Inside View: Duane Arens, NAIOP Minnesota

Director of public policy for NAIOP Minnesota, the Commer­cial Real Estate Development Association

Duane Arens, 53, is the new director of public policy for NAIOP Minnesota, the Commercial Real Estate Development Association. He replaces Kaye Rakow, who stepped down at year-end 2013 after 13 years with the association. Arens will oversee NAIOP's legislative and public affairs program for the 700-member organization of developers, owners, investors and property managers.

Most recently, the Albert Lea, Minn., native was director of economic and community development for Ramsey-based Connexus Energy, ­Minnesota's largest electric cooperative. He previously served on Gov. Arne Carlson's staff and held positions with the Minnesota Department of Trade and Economic Development, AT&T and the Minneapolis and U.S. Chambers of Commerce. He's also past chairman of the Minnesota Amateur Sports Commission in Blaine.

Arens will be NAIOP's key voice at the State Capitol on issues affecting Minnesota's commercial real estate industry, including lowering business property taxes and pushing for greater transparency in local government spending. NAIOP also is lobbying to overturn the business-to-business sales tax on commercial warehousing services that is scheduled to go into effect April 1.

Q: What prompted you to move from the utilities/energy industry to lead the public policy charge for NAIOP?

A: It was time to make a move, and when I saw the NAIOP opening I got pretty excited because a lot of the issues that they work on, I've been working on for many years. I was chairman of the MetroNorth Chamber of Commerce and on that board for seven years. And before I worked in the governor's office, I worked for the Minneapolis and U.S. Chambers of Commerce, so I've always been involved with business issues. And everyone knows Kaye [Rakow] at the Capitol. … So when this spot opened up, I thought this might be pretty interesting, and I think I could jump right in and lead the cause.

Q: What set you apart from other candidates for the position?

Q: NAIOP's legislative efforts have centered around the message that "costs matter." What costs are your members and their tenants most concerned about?

A: The direct and indirect costs that we don't have any control over. Property taxes, for example, are a heavy direct cost that you have to pay whether a company is profitable or not. So business property taxes are always a big deal for us. And indirect costs related to regulations have a huge burden on small businesses.

Q: What's another top-priority issue?

A: The warehouse tax and other business-to-business sales taxes. The warehouse industry works on such small margins — 4 or 5 percent — and the warehouse tax would be 6.5 percent-plus, so if you don't build it into your business proposals, a company is losing money. And if you do put it into your proposals, you out-price yourself for neighboring states. It's a lose-lose situation.