HomeMy WebLinkAbout10 SPECIAL COUNSEL 12-02-02AGENDA REPORT
NO. 10
12-02-02
MEETING DATE: DECEMBER 2, 2002
TO:
FROM:
SUBJECT:
WILLIAM A. HUSTON, CITY MANAGER
LOIS JEFFREY, CITY ATTORNEY AND CHRISTINE SHINGLETON,
ASSISTANT CITY. MANAGER
APPOINTMENT OF SPECIAL COUNSEL- REAL ESTATE SERVICES -
TUSTIN LEGACY
SUMMARY
Given the size and scope of the Master Developer solicitation for the Tustin Legacy
Project and current and anticipated real estate negotiations for the project, authorization
for special real estate attorney services is being requested.
RECOMMENDATION
It is recommended that the City Council authorize the appointment of special counsel
under the City Attorney's office for real estate services for Tustin Legacy.
FISCAL IMPACT
The City's 2002-03 MCAS Tustin Enterprise Fund identified anticipated funding for legal
services of $280,000. Legal charges related to real estate transactions for the Tustin
Legacy project will be expensed against future anticipated land sales.
BACKGROUND/DISCUSSION
As the City proceeds with implementation activities associated with the Tustin Legacy
project including major real estate disposition activities, the City Attorney's office, and
Tustin Legacy consultant and our Agency staff have identified the need for special real
estate attorney services. These needs are immediate and would be in addition to any
support that would still be needed from the City Attorney's office and from special
counsel George Schlossberg. The ability to meet critical schedules will require the full
and undivided attention of special legal counsel for an extended period of time. The
complexities of the size and scale of the real estate transactions envisioned for Tustin
Legacy make it extremely important that the City retain such legal real estate resources.
An experienced transactional real estate attorney would place the City on an equal
footing with the legal counsel available to private developers in completing transactions
for the project. Millions of dollars are at stake in these transactions.
As the Council is aware, the City is currently negotiating with John Laing Homes on
Parcel 33 and it is important that we complete this transaction in early 2003. The City is
also currently negotiating with John Laing Homes on Parcel 34 with the desire for a
transaction to be completed in Fall 2003. The'Retail site Business Plan submittals are
anticipated on December 19, 2003 and we anticipate a closing on that transaction also
in the Fall of 2003. We also are in the process of preparing a Request for Qualifications
for a Master Developer which will be brought to the market in January.
The complexity, size and scale of these real estate transactions make it extremely
important that the City have special real estate legal resources.
Five firms (both small and large) with strong transactional real estate experience were
interviewed by the City Attorney's office and Agency staff. The team unanimously
recommends the engagement of the firm of Gilchrist and Rutter. The two primary
attorneys from the firm who will be committed to the project include James R. Andrews
and Amy Freilich, both of whom have a tremendous amount of experience in public-
private real estate transactions. A copy of the firm's background is attached along with
a recommended engagement agreement.
All expenses associated with disposition of property in the Tustin Legacy project is an
allowable expense against land sale proceeds. Attorney services were projected as
part of the 2003 FY Budget for the MCAS Tustin Enterprise account.
Christine Shing
Assistant City Manager
Lois Jeffrey,
City Attorney
LAW OFFICES
GILCHRIST & RUTTER
PROFESSIONAL CORPORATION
WILSHIRE PALISADES BUILDING
1299 OCEAN AVENUE, SUITE 900
SANTA MONICA. CALIFORNIA 90401-1000
November 21, 2002
TELEPHONE (31 O) 393-4000
FACSIMILE (310) 394-4700
E-MAIL: jandrewsg rlawyers.com
Mayor and Members of the City Council
City of Tustin
300 Centennial Way
Tustin, California 92780
Attn: Lois E. Jeffrey
City Attorney
Re: Engagement Agreement for Special Counsel Services
Dear Honorable Mayor and Members of the City Council:
Gilchrist & Rutter Professional Corporation is pleased to present this Agreement for
Special Counsel Services to the City of Tustin. As required by the State Bar of California, we
are providing you with this engagement letter, and the accompanying Memorandum Regarding
Billing and Fee Arrangement ("Memorandum"). Together, they set forth the administrative steps
our Firm will follow in accepting this engagement and the general terms of our agreement to
represent you.
We want to thank you for the opportunity to serve you in this matter. We believe that
starting off with a good mutual understanding of the services to be performed and who will
perform them, together with an understanding of the billing and fee arrangements, is the key to a
mutually successful relationship. Please let us know immediately if you have any questions
regarding any aspect of the matter which we are going to be handling for you, regarding this
letter, or regarding the accompanying Memorandum.
1. Scope of Representation.
You have asked us to represent you initially with respect to providing advice and
preparing necessary documents in connection with the sale and disposition of property owned by
the City of Tustin at the former Marine Corps Air Station in Tustin. Such property may be
transferred for financing purposes to the Tustin Public Financing Authority.
It is anticipated that you may engage our Firm with respect to various related
matters on an "as-needed" basis when and as they arise. In undertaking this legal representation
on a special assignment basis only, we will be working for you only at your specific instruction
as you shall unilaterally determine. Accordingly, we are not undertaking any general counsel
Mayor and Members of the City Council
November 21, 2002
Page 2
functions of review, oversight or advice concerning legal matters that may effect you and with
which our specific assignments are not involved. Because of the limited nature of our legal
representation of you in connection with this representation, our standards of practice do not
permit our Firm's name to be utilized or referred to in connection with the phase or term
"general counsel" on any corporate literature, public agency, filings, offering materials or selling
literature concerning securities, or in any other way, without our prior written consent. If you
subsequently determine that you desire our Firm to serve as general counsel, we will be pleased
to then specify in writing as we may mutually agree the nature and scope of our engagement at
that time.
2. Responsible Lawyers.
I, along with Amy Freilich, one of my partners, will be the attorneys primarily
responsible for doing this work. Our governmental hourly rates are $$335 and $295,
respectively. Other attorneys that may be engaged from time to time at City's discretion are:
Donald Nanney at $295 per hour.
When it is economically efficient to do so, we may employ one or more other
lawyers or paralegals in our firm to assist us. However, regardless of who else might work under
my supervision on this matter for you, you may contact me directly any time you wish to discuss
your matter. The hourly rates for any lawyers we may employ will vary between $175 and $275
depending upon the seniority of the lawyer. The rate for our paralegals and legal assistants is
$150 per hour. No more often than once a year our rates are modified to reflect increases in the
consumer price index. We agree not to modify the rates we charge the City prior to 2004.
3. Fee and Billing Arrangements.
Our standard fee and billing arrangements are set forth in the enclosed
Memorandum. As I mentioned in our previous correspondence, there are two modifications that
will be applicable for work performed on behalf of the City of Tustin. We will not charge for the
time or cost of travel between our office and locations in Los Angeles and Orange County. Nor
will we request a retainer or deposit. Please let me know promptly if you have any questions
regarding the Memorandum; otherwise, a signature below approving this letter and the
Memorandum indicates your acceptance of such terms.
In fairness to the majority of the Firm's clients who pay their bills promptly each
month, late payment charges have been established so that the minority of clients whose
accounts become delinquent will bear the Firm's cost of late payment, enabling us to render top
quality legal services at the lowest possible expense to our clients. Consequently, if payment is
not received by the 30th day following the date the invoice in question is mailed, a late payment
charge of one percent (1%) of the outstanding balance owed will be added to your statement for
Mayor and Members of the City Council
November 21, 2002
Page 3
the month following the date of such unpaid invoice and for each month thereafter until payment
is received.
As requested by the City Attorney we will send our invoices to: Lois E. Jeffrey,
Woodruff, Spradlin & Smart, 701 S. Parker Street, Suite 8000, Orange, CA 92868.
4. File Retention Policy.
In the course of your representation, we shall maintain a file. In such file we may
place correspondence, pleadings, deposition transcripts, exhibits, physical evidence, expert's
reports, and other items reasonably necessary to your representation ("Client File"). The Client
File shall be and remain your property. We may also place in such file documents containing our
attorney work product, mental impressions or notes ("Work Product"). You agree that the Work
Product shall be and remain our property.
At the conclusion of our representation (which is defined as the time that our
work on the matter specified in this letter has been completed), your Client File (but not
including the Work Product) shall be made available to you, and you shall have the right to take
possession of any and all original contracts, and other important documents that may be in the
Client File and we shall have no further responsibility with regard to such documents.
If you do not take possession of the Client File at the conclusion of the
representation, we shall store such file for you for a period of seven (7) years. While we store
your Client File for you, you will have the right to take possession of it at any time that you
choose. On the lapse of the seven (7) year period, we may send you a notice to the last address
that you have provided us advising of our intention to dispose of the Client File. You shall have
sixty (60) days from the date of such notice to take possession of your Client File. If you do not
take possession of the Client File within such 60-day period, you agree that we may dispose of
the Client File without further notice to you.
5. Insurance.
For your information, our malpractice insurance coverage is maintained with
Lloyds of London. Our coverage is $8 Million per event and $8 Million aggregate. Our self-
insured retention is $50,000. Our current policy period is March 24, 2002 through March 23,
2003.
Pursuant to your request, the City of Tustin will be added on to our
comprehensive general liability coverage as an additional insured. Please provide me with the
precise name and the mailing address of the entity to be added. This coverage does not apply to
any automobile loss.
Mayor and Members of the City Council
November 21, 2002
Page 4
Please contact me immediately if this letter does not accurately reflect your
understanding of our agreement. Any corrections or changes must be in writing and signed by
both of us. Otherwise, please sign and return the enclosed acknowledgment copy of this letter,
at your earliest convenience. A self-addressed, stamped envelope is enclosed.
We are delighted to be working with you, and look forward to a long prosperous
relationship in accomplishing your objectives.
Very truly yours,
JRA/AEF:yb/84687_3.DOC/112102
1234.001
GILCH.RIST~
[ /- James R. Andrews
// Of the Firm
Enclosures
The foregoing engagement letter, together with the accompanying Memorandum Regarding
Billing and Fee Arrangement, accurately sets forth all of the terms of your engagement and is
approved and accepted this __ day of ., 200_.
CITY OF TUSTIN
By:
Name:
Its:
GILCHRIST & RUTTER
PROFESSIONAL CORPORATION
Memorandum Regarding Billing and Fee Arrangement
Mutual Understanding. We are pleased to have the opportunity to serve you. Our
experience has shown that our relationship will be best served if we start with a clear mutual
understanding about fees, costs and their payment. Unless our engagement letter transmitting
this memorandum to you alters these arrangements, we will assume that the following terms are
acceptable to you.
Conflicts of Interest. The Firm's intake procedures require that a fully executed copy of
the engagement letter be submitted to the Management Committee of the Firm for approval,
review of any conflicts of interest be undertaken based upon the information that you have
provided us and that certain other routine clerical steps be completed. Subject to satisfying these
procedures, we will open a file and commence work for you on this matter. Should it later
develop that, based upon information that was not known at the time we started work, a conflict
of interest exists or has developed, we will immediately contact you to determine what options
we have within the ethical considerations of the Code of Professional Responsibility to resolve
the matter or to help you obtain other counsel.
Fees for Services. Our normal billing practice is to base legal fees on the amount of time
devoted to a matter at hourly rates for the attorneys and other personnel (such as paralegal
assistants) involved in the project. Any other fee arrangements must be agreed to by you and us
in writing. Our fees are adjusted from time to time to take account of various factors, including
increased costs. You will be notified in writing of any adjustments of fees. The hourly rates for
attorneys and paralegals in the Firm presently range from $150 for certain paralegals to $450 for
the most experienced lawyers. It is not possible at the beginning of any project to determine
exactly the nature, extent and costs of the legal services that may be required. Even carefully
prepared estimates may turn out to be high or low. Naturally, we will endeavor to minimize
attorneys' fees and costs in keeping with sound legal practices and we will keep you apprised
with monthly billings. Our experience has been that our clients consider our fees to be
reasonable in light of the responsibilities assumed, the effort expended, the results achieved and
the expediency with which the project is completed.
Costs and Expenses. There are certain costs and expenses (in addition to the fees for our
legal services) that you will be obligated to pay, if incurred, such as sheriffs', marshalls' or
process servers' fees, filing fees and other court costs, court reporter fees, jury fees, messenger
charges, telecopier charges, computerized search fees, word processing charges, printing and
photocopying costs, travel costs, transcript fees, parking charges, recording fees, telephone toll
charges, fees for experts and other consultants retained on your behalf, and other similar costs
and expenses. We will consult with you prior to incurring costs which individually exceed $500.
In the case of a large amount, we may request that you send a check to us before the end of the
billing period or that you pay these charges directly.
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Statements. We generate invoices as of the 20th day of each month which are sent to
our clients on or about the 25th day of each month. All amounts as billed are due and payable on
receipt. The statements we send you will state the current status of your account, both for
services rendered and for costs incurred on your behalf. At any time you request, we will
provide a statement to you no later than ten (10) days following your request. You are entitled to
make subsequent requests for statements at intervals of no less than thirty (30) days. You have
the right to have the form of statement for services in any reasonable manner you choose,
including a summary billing, a bill reflecting time entries, a bill reflecting date, task and attorney
or an abbreviated bill. The form of our statement will include the date, task and time devoted to
each task, unless you request otherwise in writing.
Retainer and Deposit. A retainer typically is required for all new clients, and we have
agreed to an initial retainer as set forth in the engagement letter transmitting this memorandum to
you. Any retainer is, of course, a deposit for payment of a portion of the legal fees and costs to
be incurred. Except to the extent that legal fees are accrued and costs are incurred, any retainer
we hold will remain your property and you are entitled to request a refund of any unused portion
without interest pursuant to applicable law. As legal fees and costs are incurred, we will apply
any unused portion of the retainer to those amounts. At any time that the balance in your retainer
account, as shown on the monthly statement, falls below one-half (1/2) of the original amount,
you agree to replenish the retainer account immediately up to the original amount, in addition to
the payment of any outstanding fees and costs. By your execution of the engagement letter, you
are authorizing us to apply your retainer to pay the outstanding balance of your account in the
amount reflected in our most recent statement to you. We may require additional retainers, from
time to time, as we deem necessary. In the event this matter involves a trial, arbitration or other
contested proceeding, we may require an additional retainer substantially in advance of the trial
in an amount deemed appropriate by our Firm.
Discharge and Withdrawal. We will endeavor to represent you promptly and effi-
ciently according to the highest legal and ethical standards. You have the right to terminate our
services, however, at any time upon written notice to us. We also have the right to terminate our
services to you, upon written notice, if you fail to pay for our services in a timely manner, if you
fail to cooperate with a reasonable request or if we determine that continued representation of
you would be unethical, impractical, improper or otherwise undesirable. We each agree to sign
any documents reasonably necessary to complete any such termination.
Attorneys' Fees and Costs. If there is litigation or arbitration to enforce this agreement,
the prevailing party will be entitled to receive its attorneys' fees and costs. California law will
apply in connection with this agreement.
Disclaimer of Guarantee. We have made no representations, promises or guarantees to
you about the outcome or success of your matter. Nothing in this agreement shall be construed
as such a promise or guarantee and your obligation to pay the fees and costs incurred in
connection with this matter is not dependent in any way on the success of the matters on which
you consult with us.
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Lien. You hereby grant the Firm a lien on any recovery, or right to recovery, by way of
settlement, judgment, or otherwise, obtained on your behalf. Our lien will be for all amounts due
and owing by you to the Firm.
Termination or Conclusion. Upon the termination or conclusion of our services, all
unpaid charges for services rendered and costs incurred or advanced through the termination or
conclusion date shall become immediately due and payable. We acknowledge our obligation,
upon your demand, to deliver your file to you at or after the termination or conclusion of our
services. We are entitled to retain a copy of your file. Should we determine not to maintain your
file following completion of the performance of work on the retained matter, we shall provide
you, in writing, with the opportunity to retain the file. Should you not wish to retain the file or
should you not respond to us in writing within 30 days of our letter with instructions to forward
the file to you, then we shall be entitled to discard the file in our discretion.
Litigation Matters. You acknowledge that your engagement of our Firm does not
extend to the provision of tax advice, investment planning, or the tax ramifications of any
payments made or received during the course of any litigation handled by our firm. Your
engagement of our Firm extends to services in connection with litigation at the trial or arbitration
level only. Any appellate work on such matter will be the subject of a separate retainer
agreement executed by both parties after the merits of an appeal are evaluated.
Professional Liability Insurance. Our Firm maintains Professional Liability Insurance
applicable to the legal services to be rendered to you.
Additional Matters. If you request us to represent you in additional matters, these terms
will apply to such matters, unless we both agree otherwise in writing.
Questions. If you have questions about any aspects of our fee arrangement or our
statements, feel free to raise those questions with the lawyer responsible for your work or, if you
prefer, with our Controller. It is important to us that we proceed on a mutually clear and
satisfactory basis in working with you. We are open to discussing all of these matters, including
the amount of our statements, and we encourage you to be frank with us about them.
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JAMES R. ANDREWS
Relevant transactions in which Mr. Andrews has acted as counsel include the following:
Los ANGELES COUNTY
References: Ray Fortner, Assistant County Counsel
William Lewis, Retired
(213) 974-1804
(541) 617-5772
FIRST STREET DEVELOPMENT.
Mr. Andrews was outside counsel for the County in the proposed public-private
development of two major blocks owned by the County in downtown Los Angeles. The blocks
are south of First Street and separated by Grand Avenue. The County proposed that a forty plus
story office building be constructed on the first block and a concert hall be constructed on the
second block. Ultimately, the office building was not constructed because of economic
conditions, and the Disney Concert Hall is under construction.
Mr. Andrews' role included the preparation of the Request For Proposals for both
developments, the analysis of the responses and the process of interrelating with the bidders.
This process included an analysis and review of the various bids with economic consultants to
determine the actual economic value of the bids to the County. Mr. Andrews also was involved
with the decisions naming the successful bidders.
Mr. Andrews' role included participation with a larger team in the negotiation of the
various agreements necessary to award the development rights. These agreements included
long-term ground leases, guarantees, construction agreements, easement agreements and other
related documents. The negotiations of the agreements include working with County Officials,
County Counsel, the local Community Redevelopment Agency, and counsel for the successful
bidders.
DISNEY CONCERT HALL.
Mr. Andrews aided County Counsel in overseeing the preparation of the required EIR for
the Disney Concert Hall and in the successful defense of the EIR in litigation that was brought
by local groups. In addition to working with County Counsel, this process included working with
environmental consultants, traffic consultants and economic consultants, and with a review of the
pleadings filed with the Court.
WHITNEY CANYON DISPOSAL SITE.
Mr. Andrews represented the County in negotiations to create a public-private waste
disposal site on property owned by the County near Santa Clarita in northern Los Angeles
County. The transaction included a proposed swap of certain land owned by the County with
other land owned by the Federal Government, so that the disposal site would include an entire
[J RA:dj w/84089_1 .DOC/102402/1234.001 ] 1
County. Thus, there were three-way negotiations involving the County, the developer and the
U.S. Forest Service. After many months of negotiations this transaction was abandoned by the
County.
As part of this transaction Mr. Andrews worked with environmental consultants in the
preparation of the required EIR and FEIR.
CHILDRENS HOSPITAL OF LOS ANGELES
Reference: Thomas Armitage, Vice President- Legal (323) 669-2425
VERMONT-SUNSET MTA STATION.
Mr. Andrews represented Childrens Hospital of Los Angeles in the proposed public-
private development of an offiCe and retail complex to be constructed on land owned by the
Hospital over the Vermont-Sunset MTA Station. The MTA needed a temporary taking of a
portion of a comer lot owned by the Hospital and proposed that the Hospital contribute this lot to
a venture in which the MTA would contribute adjacent lots that it would acquire by eminent
domain. Ultimately, the complex was not constructed.
Mr. Andrews' work included negotiation with the MTA concerning the initial temporary
taking and proposed joint venture. After negotiations on this public-private development
terminated, Mr. Andrews negotiated the taking by the MTA of that portion of the lot needed for
surface access to the MTA Station.
AMBULATORY TOWER.
Mr. Andrews represented Childrens Hospital of Los Angeles in the acquisition of the site
on which the Hospital constructed its Ambulatory Tower. The site was immediately adjacent to
the Hospital and was owned by the Queen of Angels Hospital. The negotiations were extremely
complicated, because Queen of Angels had previously entered into a development agreement for
the site with a private group. This group unsuccessfully argued that they had vested rights on the
site.
After the site was acquired, Mr. Andrews represented the Hospital in the negotiation of
the construction contracts and lease of portions of the Tower. During construction, Mr. Andrews
represented the Hospital in leasing other space near to the Hospital to house facilities that were to
be transferred to the Tower.
CB RICHARD ELLIS INVESTORS
Reference: Charles "Duke" Runnels, Managing Director
(213) 683-4348
Mr. Andrews has recently represented CB Richard Ellis Investors in developing a Section
1031 tenants-in-common program. This is a very complicated program. The prototype is
presently being marketed. The prototype includes five commercial and retail parcels with a total
[JRA:djw/84089_l .DOC/102402/1234.001 ] 2
value of approximately $70,000,000, .subleased to a Master Tenant, optioned to an option holder
and then divided into tenancy-in-common units that are sold to investors.
Mr. Andrews' role included the .development of the program (which included extensive
discussions with tax counsel and PricewaterhouseCoopers), the preparation of the Master Lease,
Option and related documents, the negotiations with the lender, the title company option holder,
and the securities brokers, the acquisition of the properties, and the oversight of the sales.
[JRA:djw/84089_l .DOC/102402/1234.001 ] 3
AMY E. FREILICH
Relevant transactions in which Ms. Freilich has acted as lead counsel include the following:
Los ANGELES TO PASADENA METRO BLUE LINE CONSTRUCTION AUTHORITY ("AUTHORITY")
References: Richard D. Thorpe, Chief Executive Officer (626) 799-0080
Habib Balian, Chief Administrative ~Officer (626) 799-0080
GOLD LINE JOINT DEVELOPMENT PROGRAM.
Ms. Freilich was selected by the Authority to develop the its joint (public/private)
develOpment policy and to lead its site joint develOPment effort. The Authority has been tasked
with construction of a light rail transit system from downtown Los Angeles to Pasadena. The
Authority has a budget shortfall and has required that a certain portion of this shortfall be made
up from joint development, triggering the need for an expedited joint development process. This
ongoing process has included analysis of sites along the 13.7 mile initial phase for their
development potential, development of a joint development policy, development and issuance of
requests for proposals for each of the proposed sites to the private development community, and
analysis of proposals received. Ultimately, at least four sites will be subject to joint development
with in excess of $150,000,000 in development planned. Sites include key locations in
Chinatown in the City of Los Angeles and adjacent to Old Pasadena in the City of Pasadena.
Ms. Freilich's role has included developing the joint development policy and strategy for
this effort and leading this process from conception through closing of each site, commencing ~
with analysis of the joint development potential of each site, including the land use,
environmental and, assisted by economic consultants, the economic characteristics of each site.
Additional transactional work has included the drafting, negotiation of and supervision of others
with respect to preparation of requests for proposals, exclusive negotiating agreements, purchase
and sale agreements, construction agreements, reciprocal easement agreements (for parking and
transit access), security and guaranty instruments and other related documents. In connection
with this effort, Ms. Freilich prepared a request for proposal including form purchase and sale
and related documentation to streamline the development efforts at the various sites.
DEL MAR STATION SITE.
Negotiations .have been completed at the Del Mar Station Site, adjacent to Old Pasadena,
and the property sold by the Blue Line Authority to a private developer who will construct 350
units of rental housing with mixed-use retail. The total transaction value is approximately $50
million. The transferred site is bisected by a rail right of way, over which the developer will
construct housing. The transaction therefore required sale and control of air rights over the track,
requiring numerous title issues to be dealt with as well. The developer has been engaged by the
Blue Line Authority, utilizing a Parking Development Agreement negotiated by Ms. Freilich, to
provide 600 underground parking spaces to be dedicated for transit use, and complex
negotiations ensued regarding timing of construction, as construction of rail right of way,
[AEF:yb/83603_2.DOC/103002/1234.001 ] 1
parking and private development were undertaken simultaneously. Documentation also included
a long term reciprocal easement agreement setting forth the relationship between parking owner,
developer and rail transit operator with respect to maintenance, operation and repair of the
facility.
Negotiations are being carried out simultaneously on three other joint development sites
and with the City of Pasadena, which is seeking to purchase both land and parking interests, and
has required the careful integration of the rail construction program with the private development
program. In carrying out this task Ms. Freilich has been responsible for supervising attorneys at
several other law firms, as well as financial analysts and environmental consultants.
THE CITY OF LOS ANGELES ($350 MILLION STAPLES CENTER ARENA).
References:
Patricia V. Tubert, Esq:,
Chief of Municipal Counsel Branch - Office of City Attorney
Gerry Miller, Executive. Officer
(Office of the Chief Legislative Analyst)
(213)485-7657
(213) 473-5746
Real estate counsel for the City of Los Angeles in connection with a 55-year ground lease to a
private developer for development of the Staples Center Arena (home of the Los Angeles Kings,
Lakers and Clippers) and related retail and entertainment in downtown Los Angeles. The
transaction required negotiation of a non-subordinated ground lease which provided protection to
the City while providing terms acceptable to commercial lending institutions. In addition, the
transaction required acquisition of $70 million in property surrounding the Convention Center to
be utilized initially for parking and ultimately for development of a major retail hotel and
entertainment complex. Documents negotiated by Ms. Freilich included a Development
Agreement, Disposition and Development Agreement, Ground Lease, Reciprocal Easement
Agreement, Staging Area License and various easement agreements and financial guaranties.
The arena transaction, negotiated in a short time frame and with significant political input and
public attention, resulted in the City achieving its economic goals of no public subsidy while
providing substantial stimulus to the downtown economy. Although the protracted negotiation
process reduced public subsidies for the developer from over $150 million, we were able to
move this project from "concept" to "ground-breaking" in less than 19 months.
THE METROPOLITAN WATER DISTraCT OF SOUTHERN CALIFORNIA (MWD).
References:
Gilbert F. Ivey, Vice President
and Board Executive Officer
Jeff Kightlinger, General Counsel
(213) 217-6000
(213) 217-6000
MWD UNION STATION HEADQUARTERS FACILITY.
Real estate counsel to The Metropolitan Water District of Southern California (MWD) in
cmmection with its site selection and development of a $135 million, 500,000 square foot
headquarters facility at Union Station in downtown Los Angeles (completed December 1998).
[AEF:yb/83603_2.DOC/103002/1234.001 ] 2
This assignment commenced in 1992 with development of a strategy for selection and analysis of
proposed alternativ, e headquarters sites, in which Ms. Freilich was a key participant. This phase
required analysis of 15 development proposals, eStablishment of a selection process and criteria
and negotiations with numerous developers, culminating in the selection of Union Station as the
location and Catellus Development Corporation as the developer. Ms. Freilich's responsibilities
for the second phase included overseeing California Environmental Quality Act compliance,
acquisition of'entitlements and complex real estate and construction documentation negotiations
with Catellus and Pankow Construction Company. The fact that this project was completed
three months ahead of schedule and approximately $5 million under budget is generally
attributed to the modified "design/build" project delivery system that was devised and
implemented specifically for this project.
OTHER MWD PUBLIC-PRIVATE DEVELOPMENT PROJECTS.
Ms. Freilich also served as special real estate counsel to the MWD in connection with:
(1) the sale of 45 acres of property to Shea Homes adjacent to the environmentally sensitive
Bolsa Chica Wetlands, including transfer in trust of a 24-acre wetlands parcel for wetlands
preservation purposes; (2) development of the public-private development strategy for
development of a 2,000-acre reservoir-adjacent recreation project in Riverside County.
Los ANGELES COUNTY METROPOLITAN TRANSPORTATION AUTHORITY (MTA):
References:
Velma Marshall, Real Estate Manager
Joyce Chang, Office of County Counsel
Jeff Lyon, Office of County Counsel
(213) 922-2415
(213) 922-2502
(213) 922-2513
MTA HEADQUARTERS FACILITY/MULTIMODAL TRANSPORTATION CENTER.
Following site selection by RTD, the MTA was created by state statute merging RTD and
the Los Angeles County Transportation Commission CLACTC"). The new entity was
immediately engulfed in a crisis regarding competing RTD and LACTC headquarters proposals.
In highly charged proceedings, the RTD proposal was ultimately selected. Amy Freilich was a
leading member of the team which steered the project through that process. Subsequently, Ms.
Freilich represented the MTA with respect to its construction of a $350 million joint
development project at Union Station in downtown Los Angeles, California, including the
600,000 square foot MTA headquarters and a multi-model transit facility at Union Station in
downtown Los Angeles (completed October 1995). This work included scoping and strategy
with respect to CEQA compliance, acquisition of entitlements (including CLIP tract map and
transfer of development rights)and complex real estate negotiations for the Gateway Center
multi-modal (bus, light rail and subway) transit and parking facility and for the MTA
headquarters project which, in its initial form, included substantial equity participation rights for
MTA.
[AEF:yb/83603_2.DOC/103002/1234.001 ] 3
WESTLAKEflVIACARTHUR PARK.
Ms. Freilich was retained by MTA in 1997 to assist in development of a 400,000 square
foot retail complex to be located at the Westlake/MacArthur Park Metro Rail Red Line Station in
Los Angeles. Although the project is currently dormant, this assignment included scoping and
review of NEPA and CEQA documentation for the Red Line Westlake/MacArthur Park Station
Master Plan; review of financing proposals; negotiation with an adjacent owner of medical
facilities; initial discussions with selected developer Catellus Development' Corporation; and
advice with respect to obtaining required entitlements.
RED LINE EASTERN EXTENSION DEIS/DEIR AND FEIS/FEIR AND JOINT DEVELOPMENT
STUDY.
Ms. Freilich was retained as a subconsultant to MTA with respect to scoping and
"bulletproofing" of environmental documentation. This role evolved into a study ofjoint
development opportunities at two proposed Metro Rail Red Line station sites (Little Tokyo and
Cesar Chavez/Soto) including evaluation of development potential, ownership and land
acquisition requirements, entitlements and highest and best use analysis.
ANSHCHUTZ SOUTHERN CALIFORNIA SPORTS COMPLEX~ LLC
GALAXY SOCCER STADIUM AND SAMPRAS TENNIS ACADEMY,
CALIFORNIA STATE UNIVERSITY, DOMINGUEZ HILLS.
References: Kevin Rieger, Project Manager (213) 742-7452
Ms. Freilich is currently providing entitlement and California environmental quality act
review, compliance and litigation assistance with respect to the Galaxy Soccer Stadium, Sampras
Tennis Academy and related facilities on the campus of California State University, Dominguez
Hills in Carson, California. Efforts include negotiation with City of Carson and California State
University regarding entitlement, open space and signage, including provision of electronic
marquee advertising signage adjacent to 405 and 91 freeways in the City of Carson.
[AEF:yb/83603_2.DOC/103002/1234.001 ] 4
GILCH~ST & RUTTER
Real Estate
Business & Corporate
Litigation
Environmental
Bankruptcy.
Employment
Trusts & Estates
Wilshire Palisades Building
1299 Ocean Avenue
Santa Monica, California 90401
TEL: (310) 393-4000 FAX: (310) 394-4700
GILCHRIST & RUTTER
Since 1983, Gilchrist & Rutter Professional Corporation has been
providing highly responsive, top quality legal services to clients with
whomwe develop enduring relationships. We vigorouslyrepresent
and counsel our clients in order to solve their problems and achieve'
their objectives efficiently.
The combination of outstanding academic qualifications and unique
practical experience in sophisticated business transactions and
commercial litigation allows our lawyers to obtain optimum results
for our clients in a timely and effective manner.
Our clients benefit from the services of both the seasoned senior
attorneys involved in each matter, as well as those of our junior
lawyers who assist when cost effective. We systematically and
carefully control our growth to ensure that each attorney is an asset
to both our clients and to the firm. Gilchrist & Rutter is located in
Santa Monica, California, but our practice extends throughout
California and across the United States.
We are committed to...
· Providing our clients with careful and thorough legal
analysis
· Working closely with our clients to serve their interests
efficiently
· Being accessible to our clients at all times
· Responding in a timely and effective manner
· Pursuing our clients' goals creatively and energetically
GILCHRIST & RUTTER
Real Estate
Gilchrist & Rutter conducts a broad real estate practice that includes
transactions in the Southern California area, in the major urban
areas of the Southwest, and across the United States. We work
closely with developers, lenders, architects, contractors, engineers,
brokers and consultants on all aspects of commercial, industrial,
retail and residential properties.
Development
Our attorneys have in-depth expertise in all aspects of real estate
development, ranging from site acquisition and pre-development
work to construction, financing and leasing. We are experienced in
the development of high-rise office complexes, suburban and
campus office developments, retail shopping centers, marinas, and
multi-use commercial, retail and hotel projects.
Purchases and Sales
Our firm structures, negotiates and documents the purchase, sale
and exchange of office, industrial, hotel and retail properties, as well
as undeveloped land.
Financing
We represent both borrowers and lenders in pre-development,
construction, interim and permanent loan transactions, workouts and
foreclosures. Our firm has successfully closed over $2 billion of
real estate financing transactions. We have negotiated and
documented many securitized CMBS facilities, portfolio loans,
mezzanine loans and preferred equity deals.
(continued)
GILCHRIST & RUTTER
(continued)
Leasing
Our real estate attorneys represent both landlords'and tenants on a
variety of lease transactions, including commercial, retail, research
and development and industrial properties. We are proficient in
negotiating and preparing ground leases, office and retail space
leases and sale and leaseback agreements. We have successfully
negotiated and documented leases involving millions of square feet
of space in both downtown and suburban markets across the
country.
Entitlements/Land Use
We handle land use and development entitlement issues for our real
estate clients. Such matters include the negotiation of development
agreements with cities, vesting tentative tract maps, owner
participation agreements and disposition and development
agreements with local community redevelopment agencies. We also
represent clients on various zoning and entitlement matters,
including parcel and subdivision maps, lot line adjustments,
conditional use permits, zoning variances, parking covenants and
street vacations at the administrative level before both city and
county agencies.
Telecommunications
Our firm has represented owners, tenants and telecommunications
companies in the structuring and documentation of
telecommunications agreements and telecom facilities. We have
handled deals including antenna and equipment licenses, telecom
service agreements for individual commercial and residential
buildings, telecommunications easements, and portfolio-wide
agreements between owners and telecom providers.
GILCHRIST &: RUTTER
Business and Corporate
Gilchrist & Rutter represents all forms of business entities, including
closely-held and publicly-held corporations, not-for-profit
corporations, limited liability companies, general and limited
partnerships, and sole proprietorships in a wide variety of corporate
and business matters.
Business Formation
We advise clients on alternative forms of business organizations, as
well as entity formation and operation. We represent clients in
securities offerings, including private placements, secondary
offerings and Regulation S offerings.
Business Representation
We serve as general corporate counsel to a number of business
entities. Such representation includes the preparation of general
corporate documentation, employment and consulting contracts,
advice on securities law compliance, and the negotiation of
commercial financing documents and other operating agre.ements.
We counsel clients on the preparation and filing of required
securities reports with the Securities and Exchange Commission and
the California Department of Corporations. We advise clients on all
aspects of employment law matters and defend businesses involved
in wrongful termination claims by employees. We handle licensing
and other arrangements for the use of business names and other
intellectual property rights.
Dissolution of Businesses
Our firm handles the termination and dissolution of businesses,
including all related insolvency and bankruptcy issues that may
arise.
(continued)
GILCHRIST & RUTTER
(continued)
Mergers and Acquisitions
Our corporate practice encompasses the acquisition, merger, spin-
off and restructuring of business enterprises, including both asset
and stock transfers. The transactions handled by our firm range
from the sale of local businesses to the acquisition of nationwide
industrial organizations.
Business Disputes
Gilchrist & Rutter represents clients in the resolution of a broad
range of business disputes, including disputes among shareholders,
partners, and members of business entities; between customers and
suppliers (including bankrupt customers and suppliers); disputes
regarding intellectual property rights, including patents and licenses
and trade dress rights; employment disputes and disputes arising in
connection with the issuance of securities. We also handle disputes
involving commercial credit facilities and real estate secured debt,
and counsel our clients in connection with the restructuring of
troubled loans.
GILCHRIST & RUTTER
Litigation
Gilchrist & Rutter has senior litigators who are experienced in all
facets of civil litigation, including trial and appellate practice in state
and federal courts, mediation and arbitration. The firm's litigation
practice includes representation in the areas of insurance,
employment, labor relations, bankruptcy, environmental, securities,
intellectual property, antitrust and real estate.
Insurance
Several life, title and liability insurance and surety companies rely
on Gilchrist & Rutter for advice and representation in a variety of
litigation matters, including defense ofinsureds in coverage disputes,
breach of contract, bad faith and punitive damage actions.
Business/Real Estate Litigation
We represent individuals and business organizations as plaintiffs
and defendants in all types of civil litigation. Typical matters
include corporate shareholder, partner and member disputes;
commercial and entertainment litigation; real estate, rifle insurance
and landlord/tenant disputes; easement disputes; actions for breach
of contract; actions to quiet title; defamation suits; actions involving
business torts; actions relating to the recovery of real estate and
personal property; and the foreclosure of liens.
Intellectual Property
Our Firm represents manufacturers, distributors and retailers
involved in trade dress, copyright and unfair competition litigation.
(continued)
GILCHRIST & RUTTER
(continued)
Securities
The firm represents public and private companies, as well as
partnerships and individuals in enforcement actions brought by the
Securities and Exchange Commission, the National Association of
Securities Dealers and the California Department of Corporations,
in addition to arbitrations and the defense of class action and private
lawsuits brought under federal and state securities laws.
Alternative Dispute ResOlution
Gilchrist & Rutter supports altematives to the judicial system for
dispute resolution in the business context. We have extensive
experience in arbitration and mediation representing our clients'
interests. We routinely handle arbitrations under the auspices of the
American Arbitration Association, JAMS/ENDISPUTE, and
National Association of Stock Dealers (NASD). Several of our
attorneys serve as mediators and arbitrators in complex civil
litigation securities disputes, and in bankruptcy cases.
GILCHRIST & RUTTER
Environmental
Gilchfist & Rutter counsels clients regarding federal, state and local
environmental laws and regulations and advises how such laws and
regulations impact real estate ownership, operation and
development.
Transactional Practice
We assist in the environmental aspects of real property and business
transactions and financing, environmental site assessment,
negotiated allocation of environmental risk, prospective purchaser
agreements with governmental agencies, and response to
environmental conditions that impair real estate (such as
underground storage tanks, asbestos in buildings, soil and
groundwater contamination). We have experience in matters
ranging from heavy industrial properties with known contamination
in identified Superfund areas, to commercial and undeveloped
properties with no known environmental problems at the outset of a
transaction.
Environmental Compliance
We provide regulatory compliance counseling on the many complex
environmental laws and regulations governing business operations.
Our advice covers environmental audit of facility operations,
environmental permit requirements, remedial action, hazard
communication programs and requirements, regulation of hazardous
substance emissions, hazardous waste generation, transportation and
disposal, emergency response to hazardous materials incidents, and
environmental disclosures and reporting.
Environmental Claims and Enforcement
We handle the defense of governmental investigations, notices,
orders, enforcement and penalty actions under environmental laws
and regulations. We represent clients in the prosecution, defense
and resolution of environmental claims for cost recovery or property
damage due to hazardous substance contamination, including related
insurance claims and coverage disputes.
GILCHRIST & RUTTER
Bankruptcy
Debtor Representation
Gilchrist & Rutter represents individuals as well as a variety of
corporate and parmership entities in restructuring their financial
affairs in out of court workouts or through the use of Chapter 11
bankruptcy proceedings. We specialize in structuring consensual
arrangements, whether on an interim or long term basis, among
debtors and creditors to avoid the need for a bankruptcy proceeding
whenever possible.
Creditor Representation
The firm represents parties involved in every aspect of financial
reorganizations, including mortgagors, mortgagees, secured and
unsecured creditors, assignees for the benefit of creditors, and banks
and insurance companies. We also represent trustees and receivers
in federal and state court insolvency proceedings. Our
representation includes Chapter 11 plan formation and
debtor/creditor litigation in both state and federal courts.
Commercial Law
We handle the negotiation, perfection and enforcement of security
agreements under the Uniform Commercial Code, as well as
enforcement of judgments under state and federal law.
GILCHRIST & RUTTER
Employment
Gilchrist & Rutter has expertise in all facets of employment law.
Our expertise includes trials through appeal, discipline hearings and
arbitrations on matters involving harassment and discrimination due
to sex, race, disability and age; invasion of privacy; defamation;
fraud; drag testing; wrongful termination; whistle blowers; wage and
hour violations; trade secrets and unfair competition.
We prepare employment severance agreements, professional
partnership and employment contracts, workplace policies and
procedures manuals, drug testing policies, and anti-harassment and
anti-discrimination policies. Our attorneys also provide in-house
awareness training with regard to sexual harassment and all forms
of discrimination in employment.
Our clientele includes corporations and executives in a wide variety
of industries, including professional sports, manufacturing, real
estate, oil and gas, banking, motion pictures and related production
support, high technology/computers, higher education, insurance and
fire suppression districts throughout California.
10
GILCHRIST fi: RUTTER
Trusts and Estates
Gilchrist & Rutter represents corporate fiduciaries in large and
multi-jurisdictional trust and estate matters involving a wide range
of issues. We also offer comprehensive estate planning, services.
Our goal is to assist our clients in achieving personal and family
financial planning objectives in a manner that will minimize tax on
family property. We assist in devising charitable giving plans that
provide significant benefits to both the client and the charitable
beneficiaries.
Contested Trusts and Estates
We represent institutional executors and trustees in contested
proceedings involving large trusts and estates. Such representation
includes instrument reformation proceedings, instrument
interpretation issues, determinations of entitlement, approval of
accounts and reports, instructions to fiduciaries, and a full range of
adversarial trust and estate matters.
High Net Worth Estate Planning
Our firm assists successful individuals in family wealth planning,
including generation skipping transfers, business succession
arrangements, and planning for testamentary issues presented in
blended families. We also assist clients by implementing cost
effective insurance-funded techniques designed to achieve desired
liquidity.
Disposition of Unusual and Exotic Assets
We are experienced in planning and administration for the effective
disposition of esoteric and potential 'problem assets' such as race
horses, yachts, jet aircraft, large real estate holdings, and art
collections.
11
GILCHRIST & RUTTER
James R. Andrews
Expertise
General business transactions for public and private business
entities and individuals, including business formation, reporting
and ongoing operational problems.
Representative Experience
Negotiated and documented the formation of corporations, general
and limited partnerships, joint ventures, limited liability
companies, nonprofit corporations, and small family-owned
businesses, including obtaining appropriate business licenses.
Provided counsel as to the appropriate form of entity to utilize;
the issuance of securities by business entities in public and private
offerings, including negotiating with underwriters, preparing
documents to be filed with the Securities and Exchange
Commission or California Dept. of Corporations, preparing
prospectuses, preparing and filing applications for listing of
securities on an appropriate stock exchange or by NASDAQ;
coordinating the filings with accounting firms, and supervising the
transaction closings.
Handled acquisition and disPosition of businesses entities,
including financing arrangements and resolution of any related
securities issues. Such matters included obtaining funds from an
offering of securities, including secondary offerings and
Regulation S Offerings to foreign investors; corporate mergers,
acquisitions and spin-offs, including the restructure of millions of
dollars of assets of a Fortune 500 company; lines of credit and
other arrangements with financial institutions; licenses to use, or
to authorize others to use, certain technology, names or other
rights; the acquisition or leasing of business sites, together with
requisite financing; and joint venture and development
agreements.
Handled work-outs of troubled loans, and employment and lease-
out agreements. Supervised and counseled businesses in the
preparation and filing of securities reports required by the
Securities Exchange Act of 1934 (annual reports, Form 10-Ks,
etc.), and those that must be filed by certain shareholders (e.g.
Form 3s and 4s) with the Securities and Exchange Commission
and the California Department of Corporations. Negotiated and
documented the sale of restricted securities owned by officers,
directors and other insiders.
Involved closely with the preparation of necessary intra-company
documents, such as minutes of Board of Directors' meetings and
related committees.
Counseled clients regarding dispute resolution, including disputes
with lenders; disputes arising fi.om the wrongful issuance of
securities; disputes related to real property; disputes among
shareholders or parmers; patent and licensing disputes; and
disputes between customers and suppliers. Investigated
fraudulent transactions by employees which involved representing
corporate officers before the Securities and Exchange Committee
or California Dept. of Corporations.
Involved in initial drafting of the California Revised Limited
Partnership Act of 1984, as a member of the Executive
Committee, Business Law Section, California State Bar.
Academic Background
LL.B., University of California, Los Angeles; Order of the Coif;
Member Board of Editors, University of California, Los Angeles
Law Review, 1960-62; BA, University of California, Los
Angeles, Phi Beta Kappa, (1959).
Professional Affiliations
Admitted to bar in California (1962); United States District
Court, Central District (1962); United States District Court,
Southern District (1974). Member, Los Angeles County Bar
Association (Trustee 1984-85); Beverly Hills Bar Association
(President 1986-87), and American Bar Association; The State
Bar of California [Member, Executive Committee of the
Conference of Delegates (1988-91); Chairman, Corporations
Committee 1977-78; Member, Executive Committee, Business
Law Section 1976-78; Member, Committee on Revision of
Nonprofit Law 1975-81 ].
Publications
Co-authored California Corporate Securities Analysis (1968).
Speaking
Lectured on a variety of issues over the past decade on behalf of
the Continuing Education Programs of the State Bar of California
and the Beverly Hills Bar Association.
GILCHRIST & RUTTER
Amy E. Freilich
Expertise
Real Estate, Land Use and Public Private Development.
Acknowledged leader in the area of public-private joint venture
development, focusing on representation of public entities and
private developers in complex public/private development
projects, including strategic advice in the planning and evaluation
of public-private development opportunities and negotiation and
documentation of public-private development transactions.
Advisor in the areas of real estate joint development (including
"design-build" and "turn-key" structuring), land use,
environmental quality act compliance, government contracting
and public bidding procedure.
Representative Experience
Served as lead counsel to numerous public agencies and to private
developers in land acquisition, financing, construction, leasing
and management at transit station sites, arenas, retail and office
developments, including Staples Center in downtown Los Angeles
(home to the Kings, Lakers and Clippers). Extensive involvement
in provision of infrastructure including transit and parking
structures. Negotiation and analysis of entitlements for numerous
public/private ventures. Involved in development of public-
private development policy, exploration and exploitation of
public-private development opportunities and privatization and
asset management for public agencies. Significant experience in
application of California Environmental Quality Act and National
Environmental Policy Act to complex, multi-use development and
transit projects, including scoping, adequacy of environmental
documentation, preparation of findings and mitigation monitoring
programs and counseling clients on preparation of adequate
environmental documentation to limit potential legal challenges.
Academic Background
J.D (1986) Harvard Law School (.cum laude); Executive Editor of
the Environmental Law Review; A.B. (1983), University of
Chicago (General and Special Honors); Judicial clerk to Judge
Pasco Bowman of the United States Eighth Circuit Court of
Appeals (1986-87).
Professional Affiliations
Admitted to the bar in California (1990) and New York (1987).
Board of Directors of the Los Angeles Conservancy and of
Lambda Alpha (an invitation-only honorary land and economics
association). Member of Urban Land Institute, Valley Industry
and Commerce Association, the American Bar Association (State
and Local Government Law and Real Property Sections), the
State Bar Association of California and the Los Angeles County
Bar Association (Real Estate and Land Use Section).
Publications
Co-author with Michael Bemick of "Transit Villages and
Transit-Based Development: ~'he Rules Are Becoming More
Flexible; How Government Can Work with the Private Sector To
Make It Happen," published in the Urban Lawyer (Volume 30,
Number 1, Fall 1998) and in The Twenty-Eighth Annual Institute
on Planning, Zoning, and Eminent Domain (Publication 631,
Release 28).
Speaking Engagements
Speaking engagements on public-private development include
appearances at the 1997 Southwest Legal Foundation Conference
in Dallas, Texas; the 1999 Southwest Legal Foundation
Conference in San Francisco, California; the 1999 American Bar
Association Conference in Atlanta, Georgia; the 2001 Real Estate
Conference of the American Bar Association in Washington DC,
the 2000 ULI Trends Conference in Los Angeles, California and
selection by UCLA Extension (Public Policy Section) as co-chair
of its first full day seminar on "Maximizing Public Assets
Through Use of Asset Management and Joint Development
Tools," in April 1999.
GILCHRIST & RUTTER
Donald C. Nanney
Expertise
Environmental law, including environmental aspects of business
and real estate transactions, compliance counseling,
environmental assessments/audits, contractual allocation of
environmental risks, environmental claims and penalties, and
hazardous materials emergencies. General business, real estate
and corporate law, including sales, acquisitions, mergers, options,
leases, and related financing; workouts of troubled projects:
formation, maintenance and dissolution of corporations and
partnerships; and related litigation.
Representative Experience
Provided compliance counseling regarding environmental laws
and regulations affecting ownership or operation of real property,
involving such matters as underground storage tanks; asbestos in
buildings; environmental permit requirements; hazardous
substance emissions to air, land and water; notification, warning,
hazard communication and release reporting; hazardous waste
disposal and related fees and taxes. Assisted clients in obtaining
governmental agency approval and closure certification regarding
remedial activities.
Handled environmental claims between potentially responsible
parties, including present and past owners or operators of
contaminated properties and generators of hazardous waste.
Represented parties in major contaminated site cases, including
sites listed on the National Priorities List. Defended and settled
administrative claims and penalty actions regarding alleged
violations of hazardous waste laws or occupational safety and
health regulations. Handled emergencies involving release of
hazardous materials; compliance reporting duties; extensive
dealings with environmental consultants, cleanup contractors and
regulatory agencies, including the defense of citations and notices
of violation.
Academic Background
Army Judge Advocate General (1975), AJAG School at
University of Virginia (honor graduate); J.D. (1974), University
of California at Davis (top 15 percent of class); A.B. (1971),
Stanford University (with distinction).
Professional Affiliations
Admitted to Bar in California (1974); United States Court of
Military Appeals (1975); United States Supreme Court (1978);
District of Columbia (1979); United States District Courts:
Northern District of California (1980), Central District of
California (1985); Ninth Circuit Court of Appeals (1998).
Member, State Bar of California (Environmental and Real
Property Sections); Los Angeles County Bar Association (Real
Property Section [Co-chair, Land Use Planning and
Environmental Law Subsection]; Environmental Law Section
[served on Executive Committee and Chaired Corporate
Environmental Issues and Transactions Committee]).
Publications
Environmental 'Risks in Real Estate Transactions: A Practical
Guide (2nd Edition), McGraw-Hill, Inc./Executive Enterprises
Publications, Co., Inc., NY (1993). California Environmental
Law Handbook, Government Institutes, Inc., Rockville, MD (3rd
Ed. 1989 - l lth Ed. 1999). "Manage Mess," California Law
Business (December 1996), a Los Angeles Daily Journal
supplement. "Asbestos Inspection, Disclosure by Building
Owners and Employers," California Real Property Journal
(Summer 1996). "New OSHA Asbestos Standards: A New
Chapter in an Old Controversy" and "ASTM Standard Practice
for Environmental Site Assessments," Environmental Liability,
Enforcement and Penalties Reporter (December 1994 and
August 1993). "New OSHA Asbestos Regulations Expand
Duties of Employers and Building Owners and Tenants," Journal
of Environmental Regulation (Winter 1994/1995). "Trustee and
Fiduciary Liability Under CERCLA: What Did the Trustee
Know and When Did the Trustee Know It?" Probate Law
Journal of Ohio (July/August 1993). Quoted in various articles,
and wrote extensive program materials for seminars and
conferences.
Speaking
Spoke at nearly 85 conferences for the Califomia Continuing
Education of the Bar, the LA County Bar Association, CLE
International, Univ. of California, and various professional
groups. Served as moderator of a panel of seven experts selected
nationwide for an environmental law and real estate transaction
television program broadcast live from New York City via the
Continuing Legal Education Satellite Network.
GILCHRIST & RUTTER
Paul S. Rutter
Expertise
Commercial real estate and business transactions, including
development, financing, leasing, acquisition and disposition of
commercial and industrial properties; including limited
parmership and limited liability company operating agreements,
joint venture agreements, ground leases, development and
management agreements, consulting agreements; senior and
mezzanine real estate loans, including securitized debt;
construction and permanent loans; reciprocal easement
agreements and CC&Rs for mixed-use and multi-phase projects;
construction, architectural and engineering services agreements
for retail, office and hotel projects; development agreements and
owner participation agreements with governmental agencies; loan
workouts and restructurings.
Representative Experience
Leasing. Negotiated and documented office and retail leases for
major urban and suburban projects in California, Texas, New
Mexico, and Pennsylvania with many Fortune 500 companies,
national law and accounting firms, financial services companies,
retail chains, domestic and international banks, restaurants, and
local retailers. Several individual lease transactions have involved
over 500,000 square feet and some leases have been for more than
750,000 square feet.
Ownership Structures. Structured numerous limited liability
companies, limited partnerships and joint ventures tO acquire,
develop and own real estate projects. These deals include
lease/equity transactions with Fortune 500 companies.
Financings. Negotiated pre-development, construction and
permanent financing for projects ranging from small commercial
centers to multi-phase high-rise and suburban campus office
developments and hotels. These deals include revolving loans,
asset-based financings, acquisition and construction loans and
interim and permanent loans on projects in Los Angeles,
Glendale, Pasadena, Burbank, Riverside, San Diego, Dallas,
Austin, and Philadelphia.
Acquisitions and Dispositions. Negotiated and documented the
acquisition of properties in California, New Mexico, Virginia,
Pennsylvania, and Texas, including land and office, hotel and
retail complexes.
Complex Commercial Projects. Handled all legal aspects of site
acquisition, entitlement, development, financing and leasing of
several mixed-use complexes with office, retail and, in some
cases, hotel facilities, including preparation of development
agreements, bonds for construction of public improvements, hotel
management agreements and ground leases.
Build-To-Suit Deals. Represent developers of build-to-suit
projects with large corporate users, involving ground leases,
development agreements, leases, financing and partnership
agreements with investors, and construction and architects
agreements.
Operating Company Acquisitions. Handled acquisitions of
operating companies, through both stock and asset purchases;
advised clients regarding entity structures and general corporate
matters.
Representative Clients: The Archon Group, Maguire Partners,
CommonWealth Partners, J.P. Morgan Investment Management,
Thomas Properties Group.
Academic Background
J.D. (1978), University of California at Los Angeles (Order of the
Coif); Topic and Comment Editor, UCLA Law Review; A.B.
(1975), University of California, Los Angeles (magna cum laude);
Phi Beta Kappa; Pi Gamma Mu.
Professional Affiliations
Admitted to bar in California (1978); U.S. Tax Court (1979);
U.S. Supreme Court (1984); and U.S. Claims Court (1984).
Member, State Bar of California; Los Angeles County Bar
Association (Real Property and Business Law Sections); Beverly
Hills and Santa Monica Bar Associations; Urban Land Institute;
Building Owner's and Manager's Association (Member-
Government Affairs Committee and Board Member-Political
Action Committee); International Association of Attorneys and
Executives in Corporate Real Estate (Chairman-Elect), Board
Member-Los Angeles Conservancy.
Speaking
Lectured before California Continuing Education of the Bar; Los
Angeles County Bar Association, California Judges
Association/The Rutter Group; Building Manager's and Owner's
Association; ICSC Law Conference; International Association of
Attorneys and Executives in Corporate Real Estate; and various
broker and trade groups.