minneapolis named greenest city in u.s. - building … named greenest city in u.s. i t is now common...

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October - December 2014 Minneapolis Named Greenest City in U.S. I t is now common knowledge that commercial real estate is at the nexus of many environmental and sustainability issues. Specific awareness of the importance of building level energy efficiency programs is widespread and further importance is placed on the fact that the commercial real estate sector is a major consumer of water and other natural resources, while also producing significant landfill waste and greenhouse gas emissions. These facts have captured the attention of regulators, the public, corporate occupiers, and investors, who are increasingly demanding more efficient, “green” buildings. There are two main programs that currently assess commercial building energy efficiency and sustainability characteristics: EPA’s Energy Star and the United States Green Building Council’s LEED Certification program. Recognition by at least one of these two programs qualified buildings for inclusion in our study. While both programs are traditionally based on voluntary adoption and disclosure, green building certification over the past years has become an important indicator of quality in the major U.S. commercial property markets. Currently 8,405 office buildings, representing more than 1.9 billion square feet of office space, have been awarded an Energy Star label, denoting the top energy performers among their peer set. Additionally, a total of 5,470 office buildings, representing almost 900 million square feet of office space have received some type of full building LEED certification. There is a growing body of academic evidence that Energy Star and LEED certification may have positive implications for the financial performance of commercial assets. The following is an exerpt from the“National Green Building Adoption Index - 2014” article. Used with permission. Research and report by Nils Kok and Rogier Holtermans, Maastricht University. Published in 2014 by CBRE, Inc. IN THIS ISSUE “National Green Building Adoption Index 2014” President’s Message 2 Elections 2014 2-3 Mentorship 3 Member in the Spotlight 4 Snow Contracts 6 Importance of Volunteering 7 Eviction Process 8-9 Heathcare Design & Operations 10-11 Calendar 12 1. Minneapolis Green Building Adoption Index Top 5 Greenest Cities 2. San Francisco 3. Chicago 4. Houston 5. Atlanta See the complete list on page 5! Continued on page 5. ADVOCACY AND EDUCATION FOR COMMERCIAL REAL ESTATE

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October - December 2014

Minneapolis Named Greenest City in U.S.

It is now common knowledge that commercial real estate is at the nexus of many environmental and sustainability issues. Specific awareness of the importance of building

level energy efficiency programs is widespread and further importance is placed on the fact that the commercial real estate sector is a major consumer of water and other natural resources, while also producing significant landfill waste and greenhouse gas emissions. These facts have captured the attention of regulators, the public, corporate occupiers, and investors, who are increasingly demanding more efficient, “green” buildings. There are two main programs that currently assess commercial building energy efficiency and sustainability characteristics: EPA’s Energy Star and the United States Green Building Council’s LEED Certification program. Recognition by at least one of these two programs qualified buildings for inclusion in our study.

While both programs are traditionally based on voluntary adoption and disclosure, green building

certification over the past years has become an important indicator of quality in the major U.S. commercial property markets. Currently 8,405 office buildings, representing more than 1.9 billion square feet of office space, have been awarded an Energy Star label, denoting the top energy performers among their peer set. Additionally, a total of 5,470 office buildings, representing almost 900 million square feet of office space have received some type of full building LEED certification. There is a growing body of academic evidence that Energy Star and LEED certification may have positive implications for the financial performance of commercial assets.

The following is an exerpt from the“National Green Building Adoption Index - 2014” article. Used with permission.Research and report by Nils Kok and Rogier Holtermans, Maastricht University. Published in 2014 by CBRE, Inc.

IN THIS ISSUE

“National Green Building Adoption Index 2014”

President’s Message 2Elections 2014 2-3Mentorship 3

Member in the Spotlight 4Snow Contracts 6Importance of Volunteering 7

Eviction Process 8-9Heathcare Design & Operations 10-11Calendar 12

1. Minneapolis

Green Building Adoption Index

Top 5Greenest Cities

2. San Francisco

3. Chicago

4. Houston

5. Atlanta

See the complete list on page 5!

Continued on page 5.

ADVOCACY AND EDUCATION FOR COMMERCIAL REAL ESTATE

Page 2 • October - December 2014 • BOMA Greater Minneapolis

Collaboration is one of the new buzzwords we are all either using or hearing.

On a daily basis, we collaborate with tenants, owners and service providers. We also collaborate with our co-workers and our peers in the industry. Collaboration can provide very successful results by bringing groups together to work towards a common cause. As everyone knows, downtown Minneapolis is going through tremendous changes on a number of fronts including the Downtown East project and the new stadium that are actively underway. Design plans for the Nicollet ‘Mile’ are being developed and will soon be under construction. Not to mention the new market rate housing that either has opened, is about to open or is actively

under construction. Additionally, downtown Minneapolis has many things to look forward to including the opening of Mayo Clinic Square and the not-too-distant 2018 Super Bowl. These are all very exciting things to see happening! All that in mind, collaboration is a way that BOMA Greater Minneapolis can be involved with and accomplish many things for the benefit of our members. Over the last several months, our organization has partnered and collaborated with the Minneapolis Downtown Council/Downtown Improvement District (DID) and the Minneapolis Area Chamber of Commerce on a number of issues that will have significant impact on our members. The goal of these collaborations is simple: strength in numbers.

As part of a larger collaboration, BOMA Greater Minneapolis has a significant seat at the discussion table on issues such as the design of the Nicollet ‘Mile’ as well as the proposed

assessment methodology that will be discussed by the City Council in the weeks ahead. While we would certainly have been heard in these discussions without the collaboration of our sister organizations, we clearly have an even louder voice with our partners at the table with us. To be clear, while our organization is enthusiastic to see all of the exciting things going on downtown, our mission first and foremost is to make sure each and every one of our members is represented fairly at all levels of discussions. I am extremely pleased and proud to tell all of you that BOMA Greater Minneapolis is a major force in everything happening downtown. We have a number of members, including myself, that sit on the Nicollet Mall Implementation Committee. Other members also have key roles within the Downtown

Improvement District to ensure that we are represented. Kevin Lewis and other Board members are meeting regularly with Downtown Council/DID and Minneapolis Area Chamber leadership to review and monitor our strategy relative to all things that affect our membership. In my 30+ years as a member of this association, I have never seen a collaborative effort of this magnitude come together and work as well as it is, and there will be even more to come in the

weeks and months ahead! Don’t hesitate to let me know your thoughts, concerns and ideas as we continue to work hard for each and every one of you.

President’s Message

[“BOMA Greater Minneapolis is a major force in everything

happening downtown.” ]

By Kevin LewisBOMA Executive Director

On Tuesday, November 4, 2014, our state’s general election will take place. All

Minnesota executive officers are up for election (which includes the Governor) as well as all 134 seats in the Minnesota House of Representatives, several state judicial seats, a United States

Senate seat, all of Minnesota’s eight seats in the United States House of Representatives and several seats for local offices. Regardless of any party affiliation you may have, as a citizen, it is incumbent on you to get to know the candidates and their positions on specific issues.

As you are aware, BOMA Greater Minneapolis does not have a Political Action Committee (PAC) fund which is oftened used to distribute dollars to various

candidates and campaigns; nor do we endorse specific candidates for any office. We do, however, remain vigilant at keeping tabs on their policy positions and campaign themes and any related impact on our industry. Our Government Affairs Committee not only discusses pertinent topics at each monthly meeting, but frequently has an elected official attend. Doug Carnival and Bill McGrann from the firm McGrann Shea Carnival Straughn & Lamb serve as our watchdog lobbyists on the

local and statewide front to keep us informed and offer advice. To help all of you learn more about the upcoming elections, I urge you to sign up for our General Membership Meeting on Thursday, October 16. We will have political experts break down current and potential legislative issues and provide relevant information on important races and candidates that may have ramifications on BOMA and our industry.

Elections 2014...Be Informed! Have Your Voice Heard!

Continued on next page.

By David K. WrightBOMA PresidentU.S. Bank Corporate Real Estate

BOMA Greater Minneapolis • October - December 2014 • Page 3

EDWARD H. COOK& ASSOCIATES, P.A.Mechanical Engineering Consultants

809 Goodrich Avenue | St. Paul, MN 55105 | 651-298-0940 | cookconsultants.com

Is your building running HOT and COLD in the wrong places?

BOMA Greater Minneapolis 2015 Dues As someone who has been involved with associations and organizations that rely on member dues for well over 25 years, I am keenly aware that each and every day we are here to serve you, our members, and to advance the mission of our organization. In my conversations with representatives from other BOMAs, I can honestly say there is quite a bit of envy as to the level of engagement we have here in the Minneapolis area. Simply put, providing substantiated

real benefits to each of you will answer the question….what is the ROI by investing in BOMA?

As you finalize your 2015 budgets, we very much appreciate your past support and involvement in BOMA Greater Minneapolis. We also ask for your assistance in spreading the word on the value of membership in our organization. Together, we look forward to growing our industry and our association to enhance our collective voice in the region.

Thank you!

Continued from previous page.

Everyone Needs a Mentor...Join the BOMA Mentorship Program!

The concept of mentoring has evolved. Mentoring is no longer just for the

newcomers to an industry, it is a collaborative learning relationship where both mentor and mentee benefit. Recent studies have proven that mentoring at all levels of a professional’s career is the most cost effective and sustainable method of fostering and developing a person’s skill set.

It is a common misconception that someone has too much experience

to be a mentee. Professionals with several years of experience feel like they have been in the business too long to have a mentor. This is a concept that the BOMA Mentorship Committee is trying to break! Having a mentor can provide a different perspective and help encourage new and fresh ideas, making the partnership beneficial for both mentor and mentee.

All BOMA members are welcome to participate. As a mentor, you should have at least 5 years of

experience in the commercial real estate industry and be interested in strengthening the foundation of BOMA. As a mentee, you could be relatively new to the industry or a seasoned BOMA member seeking an experienced professional to help expand your knowledge and develop new ways of approaching situations.

The Mentorship Program runs January 2015 - December 2015. Mentors and mentees are expected to invest at least 1-2 hours per

month on the partnership. A good match can create an equally fulfilling experience for both mentor and mentee. The program commitment is small, but the value will last forever!

If you are interested in participating, please contact Alexx Smith at [email protected] or Katie Bongard at [email protected]. Watch the BOMA E-News for details! t

By Alexx SmithZeller Realty GroupMember of the Membership Committee

Elections 2014...Be Informed!

Page 4 • October - December 2014 • BOMA Greater Minneapolis

651-765-0765

“Rats!” C. Brown

member in the spotlight...

BOMA members are interesting people! Periodically we include a short feature about a BOMA member.

Bob Traeger

By Chuck BlairThyssenKrupp ElevatorMember of the Communications Committee

For most in BOMA Greater Minneapolis, Bob Traeger is known as the pleasant

and positive, seasoned General Manager of 333 South Seventh Street (formerly known as Accenture Tower). What most people don’t know, however, is that behind the scenes, Bob is more than just a family man…he’s a foster family man. It was intriguing and inspiring to interview Bob and learn more about his work outside

of the property world. His story should inspire us all.

Foster care. It is a term that most people recognize but might struggle to define. Can you share your thoughts on what foster care means as you have experienced it? Defining foster care is a multi-dimensional undertaking. Fostering is enhancing, equipping, advocating, and care taking. Most importantly, it’s role modeling

normality, respect, compassion, integrity and especially, the languages of love.

Opening your home to others seems very intimidating. Going back to your beginnings as a foster provider, can you share how you decided to take the leap of faith?We decided to take our leap of faith into fostering when a family that my wife, Christine, had known from childhood was in need of a quick kinship placement into our home. As we experienced the joy of sharing daily home life, playing a part in another’s growth and contributing faithfully to another’s heart and spirit, we realized that this is what we were supposed to do. It is very much a calling...a ministry of sorts for us; our way of giving back.

Initially we opted for teenage girls to be placed in our home based on our own family make up. As we had raised a few girls of our own (three biological girls, one biological son, as well as two adopted girls), we felt like this would be familiar territory. We probably walked alongside close to 40 teenage girls before we changed over to sibling groups which touched our hearts in a whole new way. We identified the tremendous value in keeping some of the family intact during a very divided season in their lives. Over 50 sibling kids built memories that they, and we, will cherish always. We took a purposeful family reprieve before switching

over to teenage boys (which we like to define as less drama, more hunger). During that time, our youngest daughter graduated, our oldest daughter had her first baby, our second eldest daughter was married, and our son was certified as a firefighter. All of which were momentous events that deserved our undivided attention and energy. Our biological children have invested themselves into our fostering world in every sense. They are as much a part of the core ministry as Christine and I. We are so very proud and humbled by their contributions over the 18 years and 100 plus children living under one roof, sharing space, lives, parents, siblings, pets, hardships and celebrations.

Over one hundred children?! Looking at the scope of what you’ve done, what have you learned about these children and about yourselves?We believe each child placed in our home was fully intended to be there. Each has left an impression and each remains a part of our future. We have learned there is no such thing as a bad child, just tough circumstances that require restructuring, unconditional grace, and genuine commitment. A long time ago, we thought that we would try to bless the life of another and today, we can surely say that it is we who have been so very blessed!t

BOMA Greater Minneapolis • October - December 2014 • Page 5

Given the growing requirement of energy performance disclosure as part of city and statewide legislation, and the growing importance placed by corporate users on occupying sustainable space, it is becoming necessary for the real estate sector to better understand the supply of “green” building space in the market.

To quantify and understand the dynamics of this growing marketplace for “green” buildings, we engaged an academic research team experienced in commercial real estate research to conduct this study. Their work, the first published results of the CBRE Real Green Research Challenge, is the initial broad effort to map the adoption of “green” space in the 30 largest U.S. commercial office markets

(representing more than two-thirds) of the total U.S. office market). Based on rigorous methodology, the work was executed in close collaboration with the USGBC and CBRE Research. This publication provides the inaugural results of the Green Building Adoption Index. Following this initial publication, the Green Building Adoption Index for commercial office space will be published on an annual basis.

And the winner is...Minneapolis. In our study of green building adoption among the top 30 US cities, the clear-cut leader is Minneapolis, with the number one position in most of the individual and overall categories. 135 buildings in Minneapolis are certified, representing more than 152 million sq. ft. of office

space. This means that 29.7% of all buildings are green, the highest percentage in our study, besting Atlanta (26.6%) and Manhattan (24.4%) for the top spot. Minneapolis also leads in the percentage of green square footage in the market with a remarkable 77%. More than three quarters of all office space in Minneapolis is green, by far the highest percentage and nearly twice the national average of 39.3%. Minneapolis also holds the leading position in Energy Star label categories, with 22.9% of buildings and 62.8% of square footage. Both of those percentages are about twice the national average. The market also leads in LEED certification categories, with 12.1% of buildings and 39.4% of space certified. Each of these

again is at least double the national average among the top 30 cities.

Overall, the results show that green-certified buildings now represent a major share of the U.S. commercial office market, with the adoption of green space in some markets perhaps even approaching a saturation point. As attention to green building from regulators and tenants continues to grow, the widespread diffusion of certified space may start to have more tangible implications for investors in commercial real estate. t

Continued from cover.

Minneapolis Named Greenest City in the U.S.

2014 Green Building Adoption Index

To read the full article, “National Green Building Adoption Index 2014,” visit www.bomampls.org.

Page 6 • October - December 2014 • BOMA Greater Minneapolis

There are a wide variety of snow and ice management contracts available to Property

and Facility Managers to choose from before each winter season. Which contract is the best one for your company, property, or ownership group really depends on several factors:

• Level of service required at each property to protect against slip and fall liability.

• Size of each property’s parking lot and sidewalks.

• Trigger depths on both parking lot and sidewalks to initiate a serviceable event.

Here are some of the most popular types of snow plowing contracts, including advantages and disadvantages to help you choose the correct contract for each property:

Time & Materials ModelPricing is set on a per-hour basis on a variety of labor, materials, and equipment to be used on-site. Most require a 1-hour minimum with prorated portions of hours used after the initial hour.

Pros:• Charged only for actual hours

and materials used for each occurrence at the contracted rate.

• Easy to monitor total man hours, materials, and equipment utilized for each site.

Cons:• Misconception of an open

checkbook.• 1-hour minimums will be charged

on smaller events.

Per Time Pricing ModelPricing is set for each time an entire

plowing of the parking lot or full shoveling of s i d e w a l k s are done by the inch level, i.e. 1 to 3”, 3 to 5”, etc. Your specific per time rate is based on the total square footage of the parking lot and the linear feet of sidewalk.

Pros:• Pay only when it snows and

reaches your trigger depths.• Set price for each inch level of

snow accumulation.

Cons:• Repeat trips on longer snow

events generate multiple per time charges.

Per Event Pricing ModelPricing is set for an entire snow event based on the total number of inches for that specific event. This model generally includes all open-up plowing, multiple plowing, and shoveling occurrences while it continues to snow. This also includes final plowing and shoveling once the event is completely over.

Pros:• One set price for each event

based on inch level. Can budget for an average amount of events in a season.

• Everything is included; no need to request open-up service.

• On a longer duration snow event, you are getting a lot of service for a smaller price.

Cons:• On a shorter duration snow

event, one could over pay for the event as is based on an average snow event.

Monthly Event Pricing ModelPricing is set for equal payments for each month of the snow season. Generally includes all open-up plowing, full plows, and sidewalk shoveling. When requested, can also include salting of lots and sidewalks which can add to the gamble-aspect of this type of contract.

Pros:• Set price is easier for managers

to budget and anticipate costs. • Everything is included; no need

to request open-up service.

Cons:• Could over pay if it does not snow

more than an average year of inches or events.

• Could break the bank for the contractor and they could stop servicing your property and cut their losses.

• Generally, one party in this business transaction is unhappy and relationships can suffer.

• If you include months, such as October & April, you risk additional over payment on months that don’t normally have a lot of snow.

The bottom line is you must select a contract model that works best for your company and the clientele you serve. Trust is essential – and it goes both ways. Set clear expectations of trigger depths and how you want every property serviced during each snow event. You also need to discuss and understand how under-trigger events like ice storms and dustings will be serviced and charged. The higher level of service you expect, the higher the cost is for your contractor to provide that service, and it will be reflected in your overall cost structure. The primary focus of a snow contractor is to keep your site safe during our Minnesota winters. Snow and ice management, like anything else in life, you get what you pay for. Don’t necessarily go for the cheapest price point as you could be disappointed and leave yourself vulnerable to liabilities. t

• PROFESSIONAL EVALUATIONS

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Understanding Snow ContractsBy Mike CollinsCutting Edge Property Maintenance

BOMA Greater Minneapolis • October - December 2014 • Page 7

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Everyday we work together to improve the real estate around us. Why not extend

our efforts to also help improve the community? By giving back to the community, we are not only given the opportunity to help those in need, but we show the world that doing good is simply the right thing to do.

So many businesses are currently making stronger efforts to promote community engagement. This is not only improving the community around us, but also creating additional opportunities for teamwork within the workplace. By providing employees the opportunity to get out of the office

during working hours and put their efforts to improve someone else’s lifestyle, it creates a sense of involvement, reward and motivation within the employees; which in turn can help benefit your business. People become more willing to step out of their comfort zone in order to be part of a workplace that positively affects the surrounding community. Motivated employees help to retain business and assist in leading successful ventures.

Not only does volunteering and supporting the community create more motivated employees in the workplace, but it also gives them the opportunity to broaden their skillset. Most community

service opportunities require those involved to problem solve and plan strategic solutions to the situations at hand. By allowing a group from the office to volunteer together, people are also given the opportunity to get to know others within the company they may not otherwise have the opportunity to work with. Team building with other people at the company will aid in personal and professional development, and will improve their on-the-job performance.Any business, small or large, can bring about change in society. Your acts of assisting the community will be seen by customers, vendors and owners, which can only benefit your business as well

as the surrounding community. Performing community service with your employees can also aid in reflecting most companies core values; whether those values be a culture of passion and caring, or enhanced leadership, acts of service will never go un-noticed. Now get out there, make a plan, start giving back and make a difference! t

By Ryan KochAckerberg GroupMember of the Communications Committee

Giving Back to the Community!

Page 8 • October - December 2014 • BOMA Greater Minneapolis

The Basics of the Eviction Process for Commercial LandlordsBy Brian N. NiemczykAttorney at Law, Hellmuth & Johnson, PLLC

By their nature, commercial landlord-tenant relationships seldom reach the point

at which eviction becomes necessary. The business people involved are usually able to reach a business resolution of whatever dispute they are having, without the need to resort to legal action. Sometimes, however, legal action to deal with a non-responsive and/or troublesome tenant simply becomes necessary. In that event, the law, the lease, and good sense require that the following steps be taken:

1. Hire an attorney.The first step in the process,

once you have decided to move forward with eviction, is to hire an experienced landlord-tenant attorney. Minnesota law in the area can sometimes be complex, and contains many traps for the unwary landlord. Your lease is likely also lengthy and complex, and may contain important provisions relating to your planned eviction which may only be apparent to a lawyer. If your property is owned by a company of some sort, and is not held in your individual name, you do not have a choice: under Minnesota law, you must hire a lawyer to file your case. The only limited exception to this rule is in Hennepin County, which allows

n o n - l a w y e r agents to appear on behalf of companies if the appropriate documents are filed. 2. Follow any pre-eviction notice procedures in the lease.Commercial leases are generally long, detailed documents. They always contain a number of paragraphs relating to landlord remedies in the event of tenant defaults, which usually require that tenants be given written notice of a default and an opportunity to cure before any eviction action can be asserted. You should carefully review any such provision and follow it to the letter before filing an eviction lawsuit.

3. Prepare, file, and serve an eviction complaint.If the tenant still fails to cure the default, the next step is to prepare and serve the eviction complaint. This part of the case will be handled by your attorney, with input on the facts and the nature of the default from you. The attorney will arrange for the case to be filed and for the complaint to be personally served on the tenant. The Court will immediately issue a summons for an initial hearing on the case for a date approximately two weeks after filing.

4. Proceed to default, settlement, or trial.If the tenant does not appear at the initial hearing, you will likely prevail and obtain an order for a Writ of Recovery by default. If the tenant does appear, the judge will encourage the parties to try to resolve the case through a

voluntary agreement either to: a) allow the tenant to cure the default and redeem their tenancy (by, for example, paying the back rent over time), or b) set an agreed-upon date for the tenant to vacate the premises. If no voluntary resolution is possible, the judge will need to ascertain whether the tenant has any defenses which would necessitate a trial. If so, a trial date will be set quickly and it will proceed to trial in a manner similar to any other civil case. If you succeed at trial in demonstrating that the tenant has defaulted on the lease, you will then be able to obtain an order for a Writ of Recovery. Very few eviction cases end of going to trial, because the most common type of default – non-payment of rent – is usually something that is not in dispute. 5. Arrange for a Writ of Recovery to be served by the sheriff.After obtaining an order for a Writ of Recovery from the Court, you and/or your attorney must then take the order to the Court Administrator to obtain an actual Writ of Recovery. That document must then be taken to the county sheriff for service upon the tenant. The exact procedures for obtaining and serving the Writ of Recovery will vary from county to county. You should consult an attorney familiar with the procedures in your county, or contact the Court directly for more specifics on these issues.

Continued on next page.

EVICTION NOTICE

BOMA Greater Minneapolis • October - December 2014 • Page 9

One of the largest and most trusted mechanical contractors in the country, Harris Companies provides a variety of services and will work with you

to deliver quality mechanical systems that meet any project need. Our local service team can provide maintenance programs that reduce

energy, owning, and operating costs. For a comprehensive building survey please contact us to schedule an appointment.

(651) 602-6500www.hmcc.com

6. Arrange for the removal or storage of any personal property left behind.One of the most difficult aspects of the eviction process is figuring out what to do with any personal property left behind by the former tenant, particularly if that property happens to be valuable. Unfortunately, Minnesota law is less than clear on a landlord’s specific duties under the circumstances. Those obligations vary depending upon whether the property is left behind after an eviction involving the sheriff, or whether the tenant simply abandoned the premises on their own. In either case, you are required to store the property either on the premises or at a storage facility, for a certain period of time. After that time period has expired, you may be able to either auction off or dispose of the property, if you follow certain specific steps and

provide specialized written notices to the former tenant. My general advice when faced with this situation is to do everything that you can (within reason) to allow the former tenant to take their personal property with them when they go. Before taking any steps to move or dispose of personal property left behind, you should definitely consult an attorney.

7. Consider suing separately for unpaid rent and/or other damages.So, you have now evicted your non-paying tenant and now have possession of your property again. The tenant now has to automatically pay you what you are owed in rent, right? Nope. Your eviction action dealt solely with the question of who is entitled to possession of the property. The only issue was whether the tenant was in default of their lease

or not. The Court’s role was not to determine how much money is owed, or to grant the landlord judgment in that amount. In order to bring such claims, you must start a separate lawsuit against the tenant seeking monetary damages for unpaid past and future rent, damage to the premises, etc. Often, such lawsuits are initiated in Conciliation Court, which can handle claims of up to $15,000. If you have a claim for more than that amount, the case must be filed in District Court. Before expending the time, effort, and resources to file such a lawsuit, you should consider carefully whether the tenant will ever actually be able to pay any judgment you obtain. This is especially true in commercial cases involving defunct business entities. Unless the business’s owner(s) gave you a personal guaranty of the business’s

obligations, you would be stuck with a judgment against an empty shell of a company, with no hope of future recovery.

If you follow these basic steps, you should be able to regain possession of your property from a defaulting commercial tenant in a matter of weeks.

Of course, every case is different, and some are more complex and difficult to resolve than others. This article is not intended to provide comprehensive legal advice concerning how to proceed if you decide to evict your tenant. Above all things, you should make sure to locate and hire legal counsel experienced in this area of law to guide you through the process and to advise you how best to proceed in your particular circumstances. t

Continued from previous page.

The Basics of the Eviction Process for Commercial Landlords

Page 10 • October - December 2014 • BOMA Greater Minneapolis

On May 20, 2014, Jeff Clark, Principal and Mechanical Designer

with Michaud Cooley Erickson presented as part of a panel to BOMA Greater Minneapolis. He shared seven (7) important factors of mechanical systems, relating to property planning for the medical market. Today, medical providers are focused on providing convenience to their patients in large metropolitan areas by leasing suites in properties not specifically constructed for health care clients. Building owners and property managers must have an understanding of the special requirements medical tenants have to function successfully. Key factors to consider during site selection, tenant improvement lease negotiations, design and engineering include the following:

1. HumidityIn Minnesota we are privy to a wide variety of weather conditions. In the winter, outdoor humidity is essentially non-existent whereas periods of the summer feel like you’re in a sauna. These extreme differences in humidity require special attention to mechanical systems design since outdoor conditions greatly affect indoor conditions. Certain healthcare spaces require indoor humidity levels between 20-60% relative

humidity (RH). This requires mechanical humidification systems and the ability to mechanically dehumidify the space. Special attention also needs to be given to the construction of the space envelope when mechanical humidification is employed. By raising indoor humidity levels in winter, a greater risk of forming condensate occurs. This can occur on the inside of exterior windows, within walls and ceiling spaces, and in attic spaces. The resulting effects can lead to water damage and other undesirable outcomes.

2. Mechanical Systems & ControlsIn many office buildings, HVAC systems are commonly just larger versions of your home furnace and air conditioner. The challenge with these systems in a commercial setting is controllability. When the temperature on your home thermostat drops below setpoint, the gas burner on the furnace turns on and burns at a constant rate until setpoint is achieved. The same sequence is typical to how most home systems cool the home. The problem arises when you employ this type of control strategy to a commercial building with many rooms that have differing heating and cooling needs, namely health care facilities. A better option is a system that includes Variable Air Volume (VAV) air handling units.

These systems are not only more energy efficient than your typical office building system, they also adapt to thermal diversity within a facility. An example of this is an office needing heating where the adjacent room houses a CT scanner, needing cooling. With a VAV system, each of those rooms would be designed as its own

zone and the control of the system would allow for one to cool and the other to heat. Many health care functions also require positive and negative air pressure relationships. This requires a design that uses controls to not only allow for thermal diversity but also for pressure diversity.

Chuck BlairBusiness Development ManagerCentral Region

ThyssenKrupp Elevator Americas2601 49th Avenue North, Suite 100, Minneapolis, MN 55430Telephone: +1 (612) 384-2485, Cell: +1 (612) 384-2485Fax: +1 (866) 523-2359E-mail: [email protected]: www.thyssenkruppelevator.com

Contact: John Skraba      [email protected] www.inspec.com    (763) 546—3434 

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Design and Operations in Healthcare Real EstateBy Jeff Clark, LEED-APPrincipal, Michaud Cooley Erickson

Continued on next page.

BOMA Greater Minneapolis • October - December 2014 • Page 11

3. 24/7 CoolingAny interior space or healthcare environment that requires 24/7 cooling provides challenges in our Northern climate. In recent years, we’ve seen a number of cassette type units hit the market and some of them are not rated below an outside temperature of 0° F. Systems designed for our climate that are rated to at least the suggested design winter condition of -12° F are strongly recommended. Another challenge

in a multi-floor building is when 24/7 cooling is required in a space without a direct path to the outdoors. A common suggestion made to a mechanical designer is to locate the condensing unit (the part that discharges hot air) in the ceiling plenum. The problem is the heat produced by that unit still needs to be rejected from the space. As a designer, I relate this strategy to sweeping crumbs under a rug. The heat isn’t being rejected from the space; it’s just being moved above the ceiling. In a building with a return air plenum ceiling, that heat is being introduced to the house air handling system. Odds are that system wasn’t designed to handle the additional load which means on the warmest days of the year, the whole building may not be able to be cooled effectively.

4. Air QualityThe mechanical system for a typical office environment is sized to deliver less airflow to a space than a typical system designed for a healthcare specific function. If a facility is to undergo a renovation for a healthcare tenant, common healthcare spaces require greater airflows than a typical office. For example, a typical office space is sized for less than 6 Air Changes per Hour (ACH) whereas an operating room requires a minimum

of 20 ACH. Code requirements in planning mechanical air handling systems are stringent and costly if not properly designed. This is where having an experienced mechanical designer on the project pays off in the long run.

Air filtration requirements are also higher in healthcare facilities. Some spaces even require HEPA filtration. Unwanted odors are definitely a concern in planning air handling systems. Food smells/preparation, vehicle exhaust, restrooms, laundry, generators and gas fired flues are all offenders. In health care facilities, code requires a minimum of 25 feet separation of outside air intakes and sources of undesirables whereas a normal commercial building only requires 10 feet of separation.

These distances are simply minimum distances and factors such as prevailing winds and adjacent structures should also be considered. Another undesirable is precipitation and we’re treated a wide variety of it in our climate. Undersized outside air intakes are extremely vulnerable to drawing in precipitation. The worst offender is snow. It will ruin air filters and draw water into the air handling unit which may eventually find its way into the building. A strong designer will be cognizant of these issues.

5. Water QualityHard water is a challenge for many types of mechanical systems. Mechanical systems supplied with hard water will require more frequent cleaning and maintenance to combat calcium and other minerals that form. Domestic hot water design has also changed in recent years due to biological invaders such as Legionella. The current trend is to store water above 140° F and store it in the smallest amounts possible. At the point of use, the water needs to be mixed to a safe temperature to prevent scalding.

6. Medical GasesThe most common medical gases are oxygen, medical air and medical vacuum. Each has its own specific code requirements with required alarms and hazardous classifications for storage. If the amount of gas stored in a room

reaches code maximum storage limits, the gases need to be stored in rooms with dedicated exhaust and fire-rated walls.

7. Fire ProtectionThe health, safety and welfare of general public are the foremost purpose of codes and life-safety requirements when designing occupied spaces by human beings. Protection from fire or Fire Protection is the term used for systems employed to extinguish fires with either water or clean agent suppression. Sprinkler heads for water are installed at the finished ceiling plane or within open exposed metal structural support systems. Clean agent suppression is a supplement to water and utilized where expensive equipment is housed that must be protected from water damage.

Healthcare facilities will continue growing to access communities in providing better patient outcomes and experiences. Planning quality mechanical systems and controls to best support these healthy environments will have major ROI.

These mentioned factors are essential to create a safe and healthy healthcare facility. t

Design and Operations in Healthcare Real EstateContinued from previous page.

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