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Self-taught filmmakers driving local industry

Self-taught filmmakers driving local industry

Ask a local about the film scene in Southwest Washington, and you’re likely to b...

Legal marijuana sales underway in Washington state

Legal marijuana sales underway in Washington state

A year and a half after voters legalized recreational marijuana in Washington st...

New apartment complex breaking ground in downtown Vancouver

New apartment complex breaking ground in downtown Vancouver

Portland-based DBG Properties LLC will break ground next week on a new $17.4 mil...

Southwest Washington’s Innovation Advantage

Southwest Washington’s Innovation Advantage

What enables Southwest Washington to attract innovation giants such as Hewlett P...

Clark College introduces new technical program

Clark College introduces new technical program

Clark College has introduced a new technical program while adjusting some existi...

Q&A: Commissioner Barnes talks business

Q&A: Commissioner Barnes talks business

We recently sat down with newly-appointed Clark County Commissioner Ed Barnes to...

Buy Local

Self-taught filmmakers driving local industry

Self-taught filmmakers driving local industry

Ask a local about the film scene in Southwest Washington, and you’re likely to be met with a blank stare. We have a few movie theaters, and there are some places that make videos, but a real film industry? If we do have one, where is it?

Well, if we’re looking for a real film “industry,” we’re going to have to keep looking for a while. However, there are many more hobbyists making their own movie...

Education & Workforce Development

Workforce Development: A return to personnel investment

Workforce Development: A return to personnel investment

It is a common reaction to economic downturn: companies understandably tighten their budgets; non-essential or slow-to-return investments get nixed pretty quickly. During the Great Recession, this was the case not only in Southwest Washington, but throughout much of the nation, as investing in a company’s most valuable asset – their employees – fell victim to the reigning in of purse strings.

Wit...

News Briefs

DiscoverOrg achieves record revenue growth in first half of 2014

DiscoverOrg, a Vancouver-based provider of IT sales leads intelligence, announced that it has achieved record revenue growth (+62 percent) in the first half of this year, compared to the same period in 2013.

Spotlight

Teamwork & training driving growth at Premiere Property Group

Teamwork & training driving growth at Premiere Property Group

Four years ago, Steve Borwieck, owner of Premiere Property Group LLC, (PPG) decided to launch his own brokerage.

“When you know something you should teach it, because when you teach it you master it,” said Borwieck.

But when he approached his boss with the idea of teaching some classes to brokers, they “brushed him off.” So, he said, “I rocked back in my chair and thought ‘I can do this as well’...

Tapped out

 By John H. Baker, Jordan Schrader Ramis

What happens when a development project runs out of money before the work is done? Today’s tight credit and uncertain market prospects cast a shadow of risk on once-promising projects.

Each party – a tapped-out developer, undersecured lender, or unpaid contractor or consultant – has a stake in the project. Each party can protect its stake by cooperating with the others to maximize the property’s value and minimize dispute costs.

 By John H. Baker, Jordan Schrader Ramis

What happens when a development project runs out of money before the work is done? Today’s tight credit and uncertain market prospects cast a shadow of risk on once-promising projects.

Each party – a tapped-out developer, undersecured lender, or unpaid contractor or consultant – has a stake in the project. Each party can protect its stake by cooperating with the others to maximize the property’s value and minimize dispute costs.

To achieve the best outcome possible:

Determine the total value actually at risk

The typical project under review in this situation is unfinished, late and will require more money to finish than anybody expected to contribute. Given those factors, the parties need to realistically determine the value of the unfinished versus the finished project.

Whether or not the projected finished value is equal to the original pro forma appraisal isn’t the issue - the critical consideration is what its completion will contribute to the value.

Analyze options

The lender may face the burden of injecting more funds into the project than its authorized loan-to-value ratios. The owner or developer may have to liquidate other assets. Contractors may have to discount work or extend payment terms.

These analyses must consider the cost of further delay and litigation. The parties’ contractual rights to recover delay costs, attorney fees, appraisal costs and other expenses may not outweigh the cost of losing tenants or buyers because the project did not make it to market.

Parties must determine their bottom-line position

Each party may find itself unable to participate in a solution on a true pro rata or proportional basis. The owner or developer may have no other assets to liquidate or contribute. The contractor may face unpaid tax claims or other liens that threaten its ability to remain in operation.

But within the range of financial contributions that each party can accommodate, a workable solution can often be found.

How it might work: a recent case history

The project in question was 90 percent complete but the expected cost to finish would substantially exceed the original budgets. The owner’s resources were depleted, credit limits were maxed out and the contractor was owed a substantial sum.

The lender suspended funding, work stopped and the contractor filed its lien. But the contractor chose not to immediately exercise its right to terminate the contract and foreclose its lien, leaving room for all parties to maneuver.

After multiparty discussions, a contract change order ultimately led to completion. The contractor received more than 90 percent of its lien claim but agreed to an absolute maximum fixed cost to finish the work. The lender agreed to fund the final work, given the limit and received an additional supplemental guarantee for payment from the investors and the owner.

A short-term completion schedule was agreed to by all parties. Every party gave up something, but no party was forced to bear the total burden or expense of the problem. Finishing is obviously the ultimate goal of any construction project and should remain the goal even when problems develop.

 

Douglas P. Cushing is a member of Jordan Schrader Ramis’s business practice group. He can be reached at This email address is being protected from spambots. You need JavaScript enabled to view it. . John H. Baker, AIA, LEED AP, is a member of Jordan Schrader Ramis’s Dirt Law practice group. He can be reached at This email address is being protected from spambots. You need JavaScript enabled to view it. .

Opinion

Focus Column

A long-term win for all

A long-term win for all

Becoming involved with workforce development is an opportunity for businesses to contribute to the economic health of ou...

Outstanding employees are standing by

Outstanding employees are standing by

In today’s competitive marketplace every employer wants to hire outstanding employees. While there continues to be a hig...

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