The U.S. Department of Housing and Urban Development (HUD) received on Friday, July 19, 2013 responses to a Request for Qualifications (RFQ) for the Rebuild By Design, a multi-phase regional design competition seeking to promote development of resilience concepts for the Superstorm Sandy affected regions. The RFQ seeks proposals from world class teams with expertise in infrastructure engineering, landscape design, urban design, architecture, land use planning, industrial design, communication and other fields. HUD is itself partnering on the program with The Rockefeller Foundation and the National Endowment for the Arts (NEA).
NYCEDC Seeks Expressions of Interest for the Re-Development of up to 100 acres at the Staten Island Teleport
The New York City Economic Development Corporation (EDC) and the Port Authority of New York and New Jersey (Port Authority) have issued a Request for Expressions of Interest (RFEI) for re-development at the Staten Island Industrial Park known as the Teleport. The RFEI will seek ideas from developers to expand or transform the site, or to utilize the site more efficiently. Currently, approximately half of the Teleport is used as a data center and office park, while the remaining half, another 40 acres, is available for development.
A public notice regarding the opportunity was posted at the EDC’s website here. The notice summarized some background and elements of the project as follows:
New Jersey Transit $1.2 Billion FY 2014 Capital Program Proposed
Today, July 11, 2013, the New Jersey Transit Board of Directors will be presented for approval a capital plan for Fiscal Year 2014 in the amount of $1.228 billion. Foremost among the plan’s elements are funds for rolling stock modernization including the procurement of over 1,400 new buses, over 400 multilevel railcars and more than 50 electric and dual power locomotives. The program will also invest in hard assets including railroad bridge rehabilitation, track replacement, signal upgrades to overhead power lines and electric substations, improvements to rail stations and bus shelter upgrades. Included is a $60 million installment of a $600 million 5-year planned investment in improvements to the Northeast Corridor.
Approximately 60%, $741 million, is dedicated to fixed expenses including capital maintenance and prior debt service ($691 million), mandated uses including the federal rural transit program ($46 million), and ongoing support for job programs ($4 million). Approximately 40%, $487 million, is dedicated to fund basic capital program improvements including rail improvements ($132 million), rail rolling stock ($53 million), rail station improvements ($37 million), bus and light rail infrastructure improvements ($195 million) , and system-wide improvements such as technology upgrades ($69 million).
An Owner is Ensnared By a Subguard Program
In a recent appellate decision in New York, a developer sued its construction manager for fraudulent misrepresentation that the construction manager had obtained full Subguard™ coverage [subcontractor default insurance or “SDI”] to protect developer against default by the largest subcontractor – concrete superstructure – on a Manhattan hi-rise project. The developer alleged it relied on defendant’s representation and suffered damages when the subcontractor defaulted and there was no SDI for the default.
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NJ Supreme Court Remands Case for Allocation of Fault of Defendants Dismissed Under Statute of Repose
The New Jersey Supreme Court recently remanded a case for a new trial on the issue of liability and to apportion fault under the Comparative Negligence Act, N.J.S.A. 2A:15-2, and Joint Tortfeasors Contribution Law, N.J.S.A. 2A:53A-2, including the potential fault of two defendants which had been dismissed from the case on summary judgment under the statute of repose, N.J.S.A. 2A:14-1.1(a).
New York City Sandy Neighborhood Game-Changer Investment Competition
New York City economic Development Corp. is requesting proposals from qualified firms or individuals to establish programs to “catalyze significant long-term economic growth” in five areas impacted by Hurricane Sandy. See here.
The RFP process is described by the EDC as:
“NYCEDC is requesting proposals from qualified individuals, organizations or companies to execute projects and/or programs that will catalyze significant long-term economic growth in one of the following five areas impacted by Hurricane Sandy: the East and South Shores of Staten Island, Southern Manhattan, Southern Brooklyn, the Brooklyn-Queens Waterfront, and South Queens (collectively, the “Impact Areas”).
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Beware Partial Releases and Waiver of Claims are Enforceable, But Can Be Waived
In the construction industry, the payment application process usually requires contractors and subcontractors to complete a great deal of paperwork. In addition to submitting traditional payment applications that identify the contractor’s or subcontractor’s schedule of values, work completed to date, and balance to finish, contractors and subcontractors may also be required to submit certain lien waivers, certifications, affidavits, and other types of sworn representations. While these additional submissions may seem clerical, or even ceremonial in nature, they can have serious legal ramifications.
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Another New York State Sales Tax Opinion on Sidewalk Sheds
The New York State Department of Taxation and Finance, Office of Counsel, Advisory Opinion Unit recently issued an opinion concerning the application of sales tax on the installation, rental and dismantling of temporary pedestrian walkways (sidewalk sheds) on capital improvement projects. A taxpayer had posed two questions for an advisory opinion, (1) are such sales taxable when the compensation is stated as a lump sum for the rental and the service combined, and (2) would the tax be applicable if the rental and installation charges were separately stated on invoices?
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Ohio Reduces the Statute of Limitations Period for Written Contracts by Seven Years
On September 28, 2012, Ohio Senate Bill 224 became effective and reduced the statute of limitations period for written contracts from 15 years to 8 years. This new law applies retroactively to causes of action which accrued prior to September 28, 2012, and provides that “an action upon a specialty or an agreement, contract, or promise in writing shall be brought within eight years after the cause of action accrued.” See Ohio Rev. Code § 2305.06.
This new law, however, does not alter the six-year statute of limitations applicable to promissory notes or the four-year statute of limitations applicable to contracts for the sale of goods. Ohio Rev. Code §§ 1303.16 and 1302.98.
Generally, statutes of limitations are enacted to ensure that plaintiffs pursue legal action with reasonable diligence and protect defendants from having to disprove a stale claim. Historically, Ohio had one of the longest statutes of limitations for written contracts in the country. Because Ohio’s statute of limitations period for written contracts has almost been cut in half, all parties to a contract must re-evaluate the manner in which they assess potential causes of actions in order to ensure that all claims are prosecuted in a timely manner.
Proposed Legislation Requires that Professional Services Contracts With Certain Bi-State Authorities Be Awarded Pursuant To Competitive Contracting Process
Two New Jersey state senators, Sens. Shirley K. Turner and Ronald L. Rice, recently introduced legislation, Bill S2489, that would require professional services contracts entered into by the Port Authority of New York and New Jersey, the Delaware River Port Authority, and the Delaware River and Bay Authority to be awarded through a competitive contracting process. Under current New Jersey law, contracts for professional services can be entered into without public supervision. Should the Bill become law, contracts for services that are of technical and professional nature, including but not limited to, contracts for architectural, engineering, and land surveying services must be publicly announced prior to being awarded. The contract would then be negotiated on the basis of demonstrated competence and qualification to meet the requirements of the particular professional services contract at a fair and reasonable price. The Bill includes exception provisions in the event an emergency is declared by the Governor of New York, the Governor of Pennsylvania, the Governor of Delaware, the Governor of New Jersey, or the President of the United States. A copy of Bill S2489 may be obtained here.
Co-contributor Marco A. Gonzalez, Jr. is a partner in the Newark office of Duane Morris LLP.