Articles Posted in Construction Generally

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UPDATE: Sacramento Business Journal, Planning commission gives Kings arena a big thumbs-up (Apr. 11, 2014) — “With a unanimous vote, the board recommended approval to the City Council both for the arena and entitlements for surrounding development.”

The Sacramento Bee confirmed yesterday that the City of Sacramento (City) announced that Sacramento’s Planning and Design Commission (Commission) is scheduled to vote on the planned downtown Sacramento Kings’ arena project at its April 10 meeting. Among the issues the Commission will debate include:

  • The arena’s environmental impact report
  • The project’s design
  • A development agreement between the Sacramento Kings and City
  • Guidelines for the 1.5 million sq. ft. of development the Sacramento Kings are planning around the arena
  • Various zoning permits
  • A plan for the Sacramento Kings to construct 7 electronic billboards around the City

If the Commission approves the arena project, it will head to the City Council in late April or early May. In addition to the development plans and environmental report, the City Council will have to approve a proposal to commit $258 million in public money to the $448 million arena project.

Additional Source: The Sacramento Bee, Sacramento arena plan goes to Planning Commission April 10 (Mar. 28, 2014); Latest Concepts for Sacramento Kings Arena Unveiled; Turner Construction Company to Build New Sacramento Kings Arena; Sacramento Kings Announce They Will Be The First Pro Sports Franchise To Accept Bitcoin

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The Nevada State Contractors Board (NSCB) announced today that it will be conducting a public workshop on Wednesday, April 30, 2014 at 9:00 a.m. and a public hearing on Thursday, May 15, 2014 at 9:00 a.m., in connection with its notice of intent to amend its regulations which are set forth in Chapter 624 of Nevada’s Administrative Code. In particular, it intends to expand the scope of its C-10 Landscape contracting classification and to add standards for imposing administrative fines.

Proposed Regulation R018-14 would amend the current C-10 Landscape contracting classification to include tree trimming and removal of trees and tree stumps, and proposed Regulation R019-14 would modify NAC § 624.7251 to include standards for the imposition of administrative fines for all violations of Chapter 624 of Nevada’s Revised Statute.

Anyone wishing to comment on the proposed regulations may appear at the scheduled public workshop or may address their comments, data, views or arguments, in written form to the Executive Officer of the NSCB, 2310 Corporate Circle, Suite 200, Henderson, NV 89074 and the Reno office located at 9670 Gateway Drive, Suite 100, Reno, NV 89521. Written submissions must be received by the NSCB five days prior to the scheduled workshop. If no person who is directly affected by the proposed action appears to request time to make an oral presentation, the NSCB may proceed immediately to act upon any written submissions.

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UPDATE: CSLB, Catching Illegal Contracting in the Act with “Eyes on Site” (Apr. 2, 2014)

California’s Contractors State License Board (CSLB) Statewide Investigative Fraud Team (SWIFT) team has reported that 121 individuals have been arrested in connection with simultaneous undercover sting operations conducted March 25-27, 2014, in 9California locations. SWIFT investigators partnered with a variety of local law enforcement agencies to conduct the stings, including law enforcement agencies in Bass Lake (Madera County), Clovis (Fresno County), Dana Point (Orange County), Hanford (Kings County), Palos Verdes Estates (Los Angeles County), Sacramento (Sacramento County), San Jose (Santa Clara County), Vista (San Diego County), and Woodland (Yolo County).

Of the 121 individuals arrested, 115 now may face misdemeanor charges for contracting without a license, which is prohibited by Bus. & Prof. Code § 7028. The penalty for a conviction is up to 6 months in jail and/or a fine of up to $5,000. Of those arrested, 94 may also be charged with illegal advertising in violation of Bus. & Prof. Code § 7027.1. Among other things, California law requires contractors to place their license number in all print, broadcast, and online advertisements. Those without a license are permitted to advertise to perform jobs valued at less than $500, but the ad must state that they are not a licensed contractor. The penalty for illegal advertising is a fine of $700 to $1,000. Other charges may include requesting an excessive down payment in violation of Bus. & Prof. Code § 7159.5. In California, unless exempt, a home improvement project down payment cannot exceed 10% of the contract total or $1,000, whichever is less. This misdemeanor charge carries a maximum penalty of 6 months in jail and/or up to a $5,000 fine. The CSLB further reported that the blitz totals may increase as some suspects are expected to provide their bids to undercover investigators via text, email or fax at a later date.

Additional Source: Fall California Licensing Blitz Stings 75; California Contractors State License Board

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Yesterday, Pillsbury attorney Joël Van Over  published his advisory titled Who Says Life’s Not Fair: Good Faith and Fair Dealing Prevails in Metcalf Case. The Advisory discusses the Federal Circuit’s highly anticipated decision in Metcalf Construction Company, Inc. v. United States, No. 2013-5041 (Fed. Cir. Feb. 11, 2014). The Federal Circuit ruled that a contractor suing the government for breaching the implied duty of “good faith and fair dealing” need not show that the government’s conduct was “specifically targeted” to reappropriate the contractor’s benefits under the subject contract except in limited circumstances present in the court’s 2010 decision in Precision Pine & Timber, Inc. v. United States, 596 F.3d 817 (Fed. Cir. 2010). Rather, in Metcalf, the court reaffirmed the vitality of traditional standards used to prove a breach of the duty of good faith and fair dealing, such as where the government hindered or failed to cooperate with the contractor’s performance so as to “destroy the [contractor’s] reasonable expectations. . . regarding the fruits of the contract.”

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Instead of sexist catcalls, construction works yell: “I’d like to show you the respect you deserve!” “A woman’s place is where she chooses!” “You know what I’d like to see? A society in which the objectification of women makes way for gender-neutral interaction free from assumptions and expectations” in a real-world extension of Snickers’ “You’re not you when you’re hungry” campaign. Check out the YouTube video titled Aussie Builders surprise public with loud empowering statements.

Additional Resource: AdWeek, Construction Workers Yell Messages of Empowerment to Women in Snickers Stunt … So when you’re hungry, you’re not a creep?

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Today, Pillsbury attorneys Ken Taber and Teresa Lewi published their advisory titled Update: Amendments to New York City’s Paid Sick Leave Law Changes Effective April 1st Expand Obligations for Employers. The Advisory reports that New York City Mayor Bill de Blasio signed into law amendments to the Earned Sick Time Act that impose additional requirements on almost all private employers in the City, with enforcement set to begin on April 1st. It also discusses the new requirements.

Additional Sources: New York Employers Face Far-Reaching Employment Law Changes in 2014

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Today, Pillsbury attorneys Mark Jones and Matt Ryan posted their advisory titled Health Care Reform Update: Employers Must Begin Reporting Details of Health Coverage to IRS. The Advisory discusses the significant new reporting requirements applicable to employers providing self-insured group health coverage to their employees and to other, large and mid-size employers subject to the shared responsibility (or “Pay or Play”) rules under the Affordable Care Act. It further discusses recently finalized regulations that explain the requirements and provide certain employers with opportunities to reduce their reporting burden. The reporting regime will become effective on January 1, 2015, relying in part on data collected in 2014.

Additional Resources: IRS Releases Final Regulations on “Pay or Play” (Feb. 25, 2014); Health Care Reform Update: Large Employers Must Offer Health Coverage or Pay Assessment (Jan. 22, 2013)

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Today, Pillsbury attorneys Ray Sweigart and Jeff Kiburtz published their advisory titled An American Policyholder in London: English Choice of Law Clauses in United States Insurance Policies. The Advisory identifies a few of the issues on which English law is notably different from prevailing law in the United States and which ought to be taken into account when considering an English law and forum clause.

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UPDATE: Chief Executive Magazine, Best & Worst States for Business (May 2014) — In the 10th annual survey of CEOs, over 500 CEOs across the U.S. graded states with which they were familiar on a variety of measures, including the tax and regulatory regime, the quality of the workforce and the quality of the living environment. Texas continues its 10-year historical position as the best state overall.

Downtown Austin is buzzing with hotel construction and other development activities, as recently recognized by the New York Times in its article Austin, Tex., Stands Out in Hotel Recovery That Has Hugged Coasts (Oct. 1, 2013) and, more recently, the Austin Business Journal in its article Fairmont Austin Developer names general contractor; project appears on track (Mar. 18, 2014). austin.jpg

There are reportedly numerous hotel and other projects currently under construction and in the planning phase in downtown Austin.

The New York Times article highlighted hotel projects under construction and other projects in the pipeline:

“A $300 million JW Marriott hotel, the biggest JW Marriott in the country and the city’s biggest hotel at 1.2 million square feet, is under construction on a full block near the Capitol. Developers broke ground on a Westin over the summer and a $350 million Fairmont will be going up a few blocks away.

Eight hotels containing almost 4,000 rooms are scheduled to open across Austin within the next three years, making the Texas capital one of the most active markets in the country for new hotel construction.”

It noted that, although developers across the nation may be “skittish,” delaying new hotels “until the economy returns to health, and financing does, too,” in Austin, “developers aren’t that wary.”

In turn, the Austin Business Journal recently confirmed that developer Manchester Texas Financial Group LLC has announced that it has awarded Hunt Construction Group the $247 million construction contract for development of the Fairmont Austin downtown. It reported that “[t]he total value of the 47-story project to be built at Cesar Chavez and Red River streets is $370 million.” Characterizing Austin as a “robust hospitality market,” it confirmed that “[d]owntown Austin is buzzing with hotel construction activity.” It highlighted projects under construction and in the pipeline as well:

“In addition to the JW Marriott Austin, the Westin Downtown Austin also is under construction along with Hotel Van Zandt in the Rainey Street District. The status of construction of the proposed Hotel Zaza at 401 Guadalupe St. is unknown at this time. Several other boutique hotels have been announced, mostly around Rainey Street and in East Austin.”

Downtown Austin Alliance’s webpage identifies other planned and under construction projects:

  • Republic Square, Phase II – Planned
  • Travis County DA Office Building – Planned
  • Texas PTA – Planned
  • Holiday Inn Hotel – Mixed Use Project – Planned
  • New Travis County Civil & Family Courthouse – Planned
  • Texas Public Policy Foundation Office Building – Planned
  • Gables Republic Park/Hotel Zaza – Planned
  • Dell Medical School & Teaching Hospital At UT Austin – Planned
  • Mexic-Arte Museum – Planned
  • Waterloo Park Tower – Planned
  • Episcopal Church National Archives – Planned
  • Trinity Place – Planned
  • 416 Congress – Planned
  • 5th and Brazos – Planned
  • West Campus Apartments – Under Construction
  • Hyatt Ballroom and Parking Structure – Under Construction
  • Capitol Studios – Under Construction
  • Colorado Tower – Under Construction
  • Stubb’s Green Building – Under Construction
  • Waller Creek Flood Diversion Tunnel – Under Construction
  • IBC Bank Plaza – Under Construction
  • New Central Library – Under Construction

Additional Sources: Austin Business Journal, Hotel Van Zandt breaks ground on Rainey Street (Aug. 22, 2013)

Photo: Stuart Seeger, Austin Texas Lake Front – Creative Commons

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CalChamber recently announced that workshops will be conducted throughout the state by the Governor’s Office of Business and Economic Development (GO-Biz)taxes.jpg to help businesses to learn how to apply the new California Competes Tax Credit. This credit is an income tax credit available to businesses–both large and small–that want to relocate to or stay and grow in California. GO-Biz expects to begin accepting applications during the first quarter of 2014. For more information on the California Competes Tax Credit read GO-Biz Finalizes Proposed California Competes Tax Credit Regulations.

California Competes Tax Credit workshops are scheduled for the following dates and locations:

Sacramento: Wednesday, March 19
New City Hall 915 I Street, Council Chambers Sacramento, CA 95814 9 am-10 am
Redding: Wednesday, March 19

Redding Council Chambers 777 E. Cypress Avenue Redding, CA 96001 5 pm -6 pm
Fairfield: Thursday, March 20
City of Fairfield 2490 Hilborn Road #108
Fairfield, CA 94533 9 am-10 am
Oakland: Thursday, March 20
Oakland City Hall Council Chamber 1 Frank H. Ogawa Plaza Oakland, CA 94612 1:30 pm -2:30 pm
Salinas: Thursday, March 20
Salinas City Rotunda 200 Lincoln Avenue Salinas, CA 93901 6 pm to 7 pm
Fresno: Friday, March 21

2331 Fresno Street Fresno, CA 93721 10:30 am-11:30 am
Stockton: Friday, March 21
56 S Lincoln St Stockton, CA 95203 3 pm-4 pm
Los Angeles: Tuesday, March 25
200 N. Spring Street 27th Floor – Tom Bradley Rm Los Angeles, CA 90012 1:30 pm -2:30 pm
Ontario: Wednesday, March 26

2500 S. Archibald Ave, Rm. 2 Ontario, CA 91761 10 am-11 am
Anaheim: Wednesday, March 26
201 S. Anaheim Blvd Gordon Hoyt Conference Room Anaheim, CA 92805 1:30 pm-2:30 pm
San Diego: Thursday, March 27th
402 West Broadway, Ste. 1000 San Diego, CA 92101 10 am-11 am
San Francisco: Friday, March 28
235 Montgomery Street, Ste. 760 San Francisco, CA 94104 10 am-11 am

California Competes Tax Credit online webinars are scheduled for the following dates:

Wednesday March 19
1 pm-2 pm Register Here

Tuesday, April 1
11 am-noon Register Here

Photo: TaxCredits.net – Creative Commons