Cambridge Massachusetts Building Expert Directory

Tension Over Municipal Gas Bans Creates Uncertainty for Real Estate Developers

February 07, 2022 — Sidney L. Fowler, Robert G. Howard & Emily Huang - Gravel2Gavel Construction & Real Estate Law Blog
On November 15, 2021, the New York City Council approved a bill banning gas hookups in new buildings, making the biggest city in the U.S. the latest in a string of municipalities to prohibit natural gas infrastructure in new homes and buildings. In the two-and-a-half years since Berkeley, California, passed its then-novel municipal ban on new natural gas infrastructure, numerous cities have found themselves at odds with state governments and industry groups on the issue of full electrification in residential and commercial real estate. The resulting disputes, litigation and regulatory uncertainty have created headaches for the real estate industry. Although not all view the restrictions as negative, and many developers have embraced the push for more climate-neutral buildings, these bans introduce complexity to the real estate market, raising additional legal and commercial challenges. Background According to the U.S. Environmental Protection Agency, the use of natural gas in homes and businesses accounts for 13 percent of annual U.S. greenhouse gas emissions. For that reason, advocacy groups have pushed cities to prohibit natural gas infrastructure in new construction and encourage full electrification of newly constructed buildings. In addition to New York and Berkeley, cities that have either passed or considered such ordinances include San Francisco, Sacramento, Seattle and Denver, as well as numerous smaller cities. New York City’s newly passed gas ban, in particular, prohibits natural gas hookups in new buildings under seven stories by 2024, and in taller buildings by 2027, but exempts hookups in commercial kitchens. Reprinted courtesy of Sidney L. Fowler, Pillsbury, Robert G. Howard, Pillsbury and Emily Huang, Pillsbury Mr. Fowler may be contacted at sidney.fowler@pillsburylaw.com Mr. Howard may be contacted at robert.howard@pillsburylaw.com Ms. Huang may be contacted at emily.huang@pillsburylaw.com Read the court decision
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Home Prices in 20 U.S. Cities Increased 5% in Year to June

August 26, 2015 — Michelle Jamrisko – Bloomberg
Home prices in 20 U.S. cities climbed 5 percent in June from the same month a year earlier, a sign of more progress in the housing market. The increase in the S&P/Case-Shiller index of property values matched the year-over-year gains in the prior three months, the group said Tuesday in New York. The median estimate of economists surveyed by Bloomberg called for a 5.1 percent year-over-year advance. Nationally, prices rose 4.5 percent. Read the court decision
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Reprinted courtesy of Michelle Jamrisko, Bloomberg

A Court-Side Seat: An End-of-Year Environmental Update

January 09, 2023 — Anthony B. Cavender - Gravel2Gavel
As 2022 draws to a close, here is a brief description of recent environmental and regulatory law rulings, as well as new federal rulemaking proceedings. United States Tax Court

Green Valley Investors, LLC et al, v. Commissioner of Internal Revenue On November 9, 2022, the Tax Court agreed with the taxpayers that the IRS’s use of administrative Notice 2017-10 to impose substantial tax liabilities violated the Administrative Procedure Act (APA). The notice was the agency’s response to a provision in the American Jobs Creation Act of 2004 which increased the penalties for engaging in a reportable transaction understatement. Here, at issue was the value of charitable deductions generated by the creation of environmental easements made in connection with land transactions. These claimed deductions amounted to more than $60 million. The petitioners argued that IRS Notice 2017-10, which authorized such large penalties, was in fact a “legislative rule” whose promulgation should have complied with the notice and comment requirements of the APA. The agency contended that the Congress, by implication, absolved the IRS from the notice and comment requirements. The court agreed with the petitioners and set aside Notice 2017-10 and the imposition of penalties under Section 6662A of the Jobs Creation Act. On December 8, 2022, the IRS published a notice of proposed rulemaking that would correct the APA deficiencies noted by the courts. (See 87 FR 75185.)

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Reprinted courtesy of Anthony B. Cavender, Pillsbury
Mr. Cavender may be contacted at anthony.cavender@pillsburylaw.com

Settlement Payment May Preclude Finding of Policy Exhaustion: Scottsdale v. National Union

December 11, 2013 — Heather Anderson — Higgins, Hopkins, McLain & Roswell, LLC.
In the last year, the U.S. District Court for the District of Colorado found that a settlement payment from an excess insurance carrier to another primary insurance carrier precluded a finding of vertical exhaustion sufficient to trigger the primary carrier’s duty to indemnify. See Scottsdale Ins. Co. v. National Union Fire Ins. Co. of Pittsburgh, 2012 WL 6004087 (D. Colo. 2012). The Scottsdale case arose out of the construction of a 507-unit apartment complex in Arapahoe County, Colorado in which a number of defects became apparent during construction. As a result, the owner of the project sued the general contractor and/or the construction manager, seeking to recover more than $22 million for various construction deficiencies. Id. at *1. The general contractor was insured under policies issued by several carriers. Scottsdale Insurance Co. (“Scottsdale”) and National Union Fire Ins. Co. (“National Union) provided umbrella coverage, and CNA and American Zurich Ins. Co. (“Zurich”) provided primary insurance under commercial general liability policies. About five years later, the construction defect case settled for $8.5 million dollars. Read the court decision
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Reprinted courtesy of Heather Anderson
Heather Anderson can be contacted at anderson@hhmrlaw.com

Appraisal Goes Forward Even Though Insurer Has Yet to Determine Coverage on Additional Claims

December 11, 2023 — Tred R. Eyerly - Insurance Law Hawaii
The trial court's order granting the insured's motion to stay litigation and compel an appraisal was affirmed even though the insurer had not determined coverage on the insured's additional claims.Heritage Prop. & Cas. Ins. Co. v. Wellington Place HOA, 2023 Fla. App. LEXIS 6405 (Fla. Ct. App. Sept. 13, 2023). The insured homeowner's association reported roof damage to its insurer, Heritage, after Hurrican Irma struck. Heritage agreed the damage was covered, but issued no payment because the amount of loss was less than the deductible. The insured hired its own adjuster. The insured requested an extension of the policy's two year time limit to complete repairs because the claim was still in dispute and the insurer had not yet paid sufficient funds to allow necessary repairs. Heritage sent a revised estimate and asked the insured to send its adjuster's estimate in order to address any disputes. The insured submitted its adjuster's estimate of more than $6 million, including, for the first time, the cost to replace all the windows and sliding glass doors. Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Damon Key Leong Kupchak Hastert
Mr. Eyerly may be contacted at te@hawaiilawyer.com

Manhattan Site for Supertall Condo Finds New Owner at Auction

December 15, 2016 — Oshrat Carmiel – Bloomberg
A development site slated for an almost 1,000-foot condo tower on Manhattan’s far east side found a new owner through a bankruptcy auction Tuesday, removing a hurdle for construction after about a year of delays. Gamma Real Estate, the lender to the project, won the auction with a credit bid of $86 million and is poised to take control of the site, pending approval from the bankruptcy court, said David Schechtman, a broker with Meridian Investment Sales, which handled the auction with another brokerage. Read the court decision
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Reprinted courtesy of Oshrat Carmiel, Bloomberg
Mr. Carmiel can be followed on Twitter @OshratCarmiel

San Francisco Bay Bridge Tower Rod Fails Test

May 20, 2015 — Beverley BevenFlorez-CDJ STAFF
The San Francisco Chronicle reported that “[o]ne of the steel rods anchoring the tower of the new Bay Bridge eastern span has failed a key integrity test, suggesting it became corroded and broke during years when it was soaking in water.” Hundreds of other rods have also been steeped in water, which raises concerns about how stable the bridge might be during a major earthquake. Gareth Lacy, a Transportation Agency spokesperson, told the Chronicle that “[t]hey are investigating why one seismic rod at the base at the tower moved when it was pulled by the machine,” Lacy said. “It did not carry the expected load, and the next step is to remove it to fully investigate its condition.” Read the court decision
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Panama Weighs Another Canal Expansion at Centennial Mark

August 20, 2014 — Michael McDonald – Bloomberg
A century after the U.S. steamship Ancon first sailed through the Panama Canal, a $5.3 billion expansion delayed by bickering contractors and angry workers is nearing completion. The problem is it might not be big enough. With the expansion 16 months behind schedule, canal administrator Jorge Quijano said officials are studying whether to dig a fourth set of locks to handle a growing fleet of super-sized ships. Those include the 400-meter-long “Triple E” vessels capable of carrying more than 18,000 containers, four times more than current ships passing through the canal. “We are always analyzing the market and as soon as we can economically justify it we will begin,” said Manuel Benitez, deputy administrator of the Panama Canal Authority, adding that he thinks the current expansion is sufficient for now. “If that changes and the demand exists we are ready to begin.” Read the court decision
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Reprinted courtesy of Michael McDonald, Bloomberg
Mr. McDonald may be contacted at mmcdonald87@bloomberg.net

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