Tag Archives: Eminent Domain Condemnation

Appraisers, Attorneys, Businesses, Contact Martyn, Eminent Domain, relocation

Would You Choose Lump Sum or Actual Cost Relocation Reimbursement?

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Under Relocation Guidelines featured on my site by state, business owners who must relocate due to eminent domain can choose to receive benefits from the government agency one of two ways.

1) Lump Sum Payment – up to $40,000 based on income

2) Actual Cost Relocation – based on actual eligible costs, some of which are capped.

Lump Sum Payment

Business owners can receive a lump sum or a fixed payment of up to $40,000 and call it a day.  The business owner will move themselves and no other claims can be submitted to the agency for reimbursement.

So if it costs the business owner $300,000 to relocate machinery, office equipment, parts, furniture for example, along with setting up of computers, telephones, heating and air conditioning, the business owner will pay-out-of-pocket for anything over and above the $40,000 amount.

In this example this amount would be $260,000.

In a cash-strapped economy, any out-of-pocket expenses could make or break a business.

Actual Cost Relocation

The following expenses can be reimbursed to the business owner based on the individual and actual costs of the move.

Moving (no maximum amount with one exception):

1. Transportation of Personal Property

2. Packing, crating, unpacking, uncrating of Personal Property

3. Disconnecting, dismantling, removing, reassembling, and reinstalling equipment, machinery, and other personal property

4. Storage of personal property up to 12 months

5. Insurance for the replacement value of personal property during the move and necessary storage

6. Any license, permit, or certification required at the replacement site, which the business had at the displacement location

7. Replacement value of property lost, stolen, or damaged during the move

8. Professional services for planning, moving, and reinstalling the personal property

9. Re-lettering signs and replacing printed materials made obsolete by the move

  • Stationery
  • Notification of the move

10. Actual direct loss of tangible personal property

11. Reasonable cost incurred trying to sell and item that is not to be relocated

12. Purchase of substitute personal property.

13. Searching for a replacement location (Maximum $2,500)

14. Costs to secure professional move bids

15. Low Value/High Bulk

16. Disposal of personal property and hazardous materials

If a business owner does not opt for the lump sum payment and chooses to be reimbursed via actual costs, there are a few expenses which are capped. My next blog will explain and list these items.

If your company has to move due to eminent domain, which option would you choose? Contact Martyn Daniel, Eminent Domain and Business Relocation Consultant to help you answer that question.

 

Businesses, Eminent Domain

City Prepares to Seize Willet’s Point Properties – Following URA Guidelines?

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Willet's Point RedevelopmentA February 11th, 2011 article in The Epoch Times entitled, City Prepares to Seize Willet’s Point Properties,  reported on 9 Queens, NY business owners who gathered at a press conference expressing concern that their properties would be taken by the City to make way for the Willet’s Point Redevelopment Project.

“The eminent domain law gives the city the power to force owners into selling private land to the city for public use. Property owners will not be left completely in the lurch, however, as they will be compensated with a fair market value determined by a judge. The EDC has also provided career training and relocation to some owners who have willingly sold their properties.

The crux of the matter remains whether the redevelopment of Willets Point is in the interest of the public, as mandated by the eminent domain law.

The city plans to replace the mishmash of auto recycling and repair shops with housing developments, retailspace, a hotel, and parkland.”

I find it very interesting that relocation benefits are only being offered to the cooperative property owners.  Most public projects using eminent domain will offer relocation benefits by following the Federal Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (URA).

The URA provides relocation benefits and guidelines to all eligible property owners and tenants within the public project’s area and makes no distinction between those that are cooperative and non-cooperative.  Those guidelines, in part, spell out how both sides will address relocation costs and the rights and responsibilities of each side.

Businesses can successfully relocate and have actually improved their businesses when relocating under these guidelines.  Without them, a business is left with incurring significant relocation costs which they often cannot afford.  Many would say this is an unfair burden to put onto a business owner while the general public is benefiting from their losses.  That’s why these URA guidelines where developed in 1970.

Having helped several hundred businesses relocate from projects using eminent domain, my experience has revealed that the public agencies that follow the URA have had better success with clearing their needed right of way in a timely and equitable fashion for all.

It would be interesting to see if the Economic Development Corp. would find more cooperation and improved success for their project if they adopted these relocation guidelines.

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

Eminent Domain Condemnation

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What Property and Business Owners Need to Know About Eminent Domain or Condemnation

Property Owners:

When a public agency is taking your property for a new right-of-way or other public use, with the use of Eminent Domain or Condemnation, you have the right to receive the fair market value for your property.

Eminent domain is the law that gives the public agency the right to take your property for public use.

Condemnation is the action taken by the public agency to force you to sell your property by taking you to court where issues such as property value will be determined.

A real property appraiser will evaluate the fair market value.  The government agency condemning your property will hire an appraiser to help them determine the fair market value, which will be the basis of their offer to purchase your property. 

The property owner can also hire their own appraiser to do the same.

Any differences (which are common) between the two appraisers’ evaluations of fair market value can be negotiated between the two parties, mediated, or taken to court.

Business Owners:

Business owners located on property being taken by use of Eminent Domain, have the right to relocation benefits, if the condemning public agency is using federal funds in the project, or they have elected to pay relocation benefits.

Usually relocation benefits follow the relocation guidelines of the Federal Highway Administration (FHWA), Federal Transit Authority (FTA) or the Federal Aviation Administration (FAA).  The relocation guidelines are very similar among the three federal agencies. 

Often, your state or local public agency has adopted one of the Federal Agency guidelines to use on their projects.

The public agency will provide a relocation agent to work with you on determining your eligible relocation benefits.

As part of your relocation benefits, you have the right to hire a professional to help you plan your relocation.

Martyn Daniel has helped hundreds of businesses successfully relocate while following eminent domain relocation guidelines, with the use of his consulting services, coaching services, and group workshops, to provide each business with the knowledge to make educated decisions.

About Martyn, Businesses, Eminent Domain, Property Owners

Eminent Domain, Condemnation, Relocation, and Compensation Workshop

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Property and  Business Owners Learn About Eminent Domain

Businesses and property owners in Battle Ground, Washington facing eminent domain, condemnation, and relocation caused by a highway widening, are getting help by attending an Eminent Domain Workshop.

 Whether a business is relocating, or a property owner or business is reconfiguring their existing location, the best practices for getting compensation for their costs from the government agency are similar.  To cover both subjects, this workshop has been designed as follows:

 The goals of the workshop are to:

  1. Help participants prepare a plan that is best for them using the knowledge of what compensation, or benefits are, and are not, available to them from the public agency
  2. Improve what items and amounts will be paid to them from the public agency
  3. Minimize business downtime
  4. Minimize their time spent on the eminent domain process

 The  agenda for this three-hour workshop follows:

  • How to plan based on knowledge of which costs are eligible and ineligible for payment from the public agency
  • Learn the importance of staying within the eminent domain guidelines
  • How to avoid the pitfalls of common mistakes made in eminent domain
  • How to plan, prepare, and submit costs to improve the approval and compensation of costs from the public agency
  • How to plan to minimize downtime, and be paid, by the public agency for the extra costs related to minimizing downtime
  • Learn what to do, and not do yourself. When, where, and who to seek for assistance, and who will the public agency pay for assisting you
  • Questions and answers on your situation

 

Purpose of Workshop

The purpose of this workshop is to give these businesses and property owners a condensed education about the eminent domain process, more than would be received from other sources, so participants can make informed decisions.  The workshop will not cover all of the details and decisions that will face each individual, however, participants will receive valuable, relevant, and usable information that will improve their outcome with the eminent domain process well beyond the value of their time and cost of the workshop.

 An additional and important advantage for the workshop participants is they will begin networking together, which will help them compare notes during the eminent domain process, to help maintain consistent treatment.  This is helpful because, as much as they try, the public agency does not always treat everyone the same.  This particularly happens when the agency has several agents working on the project, agents are reassigned to other projects, or because the agents do not fully understand your needs or situation.

 Martyn guarantees each participant’s satisfaction of attending the workshop with a full refund at the end of the workshop to anyone not satisfied.

Are you and your neighbors facing eminent domain?

Improved Eminent domain success can be achieved by attending a workshop.   You can also participate in the design of a workshop for your group’s specific needs, location, and situation.  Businesses and property owners will be more successful with eminent domain when they begin planning early, before they loose their options and benefits while waiting.