1 Welcome to the International Right of Way Association’s Course 700 Introduction to Property Management 700.PPT.R

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 policies and procedures Establish monitoring schedules

4 Objectives (2) At the conclusion of the course, you will be able to… Identify and evaluate risks, hazards and liabilities Develop a property management and disposal plan Profitably dispose of property or property rights

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

6 Housekeeping

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

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

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

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

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

12 Terms (3) Fee simple is 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 easement is 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 way is the right of a person or entity to use the land of another in a particular line. A permit, usually issued by government entities, grants permission to occupy within the right of 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 in the highest value.

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

17 Impacts Regulatory Locational Environmental

18 Team

19 Terms (8) A property inventory is 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 policy is a statement of the intention to reach a specific (property management) goal. Procedures are the operational steps to make the policy a realty. Task assignments clarify 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 sustainable value for our customers, employees, communities and investors through the production, delivery and sale of energy and energy services.” Sask Water : “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 One Introduce Day Two

32 Terms (10) Risk management is the control of loss, which threatens the organization and its holdings. Hazard protection is the control or elimination of sources of danger or chance events. Liability reduction is 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 …pay $50,000 a year... …more than $900,000 a year in estimated operating expenses... …now empty $53.1 million station...

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) Abandonment is intentionally and permanently relinquishing the property. Mere non-use is not abandonment. Vacation is a governmental process whereby the government gives up its dedicated public rights.

41 Terms (12) Secondary use is organization property that the organization allows others to use. Joint use is 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 maintain a property inventory Develop simplified management policies and procedures Establish monitoring schedules

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

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

47 Thank you!