700-PT – Revision 1 – 04.04.067.INT

1. Welcome to theInternational Right of Way Association’sCourse 700Introduction to Property Management 700-PT – Revision 1 – 04.04.067.INT

2. Introductions Who we are… What we do… Where we do it… How long we’ve been doing it… Our goals for the course...

3. Objectives (1)At the conclusion of the course,you will be able to… • Establish, classify and maintain a property inventory • Develop simplified management policiesand procedures • Establish monitoring schedules

4. Objectives (2)At the conclusion of the course,you will be able to… • Identify and evaluate risks, hazardsand liabilities • Develop a property managementand disposal plan • Profitably dispose of propertyor property rights

5. Objectives (3)At the conclusion of the course,you will be able to… • Recognize the advantages and disadvantagesof secondary and joint use agreements • Effectively manage a maintenance and repair program

6. Housekeeping

7. Schedule (1) 8:00 - 8:30Introductions, Etc. 8:30 - 9:30 General Real Estate Concepts 9:30 - 11:30 Property Inventory 11:30 - 12:00 Inventory Classifications 1:00 - 2:45 Policies and Procedures Development 3:00 - 4:45 Inspections and Encroachment Monitoring

8. Schedule (2) 4:45 - 5:00Recap Day One 8:00 - 8:15 Recap Day One/Introduce Day Two 8:15 - 9:15 Risks, Hazards and Liabilities 9:15 - 10:45 Lease, Sell or Hold Decisions 10:45 - 12:00 Sale or Lease of Surplus Property or Property Rights 1:00 - 2:00 Secondary and Joint Uses

9. Schedule (3) 2:15 - 3:15Improvement Maintenance and Repair 3:15 - 3:45 Summary and Review 3:45 - 5:00 Exam

10. Terms (1) Property Managementis a process of maintaining and creating value in real property, which is consistent with the owner’s objectives. Asset Managementis the comprehensive integrated management plan for all real estate assets.

11. Terms (2) Real estateis the land and appurtenances to the land. Real propertyis all the rights, interests and benefits inherent in the ownership of the real estate. It is the bundle of rights.

12. Terms (3) Fee simpleis an estate without limitations with the exception of government powers. The government powers are eminent domain, taxation, police power and escheat. A lease is a contract that transfers the owner’s right of possession and use of the real estate to another for a specified time period and on the payment of a consideration, usually rent.

13. Terms (4) An easementis a non-possessory interest one has in the property of another for a specific purpose. A life estate tenant is entitled to certain real estate uses and enjoyments for life. At death, all right, title and interest in the property pass to the remainder interest.

14. Terms (5) Generally, a right of wayis the right of aperson or entity to use the land of anotherin a particular line. A permit, usually issued by government entities, grants permission to occupy within the rightof way. A permit is a form of license. A license is a personal privilege to do some act on the property of another. A license is not transferable.

15. Terms (6) • Highest and best use is the reasonably probable and legal use that is physically possible, appropriately supported and financially feasible, and that results inthe highest value.

16. Terms (7) Market value is the type of value mostoften sought in real estate valuation. Value in useis a value of a specific property to a specific person or entity.

17. Impacts •Regulatory •Locational •Environmental

18. Team

19. Terms (8) A property inventoryis a database of the organization’s properties with specific information on each parcel.

20. Property Inventory • Acquisition information • Property characteristics • Maps, photographs, videos • Agency uses • Secondary and joint uses • Exclusive use by others • Inspection schedules and records • Other

21. Internal Reports • Planning • Design • Real Estate • Construction • Maintenance • Management • Other

22. External Reports • Other agencies • Public • Press • Permittees/Lessees/ Purchasers • Other

23. Criteria (1) Must … • be user friendly and simple • be compatible • contain cross-references • be searchable • increase staff efficiency • reduce response time

24. Criteria (2) Must … • produce “hard” copies • protect original documents • provide for “off-site” storage • allow for growth • be cost effective

25. Inventory Classifications • Operating property • Property for future use • Property surplus • Other classifications

26. Terms (9) A policyis a statement of the intention to reach a specific (property management) goal. Proceduresare the operational stepsto make the policy a realty. Task assignmentsclarify who will complete each procedure.

27. Mission Statements Connecticut Department of Transportation: “… to provide a safe, efficient, and cost-effective transportation system that meets the mobility needs of its users.” Duke Energy: “… to create superior and sustainablevalue for our customers, employees, communities andinvestors through the production, delivery and sale of energy and energy services.” SaskWater: “To provide competitively-priced, customer-focused, quality water and wastewater services.”

28. Goal Statement To manage and dispose of property on terms beneficial to the organization.

29. Encroachment Correction • Removal • Legalization

30. Recap Day One

31. Recap Day OneIntroduce Day Two

32. Terms (10) Risk managementis the control of loss, which threatens the organization and its holdings. Hazard protectionis the control or eliminationof sources of danger or chance events. Liability reductionis the limitation of a legal or equity obligation.

33. Decision Considerations • Organization’s mission • Purpose of the acquisition • Current property use • Probable future use • Costs

34. …now empty $53.1 million station... …more than $900,000 a year in estimated operating expenses... …pay $50,000a year...

35. Lease or Sell or Hold? • Highest and best use • Operational needs • Safety concerns • Public interests

36. Procedures for Sale (1) • Step No. 1: Package • Step No. 2: Notify and Approval (internal) • Step No. 3: Notify and Approval (external) • Step No. 4: To whom? • Step No. 5: Appraisal report • Step No. 6: Sale method

37. Iowa DOT’s Property Management web page.

38. Procedures for Sale (2) • Step No. 7: Evaluate offers • Step No. 8: Final disposal package • Step No. 9: Transfer • Step No. 10: Update inventory

39. Leasing Program

40. Terms (11) Abandonmentis intentionally and permanently relinquishing the property. Mere non-use is not abandonment. Vacationis a governmental process whereby the government gives up its dedicated public rights.

41. Terms (12) Secondary useis organization property that the organization allows others to use. Joint useis two or more organizations jointly using their commonly owned property.

42. Terms (13) Airspace is the space located above and/or below a transportation facility's horizontal limits of the approved right of way or project boundaries. Air rights are the real property interests defined by agreement and conveyed by permit, lease or deed for the use of airspace.

43. Maintenance and Repair • Minor Maintenance and Repair • Major Maintenance and Repair

44. Objectives(1)Now, you are able to… • Establish, classify and maintaina property inventory • Develop simplified managementpolicies and procedures • Establish monitoring schedules

45. Objectives(2)Now, you are able to… • Identify and evaluate risks, hazards and liabilities • Develop a property managementand disposal plan • Profitably dispose of property orproperty rights

46. Objectives(3)Now, you are able to… • Recognize the advantages and disadvantages of secondary andjoint use agreements • Effectively manage a maintenanceand repair program

47. Thank you! 700-PT – Revision 1 – 04.04.067.INT