Commercial Real Estate

Credit: Valentin Brajon

Later this summer, the Environmental Protection Agency (“EPA”) will institute more stringent, recalibrated Energy Star certification metrics in an attempt to reflect current market conditions. As a result of this recalibration, Energy Star scores are expected to drop an average of 10 points for office buildings and 16 points for retail buildings.

If maintaining your current Energy Star score is a priority, the EPA recommends that you apply for your building’s 2018 Energy Star certification no later than July 26, 2018. To accommodate as many applications as possible before the more stringent metrics kick in, the EPA will not enforce its typical 11-month waiting period between applications during this application cycle.  As a result, all buildings that earned a 2017 Energy Star certification will be eligible to earn a 2018 Energy Star certification before the deadline this summer.  Applications submitted after July 26, 2018 may be evaluated with the updated metrics, especially if extensive follow-up is required, and applications submitted after August 26, 2018 will definitely be evaluated with the recalibrated metrics.

For more information about Energy Star and this summer’s updates, please visit https://www.energystar.gov.

Resolute’s proposed self-storage facility is shown in the graphic above. Source: Resolute Investments.

In May, the Colorado Court of Appeals upheld the City of Thornton’s approval of a specific use permit for a self-storage facility against a challenge brought by a competitor self-storage facility.  While the court’s decision in Stor-N-Lock Partners #15, L.L.C. v. City of Thornton was a victory for the defendants, including the city and the developer, the court ruled that defendants in Rule 106(a)(4) actions may not recover delay-induced damages through the imposition of a bond.  Otten Johnson attorneys Brian Connolly and Bill Kyriagis represented the defendant landowner and developer, CenturyLink and Resolute Investments, Inc., respectively, throughout the proceedings.

In the case, Resolute obtained the city’s approval of a specific use permit for its project.  A neighboring self-storage facility challenged the approval under Colorado Rules of Civil Procedure Rule 106(a)(4), which allows for judicial review of quasi-judicial decisions by local government bodies.  The plaintiff alleged that the approval of the specific use permit did not improve the welfare of its property, which was one of the Thornton code’s criteria for the issuance of a specific use permit.  The district court affirmed the city’s decision but denied the defendant’s motion to require the plaintiff to post security in an amount that would cover the defendant’s losses incurred as a result of litigation-related delays.  Continue Reading Colorado Court of Appeals: Court Should Defer to City Council’s Code Interpretations, But No Bond for Rule 106 Defendants

We’ll start in Boulder and with commercial development. In February, the Boulder City Council directed city staff to draft an ordinance that would raise the city’s affordable housing linkage fee on new commercial development from $12 per square foot to $25, $30, or $35 per square foot.  Boulder’s current $12 linkage fee is the highest such fee of any city in the country between the two coasts, with Palo Alto the highest in the country at $35.  Even so, City Council members expressed that the current fee is still low enough vis-a-vis fees on residential development to incentivize commercial development over residential development. And more commercial development without new housing only exacerbates the city’s acute jobs-housing disequilibrium.  Continue Reading Boulder County Municipalities Look to Double Affordable Housing Linkage Fees

 

Last week the U.S. House of Representatives passed a bill that seeks to delineate what causes a commercial real estate loan to be classified as a “high volatility commercial real estate loan,” or, as it’s more commonly referred to, as a “HVCRE loan.”  Since the rule regarding HVCRE loans was promulgated, there’s been much debate and confusion around that fundamental question.  A synopsis of HVCRE loans and the implications of HVCRE classification can be found here. Continue Reading House Passes Bill to Clarify HVCRE Rule

Last week, Denver voters received their ballots for the November 7 municipal election.  In addition to considering a $937 million bond issuance and a Denver Public Schools Board election that has garnered national attention, Denver voters will decide whether to mandate the construction of “green roofs” on large buildings throughout the city.  The proposed ordinance would apply to all new construction and every “roof replacement” on buildings of 25,000 square feet or more beginning in January 2018. Continue Reading Denver Voters to Decide Fate of Green Roof Initiative in Upcoming Election