The immediate and long-term effects of the COVID-19 pandemic are expected to change the way businesses operate and communities plan, zone and regulate land use and development.  Below is a summary of a few of some issues and trends facing communities and businesses.  Municipalities should proactively approach this “new normal” and consider modifying zoning and

As you have undoubtedly heard, the COVID-19 pandemic caused countless businesses to turn to their insurance companies for assistance, making claims under their policies for business interruption coverage.  While every insured’s policy is different, insurance companies are almost universally denying such claims.  Business owners are left frustrated and wondering what exactly they have been paying for when it comes to business interruption coverage.

In denying claims, insurance companies argue that business interruption insurance is not meant to cover closures related to COVID-19.  Under most policies, business interruption coverage only applies if there has been a direct physical loss of use or damage to property related to a covered loss.  While many insureds argue that a virus contaminating the surface of their property is a loss of use, and thus covered, insurance companies have generally rejected such arguments, instead requiring direct physical damage.
Continue Reading Business Interruption Insurance: An Uncertain Path

On May 4th, 2020 ,the Governor’s Office issued new guidance for businesses as they become authorized to restart in-person operations pursuant to the Administration’s phased red-yellow-green plan.  The guidance, which can be found here, includes a series of mandatory protocols designed to reduce the spread of COVID-19 between and among employees and customers.  These protocols are binding upon “[a]ll businesses in all industries and sectors of the economy (including non-profit entities), in the Commonwealth, that are permitted to conduct-in person operations…unless they are otherwise more stringently regulated under separate industry-specific guidance”.

Recently, the Governor’s Office announced that twenty-four Pennsylvania counties will transition to the “yellow” phase on May 8th, thereby authorizing businesses in those counties to restart in-person operations on a limited basis. 
Continue Reading May 8 Opening: Guidance (Portions Mandatory) From The Commonwealth For Businesses

On April 22, Governor Wolf announced an amendment to his standing shutdown and shelter in place order that permits construction projects to resume statewide on May 1st.  This news comes just days after the Governor’s office released its “Plan for Pennsylvania,” which authorized “limited construction” activities beginning on May 8th.  Per

Steve Matzura, Andrew Levy and Austin Wolfe recently issued a client alert updating our clients on newly required safety measures for COVID-19 in the workplace.  The first half of the alert is below, but you should contact one of the authors for more details or the full alert.

The Pennsylvania Department of Health issued an Order effective April 15 requiring social distancing, cleaning, use of masks for employees and visitors, and other mandatory mitigation protocols for businesses authorized to maintain in-person operations during the ongoing COVID-19 emergency (except for healthcare providers). This Order expands on the Department of Health’s prior order effective April 6 that required building safety and cleaning measures for certain businesses.  Employers have only a few days to comply with the April 15 Order, as it becomes enforceable on April 19, 2020 at 8:00 PM.
Continue Reading Workplace Regulations: PA Newly Required Safety Measures for COVID-19

Here is a headline most developers and builders would not want to see associated with their project: “’Life-sustaining’ casino? Construction continued in South Philly despite Gov. Wolf’s coronavirus shutdown. At least two workers have tested positive.”  Per the above Philadelphia Inquirer article, what has made matters worse for the developer are claims from many trades that the developer, a very large international development company, “wasn’t doing enough to protect them from being infected.”  Moreover, the developer’s “waiver” from the Governor’s Order, that essentially closed all non-life-sustaining businesses (more information available throughout this blog) to combat the COVID-19 coronavirus, is now at risk.

The story provides a great example of what not to do to if you want your business to avoid bad public relations, sick and upset employees and contractors, potential related lawsuits, and putting your waiver at risk.  Below are three short lessons pulled from the article:
Continue Reading A Story of Warning for Developers & Builders Operating in Pennsylvania

Overview of Force Majeure
With COVID-19 headlines dominating the news cycle, and with no end in sight to the uncertainty that the virus brings, affected businesses are wise to consider whether the current pandemic qualifies as a “force majeure.”  In the last few weeks, the Chinese government has issued “force majeure certificates” to domestic businesses as a way of shielding companies from breach of contract claims, American businesses are sending mass e-mails to customers explaining that the virus prevents the company’s performance or operations, and businesses in an array of industries have sent formal inquiries to their service providers seeking confirmation of continued performance.

What is “Force Majeure”
The defense of force majeure will excuse a party’s performance under a contract if
Continue Reading Force Majeure Provisions and the Impacts of COVID-19

Black Box Kitchens, Dark Kitchens, Ghost Kitchens, or Zombie Kitchens.  Terms like these may sound scary, like the stuff of nightmares.  But these terms are used to describe an emerging food service industry concept known as “virtual restaurants.”

Very simply, virtual restaurants are kitchen-only restaurants.  With the rise of online and mobile app food delivery services, such as GrubHub, Uber Eats, Favor and DoorDash, traditional “brick-and-mortar” restaurants are turning more often to virtual restaurants to keep up with their customers’ preferences and demands.  There are no in-restaurant ordering or dining facilities:  no registers, no servers, no money, no tables or chairs.  Virtual restaurants are commercial kitchens purely for processing, preparing and fulfilling food orders.

Virtual kitchens can take many forms. 
Continue Reading Don’t be Afraid of Ghost or Zombie…Kitchens

When I first read Lancaster County’s Places2040 Comprehensive Plan (you can read my summary of the Plan adopted in October 2018 HERE), one “Catalytic Tool” caught my eye in particular: simplify zoning.  Make no mistake, complicated zoning ordinances are not unique to Lancaster County.  In Pennsylvania, where land use is controlled at the municipal level, there is often no consistency in how zoning is regulated from one township, borough, or city to the next.  To add further complication, municipal boundaries don’t always align with places, communities and corridors.  As a result, two comparable properties located in the same neighborhood can be governed by vastly different zoning regulations.  With a system that is so fractured, how can we meaningfully work towards simplifying zoning in Lancaster County and across the Commonwealth?

To answer this question, the Lancaster County Planning Commission (“LCPC”)
Continue Reading Simplified Zoning: Paradox or New Paradigm?

Yesterday morning on the McNees Minute on ABC 27, I briefly discussed the role local public officials – such as your municipality’s council members, commissioners or supervisors – have in the development and redevelopment processes for our communities.  They play a major role in ensuring our land is developed in a smart, safe and efficient manner that provides for all the needs of a community.  I stressed the importance of electing public officials who are willing to trust municipal staff and other consultants.  In addition, I touched on why it is important to elect public officials who are willing and able to collaborate with developers and property owners.  Finally, I offered that it is equally important for developers and property owners to engage land use professionals who also are collaborative and able to work with elected public officials and municipal staff.  Having forward thinking, collaborative people in each of those roles is vitally important to the future development and redevelopment of our communities.

There are many posts on this blog that discuss or analyze the situation where a municipal ordinance has become antiquated.  We’ve discussed situations where ordinances just haven’t considered
Continue Reading Collaboration: A Better Way to Develop