Tag Archives: cost-to-cure

How Eminent Domain Appraisers Can Benefit from “Cost-to-Cure” Services

How Eminent Domain Appraisers Can Benefit from “Cost-to-Cure” ServicesWhen it comes time to defend your appraisal, are you sure that it will stand up to opposing council? Whether it’s your appraisal or your opinion on the replacement costs for buildings and other improvements for cost-to-cure designs and cost estimates, the opposing council will be ready to poke holes in your case.

As an appraiser, sometimes you are working on an eminent domain case where part of a parcel of property is condemned and the use of the remaining property is impacted. In such cases, a consultant can support your work with customized, reasonably calculated cost-to-cure estimates and designs that follow agency guidelines and eminent domain law.

When the new right-of-way severs a structure or improvements, the consultant will develop a design for removing the portions of the improvements affected by the right-of-way, while renovating the remaining portions to cure the damages caused by the property taking.

An experienced cost-to-cure consultant can assist appraisers and other interested parties by enhancing their appraisals for complex structures, improvements, and cost-to-cure values. The cost-to-cure consultant with the added benefit of relocation expertise on eminent domain projects can help in a number of ways by providing a single source and point of contact with expert knowledge in eminent domain issues including cost-to-cure, replacement costs, separation of relocation costs from cost-to-cure and replacement costs, preliminary design, and commercial construction.

Cost-to-Cure Services are Time and Cost Effective

Benefits of Cost-to-Cure estimates and designs for appraisers include:

  • Quick understanding of the assignment and project issues.
  • Efficient turn around of costs and reports.
  • The ability to speak on most of the issues with knowledge of when to hand additional detailed explanations to other experts.
  • Knowledgeable identification of additional experts that may be necessary for the project.
  • Coordination of those experts for the project for their scope of work and reports.
  • Distinguishing between cost-to-cure issues and relocation issues saves time and offers a comprehensive package to the client that includes cost-to-cure needs and relocation needs.
  • Perform analysis of plans and costs developed by the opposing side to determine their effectiveness and reasonableness.

I support appraisers in Eminent Domain cases with timely and affordable cost reports and designs that are, typically, self-supporting.

If challenged, I stand ready to further support and clarify the cost reports in mediation, deposition, or even trial when necessary.  My status as a recognized specialist in this niche comes from an extensive history of creative solutions, credibility and clarity. The documents that I prepare for appraisers are based on defensible fact and stated in detailed but understandable language and also include design drawings that are approachable for the layman.

When you have a difficult or questionable Eminent Domain matter to appraise, please feel free to give me for a free telephone consultation.  I look forward to hearing from you.

North Tarrant Express and Eminent Domain

TxDOT’s filing of eminent domain on the North Tarrant Express may be the positive aspect this project needs for right of way acquisition. 

Eminent domain provides a set of rules that the property owners, tenants, and the public agency (TxDOT) have to follow. These rules make the acquisition process smoother and often more fair for the property owner and tenants.

Eminent domain regulations spell-out how fair market value is determined for the properties and what relocation benefits are available to the tenants.

Even with regulations in place, there can still be significant differences in the interpretation of these rules. Typically, these obstacles involve the disparity in property values and relocation costs.  However, eminent domain regulations are in place to help all parties involved to reach bilateral goals resulting in a quicker and fairer outcome.

Martyn Daniel has helped hundreds of businesses successfully relocate; often to more prosperous locations.  Martyn offers one-on-one consulting services, group workshops and online seminars for clients who need the relevant facts to make an educated decision. 

To schedule a free 15-minute no obligation call with Martyn, please click here for an appointment https://my.timedriver.com/F8VSS .

I-15 Core Project – Eminent Domain and Business Relocations

Business Relocation

The I-15 Core expansion adds several new lanes and revised intersections spanning 24 miles starting in the town of Lehi and heading south passing through American Fork, Pleasant Grove, Orem, Provo, Springville, and Spanish Fork.

For the size of this project, there are relatively few businesses having to relocate.  What I see is a good effort by the design team to utilize the existing right of way, already owned by the Utah Department of Transportation (UDOT), avoiding significant impacts to businesses and property owners.

There are a large number of partial, or strip takings, which minimizes the typical impact on businesses on a project of this size.  Strip takings may create some severance damages resulting in UDOT making cost-to-cure payments to solve problems and make a property functional after the new right of way severs the properties.  This will likely create some business relocations, which sometimes show up when the impact to the property is understood by the property owner or the business tenant.

 Although minimal, there are some full acquisitions of commercial properties were UDOT is using eminent domain to force the sale of the property.  This has triggered business relocations with the use of UDOT’s Acquisition and Relocation Guidelines.

 UDOT’s guidelines closely follow the Federal Highway Administration’s (FHWA) Acquisition and Relocation Guidelines. However, UDOT has enhanced the federal guidelines by increasing payments in two areas, the in-lieu payment category, and the reestablishment category.  

 The in-lieu payment, which is a one-time payment to businesses based on their average annual income, was increased from the FHWA limit of $20,000 to a maximum payment of $75,000. The in-lieu payment requires the business to wave all of their rights to other relocation benefits, which can be a significant sacrifice for a business even at the increased level. 

 The increased reestablishment category, which FHWA limits at $10,000, UDOT increased to $50,000.  The reestablishment category covers a certain number of business cost reimbursements that are in addition to the moving, reinstallation, and other costs related to the business relocation.