March, 2009 Rich Cartlidge, LEED AP

Impact of Buildings in U.S.A.

In the United States alone, buildings account

for: 72% of electricity consumption, 39% of energy use, 38% of all carbon dioxide (CO2) emissions, 40% of raw materials use, 30% of waste output (136 million tons annually), and 14% of potable water consumption. http://www.usgbc.org/DisplayPage.aspx?CMSPage

Goals of Green Building

Low Impact Minimal impact on natural environment Energy Efficient
Reduced Energy usage and Water usage

Healthy
Protect occupant health and increase

productivity

Minimize waste Designed and constructed in a manner that minimizes waste, pollution, and environmental degradation

Green Building Certification

USGBC, Leadership in Energy and

Environmental Design (LEED) National Association of Home Builders (NAHB) Green Globes Earthcraft

Why Seek Certification

Be recognized for your commitment to

environmental issues Third party verification of achievement Qualify for state and local government initiatives Receive marketing exposure through listing on USGBC website

LEED
Most popular and widely known certification Provides third party verification Variety of rating systems for different

applications
Most popular are LEED for new construction,

homes, and existing buildings

Growth opportunity under stimulus for schools

LEED Credits
Six Categories: Sustainable Sites (14), Water

Efficiency (5), Energy & Atmosphere (17), Materials & Resources (13), Indoor Environmental Quality (15), Innovation and Design (5) Prerequisites & Credits LEED Certified (26-32), Silver (33-38), Gold (39-51), and Platinum (52-69) http://www.usgbc.org/DisplayPage.aspx?CMSPage

LEED Accredited Professional

Pass a certification exam Attorneys will essentially be precluded from becoming certified after March 31st Gain one point under Innovation and Design Serve as an individual who can bring all the

different team members together

LEED in Florida

LEED in Saint Petersburg

maintenance homes that are responsible ,efficient, attainable and livable. Darren Brinkley, REAL Building founder First local government of earn Florida Green Building Coalition approval State Incentives

http://www.usgbc.org/ShowFile.aspx?DocumentID= Our mission is to create healthy, safe, low-

http://www.floridagreenbuilding.org/db/?q=node/701

Role of the Attorney

Prepare the contracts Advise owners on legislation Advise owners on availability of tax credits Serve as the LEED AP Be knowledgeable regarding green building

practices to obtain the work Address land use, zoning, and environmental issues Handle any potential litigation which may arise

Captains Galley

Capatains Galley
http://thecaptainsgalley.com/ Shaw Development recently filed for

Bankruptcy
Only 3 units are under contract, the restaurant

http://www.easternshorehousing.com/Blogs/Eastern_s

recently closed due to a dispute with Shaw Units now selling for $247,000 a nearly 50% reduction

Shaw Development v. Southern Builders

One of the first green litigation cases in the

United States Not truly about failure to obtain certification but rather importance of proper contracting

Litigation
Facts
Shaw hired Southern to construct a 23 unit

condominium to be built to LEED Silver Original price was 6.9 Million Dollars Southern paid 7.45 Million Dollars with change orders Financing obtained totaled 8.97 Million Dollars Nearly 9 months after the date set for substantial completion still not complete

Litigation Facts
Loans placed in default Bank seeks 10.298 Million Dollars $416,000 in late fees Interest accruing at nearly $3,000 per day $635,000 in tax credits not obtained as a

result of missing LEED certification

What was the problem.

Not about LEED Not about Contracts Not about hard feelings The project was a victim of the economy

which brought all the other issues to the forefront

How do you calculate damages?

$635,000 in tax credits Interest and attorney fees of foreclosure Loss of the restaurant Interstate Land Sales Act Reduced Selling Prices

Possible role of Attorney

Reviewing contracts and working on better

language to ensure or encourage LEED Working out credit issues Bringing a dose of reality to clients who still wanted to sell at peak prices