Unprecedented Negotiation of License Agreement with Large Developer Improves Structural Stability and Increases Value and Longevity of Adjacent Building
A prominent real estate holding company needed to negotiate an extraordinarily complicated license agreement for protections relating to a prominent university’s massive construction project adjacent to the building. The university’s project included demolition work, support of excavation work, foundation work, and the construction of a new building. In particular, the real estate holding company was extremely concerned that the university’s project could have dire consequences on its building due to the fragility and age of the building.
The real estate holding company came to Adam Leitman Bailey, P.C. to negotiate the license agreement.
Adam Leitman Bailey, P.C.’s select expert team of structural engineers, geotechnical engineers, and architects thoroughly inspected the real estate holding company’s building to identify all areas of the building that would be vulnerable to the support of excavation and foundation work by the university. The age and fragile condition of the building indicated that multiple areas of the building would be at risk for severe damage, and the building could possibly be condemned, as a result of such work.
In conjunction with this inspection, Adam Leitman Bailey, P.C.’s team of experts comprehensively reviewed the university’s plans for demolition, for support of excavation, and for foundation work. Based on this extensive review of the developer’s plans, Adam Leitman Bailey, P.C.’s team produced reports to the university’s structural and geotechnical engineers, which detailed the means and methods by which the excavation and foundation work should be performed to mitigate the risk of structural damage to the real estate holding company’s building. Adam Leitman Bailey, P.C. held steadfast that such comments and modifications be incorporated into the university’s final plans for submission to the New York City Department of Buildings for review and approval.
Over the course of several months, Adam Leitman Bailey, P.C., and the university repeatedly consulted with each other to resolve each of the issues and concerns raised by Adam Leitman Bailey, P.C.’s team of experts, until each and every issue was resolved to the expert’s satisfaction.
However, Adam Leitman Bailey, P.C. and its experts remained extremely concerned about the age and fragility of the building, and the impact that the support of excavation and foundation work could have on the structural stability of the building.
In an unprecedented demand under a license agreement, Adam Leitman Bailey, P.C. demanded that the university, at its sole cost and expense, design and install an exterior structural support system for the real estate holding company’s building that would be permanently installed on the building. This structural support system would not only mitigate the possibility of structural damage that could render the building uninhabitable, but also would also improve the structural integrity, longevity, and valuation of the building.
After extensive negotiations, the university agreed to design and install the expensive structural support system to the real estate holding company’s building under the license agreement.
Owners of older, fragile buildings with pending repairs who are approached by building developers who intend to perform support of excavation and foundation work adjacent to their buildings, should demand that developers perform all necessary structural support work to their buildings as a condition to granting licensed access to developers. Such terms under a license agreement will not only mitigate the risks that the developer’s project adversely impacts the structural integrity of their buildings, but also will improve the longevity and valuation of their buildings.