Economic Development Land Acquisition and Leasing

What does economic development land acquisition and leasing entail?

Economic development land acquisition and leasing encompasses identifying, purchasing, and developing suitable properties for business operations. Developers carry out this process after creating physical plans to address the design and construction of facilities.

Additionally, developers must consider how to structure their leasing operations for businesses they attract to newly-developed locations. For example, build-to-suit leases are tailored agreements where the landlord constructs or modifies a property according to the tenant’s needs, and the tenant leases it long-term. On the other hand, operating leases are short-term agreements where businesses rent assets, such as equipment or property, without taking on the associated ownership responsibilities. Finally, sale-leaseback transactions occur when a business sells its property and leases it back from the buyer, freeing up capital for other purposes.

For example, a manufacturing company may require legal counsel for a build-to-suit lease negotiation, ensuring that the property’s specifications meet its needs while complying with state and federal regulations. Similarly, a healthcare provider may seek guidance on a sale-leaseback transaction, allowing them to retain the use of their facilities while accessing much-needed capital for expansion or debt reduction.

Need help with a matter related to economic development land acquisition and leasing? Schedule your consultation today with a top economic development attorney.

In Florida, which laws and regulations relate to economic development land acquisition and leasing?

Florida laws govern various aspects of land acquisition, build-to-suit leases, sale-leaseback transactions, and operating leases. For example, Florida Statutes Chapter 689 addresses real property conveyances and contracts, guiding property acquisition and lease transactions. The Florida Landlord-Tenant Act, found in Chapter 83 of Florida Statutes, outlines landlords’ and tenants’ rights and responsibilities in lease agreements. Additionally, the Florida U.C.C. will likely apply to any commercial leasing agreement.

Federal laws and agencies such as the U.S. Environmental Protection Agency (EPA) also impact these transactions. For example, the EPA enforces environmental regulations like the Comprehensive Environmental Response, Compensation, and Liability Act. Accordingly, CERCLA and related regulations affect land acquisition and development decisions.

What are common issues regarding economic development land acquisition and leasing that lead to litigation?

The following issues are among the most common in litigation involving economic development land acquisition and leasing:

• Disputes Over Land Ownership or Title: Conflicting claims or incomplete documentation can lead to disagreements about the rightful owner of a property, complicating the process of selecting and acquiring land.
• Environmental Issues: Contamination or regulatory compliance concerns can lead to disputes about ecological liability, potentially affecting transactions related to selecting and acquiring land or entering into leases.
• Breach of Lease Terms: Disputes can arise if one party does not fulfill its obligations under the terms of a build-to-suit lease, sale-leaseback transaction, or operating lease, potentially leading to litigation.
• Zoning and Land-Use Disputes: Conflicts can arise if a proposed development or land use does not comply with local zoning regulations, potentially affecting the feasibility of a project or transaction.
• Misrepresentation or Fraud: If a party involved in a land transaction or lease agreement provides false or misleading information, they may face accusations of fraud.
• Disputes Over Rent or Lease Payments: Disagreements about the amount or timing of rent or lease payments can lead to litigation between parties involved in build-to-suit leases, sale-leaseback transactions, or operating leases.

What are effective measures to minimize the risk of litigation over economic development land acquisition and leasing?

Implementing the following strategies may help mitigate risk:

• Perform Thorough Due Diligence: Conduct a comprehensive investigation of the property, including reviewing title records, environmental assessments, zoning regulations, and any other relevant documentation to identify potential issues before proceeding with a transaction.
• Engage Qualified Professionals: Work with experienced attorneys, surveyors, environmental consultants, and other experts to ensure that transactions are appropriately structured and comply with applicable laws and regulations.
• Draft Clear and Comprehensive Agreements: Carefully draft lease agreements and other contracts to clearly understand each party’s obligations and responsibilities, reducing the likelihood of disputes over ambiguous or poorly defined terms.
• Establish Dispute Resolution Mechanisms: Include provisions in contracts and lease agreements that provide alternative dispute resolution methods, such as mediation or arbitration, to help resolve disputes more efficiently and cost-effectively than litigation.
• Maintain Open Communication: Foster open and transparent communication with all parties in a transaction or lease agreement. This transparency can help identify and address potential issues before they escalate into legal disputes.
• Monitor Compliance with Lease Terms and Regulations: Regularly review lease agreements and ensure compliance with applicable laws and regulations, promptly addressing potential breaches or violations.

When a set of facts is appropriate to meet litigation requirements, there are many paths a claimant may take. We are value-based attorneys at Jimerson Birr, which means we look at each action with our clients from the point of view of costs and benefits while reducing liability. Then, based on our client’s objectives, we chart a path to seek appropriate remedies.

To determine whether your unique situation may necessitate litigation, please contact our office to set up your initial consultation.

Frequently Asked Questions

1. What are the typical due diligence steps in acquiring land in Florida?

Due diligence typically involves a comprehensive title search, examination of zoning regulations, environmental assessments, and property inspections. This process ensures the buyer knows potential issues or restrictions before finalizing the transaction.

2.  How do government incentives impact real estate transactions in Florida?

Government incentives, such as tax credits, grants, and low-interest loans, can make certain transactions more attractive to businesses. In addition, these incentives can help offset costs associated with land acquisition, development, and lease arrangements. To take advantage of these incentives, businesses should research available programs and consult with legal and financial advisors.

3.  What factors should parties consider when negotiating a build-to-suit lease or sale-leaseback transaction?

Key factors to consider when negotiating these transactions include lease term length, rent escalation clauses, tenant improvement allowances, maintenance responsibilities, and options to renew or purchase the property. In addition, engaging experienced legal counsel is crucial to ensure a fair and balanced agreement that benefits both parties.

Have more questions about governance or operations for your business?

Crucially, this overview of economic development land acquisition and leasing does not begin to cover all the laws implicated by this issue or the factors that may compel the application of such laws. Every case is unique, and the laws can produce different outcomes depending on the individual circumstances.

Jimerson Birr attorneys guide our clients to help make informed decisions while ensuring their rights are respected and protected. Our lawyers are highly trained and experienced in the nuances of the law, so they can accurately interpret statutes and case law and holistically prepare individuals or companies for their legal endeavors. Through this intense personal investment and advocacy, our lawyers will help resolve the issue’s complicated legal problems efficiently and effectively.

Having a Jimerson Birr attorney on your side means securing a team of seasoned, multi-dimensional, cross-functional legal professionals. Whether it is a transaction, an operational issue, a regulatory challenge, or a contested legal predicament that may require court intervention, we remain a tireless advocate every step of the way. Being a value-added law firm means putting the client at the forefront of everything we do. We use our experience to help our clients navigate even the most complex problems and come out the other side triumphant.

If you want to understand your case, the merits of your claim or defense, potential monetary awards, or the amount of exposure you face, you should speak with a qualified Jimerson Birr lawyer. Our experienced team of attorneys is here to help. Call Jimerson Birr at (904) 389-0050 or use the contact form to schedule a consultation.