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Welcome to the International Right of Way Association’s Course 502 Business Relocation

Welcome to the International Right of Way Association’s Course 502 Business Relocation. 502-PT – Revision 3 – 11.30.06.USA. Introductions Who we are… What we do… Where we do it… How long we’ve been doing it… Our goals for the course.

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Welcome to the International Right of Way Association’s Course 502 Business Relocation

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  1. Welcome to theInternational Right of Way Association’sCourse 502Business Relocation 502-PT – Revision 3 – 11.30.06.USA

  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. ObjectivesAt the conclusion of the course, you will be able to... •Discuss the concepts and terminology associated with business displacements • Apply the Uniform Act regulations to business displacement examples • Recognize the limitations and flexibility of federal regulations

  4. Housekeeping

  5. Schedule (1) 8:00 - 8:30 Introductions, Etc. 8:30 - 9:15 Relocation Eligibility 9:15 - 10:00 Relocation Planning 10:15 - 10:45 Personal Property Identification 10:45 - 11:45 Case Study No. 1 12:45 - 1:50 Case Study No. 1 (continued) 2:05 - 3:05 Advisory Assistance 3:05 - 3:35 Inventories and Moving Specifications 3:35 - 4:05 Moving Options 4:05 - 4:20 Recap Day One

  6. Schedule (2) 8:00 - 8:15 Recap Day One/Introduce Day Two 8:15 - 9:15 Payments Related to Personal Property Not Moved 9:15 - 10:00 Other Moving and Related Expenses 10:15 - 11:00 Reestablishment Payment Eligibility 11:00 - 11:45 Fixed Moving Expenses 12:45 - 1:15 Non Profit Organizations 1:15 - 1:45 Farm Operations 2:00 - 3:15 Case Study No. 2 3:15 - 3:30 Claim Documentation

  7. Schedule (3) 3:30 - 3:45 Appeal Process 3:45 - 4:00 Summary and Review 4:00 - 5:00 Exam

  8. Constitution Statutes United States Code Regulations

  9. Objectives • Fair, equitable and consistent treatment • Will not suffer disproportionate injuries or hardships • Efficient and cost effective implementation

  10. Who is a displaced person? Any person who moves from real property or moves personal property from real propertyas a result of… • written notice of acquisition • rehabilitation or demolition • written notice of acquisition, rehabilitation or demolition of other real property

  11. Who is not a displaced person? (1) A person who… moves before the initiation of negotiations occupies after the acquisition occupies solely to obtain assistance is not required to move permanently is not displaced as a result of a partial acquisition

  12. Who is not a displaced person? (2) A person who… receives notice that he/she will not be displaced voluntarily conveys (no eminent domain action) is in unlawful occupancy is unlawfully in the United States

  13. Entitlements

  14. Relocation Study A relocation studyrecognizes the problems associated with the displacement of individuals, families, businesses, farms and nonprofit organizations and develops solutions to minimize the adverse impacts of the displacements.

  15. Relocation Interviews • Get information about the business • Identify potential problems early • Eliminate agency misconceptions about the business • Determine the needs of the business • Provide current project information • Establish rapport • Identify and resolve personal property issues

  16. Ascertaining Needs • Build rapport • Written format • Walk the property • Funnel technique

  17. Real estate is the physical 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. Definitions (1)

  18. Definitions (2) Personal property are items that are not affixed to the real estate. Fixtures are items that were once personal property but have since been permanently attached to the real estate.

  19. Definitions (3) Fixture Tests: Manner affixed Adaptation Intent Trade fixtures are not part of the real estate.

  20. Advisory Assistance (1) •It’s the law • Might prevent lawsuits • Prevent loss of goodwill • Establish confidence •Avoid “bad press” •Keep the business in business •Everyone gains •Cost effective

  21. Advisory Assistance (2) • Interview • Determine relocation needs • Explain program, benefits, options • Information on replacement availability • Information on other programs • Offer transportation • Help at new location • Written information

  22. Relocation Notices • General information notice • Notice of relocation eligibility • Ninety-day notice • Notice of intent to acquire • Notice of move • Notice of denial of claim

  23. Specifications • General specifications • Other provisions • Special needs

  24. Obtaining Bids • Walk through • Get cost estimates/bids • Select the bidders • Review the estimates/bids • Approve the successful bidder

  25. Moving Options Either or a combination of… •commercial move • self move • documented • actual cost

  26. Eligible Expenses (1) • Transportation • Packing, crating, unpacking, uncrating • Disconnecting, dismantling, removing... • Modifications • Insurance

  27. Eligible Expenses (2) • Replacement... • Other moving related expenses • Utility connection • Professional services • Impact fees

  28. Ineligible Expenses (1) • Cost to move real property • Loan interest... • Loss of goodwill • Loss of profits • Loss of trained employees • Additional operating expenses

  29. Ineligible Expenses (2) • Personal injury • Legal fees... • Physical changes... • Storage costs... • Refundable security and utility deposits

  30. Day One Recap Specifically, we started to... • discuss the concepts and terminology associated with business displacements • apply the Uniform Act regulations to business displacement examples • recognize the limitations and flexibility of federal regulations.

  31. Day Two Specifically, we will continue to... • discuss the concepts and terminology associated with business displacements • apply the Uniform Act regulations to business displacement examples • recognize the limitations and flexibility of federal regulations.

  32. Tangible Personal Property Loss The payment is the lesser of the: • fair market value in place of the item,as is, less the proceeds from its sale or • estimated cost of moving the item

  33. Calculation 1. Move estimate: $10,000 2. Value for continued use, in place: $30,000 3. Sales proceeds: $ 6,000 4. Value not recovered from the sale: $24,000 *plus the cost to conduct the sale

  34. Substitute Personal Property Typically applied to personal property that is outdated but can be replaced.

  35. Calculation 1. Move estimate: $25,000 2. Cost of substitute item (including installation): $50,000 3. Trade in or sale proceeds: $10,000 4. Net cost of substitution: $40,000 *plus the cost to conduct the sale

  36. Low Value/High Bulk Applies when, in the agency’s judgment, the cost to move the personalproperty is disproportionate to its value.

  37. Calculation 1. Move estimate: $1,500 2. Amount it would sell for at the site: $ 300 3. Comparable amount delivered to replacement site: $ 200

  38. Exercise No. 4 (1) 1. Move estimate: $25,000 2. Value for continued use in place: $52,000 3. Sales proceeds: $ 0 4. Value not recovered from the sale: $52,000 5. Payment is lesser of 1. or 4.: $25,000 6. Cost to conduct sale: $ 1,500

  39. Exercise No. 4 (2) 1. Move estimate: $75,000 2. Cost of substitute item (including installation): $65,000 3. Proceeds from trade in or sale: $ 5,000 4. Net cost of substitution item: $60,000 5. Payment is lesser of 1. or 4.: $60,000 6. Cost to conduct sale: $ 1,500

  40. Other Moving andRelated Expenses (1) • Licenses, Permits, Fees and Certifications • Professional services • Personal property that becomes obsolete • Other reasonable and necessary expenses • Search expenses • Personal property only

  41. Pop Quiz No. 1 (1) 1. Does the business have to replace the old stationery to receive compensation? 2. May the business retain old stationery or other items being replaced? 3. Can the agency be creative in the replacement of old items?

  42. Pop Quiz No. 1 (2) 4. Can the agency replace items that are not at the project location? 5. Other comments?

  43. Other Moving andRelated Expenses (2) • Licenses, Permits, Fees and Certifications • Professional services • Personal property that becomes obsolete • Other reasonable and necessary expenses • Search expenses • Personal property only

  44. Criteria • Small business (not more than 500 people) • Up to $10,000 • In addition to actual moving cost

  45. Pop Quiz No. 2 1. Is a business operation that consists of leasing real estate to others at the displacement site eligible for the reestablishment payment? 2. Is a sandwich lease situation eligible for the reestablishment payment?

  46. Eligible Expenses • Repairs or improvements required by... • Modifications to replacement to accommodate... • Exterior signage • Redecoration or replacement... • Advertisement • Increased operation costs during first 2 years… • Other

  47. Ineligible Expenses • Purchase of capital assets • Purchase of materials, supplies, inventory • Interest on borrowed money... • Payment to in home business that does not...

  48. Pop Quiz No. 3 1. The displaced business is a tire shop that also performs all types of automotive repair work. The business owner owns six other shops under the same name that only sell and install tires. Would the business be eligible for a fixed payment?

  49. Fixed Payment “in lieu of” •Minimum: $1,000 •Maximum: $20,000 •Based on the last two years taxable income • In lieu of payment means in lieu of ALLother payments

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