Common use of Duration and Scope Clause in Contracts

Duration and Scope. The DRRA enabling legislation specifies an initial five-year term for DRRAs unless otherwise agreed to by the county and the developer. The DRRAs in the four counties studied ranged from 5 to 40 years. While five years may not be enough time for large, complex, mixed-use developments to get to the point of foundations coming out of the ground, the enabling legislation offers the option of extending the agreement. Decade-plus DRRAs can tie the hands of future elected leaders in responding to changing needs, conditions and fiscal constraints. Modification/Termination. DRRAs can be terminated by mutual consent. Otherwise, they cannot be easily undone. A local government can only suspend or terminate a DRRA, after a public hearing, if officials can show that the change is essential to ensure the public health, safety or welfare of residents. This can be a difficult case to make and may result in costly litigation. In summary, experience has shown that although DRRAs can be a useful land-use tool, significant concerns have been identified by this study in the application of Maryland’s DRRA legislation by local governments. The consensus questions focus on whether the DRRA enabling legislation should be reviewed and adjusted and, if so, what key issues should be addressed to ensure more focused and strategic use of DRRAs going forward.

Duration and Scope. The DRRA enabling legislation specifies an initial five-year term for DRRAs unless otherwise agreed to determined by the county and the developer. The Most of the DRRAs in the four counties studied ranged from 5 15 to 40 years. While five years may not be enough time for large, complex, mixed-use developments to get to the point of foundations coming out of the ground, the enabling legislation offers the option of extending the agreement. DecadeDecades-plus long DRRAs can tie the hands of future elected leaders in responding to changing needs, conditions and fiscal constraints. Modification/Termination. DRRAs can be terminated by mutual consent. Otherwise, they DRAAs cannot be easily undoneundone if concerns surface. A local government DRRAs can only suspend be modified or terminate terminated by a DRRA, after a public hearing, jurisdiction if local officials can show that the a change is essential to ensure the public health, safety or and welfare of residents. This can be a difficult case to make and may result in costly litigation, as happened in Queen ▇▇▇▇’s County. In summary, experience has shown that although DRRAs can be a useful land-use tool, significant concerns have been identified by this study in the application of Maryland’s DRRA legislation by local governments. The consensus questions focus on whether the DRRA enabling legislation should be reviewed and adjusted and, if so, what key issues should be addressed to ensure more focused and strategic use of DRRAs going forward.