Welcome to the international right of way association s course 502 business relocation
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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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Welcome to the international right of way association s course 502 business relocation

Welcome to theInternational Right of Way Association’sCourse 502Business Relocation

502-PT – Revision 3 – 11.30.06.USA


Welcome to the international right of way association s course 502 business relocation

Introductions

Who we are…

What we do…

Where we do it…

How long we’ve been doing it…

Our goals for the course...


Objectives at the conclusion of the course you will be able to

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


Housekeeping

Housekeeping


Schedule 1

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 - 11:45Case Study No. 1

12:45 - 1:50Case Study No. 1 (continued)

2:05 - 3:05Advisory Assistance

3:05 - 3:35Inventories and Moving Specifications

3:35 - 4:05Moving Options

4:05 - 4:20Recap Day One


Schedule 2

Schedule (2)

8:00 - 8:15Recap Day One/Introduce Day Two

8:15 - 9:15Payments Related to Personal Property Not Moved

9:15 - 10:00Other Moving and Related Expenses

10:15 - 11:00Reestablishment Payment Eligibility

11:00 - 11:45Fixed Moving Expenses

12:45 - 1:15Non Profit Organizations

1:15 - 1:45Farm Operations

2:00 - 3:15Case Study No. 2

3:15 - 3:30Claim Documentation


Schedule 3

Schedule (3)

3:30 - 3:45Appeal Process

3:45 - 4:00Summary and Review

4:00 - 5:00Exam


Welcome to the international right of way association s course 502 business relocation

Constitution

Statutes

United States Code

Regulations


Objectives

Objectives

• Fair, equitable and consistent treatment

• Will not suffer disproportionate injuries or hardships

• Efficient and cost effective implementation


Who is a displaced person

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 ordemolition of other real property


Who is not a displaced person 1

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


Who is not a displaced person 2

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


Entitlements

Entitlements


Relocation study

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.


Relocation interviews

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


Ascertaining needs

Ascertaining Needs

• Build rapport

• Written format

• Walk the property

• Funnel technique


Definitions 1

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)


Definitions 2

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.


Definitions 3

Definitions (3)

Fixture Tests: Manner affixed

Adaptation

Intent

Trade fixtures are not part of the real estate.


Advisory assistance 1

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


Advisory assistance 2

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


Relocation notices

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


Specifications

Specifications

• General specifications

• Other provisions

• Special needs


Obtaining bids

Obtaining Bids

• Walk through

• Get cost estimates/bids

• Select the bidders

• Review the estimates/bids

• Approve the successful bidder


Moving options

Moving Options

Either or a combination of…

•commercial move

• self move

• documented

• actual cost


Eligible expenses 1

Eligible Expenses (1)

• Transportation

• Packing, crating, unpacking, uncrating

• Disconnecting, dismantling, removing...

• Modifications

• Insurance


Eligible expenses 2

Eligible Expenses (2)

• Replacement...

• Other moving related expenses

• Utility connection

• Professional services

• Impact fees


Ineligible expenses 1

Ineligible Expenses (1)

• Cost to move real property

• Loan interest...

• Loss of goodwill

• Loss of profits

• Loss of trained employees

• Additional operating expenses


Ineligible expenses 2

Ineligible Expenses (2)

• Personal injury

• Legal fees...

• Physical changes...

• Storage costs...

• Refundable security and utility deposits


Day one recap

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.


Day two

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.


Tangible personal property loss

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


Calculation

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


Substitute personal property

Substitute Personal Property

Typically applied to personal property

that is outdated but can be replaced.


Calculation1

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


Low value high bulk

Low Value/High Bulk

Applies when, in the agency’s judgment,

the cost to move the personalproperty

is disproportionate to its value.


Calculation2

Calculation

1. Move estimate:$1,500

2. Amount it would sell for

at the site:$ 300

3. Comparable amount

delivered to replacement

site: $ 200


Exercise no 4 1

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


Exercise no 4 2

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


Other moving and related expenses 1

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


Pop quiz no 1 1

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?


Pop quiz no 1 2

Pop Quiz No. 1 (2)

4. Can the agency replace items that are not at the project location?

5. Other comments?


Other moving and related expenses 2

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


Criteria

Criteria

• Small business (not more than 500 people)

• Up to $10,000

• In addition to actual moving cost


Pop quiz no 2

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?


Eligible expenses

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


Ineligible expenses

Ineligible Expenses

• Purchase of capital assets

• Purchase of materials, supplies, inventory

• Interest on borrowed money...

• Payment to in home business that does not...


Pop quiz no 3

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?


Fixed payment in lieu of

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


Calculation 1

Calculation (1)

TotalYear 1Year 2

Net income or loss:$10,000$20,000

Compensation paid

to owner’s family:N/AN/A

Net earnings:$10,000$20,000

(The total net earnings for both years is divided

by two to obtain the average ( _______ )

Amount of payment:$______


Calculation 2

Calculation (2)

TotalYear 1Year 2

Net income or loss:$ - 5,000$20,000

Compensation paid

to owner’s family:N/AN/A

Net earnings:$ - 5,000$20,000

(The total net earnings for both years is divided

by two to obtain the average (______)

Amount of payment:$______


Calculation 3

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:$______


Calculation 4

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:$______


Determining

Determining...

• Different legal entities

• Number of businesses...

• Shared premises/equipment

• Substantially identical/ interrelated operations

• Held out to the public as “one”

• Same person manages or controls


Non profit organizations

Non Profit 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.


Farm operations

Farm Operations

•Eligibilityrequirements

•Actual movingexpense payments

•Fixed payments in lieu of actual moving expenses


Appeals

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.


Objectives at this point you are able to

ObjectivesAt this point, you are 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


Welcome to the international right of way association s course 502 business relocation

Thank you!

502-PT – Revision 3 – 11.30.06.USA


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