Parties to public and private construction contracts entered into after August 1, 2019 are subject to new statutory requirements and limitations regarding the withholding and release of retainage, that portion of earned contract funds withheld by the owner from the contractor pending completion of the project. It is important that owners, prime contractors, and subcontractors
US Supreme Court Reinstatement of Constitutional Takings Claim May Not Benefit Landowners
One of the most consequential decisions of the recently concluded term of the U.S. Supreme Court involves the reversal of a 30-year precedent and reinstatement of a landowner’s right to seek redress in federal court for an alleged taking of property without just compensation. The 5-4 majority decision in Knick v. Township of Scott, PA
Inclusionary Zoning Expands its Footprint in Minnesota
Last week the City of Bloomington adopted an expansive “inclusionary zoning” ordinance for the purpose of compelling developers of single and multifamily housing to include a portion of their new housing as affordable based on prescribed income standards. “Inclusionary zoning” refers to a policy that compels developers to include some land use component desired by
Opportunity Zones Attract Attention of Real Estate Investors
Real estate investors across the country are asking how to tap tax benefits for investing in projects in low-income areas, known as “Opportunity Zones” under an obscure provision of the 2017 Tax Act. They may not have to wait much longer – the federal government just released guidance for comment.
Nuts and Bolts
A little
Minnesota Supreme Court Invalidates Transportation Fee
Recently the Minnesota Supreme Court invalidated a municipality’s use of an unauthorized transportation fee to fund projects that are not directly tied to a specific project. It also invalidated a city’s use of a development contract to “negotiate” such an illegal fee into the contract. Minnesota cities have long contended that development contracts are bona
Will Property Owners Finally Be Allowed Immediate Entry Into Federal Court on Regulatory Taking Claims?
For more than 30 years, a property owner who claimed that a regulatory action by the government amounted to a compensable taking under the Fifth Amendment to the U.S. Constitution has been required to litigate the issue in state court first, before being allowed to gain entry to federal court. The 1985 case of Williamson
Tax Bill Update – Private Activity Bonds Spared in New Law
Last month, the House tax bill threatened to eliminate private activity bonds – a financing tool that has been used for years by local governments to fund critical infrastructure, such as educational facilities, hospitals and affordable housing. Municipal bond experts projected that 20 to 25 percent of the bond market would be lost under this
House Tax Bill Targets Private Activity Bonds
An obscure provision of the House tax bill (H.R. 1, Section 3601) threatens to end a financing tool that has been used by local governments for years to fund critical infrastructure such as airports, seaports, hospitals, educational facilities, affordable housing and tollways, to name a few. Private activity bonds, as they are called, are tax-exempt
2017 Tax Reform Bill Would Eliminate Federal Historic Tax Credit Program
One of the current tax code provisions that would be eliminated under the House-proposed tax reform bill is the popular federal Historic Tax Credit program (HTC). The HTC dates back to the Reagan Administration and currently provides a federal tax credit in the amount of 20 percent of qualified rehabilitation expenditures for any certified historic
Cities Cannot Require Payment of Fees for Future Road Improvements
Forgive developer Martin Harstad if he thought he was in Potterville and not Woodbury when the city told him he had to pay nearly $1.4 million in “road assessments” as a condition of approval for his “Bailey Park” residential development. Harstad sued Woodbury to challenge its authority to demand the road assessments and won