pennsylvania – Project Development/Infrastructure/P3

March 2, 2021March 2, 2021 by Brad A. Molotsky

COVID-19: Philadelphia begins Reopening Indoor and Outdoor Sporting Events to Live Fans!

The City of Philadelphia has elected to follow the Commonwealth’s guidance on enabling sporting events to begin bringing back fans live.

The revised restrictions allow outdoor venues to have occupancy of 20% of maximum capacity and indoor venues to have occupancy of 15% of maximum capacity, regardless of venue size.

Gov. Tom Wolf had announced this updated statewide guidance earlier this week on March 1, 2021.

According to Philadelphia Business Journal reporting, the Wells Fargo Center will initially be able to host 3,100 fans for Philadelphia Flyers and 76ers game and will begin to allow fans live as of Sunday night’s game against the Washington Capitals.

The 76ers will begin hosting fans starting March 14.

According to press releases from the teams, the Wells Fargo Center recently completed an $11 million installation of a new HVAC system that replaces indoor air every 30 minutes.

The Phillies will host Opening Day at 42,729-seat Citizens Bank Park against the Atlanta Braves on April 1. Under current guidance, 8,558 attendees will be allowed at the event, noting, it is unclear exactly how many fans will be permitted inside the stadium as the limits include coaches, players, team employees and arena staff.

Duane Morris has an active team of lawyers who have been engaged in the review and dissemination of COVID related alerts, blogs and advice on various COVID related topics. Please see our website for a few list of all available articles and blogs.

If you have any questions or thoughts, please contact Brad A. Molotsky, Sharon Caffrey, Elizabeth Mincer or any of the Duane Morris lawyers you regularly engage with.

Be well and stay safe.

July 14, 2019 by Brad A. Molotsky

Opportunity Zones – Additional States Continue to Join the Growing List of Places (39 States in All) Following Federal Form – Brad A. Molotsky, Esq.

Busy times continue in the Opportunity Zone world now that we have gotten past the clarion call of 2018 partnership rollovers into Qualified Opportunity Funds and Qualified Opportunity Zone Businesses that occurred on or before June 28, 2019. In our little corner of the world, deals are getting closed and new engagements happening, in particular on the business side of the ledger and some on the community impact side as well. Interesting and exciting stuff.

Based on my conversations with friends and colleagues at KPMG (thanks team for your continued excellent efforts) regarding the various states and their conformity with the federal OZ program – as of July 14th, 39 states for corporations and 33 states for individuals have elected to follow form with Pennsylvania being the latest to join the hit parade as of last week:

For Corporations:
— 39 states currently are conforming (rolling or updated state IRC conformity; AZ and MN are recent changes; AZ retroactively conforms starting TY18; HI conforms starting in TY19; IA conforms starting in TY19; MN might be retroactive but DOR guidance has not been issued yet)
— 2 states didn’t update IRC conformity
(CA, NH)
— 1 state updated IRC conformity but decoupled from IRC 1400Z (NC)

For Individuals:
— 33 states currently conforming (rolling or updated state IRC conformity; AZ and MN are recent changes; AZ retroactively conforms starting TY18; HI conforms starting in TY19; IA conforms starting in TY19; MN might be retroactive but DOR guidance has not been issued yet)
— 1 state didn’t update IRC conformity (CA)
— 1 state updated IRC conformity but decoupled from IRC 1400Z (NC)
— 6 states where IRC conformity is different for personal income tax or only have selective IRC conformity (AL, AR, MA, MS, NJ, PA) of which three do not conform (AL, MA, MS), one conforms (NJ), one will conform (PA for TYB 1/1/20), and one conforms but only with respect to QOZs located within this state (AR)

Check it out and let us know if you have any questions or need help on your various deals and transactions.

Brad A. Molotsky, Duane Morris LLP

April 26, 2018May 18, 2018 by Duane Morris

Pennsylvania files for Opportunity Zones for 10-year tax deferred investments in community development

On April 20, 2018, Governor Tom Wolf submitted to U.S. Treasury his list of designated Opportunity Zone sites for Pennsylvania. To date, 18 states and territories—including Arizona, California, Colorado, Georgia, Idaho, Kentucky, Michigan, Mississippi, Nebraska, New Jersey, Oklahoma, South Carolina, South Dakota, Vermont and Wisconsin, as well as American Samoa, Puerto Rico and the U.S. Virgin Islands—have filed for and received approval of their sites. Pennsylvania has now followed suit and submitted its list for approval. Previously, we discussed Opportunity Zones in our Alerts dated March 1 and April 10, 2018.

Designations are approved for 10 years and permit investors to defer tax on any prior gains until no later than December 31, 2026, so long as the gain is reinvested in a Qualified Opportunity Fund. A Qualified Opportunity Fund is an investment vehicle that is organized to make investments in the zones designated above as Qualified Opportunity Zones. Note that while we are awaiting draft regulations, which are anticipated within the next 60 days (i.e., by June 30, 2018), it appears that if investors hold their investments in the Opportunity Fund for at least 10 years, they would be able to increase its basis to that of the fair market value of the investment on the date it is sold. In other words, their appreciation in the value of the asset thereafter would be tax-free.

Read the full Alert on the Duane Morris LLP website.