Seattle Washington Building Expert Directory

Philadelphia Revises Realty Transfer Tax Treatment of Acquired Real Estate Companies

January 05, 2017 — Nancy Frantz, Kevin Koscil & James Vandermark – White and Williams LLP
On December 8, 2016, the Philadelphia City Council voted unanimously to amend the ordinance governing realty transfer taxes in an effort to increase tax revenue. The current combined realty transfer tax rate in Philadelphia is 4.0% and will increase to 4.1% after December 31, 2016.[1] The amendment significantly impacts how taxes are imposed upon transfers of ownership in so-called “real estate companies” and effectively eliminates deals commonly referred to as 89-11 transactions. The amendment mainly focuses on transfers of real estate companies, rather than direct transfers of real estate, but it also affects certain direct transfers of real estate in exchange for noncash consideration. Reprinted courtesy of White and Williams LLP Nancy Frantz, Kevin Koscil and James Vandermark Ms. Frantz may be contacted at frantzn@whiteandwilliams.com Mr. Koscil may be contacted at koscilk@whiteandwilliams.com Mr. Vandermark may be contacted at vandermarkj@whiteandwilliams.com Read the court decision
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New York's New Gateway: The Overhaul of John F. Kennedy International Airport

September 09, 2024 — Aileen Cho - Engineering News-Record
On the cusp of the 70th anniversary of the originally named New York Airport’s opening in Queens, N.Y., a blue-ribbon panel in 2017 released a report to the governor of New York: The facility, once popularly known as Idlewild Airport, needed a comprehensive master plan and a total transformation. In the seven years since, builders at John F. Kennedy International Airport have been anything but idle, and the speed at which that $19-billion transformation of the roads and terminals is occurring could be called wild. Reprinted courtesy of Aileen Cho, Engineering News-Record Ms. Cho may be contacted at choa@enr.com Read the full story... Read the court decision
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California Mechanics’ Lien Case Treads Both Old and New Ground

July 27, 2020 — Garret Murai - California Construction Law Blog
People do the darnedest things. The next case, Carmel Development Company v. Anderson, Case No. H041005, 6th District Court of Appeals (April 30, 2020), involving a 10-plus year oral design and construction contract, inconsistent accounting practices, two mechanics liens, and side-agreements, takes us down some well traveled paths but also covers some new ground. Carmel Development Company v. Anderson Carmel Development Company, Inc. provided design and construction services at a luxury subdivision known as Monterra Ranch located in Monterey under an oral contract with developer Monterra LLC which spanned over more than a decade. Between 1996 and 2008, Carmel was involved in the infrastructure design and construction of the subdivision including lot design and layout, the location of building envelopes on each lot, water and sewage system layout and design, and roadway design, construction and repair. When roughly half of the lots were developed and sold Monterra ran out of money and Carmel sued. Read the court decision
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Reprinted courtesy of Garret Murai, Nomos LLP
Mr. Murai may be contacted at gmurai@nomosllp.com

Mexico City Metro Collapse Kills 24 After Neighbors’ Warnings

May 17, 2021 — Max De Haldevang & Maya Averbuch - Bloomberg
The collapse of a long-troubled Mexico City metro track killed 24 people and put two of President Andres Manuel Lopez Obrador’s top allies in the line of fire Monday night, after a decade of safety concerns and probes surrounding the project. About 79 people were injured, Mayor Claudia Sheinbaum said Tuesday. A broken beam led to the incident on the Golden Line of the metro system, she said. An international agency and the attorney general’s office will investigate. Reprinted courtesy of Max De Haldevang, Bloomberg and Maya Averbuch, Bloomberg Read the court decision
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San Diego: Compromise Reached in Fee Increases for Affordable Housing

October 01, 2014 — Beverley BevenFlorez-CDJ STAFF
A San Diego City Council committee has forwarded a revised plan to increase affordable housing in the city, which reduces the linkage fees increases, reported the U-T San Diego. The first proposal would have increased linkage fees by five times, while this new plan doubles current fees. The Times of San Diego reported that “[t]he fee had been halved in 1996 as an economic stimulus and was supposed to be reviewed annually, but wasn't.” However, Andrea Tevlin, the city of San Diego’s Independent Budget Analyst, estimated that “costs on developers would have jumped 400 percent to more than 700 percent, depending on the type of project.” The new proposal also contains exemptions for “developers of manufacturing facilities, warehouses and nonprofit hospitals from paying any fees at all,” according to U-T San Diego. “Developers of research and science-related projects would still have to pay fees, but they would be exempt from the proposed increase.” However, not everyone is satisfied by the compromise. “While the November 2013 proposal went too far, this new proposal doesn’t go far enough,” Tevlin told U-T San Diego. The vote had been deadlocked, 2-2, but will be forwarded to the main council because Republican Lori Zapf, committee chair, could break the tie. The new plan “created jointly by the San Diego Housing Commission and a group of business leaders called the Jobs Coalition, would increase the linkage fees’ annual yield from $2.2 million to an estimated $3.7 million and allow construction of 37 affordable housing units per year instead of 22,” U-T San Diego reported. Read the full story, U-T San Diego... Read the full story, Times of San Diego... Read the court decision
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Margins May Shrink for Home Builders

November 06, 2013 — CDJ STAFF
Home builders are worried that the rising prices of new homes might not rise enough and be caught by the rising costs of building them, cutting into the profit margin. “If builders say the trajectory of margins is beginning to peak, then in a cyclical business, people tend to go from thinking the best to thinking the worst,” Stephen Kim, a Barclays analyst told the Wall Street Journal. As of the end of October, the U.S. Home Construction Index was 21% below its highest point in 2013, set back in May. Margins are still over those of last year. Meritage Homes saw a gross margin of 22.8% in 2013’s third quarter, when the same quarter in 2012 had a gross margin of 18.6%. Steven Hilton, the firm’s Chairman and CEO, predicted little or no growth and a decline toward 20% or 21%. On the other hand, with margins at 20.6%, Ryland Homes sees itself at a normal point. Larry Nicholson, the President and CEO of Ryland, said “there’s not a lot of room for it to grow.” Read the court decision
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When is a “Notice of Completion” on a California Private Works Construction Project Valid? Why Does It Matter for My Collection Rights?

January 27, 2020 — William L. Porter - Porter Law Group
What is a Notice of Completion? A “notice of completion” is a document recorded by the owner of property where construction work was performed. Specifically, it is recorded at the Office of the County Recorder in the County where the work was performed. The notice of completion tells the world at large that the construction project is complete. It also triggers the deadlines for those who have not been paid to make their claims for payment. Is an Owner of a California Private Works Project Required to Record a Notice of Completion? No, there is no requirement that an owner of a California private works construction project record a Notice of Completion. However, there are consequences which depend on whether an Owner elects to record the notice or not. For My Collection Rights, Why Does it Matter Whether a Notice of Completion Has Been Recorded? The date of recording of a valid notice of completion sets the deadline for those who have not been paid for work performed and materials supplied to a California construction project to pursue such important collection remedies as the “mechanics lien”, the “stop payment notice” and the “payment bond claim.” These are very powerful collection remedies for those who have not been paid. If the deadline to pursue these remedies is missed by a claimant, then the claimant’s right to pursue these remedies is also missed. One of these remedies, the mechanics lien, will enable the claimant to sell the owner’s property where the work was performed in order to get paid. Read the court decision
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Reprinted courtesy of William L. Porter, Porter Law Group
Mr. Porter may be contacted at bporter@porterlaw.com

Ensuing Losses From Faulty Workmanship Must be Covered

May 10, 2012 — Tred R. Eyerly - Insurance Law Hawaii

Coverage for damages resulting from faulty workmanship in the construction of an apartment complex was at issue in The Bartram, LLC v. Landmark Am. Ins. Co., 2012 U.S. Dist. LEXIS 44535 (N.D. Fla. March 30, 2012).

The owner of the apartments, Bartram, had primary coverage and three layers of excess coverage. Each contract excluded loss from faulty workmanship. The policies provided, however, "if loss or damage by a Covered Cause of Loss results, we will pay for that resulting loss or damage."

Bartram contended water intrusion occurred because of faulty workmanship, which caused damage to the buildings’ exterior and interior finishes, wood sheathing, framing, balcony systems, drywall ceilings and stucco walls. This damage was separate from the work needed to simply fix the faulty workmanship. Therefore, Bartram argued, the ensuing losses that resulted from the water intrusion was covered.

The insurer argued the ensuing loss exception was not applicable if the ensuing loss was directly related to the original excluded loss.

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Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii. Mr. Eyerly can be contacted at te@hawaiilawyer.com

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