Monthly Archives: July 2012

Two of the most prominent developers in the Philadelphia area, after working on projects together since 2010, are now locked in a legal battle involving allegations that one siphoned money from two projects the other had undertaken and excluded him from another project. The plaintiff in the case seeks $1.4 million in damages and the right to inspect documents related to each of the three projects. The defendant in the case has called the allegations unfounded.

According to a recent study, faulty property appraisals-thought to be behind excessive purchase prices in various markets-may be a common occurrence in the commercial real estate market. The study, which used data from thousands of securitized real estate bonds in which properties were foreclosed and liquidated, found a substantially wide discrepancy between appraisal values and sales prices on properties examined.

Businesspeople can sometimes get into legal trouble, or at least face ethical criticism, when an appearance of impropriety arises. For those involved in business development, this can arise from a number of situations.

It isn’t often that a national perspective on the real estate market is offered. For the most part, those in the profession tend to focus on commercial, construction, residential or some other specialized market.

Pennsylvania lawmakers recently passed a moratorium on natural gas drilling in the South Newark Basin, a rock formation located in Bucks, Chester, Berks and Montgomery counties. Senator Charles McIlhinney, R-Bucks, was the primary supporter of the moratorium. According to McIlhinney, the moratorium was based on a new scientific study showing the potential of natural gas in the South Newark Basin, highlighting the need to find out where it is and how much is there before drilling.

A business owner recently sued the City of Camden, its zoning officer and the Zoning Board of Adjustments after having his application to use his buildings for the production of medical marijuana. The buildings, which are reportedly vacant, are located near Campbell Soup Co. headquarters and the Cooper University Hospital in Camden. One of the buildings, a vacant Sears store, was recently sold.

At a recent meeting of the National Association of Realtors in Philadelphia, representatives from the housing industry expressed concern over what they called “over-tightening” of credit in the wake of the 2008 financial crisis. The result, they said, has been that too many creditworthy borrowers have become unable to qualify for mortgages. Another result has been that builders have become unable to finance even modest residential-construction efforts.

On Tuesday, a zoning variance which would have permitted the building of a day reporting center for ex-offenders in Southwest Philadelphia was recently overturned by a Common Pleas Court judge. The center was to be part of a wider plan on the part of the Nutter administration to reduce the prison population and make services available to those convicted of nonviolent crime. The plan was to have 10 day reporting centers around the city which would offer job training, drug testing, counseling, and temporary housing.