Hartford Business Journal

10 Hartford Business Journal • September 2, 2019 • www.HartfordBusiness.com CT takes first steps to reforming derided Transfer Act Q&A talks with Pamela K. Elkow, a partner at Stamford law firm Carmody Torrance Sandak & Hennessey LLP, about the Transfer Act, a controversial state statute that has had a major impact on the commercial real estate market. Q. The state's Transfer Act has re- ceived a lot of attention this year but has long been a thorn in the side of the commercial real industry. Can you briefly explain what it is? A. In short, the Transfer Act requires the seller of an 'establishment' — which can be real property or a business — to determine whether there has ever been a spill at the parcel prior to selling. If there has not, or the spill has already been cleaned up or doesn't need to be, the seller files one of two forms with the Department of Energy and Environ- mental Protection (DEEP) and can move forward with the transaction. If the seller is unsure of a previous con- tamination, or didn't clean up a previous issue, then either the seller or the buyer must agree to investigate the parcel and clean up any contamination that is found. A property qualifies as an 'estab- lishment' and must comply with the Transfer Act if: On or after Nov. 19, 1980, more than 100 kilograms of hazardous waste was generated (i.e., created) in any one month, with some exceptions; hazardous waste generat- ed at a different location was recycled, reclaimed, reused, stored, handled, treated, transported or disposed of, or; on or after May 1, 1967, dry cleaning, furniture stripping or vehicle body repair was conducted on-site. Q. Why has it been controversial? It's been controversial for a few rea- sons. First, it is atypical. Only one other state has a similar 'transfer law.' So, any- one from out of state must be educated about the Act, and buyers or investors in Connecticut know that most other states do not have similar requirements. The Act was originally adopted in 1987 to protect buyers, but today, environ- mental due diligence is commonplace. Buyers do it, lenders require it. Federal and some state statutes provide liability protection for buyers who perform 'all appropriate inquiry' before buying a property. As a result, the Act is per- ceived by many as having morphed from a statute intended to protect buyers to the DEEP's primary remedial program. The program is also controversial because it is tied to the sale of real prop- erty or a business, not to actual con- tamination. The Act applies only when a property or business is transferred, Pamela K. Elkow Partner, Carmody Torrance Sandak & Hennessey LLP FOCUS: Real Estate/Office Management By Joe Cooper jcooper@hartfordbusiness.com M any companies in recent years have pivoted to open f loor plans within their of- fices, believing they boost re- cruitment, productivity and collaboration. But recent studies by Harvard Business School research- ers suggest that isn't necessarily true. In fact, their findings published by London-based scientific academy Royal Society claim that open office spaces with lim- ited boundaries actually decrease face-to-face interactions by approximately 70 percent, and increase virtual interaction via email and instant messenger. "Rather than prompting increasingly vibrant face-to- face collaboration, open architecture appeared to trigger a natural human response to socially withdraw from office- mates and interact instead over email and IM [instant mes- senger]," according to the study, which tracked two Fortune 500 companies working in both a traditional cubicle-office format and then in an open space. The study surfaces as numerous Connecticut employers, and others nationwide, have increasingly adopted open floor plans, in part to remain on the cutting edge. Recent examples in downtown Hartford include Travelers Cos., Aetna, Conning and Virtus Investment Partners Inc., which have all pushed their offices further into open concepts. Several Greater Hartford architecture firms rebutted the Harvard study, arguing that open offices ramp-up workplace efficiencies, technology use and catch the eye of Millennials. Open Office Debate CT designers rebuke data suggesting open offices are productivity killers (Top) Hartford's Crosskey Architects, based in downtown Hartford's The Stark Building, has tested an open floor office concept at its headquarters. Hartford's Conning (left) and Farmington-based QA+M Architecture (right) have also implemented open office designs. PHOTOS | CONTRIBUTED

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