The Wendel Report: Real Estate, Fall 2008

Articles

• "Entitlement or Bust: Issues to Consider for Owners of Property with Development Potential" by Daniel B. Myers
  Do you have property with development potential, but no experience in obtaining the entitlements necessary to allow development? A common solution is a “development” deal between the landowner and a developer – the developer wants to buy the land for a project; the owner wants to sell at a price that includes the land valued at its full development potential. This article outlines several key issues in negotiating such agreements.>> read more
  
  
• "Negotiating Selected Ground Lease Provisions" by Mike Dean
  This Article is Part III of a three part series on commercial ground leases. Part I of this series (The Wendel Report, Spring 2007) noted that commercial ground leases differ substantially from other types of commercial leases (such as leases for space in office buildings and retail centers). Part II of the series (The Wendel Report, Winter 2008) summarized the ground lease provisions that are essential to permit the tenant to obtain leasehold financing. This article discusses some of the differences between certain selected provisions found in both ground >> read more
  
  
• "Green Building and Climate Change" by Aleka Skouras Eisentraut and C.Gregg Ankenman
  Nationwide, existing buildings account for approximately 40% of greenhouse gas emissions, use 70% of our electricity, 40% of our raw materials, 12% of our potable water, and contribute to 30% of the waste stream. Given these facts, state and local agencies are increasingly focused on improving the efficiency of existing commercial buildings as a means of achieving the 30% reduction in greenhouse gas emissions by 2020 mandated by Assembly Bill (AB) 32 (the California Global Warming Solutions Act of 2006). [This article was also published as "It's Easier Being Green" in The Registry, August/September 2008.]
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• "Guarantor Liability - A Litigation Perspective" by Carl D. Ciochon
  As the real estate market continues its downward turn and lenders find themselves increasingly undersecured, the issue of guarantor liability grows ever more relevant. This article summarizes basic principles of California law governing guaranties in the context of real estate secured transactions and answers three common questions concerning guarantor liability. >> read more
  
  

CA Legislative Updates

• Abandoned Commercial Property
  AB 2025, which revises the process by which abandoned property left behind in a commercial setting is disposed, has been signed by Governor Schwarzenegger. Current law provides a process for a building owner to hold a public auction to dispose of abandoned property deemed to be worth more than $300 and treats residential personal property in the same manner as non-residential commercial property, even though the residential setting is very different from the business setting and has very different scenarios under which property is left behind. Once this new law becomes effective in January 2009, the threshold to trigger a public auction in the commercial setting will be the lesser of $750 or one dollar per square foot of the leased space.
  
  
• Solar Financing Expansion
  Governor Schwarzenegger has signed AB 811, which authorizes all cities and counties in California to designate areas within which city officials and willing property owners may enter into contractual assessments to finance the installation of distributed generation renewable energy sources and energy efficiency improvements. This measure will provide another funding option for cities to assist property owners who need help with the large upfront costs of solar investments.
  
  
• Building Permit Streamline
  Recently signed into law, AB 2335 combines three separate statutory provisions concerning forms, declarations, and notices to property owners relating to the issuance of building permits into a single provision that combines and modifies the existing ones. Sponsored by California Building Officials and the Contractor State License Board, the law streamlines a process that was unnecessarily duplicative and confusing to the property owner and issuing jurisdiction alike.