Projects Leigh Kellett Fletcher, Esquire Or When is this Abandoned - PowerPoint PPT Presentation

Legal Strategies And Considerations For Distressed And Foreclosed Projects Leigh Kellett Fletcher, Esquire

Or… When is this Abandoned Project a Good Deal, Legally Speaking?

ANY ANY TOWN CENTE TOWN CENTER R - A MIXE A MIXED D USE USE PR PROJECT OJECT  Any Town Center:  500,000 sq. ft. retail (2 story mall and strip)  32,000 sq. ft. office  80,000 sq. ft. movie theater  264 residential dwelling units  Site Information: 40 acre redevelopment site at intersection of 2 major roads; part of an existing DRI. Wetlands onsite.

The Fundamentals  Property Disposition/Acquisition  Pre- or Post Foreclosure?  Pre Foreclosure – You take subject to pre-existing debt  Post Foreclosure – you get the rights that were foreclosed  Deed-in-Lieu – you get the rights transferred via deed  In Receivership?  Owner In Bankruptcy?  Tax Deeds

Legal Issues Related to Entitlements, Permitting and CDDs Survey & Title Due Diligence Considerations for distressed and foreclosed property:  Control of Land/ Access to Property  Code Enforcement/Liens  Status of Debt/ Level of Completion of Project  Competing Claims /Variations in Legal Descriptions

Legal Issues Related to Entitlements, Permitting and CDDs Permitting Due Diligence Considerations for distressed and foreclosed property:  Status and control of Comprehensive Plan Designation, Zoning and Development Approvals  Status and control of Environmental Permits  Ability to Satisfy Offsite Mitigation Requirements  Status of Concurrency  Environmental Condition  Remediation Costs (If Required and Incomplete)

Legal Issues Related to Entitlements, Permitting and CDDs CDD Due Diligence Considerations for distressed and foreclosed property:  Status of Outstanding Debt & Assessments  Scope of Improvement Plan (Unfunded improvements?)  Control of Board of Supervisors  If Stepping into Developer Shoes – are there funding agreements in place?  Does Improvement plan contemplate donation of any lands?

Legal Issues Related to Entitlements, Permitting and CDDs Environmental and Site Condition Due Diligence Considerations  Permit Compliance/ Control of Permits / Timeframes / Expiration & Ability to Renew  CERCLA Liability  Restoration Obligations  Control of Environmental Preserve Lands (Funding Obligations)

Receivership When can a Receiver Be Appointed? What does a Receiver Do?