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Wisconsin Department of Transportation Advanced Acquisitions Early Acquisition Hardship Acquisition Protective Purchase Norman Pawelczyk WisDOT – Bureau.

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Presentation on theme: "Wisconsin Department of Transportation Advanced Acquisitions Early Acquisition Hardship Acquisition Protective Purchase Norman Pawelczyk WisDOT – Bureau."— Presentation transcript:

1 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

2  Discuss three advanced acquisition types  Early, Hardship & Protective  Discuss purpose and criteria  Past experiences 2

3  Early Acquisitions  Help start acquisitions early on project  Hardship Acquisitions  Help reduce hardships to owners  Protective Purchases  Help reduce unnecessary costs to State 3

4  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

5 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

6  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 (cont’d.)

7  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 (cont’d.)

8  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

9 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 (cont’d.)

10 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.)

11 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

12 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

13 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

14 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

15  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

16  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

17 Project Map Advanced Acquisition Project ID WIS 29 (CTH J – Taylor) [Project ID Morris Avenue – Memorial Drive] (STH 29/USH 41 Interchange) 17

18 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

19 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

20 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

21 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

22 Hardship Acquisition ? 22

23 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

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25 Farms – USH 51 Deforest  Dairy Operations  Acquired houses and other agricultural improvements  Owners petitioned WisDOT for hardship acquisition for financial reasons 25

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27  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

28 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

29 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 on STH 23 29

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31 Norman H. Pawelczyk WisDOT - Bureau of Technical Services Dave Selissen Timbers-Selissen Land Specialists, Inc. 31


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