Licensing agreements

I do not have any comps, but $1,000 per month strikes me as insultingly low to take over my entire back yard. I agree with the suggestion to find comps or at least get guidance from an attorney who has drafted lots of these agreements.

The leverage you have is to force them through the extensive delay of court which will cost them a lot more than whatever incremental amount you might demand. To that end, the longer you drag out this process, the better (also, you might get past summer when your yard counts for the most).

SoSlope

in General Discussion 6 years and 10 months ago

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burpgun | 6 years and 10 months ago

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Hi there. As part of an attempt to work out a licensing agreement with a large property developer, we’re being offered less than $1K per month for scaffolding that will render our large backyard nearly unusable for the summer, and which will almost certainly kill our grass and nearby trees. They’re playing hard ball and threatening to take us to court, but we feel that compensation is entirely too low. What do you think?

mozeeatupu | 6 years and 10 months ago

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They have the law on their side of if you go to court you must likely will lose. Your only bargaining chip is they don’t want to go to court since delays cost them money.
What amount are you seeking?

daveinbedstuy | 6 years and 10 months ago

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Let them get on with it and try being less greedy.

burpgun | 6 years and 10 months ago

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Pretty impressive that big developers can be allowed to take over your property and screw up your ability to use what you own, and goof balls like daveinbedstuy are like “try being less greedy.” We know we can’t stop the access, but feel the offer is short of fair value. Yeesh.

daveinbedstuy | 6 years and 10 months ago

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Then good luck in your process of fighting it, burpgun. It’ll be a great learning experience and a lot of fun. Is there a “fair value” gauge out there which you can reference? It sounds like they are trying to get on with it and get it done. Best to get them in and out quickly.

resident2 | 6 years and 10 months ago

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Just get in the licensing agreement that the developer agrees to restore your property to the pre-existing condition. Replace killed trees and lawns, fences etc. And that you are named as co-insured on their Insurance for liability etc.
At the end of the day, when they are trying to sell their units they will want your property looking decent as well to show what great neighbors live in the area.
Get a lawyer to handle the paperwork for yourself. Someone that specializes in Construction Real Estate Law

burpgun | 6 years and 10 months ago

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We’ve got a lawyer and are making progress. I’m just trying to wrap my head around the idea of rendering a sizable garden unusable in prime summer time for a relative pittance. It’s almost like being forced to have a tenant who can name their own price.

daveinbedstuy | 6 years and 10 months ago

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Well, what do you think is fair? Did you counter their offer?

slopefarm | 6 years and 10 months ago

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The question is what the courts (and the market) think is fair. If your attorney has a fair amount of experience with these kinds of agreements, s/he will have some comps for this. If you are the outlier, better to give in on price and get the protections resident2 described. If the developer is the outlier, make a counterproposal that has some precedent behind it, and convey through the lawyer the basis for your proposal.

nyc_sport | 6 years and 10 months ago

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Your post is somewhat lacking in specifics as to what exactly the adjacent property owner will do and for how long, but the $1,000 per month likely is way too low, assuming this is in a prime neighborhood, and it actually is usurping the entire yard. You are also entitled to have them restore the property, and pay your fees and costs. You need a lawyer, not blog posts. You may also need an architect to review what they propose to do. You also likely want them to agree to pay for all of that.
See, eg.,

https://www.law.com/newyorklawjournal/2018/02/20/negotiating-rpapl-%C2%A7881-license-agreements/?slreturn=20180605175801