Tag Archives: relocation process

Land Use Attorneys Should Work With Eminent Domain Consultants

As reported on the land attorney blog of Waldo and Lyle, PC law http://www.emdomain.com/index.html , “Small Business Owner Stands Up to Condemning Authority . . . and Wins”, Charles Andrews of Virginia, owner of Downtown Used Auto Parts received good news in 2006 that the Supreme Court denied Virginia’s Norfolk Redevelopment and Housing Authority (NRHA) the right to condemn his property for use as a parking lot for employees of an adjacent Coca-Cola plant.  http://www.emdomain.com/Editorials/small/small.html
Andrews’ did not accept the land valuation offer in his eminent domain case. “One of the reasons Andrews rejected NRHA’s offer was NRHA’s refusal to compensate Andrews for the going business, despite the fact that it could not be relocated.”

A common misconception of eminent domain is that businesses must take the offer the government makes for property or else the business owner will not receive anything at all.

Although NRHA had offered to purchase the property, Andrews refused to sell.

In December of 1999, NRHA sent C & C Real Estate (Andrew’s company) a letter stating NRHA’s intent to acquire the property. Andrews was dismayed. “If you look at that letter you get, the way they write it sounds like you don’t have any options. Your option is nothing! They tell you what they’re gonna do. They tell you they’re going to take your property and they’re going to relocate you. They don’t want to do that. They didn’t even want us in the city,” he said.

Andrews was fortunate. After one and a half years of legal proceedings the Judge ruled that the NHRA was not authorized to condemn.

And although his salvage business could not be relocated, in cases where a business can be relocated, there are only two choices; a standard relocation option or a planned option.

Andrews’ attorneys might have advised him to accept either the standard government relocation or an amount based on income no greater than $20,000. Or Andrews might have worked with an eminent domain consultant to review specific relocation line items. The latter would allow for relocation costs to be reimbursed at a much higher rate.

Anytime a property can be relocated, land attorneys should consider working closely with an eminent domain relocation specialist for a planned relocation. While the attorney is handling the legal aspects of the case, the consultant can respond to the submission of relocation claims, many of which are not capped; the exception being the search for a relocation site at reimbursed at $2,500 and reestablishment costs which vary by state from a maximum of $10,000 to unlimited. All other planned relocation line items must be reasonable in cost and have supported information to be approved by the relocation agency.

The Waldo and Lyle Law firm states, “We work with experienced eminent domain appraisers, real estate professionals, engineers, traffic consultants, economists, soil experts, environmental scientists, land planners and other experts to develop and prove our client’s case. Whether we are helping a property owner protect her home, a church protect its property, or a commercial or industrial owner protect its business assets, we have the experience to represent successfully the property owner.”

Martyn L. Daniel, Eminent Domain and Business Relocation Consultant

 

Eminent Domain Step-by-Step Process

Eminent Domain

The Step-by-Step Process

This is a brief and typical step-by-step eminent domain process for a commercial property with business tenants:

Acquisition

  1. The public agency determines the properties they need for their project.  This may be the entire property, known as a full take or they may need only a portion of the property, known as a partial take.
  2. The property owner is contacted by the agency to let them know of the agency’s intent to purchase the property.
  3. The agency contacts the property owner to schedule a time for a walk-through of the property with the agency’s appraiser.
  4. The agency relocation agent contacts the tenants that occupy the property to gather business information and describe the relocation benefits.
  5. The agency appraiser and relocation agent walk the property to gather information to formulate the value and to differentiate between real property and personal property.
  6. The agency makes an offer to the property owner based on their appraisal and the agency’s determination of the property’s fair market value.
  7. The property owner either accepts the agency’s offer or begins negotiations by providing a counteroffer with their reasoning for a different value.
  8. The agency reviews property owner’s counteroffer.
  9. If a settlement on the property is not reached, mediation is scheduled and the agency files condemnation.
  10. Early possession and use of the property is requested by the agency.
  11. When possession and use is granted, the agency releases funds to the property owner based on the agency’s original offer.
  12. A court date is set to hear the condemnation case.
  13. If mediation does not settle the case, the agency makes a final offer 30 days before trial.  Legal fees are awarded to the property owner if the court settlement is 10% over the agency’s final 30 day offer.
  14. The court determines the fair market value of the property.
  15. The agency submits any increased amounts to the court for the property owner.
  16. The property title is transferred from the property owner to the public agency.

 

Relocation

  1. Relocation eligibility begins at the time of the offer to the property owner.  Shortly after the offer is made to the property owner, the tenants are notified of their relocation eligibility and given a date when they must vacate.
  2. The agency’s relocation agent acquires moving bids for each tenant.
  3. Each tenant finds their new location.
  4. The tenants relocate to their new location.
  5. The agency pays costs they determine are eligible to the business.

 These are the main steps of the eminent domain process.  Each of them can have many important parts to them that will have an influence on the success of your property sale or business relocation.

 Martyn would be happy to answers your questions with a one-on-one conversation, email, or with one of his Eminent Domain Workshops.