aeries development entitlement review

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AERIES DEVELOPMENT

ENTITLEMENT REVIEW

• Aeries,withitslegalcounsel,identifiespermittingovercharges, challengesandrecoversthoseovercharges.

• AeriesprioritizestheAffordableHousingLinkageFee.Thisfeeis oftenthelargestfeeinaluxuryhomedevelopmentandaddsup to$18.69persquarefoottothecostofaluxuryhomebuildasof 2020(increasing2to3percenteachyear).

• AeriestypicallyseesLinkageFeerecoveriesofapproximately1/2 theoriginalLinkageFeecharge.

• Feerecoverytakesabout9months.

• Feerecoverymaybesoughtuptotwoyearsafterpermitissue.

DISTRIBUTION OF FUNDS

• Aeries’counselworksoncontingency.Nomoneyisrequiredfrom theClientupfront,andnomoneyisowedifthereisnorecovery.

• TherecoveryamountissenttocouncilbyCityOfLosAngeles.

• 1/3oftherecoveryamountisretainedbycouncilas contingencypayment.

• 2/3oftherecoveryamountisdistributedbycounseltoClient.

• 10%oftheClient’sshareispaidtoAeiresbyClient. CASE STUDY

BelowpleaseseetheoriginalLinkageFeelineitemamongalistof permitfeesassociatedwithAeries’owndevelopmentat1529AmalfiDrive($53,656.96).TheCityofLosAngelessubsequentlyreimbursedAeries53.34%oftheoriginalLinkageFee($28,625.12).

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