Tag Archives: Damages

Eminent Domain

North Tarrant Express and Eminent Domain

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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 .

Eminent Domain

Can I Get Business Damages for Eminent Domain?

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If you are a Florida business owner being threatened with an eminent domain condemnation, you may be very aware of how critical the risk to your business can be.  For many businesses, your shopfront is your business.  Walk-up traffic, drive-by traffic, association with a community or complementary businesses can all be mainstays of your client base. An eminent domain condemnation of your property threatens all of these. You can probably think of several successful businesses that moved and never survived, even if their new location was supposedly “better.” As all of these things are going through your mind, you may wonder whether the full compensation promised you in the Florida constitution includes these potential losses.

Business Damages not Constitutional

Unfortunately, business damages are not considered part of the constitutionally guaranteed “just” or “full” compensation. Lost profits, lost goodwill, loss of walk-up traffic, and other types of business losses are not considered “property” in the sense that guarantees compensation under the terms of the constitution.  Instead, they are considered intangibles that can sometimes be compensated “by legislative grace.”  In other words, sometimes business damages are granted by specific laws, but they are not generally guaranteed.

Specific Guarantees for Business Damages

In Florida, there is a very specific definition of when a business is eligible for damages.  In order for your business to qualify for business damages, all the following must be true:

The eminent domain condemnation must be a “partial taking,” which takes only part of the property The remainder (not taken part of the property) is also part of the business The property is being taken for a qualifying “right of way” including roads and water-related improvements The portion of the property to be taken damages or destroys a business established in its current location for at least five years The property owner is also the business owner Losing the taken property is the cause of business damageIf all of these are true, then your business may qualify for business damages.  Whether you qualify for business damages will be determined at the eminent domain hearing, but the exact amount of damages will not be determined until a later hearing.

Other Ways to Be Compensated for Business Losses

The above determination for business damages is very strict, and only a small number of businesses affected by eminent domain actually qualify.  However, there are other methods of receiving compensation for damage to your business.  If your business is properly appraised, fair market value will include the likely or potential loss to your business based on losing your current property.  This is done by considering the value of your land at its “highest and best use” and considering the cost of producing a comparable building at a new site.  In addition, an appraiser will factor in the cost of any equipment that must be replaced or moved.

For business owners, it is especially important to ensure you receive every measure of compensation for your business property. To learn more about getting the most for your property, visit the website of the Florida Property Rights Law Firm, P.A.

Disclaimer- Martyn L. Daniel represents both private parties and public agencies and provides these blog entries as a general overview on eminent domain related news.

Appraisers, Attorneys, business relocation, Businesses, Condemnation, Eminent Domain, Property Owners

Eminent Domain and Severance Damages

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Eminent domain is the power of the government to take private property for public use.  The government is obligated to pay the property owner appropriate monetary compensation for their property, in a process called condemnation.  When invoked, eminent domain often takes entire properties, but there are some occasions in which only part of the property is taken (condemned).  For many projects, eminent domain is used only to condemn parts of properties.

Reasons include:

New road construction Road widening Parks Utilities. In this case, the condemning authority must pay not only the value of the part of the property that is taken, but must also pay for the impact on the rest of the property caused by the loss of the portion.  This is known as severance damages.

Effects of Partial Loss on Property Values. There are many ways in which the loss of a portion of property can affect the value of the remaining property.

Some of these losses are:

Loss of frontage road or easement, Nonconformity with zoning ordinances after loss of available parking space, Loss of architectural and natural beauty.  When a road widening or improvement project requires the condemnation of the front of a residential property, there are many ways in which the remaining property may be decreased in value.  Setback from the road (which is likely to be busier following widening) is reduced, which will affect the resale value of the house.  Old-growth trees may have to be removed, along with hedges or fences that blocked the road from the front of the house.

Likewise, the value of a business may also suffer from a partial taking.  It may lose parking spaces, aesthetic arbors, benches, outside dining areas, even part of the building as a result of the partial taking.  All of these may impact the viability of a business, and should be included as part of severance damages.

Partial Loss and Possible Non-Viability –  If the property is not considered viable for its current use following the condemnation, then a cure must be part of the eminent domain settlement.  Examples of non-viable properties are businesses with too few parking spaces, or structures where part of the building must be torn down as part of the condemnation.  In these cases, the condemning authority and the property owner can both present cures to make the property viable again after the condemnation, such as rebuilding or modifying a house, rearranging parking spaces, creating a patio area on top of a restaurant to compensate for one lost out front, etc.

In some cases, once the partial taking is affected, the remaining property may violate zoning ordinances.  For example, a house may no longer have a legal setback from the widened road.  This will depreciate the remaining property further, increasing compensation, and in some cases it may mean that the condemning authority must compensate the property owner for the full property.  In other cases, the zoning authority may grant a variance for that property which may restore some of the value.