The organization stage is the most important stage of any urban-renewal project. The decisions made here — who sits on the committee, who the lawyer is and who the developer is — accompany the tenants for years and largely determine the project’s success.
Establishing a tenants’ committee
The first step is convening a tenants’ assembly and electing an authorized committee. Anchor the committee’s powers in writing, set a decision-making mechanism, and make sure the committee reflects the building’s diversity.
Choosing independent counsel
The tenants’ lawyer must be chosen by them and act for them alone. The fee is paid by the developer, but the duty of loyalty runs to the tenants. Beware of signing powers of attorney or commitment documents before independent representation is in place.
What to check in a developer
Financial soundness, a proven record of completed comparable projects, the identity of the financing bank, and clear commitments on timelines and securities. An orderly competitive process among several developers significantly improves the consideration.
Do not sign too early
A “non-binding” document signed early on can turn out to be very binding. Every document — however preliminary — deserves review by the tenants’ lawyer before signing.
This article is general information only and does not constitute legal advice. For any specific matter, please seek individual counsel.
