The 2007 session of the Iowa Legislature is likely to produce action on the subject of commercial property taxes, but “it might just be so they can say they did something,” said attorney and lobbyist Jim Carney. “It could be just a Band-Aid.”

Carney made his remarks while acting as moderator of the annual Commercial Real Estate Trends and Issues Forum presented by the Business Record on April 3. About 200 people attended the breakfast event at the Hilton Garden Inn in Johnston and heard opinions about taxes, red tape, green building and intercity cooperation from six panel members: mayors Bob Andeweg of Urbandale, Frank Cownie of Des Moines, Brian Laurenzo of Johnston, Bill Peard of Waukee and Steve Van Oort of Ankeny, and Jeff Pomeranz, city manager of West Des Moines.

Carney reported a high level of interest in the commercial property tax issue among legislators, but said the audience of real estate professionals probably wouldn’t be satisfied by either of two tax-cutting bills being considered or a tax credit plan recommended by Gov. Chet Culver.

Carney noted that Republican legislators, now in the minority, are “keeping a scorecard” of all increases in fees and taxes enacted this year. If a cut in commercial taxes is offset by increases in other categories, he said, the increases could become a campaign issue.

Commercial rates “are extremely important to us,” said Pomeranz. “They’re a real obstacle to staying competitive with other states. But what legislator wants to be in the situation of raising residential rates and upsetting the residents of Iowa?”

Other topics discussed at the forum:

• Red tape. Rick Tollakson, president and CEO of Hubbell Realty Co., raised the issue of the lack of uniformity in development rules among Central Iowa cities. “It’s like walking into 20 different war zones,” he said.

Cownie responded by saying that the Metro Advisory Council “has worked diligently with all of us on how we can regionalize the (building) codes, and we have unified them. We are at least most of the way there.”

As far as the procedures that go along with those codes – permits and inspections, for example – Peard said, “I don’t know that you’ll ever see standardized processes, because every community is unique. But that’s not to say we can’t work toward making it smooth.”

• “Fair play.” The cities in the metro area signed an agreement several years ago to refrain from providing incentives to companies to leave one city for another. When the panel was asked how well that plan is working, Laurenzo said, “We need to keep reviewing that agreement to see if it’s working or not, but the worst example I’ve heard is from seven years ago, so it must be going OK.”

“We have had companies move from West Des Moines to other communities and receive incentives to do so,” Pomeranz said. “That’s a simple fact. But those moves have been within the current agreement.”

After the forum, Pomeranz referred to Marsh Inc.’s planned move from West Des Moines to Urbandale and said it is “not perceived as a violation” because the company is taking advantage of pre-established incentive policies.

• Green building. Cownie, known for his interest in environmental topics, said Des Moines is looking at the Chicago model of using tax abatement to encourage more energy-efficient construction.

He issued a challenge to reduce the energy consumption in Central Iowa’s new commercial buildings 80 percent by 2030.