It stands for "not in my backyard" and refers to the phenomenon of people wanting or needing certain things, like cell phone towers or roads or shopping centers, but not wanting them to be too close. "Put that in someone else's neighborhood," the thinking goes, "Just not in mine."
]]> The tension between residential and commercial real estate development seems to be increasing Dr. Phillips, where Unicorp National Developments Inc. recently had to make significant changes to a planned development to soothe local concerns.Unicorp had originally planned a development on Sand Lake Road called The Falls on Sand Lake that would have included restaurants, shops and a Trader Joe's, but residents complained bitterly about its size and worried that it would attract too much traffic and would generate too much noise and light pollution.
Acting on these concerns, the local planning commission voted The Falls on Sand Lake down in March.
Unicorp regrouped, scaled the project down and added a park that would serve as a buffer between the development and people's homes. Unicorp clearly hopes this will be enough to put residents' minds at ease, but whether it is remains to be seen.
In our law firm, we often assist commercial real estate clients, so we know how important it is to make sure that a given community is supportive of a project. Without the backing of a community's residents, local officials are not likely to grant their approval or view things like requests for variances favorably
Source: The Orlando Business Journal, "Unicorp's revamped Dr. Phillips prokect faces renewed opposition," Anjali Fluker, May 13, 2013
]]>That all may have changed, however.
]]> Earlier this week, the director of the project said he is "reconsidering" giving Ruth's Chris a lakefront spot in the development. That location, of course, is some of the most desired commercial real estate in the entire development.The director would not say why he is reconsidering, or what sort of tenant he envisions occupying the slot. It also is not 100 percent clear how far along negotiations between Unicorp and Ruth's Chris proceeded.
For developers, it is crucial to find the right mix of tenants for their locations. Shoppers will only come, of course, if there is an appealing blend of stores, restaurants and attractions that they genuinely want to visit.
For their part, all retailers have to determine if they want to have a presence in a given city, neighborhood or development. While access to customers is good, of course, companies have to be careful not to overstretch themselves, or to build up presences in undesirable markets,
If you are exploring possible new locations, it might be a good idea to connect with an attorney who deals with commercial real estate matters sooner rather than later. It can be difficult to forecast when issues arise, and knowing to whom you can turn in the event that they do come up can be very helpful.
Source: The Orlando Business Journal, "Unicorp's Whittall 'reconsidering' Ruth's Chris deal for Winter Park Lakeside," Anjali Fluker, May 7, 2013
]]>We recently read about an interesting case out of Wedgefield. That is where environmentalists are alleging that the local water authority, The St. Johns River Water Management District, has been stifled in the face of local development that could imperil the nearby Econlockhatchee River.
]]> The issue seems to be that Wedgefield wants to increase dredging and filling of wetlands near the Econlockhatchee, which has been named an Outstanding Florida Water.So far, both the Florida Department of Environmental Protection and the St. Johns River Water Management District have kept quiet about the plan, which has surprised and angered some environmentalists. They alleged that the agencies' reticence is due to Florida Gov. Rick Scott, who has sought to centralize water control in Tallahassee, rather than leave it to local governments.
While we do believe that the environment ought to be a consideration, we do have empathy for developers who get tangled up in red tape. Sometimes, it can seem as though regulatory agencies have the best of intentions, but are not able to execute them effectively, leaving commercial interests in the lurch.
Oftentimes, developers find it helpful to seek the counsel of an attorney who has experience working with real estate matters. These attorneys can help shepherd a project from blueprint to reality, pitching in when legal issues threaten to derail the plan.
Source: The Orlando Sentinel, "Water district keeps its distance as other fight over wetlands tied to river it is guarding," Kevin Spear, April 29, 2013
]]>That's because after years of delays and long stretches of tedious work, a $17 million improvement plan for the street is finally underway. The project is a significant portion of Orlando Mayor Buddy Dyer's plan to make the city's Parramore neighborhood a major sports and entertainment hub.
]]> On April 8, crews began the first stage of the project - a "facelift" to the 1.2 mile-stretch of West Church Street between Tampa and Division avenues. New sidewalks, improved lighting, landscaping and underground utility work are among the improvements being made.Florida secured $13 million in federal funding for the project in 2005 and design work began in 2007, but it has taken the city years to acquire the many easements necessary to unfurl the plan completely.
It has been interesting for us to watch Parramore, which has a not-entirely-undeserved reputation as a crime hotspot, become one of Orlando's most dynamic neighborhoods. Already home to the Amway Center, it may also soon host a Major League Soccer stadium. And, if Dyer's vision becomes a reality, it could soon be a very energized, very popular entertainment district.
The reason we are keeping an eye on Parramore is that we often represent clients who have commercial real estate interests. We know that finding the right location is of the utmost importance to such clients, so we make every effort so stay abreast of what is happening in and around Orlando. That helps us be responsive and forward-thinking when it comes to meeting client needs.
Source: The Orlando Sentinel, "$17M Church Street makeover finally gets rolling," Mark Schlueb, April 24, 2013
In a statement, Florida Gov. Rick Scott said WWE "could have chosen anywhere in the world to house this new global performance center -- and they chose the Sunshine State." Scott had made business development one of his priorities, so it is understandable that he is very excited by this announcement.
]]> Details on the new training facility are scant at the moment, but sources close to WWE have said they think the new training center will generate 100 jobs, such as sports-medicine specialists and TV-production personnel.Personally, we will be interested to hear how much commercial real estate the facility will occupy and how large it will be.
WWE already operates a training center in Tampa. It is not known whether the Orlando training center will complement the existing facility or replace it.
WWE, which is based in Stamford, Connecticut, already has business connections with Central Florida. It operates a partnership with Full Sail University that provides media students there with business opportunities at WWE.
This training facility represents another example of how the entertainment industry means big business for Orlando. Disney World and Universal Studios are the obvious examples of how our community has converted tourism and entertainment into important sources of revenue, but they certainly are not the only ones. We think Orlando should be proud of how shrewd it has been about attracting entertainment operations and developing them into economic powerhouses.
Source: The Orlando Sentinel, "World Wrestling Entertainment expected to announce new training center in Orlando," Jon Busdeker and David Damron, April 17, 2013
The project is one of an estimated $500 million worth of commercial projects that are planned for the Lake Nona community in the coming two years or so.
]]> The corporate campus will feature:Tenants for the corporate campus have not yet been announced.
The news we have heard lately regarding Lake Nona makes it clear that big things are planned for the community, which spans 7,000 acres in the southeast Orlando area. It is interesting for us to watch how things are unfolding here because it is a rare instance in which one can follow the development of a very large area from concept sketch to open-for-business reality.
That may not sound terribly exciting, but we often work with clients who are pursuing commercial real estate and development opportunities, so we know firsthand how important local approvals, zoning compliance, feasible development plans and designs and adequate financing are.
Lake Nona is one of the Orlando-area neighborhoods we observe closely, so if there is any relevant news in the near future, you can expect a post on it. Our aim with this blog is to keep you informed and up-to-date on important business and legal happenings in and around the Orlando region.
Sources:
If you are interested in learning more, you could visit our Commercial Real Estate page.
]]>An order restraining competition in violation of a restrictive covenant is overly broad to the extent it restricts competition from a potential class of customers as opposed to existing customers in that class, and also it restricts activities other than those specifically set forth in the restrictive covenant itself.
For thorough advice on your rights with regard to covenants not to compete, please contact the Carr Law Firm, P.A.
]]>The Falls at Sand Lake was conceptualized as a 30,000-square foot, $15 million development that would have had retail space, apartments and an adjacent luxury home development. Orlando-based Unicorp National Developments, Inc. was the driving force behind the project.
]]> Apparently, residents were concerned about the additional traffic and strain on utilities and infrastructure that the shopping center would generate. The parcel of real estate that The Falls would have been built on is the former site of a church along Sand Lake Road.Also, Trader's Joe's was one of the original names being bandied about as a possible tenant for The Falls, but it has evidently selected other developments to explore as potential new sites. That seems to have quelled some of the initial buzz about the development.
A spokesman for the developer said he is considering reworking the project to see if it can meet Unicorp's commercial goals while putting to rest some of the concerns of area residents.
Something about this story gives us the feeling that its ending has not yet been written. For one thing, the Board of Commissioners actually approved the residential element of Unicorp's plan (just not the retail portion) and for another, it seems entirely realistic that a plan more in keeping with residents' preferences might be in the near future.
Source: The Orlando Business Journal, "Residents, board nix plan for potential Trader Joe's-anchored shopping center in Dr. Phillips," Anjali Fluker, March 25, 2013
It used to be that towns and cities liked to segregate residential areas away from retail and industrial spaces. It was thought that people preferred to have these spheres kept separate.
However, developers and municipal planners alike have discovered that people find concentrations of recreation, shopping and residences to be convenient and desirable, especially if they're attractively designed and thoughtfully planned out.
If you are interested in purchasing real estate, it is imperative that you protect your investment by fully understanding the legal risks and consequences of such a development by contacting the highly skilled attorneys at the Carr Law Firm, P.A.
]]> We bring this all up because a new mixed-use development called Oviedo on the Park is expected to begin construction in the very near future.The first phase of the project will include a lake, a park and 280 units of apartments. That phase is expected to begin in a matter of weeks and will be done by January 2014. The next phase will include some 85,000 square feet of retail space and between 160 and 170 townhomes.
From groundbreaking to final completion, Oviedo on the Park will take about five years to build. At a kickoff ceremony last week, the mayor of Oviedo said that all told, the development will cost around $200 million and will re-energize the area and give residents a place to meet, shop and live.
P.A.C. Land Development of Winter Park is overseeing the project.
Some mixed-use developers have difficulty getting clearance for their projects because communities have zoning and usage ordinances that would prevent such developments. In some cases, it takes a professional understanding of these rules and how to request a variance in order for them to proceed.
Source: The Orlando Business Journal, "Construction of Oviedo on the Park to begin in a few weeks," Megan Anderson, March 22, 2013
A price for the sale has not been released, but in 2012, the 56,760-square foot shopping center was appraised at $13.9 million, according the Seminole County property appraiser.
]]> 3D Investments made the purchase, which was facilitated by Rockwood Real Estate Management company Urban Retail will continue to oversee the mall's operations, at least for the foreseeable future.Oviedo Mall was known as Oviedo Marketplace until 2010, when its then-owner General Growth Properties sold it to CW Capital. Like many other shopping malls, Oviedo Mall has struggled to give consumers a reason to visit, rather than shop online. There seems to be a general consensus, though, that it has made progress in the past few years in terms of attracting new tenants that interest customers.
This isn't the only noteworthy development in local shopping malls. Last month, Orlando Fashion Square was sold to a Tennessee real estate firm.
These days, there is a lot of activity in and around investment in shopping malls. Some companies are finding out that their expectations for the economic performance of these properties were too high and are seeking to get out of the field entirely, while other businesses see their competitors shedding shopping malls and swoop in, believing it to be an excellent opportunity to snap up an investment that is not being maximized. This has made it an interesting arena to watch.
Source: Seminole Chronicle, "Ovideo Mall sold to LA firm," Jessica J. Saggio, March 21, 2013
Legoland Florida opened on the site of the historic Cypress Gardens attraction, which was billed as Florida's first commercial theme park. It has earned acclaim for maintain the character of the gardens while still creating a unique visitor experience.
As you can imagine, for an operation that is expanding as rapidly as Legoland Florida is, finding and acquiring the right parcels of commercial real estate is very important. Can you imagine what would happen if Legoland needed to acquire a nearby plot of land, but could not? That would put a serious cramp in business.
The need for suitable real estate is in no way limited to Legoland, of course. In fact, it is a concern for any business.
We often assist clients when they are seeking to acquire new real estate, either by purchase or lease. Here are three general tips we often share with our clients:
Sources:
Our Commercial Real Estate page may have more information that is of interest to you.
]]>So far, rumored customers include high-end cosmetics company MAC and luxury designer Dior. There will be several new Disney-branded stores as well, including Trader Sam's Enchanted Tiki Bar and Walt's Place, a casual, family dining establishment.
]]> There's also the rumor that the Planet Hollywood currently at Downtown Disney would relocate to the $200 million I-Drive Live Project where it would join a 200-room Planet Hollywood hotel.This has been very big news in Orlando because Disney is such a huge economic engine for us. It is also a window in Disney's plans for the future. Although "outside" ventures like Rainforest Café and movie theater chain AMC have been tenants of Downtown Disney for quite some time, the presence of non-Disney retail stores like MAC and Dior is something of a departure for The House of Mouse. These retailers also seem to appeal to older, more financially established customers, suggesting that perhaps Disney Springs will be less family-focused than Downtown Disney.
Downtown Disney was founded in 1975 as Lake Buena Vista Shopping Village. It was brought under the Disney umbrella as a way to entice people to stay in and around Disney World longer and has undergone several renovations since its inception.
Sources:
The Commercial Real Estate page of our website may have more information that is of interest to you.
]]>The developers behind a new retail complex on the shores of Lake Killarney in Winter Park certainly hope so.
]]> The 35,500-square foot development, called Lakeside, will open sometime in 2014 and will have a spa, a jewelry store, a fitness center and a bank. A Ruth's Chris Steakhouse is also rumored to be moving in.As far as Trader Joe's, the trendy California-based grocery store, it has stores in Gainesville, Naples and Sarasota, but it was not too long ago that a spokeswoman said it did not plan to come to the Orlando area anytime soon.
Lakeside's developers want to change that. Trader Joe's is a fresh and exciting store that tends to attract affluent, younger shoppers -- the sort of shoppers whom retailers crave. Landing a Trader Joe's would no doubt be a boon to the success of this development.
So, how does one attract a retailer like Trader Joe's to a certain location? That all depends on the retailer in question, but generally speaking, most retailers want some sort of enticement, such as a favorable tax structure, an agreeable lease, escape provisions in case the development does not work out or other economic inducements.
Obviously, those are not things developers or local governments can simply hand out or agree to freely. In most cases, it takes careful and detailed negotiation on the part of a lawyer to generate appealing-yet-practical ways to sweeten the deal. Certainly, not every attempt to land a key retailer is successful, but in many cases, the effort pays off.
Source: The Orlando Sentinel, "Trader Joe's in Winter Park? New retail center raises hopes for luring grocer," David Breen, Feb. 26, 2013
Pennsylvania Real Estate Investment Trust announced last week that it had sold the mall to UP Development of Franklin, Tennessee for $35 million. UP owns several other properties around Orlando, including Millenia Plaza and Shoppes at Alafaya Trail.
]]> At the end of last year, Orlando Fashion Square had an occupancy rate of about 80 percent. It has struggled in recent years, losing many of its big, anchor tenants and experiencing high turnover among small, independent retailers that have seemed to be less popular with consumers. Its sales were $233 per square foot, which is lower than other properties in REIT's portfolio.As we have written about before on this blog, shopping malls across the country are facing challenging times.
Shopping malls were envisioned as destinations. When they were popular, from roughly the 1950s to the early 1990s, customers would make a trip to the mall an event. They'd drift through stores, linger at the food court and generally plan to spend at least an hour or so on site. That translated to nice sales figures for both shopping mall owners and their retailer tenants.
In the past decade or so, though, consumers have seemed to prefer open-air "lifestyle centers" because they don't want to spend so much time shopping anymore, and this layout is easier and more convenient for in-and-out shopping. On top of that, online shopping has grown explosively, further siphoning away would-be customers.
At this point, we are not aware of any dramatic changes UP Development has in store for Orlando Fashion Square, but we are curious to see if it takes a different tack going forward.
Do you still enjoy shopping malls, or do you think they are a format whose moment has come and gone?
Sources:
You are welcome to visit our Construction Litigation page for more information.
]]>Public-sector economic incentives for private-sector development are a controversial issue. Florida is one of the most liberal states in the U.S. when it comes to handing out such incentives, and now Enterprise Florida, its public-private job development body, is facing some criticism over its generous nature.
]]> What has drawn the criticism this time is Enterprise Florida's call to increase economic incentives from $111 million last year to $278 million this year. It also wants $3 million for a new branding and public-awareness campaign, a $10 million "bonus" for itself and permission to open offices in Japan, China and Israel.Several lawmakers have said that ever since Enterprise Florida's wish list was made public, they have been "flooded" with constituent feedback on the issue (not all of which, we ought to point out, has necessarily been negative.)
Elected officials and prominent businessmen and women have also cast a critical eye on how much of Florida's tax incentives have gone to Universal Studios, a firmly well-established business entity that arguably does not need assistance. Many have said they thought the point of a tax-incentive program was to help small businesses, not entertainment industry behemoths.
We wanted to write about this because we believe that a robust, well-informed discussion in which government, business and private citizen voices are engaged is a positive thing for our state. If you have any thoughts, we'd love it if you shared them with us in the comments section below.
Source: The Orlando Sentinel, "Enterprise Florida tries to fight off incentive critics," Aaron Deslatte, Feb. 14, 2013