Gravel2Gavel Construction & Real Estate Law Blog
In New Jersey, local mandates and regulations regarding COVID-19 are prohibited by New Jersey Executive Order No. 108. This represents a significant diversion from other states badly hit by COVID-19, including New York and California. In “New Jersey State and Local COVID-19 Orders,” colleagues Brian E. Finch, Margaret Beale-Wirsing and Michelle A. Herrera address that companies doing business in New Jersey should reference the State’s uniform response to COVID-19 and be aware that the uniform response may have a disparate impact on different geographical regions.
Articles Posted in Real Estate
Pillsbury Industry Insights: Hotels & Hospitality
Posted
Please join us April 7, 2020, for an Industry Insights webinar series designed to help clients spot issues, mitigate risk and navigate challenges specific to their industry.
During this webinar Christian Salaman, David Klein and Paul Shapses will discuss the hotel and hospitality industry with a focus on helping hotel owners and operators, and developers and lenders address ongoing developments pertaining to the COVID-19 (Coronavirus) pandemic.
This 45-minute conversation will cover:
- Short- and long-term approaches to consider for dealing with low occupancy and declining operating revenue
- Financial issues specific to industry loans
- Insurance coverage in the context of the hotel & hospitality industry
- Insurance-related litigation outlook
- Q&A
New York Shuts Down Majority of Construction
Posted
Due to pressure from construction workers, officials, and some construction workers having tested positive for COVID-19, the Empire State Development Corp. (acting on behalf of Governor Cuomo) has frozen all construction in New York today, with the exception of work on hospitals and health care facilities, transit facilities, roads and bridges, affordable housing and homeless shelters.
As a result, commercial construction and condominium projects are on hold, with the exception of work that must be completed to prevent unsafe conditions. Until now, construction has been considered “essential” in New York.
Naturally, this will cause delays and have financial impacts on owners and contractors alike. Contractors will need to secure their sites, document additional costs incurred, and determine the rights they have with regard to payment, delays, and suspension of work in accordance with their contracts. Contractors are also likely to face claims from downstream subcontractors. Owners will have to also review their contractual rights, particularly with regard to suspensions and the circumstances under which the owner may suspend without an increase in the contract sum. Owners in most cases will suffer a loss of revenue and increased interest and soft costs as a result of the suspension, and should look for sources to recover those losses, including business interruption or civil authority insurance coverage.
We are monitoring for further developments, and will be posting more information on this and other similar suspensions and how owners and contractors can protect themselves, shortly.
Wyoming Governor Signs Law Allowing Retiring Fossil Plants to Be Replaced with Small Modular Nuclear Reactors
Posted
On March 13, 2020, Wyoming Governor Mark Gordon signed House Bill 74 (HB 74) into law. After the Governor signed HB 74, it became House Enrolled Act 60. HEA 60 allows utilities and other power plant owners to replace retiring coal and natural gas electric generation plants with small modular nuclear reactors (SMRs).
No Sales or Use Tax Due on Materials and Equipment Used to Construct and Install Steam Facility at Tennessee Manufacturing Plant
Posted
In a letter ruling published March 16, 2020, the Tennessee Department of Revenue concluded that a contractor’s purchase of materials and equipment for use in the construction and installation of a new steam production facility at a federally owned manufacturing plant was exempt from Tennessee sales and use tax. Tenn. Letter Rul. No. 20-02 (issued Feb. 10, 2020).
COVID-19 and Public Companies: Q&A
Posted
The SEC has provided conditional regulatory relief regarding filing deadlines and has issued guidance regarding annual meetings to assist public companies impacted by COVID-19. In “COVID-19: Q&A for Public Companies,” colleagues Davina K. Kaile, Gabriella A. Lombardi, Christina F. Pearson and Stanton D. Wong addresses some of the most frequently asked questions of public companies on how to navigate the challenges posed by COVID-19.
COVID-19’s Effects on California Executive Power and Industrial Facilities
Posted
California Governor Gavin Newsom has declared a state of emergency and, pursuant to his broad authority under the California Emergency Services Act and other statutory provisions, has issued Executive Orders suspending or modifying the effect of certain state statutes and regulation in response to COVID-19, and authorizing the commandeering of property needed for the response. In “California Executive Power and Industrial Facilities in the Wake of COVID-19,” colleagues Michael S. McDonough and Christopher W. Smith provide an overview of the recent updates and rulings on California’s facilities and operations.
California State and Local COVID-19 Orders
Posted
In California, localities led the way with mandates, but the governor’s Executive Order has left confusion in its wake on the extent to which local rules are preempted. In “California State and Local COVID-19 Orders,” colleagues Robert A. James, Brian E. Finch, Callie A. Bjurstrom and Amanda G. Halter provide an overview of the recent updates and rulings.
Pausing New York State: Shutting Down All Nonessential Businesses to Combat COVID-19
Posted
On Saturday, March 21, 2020, New York Governor Andrew Cuomo issued Executive Order No. 202.8 (EO 202.8) requiring all nonessential employees to stay home, effective at 8 p.m. Sunday, March 22, 2020, through April 19, 2020. Any business not in compliance with the order is subject to civil fines and mandatory closures. There will also be restrictions placed on civilians, though specific enforcement measures for those provisions have not been specified. Colleagues Brian E. Finch and Amanda G. Halter summarize the terms under EO 202.8 in the alert “New York State on PAUSE: New York State Shuts Down All Nonessential Businesses to Combat COVID-19.”
How to Build a Coronavirus Hospital in Ten Days
Posted
If the coronavirus pandemic continues to spread in the United States as it has in other countries, drastic expansions of hospital and quarantine facility capacity are likely to be necessary. In the hard-hit Seattle area, several temporary facilities are already under construction, including a 200-bed temporary quarantine and isolation center built on a soccer field. China’s response to the initial outbreak in the city of Wuhan demonstrates how rapidly authorities can add capacity in an emergency.