Category Archives: Planned Unit Development

The Impact of COVID-19 on Commercial Real Estate

The Coronavirus and the State of Emergency

On March 10, 2020, the Michigan Department of Health and Human Services identified the first two presumptive cases of coronavirus, also known as COVID-19, in the State of Michigan. On March 16, 2020 Governor Whitmer signed Executive Order 2020-9 which closed restaurants, bars, cigar lounges, movie theaters, casinos, libraries, and gyms from the public. On March 23, 2020, Governor Whitmer signed Executive Order 2020-21 which imposed a temporary stay-at-home order for non-essential matters, which was later extended and expanded through Executive Orders 2020-42, 2020-59, 2020-70, 2020-77, and 2020-92, and is currently in effect for the majority of the State through at least May 28, 2020.

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Business Interruption and Loss of Use Insurance Claims Resulting from COVID-19

In Michigan, as in most states, the state authority has significantly limited access to public places, stores, restaurants, movie theaters, offices, and other businesses through the issuance of executive orders prohibiting such access. For businesses whose viability depends on the public’s ability to access that business’ physical location, the issuance of such orders has resulted in a loss of use of the property and a severe interruption in business. For some, their insurance policies may appear to insure against loss of use of the insured property when a civil authority prohibits the insured from using the insured property, such as through issuance of an executive prohibiting such access, or there is damage to the property resulting in its loss of use. While it may seem as though the business climate created by the Coronavirus (COVID-19) is unique to our generation, this is not the first time a Governor’s executive order has impacted businesses in Michigan and there are several cases from the Michigan Court of Appeals which can provide guidance.

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On the Waterfront: Fighting Lakefront Erosion Through Easement Maintenance

On February 12, 2020, the Ottawa County Circuit Court issued a decision in the consolidated cases Duke, et al v Wittenbach, et al, Case No 19-5989-CH and Wittenbach v Duke, et al, Case No 19-5995-CH.  The Duke cases are interesting because at first glance they appear to arise out of the intersection of riparian rights and property owner rights but are ultimately resolved through the application of the ordinary easement principles described in more detail below.  Nonetheless, given the increase in Great Lakes water levels, the issues presented in the Duke cases may resurface in future cases, and the Court’s means of resolving the dispute could be applied in any such future cases.

 

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Vacating a Road or Alley under the Land Division Act

In Michigan, a significant portion of commercial and residential real estate development occurs through the creation of either subdivisions or condominiums. Typically, an owner of a large parcel of land will establish a condominium or subdivision as a means of dividing the land into various smaller lots (called “units” in a condominium) that can be individually sold. Although the more recent trend, particularly in residential developments, is to create condominiums, most older developments were done through creating platted subdivisions under the Michigan Land Division Act, MCL 560.101, et seq., or one of its predecessor statutes.

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MICHIGAN COURT OF APPEALS RULES IN FAVOR OF TOWNSHIP IN ZONING ORDINANCE DISPUTE OVER SHORT-TERM RENTALS

BACKGROUND

On October 25, 2018, the Michigan Court of Appeals issued an unpublished opinion in the matter of Concerned Property Owners of Garfield Township, Inc v Charter Township of Garfield, unpublished per curiam opinion of the Court of Appeals, issued October 25, 2018 (Docket No. 342831). The Garfield case involved the interpretation of a zoning ordinance that addressed short-term rentals of residential properties in certain districts. In Garfield, a number of homeowners frequently rented out their homes for short-term intervals, usually for about one week in duration. In September 2013, the Garfield Township Zoning Administrator expressed an opinion that the zoning ordinance then in effect, called “Ordinance 10”, permitted short-term rentals.

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Paragon Properties: The Rule of Finality in Challenging Municipal Land Use Decisions

 

            The relationship between municipalities and land developers is often one of compromise, with each attempting to find some middle-ground in order to move forward on a particular project.  In many instances, however, the municipality and developer are unable to reach such a compromise and the parties find that their positions are irreconcilable.  In such instances the developer may believe that their only next viable option is to seek redress in the court system.  But before doing so, it is important that a developer recognize the limitations on judicial review of land use decisions by a municipality.  Specifically, if a developer does not satisfy the “rule of finality,” the developer may find that they have no right to seek a judicial remedy at all.  The rule of finality helps to ensure that a municipality is given an opportunity to make a final decision on the matter before it.  Without such a final opportunity, judicial review is not available.

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