In May 2010, I wrote a post about the serious consequences that could flow from a developer’s violation of the Interstate Land Sales Full Disclosure Act (“ILSA”).
Recently, the Second Circuit Court of Appeals rejected a purchaser’s claim that a developer’s technical violation of ILSA gave the purchaser the right to rescind their contract. In Bacolitsas v. 86th & 3rd Owner, LLC, 702 F.3d 673 (2d Cir.» Read More
Under the new COAH Fee Moratorium Law enacted on August 24, 2011, there is a two-year moratorium on the 2.5% non-residential COAH fee for eligible construction projects beginning July 2011 and ending July 2013; projects which have or receive preliminary or final site plan approval prior to July of 2013 will be exempt from the 2.5% fee, provided they obtain building permits by December 31, 2014; the moratorium is extended back to the end of the last moratorium (July of 2010), allowing for reimbursement of fees paid in the interim (unless fees have already been spent on an affordable housing project).» Read More
The Star-Ledger reports: Arbitrators awarded property owner Steve Adler $24 million for 10 acres of property near the PATH station and the Red Bull Arena soccer stadium. The developer, Richard Miller of the Hoboken-based Pegasus Group, was helped by the Harrison Redevelopment Agency, which used its power of eminent domain, condemning the property, which would ostensibly allow the developer to acquire the land for less than its actual value. » Read More
NJ Biz reports: Secaucus-based real estate developer Hartz Mountain Industries has filed another lawsuit against the New Jersey Economic Development Authority, appealing the agency’s approval of $102 million in Urban Transit Hub tax credits to Panasonic. The credits would allow Panasonic to relocate from current space in Hartz-owned building for a new building in Newark.
On Wednesday of last week, St. Patrick’s Day, the luck of the Irish was with a commercial tenant who happened to be a defendant in a condemnation action in which the owner’s interest in the property was not being condemned. In Town of Kearny v. Discount City, the New Jersey Supreme Court dismissed a condemnation action filed by the Town of Kearny, because its designated developer, who was also the landlord, failed to engage in bona fide negotiations with the only remaining holdout tenant, even though the lease between the landlord and tenant contained a standard condemnation clause in which it bargained away its right to receive compensation in a taking.» Read More
Some laws and statutes develop a “reputation” over the years as applying only to certain industries or activities only because of the manner in which these laws are regularly applied. This can lull some into a false sense of security that certain laws do not apply to them when, in actuality, they do apply. One of these situations is the application of the Interstate Land Development Act (“ILSA”) to commercial development.» Read More