Winter 2010 Editors: William J. Brian, Jr. bill.brian@klgates.com +1.919.466.1261 Eric M. Braun eric.braun@klgates.com +1.919.743.7386 – Raleigh +1.919.466.1263 – RTP From the Editors This newsletter focuses on two primary trends, revisions by local governments of their land development regulations and the limitations imposed by courts on the ability of state and local governments to regulate land development. Many local governments are taking advantage of the lull in development-related applications to revise their development regulations, and often these efforts result in more restrictive regulations. However, recent state court decisions indicate a willingness to rein in governmental authority to regulate land use. In anticipation of a healthier economy and increased development activity, developers should be aware of the shifting regulatory landscape. ____________________________ In this issue: North Carolina Appeals Court Strikes Down Union County School Facilities Ordinance Update: Durham's Form-Based Zoning Elements “Sustainable Growth We Can Afford” - Morrisville Mayor Jackie Holcombe’s Vision Inclusionary Zoning: A Primer Update: Raleigh's New Unified Development Ordinance Reminder: Permits, Plats and Plans Extended Durham City and County Propose Increased Environmental Protections for Durham’s Unified Development Ordinance Court of Appeals Considers NCDOT Authority to Require OffSite Improvements Raleigh Comprehensive Plan Amendment Process Attorneys Join Triangle Land Use, Planning and Zoning Practice K&L Gates includes lawyers practicing out of 35 offices located in North America, Europe, Asia and the Middle East, and represents numerous GLOBAL 500, FORTUNE 100, and FTSE 100 corporations, in addition to growth and middle market companies, entrepreneurs, capital market participants and public sector entities. For more information, visit www.klgates.com. We hope you find this edition of the Triangle Land Use Newsletter to be of interest and we welcome any feedback (email bill.brian@klgates.com or eric.braun@klgates.com). ______________________________________________________________ North Carolina Appeals Court Strikes Down Union County School Facilities Ordinance Eric M. Braun and James L. Joyce This past December, a panel of the North Carolina Court of Appeals struck down a Union County Adequate Public Facilities Ordinance (APFO) as being outside the County’s statutory authority. The Union County ordinance compared a proposed development’s size with estimated school capacities, and if the County determined that the development would overburden the schools, the proposal would either be denied, delayed, or redesigned, or the developer would have to construct new facilities or make a voluntary payment to the County. A group of homebuilders and developers challenged the ordinance in 2006, but the trial court upheld the ordinance. The homebuilders and developers appealed to the North Carolina Court of Appeals, which reversed the trial court and struck down the ordinance. Although the opinion authored by Judge Barbara Jackson noted that the provision of schools is one of the permissible aims of zoning regulation, it ruled that the means used to achieve those objectives are limited to the methods explicitly outlined in the zoning enabling statute. Likewise, while the subdivision statute allows counties to require the construction of community service facilities in accordance with county plans and to reserve school sites, the Court of Appeals ruled that a county can not enforce a land use ordinance that may require a developer to pay money, donate land, or provide for school construction. Triangle Land Use Newsletter In addition, the court viewed this ordinance as an attempt to circumvent its 2006 decision in Durham Land Owners Association v. County of Durham. In Durham Land Owners, the court emphasized that counties are ultimately responsible for the provision of school facilities, and can not delegate a portion of that responsibility through the imposition of impact fees. In the Union County decision, the court likened Union County’s APFO to the ordinance rejected in Durham Land Owners, in that it impermissibly shifted “a portion of the burden for funding school construction onto developers,” and was an attempt to obtain indirectly the kind of payment that the court refused to allow counties to obtain directly in Durham Land Owners. The recent Union County decision suggests that the current Court of Appeals will take a narrow view of local government authority to regulate land development, particularly where some element of the ordinance involves a payment on the part of the developer. Therefore, APFOs in other cities and counties may likewise be vulnerable to legal attack following the Court of Appeals’ ruling. _____________________________________ Update: Durham’s Form-Based Zoning Elements Michael J. Ovsievsky and Craigie D. Sanders At its February 1, 2010 public hearing, the Durham City Council unanimously adopted an ordinance amending the Durham City-County Unified Development Ordinance (“UDO”). These changes have been in the works for more than a year and will significantly alter the look of downtown Durham and the downtown Durham development process. Aimed at creating a “flexible regulatory structure that promotes development in the Downtown Tier with a high priority on a pedestrian-oriented public realm,” the amendments to the Durham UDO include significant “form-based” zoning concepts applicable to Durham’s downtown. Unlike conventional zoning that focuses on a separation of land uses, “form-based” zoning instead focuses on the role that individual buildings serve in shaping the streetscape and adjacent uses, and how buildings relate to one another, pedestrian areas, roads, and open spaces. Moreover, this type of zoning allows for a mixture of land uses, provided that the new development fits within the context of the existing community. These concepts are more compatible with the relatively recent focus on urban, mixed use development. Among the new changes to the Durham UDO are: 1. The establishment of a Downtown Design (“DD”) District aimed at “encouraging intense development and pedestrian activity,” which is then broken into three (3) sub-districts: (i) Core (highest, most dense urban development with a focus on vertical development and uses), (ii) Support 1 (moderate intensity also focused on a mixed use urban environment, while respecting adjacent development), and (iii) Support 2 (intended to provide transition at the edge of the District to less intense, often residential, development). Each sub-district has established standards for building height and upper story step-backs, ratios of building height to street width, and building placement on the site. 2. The unification of uses permitted in the DD District. In general, uses that can be accommodated in higher density developments are allowed in the DD District, such as residential, community services, commercial and retail, offices, and hotels, while uses that are land intensive, with minimal activity, are prohibited. 3. The establishment of certain requirements applicable to the DD District that can be viewed as addressing the growing importance of sustainability in urban development, including, e.g., additional standards for trash handling, revised landscaping provisions and standards for street trees and vehicular use areas, and revised provisions for bicycle parking in downtown. Among the benefits resulting from the Durham UDO changes should be greater predictability and a smoother application and project review process for downtown Durham real estate projects. With the recent approval by the City Council of these changes to its UDO, Durham finds itself at the forefront of a growing list of cities that have been investigating and, in certain cases such as in the City of Miami, transitioning from a conventional zoning scheme to one which is form-based. The Winter 2010 2 Triangle Land Use Newsletter recent amendments to the Durham UDO are not likely to be the end of similar zoning changes in and around the Triangle. For example, as part of the implementation of its 2030 Comprehensive Plan, the City of Raleigh is currently undertaking a process to develop a new development code, which will also take the form of a UDO. Discussion has already begun about the extent to which form-based zoning concepts will be part of this new UDO. _____________________________________ “Sustainable Growth We Can Afford” – Morrisville Mayor Jackie Holcombe’s Vision Holcombe is going to be sensitive to development plans that have the potential of causing additional problems for the Town’s already overburdened transportation infrastructure. We were relieved to hear that Mayor Holcombe is very aware of the criticisms that the development community has made of the cumbersome development review process in Morrisville. While not ready to concede that a greater number of site plans will be reviewed and approved at the staff level, she is committed to ensuring that the process becomes more predictable, efficient and effective. In sum, Mayor Holcombe wants to see “sustainable growth we can afford.” Jason L. Barron Last year’s local elections ushered in a wave of changes in the Triangle. In Wake County, although most of the attention was paid to the board of education races, there was a changing of the guard in some other key places. Included among those was the Town of Morrisville, which added three new members to its Town Council, including Mayor Jackie Holcombe. We had the chance to catch up with Mayor Holcombe recently to discuss her agenda for the next couple of years, specifically as it relates to planning and development matters. Like most places, the Town is going to be very focused on its budget and, specifically, how the Town is spending taxpayer money. In fact, it was a proposed 19% tax increase by the prior administration that galvanized Mayor Holcombe’s decision to seek a return to the Council, this time as mayor. In addition, there will be greater transparency in the governing process in Morrisville, with a special emphasis paid to looking for ways to get more folks involved in the Town’s policy formation process. From a planning and development standpoint, Mayor Holcombe wants to preserve the small town feel of Morrisville, adding that realizing the objectives of the Town’s recently adopted Town Center Plan is going to play a key part in that process. Each development proposal that comes forward will be carefully reviewed to ensure that critical stormwater measures are implemented during the development process. Additionally, given the Town’s central Triangle location, Mayor We appreciate Mayor Holcombe sharing her time with us and look forward to working with her in the future. _____________________________________ Inclusionary Zoning: A Primer Michael Birch and James L. Joyce Many Triangle-area local governments are currently revising their development regulations, and one policy option that they are considering is inclusionary zoning. For instance, the Town of Chapel Hill is currently in the process of public review of a draft ordinance that would replace the Town’s current inclusionary zoning program, and the City of Raleigh is considering the incorporation of inclusionary zoning elements in its new Unified Development Ordinance. What is inclusionary zoning? Inclusionary zoning is a regulatory tool designed to encourage the provision of affordable housing. Most inclusionary zoning ordinances in North Carolina are voluntary, in that they encourage developers to “set aside” some new homes as affordable (however the ordinance defines affordability) through the use of various development incentives, including density bonuses, reduced development fees, or relaxed development restrictions. In some cases, however, inclusionary zoning set-asides are mandatory. Where is inclusionary zoning in place? The Towns of Davidson, Manteo, Chapel Hill, Kill Devil Hills, Carrboro, the City of Wilmington, Winter 2010 3 Triangle Land Use Newsletter Orange and Dare Counties, and the WinstonSalem/Forsyth combined planning area all have some form of inclusionary zoning. The ordinance in effect in each area is slightly different, and thus offers different opportunities and constraints. What is the legal status of inclusionary zoning? Several North Carolina municipalities have received explicit authorization from the General Assembly to offer density bonuses for the voluntary production of affordable housing, but for other areas the legal authority to engage in inclusionary zoning is less certain. Although the authority to engage in inclusionary zoning could arguably be implied from the zoning, subdivision, or police powers, it is unlikely that such authority would actually be implied by a North Carolina court, particularly in light of the Court of Appeals’ recent decision in Union Land Owners Association v. Union County. What’s next? As noted above, several local governments have received special state legislation to adopt incentivebased inclusionary zoning programs. Many jurisdictions have also attempted to obtain local legislation to implement mandatory inclusionary zoning ordinances; but, these attempts have not been successful. Going forward, developers and homebuilders should be aware of whether the jurisdictions in which they do business are considering any form of inclusionary zoning. K&L Gates attorneys in the Raleigh and Research Triangle Park offices are monitoring this issue, and will continue to alert you when Triangle-area local governments are considering adopting inclusionary zoning programs. _____________________________________ Update: Raleigh’s New Unified Development Ordinance Mack A. Paul IV and Michael Birch Now that the 2030 Comprehensive Plan has been adopted, the City of Raleigh is moving forward with its overhaul of the City’s development regulations. Code Studio, the consulting firm hired to lead this effort, has already held public input sessions and is currently reviewing the existing zoning and subdivision regulations. The next few months of the process will be indicative of what the new unified development ordinance (“UDO”) will include and how it will change the land development process. Regardless of the specifics, the upcoming changes to the current regulations will impact the costs associated with land development, and the development community and property owners should be involved from the start. In October 2009, the consultants began the publicinput portion of the process. Code Studio held three public listening sessions and twelve stakeholder sessions. These meetings focused on what the community viewed as “good” and “bad” aspects of the current development code. The comments received from these meetings were taken into account by Code Studio as they performed a critical assessment of the existing development regulations. Code Studio reviewed the current ordinances, the current development review process and the 2030 Comprehensive Plan policies in order to identify the shortcomings of the existing regulations and determine how the existing regulations can be improved to foster a more efficient, transparent and dependable process. They also analyzed the best practices implemented by cities that recently underwent a major code rewrite. Having recently completed this assessment, Code Studio produced a “Diagnostic and Approach Report” on February 1, 2010. This report is currently being circulated for comment, and a revised version will be presented to the City Council in March. After reviewing this report, the City Council is expected to formally direct City Staff and Code Studio as to the general “coding approach” to take. While the Planning Commission will serve as the primary advisory body, the City Council recently appointed a 13-member UDO Advisory Group. This board includes representatives from citizen advisory councils and neighborhood groups, city commissions, environmental interest groups, affordable housing interest groups, developers, business groups and land use attorneys. This diverse group will play an integral role in reviewing the consultant’s reports and drafts of the UDO. Eric Braun, a partner in the Raleigh and Research Triangle Park offices of K&L Gates, was the only land use attorney appointed to the UDO Advisory Group. Winter 2010 4 Triangle Land Use Newsletter The impact of the new UDO cannot be overstated. Raleigh’s present development regulations have been in place for almost thirty years without substantial changes. The new UDO will alter the land development practices and procedures that many have grown accustomed to over the years, and it will guide development in Raleigh for the foreseeable future. K&L Gates will continue to be involved in this process, both formally through the UDO Advisory Group, and informally through stakeholder meetings, and will inform you of the latest developments in this process. The Diagnostic and Approach Report can be found at: http://www.raleighnc.gov/publications/Planning/Pla ns_in_Process/New_Development_Code/NRC_Diag nostic_and_Approach_Report.pdf _____________________________________ Reminder: Permits, Plats and Plans Extended Eric M. Braun and Jason L. Barron Last year, the North Carolina General Assembly enacted Session Law 2009-406, “An Act to Extend Certain Government Approvals Affecting the Development of Real Property Within the State” (the “Act”). Under the Act, the running of any development approval that is current and valid at any point between January 1, 2008 and December 31, 2010 is suspended during this time period. In addition to extending development approvals, the Act also revives those development approvals that expired after January 1, 2008 but before the Act was adopted on June 30, 2009. The Act broadly defines “development approval” to include sketch plans, preliminary plats, subdivision plats, site plans, special use permits, conditional use permits, and building permits. All state agency approvals, except for North Carolina Department of Transportation permits, are also extended by the Act. Given the broad nature of the Act and the many different jurisdictions it affects, unanticipated consequences may arise when evaluating how an extended permit may impact fees, infrastructure installation and bonding requirements. For example, an approval may be conditioned upon completing infrastructure improvements by a certain date, or posting a bond or guaranty. How are these conditions affected by the Act? State agencies and local governments may answer these questions differently. Since this legislation was enacted, K&L Gates attorneys have worked closely with developers, as well as state and local government officials concerning the proper application and interpretation of the Act. _____________________________________ Durham City and County Propose Increased Environmental Protections for Durham’s Unified Development Ordinance William J. Brian and Patrick L. Byker For more than a year, the Durham Planning Department has been working on proposals to increase the standards applicable to four items of environmental concern: 1) Sedimentation and Erosion Control; 2) Water Quality/Stream Buffers; 3) Site Preparation; and 4) Tree Protection and Preservation. From late 2008 to mid-2009, a group comprised of elected officials, environmental activists, developers and engineering consultants (“Steering Committee”) reviewed a multitude of proposed “environmental enhancements” to Durham’s Unified Development Ordinance (“UDO”). Ultimately, the Steering Committee endorsed 23 environmental enhancements to the UDO within the four environmental areas of concern. For Sedimentation and Erosion Control, the Steering Committee recommended that the UDO require an erosion control plan, submitted and stamped by a certified professional engineer, for any land disturbance of 20,000 square feet or more. Currently, the threshold for an erosion control plan is one acre (43,560 square feet). Further, the Steering Committee recommended mandating the use of skimmers within stormwater BMPs, and mandating stabilization (i.e., planting) of steep slopes, traps and basins within seven days, and moderate slopes within ten days, down from the current requirement of 21 days. Winter 2010 5 Triangle Land Use Newsletter To address Water Quality and Stream Buffers, the Steering Committee recommended increasing stream buffer widths so that all perennial and intermittent streams within the Rural and Suburban Tiers will have 100 foot buffers. The buffers on streams in the Urban Tier will also be set at 100 feet, but that could be reduced to 50 feet based on land availability. In the Downtown and Compact Neighborhood Tiers, the buffer widths would be 50 feet. In addition, the Steering Committee recommended increasing from 25 feet to 50 feet the buffer required around any wetland area greater than one acre. In regard to Site Preparation, the Steering Committee recommended that “mass grading” be defined in the UDO as “the grading of four acres or more at one time to prepare land for construction.” To that end, it recommended that the UDO be amended to mandate what is known as “fingerprint” grading for single-family residences built on lots of 10,000 square feet or greater. Under the fingerprint grading regime, only areas to be used for roads, utilities and up to 20 feet in excess of the foundation area may be graded. In addition, projects meeting this fairly restrictive definition of mass grading will be required to submit a staged grading plan during the construction drawing phase in order to obtain a land disturbance permit. The Steering Committee also recommended increasing land disturbance buffers from 50 feet to 65 feet around the perimeter of the four or more acres to be mass graded. The Steering Committee also discussed clear cutting, the typical precursor of mass grading. It proposed that the UDO be amended to adopt the State definition of forestry, and to require property owners to register a State-approved Forestry Management Plan (“FMP”) with the Planning Department prior to any clear cutting. Further, the Steering Committee recommended that the UDO require a clear cutting permit to clear cut any area that is 12,000 square feet or greater, if there is not a duly approved FMP or site plan for such property. The approval process for a clear cutting permit would follow the procedures for a simplified site plan, which the Planning Department approves administratively. The Steering Committee also recommended that clear cutting without these necessary approvals incur a violation that necessitates revegetation of the clear cut property. Besides increased restrictions on clear cutting, the Steering Committee focused on increased Tree Protection and Preservation requirements. One recommendation that might benefit property owners and developers is to allow tree preservation credits for smaller trees than the UDO currently allows. Two other potentially beneficial recommendations are to allow specific species of smaller, understory trees to count towards tree replacement requirements and to allow greater flexibility in the width and size of tree protection areas. However, the Steering Committee also recommended that the UDO prohibit counting stormwater and utility facilities as tree coverage area where such facilities do not allow trees to grow. In addition, while today the Urban Tier does not require tree coverage in residential developments, the Steering Committee recommended that residential developments in the Urban Tier meet fifty percent of the tree coverage required in the Suburban Tier. Also, the Steering Committee recommended that the definition of specimen trees be expanded from the current version. Presently, the UDO defines a specimen tree in the Suburban Tier as any hardwood tree with a diameter of eighteen inches, and in the Rural Tier, pine trees with a diameter of eighteen inches are considered specimens as well. The Steering Committee recommended that the UDO be amended to define specimen trees as pines over eighteen inches, hardwoods over fifteen inches and North Carolina native hardwoods over ten inches, in both the Rural and Suburban Tiers. The cumulative impact of the Steering Committee’s recommendations for increased buffering and tree preservation reduces the usable acreage in a county where developable land is already a scarce resource, and may make higher density, transit-oriented developments more challenging. Moreover, Durham has a track record of requiring substantial traffic improvements from new development, and it may be difficult to achieve the residential density and non-residential square footage necessary for new development to pay for such traffic improvements and meet these new environmental requirements. Balancing those public goods will provide challenges for all involved in the development process. Winter 2010 6 Triangle Land Use Newsletter These proposed changes to the UDO will be moving forward during the spring and summer of 2010. For persons and companies involved in the development process in Durham, it makes good sense to stay informed about how these proposed regulations move through the legislative process and how these proposals will impact new development. _____________________________________ Court of Appeals Considers NCDOT Authority to Require Off-Site Improvements Mack A. Paul IV and Jason L. Barron In a dispute that could dramatically alter the way that the North Carolina Department of Transportation (“NCDOT”) has done business, the North Carolina Court of Appeals is reviewing a case that challenges the authority of NCDOT to require off-site improvements as part of the driveway permitting process. The case is High Rock Lake Partners, LLC v. North Carolina Department of Transportation, COA 09-95. In the case, which was argued before the court of appeals in the fall of 2009, the plaintiff sought approval from Davidson County for the first phase of a proposed 60-lot single-family residential subdivision. During the County’s subdivision review process, representatives from NCDOT, as well as the North Carolina Railroad (there was an on-grade crossing involved in the case), testified on numerous occasions seeking denial of the subdivision. The stated basis for the request for denial was a perceived conflict between the proposed subdivision and railroad operations. NCDOT took the position that a bridge totaling in excess of $3,000,000 was necessary in order to avoid the perceived conflicts. While the subdivision was pending, the developer sought approval from NCDOT for its driveway permit. The permit application was initially denied by the Division Engineer, but later approved on appeal to the NCDOT Driveway Permit Appeals Committee, subject to a condition requiring the developer to obtain consent from the North Carolina Railroad to widen the on-grade crossing by ten (10) feet. Ultimately, the developer appealed the NCDOT Committee’s determination to superior court, arguing, among other things, that NCDOT lacked the statutory authority to require the widening of the crossing due to the fact that such widening was an offsite improvement. The superior court affirmed and appeal was made to the court of appeals. Relying on the enabling language of N.C. Gen. Stat. Sec. 136-18(29), the developer argued that NCDOT may only regulate the size, location, direction of traffic flow, and the construction of driveway connections. Further, the developer noted the clear intent of the driveway permit statute was to shift the burden of certain off-site improvements or exactions onto developers - including acceleration and deceleration lanes, traffic storage lanes and medians - but only if traffic volume is an average of 4,000 vehicle trips or greater. Because the development in question was going to generate only 32 trips per day for its first phase, the developer argued that the statutes do not give NCDOT the authority to require off-site improvements. In contrast, NCDOT argued that it has the general authority to require the off-site improvements as part of the authority granted to it by N.C. Gen. Stat. Sec. 136-18(5), which permits NCDOT to “make rules, regulations and ordinances for the use of, and police traffic on, the State highways.” A decision from the Court of Appeals is imminent. Assuming the case is not decided on unrelated procedural grounds, it is clear that the authority of NCDOT to require off-site improvements could be dramatically impacted by this decision. K&L Gates continues to closely monitor this case, and will be sure to send out an update once the decision is published. _____________________________________ Raleigh Comprehensive Plan Amendment Process The City of Raleigh Planning Department is now accepting petitions to amend the 2030 Comprehensive Plan and Future Land Use Map. Petitions will be heard twice per year, at the January and July joint public hearings of the City Council and Planning Commission. In order to be heard at the July public hearing, petitions should be submitted to the Planning Department no later than May 1, 2010. Although there is no official deadline, petitions received after the published notice of the Winter 2010 7 Triangle Land Use Newsletter July hearing will be heard at the January 2011 joint public hearing. _____________________________________ Attorneys Join Triangle Land Use, Planning and Zoning Practice Keith Anthony: Keith is an experienced commercial litigator who represents clients in a variety of complex commercial matters, including contract disputes, licensing issues, real estate disputes, business torts, and unfair and deceptive trade practices. In addition to these types of matters, Keith is now regularly representing property owners and developers in land use related disputes. He works out of the firm’s Research Triangle Park office. Keith is a graduate of the University of Virginia and the University of North Carolina School of Law. James Joyce: Jim is the newest associate to join the K&L Gates land use team. Jim’s practice involves land use and zoning, as well as environmental matters. He assists developers, property owners, and businesses with the entitlement process, and related land use litigation and environmental compliance. He is a graduate of the University of North Carolina at Chapel Hill and the University of Virginia School of Law. Jim also holds a Master of Community Planning from the University of Maryland-College Park. Anchorage Austin Beijing Berlin Boston Charlotte Chicago Dallas Dubai Fort Worth Frankfurt Harrisburg Hong Kong London Los Angeles Miami Moscow Newark New York Orange County Palo Alto Paris Pittsburgh Portland Raleigh Research Triangle Park San Diego San Francisco Seattle Shanghai Singapore Spokane/Coeur d’Alene Taipei Tokyo Washington, D.C. K&L Gates includes lawyers practicing out of 35 offices located in North America, Europe, Asia and the Middle East, and represents numerous GLOBAL 500, FORTUNE 100, and FTSE 100 corporations, in addition to growth and middle market companies, entrepreneurs, capital market participants and public sector entities. For more information, visit www.klgates.com. K&L Gates is comprised of multiple affiliated entities: a limited liability partnership with the full name K&L Gates LLP qualified in Delaware and maintaining offices throughout the United States, in Berlin and Frankfurt, Germany, in Beijing (K&L Gates LLP Beijing Representative Office), in Dubai, U.A.E., in Shanghai (K&L Gates LLP Shanghai Representative Office), in Tokyo, and in Singapore; a limited liability partnership (also named K&L Gates LLP) incorporated in England and maintaining offices in London and Paris; a Taiwan general partnership (K&L Gates) maintaining an office in Taipei; a Hong Kong general partnership (K&L Gates, Solicitors) maintaining an office in Hong Kong; and a Delaware limited liability company (K&L Gates Holdings, LLC) maintaining an office in Moscow. K&L Gates maintains appropriate registrations in the jurisdictions in which its offices are located. A list of the partners or members in each entity is available for inspection at any K&L Gates office. This publication is for informational purposes and does not contain or convey legal advice. The information herein should not be used or relied upon in regard to any particular facts or circumstances without first consulting a lawyer. ©2010 K&L Gates LLP. All Rights Reserved. Winter 2010 8