Sustainability Puts Down Roots in Real Estate
January 27, 2020 —
Stephanie Amaru - Gravel2Gavel Construction & Real Estate Law BlogSustainability has evolved from a passing trend or niche preference into an undeniable, growing driver of the real estate market. This is particularly true as millennials comprise an increasing proportion of the workforce, home-buying population, and individuals influencing the future of real estate development in the United States.
If anything illustrates the significance of younger generations’ increasing interest in sustainability, it is the Global Climate Strike that drew participation of many thousands of young people, with 2,500 events scheduled in over 150 countries. In New York City, 1.1 million public school students were excused from school to join the strike in an event planned to precede the UN Summit, which itself was intended to push countries toward a commitment to faster transition to renewable energy and stricter climate targets. While both policymakers and citizens of previous generations have been split on their willingness to address global climate change with urgency, younger generations are feeling a stronger sense of responsibility for curbing the world’s trajectory towards a climate catastrophe, which will be inherited by them and their children. This has manifested in action that promotes awareness of and political action with respect to these issues—such as the Global Climate Strike—as well as evolving habits and preferences in both consumer goods and real estate.
Greener Space
In recent years, real estate developers have recognized that there is a market for “greener” developments that reduce annual expenditures on buildings, whether it be through small spaces requiring less electricity and promoting energy efficiency, or through renewable energy options such as solar photovoltaic power. Some real estate developers have chosen to install these options themselves, while others seek out sustainable financing options to cover the costs of renewable energy. If installing renewable energy is too costly, real estate developers will seek out more cost-effective locations for their brick-and-mortar operations.
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Stephanie Amaru, PillsburyMs. Amaru may be contacted at
stephanie.amaru@pillsburylaw.com
Fourth Circuit Questions EPA 2020 Clean Water Act 401 Certification Rule Tolling Prohibition
August 10, 2021 —
Karen C. Bennett - Lewis BrisboisLast week, in North Carolina Department of Environmental Quality v. Federal Energy Regulatory Commission, the Fourth Circuit Court of Appeals suggested that Congress did not intend for the states, or tribes, to take final action on Clean Water Act (CWA) Section 401 applications within a year of filing. The opinion conflicts with the Environmental Protection Agency's (EPA) 2020 final rule that sought to limit state and tribal certifying authorities’ ability to delay federal projects through various tolling schemes. 85 Fed. Reg. 42210 (Jul. 13, 2020).
EPA’s rule, codified in existing regulations, states that the CWA imposes a strict one-year deadline for certification decisions, otherwise certification is waived. However, the Fourth Circuit’s view suggests that this waiver is not triggered in cases where the certifying authority has acted on the application, even if it takes longer than a year to make a final certification decision. The court ultimately decided the case on other grounds, leaving a resolution on the statutory interpretation question for another day.
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Karen C. Bennett, Lewis BrisboisMs. Bennett may be contacted at
Karen.Bennett@lewisbrisbois.com
Home Prices in U.S. Rose 0.3% in August From July, FHFA Says
October 28, 2015 —
Prashant Gopal – BloombergU.S. home prices rose in August as low borrowing costs and sustained job growth fueled demand amid a tight inventory of properties on the market.
Prices climbed 0.3 percent on a seasonally adjusted basis from July, the Federal Housing Finance Agency said Thursday in a report from Washington. The average estimate of 16 economists was for a 0.5 percent increase, according to data compiled by Bloomberg. The gain was 5.5 percent from a year earlier.
Values have increased steadily as buyers, bolstered by an improving job market and easing mortgage standards, compete for a limited supply of existing homes. The number of listed properties in August was the second-lowest for that month since 2002, according to the National Association of Realtors.
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Prashant Gopal, Bloomberg
Back to Basics – Differing Site Conditions
December 19, 2018 —
Tracey W. Pruiett - Smith CurrieEncountering an unexpected site condition is one of the more common risks on a construction project. A “differing site condition”, or it is sometimes called a “changed condition”, is generally understood to be a physical condition that is discovered while performing work and that was not visible or otherwise expected at the time of bidding. Often, the condition could not have been discovered by a reasonable site investigation. Examples of common differing site conditions include: soil with inadequate bearing capacity to support the building being constructed, soil that cannot be reused as structural fill, unanticipated groundwater, quicksand, mud, rock formations, or other artificial subsurface obstructions. Differing site conditions may also occur within the walls or ceilings of a renovation project such as the renovation of a hospital or historic building.
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Tracey W. Pruiett, Smith CurrieMs. Pruiett may be contacted at
twpruiett@smithcurrie.com
Basement Foundation Systems’ Getting an Overhaul
October 22, 2014 —
Beverley BevenFlorez-CDJ STAFFBuilder reported that “[a] new game-changing system, recently recognized for its energy-efficient composite approach to basement construction, soon could change how American builders construct foundations.” Epitome composite foundation walls from Composite Panel Systems (CPS) “was awarded the Composites and Advanced Materials Exposition’s Unsurpassed Innovation Award in Orlando, Fla., on Oct. 14.”
The system “combines integrated stud cavities for mechanicals, insulation, the top plate, and a vapor barrier in a single step.” It has been approved for use in Wisconsin, and is expected to receive International Building code and International Residential Code compliance later this year.
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Who Will Pay for San Francisco's $750 Million Tilting Tower?
February 02, 2017 —
James Tarmy & Kartikay Mehrotra – BloombergNina Agabian, a retired director of research in global health science at the University of California, bought a 29th-floor apartment in San Francisco’s Millennium Tower in 2010. “It was supposed to be a wonderful building,” she said in January, sitting in a leather chair in the building’s vast, low-lit, owner's-club level. “For many of us, who left our business lives to start our older years, this had become a nice, comfortable place.”
The building, which opened in 2008 and was touted as the most luxurious tower in San Francisco, became a beacon of the city’s burgeoning wealth, attracting tech millionaires, venture capitalists, and even the San Francisco 49ers retired quarterback Joe Montana.
The 58-story tower's shine faded on May 10, 2016, when Agabian attended a homeowners association meeting and was informed that the building had sunk 16 inches into the earth and tilted over 15 inches at its tip and 2 inches at the base, according to suits filed by residents and the city of San Francisco. “You can imagine how distressed we were to know that, for one, our lifetime investment and savings are at risk,” she said. “And we have no idea whether or not there’s a fix to it, and if there is a fix to it, what it will entail.”
Reprinted courtesy of
James Tarmy, Bloomberg and
Kartikay Mehrotra, Bloomberg
Mr. Tarmy may be followed on Twitter @jstarmy
Mr. Mehrotra may be followed on Twitter @kartikaym
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New Addition To New Jersey Court Rules Impacts More Than Trial Practice
November 16, 2020 —
Thomas Regan & Karley Kamaris - Lewis Brisbois NewsroomOn September 1, 2020, New Jersey adopted a brand-new rule of procedure, Rule 4:25-8, which properly defines motions in limine. On its face, the new rule prohibits, broadly, filing motions in limine that may have a dispositive effect on the case. Most notably, the rule expressly eliminates the ability to move, on motion in limine, to bar expert testimony in matters in which such experts are required to sustain a party’s burden of proof. This effectively makes the summary judgment phase of litigation the last chance to bar experts from a jury trial or take any other dispositive action
The new rule comes at a time in which the evidentiary standard for experts is shifting in New Jersey. In October 2018, the New Jersey Supreme Court reconciled the framework for analyzing the reliability of expert testimony under N.J.R.E. 702 and 703 in In re: Accutane Litigation. Significantly, New Jersey, a traditional Frye jurisdiction, incorporated certain federal Daubert factors for expert “use by our courts” but, overall, fell short of adopting the Daubert standard as a whole. In applying the relevant Daubert factors, the trial court in Accutane held that the subject experts’ methodologies were unsound due to the failure to apply fundamentals of the scientific method of the medical-evidence hierarchy. The decision resulted in the dismissal of over 3,000 claims.
Reprinted courtesy of
Thomas Regan, Lewis Brisbois and
Karley Kamaris, Lewis Brisbois
Mr. Regan may be contacted at Thomas.Regan@lewisbrisbois.com
Ms. Kamaris may be contacted at Karley.Kamaris@lewisbrisbois.com
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Public Projects in the Pandemic Pandemonium
September 07, 2020 —
Ashlynn E. Hutton, Michael J. Crook & Christian F. Torgrimson - Construction ExecutiveDespite the ongoing pandemic, states are opening up for business and establishing a new normal. This determination to move forward includes pushing public transportation projects full steam ahead. While this may be good news for certain industries, it may not be for commercial property owners hoping to see a slow down to public projects and avoid a taking of private property. As many grapple with new economic realities, we examine the approaches employed by states in the southeast to manage construction of public projects in this unprecedented time.
GEORGIA
The Georgia Department of Transportation (GDOT) is moving forward with all of its previously funded public projects, including the massive I-285 Top-End Project, designated as a “Major Mobility Project” for the Atlanta metro region. Affecting approximately 260 property owners along I-285 and Georgia Highway 400, environmental review of the project continues. GDOT anticipates a contract let date in 2022 and construction start in 2023. Like ocean liners, these projects don’t turn on a dime. Under the 2015 Transportation Funding Act, the budgeted funds cannot be shifted to other needs or projects due to economic shutdown. Once environmental review is complete, GDOT will approve the final design and move toward acquiring right-of-way from affected property owners.
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Ashlynn E. Hutton, Michael J. Crook & Christian F. Torgrimson, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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