S50_The High Cost of What You Don't Buy the Complexity of Partial Takings_LTC2013

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 THE HIGH COST OF WHAT

 YOU DON’T BUY -

 THE COMPLEXITY OF PARTIAL ACQUISITIONS

BY

DONNA STINSON, ASA, SR/WA, R/W-ACLA. CERTIFIED GENERAL REAL ESTATE APPRAISER

[email protected] 

225-242-4586

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 OBJ ECTIVES 

Better communication/coordination of the various sections within DOTD.

Better design of projects taking allfactors into consideration at the earlystages.

Understand how real estate impacts theproject development process

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“ Eminent Domain” is the power of thegovernment to take private property forpublic purposes with payment of justcompensation.

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ACT N0. 851 TO THE STATECONSTITUTION

In every expropriation or action to take property pursuantto the provisions of this Section, a party has the right totrial by jury to determine whether or not the compensationis just, and the owner shall be compensated to the full

extent of loss. Except as otherwise provided in

this Constitution, the full extent of the owner’s

loss shall include but not be limited to, the

appraised value of the property and all cost of 

relocation, inconvenience and any other damages actually incurred by the owner because

of the expropriation. (Article 1 Section 4)

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Issues and/or Concepts That Impact

 The Acquisition Process

Misperception of a substantial acquisitionversus a small acquisition – typically many

believe that small acquisitions would have noand/or nominal impact.

 The impact of either scenario could besignificant or there could be no impact –dependent on market factors.

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Appraisal Considerations

No two properties are the same.

Highest and best use determinations

impact compensation.

Market reaction to location for any givenproperty type may vary.

 Type of occupancy.

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Examples

1) Large timber tract:Real Estate issues considered:

Zoning

Deed Restrictions

Health Unit - Sewer System

Requirements

Inconvenience

 Access Management/Ingress/Egress

Severance Damages

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Timberland Use

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2) Convenience Store

Real Estate issues considered: Zoning

Green Area/Landscaping Requirements

Parking

Access Management/Ingress/Egress

 Traffic Flow on site before and after

Proximity

Environmental Issues

Inconvenience

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  Convenience Store

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3) Convenience Store

Real Estate issues considered: Zoning

Green Area/Landscaping Requirements

Parking

 Access Management/Ingress/Egress Traffic Flow on site before and after 

Proximity

Environmental Issues

Existing Lease of Convenience Store  Additional Compensation

Inconvenience

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  Convenience Store

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4) Restaurant 

Real Estate issues considered: Zoning

Green Area/Landscaping Requirements

Parking

Access Management/Ingress/Egress

 Traffic Flow on site before and after

Proximity

Environmental Issues Additional Compensation

Inconvenience

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  Restaurant

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5) Retail Sales

Real Estate issues considered: Zoning

Green Area/Landscaping Requirements

Parking

Access Management/Ingress/Egress

 Traffic Flow on site before and after

Proximity

Cost-to-cure Severance Damages

Inconvenience

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Retail Sales

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RETAIL USE

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6) Auto Zone

Real Estate issues considered: Zoning

Green Area/Landscaping Requirements

Parking  Access Management /Ingress/Egress

Traffic Flow on site before and after 

Proximity

Cost-to-cure

Inconvenience

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  Auto Zone

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7) Credit Union

Real Estate issues considered: Zoning

Green Area/Landscaping Requirements

Parking

Access Management /Ingress/Egress

 Traffic Flow on site before and after

Proximity

Cost-to-cure Additional Compensation

Inconvenience

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  Credit Union

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) d

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8) Fast Food Restaurant –Church’s Fried Chicken

Real Estate issues considered:

Zoning

Green Area/Landscaping Requirements

Parking

 Access Management/Ingress/Egress

Traffic Flow on site before and after 

Proximity

Cost-to-cure

 Additional Compensation

Inconvenience

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Church’s Fried Chicken

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9) Fast Food Restaurant –Burger King

Real Estate issues considered:

Zoning

Green Area/Landscaping Requirements Playground

Parking

 Access Management/Ingress/Egress

Traffic Flow on site before and after 

Proximity

Inconvenience

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Burger K ing

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10) Volunteer Fire Station

Real Estate issues considered:  Zoning

Parking

 Access Management/Ingress/Egress Traffic Flow on site before and after 

Improvement impacted by cost-to-cure

Proximity Cost-to-cure

Inconvenience

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   Volunteer Fire Station

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11) Church

Real Estate issue considered: Zoning – None

Parking

 Access Management/Ingress/Egress

Traffic Flow on site before and after 

Proximity

Future Church Expansion(Cemetery)

Inconvenience

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Church

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12) Residential Dwellings

Proximity Damages - No set distancefrom new right of way line toresidence.

Proximity Damages are based on the

market an individual residence issituated in (Location/Market Specific).

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  Residence

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