August 15, 2008

Cleveland Construction, Inc. vs. Cincinnati, Slip Opinion No. 2008-Ohio-2337 Regarding Property Interests in Public Contract Bids

The Supreme Court of Ohio ruled on May 20, 2008 that no property interest is created when a city does not award a public contract to the low bidder based on the city’s proper exercise of its discretion to reject bids deemed not to comply with requirements included in the bid invitation. The Court’s 6-1 decision, authored by Justice Judith Ann Lanzinger, reversed a ruling in which the 1st District Court of Appeals held that a construction company that submitted the low bid for a portion of a public construction contract had a property interest in that contract and therefore could pursue a claim for money damages against the city of Cincinnati. Here is a link to the decision - http://www.supremecourtofohio.gov/rod/docs/pdf/0/2008/2008-Ohio-2337.pdf.

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The ADA Amendments Act of 2008 - On A Fast Track To The White House

By Denise J. Bleau, Esq., Buckingham, Doolittle & Burroughs, LLP

The most significant Americans With Disabilities Act legislation since 1990 was passed by the House on June 25, 2008 by a vote of 402-17. The ADA prohibits discrimination based on a disability in employment, public accommodations, and other areas.

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July 30, 2008

Two recent Court of Appeals cases provide important considerations for those involved in zoning matters and purchasing and reselling subdivision lots.

By James Simon, Esq., Buckingham, Doolittle & Burroughs, LLP

In White Castle System, Inc., et al. v. West Chester Township Zoning Commission (June 9, 2008), 12th Dist. No. CA2007-07-157, 2008-Ohio-2738, the Twelfth District Court of Appeals examined an appeal of a decision by the West Chester Township Zoning Commission that dictated the traffic patterns and location of the drive-thru window in a proposed restaurant. The Appellant, White Castle, argued that the location and layout of the drive-thru was not subject to the Final Development Plan requirements under “C-PUD” zoning. The Twelfth District upheld the trial court’s findings that “a condition delineating the location of the drive-thru in order to enhance safety and aesthetics falls within the criteria to be considered and the discretion of the Zoning Commission. * * * the proposed plan advances the public health safety, welfare and morals.” Thus, the Zoning Commission was determined to be within their statutory powers to regulate the aesthetics of the building.

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July 21, 2008

Tax-Free Mortgage Workout Relief Under The Federal Mortgage Relief Act

By George Weinstein, Esq., Buckingham, Doolittle & Burroughs, LLP

Taxpayers may now exclude up to $2 million of qualified mortgage debt forgiveness on their principal residence without being subject to federal income tax. The Mortgage Relief Act applies to acquisition indebtedness discharged in the years 2007, 2008, and 2009.

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June 26, 2008

Recent Line of Court Decisions Alters “Under 100 Lot” Exemption to Interstate Land Sales Full Disclosure Act (“ILSA”)

By: Eric J. Neuman, Esq., Buckingham Doolittle & Burroughs, LLP

In Pugliese v. Pukka Development, 524 F.Supp.2d 1370 (S.D. Fla. 2007) the Federal U.S. District Court for the Southern District of Florida issued a decision that directly contradicts existing Florida State caselaw regarding the impact of a developer’s qualifying for the so-called “Under 100 Lot” exemption from the Federal Interstate Land Sales Full Disclosure Act 15 U.S.C. 1701 et seq. (“ILSA”).

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May 13, 2008

EMINENT DOMAIN IN FLORIDA -- KELO HAS NOT IMPACTED SHOPPING CENTERS IN FLORIDA

Several of our clients who own shopping centers have expressed concern about the 2004 United States Supreme Court ruling of Kelo v. City of New London and its possible impact in Florida. In Kelo, the Supreme Court upheld the exercise of eminent domain power by a Connecticut city, New London, to take private property owned by residents of New London in furtherance of a private redevelopment plan. The Supreme Court ruled that the redevelopment plan was considered a public use, thereby justifying the city’s exercise of eminent domain.

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FLORIDA MARKET CONDITIONS--First Half of 2008

Due to its excellent climate and favorable job opportunities, Florida typically attracts many new, permanent residents on a daily basis who bring Florida growth and additional income. As a result, many people believed that Florida was immune from the economic downturn afflicting the rest of the country. Due to higher energy and food costs and the bursting of the speculative real estate investment bubble across the country, however, Florida has been impacted.

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April 14, 2008

Legislative Update: Criminal background checks to be required on employees and contractors who work in school districts.

H.B. 190 (eff. Nov. 14, 2007) – Requires private contractors who work with a school district for a “regular period of time” to run background checks on all employees assigned to a district building or project. Public owners are beginning to rely upon this newly enacted statute to require private contractors to obtain fingerprints and request both an Ohio Bureau of Criminal Identification and Investigation (“BCII”) and an FBI records check prior to assigning employees to work on district projects. Further, the background check must be repeated every five years for each employee, and private contractors hired by school districts must pay the cost of these checks.

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Case Summary: Local hiring preferences can result in withdrawal of federal funds on a city project City of Cleveland v. State of Ohio, et al., 2007 WL 4123743 (C.A. 6 (Ohio))

Summary: When federal funds are involved on a local project, the local municipality needs to be very cautious when attempting to institute local hiring preferences. Courts will most likely side with the decision made by the federal agency provided that decision is not arbitrary or capricious.

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June 28, 2007

Ohio Legislature Approves Eminent Domain Bill

The Ohio General Assembly approved a bill placing limits on the government's authority to take property for economic development purposes and governor Strickland is expected to sign the bill into law, reports the Columbus Dispatch. The bill includes a requirement that at least 70 percent of properties in a targeted area be deemed "blighted" before the government can take the land. A companion constitutional amendment failed to garner the votes needed to appear on the November ballot.