March, 2009Rich 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?CMSPageID=1718

Goals of Green BuildingLow Impact

Minimal impact on natural environmentEnergy Efficient

Reduced Energy usage and Water usageHealthy

Protect occupant health and increase productivityMinimize waste

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

Green Building CertificationUSGBC, Leadership in Energy and

Environmental Design (LEED)National Association of Home Builders

(NAHB)Green GlobesEarthcraft

Why Seek CertificationBe recognized for your commitment to

environmental issuesThird party verification of achievementQualify for state and local government

initiativesReceive marketing exposure through listing

on USGBC website

LEEDMost popular and widely known certificationProvides third party verificationVariety of rating systems for different

applicationsMost popular are LEED for new construction,

homes, and existing buildings Growth opportunity under stimulus for schools

LEED CreditsSix Categories: Sustainable Sites (14), Water

Efficiency (5), Energy & Atmosphere (17), Materials & Resources (13), Indoor Environmental Quality (15), Innovation and Design (5)

Prerequisites & CreditsLEED Certified (26-32), Silver (33-38), Gold

(39-51), and Platinum (52-69)http://www.usgbc.org/DisplayPage.aspx?

CMSPageID=220

LEED Accredited ProfessionalPass a certification exam

Attorneys will essentially be precluded from becoming certified after March 31st

Gain one point under Innovation and DesignServe as an individual who can bring all the

different team members together

LEED in Florida

LEED in Saint Petersburghttp://www.usgbc.org/ShowFile.aspx?

DocumentID=5109“Our mission is to create healthy, safe, low-

maintenance homes that are responsible ,efficient, attainable and livable.”

Darren Brinkley, REAL Building founderFirst local government of earn Florida Green

Building Coalition approvalState Incentives

http://www.floridagreenbuilding.org/db/?q=node/7016

Role of the AttorneyPrepare the contractsAdvise owners on legislationAdvise owners on availability of tax creditsServe as the LEED APBe knowledgeable regarding green building

practices to obtain the workAddress land use, zoning, and environmental

issuesHandle any potential litigation which may

arise

Captain’s Galley

Capatain’s Galley http://thecaptainsgalley.com/Shaw Development recently filed for

Bankruptcyhttp://www.easternshorehousing.com/Blogs/

Eastern_shore_homes_and_real_estate/?p=1791

Only 3 units are under contract, the restaurant recently closed due to a dispute with Shaw

Units now selling for $247,000 a nearly 50% reduction

Shaw Development v. Southern BuildersOne of the first green litigation cases in the

United StatesNot truly about failure to obtain certification

but rather importance of proper contracting

LitigationFacts

Shaw hired Southern to construct a 23 unit condominium to be built to LEED Silver

Original price was 6.9 Million DollarsSouthern paid 7.45 Million Dollars with change

ordersFinancing obtained totaled 8.97 Million DollarsNearly 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 feesInterest 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 LEEDNot about ContractsNot about hard feelingsThe 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 creditsInterest and attorney fees of foreclosureLoss of the restaurantInterstate Land Sales ActReduced Selling Prices

Possible role of AttorneyReviewing contracts and working on better

language to ensure or encourage LEED Working out credit issuesBringing a dose of reality to clients who still

wanted to sell at peak prices