Published on:

By Jon Welner
welner.jpg

PREVAILING WAGE LAW is California’s “other” minimum wage. It requires workers to be paid union wages on publicly funded construction projects. But in recent years, the law in California has EXPANDED well beyond its initial purpose. It has become a tool for workers to demand union wages on virtually any construction project in California. These claims can increase the cost of a major construction project by millions of dollars–and can be brought years after construction is complete.

Even if you think your project is private, it still might be a “Public Work” subject to Prevailing Wage in California!

Five Traps to Avoid
California Prevailing Wage Law applies to any project “paid for in whole or in part out of public funds.”

Prior to 2002, this was easy to understand. Public funds were public funds. If a project received cash from a state or local agency, it was a “public work” subject to prevailing wage.
Continue reading

Published on:

welner.jpg

By Jon Welner

PREVAILING WAGE LAW is California’s “other” minimum wage. It requires workers to be paid union wages on publicly funded construction projects. But in recent years, the law in California has EXPANDED well beyond its initial purpose. It has become a tool for workers to demand union wages on virtually any construction project in California. These claims can increase the cost of a major construction project by millions of dollars–and can be brought years after construction is complete.

welner oil.jpgFor the first time, some private projects are covered by California Prevailing Wage Law. Hospitals, refineries, and chemical plants are covered.

Since the 1930s, prevailing wage laws have applied only to projects receiving public funds. Until now.

In 2013, Governor Brown signed SB 54, a new California law that applied prevailing wage requirements to privately funded construction work at chemical facilities that handle hazardous materials, including refineries.

In 2015, the Governor signed AB 852, a similar law expanding prevailing wage to cover the privately funded construction of hospitals. The new law covers projects funded at least in part by conduit revenue bonds.

welner hospital.jpgThis is the first time that prevailing wage law has been applied to construction projects that receive no public funds.

This legislation opens the door to extending prevailing wage to other types of privately funded construction. No word yet on what’s next.

Jon Welner is a leading practitioner of prevailing wage law in California. He is a Partner at Jeffer Mangels Butler & Mitchell LLP (JMBM) and Chair of JMBM’s Prevailing Wage Group. Contact him at JWelner@jmbm.com.

JMBM’s Prevailing Wage Group advises and defends developers, contractors, and manufacturers on the most challenging and complex prevailing wage matters in California.

Published on:

By Neill Brower
The California Supreme court determined the California State University (“CSU”) could not rely solely on earmarked appropriations from the State Legislature for payment of “fair share” mitigation fees the CSU determined necessary for full mitigation of impacts, and the absence of specific legislative appropriations for mitigation fees did not render payment of mitigation fees infeasible. On August 3, 2015, the California Supreme Court filed its decision in City of San Diego v. Bd. of Trustees of the California State University, Case No. S199557, rejecting the notion that the contingent nature of State budgeting excused a failure to commit to enforceable mitigation for off-campus impacts resulting from on-campus development. Further, because the CSU relied on the purported infeasibility of paying mitigation fees as a basis for its Statement of Overriding Considerations, the Statement of Overriding Considerations was unsupported by substantial evidence as to that finding.

In this case, the CSU approved an Environmental Impact Report (“EIR”) to expand the San Diego State University (“SDSU”) campus to accommodate, among other significant components; a hotel, academic research, medical, social, administrative, and conference facilities; faculty and student housing; a 10,000-student enrollment increase; and associated increases in faculty and staff by 2030 school year. Among other impacts, the EIR determined the project would result in significant contributions to cumulative traffic impacts on off-campus roads in the City of San Diego and Caltrans jurisdictions. The EIR determined the specific improvements required to mitigate these impacts and calculated the “fair-share” fees necessary to construct those improvements.
Continue reading

Published on:

Los Angeles — The Government, Land Use, Environment & Energy Group of Jeffer Mangels Butler & Mitchell LLP (JMBM) is pleased to welcome Daniel Freedman as an associate in its Los Angeles office.

Mr. Freedman’s experience includes representing and advising clients on matters relating to real estate development, zoning, project entitlements, CEQA, NEPA, federal and state environmental law, and governmental advocacy. He has advised clients working major commercial, residential, and industrial developments, renewable energy, high-speed rail, billboard siting, mining and government contracting. Daniel also has civil litigation experience in both state and federal courts.

“In addition to his impressive legal experience, Daniel’s consulting background in government and public affairs will bring an added dimension of effectiveness for our clients,” said Benjamin M. Reznik, Chair of JMBM’s Government, Land Use, Environment and Energy Department.

Prior to entering the legal profession, Daniel advised government agencies, energy and infrastructure development companies, and environmental organizations on issues relating to environmental policy, government affairs, and political strategy. He also organized and managed regional and statewide advocacy and outreach campaigns on environmental policy and regulatory issues, and clients working on complex projects such as concentrated solar, off-shore liquefied natural gas terminals, waste-to-energy, long-haul transmission, wind energy, carbon capture and sequestration and water infrastructure. Daniel also takes pride in his role as co-founder and board chairman of the Los Angeles Sustainability Collaborative, an executive committee member of the Bet Tzedek New Leadership Council, and volunteer for United in Harmony. Daniel is a graduate of U.C. Berkeley, where he earned his Bachelor of Science in Conservation Resources Studies, and UCLA where he earned his Master’s degree in Urban Planning. He then received his Juris Doctorate from Loyola Law School, Los Angeles.

“I’m excited to join a law firm with such a strong reputation for effective advocacy in the land use and environment arena,” said Freedman. “I look forward to contributing to the success of our clients.”

About JMBM’s Government, Land Use, Environment & Energy Group

JMBM’s land use attorneys represent a wide range of industries, businesses, trade groups and individuals with interests before all levels of local, state and federal government, especially throughout California. Our particular strength is handling all permitting and compliance issues for clients seeking to locate and develop new sites, relocate or expand operations. Projects we have helped move through the approval process include residential developments and apartment complexes, hotels, shopping centers, theaters, office buildings, and a wide range of industrial projects such as mines, energy plants and manufacturing facilities. Jeffer Mangels is recognized as a “2015 Best Law Firm” by U.S. News & World/Best Lawyers®, ranking in the first tier for Land Use and Zoning Law in Metropolitan Los Angeles.

Published on:

By Benjamin M. Reznik
The Los Angeles area, which once boasted two professional football teams, has been without an NFL franchise for twenty years. That’s not to say there haven’t been several stadium proposals during that time, among them a renovated Los Angeles Coliseum, Majestic Realty’s proposed 600-acre site in the City of Industry, and AEG’s proposed stadium in downtown Los Angeles, Farmers Field. While some observers blamed cities and local politics for a lack of movement on the stadium front, the reality is quite different – and both team owners and the NFL itself are in a position to call the shots.
Continue reading

Published on:

By Benjamin M. Reznik
In terms of land use regulations that have far-reaching effects on development in California, the application – or misapplication – of the California Environmental Quality Act (CEQA) is near the top of the list. CEQA, when first implemented, certainly had a well-intentioned purpose: to protect the environment. But too often, CEQA is used as a Trojan horse by development project opponents to delay or ultimately thwart construction, increasing costs along the way. One of the most egregious examples of this took place in San Francisco, where a CEQA lawsuit even delayed the construction of environmentally-friendly bike lanes.
Continue reading

Published on:

By Matthew Hinks
Governor Brown signed into law on September 27, 2014, AB2222, which amends the State’s Density Bonus Law (“DBL”), Gov’t Code §§ 65915, et seq. to establish significant constraints upon the use of the incentives provided by DBL in connection with certain real estate developments. The main purpose of AB2222 is to eliminate density bonuses and other incentives previously available unless the developer agrees to replace pre-existing affordable units on a one-for-one basis. The impact of the bill will be significant because it will remove the economic incentive to undertake density bonus projects where existing units are subject to rent control ordinances or similar restrictions.
Continue reading

Published on:

By Benjamin M. Reznik
Downtown Los Angeles’ real estate market is riding a wave of success, due in no small part to investment from major firms based in China. This past August, our client Shenzhen Hazens Real Estate Group Co. acquired the 178-room Luxe City Center hotel, located across the street from Staples Center and L.A. Live, and will be adding condominiums and retail space to the site. As noted by the Wall Street Journal’s Craig Karmin, this purchase is part of a “flurry of new development and property sales,” and comes on the heels of two other major Chinese-based investments in major Downtown Los Angeles properties: the Greenland Group’s purchase of the Metropolis site just east of L.A. Live, and Oceanwide Real Estate Group’s purchase of the Fig Central site in Downtown’s South Park neighborhood.

It’s important to note that Shenzhen Hazens Real Estate Group’s investment is for the long-term: just after the purchase of the Luxe site, Shenzhen Hazens and the Luxe Hotel Group signed a five-year contract to continue their partnership and to maximize their opportunities.

Why is Downtown Los Angeles appealing to large, institutional investors? First, Downtown Los Angeles’ status as an urban center with a solid base of residential, retail, and hotel real estate makes it very appealing for investors looking for longer-term investments. Second, unlike San Francisco and New York City, Downtown Los Angeles still has underutilized parcels, such as parking lots, in strategically-located areas that are appealing as sites for future large-scale projects. Third, as a trading hub that is home to one of the world’s busiest container shipping ports, Los Angeles is in a prime location in the Pacific Rim to benefit from future global economic growth.
Continue reading

Published on:

On September 25, 2014, Governor Brown signed Assembly Bill 52 (“AB 52”), which modifies the California Environmental Quality Act (“CEQA”) to add new protections for Native American cultural resources and enhances the role of Native American tribes in the environmental review process. AB 52 is a significant amendment to CEQA that poses both challenges and opportunities for project applicants. A brief summary of the new law, which takes effect July 1, 2015, is provided below.

AB 52 Creates a New Category of Potentially-Significant Environmental Impacts

Under current CEQA law, lead agencies typically evaluate whether a project would impact historic or archaeological resources. Although impacts to Native Americans may be evaluated, AB 52 specifically mandates evaluation of whether a project will impact “tribal cultural resources” which include sites, features, places, cultural landscapes, sacred places, and objects with cultural value to tribes. If the potential for impacts to such resources exists, as with other environmental impacts, increasing levels of CEQA analysis, mitigation measures, and the consideration of alternatives is required. Input from a tribe as to what is culturally significant to that tribe will drive the analysis for a given project. These changes take effect on July 1, 2015.
Continue reading