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Shopping Centers Today -> May 2004
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ICSC LEADERS RAISE KEY ISSUES IN WASHINGTON
BY IAN RITTER
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| L-R: Charles Grossman, James E. Maurin; Kathleen M. Nelson, Treasury Secretary John Snow; Norris R. Eber SCMS, CLS; Kemper Freeman Jr.; and Michael Kercheval. |
The delegates raised these issues with their legislators at the two-day conference, which was formerly called the Congressional Contacts Meeting.
In addition, some ICSC leaders met with Treasury Secretary John Snow and pressed him to extend a component of the Terrorism Risk Insurance Act of 2002 that requires primary insurers to provide terrorism coverage (the provision expires at the end of the year). Without the coverage, landlords must bear the full loss resulting from terrorist attacks. Some lenders have refused to finance new projects or to refinance existing ones when this coverage was missing. And some companies have seen their credit ratings downgraded for lack of terror insurance.
During a lunch session at the Willard Inter-Continental Hotel, Al Martinez-Fonts, special assistant to the secretary for the private sector at the Department of Homeland Security, said his department and private entities such as ICSC must work together to prevent terrorism.
“Partnerships are the best way we can fight terrorism,” Martinez-Fonts said. “This is a national effort, not a federal effort.”
The conference included some familiar themes too. ICSC members are again urging the Senate to pass the Bankruptcy Abuse Prevention and Consumer Protection Act. The measure would limit to 120 days (plus an additional 90 days if there is cause) the amount of time a bankrupt retailer gets to accept or reject a lease. Currently, there is no time limit, so bankrupt tenants are able to keep their stores dark for months.
Bankruptcy reform is particularly pressing now, given the number of recent bankruptcies among retailers, said Elizabeth Holland, chairwoman of ICSC’s Economic Issues Committee. Footstar, Gadzooks and Tower Records are among those that have filed for Chapter 11 this year.
“We feel as though this is going to be the final push,” she said of the bill, which the industry has pursued for several years. “Its time has come.”
Some are saying the same about collection of Internet sales taxes. The Streamlined Sales Tax Act would make it easier for retailers to collect state sales tax on Internet and catalog sales. Currently, companies are required to do so in those states in which their operations are based, per a 1992 Supreme Court decision. Congress must pass a law to supersede that ruling. Many cash-strapped state governments are desperate to collect such revenues.
The main obstacle to passage of ICSC-backed bills this year is the presidential election. Democrats don’t want to pass bills that will make President Bush look good, while Republicans are unwilling to compromise their agenda, speakers said.
This year’s attendance of 200 was a record, ICSC meeting organizers say.
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