President Trump’s Infrastructure Plan Requires a Viable Statutory Framework (PPP Statutes)[i]
April 13, 2017 —
John P. Ahlers - Ahlers & Cressman PLLCAlthough we live in a politically-divided nation, there is one issue on which there seems widespread agreement: our country requires a massive upgrade to its infrastructure. Rundown airports, crumbling highways, obsolete ports, and dangerous bridges are now endemic across the United States. By contrast, Asian airports and elegant European bridges and rails show that our country needs an upgrade, the cost of which will be enormous.
President Trump promised to revitalize America’s aging roads, bridges, railways, and airports. He chose Wilbur Ross for Commerce Secretary and professor of Conservative Economics and Public Policy, Peter Navarro, to formulate an infrastructure plan. Navarro and Ross recommended that the government allocate $137 billion in tax credits for private investors who underwrite infrastructure projects. They estimate that over the next ten years, the credits could spur $1 trillion in investments. That is how much President Trump promised to spend on infrastructure, a key part of his job-creation plan.
His plan involves building the infrastructure with private-money financing. Public Private Partnerships (“PPP”) are not a new concept and have been successful in Canada, Europe, and various U.S. states who have pioneered this method of procurement. Federal tax credits have been used to spur private investment in housing, resulting in tens of thousands of low-income housing developments over the years. The credits are sold to private entities such as banks and equity firms that invest anywhere from $.70 to $1.10 in housing developments for every dollar they receive in credits, a ratio that fluctuates with economic conditions.
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John P. Ahlers, Ahlers & Cressman PLLCMr. Ahlers may be contacted at
jahlers@ac-lawyers.com
The Looming Housing Crisis and Limited Government Relief—An Examination of the CDC Eviction Moratorium Two Months In
December 14, 2020 —
Zachary Kessler - Gravel2GavelMonths after the Centers for Disease Control and Prevention (CDC) issued a nationwide eviction moratorium using its emergency pandemic powers under the Public Health Service Act, the efficacy of this unprecedented measure remains unclear. While the Order ostensibly protects tenants facing homelessness or housing insecurity due to the financial impacts of the COVID-19 pandemic through the end of 2020, legal challenges have been initiated in Ohio and Georgia, with additional lawsuits appearing likely. Further, even barring legal challenges, courts have not handled these cases in a uniform manner. With lawmakers unable to reach any stimulus or COVID-19 relief agreement before the election, the CDC Order appears likely to remain the only federal eviction moratorium through its expiration on December 31, 2020.
Since the Order’s enactment, the CDC has since released new guidance, answering some of the open questions not covered by the initial Order. This guidance, while non-binding, is largely more favorable to landlords and property management companies than the initial text of the Order, as it provides that landlords are not required to make tenants aware of the Order’s protections and may challenge the truthfulness of the tenants’ declarations in any state or municipal court. The guidance also clarified the potential criminal penalties for violating the Order and the criminal penalties for perjury for bad faith submissions of the requisite declaration by tenants.
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Zachary Kessler, PillsburyMr. Kessler may be contacted at
zachary.kessler@pillsburylaw.com
Construction Defect Claim over LAX Runways
October 22, 2013 —
CDJ STAFFThe city of Los Angeles is claiming that problems with the south runway at Los Angeles International Airport are due to construction defects. The city as filed a lawsuit against four of the firms involved in building the runway, CH2M Hill, R&L Brosamer, HNTB, and Tutor-Saliba Corp. The lawsuit also includes the possibility of naming up to 200 individuals or corporations.
The suit alleges that the firms incorrectly installed the concrete, leading to accelerated wear. As a result, renovation of the runway will likely have to be done earlier than anticipated. The runway was opened in 2007 as part of a safety improvement effort.
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City of Birmingham Countersues Contractor for Incomplete Work
March 12, 2014 —
Beverley BevenFlorez-CDJ STAFFBack in December of 2013, WVTM News reported that Chris Woods, a contractor, filed a lawsuit against the City of Birmingham, Alabama, demanding $1.5 million for the West Police Precinct and two other projects he had been contracted on. However, “Birmingham claimed Woods was fired for not completing projects on time and other contract breaches.”
On March 7th, WVTM News reported that the City of Birmingham has filed a counterclaim against Woods, alleging that he “owes $1.2 million for incomplete work.” The city listed his “inability to meet specific construction deadlines and finish either project on time as factors for his termination.” Woods, however, blamed the city for delays, citing multiple design changes requested by Birmingham.
The city’s counterclaim also alleged that “Star Insurance Company, ‘identified major, numerous defects in the work that Woods had performed prior to the termination of the West Precinct Project.’”
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Is Modular Construction Destined to Fail?
March 11, 2024 —
Aarni Heiskanen - AEC BusinessThe construction sector is a harsh environment for innovation. I’ve been following the story of one Finnish innovative contractor, Lehto Group, over the years with enthusiasm. I was saddened to hear that the group’s three significant subsidiaries joined the ranks of many Finnish contractors who have filed for bankruptcy over the last six months.
Lehto developed industrialized building concepts and had its own production facilities. The company had a promising start but eventually ran into problems. Was the industrial approach a mistake, or were other factors contributing to the firm’s fall?
Three Contributing Factors
Lehto Group’s collapse was not a surprise to its competitors, who had observed warning signs years prior. The company’s order book plummeted in 2024 despite still employing around 500 workers. Rakennuslehti, the leading construction magazine in Finland, asked three experienced industry professionals to give their views on Lehto’s failure. The interviewees spoke anonymously due to the small size of the Finnish market and the sensitive nature of commenting on a competitor’s matters.
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Aarni Heiskanen, AEC BusinessMr. Heiskanen may be contacted at
aec-business@aepartners.fi
A Court-Side Seat: Butterflies, Salt Marshes and Methane All Around
November 16, 2020 —
Anthony B. Cavender - Gravel2GavelOur latest summary of some recent developments in the courts and the federal agencies includes a unique case involving salt marshes adjacent to San Francisco Bay.
THE FEDERAL COURTS
A Wolf Among the Butterflies
On October 13, 2020, the U.S. Court of Appeals for the District of Columbia Circuit decided the case of North American Butterfly Association v. Chad Wolf, Acting Secretary of the Department of Homeland Security. The National Butterfly Center is a 100-acre wildlife sanctuary located in Texas along the border between the United States and Mexico, and in 2017, the DHS exerted control over a segment of the sanctuary to construct facilities to impede unauthorized entry into the United States. It was alleged that the government failed to provide advance notice to the sanctuary before it entered the sanctuary to build its facilities. The Association filed a lawsuit to halt these actions for several reasons, including constitutional claims and two federal environmental laws (NEPA and the Endangered Species Act), but the lower court dismissed the lawsuit because of the provisions of the Illegal Immigration Reform and Immigrant Responsibility Act of 1996 (IIRIRA). That law forecloses the applicability of these laws if the Secretary of DHS issues appropriate declaration. On appeal, the DC Circuit held, in a 2 to 1 decision, that the lawsuit should not have been dismissed. The plaintiffs had standing to file this lawsuit, but the jurisdiction stripping provisions of the IIRIRA, when invoked, required that the statutory claims be dismissed as well as a constitutional Fourth Amendment search and seizure claim. However, the plaintiff’s Fifth Amendment claim that the government’s actions violated their right to procedural due process must be reviewed. The Center was given no notice of the government’s claims and no opportunity to be heard before these actions were taken. The dissenting judge argued that the court was being asked to review a non-final decision, which it should not do.
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Anthony B. Cavender, PillsburyMr. Cavender may be contacted at
anthony.cavender@pillsburylaw.com
DIR Reminds Public Works Contractors to Renew Registrations Before January 1, 2016 to Avoid Hefty Penalty
December 17, 2015 —
Garret Murai – California Construction Law BlogI know.
You’re busy.
Perhaps even a bit overwhelmed.
You’ve got trees to trim, halls to deck with boughs of holly, and when you throw in (the office, your kids’ school, and the bowling league’s) holiday parties, you’re at the point where you’ve got visions of sugar plums (although it may vary) dancing through your head.
Well, the DIR has come to give you its own yuletide greeting.
Think of it as a Christmas card of sorts.
Merry Christmas.
The Department of Industrial Relations (DIR) announced today that a mandatory renewal deadline is approaching for contractors who bid or work on public works projects in California. Contractors whose public works contractor registration expired June 30, 2015, and have ongoing public works projects or plan to bid on new ones, must pay the $300 renewal fee before January 1, 2016 or face an additional
$2,000 late penalty after that date.
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Garret Murai, Wendel Rosen Black & Dean LLPMr. Murai may be contacted at
gmurai@wendel.com
Five Facts About Housing That Will Make People In New York City and San Francisco Depressed
February 26, 2015 —
Flavia Krause-Jackson and Alexandre Tanzi – BloombergIf you live in New York or San Francisco, you should spend some time mining the latest crop of home price data -- starting with the Standard & Poor’s Case-Shiller indices. Then, pull out your last rent check. It might be enough to make you move.
Here are a few things to get you thinking:
1. What you pay for parking in New York can buy a cheap home in Chicago
The cheapest tier of homes in the Windy City were valued at less than $170,368 in November, the Case-Shiller tiered-price indices show (there are three tiers: low, middle and high). That compares to the $136,052 average price tag for parking space in New York last year, according to Jonathan J. Miller, the president of the appraisal firm Miller Samuel and a Bloomberg View contributor.
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Flavia Krause-Jackson, Bloomberg and
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