiations over the steps that the Houston oil giant would have to take to make sure the refinery meets AQMD air quality rules as it is being relaunched. An announcement of final order could come this week and, in anticipation, a public court hearing on the restart plan has already been scheduled for March 19 in Torrance.

According to a document filed March 2 by the air quality control agency, if ExxonMobil were to restart the plant and operate the facility as it did before, the refinery would be in violation of at least 10 separate AQMD air pollution control rules.

AQMD spokesman Sam Atwood said negotiations are focusing on the steps ExxonMobil would have to take in order not to be in violation of those rules.

Heated Discussion

After years of efforts to get employers to institute measures to protect workers from heat illness while doing work outside, attention is now turning to indoor workplaces.

State Sen. Connie Leyva, D-Chino, has introduced a bill that orders the California Division of Occupational Safety and Health to come up with rules to protect workers from heat illness indoors and present them to the California Occupational Safety and Health Standards Board by July 1 of next year.

Leyva hails from the Inland Empire, which contains some of the largest industrial warehouses in the nation. The structures are often not adequately air conditioned.

“It is alarming to think that there are employees having to work in temperatures that are dangerous and potentially life threatening,” Leyva said in a statement introducing her measure last month. “SB 1167 will move California in a direction where heat dangers are taken seriously for all employees, not just those that work outdoors.” 

Business groups that had many problems with the way outdoor heat illness regulations have been implemented are wary of this new attempt.

“The targets of Leyva’s bill are warehouses and factories, a concern for manufacturing,” Nicole Rice, policy director for the California Manufacturers and Technology Association in Sacramento, said in a blog entry. “We will be following this discussion closely.” 

Staff reporter Howard Fine can be reached at [email protected] or (323) 549-5225, ext. 227.