Wisconsin Department of Transportation

Advanced Acquisitions Early Acquisition

Hardship Acquisition Protective Purchase

Norman Pawelczyk

WisDOT – Bureau of Technical Services

Dave Selissen

Timbers – Selissen Land Specialists, Inc.

WisDOT Real Estate Training Conference – May 14, 2013

Overview

Discuss three advanced acquisition types Early, Hardship & Protective

Discuss purpose and criteria

Past experiences

2

Type & Purpose of Advanced Acquisitions

Early Acquisitions Help start acquisitions early on project

Hardship Acquisitions Help reduce hardships to owners

Protective Purchases Help reduce unnecessary costs to State

3

Advanced Acquisitions

Delegated discretion to the regions Central Office oversight required!

Hardship & Protective Purchases Where federal funds are to be used for the real

estate acquisition project Central Office oversight not required

Early Acquisition Recommends that the regions apply and follow the

early “acquisition process,” which does not require CO oversight

4

Criteria:

The early acquisition process allows the acquisition of right of way prior to Design Study Report (DSR) approval or completion of the environmental analysis process provided that all of the following criteria have been met…

5

Early Acquisitions

Advanced acquisition of property(s) did not influence decision relative to need to construct project or selection of alternative

Complies with Title VI of Civil Rights Act of 1964 Complies with Uniform Relocation Assistance and

Real Property Acquisition Policies Act of 1970, as amended

Does not include lands protected by Section 4(f) of DOT Act. Parcels impacted by Section 4(f) cannot be acquired until an environmental document has been approved

6

Early Acquisitions - Criteria

(cont’d.)

Early acquisitions are not being used to circumvent federal laws or regulations

Environmental process has been initiated and is well on its way to completion

Final project meets all requirements for normal federal aid project, such as compliance with NEPA, Historical Preservation Act, Endangered Species Act, Wetlands Executive Order, etc.

7

Early Acquisitions – Criteria (cont’d.)

(cont’d.)

No issues, problems or controversy involved in concept, or alternatives, or parcel

Process follows standard procedures for plats, relocation orders, relocation plans (if required), etc.

Under this process, relocation order can be approved prior to DSR

8

Early Acquisitions – Criteria

Owner must submit an early buyout request via a brief letter

Planning and early buyout team must approve most early request unless acquisition occurs in same project year (fiscal year), then engineering would approve

An Arch Study must be completed for entire parcel; to be coordinated by environmental or the consultant engineering company if consulted out (in-house vs. consultant project)

9

Early Acquisitions - Steps

(cont’d.)

Title work must be ordered through region unless it is a consultant project and they have already ordered title work (project engineer will tell you if it is a consultant project)

Funding must be encumbered and available either through planning (typically the 3r budget) or assigned project. Note: Funding is activated on 25th of each month; so, plan ahead to make sure money is available!

10

(cont’d.)

Early Acquisitions - Steps (cont’d.)

If occupied, a relocation plan must be completed and a relocation benefits package presented at the time offer is made

Hire an appraiser Contact the property management person to

plan for the removal of any improvements

11

Early Acquisitions - Steps

Valid Reasons: Advanced age of property owner(s) Death in family that may affect living arrangements Inability to develop vacant land Loss of employment and/or financial distress involving

personal or business circumstances, medical disability, disease or other factors affecting economic or medical well-being

Owner has written opinion from reputable real estate broker that property will not sell because of pending project

Owner has made reasonable effort to sell property at fair market value with no success

12

Hardship Acquisition

Hardship Acquisitions: For benefit of owners who can show

marketability of their property has been adversely affected

Prolonged delay in acquisition will cause undue economic hardship

Owner must request purchase and show valid need to sell in advance of normal acquisition schedule

13

Hardship Acquisition - Process

Protective Purchases

WisDOT makes protective purchases for benefit of State under certain conditions: Owner/developer advises WisDOT that

proposed development or extensive improvement on parcel is pending

Zoning will allow development or improvement Likelihood of development can be verified WisDOT determines public interest to prevent

development of parcel by making early acquisition

14

Hardship & Protective Purchase

Can be made prior to completion of Environmental Impact Statement and Design Study Report (DSR)

Relocation Order must be approved prior to acquisition

Public must be given notice that public hearing was held or opportunity for hearing was afforded

15

Acquired close to 50% with early buyouts Had challenge of convincing people to sign up Process saved 12 property owners from foreclosure FHWA reviewed because of questions concerning

possible overuse Was considered to be a safe and effective tool, and if

used correctly will save time to clear right of way and allow successful relocations of residential and business relocatees

Final conclusion was that process benefitted owners with more time. FHWA recommended we continue to use it.

16

USH 41 Early Buyouts

Project Map

Advanced Acquisition Project ID 9202-07-01 WIS 29 (CTH J – Taylor)[Project ID 1133-10-02 Morris Avenue – Memorial Drive]

(STH 29/USH 41 Interchange)

17

49 Improved Properties: 26 owner-occupied residences 24 tenant-occupied residences 11 businesses

3 gas stations/convenience stores Window/door manufacturer Trucking company Scuba shop Alternator Repair Shop Auto Dealership Pipe organ repair shop Car wash Construction company Pool supply store

18

USH 41/STH 29 Project

Improved Properties Remaining: 10 improved properties 10 tenant-occupied residences 2 owner-occupied residences 3 business properties Pipe organ shop Car wash Gas station/convenience

USH 41/STH 29 Project

19

USH 41/STH Project - Process

First large scale early acquisition project Solicited for early acquisitions Added to relocation plat

Plans A & B 4 plan revisions

Followed normal process, including condemnation if needed

20

9 Improved Properties 2 owner-occupied residences 7 residential tenants 11 businesses

Montessori School 6 business office complex KFC restaurant Title loan office Motel Prosthetic limb manufacturer

Verona Road - Madison

21

Hardship Acquisition?

22

Other Hardship Acquisitions

STH 15 5 Improved properties

4 owner-occupied residences 3 farm properties

County was to require septic systems upgrades

Motel – Verona Road Closed by City of Madison

23

Motel – Verona Road

24

Other Hardship Acquisitions

Farms – USH 51 Deforest

Dairy Operations

Acquired houses and other agricultural improvements

Owners petitioned WisDOT for hardship acquisition for financial reasons

25

Dairy Farm USH 51 - Deforest

26

Restaurant –– Business 51 ProjectPlover, WI

Supper club with 2.91 acres

Acquisition of 0.14 acres

Remainder was not uneconomic

Needed to purchase entire property in order to give owner’s the opportunity to relocate

27

Benefits

Time! Time! Time!

More time to clear project

More time for occupants to find suitable replacement housing/businesses

More time for market to absorb multiple relocatees

28

Issues

Early acquisition does not mean easy acquisition! Must be willing to go through entire process

including condemnation if needed When do you issue a writ of assistance?

Extended occupancy Don’t expect rental payments

Farm on STH 15 and woodworking shop onSTH 23

29

Should we have used advanced acquisition?

Hardship Acquisition?

30

Questions?

Norman H. Pawelczyk

WisDOT - Bureau of Technical Services

Dave Selissen

Timbers-Selissen Land Specialists, Inc.

31