1. 1 Welcome to the International Right of Way Association’s Course 502 Non-Residential Relocation Assistance 502.PPT.R4.2014.09.02.0.0

2. 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. 3 Objectives At the conclusion of the course, you will be able to... Discuss the concepts and terminology associated with nonresidential displacements Apply the Uniform Act regulations to nonresidential displacement examples Recognize the limitations and flexibility of federal regulations

4. 4 Housekeeping

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

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

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

8. 8 Constitution Statutes United States Code Regulations

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

10. 10 Who is a displaced person? Any person who moves from real property or moves personal property from real property as a result of… Written notice of acquisition Rehabilitation or demolition Written notice of acquisition, rehabilitation ordemolition of other real property

11. 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. 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. 13 Benefits Fixed Payment for nonresidential moves

14. 14 Relocation Study A relocation study recognizes 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. 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. 16 Ascertaining Needs Build rapport Written format Walk the property Funnel technique

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

18. 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. 19 Definitions (3) Fixture Tests: Manner affixed Intent Adaptation Trade fixtures are not part of the real estate.

20. 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. 21 Advisory Assistance (2) Explain program, benefits, options Personal Interview Determine relocation needs –Need for outside specialists –Need for advanced payments –Time needed Referrals to suitable replacement sites Information on other programs Written information

22. 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. 23

24. 24 Moving Options Either or a combination of… Commercial move Self-move –Based on lower of 2 bids (undocumented) –Actual cost (documented)

25. 25 Eligible Expenses (1) Transportation Packing, crating, unpacking, uncrating Disconnecting, dismantling, removing... Modifications Storage not to exceed 12 months Insurance

26. 26 Eligible Expenses (2) Replacement... Licenses, permits, fees Professional services Relettering and replacing Site Searching up to $2,500 Other moving related expenses Personal property only

27. 27 Ineligible Expenses (1) Cost to move real property Loan interest... Loss of goodwill Loss of profits Loss of trained employees Additional operating expenses

28. 28 Ineligible Expenses (2) Personal injury Legal fees... Physical changes... Storage costs... Refundable security and utility deposits

29. 29 Related Nonresidential Eligible Expenses Connection to utilities… Professional Services… Impact Fees

30. 30 Day One Recap Specifically, we started to... Discuss the concepts and terminology associated with nonresidential displacements Apply the Uniform Act regulations to nonresidential displacement examples Recognize the limitations and flexibility of federal regulations.

31. 31 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?

32. 32 Pop Quiz No. 1 (2) 4. Can the agency replace items that are not at the project location? 5. Other comments?

33. 33 Day Two Specifically, we will continue to... Discuss the concepts and terminology associated with nonresidential displacements Apply the Uniform Act regulations to nonresidential displacement examples Recognize the limitations and flexibility of federal regulations.

34. 34 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

35. 35 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

36. 36 Substitute Personal Property The payment is the lesser of the: Cost of the substitute item less the proceeds from sale of old item or Estimated cost of moving, reinstalling and making item code compliant

37. 37 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

38. 38 Exercise No. 3 (1) 1. Move estimate: $25,000 2. FMV in place as is: $52,000 3. Sales proceeds: $20,000 4. Value not recovered from the sale: $32,000 5. Payment is lesser of 1. or 4.: $25,000 6. Cost to conduct sale: $ 0

39. 39 Exercise No. 3 (2) 1. Move estimate: $40,000 2. Cost of substitute item (including installation): $33,500 3. Proceeds from trade in or sale: $ 500 4. Net cost of substitution item: $33,000 5. Payment is lesser of 1. or 4.: $33,000 6. Cost to conduct sale: $ 0

40. 40 Exercise No. 3 (3) 1. Move estimate: $ 300 2. FMV in place, as is: $ 260 3. Sales proceeds: $ 100 4. Value not recovered from the sale: $ 160 5. Payment is lesser of 1. or 4.: $ 160 6. Cost to conduct sale: $ 50

41. 41 Low Value/High Bulk Applies when, in the agency’s judgment, the cost to move the personal property is disproportionate to its value.

42. 42 Calculation 1. Move estimate:$1,500 2. Amount it would sell for at the site:$300 3. Comparable amount delivered to replacement site: $200

43. 43 Exercise No. 4 1. Move estimate:$50,000 2. Amount it would sell for at the site:$25,000 3. Comparable amount delivered to replacement site: $24,000

44. 44 Move Specifications General specifications Other provisions Special needs

45. 45 Obtaining Bids Select the bidders Provide Move Specs and inventory Walk through Get cost estimates/bids Review the estimates/bids Approve the successful bidder

46. 46 Criteria for Reestablishment Payment Small business (not more than 500 people on site) Up to $25,000 In addition to actual moving cost

47. 47 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?

48. 48 Eligible Expenses Repairs or improvements required by code Modifications to replacement site Exterior signage Redecoration or replacement Advertisement Increased operation costs during first 2 years… Other

49. 49 Ineligible Expenses Purchase of capital assets Purchase of materials, supplies, inventory Interest on borrowed money... Payment to in home business that does not...

50. 50 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?

51. 51 Fixed Payment “in lieu of” Minimum: $1,000 Maximum: $40,000 Based on the last two years taxable income In lieu of payment means in lieu of ALL other payments

52. 52 Calculation (1) TotalYear 1Year 2 Net income or loss:$20,000$40,000 Compensation paid to owner’s family:N/AN/A Net earnings:$20,000$40,000 The total net earnings for both years is divided by two to obtain the average ( _______ ) Amount of payment:$______

53. 53 Calculation (2) TotalYear 1Year 2 Net income or loss:$ - 5,000$40,000 Compensation paid to owner’s family:N/AN/A Net earnings:$ - 5,000$40,000 The total net earnings for both years is divided by two to obtain the average (______) Amount of payment: $______

54. 54 Calculation (3) TotalYear 1Year 2 Net income or loss:$10,000$20,000 Compensation paid to owner’s family:$40,000$50,000 Net earnings:$50,000$70,000 The total net earnings for both years is divided by two to obtain the average (______) Amount of payment:$______

55. 55 Calculation (4) TotalYear 1Year 2 Net income or loss:$ 1,000$ 0 Compensation paid to owner’s family:$ 0$ 0 Net earnings:$______$ 0 (The total net earnings for both years is divided by two to obtain the average (______) Amount of payment:$______

56. 56 Determining Number of Businesses Different legal entities Shared premises/equipment Substantially identical/ interrelated operations Held out to the public as “one” Same person manages or controls

57. 57 Nonprofit Organizations An organization with an exempt status with the federal and state income tax offices and able to provide proof of its non profit status. A simple claim of non profit status is not sufficient.

58. 58 Farm Operations Eligibility requirements Actual moving expense payments Reestablishment Fixed payments in lieu of actual moving expenses

59. 59

60. 60 Appeals Any aggrieved person may file a written appeal with the agency in any case in which the person believes that the agency has failed to properly consider the person's application for assistance. The assistance may include, but is not limited to, the person's eligibility for, or the amount of, a required payment.

61. 61 Objectives At this point, you are able to...  Discuss the concepts and terminology associated with nonresidential displacements  Apply the Uniform Act regulations to nonresidential displacement examples  Recognize the limitations and flexibility of federal regulations

62. 62 Thank you!