Law Times

Law Times • January 19, 2009 FOCUS Real estate bar faces learning curve BY DARYL-LYNN CARLSON For Law Times on their entrusted counsel to pro- vide advice on green technologies and related compliance regimes. Not only is the market for M environmentally friendly and re- source-efficient buildings gripping the conscience of developers of all stripes, the related materials and practices used during the process of constructing green buildings is translating into hard savings the in- dustry can no longer ignore. "Really in the last 10 years, lawyers in the development in- dustry, in real estate, or construc- tion lawyers are all getting used to the idea of clean buildings," says Duncan Glaholt, partner with a leading construction law practice at Glaholt LLP. "So it's here and it's vitally necessary. The statistics are profound." Glaholt cites national statis- tics that indicate 30 per cent of all energy used in Canada is by the domestic construction industry. Thirty per cent of all greenhouse emissions are connected with con- struction, and 40 per cent of all raw materials produced in Canada are consumed in construction proj- ects. Aside from social perception, economics show that resource-con- suming conventional buildings will lose money compared to environ- mentally friendly designs. While green construction proj- ects cost anywhere from two to 15 per cent more over the longevity of a building, a property owner can achieve a 20-per-cent savings in operation costs, he says. And there's no telling when carbon credits will be applied to building construction. "It wouldn't surprise me to see this permeate the area of development charges. "With this economic model, we've now figured out as an indus- try that green buildings make a lot of sense," says Glaholt. "When you look at that math, it's small wonder all the big owners and developers and governments are looking at" green project options. "What we're heading towards is an area where developers and their legal counsel will be looking for approvals based on green equiva- lents." Yet he adds, "The next thing is catching the law up to the imperative." Glaholt points to the Ontario Building Code Act that was up- dated in 2007 to incorporate a more pragmatic approach to construction standards. The re- visions move the code away from being a prescriptive document of requirements to one that ac- commodates new technologies and innovation emerging in the green technology sector. British Columbia has also re- vised its building code and intro- duced green building incentives, while other projects are underway. The Canadian Green Building Council, an independent organi- zation of construction and green technology professionals, issues standards under its Leadership in Energy and Environmental De- sign criteria that is recognized na- tion-wide. The council intends to facilitate improvements of 100,000 buildings and one million homes At Stewart Title, it's how we work that sets us apart. We deal in title insurance and related products, undertaking no part of the transaction that has traditionally fallen to legal professionals. Since our inception into the Canadian market, you will find that we have consistently combined comprehensive coverage with unparalleled support for legal professionals. We are dedicated to streamlining your practice and increasing your revenue through our programs and innovative technology solutions. At Stewart Title, we know it's our relationship with our customers that determines our success. That's why service is the foundation of our business and integrity, the keystone in all our dealings. Call us today or visit www.stewart.ca. Canadian Head Office (Toronto): (888) 667-5151 Atlantic Canada: (888) 757-0078 Western Canada: (866) 515-8401 Québec: (866) 235-9152 ore developers, both commercial and resi- dential, will be calling across Canada by 2015, with a 50-per-cent reduction in energy and water usage based on 2005 consumption volumes. John Naccarato is a senior partner at Ogilvy Renault LLP and agrees green projects are poised to both become popular and prosperous. He also acknowl- edges, "There is a bit of a lead in terms of the technology and the legislation and regulation follow- ing behind but that's typical." In Ontario, he says, "The new code and act provide for greater flexibility and innovation potential for those who want to design and construct buildings that are more energy efficient or take advantage of advances in technology that are occurring at a relatively rapid pace." The revised code is still ap- proved and enforced municipally for any construction or renovation permits. The LEED specifications are quite well established, if not pioneering in their progressive approach to issuing guidelines and standards through which builders can obtain formal certification. constructing the project. The Ca- nadian Standards Association also has kept pace in certifying build- ing materials, most recently intro- ducing a specification regime for the installation of solar panels. The City of Toronto is poised this spring to introduce specifica- tions for its Green Roof Bylaw, mandating new buildings to in- clude rooftops that can sustain vegetation growth and augment energy and water conservation. "Essentially what this does is In the last 10 years 'lawyers in the development industry, in real estate or construction are all getting used to the idea of clean buildings,' says Duncan Glaholt. Based on a set of criteria, build- ers can apply for LEED certification on any of four different levels: certi- fied, silver, gold, and platinum. The certification criteria are based not only on a building's green operational functions, but also on the process used in provide for a greater consciousness not only in the initial construction and development of a building, but also its impact on the environment and how the building sustains occupation," says Naccarato. "There are savings in the ener- gy consumption and the require- ments to maintain and repair because these technologies have a greater lifespan," he says of the cost to operate green buildings. "The payback is in energy con- servation cleaning costs, waste management, water consump- tion, and sewage, the costs are all lower. So it makes economic sense to make these expenditures." Richard Sutin, co-chairman of the Cleantech group at Ogilvy Renault LLP whose practice fo- cuses on finances and securities, says more effort is being made in the sector to assist parties involved in facilitating green buildings with processes and procurement. "Over the coming year there is going to be a lot more awareness as to what's available and a lot more effort to educate people on the sup- pliers of these," says Sutin. He points to resources includ- ing Greening Greater Toronto, an initiative by the Toronto City Sum- mit Alliance to pool resources and provide funding for projects that has a web site listing suppliers. There is also another resource in the works that will serve as a sort of "home show" for green materi- als suppliers targeting both builders and consumers, says Sutin. "It's exciting but a bit over- whelming too," he says about keeping up with developments. "A big part of making this work is getting a handle on the economics." LT PAGE 13 Untitled-3 1 www.lawtimesnews.com 10/27/08 10:17:34 AM

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