Licensing Fee Shakedowns

Exorbitant demands. It seems everyone has to do more mandatory facade work every five years. As things have gotten more involved, there has definitely been an escalation in the fees neighboring buildings request in access, or licensing, agreements. They may want to be compensated for the loss of use, or they want their building to be fully protected, or they’re in no rush to get anything done. Some of their demands, frankly, are outrageous. The building seeking access is over a barrel, and sometimes it ends up paying a lot more than it thinks it should.

An inadequate remedy. Section 881 of the Real Property Actions and Proceedings Law gives the building that’s doing mandatory work the opportunity to get a court order saying, “You have to give us access so we can comply with the law.” The problem with any sort of court procedure in 2023 is that it takes a long time to get done. Also, because of the way the law is currently written, judges don’t really have much basis to pressure the neighboring building to try to negotiate down their demands. So it’s not really a particularly useful tool.

Jump-start the process. If lawyers who are trying to get access on behalf of their clients get the drawings, plans and specifications over to the neighboring building at an earlier point, some of the delays can be alleviated. Get specific information to the neighboring building — such as where roof protection is needed or where there has to be a controlled access zone — even before your contractors have been formally retained.